TAIWAN DPRK NON-PAPER: ADDRESSING U.S. CONCERNS

S E C R E T AIT TAIPEI 002800 SIPDIS SIPDIS E.O. 12958: DECL: 08/16/2016 TAGS: PGOV PREL TW SUBJECT: TAIWAN DPRK NON-PAPER: ADDRESSING U.S. CONCERNS OVER DPRK MISSILE TESTS REF: TAIPEI 2701 CLASSIFIED BY: AIT DEPUTY DIRECTOR ROBERT S. WANG. REASON(S): 1.4 (B/D) ¶1. (S) MOFA NORTH AMERICAN AFFAIRS DIRECTOR-GENERAL LEO LEE (CHEN-JAN) CONVEYED A TAIWAN INTERAGENCY DECISION ON NORTH KOREA-RELATED PROLIFERATION ISSUES TO AIT ON AUGUST 15. LEE EXPLAINED THAT THE "NON-PAPER" (TEXT IN PARA 2) WAS DRAFTED IN RESPONSE TO AIT'S REPEATED URGING THAT TAIWAN RESTRICT ITS TRADE WITH NORTH KOREA AND, IN PARTICULAR, TO AITS JULY 10 EXPRESSION OF CONCERN OVER NORTH KOREAS JULY 4 MISSILE TESTS (SEE REFTEL). KEY MEASURES INCLUDE ADDING 340 ITEMS TO THE SENSITIVE COMMODITY LIST (SCL) AND INCREASING REQUIREMENTS FOR DPRK VISA APPLICATIONS. LEE ALSO STRESSED THAT THIS INTERAGENCY DRAFT WAS INTENDED TO DEAL ONLY WITH NORTH KOREA, AND THAT THE MINISTRY OF ECONOMIC AFFAIRS (MOEA) IS IN THE PROCESS OF DRAFTING A BROADER TAIWAN POLICY ON PROLIFERATION AND EXPORT CONTROL. (COMMENT: THE NON-PAPER ACTUALLY MENTIONS IRAN IN ONE INSTANCE. END COMMENT.) ¶2. (S) BEGIN TAIWAN NORTH KOREA NON-PAPER (GRAMMAR AS IN ORIGINAL ENGLISH VERSION PRESENTED TO AIT): ON JULY 10, YOUR SIDE RAISED CERTAIN ISSUES REGARDING NORTH KOREA'S RECENT MISSILE TEST. IN RESPONSE, WE CONVENED AN INTRA-AGENCY MEETING ON JULY 26 TO DISCUSS THIS IMPORTANT MATTER. THE MEETING REVIEWED THE EXISTING MEASURES THAT WE HAVE TAKEN REGARDING NORTH KOREA IN THE FOLLOWING AREAS: EXPORT CONTROLS; MOVEMENT OF PEOPLE, COMMERCIAL SHIPS AND CHARTERED FLIGHTS TO AND FROM NORTH KOREA; FINANCE CONTROLS; AND TRANSNATIONAL CRIMES. WE HAVE DECIDED TO TAKE THE FOLLOWING MEASURES IN THE AFOREMENTIONED AREAS: (1) EXPORT CONTROLS SOME 340 ITEMS WILL BE ADDED TO THE SENSITIVE COMMODITY LIST (SCL) FOR EXPORTS TO NORTH KOREA AND IRAN. OUR LAW ENFORCEMENT AGENCIES HAVE INVESTIGATED THE COMPANIES INVOLVED IN THE 10 CASES SUSPECTED OF VIOLATING THE STRATEGIC HIGH TECHNOLOGY COMMODITY (SHTC) LIST. WE HAVE PUT THE SAID COMPANIES ON THE LIST OF HIGH-RISK COMPANIES THAT ARE TO BE CLOSELY MONITORED TO PREVENT THEM FROM IGNORING EXPORT CONTROL MEASURES ON SHTC. OUR CUSTOMS OFFICIALS WILL REINFORCE INVESTIGATION PROCEDURES IN ACCORDANCE WITH THE NEWLY REVISED OPERATIONAL DIRECTIONS FOR THE CLEARANCE AND MANAGEMENT OF TRANSSHIPMENT GOODS CONCERNING TRANSSHIPMENT TO NORTH KOREA. 
