VZCZCXRO3782
PP RUEHCN RUEHGH RUEHVC
DE RUEHHK #2340/01 3570855
ZNR UUUUU ZZH
P 230855Z DEC 09
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 9247
INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY

UNCLAS SECTION 01 OF 05 HONG KONG 002340 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR G/TIP, G, DRL, INL, EAP/RSP, EAP/CM, JAKARTA FOR 
TERRY KINNEY, MANILA FOR DOREEN BAILEY 
 
E.O. 12958: N/A 
TAGS: KTIP KCRM PHUM SMIG HK MC CH
SUBJECT: G/TIP AMBASSADOR ENCOURAGES REFORM IN HONG KONG 
 
(U) This document is sensitive but unclassified.  Please 
protect accordingly.  Not for release outside U.S. government 
channels.  Not for internet publication. 
 
¶1. (SBU) SUMMARY: G/TIP Ambassador Luis CdeBaca,s December 4 
meetings with senior Hong Kong officials, consulates, NGOs, 
and the media stressed the USG was committed to tackling TIP, 
and that the Hong Kong Government (HKG) and other governments 
needed a paradigm shift in their approach to formulating and 
enforcing modern anti-slavery laws.  Hong Kong officials 
vigorously defended their record of enforcing existing 
legislation. The Chief Secretary (CS) and Secretaries of 
Security and Labor/Welfare all stressed the importance of the 
US-HK relationship, particularly in law enforcement, but 
insisted that TIP was not a problem in Hong Kong, and that 
law enforcement was committed to cracking down on sex 
trafficking and labor violations.  CS Henry Tang stressed the 
HKG,s disappointment in the Tier 2 downgrade, asked whether 
the U.S. was "moving the goal posts," and expressed hope the 
U.S. and Hong Kong could "put this all behind us in next 
year's report."  Secretary for Security Ambrose Lee and 
Secretary for Labor and Welfare Matthew Cheung listened 
intently to Ambassador CdeBaca's presentation, while 
defending Hong Kong's existing approach to TIP in a two-hour 
meeting that also included senior HKG labor, immigration and 
police officials.  Secretary Cheung vigorously stressed his 
Bureau's determination to enforce labor laws related to 
foreign domestic workers (FDW).  He criticized Indonesia for 
exporting the debt bondage problem to Hong Kong and giving 
the HKG a bad name.  Similarly, Secretary Lee, while 
"treasuring the relationship" with the U.S., said "a fair 
assessment of HK would further amicable relations on both 
sides."  Ambassador CdeBaca also met with seven NGOs who were 
generally critical of HKG performance, particularly with 
respect to legal protection and social services for FDWs and 
restrictions on FDWs, ability to change employers. The 
Indonesian and Philippines consulates shared their views on 
the conditions FDWs faced in Hong Kong. END SUMMARY 
 
CS Tang: "Downgrade Left a Bad Taste in Our Mouths" 
--------------------------------------------- ------ 
 
¶2. (SBU) In his meeting with Ambassador CdeBaca, Chief 
Secretary (CS) Tang expressed appreciation for the full range 
of cooperation with the U.S and stressed the HKG wanted to 
work together on all fronts.  He noted his disappointment 
that Hong Kong had been ranked under Tier Two and was 
surprised to hear that Hong Kong had in any way not been 
cooperative on TIP.   He said Hong Kong "welcomes people" but 
"does not welcome people here illegally,"  saying that 
authorities took a robust stance on economic migrants, just 
as the U.S. did with Mexico.  Tang maintained that Hong 
Kong,s legal system was "ample and adequate."  Tang also 
asked, based on a report it had received from the Hong Kong 
Economic and Trade Office in Washington, if the U.S. was 
"moving the goal posts" on TIP.  He said he didn't want TIP 
to become a stumbling block for other issues and areas of 
US-HK cooperation, as the downgrade "left a bad taste in our 
mouths."  He said he wanted the U.S. to know "where Hong Kong 
was coming from."  He hoped the U.S. and Hong Kong could "put 
this behind us in the next TIP report."  Tang asked if the 
U.S. would rank itself on the Tier Two watch list next year 
and wondered what that ranking might be.  He noted that Hong 
Kong,s ability to work with its friends on mutual problems, 
such as drug trafficking, was a principle that had served it 
well over the years.  However, Hong Kong did not like being 
judged by others who were saying it was not doing a good job. 
 
