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Cablegate: Extrancheck: Pre-License Check: Public Security Forces

VZCZCXYZ0001
RR RUEHWEB

DE RUEHHK #2481 2680231
ZNR UUUUU ZZH
R 250231Z SEP 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 3016
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 002481

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: PUBLIC SECURITY FORCES
AFFAIRS BUREAU

REF: A) USDOC 08156 B) EXP.LIC. 382586 C) HK 04112

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 (PLC) at the Macau Public Security Forces
Affairs Bureau, Calcada Dos Quarteis, Macau (Macau Public Security).
The PLC concerned 170 items of Juniper Networks hardware and
software used in firewall, VPN, gateway, anti-spam and anti-hacking
applications. The total value of the proposed licensed transactions
is USD 3.8 million. The transactions are the subject of license
application D382586. The items are classified under ECCN 5A002 and
are controlled for national security reasons (NS).

3. On September 18, 2007 the ECO visited Macau Public Security at
the address above and met with several representatives of Macau
Public Security including Acting Director Sam Peng Chan, and Ms.
Elaine Ngan, Senior Technician of the Information Accessories
Division. Mr. Sky Ho of Netcraft Information Technology (Macau)
Co., Ltd., the reseller in Macau, also attended the meeting.
(www.netcraft.com.mo) (Netcraft).

4. Ms. Ngan stated that Macau Public Security had ordered only two
Juniper items, namely, one Juniper SSG140 Firewall and one SSG520
Firewall. She stated that one item would be used at Macau Public
Security headquarters to enhance Macau Public Security's internal
security infrastructure. A second unit would be installed at Macau
Public Security's disaster recovery site (currently located at the
former headquarters of the Macau Fire Services). Ms. Ngan provided
a copy of the purchase order for the items that had been placed with
Netcraft. She and Mr. Chan confirmed that Macau Public Security has
not ordered additional Juniper items. Ms. Ngan stated that Macau
Public Security currently has older versions of these products but
needs better ones.

5. Mr. Ho stated that Netcraft is providing only these two items
(referenced above) to Macau Public Security and has no other open
orders with Macau Public Security. Netcraft is obtaining the items
from Cyberworld in Hong Kong. Mr. Ho stated that Netcraft is
purchasing the items from Cyberworld in this instance rather than
Juniper directly for what he characterized as business reasons.
Netcraft operates in Macau as well as mainland China but not in Hong
Kong.

6. At the time visited, Macau Public Security appeared to be a
suitable recipient of the subject controlled items since it
cooperated with the PSV and its activities are consistent with the
use of the two items ordered. However, in light of the significant
disparity between the number of items for which a license is
requested in license application D382586 and the number apparently
ordered by Macau Public Security, the ECO recommends that this PLC
be considered Not Conclusive and that a further PLC be considered at
Cyberworld.

Cunningham

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