HONG KONG PREVIEWS OBJECTIVES FOR DC EXPORT

S E C R E T HONG KONG 002204

SIPDIS

STATE FOR EAP/CM
STATE ALSO FOR ISN/CATR AND ISN/MTR
USDOC FOR OEA

E.O. 12958: DECL: 12/03/2034
TAGS: PREL PARM ETTC MASS MNUC KSCA IR HK
SUBJECT: HONG KONG PREVIEWS OBJECTIVES FOR DC EXPORT
CONTROL MEETINGS AND GIVES CASES UPDATE

REF: A. HONG KONG 1595

B. HONG KONG 1521

C. HONG KONG 1523

D. STATE 82250

E. STATE 84103

Classified By: Acting Consul General Christopher Marut, Reason 1.4(b),
(c),and (d).


1. (C) The Hong Kong Government's Billy Au (Head of Strategic
Trade Controls, Trade and Industry Department) told us
December 3 that Hong Kong had two principal objectives for
the December 7-8 Interagency Meeting on Strategic Trade
Controls in Washington: (1) to discuss the problem of illicit
transshipments through Hong Kong and (2) to ascertain how
proposed U.S. export control reform would affect Hong Kong.


2. (C) Hong Kong hopes to engage us on ways jointly to tackle
the illicit transshipments issue. Acknowledging that "a few
rogue actors" had abused Hong Kong's open trade system, Au
questioned the recent conclusions of the U.S.-China Economic
and Security Commission report, adding that the Hong Kong
Customs and Excise Department (HKCED) was sufficiently
staffed for strategic trade enforcement. The HKG delegation
plans to showcase its successes during next week's meetings
and will be seeking greater cooperation and intelligence
sharing with the U.S.


3. (S) Au also updated us on investigations of Hong Kong firm
Precision Devices Limited, Malaysia-based Elite Advanced
Solutions, and Oceanemed Holding Limited of Hong Kong (refs D
and E ). HKCED concluded that there was no evidence Hong
Kong-based Precision Devices Limited infringed Hong Kong law
or transacted at any time with Malaysia-based Elite Advanced
Solutions (an Iranian front company). HKCED has therefore
closed its investigation of Precision Devices Limited.


4. (S) Au reported that Oceanemed Holding Limited of Hong
Kong was de-registered and dissolved in January. HKCED
visited Oceanemed Holding's last known address and verified
that other entities now occupied the premises. HKCED
concluded Oceanemed had ceased its Hong Kong operations and
will close its investigation. Au agreed to provide a list of
company directors, if available, and to pursue additional USG
investigative leads if provided.

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Comment
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5. (S) It's unclear whether Au's statement is correct;
however, other classified reports have indicated Oceanemed's
owner operates companies out of Hong Kong that have variants
on the name "Oceanemed."
MARUT