¶3. (SBU) Ambassador CdeBaca responded that it was important 
in our relationship to have honesty and to work together as 
law enforcement partners.  It was also important for the U.S. 
to be open with its partners on international norms and 
standards.  It was in that spirit that the TIP ranking was 
made. The Ambassador noted that continued, sustained, forward 
momentum was needed for territories to maintain Tier 1 
status.  He recounted his meeting with HKETO Commissioner 
Tong in Washington where he stressed the importance of HK,s 
very capable law enforcement agencies, which are the envy of 
the world having modern anti-TIP law enforcement tools that 
meet global standards.  The Ambassador noted that the 
majority of modern-day slavery occurred in Asia and many 
victims were trapped in debt bondage due to high recruiting 
fees.  This occurred in the U.S. as well.  He also noted that 
over half the countries in the world now had modern anti-TIP 
laws, replacing legislation that was in many cases based on 
UK laws from the 1880s.  Ambassador CdeBaca stated that Hong 
Kong,s trafficking in persons law is also based on the 1880s 
UK law and should be updated to include labor trafficking. 
Victim identification, prevention, and outreach were minimum 
 
HONG KONG 00002340  002 OF 005 
 
 
standards which were all accomplishable, said Ambassador 
CdeBaca. 
 
¶4. (SBU) CS Tang cautioned that it was necessary to strike a 
balance between deterring illegal immigration and exercising 
compassion when dealing with potential TIP victims, but 
didn't think TIP was a problem in Hong Kong.  Based on Hong 
Kong's experience, those who entered the territory illegally 
were economic migrants with whom Hong Kong dealt in a 
compassionate manner, and whose rights were preserved.  Tang 
described foreign domestic workers (FDWs) as "part of the 
community" and insisted there were few cases of abuse, 
although fights with employers were natural. 
 
Security, Labor Secretaries Defend Hong Kong,s Approach 
--------------------------------------------- --------- 
 
¶5. (SBU) In a two-hour meeting with Secretary for Security 
Ambrose Lee, Secretary for Labor and Welfare Matthew Cheung, 
and key law enforcement, labor and social welfare officials, 
Ambassador CdeBaca noted that the U.S. initially lacked the 
legal tools needed to combat TIP in the 1990s.  Only when 
Congress passed a comprehensive law aimed at protecting TIP 
victims in 2000 did law enforcement agencies and prosecutors 
obtain sufficient tools to fight a crime that no longer was 
restricted to cross-border movement of people for 
prostitution.  Modern-day slavery consisted of all forms of 
forced labor, he explained, and anti-TIP laws needed to 
reflect that reality.  Ambassador CdeBaca encouraged Hong 
Kong to expand its conception and definition of TIP to focus 
more on conditions of exploitation, whether for sexual 
services or other forms of forced labor, and not solely on 
whether cross-border movement occurred. (Comment: Although 
the Secretaries and law enforcement officials listened 
politely, their subsequent comments demonstrated their 
interpretation of TIP remained tied to illegal migration and 
smuggling. End Comment) 
 
¶6. (SBU) Noting that the Palermo Protocol defined TIP as the 
entire process--from recruitment to transferring to the 
receipt of persons--for the purpose of exploitation, 
Ambassador CdeBaca explained that the U.S. recently amended 
the Trafficking Victims Protection Act to allow the U.S. to 
prosecute foreign recruiters abroad for using fraudulent 
recruiting practices on TIP victims sent to or already in the 
U.S.  He noted that Indonesian and Philippine FDWs in Hong 
Kong incurred enormous debt from recruiters in their home 
countries, but Hong Kong currently had no legal means to 
prosecute those recruiters for TIP. He suggested Hong Kong 
explore ways to expand its territorial jurisdiction to 
enhance its anti-TIP regime, explaining that the U.S had 
passed a statute that extended its jurisdiction along the 
entire chain back to the source country.  The Ambassador 
stressed that the objective should be to punish people who 
enslave others while helping those who are enslaved to 
receive the services they need.  He also noted the hidden 
nature of trafficking crimes, and urged Hong Kong authorities 
to move to more proactive work on the issue. 
 
