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Viewing cable 07HONGKONG2339, EXTRANCHECK: POST SHIPMENT VERIFICATION:

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Reference ID Created Released Classification Origin
07HONGKONG2339 2007-09-10 04:12 2011-08-23 00:00 UNCLASSIFIED Consulate Hong Kong
VZCZCXYZ0003
RR RUEHWEB

DE RUEHHK #2339 2530412
ZNR UUUUU ZZH
R 100412Z SEP 07
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 2860
RHMFIUU/HQ BICE INTEL WASHINGTON DC
UNCLAS HONG KONG 002339 
 
SIPDIS 
 
USDOC FOR 532/OEA/LHINES/ADYSON 
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: POST SHIPMENT VERIFICATION: 
HONG KONG DRAGON AIRLINES LTD. 
 
REF: A) USDOC 06988 B) EXP.LIC. D328589 C) HK 
03591 D) HK 07053 E) HK 04648 
 
1. Unauthorized disclosure of the information 
provided below is prohibited by Section 12C of the 
Export Administration Act. 
 
2. As per reftel A 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) was requested 
to conduct a post shipment verification (PSV) at 
Hong Kong Dragon Airlines Ltd, L2 Dragonair House, 
11 Tund Fai Road, Hong Kong Int'l Airport, Lantau, 
Hong Kong (Dragonair).  In fact, as further 
explained below, the PSV was conducted at Hong 
Kong Aircraft Engineering Company Limited (HAECO), 
80 South Perimeter Road, Hong Kong International 
Airport, Lantau Island, Hong Kong (more 
information at www.haeco.com).  The item in 
question is an inertial navigation system that is 
the subject of export license D328589.  The export 
control classification number (ECCN) of the item 
is 7A103 and it is controlled for missile 
technology reasons (MT). The exporter was 
Intertrade (a Rockwell Collins, Inc. company) of 
Cedar Rapids, Iowa. 
 
3.  Dragonair is an affiliate of the Cathay 
Pacific Group of companies.  Dragonair flies a 
range of planes throughout the Asia Pacific region 
including six Boeing 747s and 31 Airbus aircraft. 
HAECO provides a range of aeronautical engineering 
services to the Cathay Pacific Group.  Parts for 
Dragonair aircraft are actually held (on 
Dragonair's behalf) at HAECO's facilities. 
Therefore, the PSV was conducted at HAECO. 
 
4.  HAECO is a longstanding Hong Kong company 
providing comprehensive aeronautical engineering 
services to airlines/operators since 1950.  It was 
the subject of a favorable checks referenced in 
reftel C and E.  Related company, Hong Kong Aero 
Engine Services Limited (HAESL), was the subject 
of a separate favorable check referenced in reftel 
D. 
 
5.  On September 6, 2007, the ECO visited HAECO at 
the address above and met with Mr. Moon Chor Chan, 
Supplies Officer.  Mr. Chan stated that Dragonair 
owns the item and it is dedicated to Dragonair 
planes.  The item was actually in the warehouse on 
its way to be serviced and so was not installed in 
an aircraft. ECO inspected the item and notes that 
its product and serial numbers match those 
provided in Reftel A, namely 463001-8130-0413 and 
1734 respectively. As noted in Reftel C and E, 
HAECO is quite familiar with the export control 
rules associated with such items.  The exporter 
also made HAECO and Dragonair aware of the license 
conditions contained in license D328589, as 
required by this license. 
 
6.  HAECO and Dragonair appear to be suitable 
recipients of the subject controlled item since 
HAECO cooperated fully with the PSV and provided 
substantial information on Dragonair's use of the 
item in Hong Kong.  In addition, Dragonair and 
HAECO operate lines of business that are 
consistent with the use of the item.  The ECO 
recommends that this PSV be classified as 
Favorable. 
 
Cunningham