NEW COMMERCE SECRETARY ON IPR, PORT SECURITY, AND

C O N F I D E N T I A L SECTION 01 OF 02 HONG KONG 000925

SIPDIS

SIPDIS

STATE FOR EAP/CM AND EB/IPC
STATE PASS USTR
USDOC FOR 4420

E.O. 12958: DECL: 03/07/2031
TAGS: PGOV KIPR ETRD ECON INRB HK
SUBJECT: NEW COMMERCE SECRETARY ON IPR, PORT SECURITY, AND
BROADCASTING ISSUES

REF: HONG KONG 715

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

SUMMARY
--------------


1. (C) On March 3, Hong Kong's new Secretary for Commerce,
Industry, and Technology (SCIT),Joseph Wong, assured the
Consul General (CG) that: Hong Kong would aim to remain among
the "top layer" of economies with regard to the protection of
intellectual property rights (IPR); that Hong Kong values
port security and welcomes the opportunity to consider
radiological screening options put forward by the U.S.; and
that current activities to review public broadcasting involve
"no hidden agenda" that would impact upon freedom of speech.
END SUMMARY

MEETING DETAILS
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2. (C) On March 3, SCIT Wong, who assumed his position on
January 24, met with the CG. Wong was accompanied by
Administrative Assistant Maurice Loo Kam-wah. The CG was
joined by the Deputy Principal Officer, the
Economic-Political Section Chief, and an economic officer
(notetaker).

COLLABORATIVE RELATIONSHIP
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3. (C) The CG noted recent areas of collaboration between
Hong Kong and the U.S. that fall under Wong's jurisdiction.
He observed that Hong Kong's December 2005 hosting of the
Sixth World Trade Organization Ministerial Conference (MC6)
went smoothly and asked that Hong Kong remain involved in
concluding the Doha Round while doing what it can to
encourage active participation by the mainland in this
process. The CG referenced the history of bilateral
cooperation between Hong Kong and the U.S. on export control
issues, noting bilateral talks scheduled for this May. He
also referred to the Memorandum of Understanding concluded
between Hong Kong and the U.S. in August 2005 that enables
bilateral cooperation to ensure the integrity of textile
transshipments.

WTO VIEWS
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4. (C) Wong underscored the importance of multilateral trade
arrangements for maintaining the prosperity of economies like
Hong Kong that are focused on foreign trade. He suggested
that once Doha is concluded, the WTO should examine ways to
make itself more effective, since it presently takes 7-10
years to complete a negotiation round. Noting that the U.S.
and Hong Kong do not always see eye-to-eye on issues such as
anti-dumping, Wong emphasized that it is important to improve
the WTO's rules so as to ensure that market access agreements
reached are not frustrated by implementing procedures.

INTELLECTUAL PROPERTY RIGHTS
--------------


5. (C) The CG mentioned Hong Kong's strong record for IPR
protection, adding that we intend to focus in particular over
the next year on amendments to the Copyright Law as well as
on maintaining the integrity of the local market for
pharmaceuticals. He noted the importance to industry of the
Copyright Law amendments in light of high rates of unlicensed
and pirated software use in Hong Kong. He pointed to
sentiment among industry groups to have Hong Kong cited for
"special mention" under USTR's 301 process, adding that we
want to work with Hong Kong to resolve the issues
underpinning these concerns. On pharmaceuticals, the CG said
that the U.S. would like to see patent linkage, i.e., a
process of certification from manufacturers of generic drugs
that they are not imposing upon existing rights-holders when
registering those drugs. The CG also mentioned reports of
increasing volumes of counterfeit pharmaceuticals in the
local market, underscoring the need to ensure the integrity
of the drug supply.


6. (C) Wong commented that Hong Kong's IPR record is both a
key element of the city remaining a center for international
trade as well as a source of distinction from the mainland.
There is a high degree of confidence in purchases made here
relative to the PRC. Hong Kong needs its good status to

HONG KONG 00000925 002 OF 002


continue attracting foreign businesses and investors. IPR
protection, however, can be emotive. IP owners want more
payments, while IP users and consumer rights groups resist.
Wong's impression is that the scope of IPR protection in Hong
Kong is expanding. For example, there are now criminal
offenses for printed matter violations. Wong admitted,
however, that some proposed amendments to the Copyright Law
reflect the interests of consumers, small- and medium-sized
enterprises, and educators, and the HKG must take this into
account. Consequently, there is a need for certain
exemptions and safe harbor provisions. The HKG will package
its proposed Copyright Law amendments for the legislature
(Legco) within the next two months. Wong predicted
tremendous debate, with many interest groups giving input.
(Note: For details on concerns about the Copyright Law
amendments, see our 301 submission (reftel). End Note.)


7. (C) Wong welcomes further discussion and consultation if
particular provisions in the proposed amendments are of
concern. He also asked for more information on how the U.S.
handles these issues. In particular, Wong wants to know if
what the HKG proposes is along the lines of other economies
that are in the "top layer" of IPR protection. (Note: We
will forward the proposed amendments to EAP/CM and USTR when
they are put forward. End Note.) Wong added that Hong Kong
Customs is doing very well in enforcing IPR protections and
has very good relations with its U.S. counterparts.
Meanwhile, the HKG is challenged on the regulatory side as it
chases down advances in online piracy, an issue that requires
further collaboration among affected economies, in Wong's
view.

PORT SECURITY
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8. (C) The CG noted Hong Kong's success as a partner since
2003 in the Container Security Initiative. He encouraged
Hong Kong to build upon this by extending our collaboration
to radiological screening. He pointed to DOE's Megaports
initiative, and noted that a separate screening process is
being demonstrated at the Hong Kong port by a private U.S.
company. The CG said he hopes we can take a radiological
screening option forward in the coming months. Wong
responded that as a general matter, Hong Kong believes in the
importance of improving security all around. The HKG
welcomes the opportunity to review the radiological screening
options and will proceed with assessing their implications.

PUBLIC BROADCASTING
--------------


9. (C) Wong said there is "no hidden agenda" in an ongoing
review of public service broadcasting. The goal is for
experts to look at overseas models -- including those found
in the U.S., UK, Canada, and Australia -- to assess how best
to deliver what the community wants and needs from public
broadcasting. Wong said this is not about freedom of speech,
which is in the Basic Law and is sacrosanct. Nor is it about
the editorial independence of Radio Television Hong Kong
(RTHK),which is enshrined in RTHK's existing framework
agreement.

BIOGRAPHY
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10. (U) The following is derived from public HKG sources:
Joseph Wong Wing-ping was appointed on January 24 to be Hong
Kong's Secretary for Commerce, Industry, and Technology.
Aged 57, Wong graduated from the University of Hong Kong in

1969. He joined the Administrative Service in 1973 and has
since served in a wide range of government posts. Senior
positions held by Mr. Wong include assistant and later Deputy
Director of Trade from 1984 to 1987; Deputy Secretary for the
Civil Service from 1988 to 1989; Deputy Secretary for Trade
and Industry from 1989 to 1991; Hong Kong's Permanent
Representative to GATT (now the World Trade Organization)
from 1991 to 1994; and Director of Home Affairs from 1994 to

1995. He became Secretary for Education and Manpower in

1995. He took up the post of Secretary for the Civil Service
in August 2000.
Cunningham