A striking reminiscence from J. G. Ballard:

Shanghai was one of the largest cities in the world, 90% Chinese and 100% Americanised. Bizarre advertising displays – the honour guard of 50 Chinese hunchbacks outside the premiere of The Hunchback of Notre Dame sticks in my mind – were part of the everyday reality of the city, though I sometimes wonder if everyday reality was the one element missing.

- J. G. Ballard @ Times Online: Link.

Via Boing Boing.

Miracles of Life @ Amazon.

I’m saddened to hear that Ballard is in the late stages of cancer. I read some of his books and short stories over the years, beginning in my teens; never so much as to make me a fan, but enough to give me the sense that I’d met the author and liked him as a person.

“$197m coming Jamaica’s way [from China]”

So much for the Monroe Doctrine:

Caribbean economies are expected to swell from billions in foreign direct investment from China in the next three years, as the world’s fourth largest economy makes good on its commitment to improve economic ties with the region.

… China has also committed itself to improving trade conditions with the region and strengthening its capacity. Two thousand Caribbean government officials and technical professionals will be trained over the three-year period, while scholarships will be made available for Caribbean nationals to study in China. Some 600 persons have already been trained.

… Responding to the Vice Premier’s announcement, Barbados Deputy Prime Minister Mia Motley hailed China for its continued support of the region, noting that its assistance was welcomed as struggling Caribbean states would be forced to open themselves for free trade by 2008.

Jamaica Gleaner News: September 10, 2007

Chinese build a high-tech army within an army

“Gen. Zhu Chenghu … raised the subject of weapons of mass destruction …. Should US forces aid Taiwan in a war, he told bewildered US visitors, ‘Americans will have to be prepared that hundreds … of cities will be destroyed by Chinese’ nuclear weapons.”

In a surprisingly short time, China has accomplished two feats. One, it has focused its energy and wealth on creating an army within an army. It has devoted huge amounts of capital to create a small high-tech army within its old 2.2 million-member rifle and shoe-leather force.

The specialty of this modern force, about 15 percent of the PLA [People’s Liberation Army], is to conduct lightning attacks on smaller foes, using an all-out missile attack designed to paralyze, and a modern sea and air attack coordinated by high-tech communications. In other words, this new modern force is designed to attack Taiwan.

Second, China has taken painful but successful steps to create a “defense industrial base,” or weapons-building capability. The PLA has improved its factory quality control and its ability to adapt foreign technology. It is bringing an indigenous small-wing F-10 fighter off the production line, and it is moving rapidly toward a “blue water” Navy with ships built in China.

… This summer, Gen. Zhu Chenghu, dean of China’s National Defense University, raised the subject of weapons of mass destruction, which China rarely mentions, in connection with Taiwan. Should US forces aid Taiwan in a war, he told bewildered US visitors, “Americans will have to be prepared that hundreds … of cities will be destroyed by Chinese” nuclear weapons.

… A major moment came this July in a Defense Department review on the PLA. While criticized as soft by hawks, the report hit especially hard due to a comment that China’s buildup now appears to go past just an effort to invade Taiwan. Rather, it stated that China was modernizing its forces with the intent of longer range operations and “regional contingencies.”

… The Pentagon is concerned about how much China spends, and what it is buying. China’s exact military spending is shrouded. US experts say it spends $50 to $90 billion annually. Yet Defense Minister Gangchuan insisted to Rumsfeld that the figure is about $27 billion. Days later, the London-based International Institute for Strategic Studies noted that China’s purchase of Russian equipment alone nearly matched the Chinese official estimate; the IISS says China is at $62.5 billion.

[ Robert Marquand: Christian Science Monitor]

A mystery in Beijing: Who runs the military?

“In what is seen by some analysts as an attempt to consolidate his control, [President] Hu has ruled out suggestions from some younger officers that the Chinese military should become a fully professional force that owes its loyalty to the state rather than the ruling party.”

For foreign governments and analysts monitoring the Chinese military, one of the biggest mysteries is who is actually in charge.

Nominally, President Hu Jintao, who is also chairman of the Central Military Commission, the top military command body, is head of the armed forces, but there is considerable doubt among experts about the extent of the authority that he and his fellow civilian leaders exert over the 2.3 million-strong People’s Liberation Army.

“I think Hu Jintao is still facing some challenges from top generals,” said Philip Yang, an expert on the Chinese military and a professor of international relations at the National Taiwan University. “Especially those with their own agenda from the different services and others with their own agenda and perceptions about changes in the outside world, particularly in East Asia.”

The army’s primary mission remains preserving the Communist Party’s monopoly on power and protecting senior leaders.

In addition to defending Chinese territory, most Chinese and foreign analysts agree that Beijing aims to build a force capable of enforcing its claim of sovereignty over Taiwan.

But China’s current thinking about when force is justified or what perceived threats are driving its accumulation of firepower remains unclear for most foreign governments and analysts.

… There is … evidence that some military officers enjoy far more leeway for criticizing or contradicting official policy in a country where dissent remains tightly controlled.

