Hahn Returns From Asia With Contracts and Contacts

Los Angeles Mayor James K. Hahn returned from Asia this week armed with 11 signed agreements with the potential to boost Los Angeles’ economy and create jobs.

But the greater impact of the trip, according to some who accompanied Hahn and others who do business in Asia, may be more intangible: The mayor established relationships with dignitaries, government officials and business leaders that could pay off in the future, both for the city and for some of the executives who traveled with him.

The 10-day trip was Hahn’s first major overseas mission, and it covered a range of issues, from borrowing zoo animals in Beijing to shipping security in Hong Kong. The logistics were at times complicated -- he and his entourage visited Japan, China, South Korea and Taiwan -- and discussions were conducted in various languages, aided by interpreters and intermediaries.

There were some disappointments: City officials had hoped to make more progress toward securing a pair of Chinese pandas, only to come away with a pair of golden monkeys.

But there was headway on a number of fronts, some the result of tough negotiations.

Among the deals between city officials and their counterparts in Asia was a difficult one with Taiwan-based EVA Airways. Under that plan, negotiated months ago but worked out only a day before the mayor arrived in Taipei, the airline will shift its air cargo operations from overburdened Los Angeles International Airport to Ontario Airport.

To get to that agreement, however, sources said city officials had to agree to allow EVA’s sister company, the Evergreen shipping line, to reconsider its facilities, and possibly its lease, at the Port of Los Angeles. The agreement thus could benefit Ontario Airport at the expense of the port, a tough gamble reluctantly accepted by the city.

In other areas, the mayor got agreements to:

* Attempt to boost tourism from South Korea by 4% and Japan by 3%, an increase that, if realized, could add $17 million to Los Angeles’ economy.

* Develop plans for six major shipping companies to reduce air pollution by turning off their diesel-fueled engines while docked and plugging into the city’s power system, which could generate $25 million to $30 million for the Department of Water and Power.

* Open the doors for Los Angeles’ public and private sectors to win contracts in Beijing, where the government is considering a major airport expansion and other projects to prepare the city for the Summer Olympics in 2008.

* Create a pilot program with Modern Terminals in Hong Kong to more carefully screen cargo coming from Asia to Los Angeles’ port.

In an interview before he left Asia, the mayor said the trip was essential to prove that Los Angeles is a serious player in the global marketplace and to secure the city’s place in that competitive arena.

“Much of this is laying the groundwork for future work,” Hahn said. “This is obviously not the completion of anything. These are really agreements to work together. If you don’t do these kinds of things, you run the risk of other people being more aggressive and Los Angeles falls behind.”

It wasn’t always easy for the mayor, who sometimes seems uncomfortable with small talk. In one meeting at an airport, for example, he listened patiently as a counterpart went on at length and the Los Angeles traveling delegation listened. The meeting grew long and Hahn, seeking relief, sought out his sister, City Council member Janice Hahn, with a glance. Silently, he mouthed the words: “Help me.”

Still, the mayor, used to talking more about potholes and traffic, found himself practicing foreign affairs. “I’ve understood more on this trip than ever before that city government -- and being the mayor -- is more than just making sure the government runs and services are delivered,” Hahn said.

Former Mayor Richard Riordan took a similar trip to Asia in 1998, spending 16 days on a more ceremonial visit, according to several people who were on both trips.

‘More Deliverables’

“The Hahn trip has more deliverables,” said Philip Depoian, deputy executive director of the airports department. “You can’t discount the ceremonials, but what appears to be leading this mayor’s office is: Let’s get something while we’re there to keep these relationships alive. I believe the mayor and his staff have a commitment to establishing long-term relationships with the cities and countries we’re visiting.”

The business executives who trailed the mayor are among a group of political contributors who helped finance Hahn’s mayoral campaign, as well as his anti-secession campaign earlier this month. They paid their own way -- about $12,000 each -- for uncommon access to Asian government officials and to Los Angeles officials.

Those discussions were held in coffee shops, hotel bars, buses and airplanes. Jim Dunn of the Airtel Plaza Hotel in Van Nuys traveled to Tokyo a day ahead of the delegation to meet with clients, then attended a dinner hosted by the city where he met the heads of those companies.

