TAIWAN TIFA: SESSION 6: EXPORT CONTROL AND

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001876

SIPDIS

SIPDIS

STATE FOR EAP/RSP/TC, STATE PASS USTR FOR DEPUTY USTR
BHATIA FROM DIRECTOR YOUNG

E.O. 12958: DECL: 05/26/2031
TAGS: ECON TW
SUBJECT: TAIWAN TIFA: SESSION 6: EXPORT CONTROL AND
MEGAPORTS

REF: TAIPEI 1727

Classified By: AIT Deputy Director David J. Keegan, Reason 1.4 b


1. (C) Summary: On May 26, 2006, AIT/Washington Director of
Trade and Commercial Programs Rick Ruzicka and Ministry of
Economic Affairs Director General Chih-Ping Huang chaired the
U.S-Taiwan TIFA session 6 on secure trade and held
discussions that covered Taiwan's progress on implementation
of its export control commitments, and other export control
issues. The session produced agreed statements of positive
outcomes on export control cooperation, the container
security initiative, Megaports, and Taiwan's application to
join CAPERS. End summary.

Export Control Cooperation
--------------


2. (C) Ruzicka asked for the implementation timetable for
the Taiwan game plan to monitor high tech exports and then
urged Taiwan not to upgrade relations with Iran. Huang
responded that effective June 1, 2006, Taiwan will add 87
items to its sensitive high technology commodities schedule
(SHTC) and said Taiwan is working on a review of the December
2005 U.S. request to add new items. Huang expressed
appreciation for U.S. assistance in export control and then
asked to be provided with a revised export control list to
Libya. He did not comment on the U.S. request about Iran. The
agreed upon text of the public statement on this outcome is
as follows:

Begin Text: AIT and TECRO recognize progress in securing
trade and reaffirmed the importance of continuing to enhance
efforts towards this end. The U.S. welcomes that as of June
1, 2006 Taiwan will add 87 items to its list of SHTC items
subject to export controls to North Korea and Iran, and that
Taiwan will consider more items be included in the SHTC in
the future. End Text.

Container Security Initiative
--------------


3. (C) Huang said that Taiwan was eager to move forward with
expanding the container security initiative to Keelung
harbor, but in order to do so, the U.S. needed to amend the
existing memorandum of understanding or create a new one to
include Keelung harbor. Ruzicka promised that AIT would work
with U.S. Customs and Border Patrol to produce a new or
revised memorandum. The agreed upon text of the public
statement of the outcome is as follows:

Begin Text: The U.S. appreciates the seizure of $1.99
million in counterfeit U.S. currency at Kaohsiung Port since
joining CSI, and welcomes Keelung Harbor's active
preparations to join CSI to expand cooperation with the
United States in fighting against global terrorism. End Text.

Megaports
--------------


4. (C) After the Megaports public outcome was changed to a
private outcome, Huang said that a memorandum of
understanding (MOU) was signed by TECRO and AIT in
Washington, DC. Huang then asked how to handle queries from
the press about the new MOU. Ruzicka responded that he would
check the facts on whether an MOU was in fact signed after
which they would discuss whether an additional public outcome
would be necessary. The agreed upon text of the private
outcome (i.e., not to be included in press statements) is as
follows:

Begin Text: AIT and TECRO welcome the signing of an MOU on
Megaports and look forward to the next steps in
implementation. End Text.

Taiwan's Application to Join CAPERS
--------------


5. (C) Huang welcomed the idea of Taiwan joining CAPERS
(Customs Asia-Pacific Reporting System) and said Taiwan
looked forward to signing a MOU. Huang also agreed to the
U.S. language of the proposed private outcome. The agreed
upon text of the private outcome is as follows:

Begin Text: CAPERS helps strengthen and safeguard trade
relationships, enhances the prevention of
narcotics/contraband smuggling, and assists with the
detection of other violations of Customs laws by the timely

TAIPEI 00001876 002 OF 002


exchange of information, and AIT welcomes the TECRO's support
for these goals. End Text.


6. (U) USTR cleared this cable.
YOUNG