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