SHANGHAI MAYOR ADDRESSES TAXI CONCERNS

C O N F I D E N T I A L SHANGHAI 000506


STATE FOR EAP/CM AND DRL
NSC FOR LOI

E.O. 12958: DECL: 11/20/2033
TAGS: PGOV ELAB PHUM SOCI ECON CH
SUBJECT: SHANGHAI MAYOR ADDRESSES TAXI CONCERNS

REF: CPP20081103968217

CLASSIFIED BY: CHRISTOPHER BEEDE, POL/ECON CHIEF, US CONSULATE
SHANGHAI, DEPARTMENT OF STATE.
REASON: 1.4 (b),(d)


Summary
--------------


1. (C) Shanghai Mayor Han Zheng met with taxi drivers and other
public transportation representatives on November 18 to discuss
upcoming reform plans. The mayor's meeting with taxi drivers
comes on the heels of highly publicized work stoppages by taxi
drivers in Chongqing and Hainan, and one contact said local
officials are concerned about the implications of a possible
taxi work stoppage for social stability in Shanghai. Meanwhile,
taxi drivers have been grumbling privately about fuel shortages.
End Summary.


Shanghai Mayor Promoting Sector's Healthy Development
-------------- --------------


2. (U) According to local media reports, Shanghai Mayor Han
Zheng met with local taxi drivers and representatives of public
transport companies on November 18 to discuss a proposed
transportation reform plan for which the Shanghai Municipal
Government will begin soliciting public comments in December.
The representatives of the transportation sector reportedly
highlighted issues pertaining to income, work hours, public
transportation policy, resource allocation, and non-licensed
taxis during the meeting. According to the reports, Han
reassured meeting participants that the municipal government
aims to develop the transportation sector in a "healthy" way
that balances workers' rights and interests with providing more
convenient and satisfactory services to passengers.


Responding to Work Stoppages Elsewhere
--------------


3. (C) The meeting is not surprising given the context of taxi
problems in other parts of the country, contacts said. Han's
meeting with representatives of taxi companies most likely is a
direct response to taxi work stoppages in Chongqing (reftel) and
Hainan. Zhang Renren, a Shanghai-based businessman who is well
connected politically, told Poloffs on November 17 that
Shanghai's taxi drivers still face many problems, particularly
exorbitant licensing fees. The municipal government is
increasingly concerned about a possible taxi work stoppage and
its implications for social stability, Zhang said. (Note: Mayor
Han met with taxi drivers the day after our conversation with
Zhang. End Note.)


Taxi Drivers Fuming
--------------


4. (C) Taxi drivers have been grumbling privately for several
weeks about fuel shortages in the city. One driver told Poloff
in early November that he couldn't find CNG anywhere. (Note: As
in Chongqing (reftel),many Shanghai taxis use CNG. End Note.)
As if to prove his point, the driver's taxi began running low on
fuel during the drive and, stopping with Poloff at two different
gas stations near Hongqiao Airport in western Shanghai, he was
unable to find and buy CNG.


Comment
--------------


5. (C) Han's meeting with public transportation representatives
and the municipal government's transportation reform plan was
reported in the media in the context of improving public
transportation prior to the 2010 World Expo, in particular
expanding the city's subway system. We do not believe it is a
coincidence, however, that Han met with taxi drivers on the
heels of unrest in Chongqing and Hainan. Shanghai's residents
remain heavily dependent on the city's taxis, and government
leaders want to address taxi drivers' concerns to preclude any
chance of a work stoppage here.


CAMP