 (2) MOVEMENT OF PEOPLE, COMMERCIAL SHIPS AND CHARTER FLIGHTS WE ARE RAISING THE CLASS OF VISA APPLICATIONS BY NORTH KOREA VISITORS FOR THE NEXT 6 MONTHS FROM THE EXISTING LEVEL THREE (COUNTRIES UNDER OBSERVATION) TO THE STRICTEST LEVELS FOUR AND FIVE (COUNTRIES OF HIGH RISK.) VISA APPLICATIONS BY NORTH KOREA NATIONALITIES MUST NOW BE APPROVED BY MOFA. IRREGULAR NORTH KOREAN SHIPS AND THOSE SUSPECTED OF CARRYING SHTC ARE LIKELY TO BE GRANTED PERMISSION TO ENTER OUR HARBORS. (NOTE: MOFA SUBSEQUENTLY ADVISED AIT THAT "IRREGULAR" MEANS OCCASIONAL OR UNSCHEDULED. END NOTE.) HOWEVER, IN SUCH INSTANCES, WE WILL PROHIBIT THEIR CREWS FROM DISEMBARKING THE SHIP AND ENTERING THE COUNTRY. OUR LAW ENFORCEMENT AGENCIES WILL ALSO MAKE THEIR BEST ENDEAVORS TO INVESTIGATE ALL POSSIBLE ILLEGAL ACTIVITIES, INCLUDING VIOLATIONS OF SHTC REGULATIONS, AND MONITOR NORTH KOREAN SHIPS TO KEEP UNAUTHORIZED PERSONNEL FROM LEAVING OR APPROACHING THE SHIP. ANY CHARTERED FLIGHT TO AND FROM NORTH KOREA REQUIRES APPROVAL IN ADVANCE BY OUR AUTHORITY. THERE HAS BEEN NO SUCH APPLICATION OVER THE PAST 4 YEARS. SHOULD THERE BE ONE IN THE FUTURE, WE WILL REVIEW IT WITH STRICTEST CARE. (3) FINANCE CONTROLS BASED ON LISTS OF TERRORISTS AND TERRORIST-CONNECTED FINANCIAL ORGANIZATIONS PROVIDED BY YOUR SIDE, WE HAVE REQUIRED OUR MONETARY ORGANIZATION TO STRENGTHEN THEIR MONITORING OF FINANCIAL TRADES WITH NORTH KOREA. ALL SUSPICIOUS TRANSACTIONS ARE TO BE IMMEDIATELY REPORTED TO OUR BUREAU OF INVESTIGATION. OUR LAW ENFORCEMENT AGENCIES WILL FORCEFULLY INVESTIGATE AND PROSECUTE CASES OF SUSPICIOUS FINANCIAL ACTIVITIES RELATION TO NORTH KOREA IN ACCORDANCE WITH THE MONEY LAUNDRY CONTROL ACT. VIOLATORS OF THE ACT CAN BE INCARCERATED FOR UP TO 10 YEARS. (4) TRANSNATIONAL CRIMES A COMPREHENSIVE MONITORING NETWORK HAS BEEN BUILT BY OUR COAST GUARD TO PREVENT POSSIBLE CRIMINAL OR ILLEGAL ACTIVITIES IN OUR TERRITORIAL WATERS. IT INTEGRATES RADAR MONITORING WITH AIR AND SHIP PATROLS ALONG THE COASTLINE. WE WILL CONTINUE TO REINFORCE THE NETWORK. SHOULD ANY ILLICIT ACTIVITY BY A NORTH KOREA SHIP BE DETECTED, WE WILL IMMEDIATELY STOP THEM. WE WILL CONTINUE TO IMPROVE OUR EFFICIENCY IN COUNTERING TRANSNATIONAL CRIMES (SUPER NOTES, COUNTERFEIT CIGARETTES, ETC.) (NOTE: MOFA SUBSEQUENTLY ADVISED AIT THAT "SUPER NOTES" MEANS DPRK COUNTERFEIT LARGE-DENOMINATION U.S. CURRENCY. END NOTE.) THIS HAS BEEN ACCOMPLISHED IN THE PAST THROUGH THE ENHANCEMENT OF EXISTING COOPERATION WITH YOUR SIDE AND THE DESIGNATION OF A SPECIFIC PROSECUTOR TO HANDLE SUCH CASES. END NON-PAPER. YOUNG