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 14
  November 2001 CONTENTS: Working
  Toward Co-operative Arrangements Annex
  A: Sister Relations in Washington State (USA) Annex
  B: Australian and New Zealand Sister Relations with China Annex
  C: USA Sister Relations with China RELATED
  DOCUMENTS Chamber letter to Sister
  City News Forum on “Making Sister
  City Relations Work for the Economic Benefit of Both Parties” 
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 Cities in China are now taking
  an active role in the Sister City Program, due largely to the expectation of
  China’s formal entry into the World Trade Organisation in December 2001. China’s Sister City Program has
  special characteristics that are relevant to Australia-China relations: ·        
  Their main objective is economic co-operation,
  which, in the Chinese context, implies a commitment to enhance economic and
  commercial interests in the two cities on a mutually beneficial basis.   ·        
  They view the Sister City Program as a centre or
  starting point for a wider network of co-operative arrangements (or memoranda
  of understanding).   Although business practices are
  gradually changing in China, in a way that is bringing them closer to Western
  practices, the tradition of guangxi, or personal networks, remains an
  important element in they way Sister City arrangements are structured. Adjusting to these differences
  has created strain for a number of local councils in Australia, and this is
  exacerbated by the substantial difference in the size of local councils,
  compared to municipal jurisdictions in China. It is the Chamber’s
  view that a convergence in these practices is necessary for successful
  business relations between Australia and China.   We believe, further,
  that the Sister City framework is an important element in this process of
  convergence.  It conveys the
  fundamental reason for the Sister City Program. In the Australian context, this
  will require increased co-operation among the various participants in all
  forms trading and investment activities between Australia and China.   For this purpose, the Chamber is
  proposing that a forum be convened with a view to Making
  Sister City Relations Work for the Economic Benefit of Both Parties. 
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 The Sister City Program is an important
  resource to the negotiations of governments in letting people themselves give
  expression to their common desire for friendship, goodwill and co-operation
  for a better world for all. The initial objectives of the
  program focused on the development of durable networks of communications
  between cities of the world for the principal purpose of reducing the
  likelihood of misunderstandings and conflict among nations.  In this sense, the program could be viewed
  as foreign relations at the local level. The backdrop of circumstances in
  the early 1950s is relevant to this focus. 
  Aid from the US to Western Europe, through the Marshall Plan, ended in
  1952.  While it is often credited with
  a significant contribution of US$13 billion in the post-war recovery of
  Europe, it was nevertheless controversial. 
  The nature of the aid was rejected by the Soviet Union and this
  contributed to “cold war” tensions. More specifically, over US$9
  billion, or about 70 per cent of the funds, was spent on US manufactured
  goods and therefore comprised a form of tied aid.  In addition, the newly formed Organisation for
  European Economic Cooperation (OEEC), which later became the Organisation for
  Economic Co-operation and Development (OECD), was to be the administrator of
  the funds, working with the US Economic Co-operation Administration.  Aid recipients were required to give a
  full accounting of how the funds were used. 
   As a consequence of this arrangement, there
  were suspicions that US industrialists would be major beneficiaries of the
  aid and that political “strings” would be attached to the funding.  The Soviet Union formed a separate plan
  for the economic recovery of Eastern Europe and this was associated with the
  policy of isolation for which Winston Churchill coined the well-known
  expression: “ the iron curtain”. Thus, when Eisenhower became the
  US President in 1953, “trade and aid” was not a popular phrase.  The Sister City Program, which began in
  1956, was not designed as a substitute for the Marshall Plan, but it was
  nevertheless hoped that such a network would recover some of the loss in
  goodwill that was associated with the tied aid. The initial objectives remain as
  the foundation for many, if not most, Sister City agreements today.  These agreements are formalised when two
  communities from different nations join together to develop a “friendly and
  meaningful” relationship.  The central
  element is the exchange of people, ideas, culture, education and technology. In recent years, “trade” has
  become effectively de-linked with “aid”, and most Sister City agreements
  contain explicit provisions for trade and economic co-operation.  For example, the City of Boston (USA) states
  the following as the objectives of its Sister City Program (http://www.ci.boston.ma.us/mayor/spevents/sistercity.asp): 1.      
