HONG KONG TID ON SPECIALTY STEEL TO NK AND

S E C R E T HONG KONG 000575 SIPDIS STATE FOR EAP/CM NICODEMUS AND HIGGINS, INL FOR JONES E.O. 12958: DECL: 03/28/2018 TAGS: ETTC PARM PREL KN HK IR CH MTCRE SUBJECT: HONG KONG TID ON SPECIALTY STEEL TO NK AND ALUMINUM PLATES TO IRAN REF: A. 07 STATE 169640 ¶B. STATE 18091 ¶C. HONG KONG 382 Classified By: E/P Chief Laurent Charbonnet, Reasons 1.4 b, c, and d ¶1. (S) Econ Unit Chief met March 27 with Billy Au, Trade Officer at Hong Kong Trade and Industry Department (HK TID) to hear an update on Hong Kong investigations of B & F International (suspected of shipping Ti-DSS to North Korea (ref A)) and Hong Kong Most Group (suspected of selling aluminum plates to an Iranian entity (ref b)). Although B&F was incorporated in 2005 and Hong Kong Most Group was incorporated in 2006, there is no evidence to demonstrate any commercial activity in Hong Kong since that time. ¶2. (S) According to Au, Hong Kong Customs and Excise (HKCE) has no record of either of these companies conducting any trading business in Hong Kong nor is there a record of either of the reftel shipments passing through Hong Kong. Investigations by HKCE officers reveal that both companies have no physical premises in Hong Kong. Instead, their registered addresses are the premises of two separate secretarial companies. (NOTE: this is not uncommon in HK - SIPDIS many companies register in Hong Kong to take advantage of beneficial tax and other treatment). Messages left with the secretarial companies for the Directors of B&F and Hong Kong SIPDIS Most Group have gone unanswered. According to HK TID, sale or transfer of both of the items listed in the reftels may violate Hong Kong Strategic Commodities regulations, although it is difficult to confirm without technical specifics. ¶3. (C) The Director of B&F International Group Holdings Ltd. is listed as Zhai GANG. HK Customs and Excise tried to locate this individual in Hong Kong but was unsuccessful. It appears s/he does not reside in HK. The name does not appear to be a Cantonese name and is typical of a mainland Chinese name. HK Customs was unable to find immigration records for this individual. ¶4. (C) The Director of Hong Kong Most Group Company Ltd. is listed as Ji Ze SHUANG. HK Customs and Excise also tried to locate this individual in Hong Kong but was unsuccessful. It appears s/he does not reside in HK. The name also does not appear to be a Cantonese name and is typical of a mainland Chinese name. HK Customs was unable to find immigration records for this individual. ¶5. (S) Au said HK TID is eager to work closely with HKCE to pursue these cases and requests that we share additional information with them regarding the specific timing of the sale or transfer, the means of delivery, and any additional information we may have or obtain about these companies or individuals connected to these companies that may be useful in an investigation. Cunningham NNNN End Cable Text