CG CUNNINGHAM DISCUSSES U.S. PORT SECURITY

UNCLAS SECTION 01 OF 02 HONG KONG 004174

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EAP/CM
STATE FOR EB/TRA/OTP DAYTON/MILLER
STATE FOR ISN LEHRMAN/INGRAM
STATE FOR EAP/EX CHRISTENSEN
DOE/NNSA FOR HUIZENGA/MUSTIN
DHS/CBP FOR FUJIMORA

E.O. 12958: N/A
TAGS: ECON EWWT HK PREL
SUBJECT: CG CUNNINGHAM DISCUSSES U.S. PORT SECURITY
LEGISLATION WITH CITB SECRETARY WONG

REF: HONG KONG 2650


1. (U) This is an action cable, please see paragraph 6.


2. (SBU) In an October 18 meeting, Consul General James
Cunningham informed Secretary of Commerce, Industry and
Technology Joseph Wong that on October 13 President Bush
signed into law Port Security Legislation that requires the
Department of Homeland Security (DHS) to designate within
ninety days three foreign seaports for the establishment of
pilot integrated container scanning systems along the lines
Hong Kong terminal operators have been experimenting with.
The legislation requires DHS, in conjunction with the
Department of Energy (DOE),to deploy integrated container
scanning systems that combine non-intrusive imaging
equipment and radiation detection equipment in three ports
with differing levels of trade volume. The CG noted that
two Hong Kong Port Terminal Operators, Hutchison
International and Modern Terminals, had already deployed
and conducted tests of a private-sector developed
integrated scanning system, the Integrated Container
Inspection System (ICIS).


3. (SBU) The CG told Wong that Washington agencies had not
yet decided whether Hong Kong would be designated as one of
the three pilot projects; however, the U.S. government was
continuing to work in Hong Kong to resolve outstanding
issues, focusing on Modern Terminal's pilot ICIS project.
One issue is the large amount of background radiation the
ICIS radiation monitoring equipment is detecting. A DHS
Technical Team that studied this phenomenon concluded that
the background radiation is likely attributable to the
granite used in the terminal's concrete surfaces. A second
issue is the ICIS system's current inability to
electronically transmit usable images and data to the
Container Security Initiative personnel both at the Hong
Kong Port and in the United States. Presently,
telecommunications cables are being installed between
Modern Terminal and the U.S. CSI office in Hong Kong to
allow for the electronic transfer of this data. He told
Wong that another DHS team would be visiting Hong Kong this
week to review the Modern Terminal Project.


4. (SBU) Wong assured the CG that Hong Kong remains
committed to playing a constructive, cooperative role in
ensuring that trade into and out of Hong Kong is safe and
secure. Wong noted that the Port Security Legislation
included a provision for possible preferential treatment at
U.S. ports of cargo loaded at CSI-participating ports.
This would be important, and Hong Kong authorities have
made clear their hope that the U.S. government would
recognize Hong Kong's security efforts and offer
preferred treatment over goods from seaports not utilizing
the integrated security scanning measures. The CG said
that Hong Kong views on this point were clear, and noted
the conceptual nature of this portion of the Legislation
and that details were not yet available.


5. (SBU) Wong told the CG that the Hong Kong Government is
open to making Hong Kong one of DHS's three designated
integrated scanning system pilot sites. While the private
sector currently operates Hong Kong's ICIS pilot project,
Wong strongly suggested that it is time for formal Hong
Kong and U.S. government involvement. He requested that
the U.S. government provide information, briefings and
technical requirements for the integrated scanning systems
to Hong Kong government officials. Hong Kong officials
could then evaluate the integrated scanning systems, the
outstanding issues and move closer to agreeing on
implementing an official pilot project with the United
States. He said his government had organized itself to
have this discussion and would welcome it in the near
future. The CG responded that he would pass that message
to Washington.


6. (SBU) ACTION REQUEST. We understand from the DHS team
visiting Hong Kong October 19-20 that thinking has evolved
in Washington, pointing to an announcement mid to late
November on plans to implement the new legislation. We
also understand that Hong Kong is intended to be part of

HONG KONG 00004174 002 OF 002


Phase I. We need to consult with the government here as
soon as possible to both update it on our thinking on the
overall approach, and to discuss some of the technical
issues involved. Modern Terminals is unlikely to proceed
with participation in the pilot absent HKG involvement.
Post requests guidance on plans to implement the legislation
so that we can brief Wong the week of October 23 and the
dispatch of a team from Washington to describe the technical
issues and requirements as soon as possible thereafter.
Cunningham