Cablegate: Extrancheck: Pre-License Check: Egs (Asia) Limited

VZCZCXYZ0014
RR RUEHWEB

DE RUEHHK #2046 3100831
ZNR UUUUU ZZH
R 060831Z NOV 09
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 8901
RHMFIUU/HQ BICE WASHINGTON DC

UNCLAS HONG KONG 002046

USDOC FOR 532/OEA/MCANNER
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR PATRICK SANTILLO
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS

SIPDIS

E.O. 12958: N/A
TAGS: BMGT BEXP HK ETRD ETTC
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: EGS (ASIA) LIMITED

REF: A) BIS e-mail PLC request dated October 14, 2009 B) D423559

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 EGS (Asia) Limited, 9th Floor South, Somerset
House, Taikoo, Quarry Bay, Hong Kong (EGS). The purpose of the visit
was to determine the suitability of EGS to be the ultimate consignee
and end user of an Orion inertial navigation system that is the
subject of license application D423559. The item (ECCN 7A103) is
controlled for missile technology (MT) reasons. The license
applicant is Teledyne TSS Ltd of the United Kingdom.

3. A search of the Hong Kong Companies Registry reveals that EGS
has been in existence since 1996. Its registered capital is the Hong
Kong equivalent of USD 1.5 million.
4. A review of the company's web site (www.egssurvey.com) reveals
that the EGS Group (of which EGS in Hong Kong is a part) is an
international group of companies that provides earth science and
oceanographic services including geophysical surveying and
hydrographic surveying and.

5. On November 3, 2009, ECO visited the company and met with Mr.
Leung Kong Wing, Anderson, Operation Manager, Electronics Division.
Mr. Leung provided background on the company and its operations in
Hong Kong. He stated that EGS in Hong Kong had, for example,
provided significant survey work in support of the construction of
the Hong Kong international airport as well as the construction of
bridges in Hong Kong. Typically, the company is a subcontractor for
larger HK government contractors. Mr. Leung stated that his company
is unable to operate in Mainland China because of China's limitation
on the use of foreign (non-mainland) service providers in this
field.

6. As to the specific item that is the subject of license
application D423559, Mr. Leung stated that it would be used to
upgrade existing equipment used for seabed mapping. Mr. Leung
stated that the item would be used on a EGS vessel and would not be
provided to third parties (whether independently or as part of the
vessel).

7. Based on the information detailed herein, ECO believes EGS to be
a suitable recipient of controlled U.S. origin technology.

MARUT

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