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REPORT TO MAYOR AND COUNCIL NO: 03-018

January 14, 2003

SUBJECT: Ratification of Memorandum on Friendly Exchange Relations Between Pinghu City, and the City of Sunnyvale

REPORT IN BRIEF During December 1 - 8, 2002 Councilmember Fred Fowler and several members of the Sunnyvale Community visited five cities in China, (, , , Hongzhow and Pinghu City) as part of a multi-city tour of China. As a result of the exchanges and dialog between the Chinese delegation and the City, officials of Pinghu City developed a memorandum of friendly exchange that was signed by a representative of each government. Councilmember Fred Fowler signed this memorandum on behalf of the City of Sunnyvale. Council is now requested to ratifY the agreement between the two cities. BACKGROUND The City of Sunnyvale has on several occasions hosted international visitors for the purpose of sharing information about our management systems and governmental structure. In September 2002, a delegation which included business, cultural and governmental representatives from the City of Sunnyvale were invited to tour China to assist Silicon Valley Companies in making business contact with their Chinese counterparts. On behalf of the City of Sunnyvale, Councilmember Fred Fowler was invited to attend to discuss in general, relations between government and business in early December 2002. On December 12, 2002 at the 2003 Study Issues Workshop, Council ranked the development of a staff study on the Sister Cities relationships with other countries as their number one priority in the Office of the City Manager.

EXISTING POLICY GOAL 7.3F: Investigate and implement productivity improvements in order to enhance the effectiveness of service delivery.

Policy 2.3 Support an expansion of exports and international trade including increased trade agreements with other countries, which preserve regional

1------Issued by the City Manager------RATIFICATION OF MEMORANDUM ON FRIENDLY EXCHANGE RELATIONS BE'IWEEN PINGHU CITY, ZHEJJANG CHINA AND THE CITY OF SUNNYVALE January 14, 2003 Page 2 of3 economic interests in terms of critical economic, labor, infrastructure and environmental concerns.

DISCUSSION On December 3, 2002 Councilmember Fred Fowler, on behalf of Mayor Julia Miller, signed a Memorandum on Friendly Exchange Relations between Pinghu City, Zhejiang Province, the Peoples Republic of China and the City of Sunnyvale. This memorandum was signed in accordance with the principles of the Joint Communiques of the People's Republic of China and the United Stated concerning the establishment of this diplomatic relationship.

As a result of the agreement, the City of Sunnyvale agrees to adhere to the purpose of enhancing the understanding and friendship between the two countries, and agrees to establish friendly exchange or information and consultation on common concerns of issues. Both sides also agree to develop various exchanges and co-operation in terms of economy, trade, science and technology, culture, education, physical education, and health issues in order to promote common prosperity and development.

By ratifying the agreement, the City of Sunnyvale agrees to keep regular contact for the convenience of discussion, consultation, cooperation and exchange of information on common issues and concerns.

A presentation will be given by Councilmember Fred Fowler to discuss his December 2002 China trip and provide further information about this agreement.

FISCAL IMPACT The fiscal impact of the agreement has not been determined. The impact could range from minimal to significant resources depending on the extent and the method Council wished in executing this agreement.

PUBLIC CONTACT This report was included in the publication and posting of the Council agenda on the City's official notice bulletin board, the City's web page, and the San Jose Mercury News. This report is also available at the Sunnyvale Public Library and the City Clerk's Office.

Alternatives RATIFICATION OF MEMORANDUM ON FRIENDLY EXCHANGE RELATIONS BEIWEEN PINGHU CITY, ZHEJIANG CHINA AND THE CITY OF SUNNYVALE January 14,2003 Page 3 of3 1. Ratify the Memorandum 2. Do not ratifY the Memorandum

RECOMMENDATION Staff recommends alternatives 1.

Prepared by:

Aretha R. Ferrell-Brown Assistant to the City Manager

Reviewed by: Qd~ Assistant City Manager

Approved by:

City Manager

Attachments

A. Copy of the Joint Memorandum of Friendly Exchange Memorandum on Friendly Exchange Relations Between Pinghu City, Zhejiang Province, the P&R China and Sunnyvale City, the United States of America

In accordance with the principles of the Joint Communique' of the People's Republic of China and the United States concerning the establishment of their diplomatic relations, Pinghu City, Zhejiang Province, the P&R China and Sunnyvale City, the.United States of America, adhering to the purpose of enhancing the understanding and friendship between two countries, agree to establish friendly exchange relations through friendly consultations as follows:

1. Adhering to the principle of equality and mutual benefit, both sides develop various exchanges and co-operation in terms of economy, trade, science and technology, culture, education, physical education, health, the talent etc. in order to promote common prosperity and development. 2. Leaders and relevant departments of both sides keep regular contact for the convenience of discussion and consulting with on exchange and co-operation and common issues both sides concerned. 3. This memorandum is signed in Pinghu City, Zhejiang Province on Dec. 3rd, 2002 and shall take effect from the day that the memorandum signed by both sides. 4. This memorandum is executed in Chinese version and English version in duplicate, each of which shall be binding upon both sides.

Pinghu City, Zhejiang Province The P & R of China By Mayor: (signature)

Silicon Valley, Sunnyvale The United States of America By Mayor: Frederik M. Fowler (For Julia Miller)