Hong Kong and Internet actions

[David Farber <farber () central cis upenn edu>]

         STATEMENT CONCERNING POLICE ACTION ON INTERNET PROVIDERS
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                         PLEASE DISTRIBUTE FREELY


The Hong Kong Government has once again exposed itself and the territory's 
reputation to international ridicule with Friday's raids against and shut-down 
of seven Internet suppliers.


The raids not only severed links to the Internet and international E-mail for 
up to 10,000 companies and individuals without warning, but they also indicate 
a complete breakdown in communication between two government departments, the 
Police Commercial Crime Bureau (CCB) and the Office of the Telecommunications 
Authority (OFTA).


In this regard the following points must be raised and will be discussed at a 
press conference and open forum on Monday March 6. This event is planned to be 
held at the Foreign Correspondents Club at 3PM, however this venue has yet to 
be confirmed. Confirmation of venue and time can be obtained by calling 
(852) 2866-6018 on Monday morning.


- The raids were carried out by the computer crime division of the CCB 
  accompanied by officials from OFTA for unlicensed provision of 
  telecommunications services by the seven companies.


- OFTA, as the governing body in such cases, had been carrying out its own 
  investigation into the same issues and had already entered into discussions 
  with all the affected providers.


- OFTA has issued a statement saying that it had not initiated the raids and 
  was only providing technical support. It also says the raids were a result 
  of a police investigation into "commercial crimes involving computer 
  hacking."


- No mention of computer hacking has ever been made by police either in their 
  search warrants, charges or subsequent statements to the press.


- Eight people were arrested during the raids and detained for questioning on 
  issues related to providing a telecommunications service without a license. 


- Never was any supplier warned that they would be raided and charged with an 
  offense.


- Despite working together it seems that OFTA and the police never actually 
  talked about the two coinciding investigations. In any case OFTA has 
  wrongly, and possibly purposely, led the providers into believing they 
  were on firm ground, knowing full well that a raid was imminent.


- OFTA in a letter dated January 19 asked all providers for details of their 
  services and equipment. The letter said that after the investigation was 
  complete OFTA would advise the companies on licensing requirements and 
  procedures.


- OFTA had verbally told some providers that their services were not in 
  danger until the investigation was complete, although it would be 
  advisable for them to apply for a Public Non-Exclusive Telecommunications 
  Service (PNETS) license.


- OFTA has been quoted in the press as admitting to "grey areas" in the 
  telecommunications ordinance, particularly in regards to PNETS.


- The raids stem from a complaint from "an international telecommunications 
  supplier" according to a police source. This would therefore point to 
  either Hong Kong Telecom or the only surviving Internet supplier, Supernet. 
  The later of which has publicly stated that it would use OFTA to battle 
  price cutting moves by its unlicensed competitors.


- Why was the CCB involved in a simple HK$700 licensing issue on the same 
  level as illegal hawking? 
  Who is really behind this operation?


- What does this signal for the future of freedom of information and freedom 
  of speech in Hong Kong?


- What does this do to Hong Kong's International business reputation 
  regarding competition and free trade?


- What effect will this have on the literally hundreds of local Bulletin 
  Board Systems (BBS) who also provide various forms of telecommunication 
  services? Such services include Email, which was specifically pointed out 
  by C.L. Ng of OFTA as illegal without a license on Friday afternoon at the 
  site of one of the affected providers. Why were these and many commercial 
  firms operating similar services not raided?


Monday's event will be hosted by one of the affected providers, Asia On-Line 
Ltd. Guest representing a cross section of the public and private sector will 
be invited to take part as will individuals now facing criminal charges over 
this issue.


Confirmation of venue and time can be obtained by calling (852) 2866-6018 on 
Monday morning.


Please distribute this message freely.


All are welcome.






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       Name:            YEUNG Po-kei, Percy
       Territory:       Tai Po, New Territories, HONG KONG
       Voice Telephone: (852)2606-9325
       Pager:           (852)116-3388 A/C 6481
       Bulletin Board:  (852)2658-9716 - SuperBoard BBS III
       InterNet EMail:  percy () hk super net, percy () asiaonline net
       Facsimile:       (852)2602-6814
       Telex:           51666 KCRC HX


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