MTAG: TAIWAN ON EXPORT CONTROL ISSUES

C O N F I D E N T I A L TAIPEI 000683

SIPDIS

STATE FOR NP/CBM, INR/EC, NKWG
STATE PASS AIT/W, NSC FOR WILL TOBEY, VICTOR CHA, AND DAVID
SHEDD

E.O. 12958: DECL: 02/18/2025
TAGS: ETTC PARM PK PREL SY TW

SUBJECT: MTAG: TAIWAN ON EXPORT CONTROL ISSUES
REF: A. STATE 26545


B. STATE 19727

C. 02/17/05 CROUCH-NEELY EMAIL

D. 04 STATE 243963
Classified By: AIT DIRECTOR DOUGLAS H. PAAL, REASONS 1.4 (b,d)
Ref

1. (C) Summary: AIT delivered ref A talking points to BOFT and to NSC on February 14, 2005. BOFT reported on February 18 that the Ecoma Company has provided assurances it will cease trade with Iran. In a meeting with AIT on February 17, BOFT provided updates on several export control cases, and confirmed that March 22-25 would be acceptable dates for EXBS training on legal issues. Separately, in response to ref D demarche, MJIB reported that it has already conveyed results of its investigations of Tony Hsieh to U.S. agencies via intelligence channels. End Summary.
Ecoma Agrees to Cease All Iran Trade
--------------


2. (C) Responding to our ref B demarche on conditions for reconsideration of INPA sanctions, BOFT Director Peter Ho reported to AIT on February 18 that the Ecoma Company had given BOFT assurances that it would immediately cease all trading activities with Iran and would provide BOFT with full information on its dealings with Iran.
She Hong/Hartford Sales to Pakistan
--------------


3. (C) During a February 17 meeting with BOFT, AIT again raised the cases mentioned in our ref A demarche. Director Ho replied that according to BOFT records, during the years 2000 through 2004, the She Hong Company (Hartford) had exported seven shipments of machine tools to Pakistan. After receiving ref A demarche, BOFT instructed Taiwan Customs to provide a list of all end-users identified on the shipping documents for these shipments to Pakistan, and requested Hartford to provide detailed specifications of the items shipped. Ho expressed frustration over the limitations of the computer system currently used by Taiwan Customs and its inability to sort records by the end-user, or to verify the accuracy of the information provided regarding end-users. Ho said that after receiving detailed specifications from Hartford, BOFT will determine and report to AIT on the listed end-users and whether any of the shipments included sensitive high technology commodities.
Long Chang Company Sales to Syria
--------------


4. (C) During the February 17 meeting AIT also raised the ref A case of the Long Chang Company's machine tool sales to Syria. BOFT responded that according to its records and interviews with company executives, the Long Chang Company in May 2003 made two shipments to the Al Taki General Trading Company of Syria, each with two sets of machine tools. Each of the four machine tool sets included a German-made CNC and copies of the international import/export certificate showing Dr. Johannes Heidenhain GmbH as the exporter, Al Taki as the agent, and the &Golden Rose Workshop8 as the end user of these commodities.
Ching Hung Company Sales to Syria
--------------


5. (C) BOFT also reported on the ref A case of the Ching Hung Company's two shipments of electrical discharge machines to Al Taki in 2003. The BOFT investigation indicated that these two shipments were Ching Hung's only dealings with Al Taki and only exports to Syria. BOFT's investigation found the machines were not sensitive high technology commodities.
EXBS Training
--------------


6. (C) BOFT confirmed that the dates March 22-25 would be acceptable for holding the EXBS legal training.
Tony Hsieh Investigation
--------------


7. (C) Separately, Taiwan's MJIB responded to our and BOFT's inquiries for information on Tony Hsieh (ref D) by informing us that the complete results of its investigation into Hsieh and his companies had already been conveyed to Washington agencies via intelligence channels.
PAAL