VZCZCXYZ0005
RR RUEHWEB

DE RUEHHK #3010 3470107
ZNR UUUUU ZZH
R 130107Z DEC 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 3627
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 003010 
 
SIPDIS 
 
USDOC FOR 532/OEA/LHINES/DFARROW 
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT 
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BMGT BEXP HK ETRD ETTC
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: (A) HOVIONE PHARMASCIENCE 
LTD (B) AUTODIESEL TRADING 
 
REF: A) USDOC 09956 B) D386654 
 
¶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 
pre-license checks at Hovione Pharmascience Ltd., Estrada Coronel 
Nicolau de Mesquita, Taipa, Macau (Hovione) and Autodiesel Trading 
Corporation, Room 101, L/F, Suit Way Industrial Centre, 29-33 Wing 
Hong St., Kowloon, Hong Kong (Autodiesel). The purpose of the visits 
was to determine the suitability of Hovione to be an end-user and of 
Autodiesel to be an intermediate consignee of an air operated 
diaphragm positive displacement pump.  The pump is the subject of 
export license application D386654 and is classified under Export 
Control Classification Number (ECCN) 2B350.  It is valued at USD 
$6,950 and is controlled for chemical and biological weapons reasons 
(CB). The license applicant is Wilden Pump and Engineering Co., of 
Grand Terrace, California. 
 
¶3. Background research reveals that Hovione is a Portuguese-owned 
chemical company that produces active pharmaceutical ingredients 
(APIs) used in the production of pharmaceuticals worldwide.  The 
parent company has plants and operations in the United States, 
Portugal and Macau (more information at www.hovione.com). 
 
¶4.  Background research reveals that Autodiesel Trading Corporation 
is a Hong Kong registered company in existence since 1956. 
Autodiesel Trading Corporation is, since 1996, a branch office of 
Autodiesel Engineering International Ltd., also located at the 
address noted above.  Its owner is Mr. Chang, Chung Chien, a Hong 
Kong resident. 
 
¶5.  On November 28, 2007, ECO visited Hovione at the address noted 
above and met with Daniel Mok, Head of Industrial Engineering and 
Mr. David Martins, Head of Purchasing and Export Department. They 
provided background on the company consistent with information on 
the company's web site.  They noted that their customers are large 
pharmaceutical companies that use Hovione APIs to produce 
pharmaceuticals as well as small biotech companies.  They ship their 
products to the United States, Europe and Japan.  Hovione is 
purchasing the pump in question to replace an existing Wilden pump 
also purchased from Autodiesel.  They require a new pump as their 
existing pump is not able to handle current pressure levels in their 
facility and consequently leaks during some production cycles. 
Autodiesel recommended this pump to Hovione.  Mr. Mok and Martins 
took the ECO to the production site and showed him the existing pump 
where the new pump will be installed.  All appears as Messrs. Mok 
and Martins describe. 
 
¶6.  On December 7, 2007, ECO met with Mr. Chang, the owner and 
General Manager of Autodiesel.  Mr. Chang provided background on the 
company and on the transaction in question.  Autodiesel is a small 
trading company that has been in existence for many years.  It is a 
distributor of diesel engines and pumps.  It is a longstanding 
distributor for Wilden Pumps and Briggs and Stratton engines.  Mr. 
Chang is familiar with Hovione as it is a longstanding customer.  He 
noted that the pumps will be sent through Hong Kong to Macau.  He 
also provided ECO with copies of all correspondence relating to the 
purchase including end-use certification and purchase order.  Mr. 
Chang was not familiar with Hong Kong trade controls covering the 
items though he seemed familiar with U.S. export controls (having 
gone through this process before).  ECO separately provided a link 
to U.S. reexport controls guidance and to the Hong Kong Trade and 
Industry Department's strategic controls division. 
 
Cunningham