¶7. (SBU) While listening attentively, Secretaries Cheung and 
Lee maintained that Hong Kong's labor laws offered adequate 
protection to FDWs and that both sex trafficking and forced 
labor were not problems in Hong Kong.  Cheung acknowledged 
the large debt incurred by Indonesian FDWs was a huge burden 
on the workers, but blamed the Indonesian government for 
exporting the debt problem to Hong Kong.  He noted that he 
had written the Indonesian Consul General twice about 
lowering the fees charged to FDWs.  The debt issue was "a 
hard nut to crack" because the Indonesian government insisted 
the fees were charged in a transparent manner and the FDWs 
knew what they were signing up for.  Faced with this reality, 
Cheung stressed the HKG instructed Hong Kong employers not to 
get involved with arrangements made between the FDW and the 
recruitment agency in the source country.  He thanked the 
Ambassador for his inspiring presentation, but noted that it 
would be very difficult for a territory of Hong Kong,s size 
and dependency on foreign trade to extend legal jurisdiction 
to source countries of trafficked victims. 
 
¶8. (SBU) While he "could not rule out one or two cases may 
occur" where crime syndicates tricked women to come to Hong 
Kong and later forced them into prostitution, Secretary for 
Security Lee insisted most of the women were "economic 
migrants" who came willingly to work in Hong Kong's sex 
trade.  In some instances, prostitutes repatriated to the 
Mainland attempted to re-enter Hong Kong under a different 
identity, explained Lee.  Ambassador CdeBaca responded by 
saying that the UN Palermo Protocol did not require movement 
in defining trafficking, noted that there was more 
 
HONG KONG 00002340  003 OF 005 
 
 
non-coerced movement of prostitution than coerced, and 
emphasized that initial consent of an individual to engage in 
prostitution was irrelevant in determining whether or not 
they were a trafficking victim.  In closing, Secretary Lee 
said, "while treasuring the relationship, a fair assessment 
of Hong Kong would further amicable relations on both sides." 
 
Roundtable with NGOs 
---------------------- 
 
¶9. (SBU) During a roundtable with local NGOs, NGO leaders 
described the legal limbo some FDWs found themselves in if 
their employer terminates the employment contract or they 
file a complaint against the employer.  International Social 
Service (ISS) Director of Development Adrielle Panares 
described a scenario where an employer may decide to fire the 
helper after learning sh needed extensive medical care, thus 
alleviating the employer of the responsibility to pay medical 
bills.  Because the FDW was no longer employed and thus not 
considered a Hong Kong resident, she would have to pay the 
subtantially higher medical fees non-residents are chaged. 
Ambassador CdeBaca noted the arrangement wa a disincentive 
for exploited FDWs to complain fr fear of losing their 
resident status and all is associated benefits. 
 
¶10. (SBU) Panares also hghlighted a loophole in Hong Kong 
laws that FDWs ere increasingly using to extend their stay 
beyond the two weeks allowed once an employment contract was 
terminated.  She told Ambassador CdeBaca that she had seen a 
steady increase in FDWs applying for refugee or asylum status 
when caught by police for overstaying or working illegally. 
The FDWs hoped to remain in Hong Kong and receive 
government-funded shelter and social services provided to 
asylum and refugee applicants. (Note: The Hong Kong 
government funds ISS to provide shelter, food, clothing and 
transportation for asylum seekers, torture claimants and 
refugees.  End note.)  The NGO representatives agreed FDWs 
were forced to take this route because the two-week grace 
period is often not enough time to find a new employer, and 
the FDWs were desperate to make money. 
 
