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Cablegate: Extrancheck: Pre-License Check: Esteem

VZCZCXYZ0015
RR RUEHWEB

DE RUEHHK #1654 1720407
ZNR UUUUU ZZH
R 210407Z JUN 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 2024
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 001654

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: ESTEEM
INDUSTRIES LTD

REF: A) USDOC 05257 B) D377129

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 of the USDOC
Bureau of Industry and Security (BIS), Export
Control Officer Philip Ankel (ECO) conducted a
pre-license check (PLC) at Esteem Industries
Limited, 9/F, 9 Wing Hong Street, Cheung Sha Wan,
Kowloon, Hong Kong (Esteem). The purpose of the
visit was to determine the suitability of Esteem
to be a recipient of a thermovision, infrared
thermal imaging camera that is the subject of
license application D377129. The item (ECCN
6A003) is valued at USD 24,950 and is controlled
for national security (NS) and nuclear
nonproliferation (NP) reasons. The license
applicant is Sunbeam Products, Inc. of Boca Raton,
Florida.

3. A review of Hong Kong Companies Registry
records reveals that Esteem has been in existence
since 1989. Its paid-in capital is the Hong Kong
equivalent of USD two million. U.K. national Ian
Guy Handley Ashken, U.S. national Martin Ellis
Franklin and Hong Kong identity card holder Woon
Fai Liu are listed as directors.

4. On May 21, 2007, the ECO visited Esteem at the
address above and met with Tony Tam, Group Manager
and Mickey Cheung, Purchasing Manager. Mr. Tam
stated that Esteem is part of the Jarden
Corporation group of companies. Jarden
Corporation is a NYSE listed company and a
worldwide producer of niche consumer products. Mr.
Tam stated that Jarden Consumer Solutions (JCS)
acquired Sunbeam Products, Inc. as well as the
Holmes Group in 2005. Both companies are
producers of various consumer products under brand
names such as Crock-Pot, Mr. Coffee, Oster,
Sunbeam and others. Esteem, formerly part of
Holmes Group, is now a subsidiary of JCS.

5. Mr. Tam stated that as a result of corporate
restructuring, some Sunbeam facilities in Boca
Raton, Florida will be consolidated and some
operations from those facilities will be moved to
Hong Kong. More specifically, the infrared camera
will no longer be used in Boca Raton and is
therefore being exported to Hong Kong for use in
the Hong Kong operation's product development and
testing operations. The camera will be used in a
small lab being prepared for this purpose at the
Esteem headquarters location. Various products
that generate heat as an aspect of their operation
(i.e., toaster ovens) will be tested with the
camera. The ECO reviewed the proposed location of
the testing lab and it appeared suitable for the
applicable use of the camera.

6. At the time visited, Esteem appeared to be a
suitable recipient of the subject controlled items
since it cooperated fully with the PLC and
provided information on the proposed use of the
items. In addition, Esteem operates a line a
business that is consistent with the potential use
of the ordered items. The ECO recommends that
this PLC be classified as Favorable.

Cunningham

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