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. -------------- Comment -------------- ¶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