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Identifier
Created
Classification
Origin
06TAIPEI2532
2006-07-27 08:38:00
SECRET
American Institute Taiwan, Taipei
Cable title:  

MTAG:JULY 2006 UPDATE ON TAIWAN EXPORT CONTROL

Tags:  MTCRE PARM TW ECCT 
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VZCZCXRO2518
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ZNY SSSSS ZZH
O 270838Z JUL 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1294
INFO RUEHRL/AMEMBASSY BERLIN PRIORITY 0127
RUEHBY/AMEMBASSY CANBERRA PRIORITY 4255
RUEHLO/AMEMBASSY LONDON PRIORITY 0142
RUEHOT/AMEMBASSY OTTAWA PRIORITY 0718
RUEHGP/AMEMBASSY SINGAPORE PRIORITY 6525
RUEHKO/AMEMBASSY TOKYO PRIORITY 7866
RUEHGZ/AMCONSUL GUANGZHOU PRIORITY 9449
RUEHHM/AMCONSUL HO CHI MINH CITY PRIORITY 0057
RUEHHK/AMCONSUL HONG KONG PRIORITY 6682
RUEHNH/AMCONSUL NAHA PRIORITY 0017
RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 0373
RUEHGH/AMCONSUL SHANGHAI PRIORITY 0267
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHMFISS/HQ BICE WASHINGTON DC PRIORITY
						S E C R E T SECTION 01 OF 02 TAIPEI 002532 

SIPDIS

SIPDIS

STATE FOR EAP/TC AND ISN/MTR

E.O. 12958: DECL: 07/27/2026
TAGS: MTCRE PARM TW ECCT
SUBJECT: MTAG:JULY 2006 UPDATE ON TAIWAN EXPORT CONTROL

REF: STATE 119654

Classified By: AIT ADDIR Charles E. Bennett, REASONS 1.4 B/C



1. (S) Summary: On July 24, AIT delivered to the Taiwan
Bureau of Foreign Trade (BOFT)ref A talking points on recent
machine tool transfers to Syria. At the same meeting, the
AIT Container Security Initiative (CSI) Team Leader discussed
in detail technical issues related to the inspection of
cargoes transiting Taiwan ports. BOFT suggested holding an
interagency meeting on inspecting transit cargo in Kaohsiung
in late August. BOFT said it is working with an interagency
group to recommend measures to demonstrate Taiwan's
displeasure over recent North Korean missile tests.
Separately, AIT has forwarded the results of BOFT's
investigation of Roundtop and Dah Lih companies to EAP/TC and
ISN/MTR via email. End summary.

Eumatech Machine Tools to Syria


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





2. (S) AIT delivered ref a talking points/non-paper on
machine tool transfers to Syria by Taiwan's Eumatech Company
to the BOFT Export Controls Task Force Head Wally Su. Su
noted that in its previous investigations of Eumatech, it had
confirmed that machine tools had been transferred to Syria.
However, he noted that the investigation begun some months
ago was still not finished. He blamed the long investigation
time on the number of agencies involved.

Discussions of Transit/Transshipment Inspection


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

--



3. (S) At the same meeting, the AIT CSI Team Leader
discussed in detail some of the technical issues related to
procedures for inspection of cargoes transiting or
transshipping Taiwan ports. BOFT suggested that CSI officers
share their insights on these procedures with a larger group
of Taiwan officials, including Customs officers from Taipei,
Keelong, and Kaohsiung. BOFT suggested that such a meeting
could be held in Kaohsiung in late August. The Team Leader
agreed to consult with his headquarters about the request.

Measures Against North Korea


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





4. (S) BOFT Su told AIT that in response to repeated AIT
urging that Taiwan restrict its trade with North Korea, an
interagency group was now discussing measures Taiwan could
take to demonstrate displeasure over recent North Korean
missile tests and to demonstrate support for the United
States and Japan on this issue. Su said the step he favored
and had proposed to his Minister was to immediately expand
the list of items requiring an export license to be shipped
to North Korea to include the 344 additional items
recommended by U.S. agencies in December 2005. He noted that
a subsequent, more difficult step, would be to apply the same
requirement to Taiwan's exports to Iran.

AIT Continues to Urge End of North Korea Trade


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

-



5. (S) Note: for the past 24 months, since the
nonproliferation talks led by then-North Korea Working Group
Head David Asher in August 2004, AIT has been urging Taiwan
to restrict or prohibit all non-humanitarian exports to North
Korea. Taiwan's trade with North Korea, amounting to less
than one-tenth of one percent of its total trade, is
economically insignificant. Interestingly, staple fibers,
food seasoning, and $1 million of liquid crystal displays
account for over 80% of Taiwan's exports to North Korea. End
note.

Investigation Results

TAIPEI 00002532 002 OF 002




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





6. (S) AIT has forwarded the results of BOFT's investigation
of Roundtop and Dah Lih companies to EAP/TC and ISN/MTR via
email. The actions taken by BOFT against these two companies
include 1) adding them to the Customs Watch List, 2)
requiring them to apply for export licenses for dual use
items exported to Iran, 3) adding them to the list of
companies regularly inspected for export control compliance,
4) reviewing the previous exports of these two companies for
evidence of any violation of regulations. BOFT will inform
AIT of the results of its export record review and any
addtional penalties imposed.
YOUNG