Friday, November 1 Shanghai

Arts&Culture

Breakfast meeting with Jean-Louis Roux, President, Canadian Council for the Arts.

Meeting with Li Xiang Yang, Executive Director, Shanghai Art Museum, followed by tour.

Lunch with Mme Zheng Guijuan, Chairwoman, Shentong Holdings.

Meeting with Chairman Jia Fuwen, Shandong Airlines.

Meeting with Chairman Zhou Chi, Shanghai Airlines.

Meeting with AVIC 1 and Shanghai Aviation Industry Corporation/SAIC.

Dinner jointly hosted by SAIC and Bombardier.

BT&I

This was also a rail and airplane day as the schedule indicates, and this in support of Bombardier’s significant role and commercial objectives in both rail and aircraft sectors in China. Shentong Holdings, a private company, owned and operated the subway system in Shanghai – the Chinese characters Shendong meaning ‘Shanghai’ and ‘through’. Bombardier at the time was focused on rolling stock for passenger railcars and related transportation systems. (It was with a note of pride to ride the Shanghai subway and see the little tag that the car was built by Bombardier of Canada.) In the Chinese airline business, by the time I left China in 2005, Bombardier was No. 1 supplier for regional aircraft, with 36 planes flown by 7 airlines. 

  • exchange of letters with the President of Liaoning Radio and TV University, congratulating him and his institution for the successful launch of an education program with Mohawk College of Canada, based in Hamilton, ON.

Saturday, November 2

Meeting with the Shanghai Mayor and Party Secretary Chen Lianyu.

Signing Ceremony for MOU between Shanghai Aviation Industry Corporation and Bombardier for CRJ (regional jets) cooperation project.

BT&I

My remarks at the signing ceremony focused on Bombardier Aerospace and the fact that the company had become the world’s largest manufacturer of civil aircraft, following Boeing and Airbus, and thus largest manufacturer of regional and business aircraft in the world. The MOU focused on the assembly by SAIC of CRJ-700s and -900s.

Sunday, November 3

Return to Beijing during the morning.

Attended Beijing Opera in the afternoon.

Arts&Culture

Beijing kaoya (Peking duck) dinner that evening with Peking Opera star Ghaffar Poujade, and Canadian artist Charles Pachter, well-known for many works of art, including his prints of Queen Elizabeth II riding a moose among many other ‘innovative’ artistic creations. Pachter, btw, could have become a successful career as a comedian, as he regaled us with story after story about his life, interspersed with jokes straight out of 1920s vaudeville…or at least how I imagined vaudeville comedy was like. I will never forget that evening…

Monday, November 4

MAM

Meeting with CIDA VP Josée Touchette and CIDA Program Director Jeff Nankivell re China Program Review consultations and EDC concessional financing issues.

CIDA

On the issue of concessional financing, including for commercial purposes in a CIDA package, was controversial from the start of the China program, as development assistance officials did not believe that promoting trade mixed well with ODA. EDC became the vehicle for the mix of commercial/concessional financing, with the CIDA budget playing a role years later. Interestingly, the issue at hand was that of the $70mm committed by CIDA in the previous ‘facility’ with $16mm still unspent. In addition, some of the concessional loans that were expended did not perform well, meeting neither trade nor aid objectives.

Meeting and luncheon with Alberta Economic Development Minister Mark Norris.

Media

CCTV-9 interview on nuclear energy questions and the Qinshan CANDU project, followed by China Nuclear Magazine interview.  

Courtesy call by Dalian Mayor Li Yongjin.

Mayor Li did not go very far: by the end of the decade, he was relegated to the post of head of the Dalian People Foreign Friendly Association

Tuesday, November 5

Afternoon flight to Zhuhai; met by Consul General Jim Feir and Commercial Officer Cathy Yao.

Comments at reception co-hosted by CAE/Canadian Aviation Electronics and China Southern Airlines (China’s largest air carrier).

BT&I  

I focused my remarks on introducing CAE to the audience, who would generally not be aware of the fact that this Canadian firm was already a world leader in the design and production of flight simulation systems, civilian and military. The company had more than a decade of engagement with China Southern, as supplier of simulation systems and technical support. The two companies were working together as well to provide pilot training and other services to carriers operating Boeing and Airbus aircraft.

By the turn of the century, China had joined other countries with the fastest growing aviation sectors. This significance had already been flagged by PM Chrétien who had met with both CAE and China Southern during the 2001 Team Canada visit.

The event was well attended by other Canadian firms involved in the aviation sector in China, including Pratt&Whitney Canada, Bombardier Aerospace, Air Canada, Vancouver Island Helicopters, and British Columbia’s Investment Advisor from the Ministry of Competition, Science and Enterprise.

Wednesday, November 6

Courtesy call on Zhuhai Mayor Wang Shunsheng.

Tour of Zhongshan/Sun Yat-sen University campus

Visit the Zhuhai International Airshow.

Return to Beijing.

  • letter to Gilbert Parent, Ambassador for the Environment, DFAIT, following up discussions during the Global Environmental Facility and the announcement by Toyota of its plans to have 10 hybrid models on the market by 2006.

Thursday, November 7

Meetings with Commercial and Investment Promotion Section staff members.