When he next meets with those tour operators in Los Angeles, Dunn said, he will casually mention that he had dinner the other night with their bosses in Tokyo. It helps, he said.

Dunn also spent time with the mayor on a plane from Shanghai to Hong Kong, where they talked about ways to mend fences with those in the San Fernando Valley who supported the unsuccessful secession efforts there.

Peter Zen, owner of the downtown Westin Bonaventure Hotel, said he hopes to open a hotel in Shanghai. It was beneficial, then, for Zen to attend a luncheon with the mayor of that city and other government officials. It didn’t hurt either for Miguel Contreras, head of the Los Angeles County Federation of Labor, to spend time with Zen, whose hotel employs about 900 union workers.

“I can say, ‘Remember the good old days in Shanghai’ before we start talking about our issues,” Contreras said.

Jack Baylis, senior vice president of engineering and construction firm CH2MHILL, and Edward McSpedon, vice president of HNTB Architects, hope to take advantage of the deal signed in Beijing designed to open doors there for Los Angeles companies to win contracts for airport and other city projects.

They also used the trip to spend time with Hahn, speaking to him at length during a bus ride back from the Great Wall about ways to improve the Los Angeles River and the Ventura Freeway.

Peter Woo, president and chairman of Megatoys in downtown Los Angeles, hosted a breakfast in Shanghai with dozens of representatives of Chinese businesses, including many who work in Los Angeles.

“It’s important for the mayor -- and the city -- to build better relationships with the business community in the Pacific Rim,” Woo said. “It will be good for everyone.”

Depoian, of Los Angeles World Airports, said the trip was important substantively and symbolically. At one private meeting with the head of a Japanese airline, for example, the executive said his own airport doesn’t come to talk to him, Depoian said.

“What I have is a mayor willing to come out and bless the activities that we’re doing,” Depoian said. “The follow-up for a staff person becomes that much easier.”

National Policy Changes

But though intentions may be good at the local level, some of these deals might work only if they are accompanied by changes in national policy. Though Los Angeles officials sought to boost tourism, a larger problem looms for many Asians: a rigorous visa review process that often makes it difficult for business and recreational trips to the United States.

In Shanghai, Los Angeles officials showed a splashy video of their city, complete with scenes of young people dancing in a rooftop bar, cheerleaders and the beach.

When it was over, Wenlin Mao of Captain Consulting (Shanghai) Ltd., complained about the visa problem.

“It is very difficult for us to get visas for the U.S., especially after 9/11,” Mao said. “Almost impossible.”

The mayor said he heard the complaint in every city he visited. He said it is one of the issues he wants to deal with.

“I think we all recognize that the terrorists who attacked the World Trade Center came over on visas,” said Hahn, who helps review security issues as part of his role with the U.S. Conference of Mayors. “We have to put security at the top of the list, but we have to be smart about it too. It’s tough.”

Some Local Goals

While the mayor navigated diplomatic currents, some City Council members undertook more local initiatives. Janice Hahn, who served dual functions as a council member and co-host for many functions with her brother, met in Shanghai with the largest crane manufacturer in the world and raised with him her concerns about the effect those cranes have on harbor residents.

Specifically, she said many of her constituents complain that the cranes block views of the Vincent Thomas Bridge.

“He said, ‘I want to stand where you stand and see what you see,’ ” she said later. “That was the highlight of my trip.”

Councilman Eric Garcetti, meanwhile, met with Japanese tourism agents who recently opened an office at Hollywood Boulevard and Highland Avenue, an area he represents.

“It was very important to put a face on Los Angeles, to reassure them that it is safe,” Garcetti said. “I don’t think anyone can underestimate how important safety and security are to the Japanese, especially.”

He said he also got new ideas for his district: seeing the signage in Shanghai, the parking meters in Tokyo and the pocket parks in Shanghai.

“The best and the most modern is no longer in L.A.” Garcetti said. “We’re going to have to change the way we do things.... We need to position ourselves as the capital of the Pacific Rim.”