VZCZCXRO1785
RR RUEHIK
DE RUEHAG #1289/01 2891045
ZNR UUUUU ZZH
R 161045Z OCT 09
FM AMCONSUL HAMBURG
TO RUEHC/SECSTATE WASHDC
INFO RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC
RUEHBS/USEU BRUSSELS
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNFRG/FRG COLLECTIVE
RHMFIUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS SECTION 01 OF 02 HAMBURG 0001289 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EUR/CE, EUR/ERA, EEB/TRA 
 
E.O. 12958:  N/A 
TAGS: PTER EWWT TNGD PGOV PREL ECIN ECON ETRD GM
SUBJECT:  Maritime Container Security Conference in Bremen 
 
¶1.  (SBU)  SUMMARY:  On September 10 the EU Commission held a 
"Conference on Maritime Container Security" in Bremen that focused 
on EU and U.S. research aimed at enhancing container traffic and 
supply chain security.  The event brought together approximately 150 
maritime security stakeholders including harbor police, harbor 
masters, port authorities, port ministry officials, economists, and 
private industry representatives from Germany and abroad.  Speakers 
included EU Commission Vice-President Guenther Verheugen and DHS 
Acting Under Secretary of the Science and Technology Directorate 
Bradley I. Buswell.  The need for global cooperation was the 
dominant theme of the conference, and while 100 percent scanning 
legislation was discussed, it did not turn into a contentious issue 
at the conference. END SUMMARY. 
 
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DHS Buswell:  DHS Dedicated to International Research Cooperation 
--------------------------------------- -- 
 
¶2.  (U)  DHS Acting Under Secretary Bradley I. Buswell addressed his 
directorate's task of delivering homeland security technological 
capabilities and highlighted DHS's focus on robust and flexible 
technology.  Buswell invited technology contributions from abroad 
and encouraged international cooperation with his office.  Buswell 
cited the recent bilateral research agreement between the United 
States and Germany, signed by DHS Secretary Janet Napolitano and 
Federal Minister for Education and Research Annette Schavan in March 
2009, as evidence of the close and growing U.S.-German cooperation 
in the maritime security field. 
 
------------ --------------------------------------------- 
EU Position:  U.S.-EU Trade Relations Crucial 
-------------------------------------- ------------------- 
 
¶3.  (U)  Vice-President of the EU Commission and Commissioner for 
Enterprise and Industry Guenter Verheugen affirmed that with 
bilateral trade of over USD 600 billion per year, "the U.S. and no 
one else is our strategic partner."  Acknowledging the right of the 
U.S. Legislature to ensure maritime security, Verheugen -- referring 
to the 100 percent scanning requirement although not explicitly-- 
called for a pragmatic approach and practical solutions to address 
threats and develop common strategies, and stressed the EU 
Commission's preference for a "risk-based approach" that is not 
based solely on technology.  Interestingly, Bremen Minister for 
Economics and Ports Ralf Nagel, while citing the "enormous costs" of 
100 percent scanning, noted that the looming deadline of 2012 for 
implementation of that standard actually accelerated research 
efforts, calling that "a good thing."   European Parliament Member 
Christian Ehler argued that mere coordination of container security 
efforts will not suffice;  cooperation, he said, is needed.  Noting 
that technology breakthroughs alone are insufficient, he called for 
increased efficiency in port operations as an important trade 
facilitation instrument. 
 
--------------------------------------------- ------- 
EU Customs:   Concerns About 100 Percent Scanning Costs 
--------------------------------------------- ------- 
 
¶4.  (U)  EU Commission's Director-General for Taxation and Customs, 
Walter Deffaa, focused  on the costs of 100 percent scanning 
implementation.  He stated that investment costs in the EU would top 
340 million Euros by 2012, and estimated additional annual scanning 
technology operating costs of up to 180 million Euros at EU ports. 
Deffaa predicted a 10 percent increase of direct container 
transportation costs per consignment and said that the aggregated 
worldwide welfare loss due to 100 percent scanning would amount to 
17 billion Euros annually.  Deffaa emphasized that 100 scanning 
provides no protection for biological and chemical threats and no 
guarantee against post-scanning tampering.  He reiterated that the 
EU favors a multi-layered risk-based approach to container security. 
 Deffaa further underscored a need for enhanced international 
intelligence cooperation, and called for increased development of 
international instruments and open standards (e.g. electronic 
seals). 
 
¶5.  (SBU)  COMMENT:  Since the enactment of the SAFE Port Act, the 
vast majority of our maritime contacts have regularly voiced their 
concerns about  100 percent scanning.  We expected this issue would 
feature prominently during this conference.  However, apart from 
sporadic objections concerning financial implications and the 
limited effectiveness critique, the 100 percent scanning requirement 
was not outright rejected.  Most European speakers emphasized that 
the multi-layered risk-based approach remains their preference. 
(Note:  "Risk-based approach," however, is often code language for 
wanting to avoid the 100 percent scanning requirement.  End note.) 
Calls by EU speakers for transatlantic coordination (e.g. 
standardization and mutual recognition of technologies), cooperation 
in R&D, and collaboration in devising maritime policies were 
recurring themes at the conference.  Given the demonstrated level of 
commitment to transatlantic coordination, cooperation and 
pragmatism, the March 2009 bilateral research agreement between the 
U.S. and Germany has the potential to become a model tool in 
enhancing container traffic and supply chain security.  END 
COMMENT. 
 
¶6.  (U)  This message has been coordinated with Embassy Berlin. 
 
JOHNSON