SECRETARY CHERTOFF'S MEETING WITH HONG KONG CHIEF

C O N F I D E N T I A L SECTION 01 OF 03 HONG KONG 001468

SIPDIS

SIPDIS

STATE FOR EAP/MCGANN, EAP/CM
NSC FOR WILDER

E.O. 12958: DECL: 04/08/2031
TAGS: PTER PREL PGOV ECON EWWT HK CH
SUBJECT: SECRETARY CHERTOFF'S MEETING WITH HONG KONG CHIEF
EXECUTIVE DONALD TSANG

Classified By: Consul General James B. Cunningham. Reasons: 1.4 (b,d).

Summary
--------------


1. (C) On March 31, U.S. Department of Homeland Security
Secretary Michael Chertoff met with Hong Kong Chief Executive

SIPDIS
(CE) Donald Tsang. They discussed how to improve port
security without impeding the flow of commerce. Tsang
assessed both Hong Kong and mainland China's preparedness
against an Avian Influenza (AI) outbreak: Hong Kong was
well-prepared, and while China faced significant problems due
to its size and relative poverty, the Chinese Government was
aware of the need for prompt reporting of outbreaks. Hong
Kong would close its border with the PRC if necessary,
although the CE doubted whether such measures would work
against a virus transmitted by migratory birds. Tsang
assured Secretary Chertoff that Hong Kong was vigilant
against terrorism, including possible Al Qaeda operations,
and promised to cooperate in any way possible with the United
States. The Secretary thanked the CE for Hong Kong's
existing and effective law enforcement cooperation. End
summary.

Hong Kong: A vigilant, internationally responsible, city
-------------- --------------


2. (C) On March 31, Homeland Security Secetary Michael
Chertoff met with Hong Kong's Chie Executive (CE),Donald
Tsang. Tsang was accompned by his chief of staff, John

SIPDIS
Tsang (no relaton). The CE stated that Hong Kong was safer

SIPDIS
tha most other ports; the Hong Kong Government (HKG) hd
never been complacent. His main cncern at this time was
about Avian Influenza (AI),as well as terrorism. Hong Kong
believes in the importance of its international links; there
is a large international community resident here, from the
U.S., Japan, and elsewhere; the only way for Hong Kong to
progress is as an international city. The HKG is always
vigilant, and continues to work on counter terrorism,
anti-money laundering, and other activities such as the
Container Security Initiative (CSI). In Tsang's opinion,
they were getting pretty good results. Hong Kong would
support any initiative that did not undermine its belief in
free trade or its fundamental economic interests.

US seeks improved port security
--------------


3. (C) Secretary Chertoff explained that he was visiting Asia
to ensure that the United States was a good partner. We want
greater security, and we share fundamental economic
interests. We are concerned with air and maritime cargo, and
with port security. We are very mindful that we cannot
achieve security at the expense of the economy. Commerce
must move smoothly. At the same time, if one container held a
bomb that went off, that would be tremendously destabilizing.
Our goal is partly educational: we want to raise the level
of security and also raise the perception of the level of
security. There are three elements to the U.S. program.
First, we encourage the private sector to collect information
on the cargoes themselves. (One hundred percent physical
inspection is incompatible with the needs of the economy, so
we need to explain to the public that we are better off with
a screening process.) We use the results of the screening to
target specific containers for inspection. Second, we use
technology for non-intrusive monitoring, via radiation
detectors and x-ray scanning. Third, we are improving our
background checks of personnel in the ports, as well ship
crews and others involved in the supply chain. Loading ports
that have improved security may be eligible for expedited
treatment; ports with poor security will see their goods pile
up at our ports, waiting for inspection. We are very
concerned that what we do not slow up movement, but at the
same time we do want to actually see what's coming in. We
were looking at port operations all over the world, in order
to raise the level of security in an intelligent way.


4. (C) The CE said that at Hong Kong's airport they check
100 percent of all baggage and cargo, using cameras and other
equipment. It ought to be possible to do the same with

HONG KONG 00001468 002 OF 003


containers; the system at the airport does move suspicious
items into the "red channel." Of course, the shipping
containers are much larger. There is also the issue of
containers that are trans-shipped through Hong Kong, for
example from mainland ports. It would be useful for Hong
Kong to know what technology to choose. Hong Kong wanted to
help to the extent that its limited resources permitted. The
fundamental issue would be to keep trade moving. Hong Kong
was looking at its own practices to see how security could be
improved. Tsang observed that, while Hong Kong faced
challenges, the challenges were universal.

