TAIWAN: RESULTS OF BLUE LANTERN POST-SHIPMENT CHECK

UNCLAS AIT TAIPEI 001152 SIPDIS STATE FOR EAP/TC, PM/DTCC AND ISN/MTR PM/DTCC FOR BLUE LANTERN COORDINATOR TIM WATKINS E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN POST-SHIPMENT CHECK 05-050095335 AND 05-050097129 REF: STATE 76746 ¶1. (SBU) Per reftel requests, AIT/T contacted Taiwan Air Force and the Aerospace Industrial Development Corporation (AIDC). Investigation results showed that these two business orders came from AIDC, and the reason for going through New Zealand-based company was because it served as a broker. ¶2. All spare parts mentioned in reftel went to AIDC who is responsible for maintenance of military aircraft. Case 05-050095335 -------------- ¶3. (SBU) Major Lee from Air Force Logistics Command confirmed this order and suggested AIT/T contact AIDC's Aircraft Maintenance and Avionics Office for details. Ms. Wu from this office echoed Major Lee's remarks, and further explained that AIDC ordered 17 pieces of SHIM. They already received 13 pieces, and are expecting the rest shortly. ¶4. Ms. Wu said that AIDC could only get this specific SHIM from New Zealand's Customs Aeronautical Solutions (CAS). Case 05-050097129 -------------- ¶5. (SBU) AIDC Procurement Manager Hsu explained that AIDC started the procurement of subject spare parts for military two and half years ago. It is a four-year procurement contract with several shipments. ¶6. (SBU) Hsu further explained that AIDC went through many agents to gather required spare parts. Most agents in the U.S. could find those commodities in the subject exporter, S.O.I. Aviation. But there were some parts that AIDC could only find at CAS. Therefore, AIDC gets 90 percent of needed spare parts from S.O.I. Aviation, and the rest from CAS. AIDC started to do business with CAS about one year ago. YOUNG