HKG COMPLETES INTERNAL REVIEW OF SFI, READY TO

C O N F I D E N T I A L HONG KONG 004744 SIPDIS SIPDIS STATE PASS TO EAP/CM STATE PASS TO EB/TRA/OTP STATE PASS TO ISN/WMD, S/CT DHS FOR BRIAN WHITE/LAUREN ZUCKER DOE FOR DAVID HUIZENGA/TRACY MUSTIN E.O. 12958: DECL: 12/14/2026 TAGS: ASEC EWWT HK SUBJECT: HKG COMPLETES INTERNAL REVIEW OF SFI, READY TO COMMENCE DISCUSSIONS ON PARTICIPATION REF: A. HONG KONG 4659 ¶B. HONG KONG 4611 ¶C. HONG KONG 4569 Classified By: DPO Marlene Sakaue, reasons 1.4 b and d ¶1. (U) This is an action request, please see para 4. ¶2. (C) On December 14, Commerce, Industry, and Technology Bureau (CITB) Permanent Secretary Yvonne Choi provided an update on the HKG's review of possible limited participation in the USG's Secure Freight Initiative (SFI). Appreciating USG use of her government's preferred language in the December 7 SFI rollout, Choi told the DPO that the HKG has completed its assessment of the implications of limited HKG participation in SFI. The HKG stands ready to commence discussions with the USG to consider issues that have surfaced in this review. For the HKG, Joseph Lai Yee-tak -- just named to assume the post of Director-General of Trade and Industry (TID) on January 5 -- will lead the discussions. Choi envisions that officials from Customs, TID, and the Economic Development and Labour Bureau will participate. Lai's group will report to Choi's Task Force, and, if necessary, Choi will get involved in discussions of policy issues. Choi asked whether a USG team might be able to come to Hong Kong for discussions in January. ¶3. (C) Reiterating concerns she had outlined previously (refs b and c),Choi restated the HKG's need to discuss a number of issues touching on technical, legal, and jurisdictional matters, including questions about implementation. If both sides can satisfactorily resolve these problems, Choi believes the HKG will be able to participate, in a limited capacity, in SFI. She mentioned the scope of the scanning program; data segregation; data sharing (which in the HKG's view raises legal and jurisdictional issues); health concerns about truckers; and scanning technologies and equipment (e.g., technical issues that have arisen in the ICIS pilot project at Modern Terminals) as issues that require resolution. ¶4. (C) Action request: Post requests Washington agencies quickly identify and forward possible dates for USG - HKG discussions in January. Cunningham