TAIWAN: RESULTS OF BLUE LANTERN CHECK FOR DTC CASE

UNCLAS AIT TAIPEI 001295

SENSITIVE
C O R R E C T E D COPY CAPTION
STATE FOR EAP/TC, PM/DTCC AND ISN/MTR

STATE PASS TO AIT/W


PM/DTCC FOR BLUE LANTERN COORDINATOR TIM MAZZARELI

SIPDIS

FROM AIT KAOHSIUNG BRANCH OFFICE

E.O. 12958: N/A
TAGS: ETTC KOMC TW
SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN CHECK FOR DTC CASE
050112953

REF: STATE 00085802


1. (SBU) Per reftel request, AIT Kaohsiung visited the Air Force
Institute of Technology to meet with Colonel Yang Hsing-bang and
other officers who are responsible for the procurement and use of
the United States Munitions List (USML) item in question. AIT/K
also visited the local consignee, Sense Tek, and interviewed the
company's owner, Mr. Lin Ke-Long. Both interviewed parties
confirmed that the Constant Speed Drive (CSD) would be procured only
to be used as a student training aid at the Institute. Both
organizations noted that the CSD they are purchasing is used and
out-of-date. They only want to use the CSD as a learning tool.
Sense Tek will cut the CSD into cross sections and put it on display
as a model for students to view. Both organizations supplied
contracts that were used to purchase the CSD and both seem like
reliable recipients of the CSD.



2. (SBU) Below are the answers to questions listed in the reftel.

--Does the company have supporting documentation, including purchase
orders, for this proposed transaction?

Yes, the company provided contracts and purchase orders.

--What role will Sense Tek play in the proposed transaction? Will
Sense Tek be handling or storing the items listed on the
application? If so, does it have secure facilities and proper
accounting and security procedures for handling these sensitive USML
items?

Sense Tek is the consignee and will also be the one to cut the CSD
into cross sections and turn it into a display model for the Air
Force Institute. The item will be stored in a locked warehouse
while the CSD is at their facility. Locking the warehouse is the
extent of their security procedure.

--What is the exact end-use for this USML item? How exactly will
the component be used as a "student training aid"?

The CSD will be used a as learning tool in a classroom setting for
junior Air Force mechanics. A cross section of the CSD will be cut
out and be used as a display model to help students understand the
inside components of a CSD. The CSD will not be used in any other
way.

--When was the company established and who are its principals?

Sense Tek was established in 1988 and Mr. Lin Ke-Long is the owner.

--What is the nature of its business -- what type of items does it
handle, does it serve as a broker?

Sense Tek makes orders machines that will be used as display models
for mechanical systems that schools to use as learning aids for
future mechanics or engineers.

--What type of organizations are among its typical customers and
where are the customers located?

Sense Tek's typical customers are universities and technical schools
located in Taiwan.

--Does the company understand the restrictions on the United States
Munitions List items, especially the prohibition against
unauthorized re-transfers and re-exports.

Yes, both the Air Force officers and Mr. Lin claimed familiarity
with the restrictions on the re-transfer and re-export of USML
items.

Castro

Wang