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Identifier
Created
Classification
Origin
05TAIPEI2672
2005-06-20 07:16:00
CONFIDENTIAL
American Institute Taiwan, Taipei
Cable title:  

(C) TAIWAN REPORTS ITALIAN MANUFACTURERS WILLING

Tags:   ETTC  KNNP  PARM  PREL  ECON  TW 
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200716Z Jun 05
						C O N F I D E N T I A L TAIPEI 002672 

SIPDIS

DEPT FOR EAP/TC

E.O. 12958: DECL: 06/20/2015
TAGS: ETTC KNNP PARM PREL ECON TW
SUBJECT: (C) TAIWAN REPORTS ITALIAN MANUFACTURERS WILLING
TO ACCEPT CHEMICALS

REF: A. STATE 109074


B. TAIPEI 2593

Classified By: AIT Director Douglas H. Paal, Reason 1.5 b/d



1. (C) On June 20, AIT/T Economic Section Chief met with
Bureau of Foreign Trade (BOFT) Chief Secretary Peter Ho to
discuss the disposal of 39,500 kg of phosphorus
pentasulfide (P2S5) seized by Taiwan authorities in August


2003. AIT/T had delivered information on how to destroy
the chemical to BOFT on June 13. Ho requested another
meeting to inform AIT/T that the Italian manufacturer of
the chemical, Italmatch Chemicals, had agreed to accept the
return of the P2S5. Ho reported that Taiwan officials had
reached this understanding with the firm the previous week,
after the firm had a chance to review photos of the
chemical drums to confirm that they had been stored
properly. According to Huang, the Italian firm has agreed
to accept the P2S5 free of charge if Taiwan pays for
shipping costs (c&f). Italmatch will pay to insure
shipment. BOFT finds the terms acceptable and plans to
proceed with returning the chemicals. The Director General
of BOFT has approved the plan and is waiting for the
Minister of Economic Affairs to give final approval.



2. (C) Economic Section Chief told Ho that the United
States found this solution to be perfectly acceptable.
Economic Section Chief also noted that the United States
would want to be able to verify the return to the
manufacturing
company and asked that BOFT keep AIT/T fully informed of
the plans to ship the chemicals. He asked specifically
that BOFT notify AIT/T of the shipping company to be used,
the name of the actual ship, its route and schedule. Ho
replied that Taiwan would be willing to share all
information regarding the shipment with the United States.
He expects to have more detailed plans after BOFT has more
information from Italmatch later in the week.



3. (C) Economic Section Chief noted to Ho that this marked
a change from what BOFT had told AIT/T earlier about the
possibility of returning the P2S5 to the manufacturer.
Taiwan had previously indicated that the firm was unwilling
to accept return of the chemical. Ho agreed but did not
offer an explanation. BOFT Export Control Working Group
Chief Wally Su later told AIT/T that Taiwan's
representative office in Rome had failed to accurately
communicate Taiwan's request to Italmatch. After BOFT
contacted the firm directly and thoroughly explained the
situation, Italmatch was quite willing to accept return of
the chemical.
PAAL