BT&I  CIDA Education

One interesting dimension of Canadian commercial engagement in China involved both trade and development assistance in the education sector. Nortel, already boasting a long history in China, had promoted information and communications technology (ICT) in schools and universities, and that from the early days of the internet in China. Its history in the sector involved, among other institutions, Tsinghua, Beijing and Zhongshan universities. Nortel believed that China was so determined to improve and modernize public education that they welcomed foreign firms in the competition for ICT contracts. CIDA, for its part, in collaboration with Nortel, provided C$8mm in funding for teacher training in Chongqing, part of the Western Education Expert Work Group.     

Media

Luncheon with Martin Regg Cohn, Toronto Star Asia Bureau.

Meeting with Vice Minister of Education Zhao Xinping.

ARTS&Culture

Exchange with Bill Crook, General Manager, Manitoba Theater for Young People.

The MTYP was in collaboration with the HK Department of Leisure and Cultural Services for performances in the Territory. The troupe was also able to perform in Cantonese so arrangements were being explored with our Guangzhou Consulate for performances in that province as well.

CdaFP

  • letter to Professor Yang Chengsu, Chairman, China National Committee for Pacific Cooperation, providing him with a copy of the UN Commission Report on humanitarian intervention and state sovereignty. He and I had discussed this issue earlier. China was and is, of course, formally and constitutionally committed to its Five Principles of Peaceful Coexistence, two of which – territorial integrity and sovereignty, and non-interference – put a break on R2P. Still, humanitarian intervention was and remains a constituent of Canadian foreign policy thinking, in principle and in practice…when practicable.
  • similar letters to Professor Liu Xuecheng, Director, American Studies, China Institute of International Studies, as well as Ambassador Chen Ruisheng, Senior Advisor, also of the China Institute of International Studies.

Friday, November 8

Breakfast meeting with Senior Managers Scown, Gauthier, Nankivell, Burke.

Record of Decisions of the Mission Housing Committee

Arts

Saturday, November 9

Chinese Culture Club tour of Imperial tombs in Western hills of Beijing.

Sunday, November 10

Hosted dinner for Partners of Davies Ward Phillips and Vineberg, LLP, with Staff.

Monday, November 11 Memorial Day

Meeting with Ontario MP Bob Speller and delegation of tobacco producers

Dinner with David Wang, involved in China/Canada education cooperation.

CdaFP PMJC

Letter to Ambassador Cheng Ruishen, Senior Advisor, China Institute of International Studies, including a copy of the Report of the International Commission on Intervention and State Sovereignty.

As noted earlier, Canada was a very active, indeed seminal, proponent of the concept of ‘Humanitarian Intervention’ and the ‘Responsibility to Protect’, especially following the catastrophes of the Kosovo War and the Rwandan genocide, as well as other massive violations of human rights and humanitarian law. Given the political commitment of PM Chrétien’s government as well as the activism of former Foreign Affairs Minister Lloyd Axworthy, and the promotion of the concept by UN Secretary General Kofi Annan, Canada took the lead in funding what became The International Commission on Intervention and State Sovereignty, which included two prominent Canadians – Michael Ignatieff and Gisèle Côté Harper. It explored the concepts of HI and RtoP, with their practical and legal implications, and issued a fulsome report of their conclusions. The immense complexity of defining the terms and conditions for intervention and the applicability of the principle of state sovereignty as well as other complexities have kept the issues and challenges somewhat alive but without agreement on how to resolve them.

My letter emphasized the idea that – quoting from the Report – ‘sovereign states have a responsibility to protect their own citizens from avoidable catastrophe…but that when they are unwilling or unable to do so, that responsibility must be borne by the broader community of states’.

Tuesday, November 12

Meeting with Jim Abbott and delegation, Christian Embassy, Ottawa

First of two days of intense Chinese language training.

Hope against hope…

Wednesday, November 13

Education

  • letter to President Li Jun, Tianjin University of Technology, congratulating him and his institution for establishing a Master of Project Management program with l’Université du Québec.

ChinaMinCor

  • letter to Zhang Chunxian, recently promoted to the role of Minister of Transportation, congratulating him on his appointment. Flagged the potential contribution of Canadian companies in China’s national effort further to develop its transportation infrastructure.

BT&I

  • exchange with Chairman David Stowe, Vancouver Port Authority. Update on the VPA’s part of the Pacific Gateway Strategy.

Education

  • exchange with Dr. David Barnard, President, University of Regina, following up UofR’s recent mission to China.

Thursday, November 14

Mongolia

Meeting with Minister of Foreign Affairs of Mongolia, H.E. Luvsan Erdenechuluun at the Embassy of Mongolia.

I recall this to be a highly engaging conversation with an interlocutor who had thought a great deal about Mongolia’s place in the world, the geopolitics of being a small country between two giants. To my frustration and that of any interested Reader, the report of our discussion will be found – some day – in the DFAIT archives. I, of course, could not be the note-taker…

Meeting and dinner with Abbotsford MPP and BC Forest Minister Michael de Jong, accompanied by BC forest industry representatives.

BT&I

Memo covering the list of 59 Chinese Government officials invited to the banquet being held in tandem with the Canada-China Business Council’s Annual General Meeting. Listed are not only the names and affiliations of the guests, but their roles in advancing Canadian trade interests in China.

Friday, November 15

Rencontre avec l’Agent du Québec en Chine, Jean Marchand, en préparation pour la visite de la Ministre de l’Industrie et du Commerce du Québec, Lucie Papineau.

