TAIWAN: RESULTS OF BLUE LANTERN LEVEL 3: PRE-LICENSE

UNCLAS AIT TAIPEI 001401

SENSITIVE

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 LEVEL 3: PRE-LICENSE
END-USE CHECK ON APPLICATIONS 050197967 AND 050198220

REF: STATE 117765


1. (SBU) Summary: Per reftel request, AIT/T contacted the end user,
the Chung Shan Institute of Science and Technology (CSIST)--the
research and development arm of the Taiwan Ministry of National
Defense Armaments Bureau--and visited the consignee, Carbon-Based
Technology Incorporated (CBT). We confirmed the orders with both
end-user and consignee, and assess the consignee to be bona fide.
End summary.

CSIST
--------------


2. (SBU) On November 25, Mr. Liao Wei-yao of the CSIST Procurement
Office confirmed the order for reftel equipment from CBT listed on
application 050197967. The procurement contract number is XC98Q20P.
Mr. Liao stated the purpose of this equipment as "spare parts for
Chung-Shyang II UAV ground control station with less 200 KM maximum
range; Chung-Shyang II UVA has a 25 KM EO payload, is for
surveillance, coastal patrol, and typhoon damage investigations."


3. (SBU) On the same day, for application 050198220, Mr. Chen Wei-ho
of the CSIST Procurement Office confirmed the order for reftel
transmitter. According to Chen, CSIST bought the transmitter from
CBT in 2008, and because the transmitter was still under the
warranty when it broke down, CSIST has requested that CBT send the
machine back to the manufacturer for repairs. [Note: the end user
for the transmitter should be Mr. Chang Wen-tzung, Chief of
Aerodynamics Section at CSIST's Aeronautical Systems Research
Division, not the end user listed in reftel, Mr. Lian Yuan-hwang.
End note.]

Carbon-Based Technology Incorporated
--------------


4. (SBU) On November 18, AIT/T econoff visited CBT and talked with
company President Mr. Wen-long "Clement" Chung and General Manager
David Lin. In 2007, Chung and Lin both left the Aerospace
Industrial Development Corporation (AIDC)--a state-owned aerospace
enterprise that falls under the authority of the Ministry of
Economic Affairs--to found CBT with five other former AIDC
engineers. The company now has 40 employees, all in Taichung.


5. (SBU) According to Chung, CSIST has been the company's main
customer since 2007, although CBT has some civil aviation and other
non-military customers. All of the company's clients are in Taiwan.
Chung and Lin said they are familiar with restrictions on USML
items.


6. (SBU) CBT's offices are locked and alarmed after business hours.
CBT does not usually keep items in its offices, however, and will
likely deliver reftel items directly to CSIST.

STANTON