  Strengthening Boston's
  international relations in the areas of:  ·        
  Friendship  ·        
  Trade  ·        
  Understanding  ·        
  Co-operation  2.      
  Enhancing Boston's
  global reputation.  3.      
  Expanding economic
  interests.  4.      
  Enriching Boston's
  cultural and educational climate. 5.      
  Creating a diplomatic atmosphere. We cannot pinpoint the precise
  time at which trading interests became an explicit, as opposed to implicit,
  part of Sister City agreements.  It is
  nevertheless clear that Japanese cities became an active participant in
  Sister City arrangements in the 1960s and 1970s and with that participation
  trade became a more visible outcome for the arrangements.  While it may be incorrect to say
  that Sister City relations were “orchestrated” by the Japanese Government, it
  is nevertheless clear that government participation existed.  The pattern in the formation of these
  relations by Japanese cities was too coherent to be established through
  independent and random choices. Perhaps more importantly, Sister
  City relations were associated with an increased amount of personnel
  exchanges involving young adults. 
  This was beneficial in giving overseas exposure and training to
  Japan’s soon-to-be corporate managers and administrators.  Part of the cost of these arrangements
  came from the Japanese Government. Japan’s participation in the
  Sister City Program is more clearly seen with the US Pacific Coast
  states.  The State of Washington, for
  example, has 107 sister relations, most of which are Sister City pairings,
  but some county-city and sub-city relations are included.  Among these arrangements, 37 are with
  Japanese cities (shown in blue in Annex A). It is of course not surprising
  the State of Washington has a strong interest in Northeast Asia, but the
  number of sister relations with Japanese cities far exceeds those with Taiwan
  (7 shown in green in Annex A) and those with mainland
  China (4 shown in red in Annex A) and South Korea (2
  shown in brown in Annex A). It is also instructive to note
  that this list of cities was compiled and published by the Washington State
  Office of Trade and Economic Development, reflecting the importance of trade
  in the name of the relevant state government office, but also in the relevance
  of trade in Sister City relations by associating them with the Office of
  Trade and Economic Development. 
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 San Francisco, USA – 1968 While
  this demonstrates a willingness to participate, the number of these
  arrangements is much less than those associated with Seattle, which lists 21
  Sister City arrangements (see Annex A).   The
  overall population is not relevant to the difference since Greater Seattle
  (which includes 4 counties in addition to the City of Seattle) has 3.1
  million people compared to 4.0 million for the metropolitan area of
  Sydney.   The
  substantially larger number of local councils in the Sydney metropolitan area
  undoubtedly has an impact.  The City
  of Seattle has a population of 540,000 compared to 24,907 for the City of
  Sydney, which means that the number of people within the jurisdiction of the
  City of Seattle is nearly 22 times greater. 
  Since it has only 3.5 times more Sister Cities than the City of Sydney,
  the latter compares favourably. Nevertheless,
  the number of independent local-council jurisdictions creates difficulties in
  the lack of co-ordination in Sister City arrangements in Australia and in the
  extent to which these arrangements contribute to mutual benefit arising from
  trade and economic co-operation. We
  have not been able to obtain a complete list of Sister Cities for Australia
  or for individual Australian States. 
