RESULTS OF THE FEBRUARY 2009 TAIWAN GAMEPLAN IMPLEMENTATION TALKS HELD IN TAIPEI

S E C R E T AIT TAIPEI 000226





ISN/MTR, ISN/ECC, EAP/TC, DOE, DHS/ICE, DHS/CBP,

DOC/BIS/OEE, DOC/BIS/EA, DOD/DTSA



E.O. 12958: DECL: 03/02/2019

TAGS: PARM, PREL, ETTC, MTCRE, CBW, MNUC, MCAP, TW



SUBJECT: RESULTS OF THE FEBRUARY 2009 TAIWAN GAMEPLAN

IMPLEMENTATION TALKS HELD IN TAIPEI



REF: A. (A) 2005 TAIPEI 3201

B. (B) 2007 STATE 148330



Classified By: AIT Acting Director Robert S. Wang for reasons 1.4 (b) a

nd (d).



1. (S) Summary: On February 11-12, 2009, an interagency team

of U.S. officials discussed U.S.-Taiwan Gameplan

implementation with Taiwan authorities from the Ministry of

Economic Affairs (MOEA) Bureau of Foreign Trade (BOFT) and

other agencies. The discussions were positive and fruitful,

and focused on Taiwan's continuing progress using licensing

and enforcement tools to prevent transfers of sensitive items

to countries of proliferation concern, particularly Iran and

North Korea. The talks concluded with both sides agreeing to

a list of follow-up items and agreement to continue the

productive dialogue. End summary.



Overview

--------------



2. (S) U.S. and Taiwan delegations met at BOFT February

11-12 to continue a dialogue on the U.S.-Taiwan Gameplan,

which began in August 2005 with a series of near- and

long-term steps in an effort to improve Taiwan's export

control system (ref A). BOFT Deputy Director Chun-fang Hsu

and ISN/MTR Director Pam Durham led the respective

delegations. In addition to ISN/MTR, the U.S. delegation

comprised 13 representatives from ISN/ECC, DHS/ICE, DHS/CBP,

DOE, DOD, DOC/BIS, DOC/OEE, the U.S. Intelligence Community,

and AIT. The Taiwan side included delegates from BOFT; the

National Security Council (NSC); the National Science

Council; the Atomic Energy Council (AEC); the Ministry of

National Defense (MND) Armaments Bureau; the Ministry of

Foreign Affairs (MOFA) Department of North American Affairs;

the MOFA National Immigration Agency; the National Police

Agency; the Ministry of Justice Investigation Bureau (MJIB);

the Ministry of Finance (MOF) Directorate General of Customs;

and other agencies. A complete list of Taiwan,s participants

is located in paragraph 13. A complete list of U.S.

participants is located in paragraph 14.



Taiwan to Consider End-use Checks, Interagency Process

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3. (S) The discussions were substantive, with active

participation from both sides. The U.S. side was impressed

with Taiwan,s progress on export control systems development

and appreciated that Taiwan has taken steps to incorporate

U.S. suggestions from the September 2007 Gameplan talks into

its export licensing procedures. During the meetings, Taiwan

stated that it adopted the single EU control list, rather

than lists from each regime, and is beginning to implement

pre-license and post-shipment checks for exports to certain

destinations. As does the U.S., Taiwan plans to seek

cooperation from its overseas posts to conduct the checks.

Dennis Krepp, DOC/BIS, gave a presentation on the U.S.

licensing process, including interagency license review

process. Taiwan stated that it is continuing to review

implementing an interagency review process for export

licenses that could include reviews by economic, military,

and foreign policy agencies.



SCL Reductions

--------------



4. (S) During the run-up to the meetings, the Taiwan side

proposed deleting 90 items from its Sensitive Commodity List

(SCL),a list of lower-technology items destined for Iran

and North Korea. The U.S. side agreed to remove ten items

from the SCL. The U.S. had additional technical questions on

19 items. BOFT agreed to keep two of these items on the

SCL, and both sides agreed to exchange further information on

the remaining 17 items. The remaining 63 items (of the 90

SCL items BOFT recommended for removal) will remain on the

SCL. As agreed in 2005, both the U.S. and Taiwan will

continue to review the SCL periodically to determine if any

additional items should be removed from or added to the SCL.



