TNAG-2465-FCO40-3589-Hong-Kong-Coordinating-Committee-for-Multilateral-Export-Con-1992 — Page 87

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United States Department of State

Washington, D.C. 20520

Mr. Andrew Burns

Assistant Under Secretary of State

Foreign and Commonwealth Office

United Kingdom

January 17, 1992

WAR'S 087/1

Dear Mr. Burns:

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Based upon the representations of the United Kingdom and Hong Kong Governments and our own review, the United States Government finds that the present Hong Kong export control system is sufficiently effective to warrant extending certain export licensing benefits to Hong Kong. The Hong Kong Government export control system demonstrates a commitment to continuing cooperation on export control matters and implements nuclear, missile, and CBW non-proliferation controls.

Based upon the foregoing, the United States will treat exports to Hong Kong as it does those to COCOM countries. Specifically, the U.S. Department of Commerce will amend its Export Administration Regulations to make exports to, or reexports from, Hong Kong eligible for: (1) general licenses GCG and GCT (the U.S. implementation of the intra-COCOM substitute licensing system); (2) the People's Republic of China and COCOM permissive reexport provisions; (3) enhanced Distribution License benefits; and (4) the 15/15 day processing time for export license applications.

This action places Hong Kong in the most favorable licensing category under U.S. law. It demonstrates confidence on the part of the U.S. Government in the Hong Kong Government's ability to protect against unauthorized transfers.

We expect to hold regular consultations in order to share views on export control issues, to review the continued effectiveness of the Hong Kong export control system, and to collaborate on common export control problems. It is understood that these latter consultations will be held as often as necessary.

It is our understanding that the Hong Kong Government will continue to permit United States Government representatives to conduct pre-license checks and post-shipment verifications and will continue to exchange information in support of export control enforcement.

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