VZCZCXRO5452
PP RUEHCN RUEHGH RUEHVC
DE RUEHHK #4174/01 2930948
ZNR UUUUU ZZH
P 200948Z OCT 06
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 9160
INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY
RUEHIN/AIT TAIPEI PRIORITY 4163
RHEGGTN/DEPT OF ENERGY GERMANTOWN MD PRIORITY
RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 HONG KONG 004174 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM 
STATE FOR EB/TRA/OTP DAYTON/MILLER 
STATE FOR ISN LEHRMAN/INGRAM 
STATE FOR EAP/EX CHRISTENSEN 
DOE/NNSA FOR HUIZENGA/MUSTIN 
DHS/CBP FOR FUJIMORA 
 
E.O. 12958: N/A 
TAGS: ECON EWWT HK PREL
SUBJECT: CG CUNNINGHAM DISCUSSES U.S. PORT SECURITY 
LEGISLATION WITH CITB SECRETARY WONG 
 
REF: HONG KONG 2650 
 
 ¶1.  (U) This is an action cable, please see paragraph 6. 
 
¶2.  (SBU) In an October 18 meeting, Consul General James 
Cunningham informed Secretary of Commerce, Industry and 
Technology Joseph Wong that on October 13 President Bush 
signed into law Port Security Legislation that requires the 
Department of Homeland Security (DHS) to designate within 
ninety days three foreign seaports for the establishment of 
pilot integrated container scanning systems along the lines 
Hong Kong terminal operators have been experimenting with. 
The legislation requires DHS, in conjunction with the 
Department of Energy (DOE), to deploy integrated container 
scanning systems that combine non-intrusive imaging 
equipment and radiation detection equipment in three ports 
with differing levels of trade volume.  The CG noted that 
two Hong Kong Port Terminal Operators, Hutchison 
International and Modern Terminals, had already deployed 
and conducted tests of a private-sector developed 
integrated scanning system, the Integrated Container 
Inspection System (ICIS). 
 
¶3.  (SBU) The CG told Wong that Washington agencies had not 
yet decided whether Hong Kong would be designated as one of 
the three pilot projects; however, the U.S. government was 
continuing to work in Hong Kong to resolve outstanding 
issues, focusing on Modern Terminal's pilot ICIS project. 
One issue is the large amount of background radiation the 
ICIS radiation monitoring equipment is detecting.  A DHS 
Technical Team that studied this phenomenon concluded that 
the background radiation is likely attributable to the 
granite used in the terminal's concrete surfaces.  A second 
issue is the ICIS system's current inability to 
electronically transmit usable images and data to the 
Container Security Initiative personnel both at the Hong 
Kong Port and in the United States.   Presently, 
telecommunications cables are being installed between 
Modern Terminal and the U.S. CSI office in Hong Kong to 
allow for the electronic transfer of this data.  He told 
Wong that another DHS team would be visiting Hong Kong this 
week to review the Modern Terminal Project. 
 
¶4.  (SBU) Wong assured the CG that Hong Kong remains 
committed to playing a constructive, cooperative role in 
ensuring that trade into and out of Hong Kong is safe and 
secure.  Wong noted that the Port Security Legislation 
included a provision for possible preferential treatment at 
U.S. ports of cargo loaded at CSI-participating ports. 
This would be important, and Hong Kong authorities have 
made clear their hope that the U.S. government would 
recognize Hong Kong's security efforts and offer 
preferred treatment over goods from seaports not utilizing 
the integrated security scanning measures.  The CG said 
that Hong Kong views on this point were clear, and noted 
the conceptual nature of this portion of the Legislation 
and that details were not yet available. 
 
¶5.  (SBU) Wong told the CG that the Hong Kong Government is 
open to making Hong Kong one of DHS's three designated 
integrated scanning system pilot sites.  While the private 
sector currently operates Hong Kong's ICIS pilot project, 
Wong strongly suggested that it is time for formal Hong 
Kong and U.S. government involvement.  He requested that 
the U.S. government provide information, briefings and 
technical requirements for the integrated scanning systems 
to Hong Kong government officials.  Hong Kong officials 
could then evaluate the integrated scanning systems, the 
outstanding issues and move closer to agreeing on 
implementing an official pilot project with the United 
States.  He said his government had organized itself to 
have this discussion and would welcome it in the near 
future.  The CG responded that he would pass that message 
to Washington. 
 
¶6.  (SBU) ACTION REQUEST. We understand from the DHS team 
visiting Hong Kong October 19-20 that thinking has evolved 
in Washington, pointing to an announcement mid to late 
November on plans to implement the new legislation.  We 
also understand that Hong Kong is intended to be part of 
 
HONG KONG 00004174  002 OF 002 
 
 
Phase I.  We need to consult with the government here as 
soon as possible to both update it on our thinking on the 
overall approach, and to discuss some of the technical 
issues involved.  Modern Terminals is unlikely to proceed 
with participation in the pilot absent HKG involvement. 
Post requests guidance on plans to implement the legislation 
so that we can brief Wong the week of October 23 and the 
dispatch of a team from Washington to describe the technical 
issues and requirements as soon as possible thereafter. 
Cunningham