MTAG: TAIWAN EXPORT CONTROL: LIBYA

S E C R E T SECTION 01 OF 02 TAIPEI 002823 SIPDIS SIPDIS C O R R E C T E D C O P Y STATE FOR EAP/TC AND ISN/MTR E.O. 12958: DECL: 08/09/2026 TAGS: MTCRE PARM TW ECCT SUBJECT: MTAG: TAIWAN EXPORT CONTROL: LIBYA REF: A. STATE 133160 ¶B. TAIPEI 2701 ¶C. 08/14/2006 BREMMER-YOUNG E-MAIL TAIPEI 00002823 001.2 OF 002 Classified By: AIT DDIR Robert Wang, REASONS 1.4 B/C ¶1. (U) This cable is an action request. See para 9. ¶2. (S) Summary: On August 15, AIT delivered to the Taiwan Bureau of Foreign Trade (BOFT) ref A comments on five export license applications as well as the general information on overdue responses contained in the August 14 Bremmer-Young e-mail (ref C). BOFT said Taiwan agencies are now considering removing Libya from Taiwan's export control list of "sensitive" territories and provided some additional detail regarding further restrictions on trade with North Korea and Iran. End summary. Taiwan's Export Control System -------------- ¶3. (S) After receiving ref A comments, BOFT Export Control Task Force Head Wally Su (Shi-hwa) told AIT that for export control purposes Taiwan divides territories into two categories: "sensitive" and "non-sensitive." At present, Taiwan lists eight sensitive territories: China, Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria. ¶4. (S) According to Su, the primary difference between the two categories is that violations of export control regulations involving exports to sensitive territories can result in criminal penalties, instead of just administrative penalties. ¶5. (S) Note: All items on Taiwan's Sensitive Commodities List (SCL) require an export license prior to export to any foreign territory. Taiwan allows U.S. agencies an opportunity to review and make recommendations on all export license applications prior to approval or denial of the application. Strategic High-Tech Commodities (SHTC),which are derived from the commodity lists included in the international export control arrangements (such as the Wassenaar Arrangement),constitute most of the specific commodities on Taiwan's SCL. In addition to SHTC, Taiwan's SCL also includes any weapons components or items that can be used in the manufacture of WMD. End note. Repaying Libyan Hospitality -------------- ¶6. (S) After mentioning the recent U.S. removal of Libya from its list of state sponsors of terrorism, Su told AIT that the Ministry of Foreign Affairs and other Taiwan agencies want to coordinate with U.S. agencies on the timing and procedure for removing Libya from Taiwan's list of sensitive territories. He indicated that this move was partly in response to the welcome Libya showed to President Chen in allowing him a stopover and high-level courtesy calls there during the President's international travels in May. Su mentioned that Taiwan is also considering starting an aid program for Libya and would be interested in U.S. views on providing economic aid for Libya. Taiwan Supports U.S Anti-Terror Efforts -------------- ¶7. (S) On June 1, 2006, in response to repeated high-level AIT demarches, Taiwan began requiring export licenses for an additional 87 commodities prior to export to Iran or North Korea. Most recently, in response to AIT demarches seeking support in expressing opposition to the July 4 North Korean missile tests, Taiwan has compiled a list of 346 additional commodities that will be added to Taiwan's SCL for exports to TAIPEI 00002823 002.2 OF 002 North Korea or Iran (ref B). During his August 15 meeting with AIT, Su indicated that after the formal announcement of the new measures, there will be a one-week comment period. If things go smoothly, he said, implementation can begin on September 15. Su noted that the number of separate commodities in the supplemental SCL for North Korea and Iran had changed slightly due to recent changes in the Harmonized Tariff System, but that it would include all the items designated by Taiwan in October 2005 (87 commodities) plus all the items designated by U.S. agencies in December 2005 (346 commodities). ¶8. (S) In a separate meeting on August 15, MOFA provided a non-paper to AIT POL that describes the expanded SCL for exports to North Korea or Iran, planned new restrictions on air and sea transport between Taiwan and North Korea, and a commitment to tighten control over financial and other aspects of dealing with North Korea (reported septel). ¶9. (S) Action request: Please provide Washington agencies' guidance on the appropriate response to Taiwan's plans to remove Libya from its list of sensitive territories for export control purposes and on its plans to start an aid program for Libya. YOUNG