HK OFFICIALS TELL DEPUTY SECRETARY OF CONTINUED

C O N F I D E N T I A L SECTION 01 OF 02 HONG KONG 001727

SIPDIS

STATE FOR D
STATE FOR EAP/CM
STATE FOR EB/TRA/OTP
STATE FOR ISN/WMD, S/CT
DHS FOR RICHARD DI NUCCI
DOE FOR DAVID HUIZENGA

E.O. 12958: DECL: 09/17/2018
TAGS: ASEC ECON EWWT PREL ETRD HK
SUBJECT: HK OFFICIALS TELL DEPUTY SECRETARY OF CONTINUED
HKG SUPPORT FOR SECURE FREIGHT INITIATIVE

REF: 07 HONG KONG 2134

Classified By: Consul General Joseph Donovan for reasons 1.4 (b) and (d
).


1. (C) Summary: The Deputy Secretary visited Hong Kong,s
container port and discussed the Container Security
Initiative (CSI) and Secure Freight Initiative (SFI) programs
with U.S. Customs and Border Protection (CBP)
representatives, HKG officials and a major container port
terminal operator on September 17. The Deputy Commissioner
of Hong Kong,s Customs and Excise Department (HKC&ED)
reiterated the HKG,s support for the SFI program until the
HK pilot period ends in April 2009, with broad-based
cooperation on non-proliferation efforts expected to continue
thereafter. The Deputy Commissioner told the Deputy
Secretary that cooperation remained excellent between HKC&ED
officers and USG security officials at the port. The Deputy
Secretary examined real-time threat assessments conducted by
CSI targeting officers using the Automated Targeting System
(ATS) for shipments bound for the United States. He
emphasized the importance of programs like CSI and SFI as
crucial counterterrorism measures. End Summary.

===========================
Background on HK Port Visit
===========================


2. (C) The Deputy Secretary received an overview on September
17 of the multi-faceted SFI pilot program underway since
November 2007 at Hong Kong,s Kwai Chung container port.
Sean Kelly, CEO of Modern Terminals Ltd. (MTL),explained his
company,s involvement in the SFI program. MTL is the second
largest terminal operating company at Hong Kong,s port --
currently the largest of four foreign ports scanning
U.S.-bound containers under the SFI program. The Hong Kong
port ranks third in terms of U.S.-bound shipments of goods,
and the HKG was among the first in the world to help
implement the CSI program, designed to detect containers that
may be carrying Weapons of Mass Destruction (WMD) or their
components.


3. (C) The SFI pilot program in Hong Kong builds upon
existing port security measures already in place at MTL, such
as CSI and the fully integrated non-intrusive inspection
(NII) technology of the Integrated Container Inspection
System (ICIS). SFI enhances the USG,s ability to scan
containers for nuclear and radiological materials. This
capability intensifies ongoing CSI activities by combining
the SFI data with other available risk assessment information
to improve risk analysis, targeting and security of high-risk
containers overseas. The SFI pilot was launched in November
2007 in Hong Kong and extended by mutual consent with the HKG
through April 2009. Thus far, no U.S.-bound container
scanned using SFI equipment in HK has been found to contain
radiological materials usable in a WMD.

============================================= ==
Collection/Dissemination of Cargo Scanning Data
============================================= ==


4. (C) The Deputy Secretary viewed the ICIS lane that
examines outbound containers using an array of inspection
technology, as well as the ICIS Control Room that imports and
integrates all the data derived from those components.
Radiation Portal Monitor (RPM),Optical Character Recognition
(OCR) and Vehicle and Container Inspection System (VACIS)
image data gathered on containers bound for the United States
is encrypted and transmitted simultaneously from the ICIS
Control Room to HKC&ED, on-site U.S. Customs and Border
Patrol (CBP) officers at the port, and the DHS/CBP National
Targeting Center-Cargo (NTCC). The data allows HKG and USG
security officials to better identify high risk containers.
Once identified as high risk, HKC&ED officials use hand-held
measurement devices to more closely inspect the container and
physically search its contents, if necessary, under the
observation of HK-based CSI officials from the United States.
Thus far, no containers have required a physical search in
HK, based on data derived under the SFI pilot program.

====================================

HONG KONG 00001727 002 OF 002


HKG Continues to Support SFI Efforts
====================================


5. (C) The Deputy Commissioner of HKC&ED, Luke Au-Yeung,
briefed the Deputy Secretary about his department,s active
participation in the SFI pilot program. Echoing comments
from HKG port security officials to Senator Lieberman during
his visit to the port in August 2007 (reftel),Au-Yeung
emphasized the HKG's support for the SFI pilot program. He
said, "So far, implementation of SFI has not affected the
operating capacity of the port." Au-Yeung described the
cooperation between HKC&ED and USG officials at the port as
"very good and very smooth."


6. (C) The Deputy Secretary viewed the SFI Central Alarm
Station used by HKC&ED officials to assess data from the
previously described ICIS Control Room. With the exception
of two desktop computers provided by the USG, all costs to
establish the Alarm Station were borne by the HKC&ED.

============================================= ======
USG Targeting System Identifies High Risk Shipments
============================================= ======


7. (C) Alex Ho, Acting CSI Team Leader, briefed the Deputy
Secretary about how CBP,s Automated Targeting System (ATS)
in Hong Kong combines on-site SFI scanning data with
information from other USG systems and sources. The ATS
integrates all known information about a given shipment and
is used as the primary tool by CBP-CSI targeting officers to
assess the shipment,s potential risk. The system is fully
automated and allows CBP officials at the port to identify
and focus their attention on potential high risk shipments
bound for the United States. The Deputy Secretary praised
the CSI and SFI programs as crucial counterterrorism measures.


8. (U) September 17, 2008; 16:30; Hong Kong.


9. (U) Hong Kong Port Visit Participants:

United States
Deputy Secretary Negroponte
Deputy Assistant Secretary John Norris
Kaye Lee, Special Assistant
Ted Wittenstein, Special Assistant
Consul General Joseph Donovan
Richard Powell, CBP Attach
Benjamin Weber, Control Officer
Jeff Hilsgen, Economic Officer (notetaker)

Hong Kong
Luke Au-Yeung, Deputy Commissioner, HKC&ED
Albert Chan, Head of Ports and Maritime Command, HKC&ED
Kwong Chow, Assistant Commissioner (Boundary and Ports),
HKC&ED
H C Liu, Group Head (Ports Control),HKC&ED
Ying-ho Lam, Divisional Commander, Liaison Bureau, HKC&ED

Modern Terminals Ltd
Sean Kelly, Chief Executive Officer
Anders Dommestrup, Chief Operating Officer
Benjamin Lai, General Manager, Operations
Christen Ho Ka Nam, Security Executive
DONOVAN