MTAG: TAIWAN ACTS ON EXPORT CONTROL INTELLIGENCE

C O N F I D E N T I A L TAIPEI 000818

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: 02/24/2025
TAGS: ETTC PARM PREL TW
SUBJECT: MTAG: TAIWAN ACTS ON EXPORT CONTROL INTELLIGENCE

REF: A. TAIPEI 683

B. 04 STATE 243963

Classified By: AIT DIRECTOR DOUGLAS H. PAAL, REASONS 1.4 (b,d)


1. (C) Summary: Taiwan media have reported that the Taoyuan
District Prosecutors' Office raided the residence and company
buildings of Tony Hsieh (Jin-yi) on February 24, 2005
(reftels). A Taiwan Justice Ministry contact called AIT on
the evening of February 24 to alert us to the late-breaking
media reports. Our contact promised a complete report
through "intelligence channels" after the results of the raid
become clearer. End Summary.

Investigation of Tony Hsieh
--------------


2. (C) Taiwan's evening media on February 24 carried an
initial report that the Taoyuan District Prosecutors' Office,
based on information from Taiwan intelligence agencies,
seached the residence and company buildings of Tony Hsieh for
evidence of Hsieh's attempts to export key Scud missile
components to Libya. Further media reports on February 25
added that when Prosecutors questioned Hsieh, he claimed he
did not know the items exported to Libya were controlled
military items. The Prosecutor's Office has requested a
court order to detain Hsieh for further questioning. While
searching his residence on the evening of February 24,
investigators found that Hsieh owned two small companies that
in turn subcontracted to smaller companies to produce
components for missile impulse pumps and turbine masks.
These are the components that were intercepted in London in
1999 in an air cargo shipment bound for Libya from one of
Hsieh's companies. In April 2000 Tony Hsieh was arrested in
Switzerland while on his way from Hong Kong to Libya.
Additional missile components were found in his baggage.


3. (C) According to the media reports, in its four-year
investigation of Tony Hsieh, Taiwan intelligence agencies
found no evidence he was supported by either China or North
Korea. Media reports also quoted Taiwan intelligence sources
that Hsieh once invited a missile expert from the Chung Shan
Institute of Science and Technology to his house to discuss
missile motor component production. However, when Hsieh
showed the expert the blueprint for the component, the expert
declined the request for information.


4. (C) Comment: AIT views the raids and the phone call as
positive attempts by Taiwan authorities to respond to U.S.
export control concerns. The phone call from the Taiwan
Justice Ministry implied the raid was in response to a fax
that AIT/T/ECON sent on February 4 asking for information
about Hsieh. It will be interesting to see what the promised
complete report says the investigators were doing for the
past four years.
PAAL