Major General Zhu Chenghu escaped serious censure, according to Chinese officials, after he said in July 2005 that China would respond with nuclear weapons if the United States intervened in a conflict over Taiwan.

… Tolerance has also been extended to another senior officer and influential thinker, Lieutenant General Liu Yazhou, who has publicly called for political reform in China, a move that would be dangerous for most senior Chinese officials.

… In what is seen by some analysts as an attempt to consolidate his control, Hu has ruled out suggestions from some younger officers that the Chinese military should become a fully professional force that owes its loyalty to the state rather than the ruling party.

[David Lague: International Herald Tribune]

Reminds me of the fictional character General Wing, from Cryptonomicon by Neal Stephenson

Wing, a wartime Chinese slave of Japanese soldiers in the Philippines and later a general in the modern Chinese army. Wing is the only other survivor besides Goto himself of a Japanese wartime project to bury war gold in the Philippines, and he competes with Goto and Epiphyte(2) to recover it in the modern day.

[Wikipedia: Cryptonomicon by Neal Stephenson]

Steve Wynn in China: Wynn Macau.

Wikipedia asserts:

The Wynn Macau is owned by Wynn Resorts and will be a hotel and casino in Macao, People’s Republic of China. It will have 600 rooms, 100,000 square feet of gaming housing 200 table games and 350 slot machines, 7 restaurants, 28,000 square feet of retail space, a spa, and entertainment facilities. It is expected to open on September 5, 2006.

[Wikipedia: Link]

SeekingAlpha reports –

Casino magnate Steve Wynn is sending Jack Binion, a 69-year old casino management veteran from Las Vegas, to head up Wynn Resorts’ new operation in the Chinese gambling center of Macau. Wynn Macau, the second casino run by a U.S. company in the region after Las Vegas Sands’, is scheduled to open Sept. 5.

Comment on related stocks/ETFs: Enzio von Pfeil says Wynn and Sands will be big winners in Macau, but Sands has sold off recently after announcing they want to put another $8 billion into their Macau operation. David Riedel of Riedel Research Group thinks there may be oversupply in Macau.

[SeekingAlpha: Link]

The Las Vegas Sun reports on Steve Wynn, Jack Binion, and Macau –

Jeff Simpson talks to Steve Wynn and Jack Binion about their Macau relationship [July 30, 2006]

Steve Wynn … hired Jack Binion to run Wynn Resorts’ international operations.

Wynn said hiring his longtime friend as chairman of Wynn International is a coup for the company. Binion is widely considered to be the man who understands more about the gambling side of the casino business than any other.

“He’s the smartest inside gambler that ever was,” Wynn told me. “Jack had an interest in doing something on his own in Asia. He was fascinated by Asia. I told him: ‘Jack, I got a (Macau casino) concession. I got land. I got money. What I need is your brain. Come on, throw in with me.’ ”

Binion did just that. He’s already a significant owner of Wynn Resorts, with more than a million shares.

… Binion accompanied Wynn to Macau a couple of weeks ago and met Edmund Ho, the Chinese enclave’s top official, as well as casino kingpin Stanley Ho. Stanley Ho controls the lion’s share of the big-betting action that Wynn and Binion covet.

In addition to Wynn Macau, Binion’s responsibilities will include future development on Macau’s Cotai Strip. Wynn recently secured a 54-acre site from the government for about $100 million.

Wynn, 64, and Binion, 69, have known each other for about 40 years. When Wynn took over the Golden Nugget, Binion was running the Horseshoe across Fremont Street. The two became more than friendly competitors, Wynn said.

[Las Vegas Sun: Link]

Barron’s reports that Jack Binion put down thirty million –

GAMBLING ICON JACK BINION HAS WASTED NO time in betting on Wynn Resorts, putting down $30.2 million for the casino operator’s shares one month after he was appointed chairman of subsidiary Wynn International.

[Barron’s: Link]

Casino City news digest: Macau Casinos and Macau Gambling

Macau Casino World Blog
Photographs of casino construction in progress: link.

Dancing with dragons: Nevada courting Chinese tourists –

With gaming still illegal on the mainland, a reported 60 percent of visitors to Macau come from China. Las Vegas gaming property officials, many of whom are also developing projects in Macau, believe an opportunity exists to introduce the Chinese to gaming over there while enticing them to the Strip. The MGM Mirage, Wynn Resorts Ltd. and Las Vegas Sands all have plans to use its Macau properties to bring visitors to Las Vegas.

“As long as Las Vegas continues to reinvest in itself, and as long as the market remains vibrant and exciting, the expansion of gaming in Asia will, likely, only increase the number of people who might have an interest in coming to Las Vegas,” MGM Mirage spokesman Alan Feldman said. “The question still remains, how will they get here?”

To develop a direct flight from China to Las Vegas, McCarran International Airport officials and the LVCVA must rely on politicking, trying to land one of the very few air-service destinations between the two countries. Air routes between China and the United States are negotiated by each country’s government.

[Business Press: Link]

Looking back: June 14, 2002 — Regulators leery of problems in Macau

Nevada gaming regulators are concerned that Strip developers Steve Wynn and Sheldon Adelson could enter a troubled business, political and legal climate in Macau.

