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Q: Can you describe what you saw when you first arrived in Chengdu?
Panic and fear were prevalent when I arrived in Chengdu on May 17. There were very few vehicles on the roads and people had deserted the streets to seek safety.
Although Chengdu, the capital of Sichuan province, had escaped the worst of the earthquake's impact, many of the older buildings had been heavily damaged and the city's 11 million people feared more damage from aftershocks. That fear was well founded.
In the two weeks after the first earthquake, Sichuan experienced more than 7,000 aftershocks with 26 of them rating above 5.0 on the Richter scale. Another six were recorded exceeding 6.0 on the scale. Two days after my arrival, there was an official warning that an aftershock of six to seven could rock Wenchuan County, about 160 kilometers from Chengdu.
Many Chengdu residents spent a sleepless night in the open air, away from buildings. Amid the panic in the days after, many of the residents left Sichuan. All outbound airlines were fully booked as people sought refuge and security with family and friends in other parts of the country. On my return flight to Beijing, three days later, the girl sitting next to me said her parents were sending her to a relative's home for safety. Many of her classmates had already left for the same reason.
Another large number volunteered to help, fighting to save victims in the most stricken areas and participating in the distribution of food supplies in other cities.
Q: What were the survivors' most urgent needs?
Basic items and foodstuffs were scarce very soon after the earthquake. Transport links in and out of Chengdu seized up as the scale of the damage to major roads in the area became evident. Local traders talked of getting very few supplies of essential goods and they feared that the situation would get worse if there were further damage to the infrastructure. The local radio stations broadcast appeals every 10 minutes for trucks and cars to assist with the delivery of goods. The survivors’ urgent need was for food, water and tents. Quite clearly medical supplies were also required to treat the thousands of people who were injured. But according to a number of Chinese non-governmental organizations (NGOs) and the local government officials I spoke to, there was a dire need for basic foodstuffs while medical supplies were being arranged from across China. The situation was even more serious around the epicenter of the earthquake where, according to a friend who visited the area, thousands of people were living in the open air as they waited for emergency relief supplies.
Q: How did the aid provided by JPMorgan assist the victims?
Our firm's immediate response was led by the China IB team in Hong Kong. It acted quickly and reached an agreement with the Tingyi Company, a food manufacturing company, to purchase water and food at the value of RMB 3million (US$430,000). With the support of an NGO -- the China Foundation for Poverty Alleviation – joined by JPMorgan volunteers in Chengdu and Hong Kong, and the support of others, from local government agencies in Sichuan and Chongqing, to the Tingyi Company, the transportation department and a car rental company, we managed to bring in 18 container trucks filled with water and food. These trucks, loaded with 555,000 bottles of water and 576,963 packages of instant noodles, were sent to government transfer points in Chengdu and Ya’an on May 18 and 19.
On May 22, the local government notified us that our goods had arrived at some of the most severely hit areas. In recognition of the firm's efforts, the local government sent us a letter, saying: “JPMorgan is deeply concerned about people in the earthquake stricken areas and brought a large quantity of disaster relief goods. The goods have greatly helped address some of the most immediate needs of people affected by the earthquake. At this crucial moment, we’d like to send our sincere thanks for JPMorgan’s generous support.”
Q: What can JPMorgan do longer term to help rebuild the lives of the people of Sichuan province?
After two weeks of extraordinary efforts in searching and rescuing the survivors, the focus of the disaster relief efforts has shifted towards preventing the outbreak of epidemics, helping people in the earthquake stricken areas settle into temporary shelters and the rebuilding of homes, schools, hospitals and other community services.
The Chinese Government and all the NGOs on ground are now in the process of defining a rebuilding plan for Sichuan. Some NGOs, like the China Youth Development Foundation and the China Foundation for Poverty Alleviation, have just announced their mid-term rebuilding plan for Sichuan, including the building of temporary shelters, schools, hospitals and other community services in some earthquake stricken areas. Many NGOs are still assessing the situation and watching the government’s upcoming rebuilding plan before rolling out their specific programs.
JPMorgan is now developing specific plans to collaborate with the local government and NGOs on the ground to forge longer term solutions, a priority as we plan our overall strategy for Corporate Responsibility in China during the next 12 months, at least.
In this respect, the donation of US$200,000 from the JPMorgan Chase Foundation in New York, with matching funds from employee contributions for an additional amount, will be a huge assistance. This money is going to the U.S. Red Cross which is one of the major aid agencies that is assessing the scale of the problem and the most effective way to contribute. Q: Is there one image of the disaster which had the greatest effect on you during your trip to assist with the aid distribution?
During my four days in Sichuan, I’ve been deeply touched by many images; it’s very hard to single out just one. I remember volunteers unloading the JPMorgan donated goods for five hours non-stop, student leaders from Sichuan West Southern University handing donations to a government official in Ya’an with tears in their eyes, drivers saying that they wish they could do more after transporting disaster relief goods for a few days with very little sleep, student volunteers from Sichuan Agriculture University setting up “recharging stands” at Ya’an and passing water to drivers carrying disaster relief goods. These images will remain with me forever. I have never seen volunteerism and solidarity on such a massive scale.
Q: Are you planning another trip to the area?
Oh yes, I'll certainly return to Chengdu. There is a huge amount that we can contribute and I look forward to working with the China management team and NGO's about how we can maximize our contributions.
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