More Information on Licenses Requested

--------------



5. (C) During discussion of the license review process,

Taiwan asked for more detailed information on cases in which

the U.S. either recommends denial or indicates that there is

a proliferation risk. Having this information in a timely

manner will facilitate Taiwan,s adjudication of these cases.

The U.S. side undertook to provide such information, when

available. The U.S. also said it would try to provide the

information as quickly as possible, but noted that obtaining

releasable information usually takes several weeks. The U.S.

also encouraged Taiwan to offer its preliminary assessment of

licenses when submitting them to the U.S. for review. This

information will be helpful to U.S. reviewers.



Applications Up, Violations Down

--------------



6. (S) Taiwan statistics show a dramatic increase in the

number of export license applications, but a drop in

violations. According to BOFT, the main reason for the

changes is an increase in export control awareness among

Taiwan,s industries, which BOFT attributed in turn to the

number and quality of EXBS programs in Taiwan. Additionally,

Taiwan is requiring applicants to submit more supporting

documentation with their applications. In particular, Taiwan

is seeking supporting documents that will help confirm the

bona-fides of the exporting firms and the end-users.



Continued Commitment to Investigate Proliferation Cases

-------------- --------------



7. (S) Taiwan,s BOFT opened the review of open cases with a

presentation on the results of its investigations into

transactions raised by the United States since the September

2007 Gameplan meeting (Ref B). Taiwan noted that in each

case, the companies involved in export activities that posed

potential proliferation concern were added to BOFT,s Watch

List and subjected to increased export control scrutiny.

BOFT also provided an overview of its process of adding firms

to the Watch List and described how it works with Taiwan,s

Customs Service to investigate suspected export control

violations. Both sides agreed to take steps to improve our

dialogue on proliferation cases, including Taiwan pledging to

create an internal file to ensure it has responded to all

cases raised by the United States within three months, and

proposing that U.S. demarches be concurrently delivered in

Taipei and in Washington. For its part, the United States

agreed to sharpen the focus of its demarches to clarify why

certain activities pose proliferation concerns, and help

Taiwan better target its investigations.



8. (S) During the review of open cases, both sides expressed

appreciation for the two-way flow of information on exports

to certain entities of proliferation concern. However,

Taiwan authorities requested more detailed information from

the U.S. side on our export control-related demarches, and

Show-ning Huang, Section Chief of the Ministry of Justice

Investigation Bureau (MJIB),complained that Taiwan

investigations regularly find that intelligence forwarded to

Taiwan by the U.S. is either inaccurate or incomplete. Huang

also pointed out individuals and companies in Taiwan are well

aware of ways to avoid export-controls, and that Taiwan

companies transship items through third and even fourth

countries, including many countries that do not share

information with Taiwan. The United States responded that

this feedback was helpful, and agreed to try to provide as

detailed information as possible to assist Taiwan,s

investigations into these cases.



Intangible Technology Transfers: Difficult but Important

-------------- --------------



8. (S) The second day began with a discussion of controlling

transfers of intangible technology. The Taiwan side said

such transfers, which can leave Taiwan through emails,

telephone calls, and the repatriation of foreign students,

are difficult to control. The U.S. responded that the key to

preventing intangible violations is outreach to and education

of industries and universities and other research centers,

and said the U.S. would provide follow-up examples and case

studies for Taiwan to consult.



Taiwan Defers on Visa Review Process

--------------



9. (S) Taiwan deferred discussion on implementing a joint

visa review process with the U.S. for Iranian and North

Korean travelers to Taiwan. First Secretary Pingyang Su from

MOFA,s Bureau of Consular Affairs said his Ministry &was

not fully aware8 of the issue, and needed time for internal

discussions before discussing implementation of this part of

the Gameplan.



U.S. Invites Taiwan to EXBS Conference in Turkey

-------------- ---



10. (S) The U.S. stated that it is planning to invite Taiwan

to participate in EXBS, international export control

conference in Turkey this summer, and hopes Taiwan will

consider joining the conference. Taiwan thanked the U.S.

side for the training provided thus far under the EXBS

program. Taiwan officials would welcome additional training

opportunities, especially with regard to commodity

identification.



