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Viewing cable 08HONGKONG1203, EGGS THROWN IN PROTEST AS AVIAN FLU PREVENTION

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Reference ID Created Released Classification Origin
08HONGKONG1203 2008-07-02 04:36 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Hong Kong
VZCZCXRO7777
PP RUEHCN RUEHGH RUEHHM
DE RUEHHK #1203/01 1840436
ZNR UUUUU ZZH
P 020436Z JUL 08
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 5216
INFO RUEHBK/AMEMBASSY BANGKOK PRIORITY 0808
RUEHBJ/AMEMBASSY BEIJING PRIORITY 2347
RUEHHI/AMEMBASSY HANOI PRIORITY 3790
RUEHPF/AMEMBASSY PHNOM PENH PRIORITY 0821
RUEHVN/AMEMBASSY VIENTIANE PRIORITY 9656
RUEHCN/AMCONSUL CHENGDU PRIORITY 1316
RUEHGZ/AMCONSUL GUANGZHOU PRIORITY 1266
RUEHHM/AMCONSUL HO CHI MINH CITY PRIORITY 0345
RUEHGH/AMCONSUL SHANGHAI PRIORITY
RUEHSH/AMCONSUL SHENYANG PRIORITY 3761
RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC PRIORITY
RUEHIN/AIT TAIPEI PRIORITY 4967
RUEHPH/CDC ATLANTA GA PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUEAUSA/DEPT OF HHS WASHINGTON DC PRIORITY
UNCLAS SECTION 01 OF 02 HONG KONG 001203 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM, CA/OCS/ACS/EAP, AIAG, OES/IHA, MED 
HHS FOR OGHA/STEIGER AND PASS TO NIH/FIC 
CDC ATLANTA FOR COGH AND DIV-FLU 
BEIJING FOR CHRISTENSEN/GREEN 
 
E.O. 12958: N/A 
TAGS: TBIO KFLU EAGR PINR CH HK
SUBJECT: EGGS THROWN IN PROTEST AS AVIAN FLU PREVENTION 
MEASURES TURN CONTENTIOUS 
 
REF: A. HONG KONG 1034 
     B. HONG KONG 1061 
     C. GUANGZHOU 351 
 
1. (U) Summary: The Hong Kong Government (HKG) is proposing 
significant reform in the live poultry trade following the 
June 7 finding of H5N1 avian influenza virus in Hong Kong 
markets for the first time in five years.  These "farm to 
table" changes include a ban on overnight stocking of live 
poultry in markets (effectively a daily cull), and a proposal 
to buy-back licenses from farmers, wholesalers and retailers 
as part of a HKD1 billion plus compensation package.  The 
announcement of the overnight stocking ban on June 27 
provoked a demonstration by chicken farmers who threw eggs at 
the Legislative Council (Legco) and Government House 
buildings in protest.  Negotiations between the HKG and 
poultry trade industry associations are contentious, with the 
two sides 30-50% apart on compensation packages and license 
buy-out figures.  The HKG is planning to completely 
restructure the industry as a means to prevent the spread of 
avian influenza.  End Summary. 
 
2. (SBU) Comment: The June H5N1 virus is having implications 
far beyond those originally anticipated, as the HKG seeks to 
buy out the entire poultry trade industry as a means to 
prevent the spread of avian flu.  In the five years since the 
virus was last seen inside Hong Kong's borders, the HKG has 
grown confident that its prevention, surveillance and 
detection measures are effective.  The return of the virus 
has shaken that confidence, resulting in this tough response. 
 The compensation package and license buy-outs, combined with 
the overnight stock ban, and reinvigoration of the plans for 
centralized slaughter seem to be enough to satisfy the public 
and media for now -- it remains to be seen if they can stop 
the virus from returning to Hong Kong.  End Comment. 
 