Attended Canadian Food Promotion event at the Swisshotel.

Saturday, November 16

ChinaDom CdaGov

Letter to Industry Minister Allan Rock regarding political changes emerging from the Party Congress, of interest to the Minister prior to his visit to China the following week.

I inform him of the new Politbureau Standing Committee and the potential elevation of Hu Jintao, from VP to President, in Spring, 2003. Of note is that of the 9 members of the Politburo’s Standing Committee, all but one are engineers. They all emerged from East Coast Provincial Party positions and are known to be managers of the economic reform process, favoring step-by-step policy shifts. ‘Uninterrupted economic growth remains the undisputed national policy objective. Everything else is subordinate’ according to one of the meeting statements. In my letter, I added the following: ‘Further market opening and liberalization is good news for Canada and for our interest in the commercial sectors’.

An Industry Canada team recently visiting China had been impressed by the market opportunities, but also by the challenges of transforming the regulatory and general business environment.

In other words, the potential was there, but so were the challenges.   

Sunday, November 17

Hosted dinner for Vice Minister Zhao Yongji, Ministry of Public Security on the occasion of the China/Canada Working Group Conference, dealing with immigration control and enforcement between Canada and China. D

CdaIm&Vi  HRRoL

The Working Group Conference was chaired by VM Zhao and on the Chinese side included officials responsible for Exit and Entry Administration, Economic Criminal Investigation, Border Control, Consular Affairs and various liaison divisions. The Canadian delegation was headed by Marilyn Viger, DG of BC&Yukon Region of Customs and Immigration Canada. Included were officials for the RCMP’s Immigration and Passport Branch, CIC’s Enforcement and Removals, and CIC Vancouver enforcement. Also participating were Dennis Scown and Rick Shakespeare from the Embassy’s Immigration Section.

The Guest list reflects the issues formally and informally on the agenda and the minds of participants: obtaining a better understanding of each other’s immigration control systems, the structure of the ministries and offices responsible, dealing with issues such as repatriation, bureaucratic priorities and so forth. Among the important messages from Canada was and remains the fundamental principle of the Rule of Law. With Lai Changxing still in Canada – a reminder to Readers that he wouldn’t be returned to China until 2011 – the message was fundamental, whether the Chinese officials believed it or not.

Monday, November 18

MAM

More Ministerial visits on the horizon: Speaker Peter Miliken and Ontario MPP Jim Flaherty, along with Québec Minister Papineau.

CdaPs&Ms

MAM was immediately followed by a meeting with ADM, Food Industry Division, Ontario Ministry of Agriculture, Bonnie Winchester re the Flaherty visit. Ontario is considering a further expansion of its representation abroad, including its offices in Shanghai, Tokyo, London etc. Ontario/Jiangxu collaboration will focus increasingly on S&T, its staff playing Trade Commissioner type roles. Other promotional sectors include construction, transportation and building materials.

Meeting with Jeff Nankivell.

CIDA

A heads’ up from Jeff that the Ministry of Foreign Trade and Economic Cooperation was seeking to expand its involvement in the non-economic activities of CIDA, such as the Civil Society Program, into MoFTEC’s China International Centre for Technical Exchanges, which includes UN programs. This is the kind of bureaucratic gamesmanship that can reflect inter-departmental power battles, but perhaps also indicate internal, and much more consequential, CCP maneuvers. The results are unpredictable, given the closely held nature of these battles, and are always disruptive to the operational plans of foreign ‘partner’ institutions such as CIDA.

Meeting on China/HK Commercial Program staffing issues with Rob MacKenzie.

Hosted dinner for the China Working Group, reciprocating Ministry of Public Security hosted dinner at the outset of the Group’s meeting.

Tuesday, November 19

Luncheon with Pa Wong, Senior Adviser, and General Manager, Husky Energy China.

BT&I

Husky was the offshoot of an American energy company that expanded into Canada in 1946, basing itself, not surprisingly, in Alberta. As a Canadian firm, it operated in a number of industry sectors in Western and Atlantic Canada. It was acquired by Li Kashing, one of Hong Kong’s most storied entrepreneurs and philanthropists, in 1986. Husky was sold to Cenovus Energy of Calgary in 2020. Among the many, many beneficiaries of Li’s philanthropic activities around the world, Canadian beneficiaries have included St. Michael’s Hospital in Toronto, and the Universities of Alberta and Ottawa. Husky’s then CEO, John Lau, an important contact on Canada-China commercial relations, exemplified the LKS spirit: he was awarded the Alberta and Saskatchewan Centennial Awards, as well as the Distinguished Service Award, also from the Province of Saskatchewan.

Senior Adviser Wong briefed me on Husky’s relationship with the China National Oil Company. Husky had invested $150mm in collaboration with CNOC, one purpose of which was to familiarize their Chinese partner on the ways of doing business with foreign energy companies, including the business practices of equipment and service providers. An example of the upward learning curve of Chinese companies seeking greater internationalization. 

Meeting with the Port Authority of Vancouver delegation.

Hosted reception in the Alvin Hamilton room for donors and partner organizations for the Terry Fox Run.

A thank you for the contributors: 86 in attendance.

Attended dinner with Adam Williams, Group Chief Representative, Jardine Matheson China.

