TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE 050055466

UNCLAS AIT TAIPEI 001933 SIPDIS SENSITIVE, SIPDIS STATE FOR EAP/TC, ISN/MTR, AND PM/DTCC FOR BLUE LANTERN COORDINATOR JUDD STITZIEL, AIT/W E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE 050055466 REF: 07 STATE 107098 ¶1. (SBU) Per reftel request, AIT/T visited the foreign consignee, Trebmotion Inc. (Trebmotion),and contacted the end user, Taiwan ROC ORDC Army Logistics Command (Taiwan Army). Based on the site visit and information collected by AIT/T, the subject business transaction appears to be legitimate. Taiwan Army: ¶2. (SBU) Mr. Chen, Sheng-Kai, with the Procurement Office of the Taiwan Army, Ministry of National Defense (MOND),stated that he is not aware of a business relationship between the Taiwan Army and Trebmotion. Mr. Chen, however, stated that the Taiwan Army does have a contract with Intake Power Corporation (Intake) for maintenance work on M9 Armed Combat Earth Movers (ACE). He verified the contract number, item, and the end-use of the item as stated in the subject license application with Taiwan Army's contract with Intake. ¶3. (SBU) Mr. Chung explained that the Taiwan Army has other contracts with Intake and that Intake is considered a recognized/official supplier/contractor for the Taiwan Army and MOND. Trebmotion: ¶4. (SBU) AIT-T met with Peter Sun, head of Military Marketing and Service Group units of Trebmotion. Mr. Sun explained that Trebmotion is a subcontractor to Intake to purchase parts for Intake's contract with the Taiwan Army for the repair/maintenance of M9 ACE. Mr. Sun provided AIT with the contract between Intake and the Taiwan Army. The contract number and the work ordered under the contract reconciled with the information AIT/T received from the Taiwan Army. Mr. Sun also provided a copy of the contract Trebmotion has with Intake to procure parts and the purchase order between Trebmotion and Flight Source. The item description and quantity matched on both documents. Mr. Sun stated that the subject transaction is the first time for the company to buy parts from the United States for M9 ACE maintenance and the first time from Flight Source. ¶5. (SBU) When asked if the Taiwan Army would know Trebmotion, Mr. Sun replied that it would not. The Taiwan Army would, however, know Mr. Sun personally since he has been working on military-related issues for 36 years. Mr. Sun added that Trebmotion has subcontract relationship with SMR and Shan Chun Company, in addition to Intake. ¶6. (SBU) Mr. Sun reviewed Trebmotion's storing and handling procedures for items it procures items from overseas. According to Mr. Sun, Trebmotion has three leased warehouses; Crown Van Line Warehouse in Keelung, SMR Warehouse near Tao Yuan Int'l Airport, and Intake Warehouse in Kaohsiung County. Mr. Sun explained that low-value and non-sensitive items are stored in the SMR warehouse in Tao Yuan or at its Taipei office. Generally, however, items acquired on behalf of SMR and Intake are directly delivered to end users; high value, sensitive, or bulk items that are not put into immediate use are stored in the Crown Van Line warehouse, which has a physical security system. ¶7. (SBU) Trebmotion was incorporated in 2001 as a sole proprietorship with Mr. Larry Sun as the principal. At the time, its main business was research and development related to the consumer transportation industry such as motorcycles and cryogenic processing of materials. About a year ago, Peter Sun joined the company and added two other business units: a Military Marketing and a Service Group to provide technical services--such as interpreting technical manuals into English--to the Military Marketing unit. Trebmotion does not manufacture but acts as importer, trader, or sales agent for end-users and government contractors. Individually, Mr. Sun also acts as an overseas sales agent for Explomo Technical Service (Singapore),Marvin Land System (United States),ES GmbH (Germany) and Pearson Engineering (United Kingdom). In addition to Messrs Larry Sun and Peter Sun, Trebmotion has seven employees in its Taipei office. ¶8. (SBU) Mr. Sun stated that he is fully aware of restrictions on USML items, especially prohibitions against unauthorized re-transfers and re-exports of such items. YOUNG