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Cablegate: Extrancheck: Pre-License Check: Computime Limited

VZCZCXYZ0008
RR RUEHWEB

DE RUEHHK #2960 3390827
ZNR UUUUU ZZH
R 050827Z DEC 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 3574
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 002960

SIPDIS

USDOC FOR 532/OEA/LHINES/DFARROW
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: COMPUTIME LIMITED

REF: A) USDOC 09011 B) D383541

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
a pre-license check at Computime Limited, 17/F, Great Eagle Center,
23 Harbor Road, Wanchai, Hong Kong (Computime). The purpose of the
visit was to determine the suitability of Computime to be a
recipient of technology and hardware for CTL Zigbee radio modules
and related software that are the subject of export license
application D383541. The items (ECCN 5A002 and 5E002) are valued at
USD $25,003 and are controlled for national security reasons (NS).
The license applicant is Cincinnati Technologies of Mason Ohio.

3. On November 16, 2007, ECO visited Computime at the address listed
above and met with Mr. Shen Owyang, General Manager, Wireless
Solutions. According to Mr. Owyang, the company was established in
1974 and is involved in the design and production of remote
controllers for household heating and cooling equipment. The
company has operations worldwide, including production facilities in
mainland China. Customers are located in Asia, Europe and the
United States (but, as of yet, not in mainland China). Computime is
a Hong Kong stock exchange listed company (its IPO was completed in
2006).

4. Mr. Owyang stated that Computime is in the final stages of its
acquisition of Cincinnati Technologies (the license applicant). As
part of that acquisition, certain design software for various
controllers will be transferred to Computime. Mr. Owyang stressed
that the underlying encryption technology that is the subject of the
license application is actually not designed or controlled by either
Cincinnati Technologies or Computime. Rather, those companies
purchase chip sets from Ember Technologies (www.ember.com) and it is
those chip sets that contain the encryption. OEA may wish to
confirm that Ember is, in fact, obtaining licenses (as appropriate)
for any chip sets containing encryption technology that it is
sending to Computime.

5. Mr. Owyang stated that he and the company are keen to comply with
all applicable export controls (including both U.S. and Hong Kong
controls). Computime expects to finalize the acquisition of
Cincinnati Technologies shortly and Mr. Owyang therefore requested
that the license application be considered expeditiously.

Cunningham

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