TAIWAN: RESULTS OF BLUE LANTERN BROKER CHECK NO. K-2304 AND

UNCLAS AIT TAIPEI 001234 SENSITIVE SIPDIS C O R R E C T E D COPY CAPTION STATE FOR EAP/TC, PM/DTCC AND ISN/MTR PM/DTCC FOR BLUE LANTERN COORDINATOR RACHAEL-THERESE S. JOUBERT-LIN E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN BROKER CHECK NO. K-2304 AND K-2482 REF: (A) STATE 99473, (B) STATE 99474 ¶1. (SBU) Summary: Per reftel requests, AIT/T econoff visited the two subject companies, Evergo Instruments Incorporated (EII) and Evergo Microwave Incorporated (EMI),which are both located at the same address, and are headed by a husband-and-wife team. The information collected demonstrates the bona fides of the subject brokers. End summary. ¶2. (U) Evergo Microwave was established in 1994, and Evergo Instruments in 1989. EII President Samuel S.S. Liao is the husband of EMI head Mary Lu Liao. The registration information for both companies, including contact numbers and addresses, matches the information included in the database of the Ministry of Economic Affairs Bureau of Foreign Trade. The combined Evergo companies have offices in Taipei, Taichung, and Kaohsiung. In total, Evergo companies have 17 employees. [Note: we were not able to talk with Mr. Liao in person because he is a professor of engineering at Feng Chia University, and lives in Taichung Monday through Friday. End note.] ¶3. (SBU) Both companies import commodities from the U.S. to supply customers in Taiwan only. Ms. Liao said because the companies have had more difficulties and delays in receiving export licenses from the U.S. over the past three years, they have tried to reach out to Europe for additional suppliers. However, according to Liao, due to corporate culture problems and differing regulations, Evergo companies have not been able to serve successfully as an agent in Taiwan for European manufacturers. ¶4. (SBU) The two Evergo companies handle commercial and military items. Their commercial customers are public sector organizations, schools, and private-sector testing labs. Their military-sector clients are in almost all cases the Chung Shan Institute of Science and Technology (CSIST) or the Aerospace Industrial Development Corp (AIDC). Ms. Lu stated that she thoroughly understands USML regulations. ¶5. (SBU) In most cases, the Evergo companies receive and then store commercial and military-use items in the companies' warehouse for a period of time ranging from a few days to a week before delivering the items to end users. The Evergo companies also provide maintenance services at each of their three offices. The Taipei offices of EII and EMI are co-located in a gated office building that has a 24-hour guard. The EII/EMI office itself is also equipped with an alarm system. ¶6. (SBU) Post has no derogatory information in its records concerning the two subject brokers. However, we learned through our Taiwan law-enforcement sources that Ms. Liao was prosecuted but acquitted for fraud in 1989. She was also investigated but not charged for violating the Government Procurement Law in 2008 and for forgery in 2009. Mr. Liao was also investigated but not indicted for forgery in 2009, and is currently under investigation by the Taoyuan District Court for another forgery case. ¶7. (SBU) Comment: Accusations of fraud, forgery, and other business-related crimes are very common in Taiwan, and because neither broker has been convicted of any crimes, we believe this information does not call into question the bona fides of the two brokers. End comment. Stanton