CONSUL GENERAL'S FAREWELL CALL ON CHIEF SECRETARY

UNCLAS SECTION 01 OF 02 HONG KONG 001318

SENSITIVE
SIPDIS

STATE FOR EAP/CM, STATE PASS USTR FOR ALTBACH

E.O. 12958: N/A
TAGS: PGOV PREL ECON ETRD EAGR HK
SUBJECT: CONSUL GENERAL'S FAREWELL CALL ON CHIEF SECRETARY
TANG


1. (SBU) Summary: During the Consul General's Farewell call
July 16, Hong Kong Chief Secretary for Administration Henry
Tang thanked the United States for our cooperation on a
variety of issues and noted that Hong Kong's close
relationship with the United States is based on our shared
respect for human rights and freedoms. Tang was sanguine
about the recent announcement that the Hong Kong courts would
hear arguments about the Legislative Council's power to call
witnesses before special committees. He assured the Consul
General that Hong Kong is very serious about addressing
trafficking in persons (TIP) and stressed the importance of
early and regular dialogue. In response to U.S. concerns
about the implementation of the Nutrition Labeling law, Tang
promised to remind the Food and Health Bureau of the
importance of this issue and suggested Hong Kong would show
some flexibility to ensure the registration and approval
process goes smoothly. Abolishing the duty on wine and beer
has turned Hong Kong into a center for wine trade and the
city may surpass London to become the world's second largest
wine auction venue this year, said Tang. End summary.


2. (SBU) The Consul General paid his farewell call on Chief
Secretary for Administration Henry Tang July 16. He thanked
Tang for the close cooperation between our governments over
the past year, particularly on law enforcement-related
issues. Tang agreed and noted that one strength of the
bilateral relationship was the willingness of both sides to
appreciate the position of the other and back off when things
get too sensitive. He added that Hong Kong people and
Americans share similar values: respect for human rights,
freedom of expression and the desire to take advantage of
opportunities.

HKG Officials Like Testifying Before LegCo
==========================================


3. (U) The Consul General noted the recent announcement that
the Hong Kong courts would hear arguments about the LegCo's
power to call witnesses to testify before special committees.
Tang replied that government officials regularly appear
before LegCo, know how to prepare and don't mind fulfilling
this obligation. The appointment of political
Undersecretaries in 2007 has been helpful, said Tang, in
spreading the demands of testifying among more people and has
freed other senior leaders to focus on other tasks.

Getting Nutrition Labeling Right
================================


4. (SBU) The CG also raised U.S. concerns over Hong Kong,s
plans to implement nutrition labeling legislation in July

2010. More than half of the 65,000 food products imported by
Hong Kong will qualify for Small Volume Exemptions to the
labeling law. Retailers believe the registration process
must begin no later than December to allow them the
confidence to place orders for new products that will not be
forced off the shelves when the law takes effect. Retailers
are also concerned that the process for calculating whether
an item breeches the 30,000 unit "Small Volume" threshold.
The Consul General noted that Hong Kong is the U.S.'s fifth
largest market for manufactured food products, and we are
watching closely Hong Kong's plans for implementing the new
law. Tang promised to relay the Consul General's concerns to
the Hong Kong Food and Health Bureau and to remind them of
the importance of getting this right. If the registration
and implementation dates cannot be adjusted, said Tang,
perhaps there are other ways to work around any problems.


5. (U) One of Hong Kong's successes over the past year has
been its decision to abolish the excise tax on wine. The
Consul General observed that Hong Kong is quickly becoming a
center for wine trading. Tang replied that Hong Kong's wine
imports are up 80 percent over the past year. He predicted
Hong Kong would become the world's second largest wine
auction site this year, surpassing London and behind only New
York. Abolishing the wine tax has already boosted economic
activity and created new jobs, and will ultimately increase
Hong Kong,s tax revenues, said Tang.

Early TIP Dialogue Important
============================


6. (SBU) The Consul General noted that Trafficking in
Persons (TIP) is a global problem. He thanked the Hong Kong
government, and particularly the Hong Kong Immigration
Department, for their cooperation on this important issue.

HONG KONG 00001318 002 OF 002


Tang assured the CG that the Hong Kong government takes TIP
allegations very seriously and stressed the importance of
early and regular dialogue on TIP-related concerns.
DONOVAN