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1.
Feature Story / Diamond
& Avon calls -- China now
answers.
When Diamond Aircraft, Amway and Avon entered China
in 1996 -1997 to sell product, it took a little
over one year for China to ban the door-to-door
AmericanWay sales technique, saying it encouraged
pyramid schemes that fleeced poor people.
Click
image for large view of
Letter.
Political analysts said the ban by the ruling
Communist Party was intended to prevent companies
from creating cult-like followings that took their
messages directly into people's homes.
As for DiamondAir, they had to wait for the rules
on private aircraft to be established and approved
by Communist party heads, (the Jiang Zemin
Administration), before potential pilots could be
sold training courses.
During his speech at the Academy of Social
Sciences, given last week by U.S. Federal
Researve Chief, Ben Bernanke,
Bernanke argued that more open
markets, more spending and less savings by China
citizens, "would benefit China and the world
economy."
Some, however, questioned both Paulson and
Bernanke's altruistic tone and call for quick
results. "America wants everything to happen
tomorrow," said Wang Yiwei, an American studies
professor in Shanghai. "There's a cultural
difference here." FOR
MORE STORY ABOUT REVALUATING THE PEOPLE'S YUEN FOR
US
DOLLARS.
Attorney Scott Stubblefield, who was at the time
associated with the Melvin Belli Legal Firm, of San
Francisco, has represented most of the successful
China Expo, GPI trade missions to China since
1988.
Stubblefield said, "we feel, without any doubt,
everyone who was given an official permit by PR
China to become a party to a trade mission or a
cultrual exchange music concert, knew what they
were doing, and got everything they had bargained
for . . . plus more. MORE
TCS STV
STORY.
As the success story of Austria's Diamond Aircraft
Industries, GmbH unfolds, it was pointed out, "that
it was just last year, in April and September,"
they received a license to conduct business with
the consumer. The bonus package included a
lucrative joint venture contract with an
established China aircraft firm in
Shandong
Province.
To avoid any infringement conflicts concerning --
prior intellectual property rights owned by
DiamondAir, they were permitted to deliver their
first Austrian made aircraft to China.
MORE
DELIVERY STORY.
In the next couple of years, the original 1997
DiamondAir / China Expo 2000 small aircraft Trade
Acceptance Request will grow from the stated amount
of $117-Million U.S. dollars to over
$1-Billion.
China Expo 2000's share in DiamondAir's future
success and profits, stems from a simple China
Trade Acceptance Agreement, an Intermediary
Agreement, and a Non-circumvention Agreement. The
set of agreements could set new standards for
corporate behavior.
The facts, interpretation and the performance by
the parties three trade agreements, could settle
and strengthen enforcement of privacy laws as well
as intellectual property rights.
China's growth in the world of WTO members, will
depend on how party officials honor the terms and
conditions of long-term viable agreements, say
legal experts. Comoditizing intellectual property
rights means monitary growth. "It's something they
picked up from the U.S.A., says Stubblefield.
Part
02
/ Diamond Trade Mission To Beijing - 1997
The outcome of the almost unheard trade mission
given to DiamondAir was permitted when they agreed
to follow the systematic approach to the terms
required of them before arriving in Beijing.
Any and all fees were to be paid, only if and when
DiamondAir proved they could provide the small
planes to PR China that Beijing desired. In
addition to the primary $17.5 million intermediary
fee to ChinaExpo, DiamondAir also made provision
for a continual fee of 15% to be paid to ChinaExpo,
based on the of sales of DiamondAir's goods,
products and services for the period of 10
years.
With the exception of Richard Chojnack,
DiamondAir's original 1997 official who was
signatory to the 1997 Diamond Air/ChinaExpo
transaction, no one from Diamond Aircraft was open
for comment, either in Canada nor Austria. Thus
far, all executives and inter boardroom members
within the multi-national Austrian, Canadian, and
California conglomerate, have tentatively been mum
on appointing a Trade Mission intermediary
to help resolve the payment of fees now due
and payable to ChinaExpo. SEE
DIAMOND'S APPOINTMENT OF CHOJACK
The third party approach to China's billion dollar
growth question, should be a simple solution," says
Stubblefield, "but it isn't. As to "how to handle
the accounting of revenue sales originating from
the Diamond's Shendong, China manufacturing plant
is a tough one." It's hard to phanthom the thought,
especially in a nation where paying royalties,
taxes and catering to a two-party system was once
taboo.
