EXBS: TAIWAN MONTHLY REPORTING CABLE - DECEMBER 2008

UNCLAS AIT TAIPEI 001747

SENSITIVE
SIPDIS

STATE FOR ISN/ECC - YWONG, ACHURCH, NJOHANSON, AND ROWEN
STATE FOR EAP/TC - MTOYRYLA, DPARKER
STATE FOR ISN/MTR - PDURHAM, SBOYER, JMAYES, AND RPALMIERO
DHS/CBP/INA FOR MAWATT
DOE/NNSA/INECP FOR TPERRY AND SJONES

E.O. 12958: N/A
TAGS: ETTC MNUC PARM PREL KSTC KNNP TW
SUBJECT: EXBS: TAIWAN MONTHLY REPORTING CABLE - DECEMBER 2008


I. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS:

(SBU) The Advisor drafted the export control section of AIT Director
Stephen Young's speech for the 2008 International Conference on
Homeland Security and Technology held on December 11 in Taipei. A
summary of press reports on the export control part of the speech
from the United Daily News and Economic Daily News follows:

BEGIN SUMMARY

In the 2008 International Conference on Homeland Security and
Technology Wednesday, AIT Director Stephen Young said "a by-product
of Taiwan's amazing economic success is that it now produces many
products and technologies of potential interest to terrorists."
Responding to this statement, Taiwan's technology companies said the
U.S. is the main country that develops high technology and Taiwan
companies can only be regarded as technology-manufacturing
companies. However, some companies admitted that Taiwan machine
tools are cost-effective and therefore have become favorites of many
terrorist organizations and countries supporting terrorism. Taiwan
companies also pointed out that terrorist organizations' procurement
of Taiwan products is because of globalized trade and that Taiwan
companies should not be blamed their action.

END SUMMARY

II. COMPLETED ACTIONS FOR THE REPORTING PERIOD


A. SITE ASSESSMENTS AND MEETINGS DURING REPORTING PERIOD:


1. (SBU) On the margins of the Industry-Government Outreach Program
in Taichung (December 10 - 11),the Advisor met with an official
from the National Science Council (NSC) to get an update on the
Transfer of Intangible Technology Legislation. The official stated
that the legislation still is in draft stage. The Advisor said she
heard from other Taiwan agencies that the likelihood of the
Executive Yuan (EY) submitting the bill to the Legislative Yuan (LY)
for consideration is slim, and that should the EY submit the bill to
the LY, the chances of the LY actually passing such a bill is slim
to none. The official agreed that that is the current assessment.


(SBU) The official did, however, agree with the Advisor that under
the current regulatory scheme, Taiwan could control exports of
technology despite the Bureau of Foreign Trade's (BOFT)
interpretation that it does not have such authority. The official
said the NSC and BOFT have had discussions on this very issue and
hopes that BOFT will broaden its interpretation of its own
authority. The NSC official is a lawyer and works in the Legal
Affairs Committee.

(SBU) (Note: Taiwan incorporated all items controlled by
nonproliferation regimes into its national control list. However,
it did not change the language in the regulations to specifically
control technologies that are on the control list. The Advisor has
had numerous discussions on this inconsistency and has stated BOFT
could interpret the language so that technology is controlled if it
so desires. In the past, BOFT stridently disagreed with the broader
interpretation. Recently, however, the Advisor's sense is that BOFT
is thinking its strict interpretation of the regulations may not be
the proper one.)


2. (SBU) On December 16, the Advisor met with an official from the
Department of Treaty and Legal Affairs of the Taiwan Ministry of
Foreign Affairs to discuss Taiwan's latest attempt to participate in
the Organization on the Prohibition of Chemical Weapons 2008
Conference of States Parties. As happened on eight previous
occasions, Taiwan's application to participate in the Conference,
even as a non-governmental organization, was blocked by China. AIT
sent a separate note on the CWC issue to certain offices at State.



B. BLUE LANTERN:

(SBU) No checks were conducted by the Advisor during the reporting
period.

III. TRAINING CONDUCTED DURING REPORTING PERIOD:

(SBU) On December 10-11, an Industry-Government Outreach Program,
implemented by the Department of Energy, was held in Taichung.
Approximately 75 company representatives and Taiwan officials
attended the program. The goal of the program was to increase
industry's awareness of its export control responsibilities and to
stress the importance of industry-government cooperation in meeting
international nonproliferation goals. Most of day two was devoted
to presentations and demonstration of the ICP software, a tool that
companies can use to comply with export control laws and
regulations. A separate note on the advisability of having
consultants participate as industry representatives for IG programs
has been sent to ECC.

IV. UPCOMING TRAINING:


1. (SBU) On December 12, AIT, CTP, and BOFT agreed to the following
schedule related to the ICP software development project:

ICP completion - end of December 08;
ICP pilot test with Taiwan companies/users - second week of January
09;
Train-the-trainer - March 11 - 13, 2009;
Kick-off Conference - March 31, 2009;
Deployment 1 (Hsinchu) - April 16 - 17, 2009;
Deployment 2 (Taichung) - May 2009;
Deployment 3 (Tainan) - June 2009; and
Deployment 4 (Kaoshiung) - July 2009.

ECC program manager(s) have been getting regular updates on the
above schedule.


2. (SBU) From February 24 - 27, WMD Enforcement Training,
implemented by the Immigration and Customs Enforcement, is scheduled
to take place in Taipei.


3. (SBU) From April 6 - 10, 2009, Hazardous Materials Response
Training, implemented by Customs and Border Protection, is
notionally scheduled to take place in Taipei.


4. (SBU) From April 27 - May 1, 2009, Radiological Detection
Training, implemented by the Department of Energy, is scheduled to
take place in the State of Washington.


V. DECEMBER/JANUARY MEETINGS:

The Advisor will be in Washington for consultations and annual leave
beginning December 22. She will return to AIT at the end of January
2009, after the Lunar New Year.

VI. RED FLAG ISSUES:

None.

POC for this report is Mi-Yong Kim, EXBS Advisor. Telephone +886 2
2162 2347.

YOUNG