VZCZCXYZ0000
PP RUEHWEB

DE RUEHHK #2047/01 3100838
ZNR UUUUU ZZH
P 060838Z NOV 09
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 8902
INFO RHMFIUU/HQ BICE INTEL WASHINGTON DC PRIORITY
RHMCSUU/FBI WASHINGTON DC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY

UNCLAS HONG KONG 002047 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR PM/DTCC - BLUE LANTERN COORDINATOR 
DEPT ALSO FOR EAP/CM 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC HK
SUBJECT: BLUE LANTERN LEVEL 3: UNFAVORABLE END-USE CHECK ON 
UNLICENSED EXPORT TO ELECTRO COMPANY 
 
REF: SECSTATE 107940 
 
¶1. (SBU) SUMMARY: Per reftel request, Post conducted end-use 
check on unlicensed export to Hong Kong's Electro Company 
with unfavorable results.  In Post's assessment, Electro 
Company is not a reliable recipient of reftel items or any 
other controlled technologies/equipment.  In addition to 
Post's work on this end-use check, this report contains 
information on Electro Company obtained from publicly 
available sources.  END SUMMARY 
 
¶2. (SBU) On October 30, Post's Economic Specialist contacted 
Electro Company employee Sharon Kwong (Point of Contact; 
POC), shared the shipment's detailed information, and asked 
for shipment receipt confirmation.  Post also requested a 
meeting at Electro Company's address to further discuss 
reftel shipment (i.e., to visit site and conduct end-use 
check).  Kwong stated she was simply an employee and was 
unaware of the shipment in question but would relay our 
message along with our contact details to her boss, a Mr. Dan 
Kan.  Post's Econ Specialist contacted POC a second time the 
morning of November 2 and requested a meeting with her and 
Kan on November 3.  POC initially declined on November 2 to 
meet with Post personnel, but later in the day contacted Econ 
Specialist relaying that Dan Kan would be available to meet 
on November 3. 
 
¶3. (SBU) On November 3, Post's Blue Lantern Coordinator 
(BLC), Economic Officer, ICE Representative, and local ICE 
Investigator met for about 30 minutes with Dan Kan, who 
claimed to be the "Responsible Person" at Electro Company, 
but not the owner.  Kan was extremely uncooperative during 
our short meeting and failed to provide any documentation, 
claiming inaccurately that Post officials did not explain to 
his employee (POC Sharon Kwong) the reason for our visit or 
even our Consulate affiliation.  BLC explained the visit's 
purpose was to discuss the shipment of the unlicensed export 
of annunciators from U.S. seller Space Coast IC to Hong 
Kong's Electro Company in June.  BLC informed Kan that the 
items in question are controlled and require an export 
license.  Kan did not state whether he was aware that this 
shipment required a license but argued the U.S. exporter was 
at fault and should have noted the license requirement in the 
transaction's shipping documents.  Furthermore, Kan refused 
to confirm receipt of the annunciators by Electro Company; 
did not speculate on the purpose for which the annunciators 
were purchased; did not provide any information on the 
ultimate end-user of the annunciators or their ultimate 
end-use; and did not reveal the location of the annunciators. 
 Claiming he would need time to review his business 
transaction records, Kan said he would respond to our request 
"ASAP."  BLC pressed several times for an estimated response 
time, to which Kan would only add the information would be 
available ASAP, but not the same day.  Subsequent to the site 
visit, BLC followed up with an electronic message to Kan, 
clearly spelling out details of the shipment in question and 
the additional information requested.  To date, Kan has not 
responded to the message.  On November 5, BLC placed a phone 
call to Kan, but was told he (Kan) "was still checking on the 
shipment in question." 
 
¶4. (SBU) Ms. Sharon Kwong was not present during our November 
3 visit and, after we expressed interest in meeting with her 
as she was the POC for the unlicensed export shipment, Kan 
refused to arrange any meeting.  Throughout our meeting, 
Kan's demeanor was very guarded.  He refused to provide any 
details about Electro Company (e.g., company's establishment 
date and main principals, number of employees, etc.) and made 
only general statements when pushed on the nature of the 
business (e.g., "Electro Company is a trading company that 
deals mainly in cars, audio systems, and alarms, with clients 
normally in North America and Europe").  The company has no 
other branches besides the office BLC visited, Kan stated. 
 
