TAIWAN: RESULT OF BLUE LANTERN PRE-LICENSE CHECK

UNCLAS AIT TAIPEI 000964 SIPDIS STATE FOR EAP/TC, PM/DTCC, ISN/ECC PM/DTCC FOR BLUE LANTERN COORDINATOR PETER SABATINI E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: TAIWAN: RESULT OF BLUE LANTERN PRE-LICENSE CHECK 05-050105965 REF: STATE 62236 ¶1. (SBU) Per reftel request, AIT/T conducted telephone interviews and a site visit with the foreign consignee Super Wong Industrial Company (Super Wong). While AIT/T's findings confirmed the bona fides of the consignee, it appears Super Wong may have previously received the subject technology and item which did not have proper authorizations, if such authorizations were required in 2002. ¶2. (SBU) On June 30, AIT/T met with Mr. Scott Wong (Chinese name is Ping Hsun WENG),Managing Director, and Ms. May LIOU(wife of Scott Wong),President of Super Wong. This meeting was arranged as a follow-up to telephone interviews of Ms. Liou and Mr. Wong, on June 24 and 27, respectively. ¶3. (SBU) Super Wong originally received an order from Advance Products International, LLC (Advance Products) and technical drawings for molded plastic rings in 2002. Super Wong used the technical specifications to manufacture the rings through Jia Ding Precision Industrial Co., Ltd. (formerly called Da Shiang Steel Mold Co., Ltd.),a subcontractor located in Taichung, Taiwan. Until late 2003 - early 2004, Super Wong made the rings using locally sourced metal inserts. Since late 2003 - early 2004, Advance Products has been providing the metal inserts for the plastic ring production. Advance Product cited poor metal quality for the switch. ¶4. (SBU) When asked if he knew the end-use of the rings, Mr. Wong stated that he really did not. He stated that he vaguely remembers Advance Products saying that the rings would be used for a munitions item but did took it more as a joke since Advance Products made the statement informally and no paperwork followed on restrictions related to handling of munitions items. ¶5. (SBU) Mr. Wong stated that Super Wong is a trading company in mold design (20% of the business) and making molded products (80% of the business). Super Wong subcontracts all production work to Taiwan and Chinese companies. Currently, 20% of the work is subcontracted to companies in Taiwan and 80% to companies in China. He stated that Super Wong products are for commercial uses (e.g. remote control casing) and medical devises. He stated that he has no experience in dealing with military items and has no business relationship with governments, foreign or domestic. ¶6. (SBU) Mr. Wong was asked whether he understood the rationale behind the non-disclosure agreement that he signed with Advance Products. He responded that he did not pay much attention to the agreement since he received the technical drawings several years ago (which were revised three times since the first receipt in 2002) and assumed that it was a new paperwork requirement by Advance Products. AIT/T asked if Super Wong's subcontractor could have released the drawings to others. Mr. Wong said that that is highly unlikely, since, as far as the local subcontractor is concerned, the rings were low-value commercial plastic rings. (Note: Super Wong's signatory on the non-disclosure agreement is Ping Hsun Weng (i.e. Scott Wong),not Dung Shu Way, as indicated in reftel.) ¶7. (SBU) Super Wong is an 18 year-old company founded by Mr. Wong and Ms. Liou. When it started, it had 15 employees. It currently has four employees. It is co-located with two other companies owned by the husband-wife team; Super May Industrial Co. and Caladon Technology Co., Ltd. Super May made shopping cart wheels but has not been in operation for several years. Caladon is in the same line of work as Super Wong but it has a profit sharing arrangement with sales representatives in the United States. Caladon has a sales office in California. ¶8. (SBU) AIT/T obtained a copy of the technical drawings received by Super Wong in 2002 and subsequent changes to the drawings. Please let Mi-Yong Kim, EXBS Advisor, know if PM/DDTC wishes to receive copies. YOUNG