VZCZCXRO4162
RR RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHVC
DE RUEHHK #2307/01 3590542
ZNR UUUUU ZZH
R 240542Z DEC 08
FM AMCONSUL HONG KONG
TO RUEHRC/USDA FAS WASHDC 1423
RUEHC/SECSTATE WASHDC 6521
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHOO/CHINA POSTS COLLECTIVE
RUEHNE/AMEMBASSY NEW DELHI 1382
RUEHKO/AMEMBASSY TOKYO 5055
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS SECTION 01 OF 02 HONG KONG 002307 
 
TOFAS 15 
SIPDIS 
 
STATE FOR EAP/CM, STATE PASS CPSC RICHARD O'BRIEN 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV ETRD HK
SUBJECT:  Staffdel Nelson's Meetings on Melamine in Hong Kong 
 
Ref: Hong Kong 2211 
 
¶1.  Summary:  A U.S. House of Representatives staff delegation from 
the Energy and Commerce Committee traveled to Hong Kong in early 
December to investigate melamine contamination in Chinese food 
products.  The U.S. Consulate General arranged meetings with Hong 
Kong government (HKG) officials, legislative councilors, food 
manufacturing and retailing representatives, and with officials from 
other consulates general affected by the melamine issue.  From 
groups and individuals, the Staffdel heard nearly unanimous praise 
for the HKG's response to the problem, including its rapid 
establishment of a  technically justifiable tolerance level of 1 
part per million (ppm).  Interlocutors agreed that Beijing is 
serious about food safety but may lack the institutional capability 
to ensure compliance throughout the country.  They said the 
mainland's practice of maintaining stricter food safety standards 
for exported versus domestically consumed foods presents serious 
enforcement issues for manufacturers and food inspectors.  End 
Summary. 
 
HKG's Response to Melamine Contamination 
---------------------------------------- 
 
¶2.  House Energy and Commerce Committee Senior Investigator David 
Nelson and Investigative Counsel Krista Rosenthall met with Deputy 
Secretary for Food and Health Olivia Nip, Government Chemist Dr. T. 
¶L. Ting, Assistant Director of the Food and Environmental Hygiene 
Department Dr. S. Y. Lee, and Assistant Secretary of the Food and 
Health Bureau James Chan, to better understand how the HKG handled 
the discovery of melamine in Chinese dairy products and animal feed. 
 The HKG swiftly responded to public health concerns by introducing 
a series of measures, including setting a melamine standard for 
food, vigorously testing a wide range of food categories, and 
proposing legal amendments to allow mandatory food recalls. 
 
¶3.  Nip noted that the HKG referred to tolerable daily intake 
standards of selected countries, including the US, in setting Hong 
Kong's maximum standard for melamine in food (2.5 ppm) and infant 
products (1 ppm).  With the establishment of such a standard, the 
Center for Food Safety is legally able to prosecute any violations. 
 
 
¶4.  According to Dr. Ting, there are 10 laboratories in Hong Kong 
approved to test for melamine concentration in food.  The testing 
methods used are based on those adopted by the U.S. Food and Drug 
Administration.  Dr. Ting indicated that based on extensive testing 
since the outbreak, the HKG believes that melamine contamination is 
now fully under control. 
 
Legislators Praise HKG Response, This Time 
------------------------------------------ 
 
¶5.  The Staffdel met separately with Legislator Fred Li, Chairman of 
the Panel on Food Safety and Environmental Hygiene, and Legislator 
Tommy Cheung, a member of the Liberal Party who represents the 
catering constituency.  Li commented that the HKG has generally 
tried to avoid unnecessarily embarrassing Beijing government in its 
handling of food incidents, and suggested that the HKG could 
generally do a better job as a gatekeeper for food safety in Hong 
Kong.  Monitoring the food supply from China is a huge challenge for 
the HKG, but he praised the HKG's handling of melamine concerns.  Li 
expected that the proposed mandatory food recall authority for FEHD 
will be passed by the Legislative Council with some manageable 
amendments. 
 
¶6.  Li indicated that his panel may plan a fact-finding mission to 
the U.S. to learn about the U.S. food regulatory system.  The 
Consulate's ATO Director offered to help arrange meetings and visits 
to various food regulatory agencies if such a trip were to take 
place. 
 
¶7.  Tommy Cheung of the Liberal (pro-business) Party said that there 
was little more the HKG could do to address public concerns about 
melamine.  He said the new HKG standard will increase the cost 
burden on the trade, but may not protect consumers very well.  The 
problem could be solved effectively only at the source, he said. 
Given Hong Kong's immense reliance on food from China, it is 
impossible for Hong Kong to send inspectors up to China to fully 
monitor the food supply.  While he believed Beijing is determined to 
solve the melamine issue, Cheung said this may take one year's time 
given the large size of the Chinese food industry. 
 
¶8.  Cheung also touched on nutrition labeling.  He said Consulate 
 
HONG KONG 00002307  002 OF 002 
 
 
General representatives should avail themselves of every opportunity 
to raise their concern over the impending Hong Kong nutrition 
labeling requirements to senior government officials, including the 
Chief Executive, Chief Secretary and Financial Secretary. 
 
Industry Reps Worry About the Next Crisis 
----------------------------------------- 
 
¶9.  In an industry round-table discussion, the Staffdel gained 
insight into how a variety of importers, manufacturers, and 
retailers in Hong Kong are dealing with the threat of melamine 
contamination.  Milk processors have already set up facilities for 
in-house melamine testing, while major retailers are taking 
proactive steps to ensure their products comply with Hong Kong's new 
melamine standard.  Products containing any milk ingredients and/or 
milk derivatives sourced from China must provide an independent 
laboratory report on melamine concentration for every production 
lot.  This measure also applies to eggs exported from China and to 
any other products that have been confirmed as exceeding the Hong 
Kong melamine standard. 
 
¶10.  Industry representatives unanimously agreed that the HKG 
reacted swiftly and responsibly to the crisis.  They applauded the 
HKG's setting a melamine tolerance level slightly above zero, thus 
allowing for unavoidable leaching of trace amounts of melamine into 
food from approved packaging materials.  Industry's biggest concern 
is no longer melamine but rather the next food scare resulting from 
a Chinese manufacturer's use of a prohibited chemical. They noted 
weaknesses in the effectiveness and capacity of mainland regulatory 
institutions, especially at the local level, and said commercial and 
food safety challenges are exacerbated by the mainland maintaining 
different standards for exported versus domestically consumed foods. 
 
 
Diplomatic Reps Worry about Chinese Capacity 
-------------------------------------------- 
 
¶11.  At a breakfast hosted by the ATO, diplomatic representatives 
from major food exporting countries agreed that Hong Kong's reaction 
and resulting standard was swift and reasonable.  They also agreed 
that setting a "zero tolerance" for melamine was impractical and 
unnecessary given the sensitivity of modern instruments and 
available information on the impact of trace amounts of melamine on 
human health.  They complained that China has yet to demonstrate the 
institutional capacity to consistently enforce its food safety laws 
at the local level, noting that the mainland's reputation was 
damaged by the failure to disclose the melamine problem until after 
the Beijing Olympics.  They agreed that sound enforcement will 
remain a problem as long as China maintains higher safety standards 
on food for export than it does for domestically consumed food. 
 
¶12.  Staffdel Nelson did not have an opportunity to clear this 
cable. 
 
MARUT