  Sister Cities International, which accepts membership only from
  communities in the US, lists on its Internet site (http://www.sister-cities.org/) the partner cities, by country or region,
  of its members.  For Australia, this
  yielded the following:  | 
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 Albury (New South Wales) and Berwick (Victoria) and Blue Mountains (New
  South Wales) and Brisbane (Queensland) and Cairns (Queensland) and Colac (Victoria) and Cooktown (Queensland) and  Cootamundra (New South Wales) and Darwin (Northern Territory) and  Delatite Shire
  (Victoria) and  Gold Coast (Queensland) and Goulburn (New South Wales) and  Greater Bendigo
  (Victoria) and Hawkesbury Shire (New
  South Wales) and Lismore (New South Wales) and Mackay (Queensland) and Melbourne (Victoria) and Mildura (Victoria) and Millicent (South Australia) and Mona Vale (New South Wales) and Newcastle (New South Wales) and Orange (New South Wales) and Perth (Western Australia) and Playford (Northern Territory) and Port Stevens (New South Wales) and Stroud (New South Wales) and Sutherland Shire (New
  South Wales) and Sydney (New South Wales) and  Tamworth (New South Wales) and Wauchope (New South Wales) and  | 
  
   
 Merced
  (California)  Springfield (Ohio)  Flagstaff
  (Arizona)  Brisbane
  (California)  Scottsdale (Arizona)
   Walker (Michigan) Kauai County
  (Hawaii)  Hemet
  (California)  Anchorage
  (Alaska)  Vail
  (Colorado)  Fort Lauderdale
  (Florida)  El Cajon
  (California)  Los Altos
  (California)  Temple City
  (California)  Eau Claire
  (Wisconsin)  Hawaii County
  (Hawaii)  Boston (Massachusetts)
   Upland
  (California)  Seguin (Texas)  Wilmette (Illinois)
   Arcadia
  (California)  Orange (California)
   Houston (Texas)
   Fremont
  (California)  Bellingham
  (Washington)  Stroud (Oklahoma)
   Lakewood
  (Colorado)  San Francisco (California)
   De Kalb
  (Illinois)  Canisteo (New York)  | 
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 The
  connection between most of these city pairs is rather elusive.  For example, Hawksbury Shire Council would
  appear to have little in common with Temple City, California, which is in Los
  Angeles County and not far from Pasadena. 
  Lakewood, in Colorado, is a suburb of Denver, which would not seem to
  have much in common with either Sydney or Sutherland Shire Council. This
  is not meant to imply that the city partnerships that appear to have little
  in common cannot be mutually rewarding. 
  Rather, it is meant to indicate that cities having similar
  expectations and a basis for similar commercial interests are likely to be
  more successful in sustaining the partnership. Assessing
  these similarities is rarely easy, and the typically small size of
  local-council jurisdictions in Australia precludes devoting substantial
  resources to locating a suitable Sister City.  We nevertheless believe that more can be done than has been
  done, especially in the case of China. 
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 It is therefore not surprising that a large portion of
  Sister City arrangements contain Chinese partners from the coastal provinces
  (refer to Annex B and Annex C).  See also Key Cities for the
  Chamber’s description of China’s provinces. The approaching entry into the World Trade Organisation
  widened further the scope of central government approval for municipal
  authorities to enter into contractual arrangements with foreign communities
  and enterprises.  Thus, interest in
  these arrangements has intensified within the past two years.  | 
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 First, the main objective of the
  Sister City arrangement is economic co-operation, which, in the Chinese
  context, implies a commitment to enhance economic and commercial interests in
  the two cities on a mutually beneficial basis.  Exchanging import/export information, as well as information
  about projects for which foreign investors are invited to participate, is a
  major consideration. Second, Sister City arrangements
  are viewed by the Chinese as a centre or starting point for a wider network
  of co-operative arrangements (or memoranda of understanding).  This creates concern since it appears to
  commit mayors in Australia to obligations that are outside their respective
  spheres of influence, but this is not as much of a burden as it might appear. The Chinese view is based
  largely on their ancient practice of guangxi, or network of personal
  relationships.  Although an analogy
  between Sister Cities and matrimonial relations, as used, for example, by
  Sister Cities International has obvious limitations, it may nevertheless help
  to clarify the difference in approach. In giving advice to communities
  searching for a Sister City, the Internet site of SCI http://www.sister-cities.org/ states: We often compare the
  sister city search process to the intricate dance of matrimony, beginning
  with the awkward days of courtship to well beyond a golden anniversary.  With this analogy in mind, it is crucial
  to be sensitive to the needs of your prospective community, and at all times,
  be aware that this relationship is intended to last a lifetime. Guangxi in China often are more durable than marriages since they can be
  passed from one generation to the next. 
  The critical difference is that the loyalties and commitments
  encompassed by guangxi are acquired through personal interactions, not
  by a formal vow that is taken when the partnership is initiated. Thus, local councils in
  Australia are likely to ponder at length on the nature of the agreements they
  sign with the view to avoiding a commitment to something which they may have
  difficulty in fulfilling sometime in the future.  Chinese, on the other hand, are less concerned about the
  wording since future commitments are based upon what they have received (not
  promised) in the past, as well of course, upon what they receive in the
  present.   If nothing has been received,
  then there are no obligations; but if an Australian mayor is the initiating
  factor in an outcome that is of considerable benefit to the Chinese city,
  then the Chinese obligation to that mayor, and to the local council he
  represents, is both considerable and durable. Unlike a marital relationship,
  the Chinese do not expect a partner city to display exclusivity, and do not
  convey a willingness to be exclusive. 
