VZCZCXRO3215
RR RUEHCN RUEHGH RUEHHM
DE RUEHHK #2223/01 3460015
ZNR UUUUU ZZH
R 110015Z DEC 08
FM AMCONSUL HONG KONG
TO RUEHRC/USDA FAS WASHDC 1421
RUEHC/SECSTATE WASHDC 6427
INFO RUEHBJ/AMEMBASSY BEIJING 2762
RUEHHI/AMEMBASSY HANOI 3896
RUEHPF/AMEMBASSY PHNOM PENH 0831
RUEHVN/AMEMBASSY VIENTIANE 9701
RUEHHM/AMCONSUL HO CHI MINH CITY 0399
RUEHCN/AMCONSUL CHENGDU 1374
RUEHSH/AMCONSUL SHENYANG 3816
RUEHGH/AMCONSUL SHANGHAI
RUEHGZ/AMCONSUL GUANGZHOU 0038
RUEHIN/AIT TAIPEI 0130

UNCLAS SECTION 01 OF 02 HONG KONG 002223 
 
TOFAS 14 
SIPDIS 
 
FAS/OA YOST, MILLER 
FAS/OCRA/ABRANSON 
FAS/OFSO/AO/NORTH ASIA/BREHM 
FAS/OTP 
USDA/APHIS 
USDA/FSIS 
BEIJING FOR AG MINISTER-COUNSELOR 
CHENGDU FOR AG ATTACHE 
SHENYENG FOR ATO DIRECTOR 
SHANGHAI FOR ATO DIRECTOR 
GUANGZHOU FOR ATO DIRECTOR 
TAIPEI FOR AG CHIEF 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR HK CH
 
SUBJECT:  CONSUL GENERAL'S INTRODUCTORY MEETING WITH HONG KONG 
SECRETARY OF FOOD AND HEALTH 
 
REF:  HONG KONG 2208 
 
¶1.  (U) Summary: Secretary for Food and Health York Chow discussed 
with the Consul General restrictions on U.S. beef, the threat to 
U.S. exports of packaged foods posed by Hong Kong's new nutritional 
labeling law, and shared food safety concerns regarding imports from 
the Mainland, during an introductory call December 4. Avian 
Influenza and Hong Kong's health care challenges were also discussed 
(reftel).  The Consul General noted that Hong Kong continues to 
allow only boneless beef under 30 months for import, despite the 
unanimous finding by the World Organization for Animal Health that 
all U.S. beef products certified for export may be safely traded. 
In response, Secretary Chow repeated Hong Kong's position that it 
would be willing to promptly open the market to bone-in rib cuts 
following some plant inspections, but that it wanted to see a feed 
ban and animal ID system similar to Canada's before fully opening 
the market to U.S. beef.  Secretary Chow defended the government's 
actions on nutrition labeling.  Responding to the CG, Secretary Chow 
said he thought it would be very difficult to formally amend the law 
in Hong Kong's Legislative Council at this stage.  The two also 
discussed the shared challenge of ensuring the safety of food 
products from Mainland China. End Summary. 
 
¶2.  (U) Consul General Donovan held an introductory meeting with 
Secretary for Food and Health York Chow on December 4.  Secretary 
Chow holds the portfolio for most matters relating to human health, 
including Hong Kong's health care system, drug and food safety 
regulations and inspection.  The powerful Food and Health Bureau 
retains most of the combined regulatory authorities of USDA, FDA, 
and HHS. 
 
¶3.  (U) Secretary Chow, a medical doctor who was the Chief Executive 
of two different public hospitals before his appointment in 2004, 
focused on Hong Kong's health care challenges and accomplishments 
(reftel).  This included Hong Kong's swift reaction to the discovery 
of melamine in Chinese infant formula, and its leading role in 
establishing a tolerance level which many countries have embraced. 
 
Chow Reiterates HKG Position on Beef 
------------------------------------ 
¶4.  (U) On agricultural import issues, the Consul General raised 
Hong Kong's trade impediments to U.S. beef and to U.S. packaged food 
products.  The Consul General noted that, despite the unanimous 
finding by the World Organization for Animal Health that all U.S. 
beef products certified for export may be safely traded, Hong Kong 
continues to allow in only boneless beef under 30 months, and only 
from certified U.S. processing facilities operating under some of 
the world's most stringent conditions.  In 2003, prior to the 
discovery of BSE in the U.S., American beef comprised roughly 45% of 
the market and achieved sales exceeding US $80 million.  Despite 
significant recovery since Hong Kong opened the market to boneless 
beef in 2005, U.S. beef exports to Hong Kong are projected at just 
over $30 million, with a 14% market share. 
 
¶5.  (U) Secretary Chow responded as in past meetings with U.S. 
officials, stating Hong Kong would like to open the market, but must 
take a phased approach as they do with all other countries.  He 
noted Hong Kong would be willing to promptly open the market to 
bone-in rib cuts following some plant inspections, but that they 
wanted to see a feed ban and animal ID system similar to Canada's 
before fully opening the market to U.S. beef.  Consulate officers 
responded that Hong Kong's lack of technical justification for the 
time periods combined with its unwillingness to set specific time 
frames for each phase made this a difficult position for the U.S. to 
accept.  We also noted the U.S. was in the process of implementing a 
feed ban, and that the traceability system for U.S. beef shipped to 
 
HONG KONG 00002223  002 OF 002 
 
 
Hong Kong was equivalent to Canada's.  Secretary Chow said he looked 
forward to the resolution of this issue. 
 
Legislative Amendments on Nutritional Labeling Unlikely 
--------------------------------------------- ---------- 
¶6.  (U) Turning to nutritional labeling, CG Donovan expressed 
concern that HK's nutritional labeling law passed in May 2008 will 
constrain imports of U.S. packaged food products in general, and 
especially those healthier products that carry nutritional claims. 
Hong Kong is the seventh largest and third fastest growing market 
for U.S. packaged foods and beverages.  Secretary Chow defended the 
government's actions, noting it had consulted extensively with 
interested consulates and the trade, and had made significant 
changes to the original proposal as a result.  He cited specifically 
the addition of a "small volumes exemption," (SVE) and noted that 
the two-year grace period before the legislation takes effect should 
give the trade adequate time to bring the products into compliance. 
 
 
¶7.  (U) CG Donovan thanked Secretary Chow for the flexibilities that 
had been introduced, and for his last minute effort, albeit 
unsuccessful, to include foods making nutritional claims as part of 
the SVE.  The CG reported that the trade has said the significant 
financial and administrative costs of complying with the regulation 
will be borne by consumers.  He said he had heard retailers were 
planning to blacken out nutritional claims, and that this could 
result in consumers paying more for less information.  In response 
to the CG's question on whether the government was considering 
submitting any other amendments on the law, Secretary Chow said he 
thought it would be very difficult to formally amend the law in 
Legco at this stage, and that any changes would have to be 
administrative. 
 
¶8.  (U) The CG and Secretary Chow also discussed the shared 
challenge and concern of ensuring the safety of food products from 
the Mainland.  Secretary Chow noted the widely held view that the 
Central Government had the will to resolve any problems, but that 
"some difficulties" remained with enforcement at the provincial 
level.  Secretary Chow spoke of the close cooperation his office had 
with Beijing, as exemplified by a food safety "hot line" and 
memorandum of understanding.  The CG identified the added difficulty 
of Beijing administering a more rigorous set of food safety 
standards for exported products versus those meant for domestic 
consumption. 
 
DONOVAN