EXTRANCHECK: POST SHIPMENT VERIFICATION: THE

UNCLAS HONG KONG 004110

SIPDIS

STATE FOR US HQ BICE WASH DC

USDOC FOR 532/OEA/LHINES/KGAINES
USDOC FOR 3132/FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS

SIPDIS

E.O. 12958: N/A
TAGS: BMGT BEXP HK ETTC
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: THE
MACAU WATER SUPPLY COMPANY LIMITED

REF: A) USDOC 05401 B) D322567


1. Unauthorized disclosure of the information provided
below is prohibited by Section 12C of the Export
Administration Act.


2. As per reftel A request and at the direction of the
Office of Enforcement Analysis (OEA) of the Bureau of
Industry and Security (BIS),Export Control Officer
(ECO) Philip Ankel conducted a post shipment
verification (PSV) at The Macao Water Supply Company,
Limited (Macao Water),718 Avenida Do Conselheiro
Borja, Macau on October 12, 2006. This PSV concerned
gas detection sensors exported by Quest Technologies
Inc., of Oconomowoc, Wisconsin, classified as 2B351
and valued at $384. These gas detection sensors are
controlled for chemical and biological weapons reasons
(CB) and were exported to Macau pursuant to DOC
license D322567.


3. Macao Water is the sole drinking water provider for
the island of Macau. It is a private company majority
owned by French investors (more information at
www.macaowater.com).


4. The ECO met with Chao Man Sou, the Manager of the
Technical Support Department and Vice-Chairman of the
Health and Safety Committee. The meeting occurred in
Mr. Sou's office at the treatment facility. Mr. Sou
confirmed that Macao Water had received the gas
detector but that, unfortunately, as the unit was
acquired over two years ago, it was no longer in use
and had been discarded. Given its low value, Mr. Sou
explained that Macao water had not kept records of the
disposal. Mr. Sou explained that the sensor had been
replaced by a newer sensor acquired from England. The
unit and its replacement are used to measure the
chlorine level in treatment tanks prior to workers
entering those tanks to perform cleaning or repair
work.


5. Mr. Sou was open and cooperative and provided the
ECO with copies of the relevant documentation
regarding the ordering and receipt of the item. He
also gave the ECO a tour of the water treatment
facility.


6. Mr. Sou stated that he did not believe that Macao
Water had been informed of the applicable license
conditions of license D322567 (i.e., no resale or
reexport with BIS approval) as required by license
condition three.


7. The ECO believes Macao Water to be a very suitable
recipient of U.S. origin controlled technology as it
cooperated with the ECO, has a line of business that
is consistent with the item's potential use, provided
relevant documentation and allowed an on-site visit.
Nonetheless, in accordance with guidance on reporting
of PSVs where the items cannot be physically
inspected, the ECO recommends that this PSV be
classified as Limited.
Cunningham