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Cablegate: Extrancheck: Pre-License Check: Companhia De

VZCZCXYZ0009
RR RUEHWEB

DE RUEHHK #2629 2900909
ZNR UUUUU ZZH
R 170909Z OCT 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 3199
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 002629

SIPDIS

USDOC FOR 532/OEA/LHINES/JSONDERMAN
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS

SIPDIS

E.O. 12958: N/A
TAGS: BMGT BEXP HK ETRD ETTC
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: COMPANHIA DE
TELECOMUNICACOES DE MACAU S.A.R.L. AND CYBER ON-AIR (ASIA) LTD.

REF: A) USDOC 08861 B)D383707

1. Unauthorized disclosure of the information provided below is
prohibited by Section 12C of the Export Administration Act.

2. As per reftel A request and at the direction of the Office of
Enforcement Analysis (OEA) of the USDOC Bureau of Industry and
Security (BIS), Export Control Officer Philip Ankel (ECO) conducted
pre-license checks (PLCs) at Cyber On-Air (Asia) Ltd. (Cyber
On-Air), Unit 309, Fook Hong Industrial Building, 19 Sheung Yuet
Road, Kowloon, Hong Kong and Companhia de Telecomunicacoes de Macau
S.A.R.L., Rua de Lagos, Telecentro, Taipa, Macau (CTM). The PLCs
concerned a cesium clock valued at USD 30,692. The license
applicant is Symmetricom Inc., of San Jose, California. The item is
classified under ECCN 3A002 and is controlled for national security
reasons (NS).

3. Cyber On-Air is a Hong Kong registered company that has been in
existence since 1994. Its directors are Hong Kong residents Choi,
Wing Kin and So, Kam Wing. The paid-up capital of the company is
the Hong Kong equivalent of USD 12,500.

4. On October 5, 2007, the ECO visited Cyber On-Air at the address
above and met with Ms. Connie Wong, Sales Admin Officer. Ms. Wong
provided a general overview of the company (consistent with
information on the company's web site: www.cyberonair.com). The
company serves primarily Hong Kong and Macau based customers. CTM
is a long-standing customer of Cyber On-Air. Ms. Wong provided the
ECO with a copy of the CTM purchase order to Cyber On-Air. In this
transaction, Cyber On-Air is the distributor for Symmetricom and
will provide installation and other support as well.

5. CTM has been providing a range of telecom services in Macau
including fixed line, mobile, internet and IDD related services
since the 1980s. Cable & Wireless of the United States is a 51%
shareholder. Other major shareholders are CITIC Pacific and
Portugal Telecom. Additional information is available at
www.ctm.com.mo.

6. On October 9, 2007, the ECO visited CTM at the address
referenced above and met with Mr. Filipe Antonio, General Manager,
Transport Network, Network Operations. Mr. Antonio provided an
overview of CTM (summarized above) and then described the purpose
behind CTM's intended purchase of the cesium clock. Mr. Antonio
stated that CTM will use the item as a network timing device.
Presently, CTM uses GPS receivers for these purposes but these are
subject to radio interference. CTM is familiar with Symmetricom
products and has elected to purchase this item based on their
positive experiences with Symmetricom products. Mr. Antonio
provided the ECO with a copy of the purchase order for the item as
well as a copy of the CTM end-user statement. Mr. Antonio also
showed the ECO where the clock will be installed within one of CTM's
switching rooms.

7. At the time visited, both Cyber On-Air and CTM appeared to be
suitable recipients of the subject controlled item since they
cooperated with the PLCs and their activities are consistent with
the use of the ordered item. The ECO recommends that this PLC be
Favorable.

Cunningham

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