The Desert Inn and Venetian owners head two of the three groups that were chosen as semifinalists by Macau officials to build casinos in the $2 billion gambling market that is controlled by mainland China.

The former Portuguese colony, which borders southeastern China and juts into the South China Sea, is a popular destination for Asian gamblers and has a centuries-old reputation for lawlessness that is reflected in reputed links between organized crime and government officials.

Macau’s gaming properties are money makers for prostitutes and loan sharks, who openly conduct business in the casinos. Law enforcement officials believe protection money is often paid to organized crime triads and political leaders to ensure peaceful operations, although Chinese government officials have said that is all about to change.

“I’m concerned because the history of Macau is somewhat jaded in respect to regulated-type activities,” Nevada Gaming Control Board Chairman Dennis Neilander said. “You have to do a substantial amount of due diligence (or background research on people and businesses) to reach some comfort level.”

But it is difficult, Neilander noted, to guarantee the accuracy of the information gathered on potential Chinese and Macau-based partners.

“The whole political and cultural environment for doing due diligence is far different from in the United States,” Neilander noted.

Macau is a one-hour, high-speed boat ride from Hong Kong. Like the former British colony, it was returned to Chinese rule in 1999 when it was given the semi-independent status of special administrative region.

The city of 438,000 people attracted 10.3 million visitors last year, or more than a quarter of the total that came to Las Vegas.

Last year, the Chinese government opened the casino bidding process to wrest control of the peninsula’s 11 small casinos from 40-year casino operator Stanley Ho as mainland leaders attempt to break the hold of criminals on the gambling market, which is a popular destination for Asians throughout the region.

Wynn, Adelson, MGM Mirage and a joint effort of Park Place Entertainment and Mandalay Resort Group were among the 21 bidders to seek approval to receive Macau licenses.

Wynn declined to comment Wednesday while Adelson’s Venetian lawyer, David Friedman, failed to return a phone message seeking comment.

In 1991, Nevada gaming regulators altered the state’s regulations, which required Nevada-licensed casino companies to seek approval from the control board and gaming commission before they could open new casinos elsewhere in the country or overseas.

The change came as legalized gambling began its decade-long spread throughout the country.

… Nevada-licensed gaming operators Hilton Hotels and Station Casinos ran into legal troubles in Missouri, leading to hefty financial fines for the two companies.

Bally Gaming was the subject of Florida and New Jersey investigations in connection with questionable political payments made before Bally was purchased by Hilton spinoff Park Place Entertainment. The company was scolded by New Jersey gaming regulators but never fined.

[Las Vegas Review-Journal: Link]

Side trip: Steve Wynn, Las Vegas, boxing –

Short jabs
Promoter Bob Arum has said that if [Hasim] Rahman defeats [Oleg] Maskaev, he hopes to take him to Macau, an island off the coast of mainland China, to defend the WBC title Nov. 4 on Showtime. Arum has developed a close connection with Las Vegas casino king Steve Wynn, whose Wynn Las Vegas is co-hosting Rahman-Maskaev with Caesars Palace. Wynn is opening Wynn Macau next month, and Arum is hoping to stage the first boxing show there.

[Boston Globe: Link]

Bringing it all back home –

Pachinko machine maker wins Nevada license

LAS VEGAS — July 13, 2006 — The slot machine maker headed by Japanese billionaire Kazuo Okada was awarded a permanent license to manufacture, distribute and operate gambling devices by Nevada regulators on Wednesday.

Aruze Gaming America Inc., a subsidiary of Tokyo-based pachinko machine maker Aruze Corp., won the license at the end of a two-year limited license period in which it had to prove it could respond effectively to inquiries by the Gaming Control Board.

A unanimous approval by the three-member board puts Aruze one step closer to selling slot machines in the United States, in which it would face competitors like Reno-based International Game Technology and Waukegan, Illinois-based WMS Industries Inc.

The company this week submitted its slot machine platform to a regulatory lab for testing, which normally takes six to nine months.

“Hopefully in 2007, we’ll get all our approvals and start selling nationwide,” said Sandra Placak, director of Las Vegas-based Aruze Gaming. The company also has gambling manufacturing licenses in New Jersey and Mississippi, she said.

Okada, listed by Forbes magazine as having a net worth of $1.2 billion with his family, also controls some 24.5 percent of shares in Wynn Resorts Ltd., where he is vice chairman of the board.

Aruze slots will be used in Wynn’s new casino resort in Macau set to open in September. (AP)

[Link]

BBC News reports:

The number of people killed in southern China by Typhoon Chanchu has risen to at least 16.

The deaths happened in Guangdong and Fujian provinces, where houses were destroyed in floods and landslips.

More than a million people have been taken to safety.

An official with the Hong Kong Observatory told the Associated Press that Chanchu was the “most intense” typhoon on record to strike in the South China Sea at this time of year.
[Link]

Image of the day:

Policemen inflate lifebelt before the arrival of the Chanchu typhoon in the Chinese province of Zhejiang.

via We Make Money, Not Art