Staffdel Nelson's Meetings on Melamine in Hong Kong

UNCLAS SECTION 01 OF 02 HONG KONG 002307 TOFAS 15 SIPDIS STATE FOR EAP/CM, STATE PASS CPSC RICHARD O'BRIEN E.O. 12958: N/A TAGS: ECON EFIN EINV ETRD HK SUBJECT: Staffdel Nelson's Meetings on Melamine in Hong Kong Ref: Hong Kong 2211 ¶1. Summary: A U.S. House of Representatives staff delegation from the Energy and Commerce Committee traveled to Hong Kong in early December to investigate melamine contamination in Chinese food products. The U.S. Consulate General arranged meetings with Hong Kong government (HKG) officials, legislative councilors, food manufacturing and retailing representatives, and with officials from other consulates general affected by the melamine issue. From groups and individuals, the Staffdel heard nearly unanimous praise for the HKG's response to the problem, including its rapid establishment of a technically justifiable tolerance level of 1 part per million (ppm). Interlocutors agreed that Beijing is serious about food safety but may lack the institutional capability to ensure compliance throughout the country. They said the mainland's practice of maintaining stricter food safety standards for exported versus domestically consumed foods presents serious enforcement issues for manufacturers and food inspectors. End Summary. HKG's Response to Melamine Contamination -------------- ¶2. House Energy and Commerce Committee Senior Investigator David Nelson and Investigative Counsel Krista Rosenthall met with Deputy Secretary for Food and Health Olivia Nip, Government Chemist Dr. T. ¶L. Ting, Assistant Director of the Food and Environmental Hygiene Department Dr. S. Y. Lee, and Assistant Secretary of the Food and Health Bureau James Chan, to better understand how the HKG handled the discovery of melamine in Chinese dairy products and animal feed. The HKG swiftly responded to public health concerns by introducing a series of measures, including setting a melamine standard for food, vigorously testing a wide range of food categories, and proposing legal amendments to allow mandatory food recalls. ¶3. Nip noted that the HKG referred to tolerable daily intake standards of selected countries, including the US, in setting Hong Kong's maximum standard for melamine in food (2.5 ppm) and infant products (1 ppm). With the establishment of such a standard, the Center for Food Safety is legally able to prosecute any violations. ¶4. According to Dr. Ting, there are 10 laboratories in Hong Kong approved to test for melamine concentration in food. The testing methods used are based on those adopted by the U.S. Food and Drug Administration. Dr. Ting indicated that based on extensive testing since the outbreak, the HKG believes that melamine contamination is now fully under control. Legislators Praise HKG Response, This Time -------------- ¶5. The Staffdel met separately with Legislator Fred Li, Chairman of the Panel on Food Safety and Environmental Hygiene, and Legislator Tommy Cheung, a member of the Liberal Party who represents the catering constituency. Li commented that the HKG has generally tried to avoid unnecessarily embarrassing Beijing government in its handling of food incidents, and suggested that the HKG could generally do a better job as a gatekeeper for food safety in Hong Kong. Monitoring the food supply from China is a huge challenge for the HKG, but he praised the HKG's handling of melamine concerns. Li expected that the proposed mandatory food recall authority for FEHD will be passed by the Legislative Council with some manageable amendments. ¶6. Li indicated that his panel may plan a fact-finding mission to the U.S. to learn about the U.S. food regulatory system. The Consulate's ATO Director offered to help arrange meetings and visits to various food regulatory agencies if such a trip were to take place. ¶7. Tommy Cheung of the Liberal (pro-business) Party said that there was little more the HKG could do to address public concerns about melamine. He said the new HKG standard will increase the cost burden on the trade, but may not protect consumers very well. The problem could be solved effectively only at the source, he said. Given Hong Kong's immense reliance on food from China, it is impossible for Hong Kong to send inspectors up to China to fully monitor the food supply. While he believed Beijing is determined to solve the melamine issue, Cheung said this may take one year's time given the large size of the Chinese food industry. ¶8. Cheung also touched on nutrition labeling. He said Consulate HONG KONG 00002307 002 OF 002 General representatives should avail themselves of every opportunity to raise their concern over the impending Hong Kong nutrition labeling requirements to senior government officials, including the Chief Executive, Chief Secretary and Financial Secretary. Industry Reps Worry About the Next Crisis -------------- ¶9. In an industry round-table discussion, the Staffdel gained insight into how a variety of importers, manufacturers, and retailers in Hong Kong are dealing with the threat of melamine contamination. Milk processors have already set up facilities for in-house melamine testing, while major retailers are taking proactive steps to ensure their products comply with Hong Kong's new melamine standard. Products containing any milk ingredients and/or milk derivatives sourced from China must provide an independent laboratory report on melamine concentration for every production lot. This measure also applies to eggs exported from China and to any other products that have been confirmed as exceeding the Hong Kong melamine standard. ¶10. Industry representatives unanimously agreed that the HKG reacted swiftly and responsibly to the crisis. They applauded the HKG's setting a melamine tolerance level slightly above zero, thus allowing for unavoidable leaching of trace amounts of melamine into food from approved packaging materials. Industry's biggest concern is no longer melamine but rather the next food scare resulting from a Chinese manufacturer's use of a prohibited chemical. They noted weaknesses in the effectiveness and capacity of mainland regulatory institutions, especially at the local level, and said commercial and food safety challenges are exacerbated by the mainland maintaining different standards for exported versus domestically consumed foods. Diplomatic Reps Worry about Chinese Capacity -------------- ¶11. At a breakfast hosted by the ATO, diplomatic representatives from major food exporting countries agreed that Hong Kong's reaction and resulting standard was swift and reasonable. They also agreed that setting a "zero tolerance" for melamine was impractical and unnecessary given the sensitivity of modern instruments and available information on the impact of trace amounts of melamine on human health. They complained that China has yet to demonstrate the institutional capacity to consistently enforce its food safety laws at the local level, noting that the mainland's reputation was damaged by the failure to disclose the melamine problem until after the Beijing Olympics. They agreed that sound enforcement will remain a problem as long as China maintains higher safety standards on food for export than it does for domestically consumed food. ¶12. Staffdel Nelson did not have an opportunity to clear this cable. MARUT