Wednesday, November 20

Briefing on Post Index Survey

Admin

Ahh, the all important Post Index Survey. What was the cost of living for expat Canadians and their families at the Embassy and Consulates, compared to previous surveys, and how would this increase the Index so that our Foreign Service Allowances would rise? Rather important exercise.

Briefing session for diplomats on the 16th CCP Congress, by Vice Minister Wang Jiarui of the International Department, Central Committee. (He would eventually rise to the level of Minister.)

CCP  ChinaDom

VM Wang identified the principal tasks of the Congress as updating the theoretical framework of the Party, appointing the leadership of the most important Party positions, and amending the PRC’s Constitution. To prepare for the Congress, the CCP worked on drafting elements such as President Jiang Zemin’s Report to the Congress, in which the International Department also had a role, particularly with regard to international issues. 3,000 Party Members were consulted to prepare JZM’s Report.

There were 600 revisions to the text, demonstrating the ‘democratic process’ in its drafting…(I am, of course, quoting VM Wang). Thus, the Report is an accurate reflection of the CCP’s view of current conditions in China. It describes advances in the Chinese people’s ‘spirits’ as well as material improvements, their rising incomes and greater equality. He emphasized the strength of the Party building process, and its improved governance.

There were 30,200 potential candidates for the 2,100+ Party members who attended the Congress.

With regard to Party ‘theory’, Wang emphasized the importance of President Jiang Zemin’s ‘The Three Represents’ and projected the anticipated ‘long-term influence’ of this principle.

With regard to governance within the CCP, he emphasized ‘improving the art of leadership’ (without elaborating), the authority of the Central leadership, the improvement of the performance of Party officials, the need to deal with corruption within the Party. He spoke of a ‘new political civilization’, without elaborating this either. He dismissed foreign media attention to the question of a greater role of the business community in the Party.

The role of the International Department will be broadened, Wang said, giving greater attention to economic and cultural issues.

According to my notes following the Congress, it has to be said that Vice-Minister Wang’s report was rather skimpy. With the advantage of hindsight, the appointment of Hu Jintao to the Politburo Standing Committee – to be endorsed by the NPC the following year – would prove to be more significant than might have been anticipated. My notes at the time also flag how the nine members of the PBSC were alike, and what it said about them : without exception, all were engineers; all from China’s comparatively rich East Coast; all joined the Party in their early 20s; all worked in engineering departments and ministries until the early ‘80s, when they were plucked by senior Party leaders to assume political responsibilities at provincial and national levels;  seven had been provincial level Party Secretaries and/or governors; only three had held senior government positions in Beijing; a few had successfully escaped from being tarred by corruption scandals. Given the pre-eminence to China of its economic growth objectives, the Politburo could be considered as a collective CEO and COO structure, with very significant power to set and monitor national policies. Thus, Mr. Hu, destined to become the President of the PRC the following March, would be ‘primus’ but very much ‘inter pares’.

I projected that the new line-up would continue to pursue aggressive marketization of the economy, not through systemic or grand policy shifts, but rather through a multitude of small steps, some of which were flagged during the previous week’s meetings: improving the allocation of capital by, in time, allowing banks to do their own risk assessments and fix the interest rates of loans that they would extend; farmers would be given greater freedom to sell, acquire and develop land holdings and decide what to grow; the scope of privatization of the public sector would be expanded; foreign firms would become eligible to purchase the shares of domestic companies in Chinese and foreign markets; increased effort would be made to establish a national social security system. Underlying all of this was the message that economic growth would remain the undisputed national policy priority.

It should be added that the Congress did also address the importance of ‘governance reform’, including the promoting the ‘rule of law’ in China. This comes from the recognition that China’s economic goals cannot be met without a modern legal and governance framework. That, of course, does not signify that the Party and its leaders are subject to any notion that the ‘rule of law’ applies to the Party itself, let alone 1.28 billion Chinese citizens: political considerations will always prevail.

Accordingly, any hopes among foreign observers (including diplomats) that China could possibly move in the direction of greater social and political freedoms, as part of ‘rule of law’, would certainly not be based on anything that was said, let alone implemented, during the Congress. A few examples of village level elections to Party posts or the emergence of small NGOs focused on issues such as the environment, did not herald any diminution in basic Party authority. There was a slight expansion of eligibility to join the CCP, notably for members of the business community – Jiang Zemin’s Three Represents, which called for the participation of ‘new social strata’, aka capitalists – as recognized contributors to the development of the nation, and thus not to be excluded. This hardly augured the emergence of ‘liberal’ forces within the CCP.

Over the following days, I sent letters to individual Canadian Cabinet Ministers, providing the gist of the CCP’s meeting results, as per the above, and the implication for the Canada-China relationship, with comments specific to their departments. Since the subject matter of my letters was in the public domain and the letters were not classified, I provide below the letter addressed to DFAIT Minister Bill Graham.

Letters-to-Canadian-Cabinet-Ministers-Nov-20-2002

  • To Natural Resources Minister Herb Dhaliwal, with comments of relevance to his ministry:

Pointing out the obvious – that a rising economy requires energy and resources like wood and minerals – I updated the Minister on Canadian interests:

  • AECL had just reported that on November 18th, the first CANDU electricity generated in China was synchronized to the Chinese grid, and that in this coming January, Qingshan No. 1 would achieve full power. I encouraged the Minister to visit China in 2003, to help highlight this important Canadian achievement.
  • The Canada-China Wood Products Initiative, which the Minister had earlier announced, had generated attention of many Canadian forest product companies who were yet to be engaged in the Chinese market;
  • The visit of an EM&R mission headed by his Deputy Minister, served to highlight the market potential for selling services in the energy and resource sector in China, but also helped raise awareness of the complexity of the Chinese regulations in these broad sectors, and the challenges of doing business in China.
  • I flagged that Canadian mining companies, notably Inco, Noranda, Falconbridge, Alcan and Teck-Cominco were actively exploring market opportunities.