¶11. (SBU) ISS Panares stated, and other NGOs agreed, that the 
2009 TIP Report downgrade of Hong Kong had an impact on HKG 
authorities, willingness to engage with NGOs on the TIP 
issue.  While the Social Welfare Bureau handled victim 
assistance for the most part, ISS noted that the Security 
Bureau held the most power.  Raids of sex establishments led 
to the arrest and deportation of women in prostitution for 
violating conditions of stay.  ISS told us police often asked 
questions such as "If you were not a (willing prostitute/a 
sexually abused FDW), why didn,t you run and report your 
situation to the police?" (Comment: Such questions are 
indicative of a lack of understanding by front-line officials 
of the nature of the trafficking problem and lack of a 
victim-centered approach to identifying trafficking.  End 
comment.)  The NGOs surmised that in order for the sex 
establishments with TIP victims to operate, organized crime 
triad groups in Hong Kong "must be involved."  International 
Organization for Migration 
Director Gloria Ko observed that there was little follow-up 
on reports of FDW abuses. NGOs noted that the HKG only 
assisted in funding for the protection and care of victims if 
the victims were cooperating witnesses in an ongoing trial, 
in which case the victims were handled "like gold."  TIP 
victims in NGO care who needed medical care might not receive 
it, unless they were serving as witnesses in a case, in which 
case they were guaranteed care. 
 
¶12. (SBU) When Ambassador CdeBaca subsequently raised these 
issues with senior Hong Kong officials, they insisted FDWs 
were entitled to the lower resident medical fees during the 
two-week period because they still had their Hong Kong 
identification card.  Once the two weeks expired, however, 
FDWs had to pay the higher non-resident fees even if they 
were pursuing legal action against their previous employer. 
Ambassador CdeBaca highlighted the importance of allowing 
victims time after escaping an abusive environment to 
overcome their trauma and make rational decisions about the 
next course of action.  He pointed to the "reflection period" 
model many European countries have adopted.  Victims could 
remain in the destination country for either 60 or 90 days to 
reflect on their situation, and at the end of this period, 
they had to decide whether to pursue legal action. This 
arrangement prevented potential TIP victims from being 
handled as immigration cases and/or forced to make decisions 
when they weren't ready. (Note: Ambassador CdeBaca told HKG 
officials he would share with them information on the 
European Union model and other best practices.  Post has 
received the information and will pass to the HKG.  End Note) 
 
HONG KONG 00002340  004 OF 005 
 
 
 
Meeting with Indonesian Consul General 
--------------------------------------- 
 
¶13. (SBU) Indonesian Consul General Ferry Adamhar briefed 
Ambassador CdeBaca on the Indonesian FDW situation in Hong 
Kong.  CG Adamhar stressed that the Consulate's role in 
helping the 131,000 Indonesian FDWs in Hong Kong was limited. 
However, he highlighted the Consulate's three-tier program 
including: (1) orientation upon arrival in Hong Kong to 
provide a soft landing, (2) a "during stay program," and (3) 
an exit program to help FDWs readjust to life back in 
Indonesia.  Adamhar said FDWs receive 5-6 months of training 
in Indonesia before moving to Hong Kong, including language 
training.  He cited Indonesian FDWs' ability to converse and 
understand basic Cantonese as a principal reason why the 
number of Indonesian FDWs had overtaken Filipinas in Hong 
Kong. Adamhar extended an invitation to Ambassador CdeBaca to 
visit the FDW training facilities in Surabaya.  The Consulate 
had also invited journalists and NGOs to visit these 
facilities, Adamhar reported. He explained that the Consulate 
endorsed every visa issuance by the Hong Kong government in 
order to keep track of each FDW in Hong Kong.  This 
"increased the integrity of the process," he stressed. 
 
¶14. (SBU) In response to Ambassador CdeBaca's question about 
cases of abuse, Adamhar replied that it was "very rare" for 
FDWs to approach the Consulate for help.  However, he cited a 
recent case where a judge punished an employer for abusing 
his FDW.  He characterized this as "excellent" work by the 
Hong Kong government, and noted that this would not have 
happened in other destination countries. 
 
