1. (S) On December 7, poloff delivered reftel demarche and
nonpaper to Kim Jae-woo, Deputy Director, Disarmament and
Nonproliferation Division of the Ministry of Foreign Affairs
and Trade. On February 5, Kim conveyed the results of the
ROKG investigation of the South Korean company Cheonun
Precision Company Limited's trade of Taiwan-origin machine
tools to South Korean companies in China. Kim said that
Cheonun Precision Company Limited brokered the sale of seven
(7) milling machines by the Taiwanese firm Dahlih in 2007.
Two of these machines were sold to Ujon Company and five to
Dongju Company, both South Korean companies in China. Kim
said that the ROKG had confirmed that all of the machines
were present on the compound of the companies in China. He
said the investigation found no attempts or records of any
machine tools re-exports to North Korea and stressed that the
items were not controlled items. Kim noted that the MCV-720
model purchased by Dongju Company would be a controlled item
if installed with a rotary table, but explained that the ROKG
investigation determined Dongju had not purchased a rotary
table. As a result, the ROKG investigation revealed a very
low risk of divergence of dual-use equipment, Kim said.
STANTON