I informed Minister of Agriculture and Agri-Food Canada Lyle Vanclief that the market potential for imported food products was rising rapidly.

  • 2001 exports to China from the ag-food sector were expected to reach $900mm this year, and projected to reach $3B by 2007. That said, meeting Chinese food and quarantine regulations could be a challenge.
  • But not an insurmountable one. Canada had recently signed an agreement with the Chinese Quarantine and Inspection Agency which approved imports from 18 Canadian meat plants, 3 animal health protocols, the lifting of suspensions on two pork and seafood plants as well as the ‘seafood hazard warning’ that affected their market potential.
  • These agreements, happily, cleared all of Canada’s existing regulatory barriers to our market access. To keep up the momentum, the Embassy had added an additional Locally-Engaged Staff member to the ag-team, with another staffer to be hired the following summer, both paid for by the Ag-Food ministry.

Au Ministre de Citoyenneté et Immigration Denis Coderre, j’ai donné suite à une lettre qu’il m’avait adressée m’informant qu’il avait demandé à ces fonctionnaires de remettre à jour la stratégie à l’égard des relations avec la Chine. Espérant que le Canada obtiendra, à la suite d’une visite anticipée du Ministre de l’Industrie Alan Rock, le Statuts de destinations approuvées, que les ressources du Ministère suffisent au Canada et en Chine pour obtenir le maximum des avantages pour l’industrie de tourisme canadien. Cette expansion des ressources pourrait faciliter l’ouverture d’un bureau des visas à Guangzhou.

My letter to Minister of National Defence John McCallum provided a few brief comments on the Party Congress in general, but focused primarily on the Chinese national security dimensions as there were significant changes in the Central Military Commission. There too, engineering backgrounds prevailed, a change from the more heavily ‘political’ backgrounds of their predecessors, not that there was any indication that this would lead to dramatic policy shifts. What the new crowd was also bringing to the CMC was termed by some as a ‘generational change’, viz Jiang Zemin (b.1926) remained Chairman and with ‘youth’ represented perhaps by the new Vice-Chairman Hu Jintao (b.1942). Changes in the make-up of the Ministry of National Defence would be announced later, but Minister, General Chi Haotian, would likely be replaced later in the year, with rumors swirling about his successor.

CdaGov

I would send similar letters, with commentary suitable to their portfolios, to Deputy PM and Finance Minister John Manley, Solicitor General Wayne Easter (flagging in particular the human and prisoner rights dialogue, and the work of the RCMP liaison office in Beijing, and their work with Chinese authorities to address the challenges of people smuggling, drug trafficking and money laundering); House Speaker Peter Milliken, Minister of Canadian Heritage Sheila Copps (adding that the growth of arts and cultural industries in China created demand for cultural products and services, with Beijing and Shanghai becoming international cultural centers), le Ministre de la Justice et Procureur Général du Canada, Martin Cauchon, Pierre Pettigrew, Ministre du Commerce, ainsi que David Anderson/Environment, Allan Rock/Industrie, et Susan Whelan/ACDI.  

These – all unclassified – are in the files.

Tuesday, November 19

Meeting with Jeff Nankivell.

CIDA

We discussed a number of issues on the CIDA agenda: relations with MoFTEC, which is interested in further assistance with ‘policy training’ for its cadres. There was already some experience with the National School of Administration for this type of education, so training was possible. Canada was already offering training on WTO rules re agriculture (AQSIQ involved). Non agriculture WTO related projects involved the Legislative Affairs Office and the Ministry of Labour and Social Security. Ongoing were Climate Change Development Fund related projects.

BT&I

Letter to Party Secretary Liu Qi, People’s Government of Beijing Municipality.

The letter addressed Beijing’s development of MRT’s north/south Line 5, and an ongoing effort to support SNC Lavalin’s negotiations with the Beijing Mass Transit Railway Group in the realization of the project. The end-of-the-month meeting in Beijing of the Canada China Business Council, to be attended by Industry Minister Allan Rock, would provide an opportunity to move the proposal for SNC/BMTRG to a final agreement and signature.

Wednesday, November 20

Letter to Speaker of the Senate, Dan Hays, providing him with a summary of the notes re the Party Congress.

I met many, many figures up and down the political ladder during my career. Senator Hays would be among the most impressive Canadians that I had the pleasure to get to know. Senator, Senate Speaker, Chairman of many committees, including Senate Reform, President of the Liberal Party, Queen’s Privy Councillor, Officier de la Légion d’Honneur, Chairman of Macleod Dixon law firm, rancher as successor-owner of his father’s Hays Converter, the first breed of cattle developed in Canada to be recognized under the Canadian Livestock Pedigree Act, and so on and so forth. Senator Hays, as a person, was notable for his remarkable equanimity, wisdom, humanity, and good humour. Partisan in his political leanings, but with insatiable curiosity and an open mind. One of the people with whom I most enjoyed working.   

