VZCZCXRO1571
PP RUEHAST RUEHCN RUEHGH RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHTM
RUEHTRO RUEHVC
DE RUEHBJ #0817/01 0860650
ZNR UUUUU ZZH
P 270650Z MAR 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 3125
RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE
RHMCSUU/FBI WASHINGTON DC
RUEHIN/AIT TAIPEI 7193
RUEHMO/AMEMBASSY MOSCOW 9257
RUEHKO/AMEMBASSY TOKYO 2483
RUEHNE/AMEMBASSY NEW DELHI 4795
RUEHTV/AMEMBASSY TEL AVIV 2138
RUEHLN/AMCONSUL ST PETERSBURG 0027
RUEHCI/AMCONSUL KOLKATA 0043
RUEHCG/AMCONSUL CHENNAI 0241
RUEHBI/AMCONSUL MUMBAI 0130
RUEHJM/AMCONSUL JERUSALEM 0708
RUEHGP/AMEMBASSY SINGAPORE 9613
RUEHRH/AMEMBASSY RIYADH 0667
RUEHGB/AMEMBASSY BAGHDAD 0212
RUEHKA/AMEMBASSY DHAKA 0457
RUEHAD/AMEMBASSY ABU DHABI 0261
RUEHJA/AMEMBASSY JAKARTA 1959

UNCLAS SECTION 01 OF 02 BEIJING 000817 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR CA/P, CA/VO/L/C, EAP/CM, EEB/CBA, EEB/ESC, ISN/CB, L, OES 
STATE PASS NASA/OFFICE OF EXTERNAL RELATIONS FOR A/S O'BRIEN 
TOKYO FOR NASA ATTACHE TILMAN 
 
E.O. 12958:  N/A 
TAGS: CMGT CVIS ETTC OEXC ECON ENRG EINV TRGY KNNP KSCA
CH 
 
SUBJECT: SAOs: U.S. Companies Highlight Harm to U.S. Exports; Jobs 
 
REF: A) BEIJING 686, BEIJING 687; B) STATE 20889; C) BEIJING 601, 
BEIJING 435; D) NEW DELHI 531, MOSCOW 578 
 
BEIJING 00000817  001.2 OF 002 
 
 
NOT FOR INTERNET DISTRIBUTION 
¶1. (SBU) Summary: Presidents and CEOs of U.S. high-tech exporters 
met with the CDA to express their concern that four-month-long waits 
for visa issuances are having a serious negative impact on American 
exports, and to discuss possible solutions.  A delegation of former 
American Chamber of Commerce (AmCham) presidents from China plans to 
travel to Washington next month and intends to raise this issue with 
USG officials and Members of Congress.  The AmCham also will address 
SAO delays during their annual "Congressional Doorknock" visit. 
(Note: The wait time for Mantis Security Advisory Opinion (SAO) 
processing currently is about 16 weeks from the date of visa 
interview for business applicants and 8 weeks for students and 
scholars (ref A). End Note.) End summary. 
 
Improvements Welcomed to Existing SAO Mantis Process 
------------------------ 
 
¶2.  (SBU) On March 25, 2009, representatives of seven of the largest 
U.S. companies in China gathered to discuss SAO Mantis delays. 
Participants included the President of United Technologies 
International Operations (UTIO) China, Senior Attorney for 
Microsoft, President of Motorola China, Chief Representative of 
Westinghouse Electric (Asia), President of Boeing China, CEO of 
Cummins Engine (China), and Vice President of GE. 
 
¶3.  (SBU) CDA Piccuta emphasized the need to protect intellectual 
property and noted that SAOs are essential to preventing 
unauthorized technology transfer of U.S. technology.  The Embassy 
has worked closely with U.S. companies in China on facilitating 
expedites when appropriate.  He briefed on the current SAO Mantis 
environment and informed the business leaders that the State 
Department and clearing agencies continue to make SAO reform a 
priority.  For example, the State Consular Affairs Bureau (CA) 
recently authorized issuance of one-year, multiple entry visas to 
applicants subject to Mantis processing, replacing the previously 
limiting three-month, one-entry visa for B1/B2 applicants (ref B). 
He expressed hope that this change will alleviate partner clearing 
agencies' workload in Washington, cut down on Non-Immigrant Visa 
(NIV) workload at post, and benefit Chinese government officials and 
business people who make multiple trips to different places in the 
United States within one year.  He also stated that Washington 
clearing agencies are hiring more processors, and SAO Mantis waits 
have declined slightly. 
 
SAO Mantis Delays Threaten Exports and American Jobs 
------------------------ 
¶4.  (SBU) The business participants expressed appreciation for the 
extended visa validity change authorized by CA.  However, they noted 
that it does not alleviate the long wait times to obtain or renew a 
visa subject to Mantis administrative processing.  Further, some 
participants showed concern that, while delays may be getting 
shorter as new staff is hired, they could unpredictably expand again 
in the future. 
 
¶5.  (SBU) U.S. companies are losing contracts due to the SAO delays, 
 
BEIJING 00000817  002.2 OF 002 
 
 
according to the American businesspeople.  According to UTIO China 
President, for example, a recent meeting between Ford Motor Company 
and Chinese counterparts was delayed due to SAO Mantis processing 
for participants.  Many participants agreed that SAO Mantis 
processing times limit cooperation on science and technology, slow 
down business deals, and cost American jobs (Ref C).  U.S. business 
leaders strongly supported a specific, fixed timeframe for 
administrative processing. (Note: these comments reiterated recent 
messages from the U.S. business communities in New Delhi and Moscow 
(Ref D). End Note.) 
 
¶6.  (SBU) The Charge acknowledged Embassy awareness that visa wait 
times for travel to nations competing with American firms for sales 
and contracts is significantly shorter.  (Note: Currently, the time 
from initial application until business visa issuance is 5 business 
days for Japan, 7 business days for France, and 15-21 weeks for the 
United States. End Note.) 
 
Plans to Raise the Issue of Visa Delays in Washington 
------------------------ 
¶7. (SBU) The head of the Beijing AmCham briefed the Charge on plans 
to send two delegations to Washington in the near future: a group of 
former AmCham presidents, and the annual AmCham "Congressional 
Doorknock" to discuss issues on the Hill.  He stated that both of 
these groups plan to raise the issue of SAO delays, and their impact 
on U.S. exports and jobs.  They will visit both Members of Congress 
and U.S. Government officials. 
 
¶8.  (SBU) Comment:  Post expects business executives in China to 
continue the discussion about how to decrease SAO Mantis wait times 
and increase American jobs.  Executives in Beijing may communicate 
with their U.S. parent companies, AmCham, and the U.S. Chamber to 
ask for assistance in making their concerns known.  Their apparent 
message: exports are critical to job creation.  In the face of the 
economic downturn, smooth travel can facilitate American exports and 
create American jobs.  End comment. 
 
PICCUTA