Avian Influenza
--------------


5. (C) Secretary Chertoff turned to the subject of avian
influenza (AI). Fortunately, there has not yet been any
efficient human-to-human transmission. However, our ability
to resist calls to shut everything down if there is efficient
transmission will depend very much on the speed with which we
get information. He asked the CE for his assessment of AI
awareness in Hong Kong and mainland China.


6. (C) CE Tsang responded that Hong Kong took AI very
seriously, after its experience with SARS. In some respects,
the community has never fully recovered from the SARS
experience, including its impact on health care
professionals. AI is at the top of the Government's current
priorities. Tsang assessed Hong Kong's preparedness as very
sophisticated. They had determined how to deal with
high-risk areas, and had established a network among
hospitals, laboratories, the private sector and the
Government to deal with an outbreak. Hong Kong had the best
labs in Asia and was advanced in work on development of a
vaccine. As for China's preparedness, this was an important
task for them as well. Hong Kong dealt with both the central
government in Beijing, and the authorities across the border
in Guangdong. There is an efficient notification system, but
China is huge and poor and there is accordingly the danger
that not everything would be properly identified or promptly
reported.


7. (C) Hong Kong's experience, from SARS, is that sealing
the border would probably be ineffective. The virus, which
is carried by migratory birds, could be rapidly mutating on
both sides of the border. The CE confided that they did have
the means to close the border, and could do it within a
matter of hours. Nevertheless, it would be a very serious
thing to do, and would only be done as a last resort. Tsang
personally thought that the virus would probably already be
on the loose by the time they shut down the border.


8. (C) Secretary Chertoff observed that there was a tendency
to want to control information. Jurisdictions want to avoid
being sealed off and therefore underreport. The CE replied
that there was a requirement in China to send information to
the national authorities. There was also good coordination
at the regional level. But because this disease was spread
by migratory birds, it is much harder to control. Hong Kong
would be sure to be well-prepared, with stockpiles of the
proper drugs. Shutting off Hong Kong was the last thing that
he wanted to do, since everything was imported. Secretary
Chertoff observed that the U.S. also had concerns about the
impact of a quarantine -- if everyone is quarantined and no
one goes to work, we face similar dangers.


9. (C) The CE said that when he had met with President Bush
in Korea last fall at the APEC Leaders meeting, he told the
President that Hong Kong was spending billions on stockpiles
of tamiflu. Secretary Chertoff noted that part of the
challenge of a workable vaccine was the problem of producing
sufficient quantities, and also of deciding who needed to
vaccinated first. The CE explained that Hong Kong would have
to rely on other countries to produce the vaccine, but
promised that Hong Kong would do its part, including
quarantining itself if an efficient human-to-human virus
transmission was taking place here.

Al Qaeda
--------------

HONG KONG 00001468 003 OF 003




10. (C) Secretary Chertoff asked CE Tsang whether he saw Al
Qaeda as a threat to Hong Kong. Tsang replied that they were
aware of the potential and were monitoring dangerous
elements. Most of the Muslim community in Hong Kong was from
South Asia and had been here for a long time, and was
moderate. Last month elements of the community demonstrated
over the Danish cartoon issue; that was the first time that
Hong Kong had seen any manifestations of Islamic militancy.
In fact, the demonstration was very mild and restrained. But
since Hong Kong is adjacent to a number of dangerous areas
such as Indonesia, Malaysia and the Philippines, they
maintain their vigilance. The CE said that Hong Kong engaged
in intelligence sharing on this subject with Singapore, and
asserted that Hong Kong would leave no stone unturned in the
fight against terrorism, and would assist the U.S. in any way
it could. Secretary Chertoff said that he was aware that the
U.S. and Hong Kong enjoyed a very strong, cooperative law
enforcement relationship, and thanked the CE for the help we
have already received from Hong Kong.


11. (U) Secretary Chertoff's party has cleared this cable.

Cunningham