TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE END-USE CHECK

UNCLAS AIT TAIPEI 001229 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 MEREDITH SUNDLOF SIPDIS FROM AIT KAOHSIUNG BRANCH OFFICE E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE END-USE CHECK ON LICENSE NO.050189204 REF: STATE 00096308 ¶1. (SBU) Per reftel request, AIT Econ Officer and FN visited Gao Jun Co. Ltd in Gangshan Township, Kaohsiung County and interviewed the Company's Owner, Mr. Luo Bin and Sales Assistant, Ms. Hsu Pei-hsuen. ¶2. (SBU) Gao Jun's Sales Assistant Ms. Hsu told AIT that in addition to Gao Jun Co.,Ltd, Mr. Luo Bin owns an office in Taipei City and one additional company registered under his fiance, Ms. Yeh Hui-ling, who also works at Gao Jun in Gangshan Township, Kaohsiung County, but was not present during AIT's visit to the facility. According to Hsu, Gao Jun was established on August 11, 2006 and the second company, Yanaite Power System Company, was established on December 16, 2008. ¶3. (SBU) Hsu showed us a written contract which indicated the Yanaite Company became the winning bidder of an order of sixty-nine items from Taiwan Land Force (TLF) in Gueijen, Tainan County, on August 05, 2009. Hsu said that in order to meet TLF's requirement of providing the commodities by October 26, 2009, Luo has rushed procurement of the items from several local suppliers. Hsu said that Luo used the core company, Gao Jun, to purchase from the US supplier, Space Coast IC Inc. a total of forty-seven items of this procurement. Hsu confirmed that Gao Jun has received almost all commodities it has procured. ¶4. (SBU) Luo told us that Taiwan's military institutes are his target customers. He claimed that he does not do business outside of Taiwan. Both Luo and Hsu indicated that they were familiar with U.S. restrictions on the procurement of US Munitions List commodities. ¶5. (SBU) Gao Jun's office is on the second floor of a three-floor building. The bottom floor is used as a show room, while the top floor is used as residential space by Luo and Yeh. Items ordered by the company are stored in the second floor office space, which is accessible by all members of the staff. The office appears to be secure, with Taiwan Chung Hsing Security Co., Ltd providing round-the-clock monitoring services. Luo and his staff of eight young employees seemed happy to meet with AIT. Both Luo and Hsu were cooperative and willing to answer AIT's questions. Stanton