EXTRANCHECK: PRE-LICENSE CHECK: HONG KONG POLYTECHNIC

UNCLAS HONG KONG 000467 SIPDIS USDOC FOR 532/OEA/LHINES/ADYSON USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS SIPDIS E.O. 12958: N/A TAGS: BMGT BEXP HK ETRD ETTC SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: HONG KONG POLYTECHNIC UNIVERSITY REF: A) USDOC 01119 B) D390895 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12C of the Export Administration Act. ¶2. As per reftel A request and at the direction of the Office of Enforcement Analysis (OEA) of the USDOC Bureau of Industry and Security (BIS),Export Control Officer Philip Ankel (ECO) conducted a pre-license check at the Hong Kong Polytechnic University's Advance Optics Manufacturing Centre, Yuk Choi Road, Hung Hom, Kowloon, Hong Kong (Optics Centre). The purpose of the visit was to determine the suitability of the Optics Centre to be a recipient of a four axis ultra-precision machine that is the subject of export license application D390895. The item (Export Control Classification Number 2B001) is valued at USD $512,400 and is controlled for national security (NS) and nuclear nonproliferation reasons (NP). The license applicant is Sackman Associates of Sudbury, Massachusetts. ¶3. Formerly known as Hong Kong Polytechnic, the Hong Kong Polytechnic University achieved full university status in 1994. It has over 2700 staff and close to 13,000 students. ¶4. The Optics Centre is based in the Department of Industrial and System Engineering of the University. It is supported by a grant from the Innovation Technology Fund of the Hong Kong Government. According to the Optics Centre's web site (www.ise.polyu.edu.hk/umc),it is the first of its kind in Hong Kong to engage in the promotion and application of ultra-precision machining technology for the precision mould and optics industries. The main emphasis of the Optics Centre's activities is on providing services in consultancy, contract research and manpower training. Its service areas include freeform and aspheric optics design, prototype manufacture, precision mould design and manufacturing, injection molding of plastic optics, surface quality evaluation, and technology promotion. ¶5. On February 29, 2008, ECO and Commercial Assistant Carrie Chan visited the Optics Centre at the address listed above and met with Mr. Ka Chun Cheung and Dr. Sandy To, Assistant Professor and Manager of the Optics Centre. Mr. Cheung initially gave the ECO and Commercial Assistant Chan a tour of the facility, located on the campus of the University. He stated that the Optics Centre focuses on various aspects of the production of glass and plastic lenses for various commercial applications. The Optics Centre produces both the lenses and moulds for applications such as lenses for DVD players, cameras, laser scanners and similar applications. A current major project on behalf of the University's Electronics Department involves the development of automotive lights. Mr. Cheung stated that most of the Optics Centre's customers are located in Hong Kong although some are located in mainland China. Mr. Cheung stated that most of its projects on behalf of mainland clients are commercial/civil in nature. Some visiting students and researchers who work with the machines are from southern mainland China (as might be expected given the significant manufacturing base in the applicable industry centers located there). ¶6. During Mr. Cheung's tour of the Optics Centre (which comprises roughly 8-10 rooms),Mr. Cheung showed the ECO a range of high precision machines acquired by the Optics Centre from various vendors including: a Zeeko IRP-200 7-axis polishing machine used in the production of biomedical implants; a Zygo Laser Interferometric Non-contact Profiler system used to measure surface roughness, a Wyko NT 8000 three dimensional measuring system manufactured by VEECO, a Freeform 705G 5-axis Ultra-precision machine),among others. ¶7. Dr. Sandy To, Manager of the Optics Centre joined the group at the conclusion of the tour. She stressed that the Optics Centre is keen to receive the item and understands the basis for the license requirement. She stated that the Optics Centre would comply with any license conditions and noted that the Optics Centre had been glad to host a prior visit by Consular staff when the Optics Centre had ordered one of its previous machines. ¶8. At the time visited, the Optics Centre appeared to be a suitable recipient of the subject controlled item since it cooperated fully with the PLC and provided information on Optics Centre's proposed use of the item in Hong Kong. Cunningham