------------------------------ 
Company's Physical Description 
------------------------------ 
 
¶5. (SBU) Electro Company is located in a rural area in Hong 
Kong's New Territories.  The operation is a two-story, 
stand-alone building inside a small car lot that is 
surrounded by a chain link fence.  No human guard presence 
was visible; a caged-dog was spotted on the ground floor. 
Routine pad/key locks appeared to be the only physical 
 
intruder protection on doors and windows, certainly nothing 
that would secure ITAR-controlled items.  Post officers met 
Kan and were confined to a small waiting/meeting room 
adjacent to a larger makeshift office space and showroom on 
the second floor, separated by a glass window and closed 
door.  Throughout the meeting, a person who appeared to be a 
female employee sat inconspicuously at a desk within the 
office, behind a computer screen.  Kan did not permit a 
showroom tour but instead allowed showroom viewing through a 
separating glass window, upon officers' insistence.  During 
our visit, ICE Representative attempted to take a photo of 
Electro Company's outer street sign, to which Kan reacted 
strongly, stating photo taking of private property was 
illegal. 
 
--------------------------------------------- -- 
Dan Kan, Electro Company's "Responsible Person" 
--------------------------------------------- -- 
 
¶6. (SBU) Dan Kan met Post officers at Electro Company's 
street level parking lot, where Kan's red sports car 
(Mitsubishi) was parked, license plate "DANNY."  Kan appeared 
to be in his thirties and of South Asian descent, conversed 
briefly in Cantonese with local ICE investigator, and claimed 
to be from Hong Kong but educated in the United Kingdom. 
 
------------------------------- 
Kan's Business Card Information 
------------------------------- 
 
¶7. (SBU) This information is from Kan's business card: 
 
- Characterized as Motor Vehicle Dealer 
- Kan's name on the business card is simply "Dan K" 
- Credentials on card: "B.Sc, MIS, MCP 1, MCSE 
  Microsoft Certified Systems Engineer" 
- Mobile phone number: (852) 9472 7657 
- Company's phone number: (852) 2631 9975 
- Company's fax number: (852) 2631 9983 
- Kan's e-mail address: sales@electrohk.com 
- Company website: www.electrohk.com 
- Electro Company's e-mail address: info@electrohk.com. 
 
--------------------------------------------- ---- 
Publicly Available Information on Electro Company 
--------------------------------------------- ---- 
 
¶8. (SBU) Post obtained the following information from public 
and readily available sources: 
 
SOURCE: Hong Kong's Business Registry Office 
 
a. Information on the business: 
------------------------------ 
- Business Registration No. & Branch No.: 36826757-000 
- Name of Business/Corporation in Chinese: NIL 
- Name of Business/Corporation in English: ELECTRO COMPANY 
- Business/Branch Name in Chinese: NIL 
- Business/Branch Name in English: NIL 
- Business Address: 
 
  DD 114 LOT 357 LOT 362 KAM TIN 
  RD PAT HEUNG KAM TIN C/O PO 
  BOX 576 KAM TIN POST OFFICE 
  NT 
 
- Business Nature: TRADING, RETAIL, IMPORT & EXPORT, 
                   SCRAPYARD 
- Business Status: INDIVIDUAL 
- Date of Commencement: 08/06/2006 
- Date of Cessation/Dissolution: 00/00/0000 
 
b. Information on the owner: 
--------------------------- 
- Hong Kong Identity Card No.: K7327862 
- Name/Business Name in Chinese: NIL 
- Name/Business Name in English: KAUR, RAJWANT 
- Residential Address/Business Address: 
 
  FLAT/RM 1303 
  YIU CHUNG HOUSE 
  MA ON SHAN 
  SHATIN, HK 
 
 
- Incoming Date: 08/06/2006 
- Outgoing Date: 00/00/0000 
 
SOURCE: Hong Kong Trade Development Council (HKTDC) Website 
 
- Office Address: 
  DD114 LOT 357 LOT 362 KAM TIN ROAD 
  WANG TOI SHAN PAT HEUNG, KAM TIN 
  YEUNG LONG, NEW TERRITORIES, HONG KONG 
- Website: www.electrohk.com 
- Contact Person: MS. SHARON KWONG 
- Telephone: 852 2631 9975 
- Fax: 852 2631 9983 
- Position: PROPRIETOR 
- Number of Staff: 1-5 
- Year of Establishment: 2006 
- Nature of Business: EXPORTER 
- Major Export Market: WORLDWIDE 
- Product/Service Range: USED ELECTRICAL HOME APPLIANCES, 
  SEMICONDUCTORS, ELECTRONIC COMPONENTS, ELECTRONIC PARTS 
  & ACCESSORIES, CHRISTMAS DECORATIONS 
- Annual Turnover: US$ 100,000 - 249,999 
 
---------- 
Conclusion 
---------- 
 
¶9. In Post's assessment, Electro Company is not a reliable 
recipient of reftel items or any other controlled 
technologies/equipment. 
MARUT