Email to Feng Cheng of CCTV, who is seeking employment at the Embassy. The message outlines the application process, which is only in response to job openings at the Embassy.

Mon épouse, Kumru, et moi invitons le Personnel Canadien de l’Ambassade à notre Buffet de Noël, offert à chaque année.

Thursday, November 21

DFAIT

Morning telecon with my successor as Assistant Deputy Minister and future Ambassador to the PRC, David Mulroney, as he begins preparations for a December visit to Beijing.

DFAIT

We discussed a number of issues on current and future agendas, as themes for his forthcoming trip:

  • plans for a gathering of Heads of Mission the first week of March 2003; could tie in with a Board meeting of the Asia Pacific Foundation of Canada, the Minister attending. The Cabinet Committee on Foreign Affairs may propose a China session to coincide with these meetings;
  • also re the APFC, enhancing its ‘think tank’ role through increased contact with other similar institutions;
  • discussions with Chinese diplomats on Canadian ideas to further develop civil society;
  • re DPRK: how to ‘connect’ and exercise a positive influence on such a ___regime:(I leave it to readers to fill in the blank). David says that basic humanitarian assistance is all that we are contemplating, but beyond foodstuffs via the WFP, ‘we have a lot fewer carrots’, quoting UBC’s Professor Paul Evans. David agrees that we should continue our visits to promote dialogue, but he is wary of raising expectations in the media, or encouraging media visits. 
  • important to include International Business Development in the program; Mulroney is preparing for his visit by discussing issues with his IBD counterparts in Ottawa.
  • phone call meeting with John Cheh, CEO of Bombardier China, regarding issues with the State Development and Planning Commission.

CdaPs&Ms

  • Séance d’information pour la Ministre Lucie Papineau, Ministre d’Industrie et Commerce, Gouvernement du Québec et son Sous-ministre.

Ayant souhaité la bienvenue à la Ministre et son personnel, je lui ai offerts quelques données sur l’état de la Chine en chiffre du jour, soit des côtés sociaux (revenu per capita US$1,500) et économiques (PNB $1.5milliard et taux d’accroissement de 9.5%), et surtout comme pays modernisant et d’accroissement technologique (déjà 40mm ont accès au 300,000 sites du WWW, 36mm de cellulaires), plus de 12mm de touristes chinois à l’étranger en 2001.

J’ai souligné évidemment l’impact anticipé sur l’économie qui ressortira à la suite de l’accès de la Chine à l’OMC. Le commerce Canada/Chine était en pleine croissance, mais les chiffres favorisaient la Chine : $12.7milliard vers le Canada vs $4.1milliard dans le sens inverse.

Les chiffres macro-économiques sont impressionnants mais j’ai souligné que les exportateurs Canadiens de biens et services ne peuvent rien prendre pour acquis : qu’ils devaient non seulement pensé en fonction de stratégie d’accès au marché chinois, mais aussi préparer une stratégie défensive, car – pas question – les firmes chinoises ne perdront pas de temps à viser le marché canadien.

Le lendemain, j’ai invité la Ministre à un déjeuner d’affaires, y inclus des invités de Tembec (pulpe et papier), P.Q Optical Testing, Conspec Control-Beijing Environmental Systems et SR Telecon.

Letter to President Charlie Chun Huang, Morgen&Kevin Corp regarding his high-tech sector business.

Friday, November 22

Luncheon for Minister Papineau.

Rencontre chez le Ministre Ma, MoFTEC, accompagnant la Ministre.

Dîner avec Ministre Papineau.

Follow-up on First Annual Meeting of China Council for International Cooperation on Environment and Development Phase III. Chairman Premier Wen Jiabao.

Saturday, November 23

Dîner avec Eric Meyer, fort célèbre journaliste, écrivain, citoyen de Pékin depuis 1987, spécialiste extraordinaire de la Chine….mais c’était une soirée sociale donc pas de notes!

Monday, November 25

MAM

Final preparations for the visit of Industry Minister Alan Rock, who has arrived.

Attended lunch with officials from Canada’s Central Mortgage and Housing Corporation.

Letter to Senator Jack Austin welcoming him to Beijing for the next round of CCBC meetings.

CIDA

Letter to CIDA Minister Susan Whelan re the CCP Congress, focusing on issues of interest to her Department, specifically China’s economic agenda as it affects the benefits of economic reform but also the challenges. There was genuine concern in Party circles – because one heard about it with some regularity – about the unequal distribution of the benefits of economic reform and the need to create millions of new jobs each year, especially for the rural population. Per capita GDP was rising steadily, but remained modest, about US$3 per day, with more than 200mm Chinese living on the equivalent of $1: these were Chinese statistics. Also, environmental conditions were worsening, but finally receiving increased public attention. The CCP understood full well that these examples of growing inequality among Chinese and maladministration could have serious social and thus political consequences, as had been amply demonstrated in 1989. If for no other reason than the CCP’s self-preservation, action by government agencies was essential.

The CCP Congress therefore endorsed substantial public investments in poverty reduction and environmentally sustainable development. It also formed the basis of China’s desire to work with international partners including Canada to improve the effectiveness of poverty-reduction programs and environment policies.

I concluded by expressing the hope that the Minister would visit China in the near future to meet with her counterparts and assess CIDA’s development strategy.

Letter to Environment Canada Minister David Anderson.

