Hong Kong's Reversion to China: Effective Monitoring Critical to Assess U.S. Nonproliferation Risks
NSIAD-97-149
Published: May 22, 1997. Publicly Released: Jun 04, 1997.
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Highlights
Pursuant to a congressional request, GAO reviewed whether U.S. export control policy toward Hong Kong will adequately protect U.S. national security and nonproliferation interests after Hong Kong's reversion to China, focusing on: (1) the potential risks and consequences of continuing to export sensitive technologies to the territory after reversion, given China's past proliferation behavior; (2) how U.S. export controls are currently applied to Hong Kong as compared with China; (3) planned U.S. export control policy toward Hong Kong after reversion; and (4) possible safeguards and monitoring efforts to protect U.S. nonproliferation interests.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Commerce | The Secretary of Commerce should establish appropriate baselines to monitor trends in controlled items exported to Hong Kong and China after Hong Kong's reversion to Chinese sovereignty. |
Closed – Implemented
Commerce reported that it has established a group to monitor trends in exports of controlled items to Hong Kong. It also reported that it has established comprehensive benchmarks, gathered baseline information considered adequate for each benchmark, and will review the situation every 6 months for signs of change. Furthermore, Commerce provided a copy of its "Hong Kong Baseline Monitoring Report" in late 2000, which established a baseline and indicators for data using the Census Bureau's Shipper's Export Declaration forms and data.
|
| Department of Commerce | The Secretary of Commerce, working with the Commissioner of the Customs Service, should systematically assess data already filed by exporters, particularly information on license exceptions and controlled item category numbers, to determine whether the data are sufficiently complete and accurate to monitor trends in exports of nonlicensed controlled items to Hong Kong. If the export data cannot be relied upon for monitoring purposes, the Secretary of Commerce, in consultation with the Commissioner of Customs, should assess the causes for the problems and initiate corrective actions. |
Closed – Implemented
Commerce reported that it has established a group to monitor trends in exports of controlled items to Hong Kong. It also reported that it has established comprehensive benchmarks, gathered baseline information considered adequate for each benchmark, and will review the situation every 6 months for signs of change. Furthermore, Commerce provided a copy of its "Hong Kong Baseline Monitoring Report" in late 2000, which established a baseline and indicators for data using the Census Bureau's Shipper's Export Declaration forms.
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