1. (S) On June 30, BOFT delivered to AIT/T copies of
letters to She Hong Industrial Company, the Directorate
General of Customs and other Taiwan agencies regarding
action taken in response to USG information about the
firm's possible involvement in weapons proliferation. The
following are translations of the three letters. Originals
and attachments will be transmitted to the Department by
classified e-mail.

Letter to She Hong Industrial Co.


--------------------------



2. (S) Begin translation of text.

Ministry of Economic Affairs (MOEA) Bureau of Foreign Trade
Memorandum

For: File
Memo Date: 16 February 2006
Memo No: 09501502711
Delivery Precedence: Most Urgent
Classification (Declassification date): blank
Attachment: None

Subject:

In accordance with the requirement for Strategic High-Tech
Commodity (SHTC) export control, your company must comply
with SHTC export control regulations for all exports to
companies abroad, effective immediately.

Details:

A. According to information, the Pakistani company - K.M.
Enterprise, and the Pakistani organization - National
Development Complex may purchase machine tools and other
equipments form your company to manufacture and develop
nuclear, bio-chemical weapons, and missiles for military
uses.

B. To prevent your export goods from being transferred
illegally for military use, effective immediately please
apply for export licenses by submitting SHTC export license
applications, warranty documents, product model catalogs or
instructions, and other pertinent information for all
commodities destined for the above mentioned Pakistani
company and organization. Once the export licenses are
issued, you may present your commodities to the Customs
Offices for export.

Original copy sent to She Hong Industrial Company Ltd.

End translation.

Letter to Directorate General of Customs


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3. (S) Begin translation of text.

Ministry of Economic Affairs (MOEA) Bureau of Foreign Trade
Memorandum

For: File
Memo Date: 16 February 2006
Memo No.: 09501502710
Delivery Precedence: Most Urgent
Classification (Declassification date): Secret (20 February
2008)
Attachment: two pages

Subject:

In accordance with the requirement for Strategic High-Tech
Commodity (SHTC) export control, please continue to list
"She Hong Industrial Company Ltd." (xiehong gongye gufen
youxian gongsi) in the risk management system of the
Customs Office as one of the high-risk companies.

Details:

A. According to information, She Hong Industrial Company
Ltd. may possibly export SHTC to Syria and Pakistan for
developing military weapons. Please notify all Customs
Offices under your jurisdiction to tighten inspection on
this company's export items.

(1) For all commodities destined for designated importers
(see attachment for detailed information), SHTC export
license documents must be obtained in advance and provided
to the Customs Offices. Please notify MOEA Bureau of
Foreign Trade of the companies that fail to comply with
this regulation.

(2) For all commodities destined for other non-designated
importers, if these goods are under suspicion of being SHTC
without an export license, please direct these cases --
along with their export declaration documents, product
model catalogs or instructions, produce order forms or
contracts, and other pertinent documents, to MOEA Bureau of
Foreign Trade for investigation.

B. An updated copy of the SHTC Exporter Watch List is
attached.

Original copy sent to Ministry of Finance (MOF) Directorate
General of Customs
Cc: MOF Keelung, Taipei, Taichung, and Kaohsiung Customs
Offices (including the SHTC Exporter Watch List)

End translation.

Letter to Other Agencies


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4. (S) Begin translation of text.

Ministry of Economic Affairs (MOEA) Bureau of Foreign Trade
Memorandum

For: File
Memo Date: 16 February 2006
Memo No.: 09501502712
Delivery Precedence" Most Urgent
Classification (Declassification date): Secret (20 February
2008)
Attachment: two pages

Subject:

Please review the attachment for the updated "Special cases
for SHTC License Required List." All companies listed in
the attachment must apply for SHTC licenses to submit to
Customs Offices before shipping commodities to the
designated import companies abroad. Please note and take
appropriate action.

Details:

A. In reference to MOEA Bureau of Foreign Trade memorandum
number 09501501382.

B. Add Pakistani company - K.M. Enterprise and Pakistani
organization - National Development Complex, to the
designated import company list of She Hong Industrial
Company Ltd.

Original copy sent to Science Park Administration, Southern
Science Park Administration, Preparatory Office of Central
Science Park Administration, the Executive Yuan Council of
Agriculture Ping-tung Agricultural Biotechnology Park
Administration, MOEA Economic Processing Zone
Administration, and MOEA Bureau of Foreign Trade Kaohsiung
Office

CC: MOEA Bureau of Foreign Trade, Department of Import and
Export Licensing and Administration

End translation.
YOUNG