"It was just last week, (Dec. 6-8th 2006)," says
Mark Sovol of TVInews, "that our EU TVInews chief,
Kurt Sigl, requested an interview with Christian
Dries, the CEO of Diamond Aircraft. Two days after
Kurts request, I read on a China Daily web page,
"that the first Diamond plane to roll off the
production line, was last year in October, and the
company has since that time -- produced 16 to
date."
The quote from China Daily read: "All DA-40
aircraft will be produced in Shandong in a few
years," said Christian Dries, chief executive
officer of Diamond Aircraft adding the move would
help meet demand for pilot training and personal
transport in China and southeast Asia.
The company has estimated that China's demand for
private aircraft would exceed 1,000 a year in five
to ten years.
Part
03 / China Answers The Google, Wal-Mart, Home
Depot, AmWay, and Avon Calling
Resolves
Stubblefield analogized the way Google and Avon
Calling resolves their successful entry into China.
They approached Beijing officials the corporate
party boardmeeting way . . . "and it worked."
Co-operating, sharing with other major players in
China was the answer. No competition, no stars, no
unfair business practices involving the working
class or your fellow man.
Resolving a monetary controversy before it becomes
part of the litigation process, is the best
approach. Like Google, AmWay, Avon and others have
done, DiamondAir and ChinaExpo could set new higher
ground for themselves by giving an independent
hands-on trade mission director, oversight
authority to control the ethical and privacy issues
-- that might be misinterpreted by their peers.
MORE
ABOUT NO STARS IN
CHINA
Openness will not only create a new power center
within a major corporation, but "it'll create
transparency by utilizing the Web to inform
affiliates and customers what party rules that will
guide them in conducting business in China,"
Stubblefield said. "The individual companies will
be answering to a broader set of standards in
international affairs." If Google, Wal-Mart, Home
Depot and Yahoo had to conform to China's neutral
Web rule, so can everyone else."
China Expo and a few of its PR China affiliates
were requested to use care in using boardroom, "no
comment" statements, to explain the intents of the
original May, 1997 ChinaExpo/DiamondAir agreement.
The Beijing official who requested anonymity, said
a 'no comment' statement is a compass reading,
heading south." "One's future in China depends on
how the boardroom members systematically approach
the possible violations and the methods to play
down possible unfair business practices."
Cai Guohua, the Communist party secretary of
Zhanhua county, said that most (of the) aircraft
parts, (needed for putting a Diamond aircraft
together), -- were purchased from abroad, but as
BinAo improved its technological capacity, more
composite materials and parts (for the planes)
would be produced in Shandong.
"Mass production (of each Diamond aircraft) -- will
boost the development of China's general aviation
industry and the development of related industries
like composite materials, electronics and
communications," said Cai. MORE
STORY FROM CHINA DAILY - Dec. 11,
2006
Aircraft
JV to start mass production in East China /
Updated: 2006-12-09 10:48 /
100DiamondChinaNewsDec
/
A Sino-Austrian joint
venture in East China is to step up production of
the DA-40 light aircraft in order to meet growing
demand for training and private aircraft.
More
on DiamondAirt's Mass Production
Plant
About
China's 5 to 10-year plans
More
on DiamondAir's Mass Production Plant - From China
Daily
COMING
-- MORE STORY ABOUT REVALUATING THE PEOPLE'S YUEN
FOR US
DOLLARS.
MORE
ABOUT DIAMOND AIRCRAFT - PART 03 / 2007 FUTURE IN
CHINA.
More
Articles Converging
News DECEMBER 2006 / TeleCom BuyOuts, Spinoffs and
Asset Seizure Boom
Josie
Cory
Publisher/Editor
TVI Magazine
TVI
Magazine, tviNews.net, YES90, Your Easy Search,
Associated Press, Reuters, BBC, LA Times, NY Times,
VRA's D-Diaries, Industry Press Releases, They Said
It, SmartSearch, and Wikipedia, the free
encyclopedia were used in compiling and
ascertaining this Yes90 news
report.
©1956-2007.
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108 Part One. Diamond
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Aircraft, Dagao General Aviation, Zhanhua City,
Shandong Province. Established -
2005. /
Feature
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