¶15. (SBU) Ambassador CdeBaca noted that Indonesia was 
upgraded to Tier 2 in 2007, a success for the GOI,s efforts 
on TIP.  The U.S., however, was still concerned about labor 
brokers and complaints from destination countries about the 
high debts Indonesian FDWs had to incur, as well as the use 
of loan sharks and other creditors.  He said that the U.S. 
was now doing more joint law enforcement work with source 
countries and highlighted a recent joint operation with 
Mexico that resulted in simultaneous arrests.  The Ambassador 
suggested that opportunities for joint law enforcement with 
Hong Kong might exist, not just on the regulatory side 
(licenses) but also in joint police investigations.  Adamhar 
agreed, but noted that Indonesian law required an MOU or some 
provision that protected Indonesian workers.  Indonesia had 
no such MOU with Hong Kong but was satisfied with Hong 
Kong,s excellent labor protection system, Adamhar stated. 
He agreed that joint law enforcement would be a positive 
development and had already invited the Hong Kong government 
to send officials to Jakarta to see firsthand the situation 
there.  Finally, on the question of "freedom of contract" 
which allowed FDWs to move from one employer to another, the 
Indonesian CG explained that, while the Indonesian government 
welcomed this, Indonesian law required that FDWs still go 
through agents as a way of tracking and managing them. 
 
Philippine FDWs in Hong Kong 
---------------------------- 
 
¶16. (SBU) In his meeting with Philippines Vice-Consul for 
Assistance to Nationals Val Roque, Ambassador CdeBaca 
welcomed the new Philippines Attorney General's swearing-in 
statement which highlighted the importance of fighting TIP. 
Roque briefed the Ambassador on a recent case the HKG was 
prosecuting involving two Filipinas who were trafficked to 
Hong Kong via Macau with promises of working in a restaurant 
but who were forced into prostitution.  The HKG was charging 
the perpetrators with TIP for the purposes of prostitution 
and breaching conditions of stay, Roque explained.  The trial 
was set for February.  Roque was hopeful the victims would be 
cooperative.  The HKG was providing HKD 100/day, and NGOs 
were providing a full-time social worker for the victims. 
Roque said Hong Kong authorities had been professional in 
dealing with the case, as in the 2007 case.  He noted that 
most victims didn't want to cooperate but in the current 
case, they were so angry at their relatives who "set them up" 
that they decided to go through with the trial.  Roque said 
victims would be more willing to go through with trafficking 
cases if the HKG allowed them to work in Hong Kong while 
waiting trial, rather than being held in a shelter.  Roque 
also noted that the fear of retribution by traffickers 
prevented victims from coming forward and testifying. 
Ambassador CdeBaca noted research from the Nexus Institute 
showed that trafficked women were more likely to assist in 
the prosecution of their traffickers and stay for trial if 
they could work.  The Ambassador noted that in the United 
States, a complaint by a trafficking victim was not required 
 
HONG KONG 00002340  005 OF 005 
 
 
to start a criminal case.  Roque responded that victim 
statements could be helpful in trial if this were the case in 
Hong Kong. 
 
¶17. (SBU) Turning to FDWs who ended up in shelters because of 
termination of employment or labor disputes, Roque described 
a complicated and costly process.  For example, the 
conciliation process took time to schedule, i.e., FDWs had to 
wait seven days before they could file a complaint (used to 
encourage the parties to settle).  The Consulate would try to 
schedule a conciliation meeting within two weeks but it could 
take a month.  However, after termination, FDWs were required 
to leave Hong Kong after 14 days, which meant they had to 
apply for an extension of their visas at their own cost.  The 
High Court had rejected prior challenges to the "two-week 
rule," said Roque.  He suggested one of the reasons the Hong 
Kong government sustained this policy was to make FDWs 
ineligible for permanent residency, since they had to leave 
Hong Kong after each two-year contract in order to renew the 
contract or change employers. 
 
¶18. (SBU) Roque appealed to Ambassador CdeBaca to help 
minimize the number of Philippine women who came to Hong Kong 
during navy ship visits.  He asked if there was some way for 
the U.S. to "minimize trafficking" by certifying certain bars 
that service men could go to in Wanchai.  He said many 
Philippine women come over on their own with no counseling 
and little money.  Ambassador CdeBaca replied that programs 
had been introduced in Korea to deal with this and agreed 
that we should look at safeguards for our military 
deployments. 
 
¶19.  G/TIP and EAP/RSP cleared this cable. 
MARUT