CdaGov

As with all other recent letters to Ministers, I reported on the broad conclusions of the CCP Congress.

  • Regarding issues of interest to the Minister and his Department, I flagged that China’s rapid economic growth would continue to create both opportunities and challenges for the Chinese environment. Large-scale air and water pollution was acknowledged – hardly could it be denied – but setting the right policies and implementing them were proving to be a challenge. And the impact of rising Chinese pollution was impacting not only domestically, but internationally as well, including Canada. Thus, national self-interest was involved. Environment Canada’s engagement and cooperation with China were thus important: indeed, we can play a larger role. In that context, I looked forward to welcoming the Minister to China, as part of our environmental strategy.

Media

Note to Jasper Becker, until recently of the South China Morning Post, and author of several books including Hungry Ghosts, re the famines prompted by the disastrous Maoist policies of the Great Leap Forward, a misnomer if there ever was one. He and I exchanged books: e.g. William Hinton’s Hundred Day War: The Cultural Revolution at Tshinghua University, another must-reads on Maoist policy disasters.

Tuesday, November 26

ChinaGov  PMJC

Letter to Minister Yang Yuanyuan, General Administration of Civil Aviation/GACA.

The letter flags the recent establishment of a joint-venture between China Southern Airlines and CAE – Canadian Aviation Electronics, to be based in Zhuhai. The JV would provide for simulation-based pilot training and other technical services to Chinese and foreign airlines, primarily based in Asia, and flying Boeing and Airbus aircraft. This JV was endorsed by the GACA, with which the Embassy had close ties. The JV had also been saluted in a letter from PM Chrétien. I thanked the Minister for his strong support of the initiative. I addressed a similar letter to State Development Planning Commission’s Chairman, Zeng Peiyan, who had also supported the CAE/CSA joint venture.

Arts&Culture

Letter to Jerry Snell and Nadine Thouin , Snell Touin Project, Physical Theater, in Montreal.

This company, originally founded in Paris, had established artistic relations with the Beijing Modern Dance Company, and had toured China, making their collaboration the first China-Canada modern dance production in the PRC.

BT&I

Letter of welcome to the members of the Canada China Business Council, attending the CCBC’s Annual General Meeting and Policy Conference. I draw their attention to themes such as China’s WTO adherence and the business opportunities that will arise from preparing and delivering the Beijing Olympics of 2008.

Thursday, November 28 

CdaFP

I address a letter to 12 fellow ambassadors, reminding them that we were approaching the fifth anniversary of the signing by 122 states of the Ottawa Convention banning anti-personnel landmines (APLs), and proposing a joint démarche on the Ministry of Foreign Affairs Vice-Minister Wang Guanya in support to China’s accession to the Ottawa Convention. I pointed out that although China had participated in demining activities, they retained one of the largest stockpiles of APLs. The addressees’ countries were all members of the Human Security Network which worked to ‘universalize’ the convention. I offered to host a meeting at the OR to discuss tactics and the substance of the presentation we would make to the Vice-Minister.  

Arts&Culture

I address a letter to the Directors and Presidents of the Vancouver Art Gallery, Musée des Beaux Arts du Canada, The Canadian Museum of Civilization, Le Conseil des Arts et des Lettres du Québec, The Royal Ontario Museum, The Alberta Foundation of the Arts and the Emily Carr Institute – all of whom I had visited in September in an effort to encourage the promotion of Canada/China cultural partnerships. I informed them that the Embassy was preparing a paper of the changing scene in the arts and cultural industries in China, with the objective of introducing them to some of the key players and suggesting options for Canadian cultural institutions seeking to develop long-term partnerships with counterparts in China. The paper would form the basis of a meeting in Ottawa in the new year, dates and details to be advised in due course.

Friday, November 29

Email to EmbStaff

Admin

“I trust that everyone has settled into the routines of life and work in Beijing. We have certainly had a busy Fall and I know that the new arrivals have had to jump in at the deep end of the pool.

Currently, one of my preoccupations is political change in China. The full import and impact on Canadian interests will only become evident after that National People’s Congress next March. We will all want to ensure that this Mission connects to the new leadership at all levels of government. One of my personal objectives during the next twelve months is to improve my own engagement with the Chinese who matter to us. I look to all of you for support in this endeavor. The policy directions of the newish CCP  team are not yet fully clear, but the early signs, including the Report to the 16th Party Congress, would indicate that economic development and further market opening remain central objectives.

“With regard to immigration visas, the Immigration Section is on its way to meeting the complex challenge of achieving its targets without overshooting. The planning ceiling of 10,000 immigrant visas is well in hand. There will neither be a shortfall nor overproduction. As of 22 November, 9380 had been issued, compared to 8824 in all of last year. Family reunification visas issued will be more than 30% higher than in 2001. On the Non-immigrant side – visitors, students, temporary workers – a number of records will be set. Last year’s record 36,789 visitor visas issued will be surpassed, with over 40,000 this year. Over 70% of business and official delegations issued within 5 working days. For the first time in many years, the Immigration Section will finalize more student visa applications than received, with resulting decreases in processing times in early 2003. Overall, a record 73,000 plus Non-Immigrant visa applications will be finalized in 2003, about 300 per business day!

