Sat, Mar 25, 2006 - Page 7 News List

HK cargo oversight worries US

RISKY?Some US officials are concerned by the news that a Hong Kong company is to operate the equipment used to scan cargo for nuclear radiation in the Bahamas


This undated photograph provided by the US National Nuclear Security Administration shows a specialized radiation detector, known as a ``modified straddle carrier,'' scanning cargo containers for evidence of radioactive materials at a seaport in the Bahamas. The radiation detectors are the white panels mounted vertically, right, on the front of the vehicle.


In the aftermath of the Dubai ports dispute, the Bush administration is hiring a Hong Kong conglomerate to help detect nuclear materials inside cargo passing through the Bahamas to the US and elsewhere.

The administration has acknowledged the no-bid contract with Hutchison Whampoa Ltd represents the first time a foreign company will be involved in running a sophisticated US radiation detector at an overseas port without US customs agents present.

Freeport in the Bahamas is 100km from the US coast, where cargo would be likely to be inspected again. The contract is currently being finalized.

The administration is negotiating a second no-bid contract for a Philippine company to install radiation detectors in its home country, according to documents obtained by the press. At dozens of other overseas ports, foreign governments are primarily responsible for scanning cargo.

While US President George W. Bush recently reassured the US Congress that foreigners would not manage security at US ports, the Hutchison deal in the Bahamas illustrates how the administration is relying on foreign companies at overseas ports to safeguard cargo headed to the US.

Hutchison Whampoa is the world's largest ports operator and among the industry's most-respected companies. It was an early adopter of US anti-terror measures. But its billionaire chairman, Li Ka-Shing (李嘉誠), also has substantial business ties to China's government that have raised US concerns over the years.

"Li Ka-Shing is pretty close to a lot of senior leaders of the Chinese government and the Chinese Communist Party," said Larry Wortzel, head of a US government commission that studies China security and economic issues. But Wortzel said Hutchison operates independently from Beijing, and he described Li as "a very legitimate international businessman."

"One can conceive legitimate security concerns and would hope either the Homeland Security Department or the intelligence services of the United States work very hard to satisfy those concerns," Wortzel said.

Three years ago, the Bush administration effectively blocked a Hutchison subsidiary from buying part of a bankrupt US telecommunications company, Global Crossing Ltd, on national security grounds.

And a US military intelligence report, once marked "secret," cited Hutchison in 1999 as a potential risk for smuggling arms and other prohibited materials into the US from the Bahamas.

Hutchison's port operations in the Bahamas and Panama "could provide a conduit for illegal shipments of technology or prohibited items from the West to the PRC [People's Republic of China], or facilitate the movement of arms and other prohibited items into the Americas," the now-declassified assessment said.

The CIA currently has no security concerns about Hutchison's port operations, and the Bush administration believes the pending deal with the foreign company would be safe, officials said.

Supervised by Bahamian customs officials, Hutchison employees will drive the towering, truck-like radiation scanner that moves slowly over large cargo containers and scans them for radiation that might be emitted by plutonium or a radiological weapon.

Any positive reading would set off alarms monitored simultaneously by Bahamian customs inspectors at Freeport and by US Customs and Border Protection officials working at an anti-terrorism center 1,300km away in northern Virginia. Any alarm would prompt a closer inspection of the cargo, and there are multiple layers of security to prevent tampering, officials said.

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