Yes, that's my understanding. Deeply disturbing news IMHO.
Sure there's a certain intimidation factor when a VIP comes to visit with a huge security detail, but ultimately if the US Government REALLY wanted to threaten Apple they would use pieces of paper to do so (e.g. court orders, sanctions, national security letters, or w/e).
In which case either the device was unlock very quickly or if there's an equally short visit some time later, it's the FBI picking up the device again.
If the government really wanted to Threaten Apple Tim Cook would be visited in the night, and not by someone with a CHP motorcade
This is a Pre-Threat... Threat
Remember this government has no problems killing citizens with drones with out any trial... You do what you are told or you will get a predator missile up your ass