TAIWAN: RESULTS OF BLUE LANTERN BROKER CHECK NO. K-2411

UNCLAS AIT TAIPEI 001246

SIPDIS

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-2411

REF: STATE 99477


1. (SBU) Summary: Per reftel request, AIT/T official and FN visited
Tri-Force International, Inc., and interviewed Company President
Terence Hou at address listed in reftel.


2. (SBU) Tri-Force was established in 1989, and now has eight
employees. There are two vice presidents, Mr. John T.L. Chai and
Mr. Tero Cheng. Mr. Chai retired from the Taiwan Air Force in 1995
and joined Tri-Force in 1998. He is in charge of the military
spare-parts business for the company. Mr. Cheng takes care of
business associated with the Chung Shang Institute of Science and
Technology (CSIST).


3. (SBU) According to the Bureau of Foreign Trade (BOFT),Ministry
of Economic Affairs (MOEA),Tri-Force is registered as a trading
company. The company's registration information, including the
company address and contact numbers, is identical to the reference
stated in the paragraph 3 of the reftel.


4. (SBU) Regarding Tri-Force's handling of USML items, Mr. Hou
stated that all incoming shipments are stored in Taiwan
state-operated airport or seaport warehouses, where the box seals
remain intact. When the company confirms a delivery date with the
military end-user, Tri-Force arranges transportation from these
warehouses to the end-user military base. On the date of delivery,
staff from Tri-Force will clear these boxes through customs, and
accompany the shipment directly to the military base without opening
the boxes. Tri-Force representatives are also present when the
customer breaks the seal and takes inventory of each shipment's
contents.


5. (SBU) Mr. Hou stated that all USML items Tri-Force imports are
for its customers in Taiwan, including the ROC Air Force, Army and
Navy, CSIST and Industrial Technology Research Institute.
Tri-Force executives are familiar with USML restrictions and receive
annual training from its suppliers on the subject matter.
Tri-Force also imports commercial parts for Air Asia, Aerospace
Industries Development Corp., Evergreen Aviation Technology (EGAT),
China Airlines and EVA Airways.


6. (SBU) Tri-Force serves as an agent for Lockheed Martin,
Communication & Power Industries, Aero Systems Engineering, Pacific
Consolidated Industries, Messier Service and General Electric
Transportation.


7. (SBU) Post has no derogatory information in its files concerning
Tri-Force International, Inc or Mr. Hou. Post learned through our
Taiwan law enforcement sources, however, that Mr. Hou was charged
with committing offences of "Forgery, Fraud and Breach of Trust" in
2007 but was not indicted.


8. Comment: Accusations of fraud, forgery, and other
business-related crimes are very common in Taiwan, and because this
broker was not indicted of any crimes, Post believes this
information does not call into question the bona fides of the
broker. End Comment.



STANTON