Chronology of the H5N1 Outbreak 
------------------------------- 
3. (U) On June 7, the Hong Kong Agriculture, Fisheries and 
Conservation Department (AFCD) announced that routine testing 
and surveillance had detected the H5N1 virus in a Hong Kong 
wet market.  Subsequent comprehensive testing across 64 
markets and 50 domestic poultry farms found no abnormalities, 
however, the Secretary for Food and Health raised the 
response level from "alert" to "serious", adopting a series 
of public health protection measures: the cull of live 
poultry at the infected market (over 2,000 birds), suspension 
of live chicken imports and trade, inspection of mainland 
China registered supply farms, and enhancement of 
surveillance measures.  On June 11, three more retail markets 
tested positive for H5N1 avian influenza, resulting in 
additional poultry culls and intense media and public opinion 
pressure for action.  Reports from mainland China of H5N1 
outbreak in Guangdong Province (reftel C) only increased 
scrutiny of the HKG response.  While no human cases have been 
identified, and no additional H5N1 virus identified in Hong 
Kong, the HKG is seeking significant changes in the live 
poultry trade. 
 
Ban on Overnight Stocks Draws Eggs 
---------------------------------- 
4. (U) On Friday, June 27, the HKG gazetted a measure to ban 
the practice of keeping live chickens overnight in wet 
markets, effectively instituting a ban on overnight stocking 
beginning on July 2.  This announcement provoked protests at 
the Legco and Government House buildings from chicken farmers 
who fear that this measure will destroy their businesses. 
Shouting "oppose the overnight ban, demand reasonable 
compensation", farmers threw eggs and carried cages housing 
dead chickens, but did not set live chickens free throughout 
 
HONG KONG 00001203  002 OF 002 
 
 
downtown Hong Kong as had been threatened.  Note: That threat 
remains, as farmers have expressed a plan to release live 
chickens as part of their next protest rally on July 4.  End 
Note.  The overnight stocking ban goes before the Legco on 
July 2 and, barring opposition, will take effect immediately. 
 
 
Poultry Trade Reforms 
--------------------- 
5. (U) Secretary for Food and Health York Chow began 
negotiations with all sectors of the poultry industry on June 
8 regarding compensation for birds culled and lost business 
during the import ban.  To the surprise of the industry, 
these discussions are also focusing on closure of all poultry 
farms in Hong Kong, daily culling at the retail level (para 
3), and the buying out of retailer, wholesaler, and 
transporter licenses.  The HKG is proposing a HKD1 billion 
(USD129M) buy out plan to reform the entire industry 
comprised of 50 chicken farms, 71 wholesalers, 469 retailers, 
266 poultry transporters and 2,500 workers.  Meetings are 
being held with each of the trade associations, with pressure 
mounting to reach agreement before the import ban is lifted 
on July 2 and live poultry trade resumes.  Sessions between 
the parties have been contentious, often ending with 
walk-outs, or not even beginning due to boycotts.  The HKG 
and industry positions are quite far apart: 
 
-- Farmers: The HKG wants to buy back all licenses and will 
pay between HKD680,000 to HKD1.5M (USD87K to 
USD193K)depending on the size of the farm.  The HKG will also 
pay HKD42 per chicken older than 30 days still in stock due 
to the government closure of poultry markets.  Farmers want 
business to continue as normal and HKD50 per chicken older 
than 30 days. 
 
-- Wholesalers: The HKG wants a mandatory buy-out of licenses 
for individual wholesalers and is offering from HKD1.5M to 
HKD4.97M (USD193K to USD639K), depending on the size of the 
operation.  Wholesalers want to stay in business, but have 
offered to increase cleaning.  They wholesalers have agreed 
to support a voluntary buy-out of the licenses with 
compensation based on lost earnings. 
 
-- Retailers: The HKG wishes to buy back the licenses of all 
retailers, offering HKD750K (USD96,400) and will ban chickens 
in stalls overnight.  Retailers want the status quo with 
chickens kept overnight and compensation for the 21-day 
closure of markets.  Most retailers will eventually agree to 
the buy-out, but they are holding out for a better deal from 
the government, according to Steven Wong, Chairman of the 
Poultry Wholesalers and Retailers Association. 
 
Looking Ahead 
------------- 
6. (U) Live poultry imports resume and the overnight stock 
ban is expected to begin on July 2. The Legco will review the 
HKD1 billion compensation package for the poultry industry 
over the next several weeks.  The deadline for poultry 
retailers to surrender their licenses is July 24.  On 
September 24, farm owners and chicken transporters will be 
asked to surrender their licenses.  The poultry trade has 
threatened to go to court to protect their livelihoods.  A 
court case could alter the timeline substantially. 
Cunningham