Identifier
Created
Classification
Origin
05TAIPEI2974
2005-07-11 07:35:00
CONFIDENTIAL
American Institute Taiwan, Taipei
Cable title:  

TAIWAN EXPORT LICENSE APPLICATIONS AND P2S5

Tags:  ETTC PARM PINR PREL PTER TW IT 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L TAIPEI 002974 

SIPDIS

DEPT FOR EAP/TC, NP/ECC, NP/CBM

E.O. 12958: DECL: 07/08/2015
TAGS: ETTC PARM PINR PREL PTER TW IT
SUBJECT: TAIWAN EXPORT LICENSE APPLICATIONS AND P2S5

REF: STATE 125089

Classified By: AIT Acting Director David Keegan, Reason 1.4 b/d

C O N F I D E N T I A L TAIPEI 002974

SIPDIS

DEPT FOR EAP/TC, NP/ECC, NP/CBM

E.O. 12958: DECL: 07/08/2015
TAGS: ETTC PARM PINR PREL PTER TW IT
SUBJECT: TAIWAN EXPORT LICENSE APPLICATIONS AND P2S5

REF: STATE 125089

Classified By: AIT Acting Director David Keegan, Reason 1.4 b/d


1. (C) Summary: AIT delivered reftel U.S. comments on
Taiwan export license applications to Board of Foreign Trade
(BOFT) Export Controls Task Force Head Wally Su on July 7.
BOFT will do further investigation of the proposed sale to
Pakistan before deciding whether or not to grant a license.
Su discussed the status of the P2S5 now stored in Kaohsiung
and how he solved the problem of its disposal. End summary.


2. (C) AIT delivered to BOFT on July 7 reftel U.S. non-paper
comments on the applications for Taiwan export licenses by
the Ching Hung Machinery Company to export a "CHMER Wire Cut
EDM" to end user NED University of Engineering and Technology
(NEDUET) in Karachi, Pakistan and by the Far East Machinery
Company to export a "CNC Horizontal Boring and Milling
Machine" to end user Faraz Gostar-E-Sepahan in Isfahan, Iran.


3. (C) BOFT Wally Su took on board the U.S. comment that
although the machine tools were not controlled items and
there was no derogatory information in U.S. databases on the
listed end-users, Taiwan should still weigh carefully the
risk of diversion in its review of these cases. Su indicated
that BOFT would not approve either application without
further review, and would consult with Japan regarding the
appearance of NEDUET on Japan's end-user blacklist and with
Taiwan intelligence on its report that Pakistan might use the
machine tool might to produce WMD components. Su was pleased
with the quick USG response time of less than two weeks.

Status of P2S5 Chemical Shipment
--------------


4. (C) Su told AIT that he personally was responsible for
the resolution of the P2S5 disposal problem. As part of his
research on procedures to safely destroy the material (which,
it turns out, are fairly complicated),Su contacted the
Italian company that manufactured it, Italmatch Chemicals.
To his surprise, Italmatch was totally unaware of Taiwan's
many efforts to get rid of the material and readily agreed to
take it back if the material was still in good condition and
if Taiwan paid for the shipping. Based on photos Su provided
Italmatch of the P2S5 containers and the warehouse where they
are stored, and information on the storage conditions,
Italmatch concluded the material was still in good condition
with significant commercial value. The P2S5 is now scheduled
to be shipped to Italmatch in Italy at the end of July.


5. (C) Su told AIT that all 158 drums of P2S5 are still in
the same storage facility that they were moved to when
off-loaded from the North Korean ship. The drums have no
odors or exterior signs of rust or decay. The drums have not
been moved and have remained sealed. BOFT has had control
over the drums since they were seized almost two years ago.
Some time ago, BOFT sent a legal notice to the listed North
Korean end-user Daesong Corporation asking if it wished to
file a claim. Daesong did not respond and there were no
subsequent requests for compensation or for the material to
be returned. As far as BOFT was aware, North Korea has not
taken any legal action to recover the material or for
compensation. Su said that since Daesong did not respond to
the notice BOFT sent, its legal claim to the material was
forfeited.

KEEGAN