VZCZCXRO9997
PP RUEHCN RUEHGH RUEHVC
DE RUEHHK #1318/01 1981030
ZNR UUUUU ZZH
P 171030Z JUL 09
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 8114
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 HONG KONG 001318 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM, STATE PASS USTR FOR ALTBACH 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON ETRD EAGR HK
SUBJECT: CONSUL GENERAL'S FAREWELL CALL ON CHIEF SECRETARY 
TANG 
 
¶1.  (SBU) Summary:  During the Consul General's Farewell call 
July 16, Hong Kong Chief Secretary for Administration Henry 
Tang thanked the United States for our cooperation on a 
variety of issues and noted that Hong Kong's close 
relationship with the United States is based on our shared 
respect for human rights and freedoms.  Tang was sanguine 
about the recent announcement that the Hong Kong courts would 
hear arguments about the Legislative Council's power to call 
witnesses before special committees.  He assured the Consul 
General that Hong Kong is very serious about addressing 
trafficking in persons (TIP) and stressed the importance of 
early and regular dialogue.  In response to U.S. concerns 
about the implementation of the Nutrition Labeling law, Tang 
promised to remind the Food and Health Bureau of the 
importance of this issue and suggested Hong Kong would show 
some flexibility to ensure the registration and approval 
process goes smoothly.  Abolishing the duty on wine and beer 
has turned Hong Kong into a center for wine trade and the 
city may surpass London to become the world's second largest 
wine auction venue this year, said Tang.  End summary. 
 
¶2.  (SBU) The Consul General paid his farewell call on Chief 
Secretary for Administration Henry Tang July 16.  He thanked 
Tang for the close cooperation between our governments over 
the past year, particularly on law enforcement-related 
issues.  Tang agreed and noted that one strength of the 
bilateral relationship was the willingness of both sides to 
appreciate the position of the other and back off when things 
get too sensitive.  He added that Hong Kong people and 
Americans share similar values: respect for human rights, 
freedom of expression and the desire to take advantage of 
opportunities. 
 
HKG Officials Like Testifying Before LegCo 
========================================== 
 
¶3.  (U) The Consul General noted the recent announcement that 
the Hong Kong courts would hear arguments about the LegCo's 
power to call witnesses to testify before special committees. 
 Tang replied that government officials regularly appear 
before LegCo, know how to prepare and don't mind fulfilling 
this obligation.  The appointment of political 
Undersecretaries in 2007 has been helpful, said Tang, in 
spreading the demands of testifying among more people and has 
freed other senior leaders to focus on other tasks. 
 
Getting Nutrition Labeling Right 
================================ 
 
¶4.  (SBU) The CG also raised U.S. concerns over Hong Kong,s 
plans to implement nutrition labeling legislation in July 
¶2010.  More than half of the 65,000 food products imported by 
Hong Kong will qualify for Small Volume Exemptions to the 
labeling law.  Retailers believe the registration process 
must begin no later than December to allow them the 
confidence to place orders for new products that will not be 
forced off the shelves when the law takes effect.  Retailers 
are also concerned that the process for calculating whether 
an item breeches the 30,000 unit "Small Volume" threshold. 
The Consul General noted that Hong Kong is the U.S.'s fifth 
largest market for manufactured food products, and we are 
watching closely Hong Kong's plans for implementing the new 
law.  Tang promised to relay the Consul General's concerns to 
the Hong Kong Food and Health Bureau and to remind them of 
the importance of getting this right.  If the registration 
and implementation dates cannot be adjusted, said Tang, 
perhaps there are other ways to work around any problems. 
 
¶5.  (U) One of Hong Kong's successes over the past year has 
been its decision to abolish the excise tax on wine.  The 
Consul General observed that Hong Kong is quickly becoming a 
center for wine trading.  Tang replied that Hong Kong's wine 
imports are up 80 percent over the past year.  He predicted 
Hong Kong would become the world's second largest wine 
auction site this year, surpassing London and behind only New 
York.  Abolishing the wine tax has already boosted economic 
activity and created new jobs, and will ultimately increase 
Hong Kong,s tax revenues, said Tang. 
 
Early TIP Dialogue Important 
============================ 
 
¶6.  (SBU) The Consul General noted that Trafficking in 
Persons (TIP) is a global problem.  He thanked the Hong Kong 
government, and particularly the Hong Kong Immigration 
Department, for their cooperation on this important issue. 
 
HONG KONG 00001318  002 OF 002 
 
 
Tang assured the CG that the Hong Kong government takes TIP 
allegations very seriously and stressed the importance of 
early and regular dialogue on TIP-related concerns. 
DONOVAN