“Many of you will now be thinking of Christmas and New Year holidays. I believe it is important that we all take the holiday break and maintain the right balance between our professional responsibilities and attention to our personal lives, particularly our families and friends. I know that managers will ensure that the Embassy continues to operate, but it is a holiday period and I encourage you to take full advantage of the opportunity to re-charge your batteries.

“With the continual expansion of Canadian interest in China and program requirements here at the Embassy, we are increasingly facing a squeeze on physical space, here and in our Consulates. I have asked DFAIT to undertake a full review of all of our facilities in Beijing to ensure that we are using the space available as rationally as possible.

“Some of you may be aware that we are studying the possibility of moving to a direct-hire arrangement for our Diplomatic Service Bureau Chinese national staff. Our long-term objective is to ensure that we manage an employer-employee relationship system in accordance with Canadian and Chinese laws and practices, providing us with the flexibility in the hiring of Chinese staff. China is thus gradually moving in the directions of a more open labour system, but we are not there yet.”

Cordially, the Ambassador”

Weekend:  travel to Guanzhou

Arts&Culture

Monday, November 25

Tour of Guangzhou Art Museum and the exhibition of ‘The First Guangzhou Triennial – Reinterpretation Decade of Experimental Art 1990-2000’

Meeting with Guangzhou Vice Mayor Shen Bonian. 

Tuesday, November 26

BT&I

  • Attend Manulife-Sinochem Guangzhou Branch Opening event at China Hotel.

First such opening since arriving in China. Manulife already had its corporate headquarters in Shanghai and of course had a long pre-war history in Hong Kong, but the Guangzhou license opened a lot of gates for future expansion.

Wednesday, November 27

  • return to Beijing from Guangzhou.
  • host luncheon with visiting Senator Jack Austin, in China for a gathering of the Canada-China Legislators Association.
  • greeting Minister of Industry and Infrastructure Alan Rock on airport arrival, followed by briefing session at Hyatt Hotel.
  • attend dinner of the Canada China Business Council. The keynote address is given by Minister Rock.

BT&I CCBC

The most reliable signal that the Chinese Government and CCP can provide to indicate the state of the bilateral relationship is the attendance of the most senior officials at major Canadian events. This evening offers an example. For this Canadian business rather than Government of Canada event, Chinese guests included – and China Hands will recognize the names:

Li Rongrong, Chairman, State Economic and Trade Commission

Wang Fenjing, Vice Minister AQSIQ

Jin Liqun, Vice Minister, Ministry of Finance

Gao Xiqing, Vice Chairman, China Securities Regulatory Commission

Wang Jiming, President, Sinopec.

Thursday, November 28

Attend opening of the Canada China Business Council Annual General Meeting, with welcoming remarks by Minister Rock.

  • accompanied Minister Rock to the Badaling sector of the Great Wall. 
  • accompanied the Minister to his meeting with Minister Zeng Peiyan, State Development Planning Commission

CdaGov CCRels

Minister Rock began the meeting by thanking the Minister for his role in maintaining the high level of contacts (‘engagement’ in the Canadian lexicon) at Ministerial and other senior levels between Canada and China.

Zeng informed the Minister that he had visited the Qingshan nuclear reactor site, to become more familiar with its progress, overall on schedule despite ‘small problems’ that had been identified and were being addressed. Additional testing would be necessary before the reactors can be fully operational.

Minister Rock emphasized the quality and performance records of AECL’s technology, and the commitment to continuous improvement. He also emphasized the importance that the Canadian Government attaches to Canada’s relationship with the PRC, both on a bilateral basis and on global issues. He outlined Canada’s Innovation Strategy as essential to Canada’s economic growth and progress. He spoke of Canadian performance in the aerospace sector, flagging Bombardier’s regional jets and strategy of collaboration with China’s aviation sector, both manufacturing and services, to China’s airlines. Also noted was Canadian engineering firm SNC’s role in subway design (viz. Shanghai’s Line 5), Nortel in communications technologies, CAE’s flight simulators and, stepping beyond technology for a moment, Manulife’s financial services.

The Minister also raised the issue of Approved Destination Status.

Minister Zeng thanked the Minister for his ‘macro-briefing’. He went on to comment on China’s economy, focusing on trade – over $600B in trade and growing FDI. He also mentioned the importance of building links between and among the SMEs. Indeed, he expects that, given China’s open bidding processes for major projects, Canadian firms would increasingly participate. He expressed his view that ‘Canadian firms are world class’, in both the products they offer and the technology that they contain.

Regarding regional jets, China is a growing market and not surprising that both Bombardier and Embraer are competing, not only for sales to Chinese domestic airlines but also in cooperative ventures with domestic aircraft and parts producers. This is essential to keep costs down. Zeng expressed confidence that ADS would be approved soon.

This was as good a meeting as they come. Both in substance and in form, it reflected the positive state of the C/C relationship, as articulated by one of the Chinese Government’s most highly respected and most important figures.

  • Attend the CCBC Gala Banquet, hosted by the Chinese business membership, with Minister Rock.

Friday, November 29

ChinaPs&Ms

  • Attended CCBC breakfast meeting at which I was invited to conduct a Q&A session.
  • accompanying Minister Roch, turn-around trip to Qingdao.
  • toured Bombardier/Power Corporation/China Rail joint venture factory.
  • courtesy call on Qingdao Mayor Du.
  • attended third banquet in as many evenings.

Saturday, November 30 to Tuesday, December 03 – Annual leave