EXTRANCHECK: PRE LICENSE CHECK: CASTLE PEAK POWER COMPANY

UNCLAS HONG KONG 000320 USDOC FOR 532/OEA/MNICKSON/ADYSON USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR PATRICK SANTILLO BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS SIPDIS E.O. 12958: N/A TAGS: BMGT BEXP HK ETRD ETTC SUBJECT: EXTRANCHECK: PRE LICENSE CHECK: CASTLE PEAK POWER COMPANY REF: A) USDOC 00088 B) D409723 1.Unauthorized disclosure of the information provided below is prohibited by Section 12C of the Export Administration Act. ¶2. As per reftel A request and at the direction of the Office of Enforcement Analysis (OEA) of the USDOC Bureau of Industry and Security (BIS),Export Control Officer Philip Ankel (ECO) conducted a pre license check (PLC) at Castle Peak Power Company, 147 Argyle Street, Kowloon, Hong Kong (Castle Peak). The items in question are various gate valves and parts classified under export control classification number (ECCN) 2B350 and controlled for chemical and biological weapons reasons (CB). ITT Industries of Amory Massachusetts is the license applicant for these items (BIS license application number D409723). ¶3. Castle Peak is one of Hong Kong's electric utility companies. It provides electricity to approximately seventy percent of Hong Kong's population. More information is available at www.clpgroup.com. ¶4. On January 20, 2009, ECO visited Cable Peak and met with Hon Sun Lee, Senior Project Engineer, Emission Control Project, CLP Power Hong Kong Limited and Mr. Zhang, Shu Wen, Manager of the Procurement Department of Wuhan Kaidi Electric Power Environmental Co., Ltd. Mr. Lee provided background on Castle Peak's flue gas desulphurization plant project consistent with the information provided in reftel A. He also introduced Mr. Zhang, who is the representative of Wuhan Kaidi Electric Power Company. That company was awarded the engineering procurement and construction contract to build the desulphurization plant. The valves and valve parts will be used in the building project and Mr. Zhang and Mr. Lee confirmed that the valves and parts will be used only in this project in Hong Kong and will not be shipped to mainland China. ¶5. Based on the information noted above, ECO believes Castle Peak is a suitable recipient of U.S. origin controlled technology.