HONG KONG COMMITTED TO COOPERATION POST-SFI PILOT

UNCLAS HONG KONG 001460

SIPDIS
SENSITIVE

STATE FOR EAP/CM; DHS FOR SFI DINUCCI

E.O. 12958: N/A
TAGS: ETRD PREL HK GB OM EWWT
SUBJECT: HONG KONG COMMITTED TO COOPERATION POST-SFI PILOT


1. (U) This message is Sensitive but Unclassified. Not for
Internet Distribution.


2. (SBU) Hong Kong Trade and Industry Department (HK TID)
Deputy Director General Vivian Lau told Department of
Homeland Security (DHS) Secure Freight Initiative Director
Rich DiNucci on July 23 that Hong Kong remains committed to
cooperation with the United States on trade security and
export controls. She stressed that the successful completion
of the Secure Freight Initiative (SFI) pilot program at
Modern Terminal should not be interpreted as Hong Kong's
backing away from its partnership with the U.S. on these and
other issues. Lau said she had seen a recent statement by
DHS Secretary Napolitano that incorrectly asserted that Hong
Kong had withdrawn from the SFI program. DiNucci assured her
that the U.S. shares her regard for our partnership with Hong
Kong and looks forward to continued cooperation on issues of
mutual concern. He promised to speak to Secretary
Napolitano's staff to clarify any misunderstandings.


3. (SBU) DiNucci outlined DHS plans to focus SFI
implementation efforts first on strategic ports. He noted
that the requirements of the SAFE Ports Act for 100 percent
scanning of U.S. bound cargo currently appear unlikely to be
amended, but acknowledged that it will not be possible to
meet the 2012 implementation target. DHS has learned much
from its implementation efforts in Southampton, Salalah, Hong
Kong and other SFI venues and will continue to work to ensure
that the SFI program not only increases security, but also
facilitates trade.


4. (SBU) Lau noted that the SFI operation in Karachi,
Pakistan appeared to have real trade facilitation benefits
for shipments originating there, but that in a safe, high
volume port like Hong Kong, the trade facilitation benefits
are less clear. Of the more than 20,000 containers scanned
in the SFI pilot program in Hong Kong, less than one percent
triggered an alarm and all of these were able to be resolved
without finding any radioactive materials or weapons
components. Yet the containers scanned in Hong Kong were
inspected at roughly the same rate in U.S. ports as unscanned
containers. DiNucci agreed, and added that DHS would welcome
input from shippers about how SFI affected their operations
in Hong Kong and how it could be improved to provide
additional benefits to them.


5. (SBU) SFI Director DiNucci has seen and cleared this
message.
MARUT