  They generally will, however, give to the partner city the first
  opportunity to respond, or, as is sometimes stated in Western terms, “the
  first right of refusal”.   While they may enter Sister City
  arrangements with the view that it may last a lifetime, they are realistic in
  recognising that most such arrangements do not result in guangxi
  obligations.  The arrangements
  represent formal recognition of opportunities rather than of commitments. This might help to explain the
  tendency for Australians to feel inundated with requests from Chinese, and
  the obligation to respond.  For the
  Chinese, however, there is no obligation attached to the recipient of the
  request.  The obligation occurs only
  if the request results in substantial gain to the one who requested it, and
  the obligation is then incurred by the one who made the request. It also explains the Australian
  frustration in making requests to an MOU partner that are apparently
  ignored.  Generally they are not
  ignored, but are not commented upon or explained if the requests cannot be
  fulfilled.  | 
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 The more traditional view
  nevertheless remains as a framework for the Chinese and this should be
  recognised by all who enter into the agreements with them.  Similarly, the Chinese should recognise
  that the “Australian framework” differs, and with this mutual recognition a
  convergence is possible. Difficulties arising from the
  relatively small size of local councils in Australia can be partly remedied
  by establishing “guangxi with Australian characteristics”.  We of course lack this tradition, and have
  traditions of self-reliance that tend to interfere with guangxi.  Obligations, like “shouts” at the pub, are
  tallied on a contemporaneous basis. 
  This seems to make life easier, and generally also more intoxicating. Greater co-operation among
  Australian participants does not necessarily comprise a threat to
  self-reliance; it involves a willingness to communicate and to share in
  specific activities on a contemporaneous basis.  For example: ·        
  If the mayor of a local council is informed
  indirectly that the city with which he signed a Sister City agreement is
  conducting a trade fair and sends a letter expressing regrets in not being
  able to attend, and sends with it a congratulatory message, then the
  opportunities conveyed by the trade fair are recognised.  The Chamber is more than willing to pass
  along announcements of such activities, but we cannot do so unless we know
  that a Sister City agreement exists. ·        
  Chamber members may visit a city that has a Sister
  City agreement with an Australian local government authority.  If that member presents a letter of
  greeting (not necessarily a letter of introduction) from the mayor, then both
  the visitor and the local council acquire enhanced status.  As before, this cannot be done if we do
  not know about the agreement. ·        
  A request for a joint venture partner by the
  Chinese may involve a type of enterprise that does not exist in the community
  to which the request was sent, but passing it along may result in a
  favourable response for which credit will be apportioned by the Chinese to
  the various part of the “information chain”. 
  This of course requires that such a chain exists. The key element is the need for
  mutual benefit through mutual adjustment within the Sister City Program, as
  well as among similarly situated organisations in both Australia and
  China.  The gains from such
  adjustments are likely to be substantial, though they may not always be
  tangible. 
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 ·        
  Local Government and Shires Associations (http://www.lgsa.org.au) ·        
  Australian Sister Cities Association Incorporated (http://www.asca.asn.au) and ·        
  Austrade (http://www.austrade.gov.au) for the purpose of organising a
  jointly sponsored forum on “Making Sister City Relations Work for the
  Economic Benefit of Both Parties”. Further information is available
  from: Business mentor furthers relations,
  letter from Michael C. H. Jones, President of Australia-China Chamber of
  Commerce and Industry of New South Wales to Sister
  City News, January 2000. Proposal and tentative agenda for
  Sister Cities Forum. Subsequent announcements and
  documents will be available on this Internet site.  | 
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   Sister Relations in Washington State (USA) 
 Source: Washington State Office
  of Trade and Economic Development. http://www.trade.wa.gov/sisters.htm  | 
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   Australian and New Zealand Sister Relations with China 
 Sources:  Compiled by the Chamber from various
  sources, with particularly useful information supplied by Austrade (http://www.austrade.gov.au) and
  Australian Sister Cities Association (http://www.asca.asn.au)  | 
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   USA Sister Relations with China 
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