BLUE LANTERN CASE 05-050113333

UNCLAS TORONTO 000177 SIPDIS SENSITIVE DEPARTMENT FOR PM/DDTC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC CA TW SUBJECT: BLUE LANTERN CASE 05-050113333 Ref: STATE 54920 Sensitive but Unclassified-Please Protect Accordingly ¶1. (SBU) On June 3, Poloff visited the offices of Junsdom Solutions in North York, Ontario as instructed by reftel to meet with Peter Hou, sales representative. The North York office of Junsdom systems is located in a rental house in a quiet suburban neighborhood north of downtown Toronto. According to Mr.Hou, all Canada-based activities of the firm occur at the North York location. Mr. Hou is Canadian Landed Immigrant (permanent resident) and holds a Taiwan passport. ¶2. (SBU) Hou described the S-band radar equipment scheduled to be consigned to the Chung Shan Institute of Technology as a normal order for his firm. Hou indicated that he was familiar with the regulations pertaining to the use of dual-use articles, and that Junsdom placed great emphasis on complying with USG regulations. Hou also provided Poloff with a list of transactions from calendar year 2007. The majority were for radar based equipment purchased on behalf of the Chung Shan Institute by Evergo Co., a Taiwan company. A typical transaction involved Chung Shan placing an order with Evergo, who in turn contracts Junsdom to source the product from North American suppliers. ¶3. (SBU) Hou said that the articles were then shipped to him in North York, before being shipped to Taiwan by Fedex. Orders typically did not remain in his possession for more than 24 hours. Larger items were delivered directly to a freight forwarder for further shipment to Taiwan. While in his possession, all articles were stored in an alarmed room in the basement of his house (NOTE: The room also functions as a study and recreation room for his teenage daughter. END NOTE). ¶4. (SBU) Hou described Junsdom as a small company with good connections in Taiwan. His boss, Hsu-Chi Liao, is a dual Taiwan-Canadian citizen who splits his time between the two countries. To Hou's knowledge, the company does not/not have any subsidiaries in the PRC, nor does it do business with mainland China companies. ¶5. (SBU) COMMENT: Poloff and Toronto ICE attach subsequently conducted several internet searches on Junsdom Solutions and related phone numbers contained in the DSP-5, which indicate that Junsdom may have an office in Shenyang, PRC. Toronto ICE attach has coordinated with the ICE field office responsible for Nashua, New Hampshire to establish contact with the home office of the manufacturer, the Ferrite Company. Post has also asked the Canadian Border Service Agency Customs section to query their files for potential derogatory information regarding Junsdom Solutions. We will forward any additional information received from Canadian sources to PM/DTC and ICE. END COMMENT. TUNIS