HONG KONG TID ON SPECIALTY STEEL TO NK AND

S E C R E T HONG KONG 000575

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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 -

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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

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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


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