EXPERT TEAM REVIEWS TAIWAN'S 1540 REPORT AND

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 004955

SIPDIS

E.O. 12958: DECL: 12/25/2025
TAGS: PREL PARM TW
SUBJECT: EXPERT TEAM REVIEWS TAIWAN'S 1540 REPORT AND
EXPORT CONTROLS

Classified By: AIT Director Douglas Paal, Reason 1.4 b/d


1. (C) Summary: An EXBS-sponsored team of two
non-proliferation experts spent December 11-18 in Taiwan
evaluating Taiwan's export control regime. Highlights
included a December 12 presentation to an interagency group
reviewing Taiwan's UNSCR 1540 report. After conducting
several interviews with Taiwan agencies involved in export
control, the team concluded that Taiwan had the basis for a
potentially good export control system, but the current
system was hobbled by a lack of coordination between
agencies. The team's detailed report will be presented to
ISN/ECC within a few weeks. End summary.

Review of Taiwan's UNSCR 1540 Report
--------------


2. (C) On December 12, Center for International Trade and
Security (CITS) experts Jay Nash and Anne Wetterwek gave a
presentation reviewing Taiwan's UNSCR 1540 Report to
representatives of Taiwan's Ministry of Economic Affairs;
National Security Bureau, Ministry of Foreign Affairs,
Directorate General of Customs (DGC),Atomic Energy Council,
Department of Health, Council of Agriculture, Bureau of
Armaments and Acquisitions, and Counter Terrorism Office.
After explaining the UNSCR 1540 Committee Review process and
methodology, Nash and Wetterwek noted both strengths and
weaknesses in Taiwan's 38-page report.

Clear Expression of Commitment to Export Control
-------------- ---


3. (C) The team noted that 66 UN members have not yet
submitted their 1540 reports, and that among the 127 reports
submitted thus far, Taiwan's report was relatively
comprehensive, and indicated the potential for an excellent
system of security and controls. Nash and Wetterwek
conducted a paragraph-by-paragraph review of Taiwan's 1540
report. They praised its clear expression of commitment to
anti-terrorism, non-proliferation, and trade security, and
the attention given to intangible transfers of sensitive
technology and data in pending legislation.


4. (C) However, the team identified some areas of the report
that could benefit from further clarification. They noted
that while security measures on chemical, biological and
nuclear materials were addressed, &means of delivery8 and
&related materials8 were not addressed. They noted the
need for clarification on which control measures applied to
imports and which to exports, and for clarification of
current regulations regarding technology transfer, and
transshipment controls.

Interviews with Key Agencies
--------------


5. (C) The CITS team interviewed many of the key agencies
involved in export control in Taiwan. The team concluded
that some agencies, such as the DGC, did not seem sure of
what their role was supposed to be in the export control
process. DGC, National Security Bureau, and the Ministry of
Foreign Affairs all indicated that the Ministry of Economic
Affairs Bureau of Foreign Trade (BOFT) was the key export
control agency in the Taiwan government. The team noted that
Customs officials in Kaohsiung Harbor seemed more sure of
their role and authority, and cooperated more with BOFT than
did the DGC. The team found indications that other Taiwan
ports are not as advanced as Kaohsiung in terms of export
control resources and understanding.


6. (C) The team noted that while Taiwan has a relatively
comprehensive set of export control laws and regulations,
certain key elements were missing, such as technology
controls, brokering and trade facilitation controls, and
clear delineation of the circumstances in which "catch-all"
controls apply. The team especially emphasized that
interagency coordination needs to be strengthened,
particularly on license reviews. The team also recommended
more export control training for both industry and government
officials.


7. (C) Comment: The CITS team enjoyed high-level access and
open exchanges at all the Taiwan agencies they visited. AIT
held briefings with the team at the beginning and end of
their visit and accompanied them to most of their meetings.
While the evaluation methodology of the experts had
significant limitations in that it emphasized laws and
regulations more than actual practice, the fact that a team
of experts visited gave a positive boost to the perception of
a U.S.-Taiwan partnership on export control issues.
PAAL