EAR Seminar

--------------



11. (S) The Taiwan side requested that the U.S. (DOC/BIS)

provide training to Taiwan industry on complying with U.S.

re-export rules. The Taiwan side stated that it often hears

complaints from its companies on the complexity of the U.S.

rules and their inability to obtain U.S. re-export licenses.

The Taiwan side also stated that it would bear the cost of

organizing such a program if the U.S. agreed to send

speakers. The U.S. side stated that it would pass on the

request to appropriate officials when it returns to

Washington.



Taiwan Side Gives Meeting High Score

--------------



12. (S) DDG Hsu gave the two-day meeting a &high score,8

and urged both sides to continue cooperation and progress

monitoring the trade in sensitive, high-tech commodities.

Hsu also requested, and the U.S. side agreed, to open another

channel at TECRO,s Economic division in Washington for

passing information on case specific investigations; i.e.,

demarches.



13. (S) Hsu promised to deliver a document &within the

week8 that will summarize the content of the meetings and

specify follow-up steps for both sides. (Note: AIT received

a copy of a transmittal letter, but no attachment, forwarding

meeting minutes to TECRO for delivery to Pam Durham. End

note.)





Taiwan Delegation Members

--------------



14. (C) Franco Chih-peng Huang, Director General, Board of

Foreign Trade (BOFT),Ministry of Economic Affairs (MOEA)



Chun-fang Hsu, Deputy DG, BOFT, MOEA



Tajen Lee, Assistant Researcher, National Security Council

(NSC)



Chien-kuo Chuansun, Senior Staff, National Security Bureau



Show-chiuan Ni, Coordinator, Executive Yuan Office of

Homeland Security (OHS)



David Shen-ruay Chen, Section Chief, OHS



Li-chun Peng, Section Chief, National Science Council



Jo-yi Hsu, Officer, National Science Council



Hsin-sheng Liu, Section Chief, Atomic Energy Council (AEC)



Chien-kuo Chang, Technical Specialist, AEC



Yuan-yeu Jing, Deputy Director, Armaments Bureau, Ministry of

National Defense (MND)



Ping Hsu, Officer, Armaments Bureau, MND



Douglas Hsu, Section Chief, North American Office, Ministry

of Foreign Affairs (MOFA)



Pingyang Su, First Secretary, Bureau of Consular Affairs, MOFA



Simon Hsieh, Section Chief, National Immigration Agency (NIA)



Wenjui Chang, Section Chief, National Police Agency (NPA)



Weijung Chang, Staff Officer, NPA



Show-ning Huang, Section Chief, Ministry of Justice Bureau of

Investigation (MJIB)



Wilson Kao, Section Chief, MJIB



Sean Teng, Agent, MJIB



Ling-hwei Lin, Section Chief, Directorate General of Customs,

Ministry of Finance (MOF)



Billy Wen-hai Shyu, Section Chief, Directorate General of

Customs, MOF



Yi-sheng Ling, Editor, Directorate General of Customs, MOF





Jen-fu TU, Specialist, Directorate General of Customs, MOF



Ching Kuo, Technical Specialist, Department of Industrial

Technology, MOEA



Alex Fan, Director, Technology Transfer and Service Center,

ITRI



Ching-chih Chen, Director , BOFT, MOEA



Ching-yuan Huang, Chief of Task Force, BOFT, MOEA





U.S. Delegation Members

--------------



Pamela K. Durham, Director, DOS/ISN/MTR



Dennis Krepp, Director, DOC/BIS/CB



Samantha Boyer, DOS/ISN/MTR



James Mayes, DOS/ISN/MTR



Nils Johanson, DOS/ISN/ECC



Drew Nickels, DOE



Taurus Brackett, DOD/DTSA



Elizabeth Boniface, U.S. Intelligence Community



Mi-Yong Kim, AIT, EXBS Advisor



Matthew O,Connor, AIT



Richard Powell, DHS/CBP



Tatum King, DHS/ICE



Phil Ankel, DOC/OEE



15. (SBU) The message has been reviewed by State/ISN/MTR.





WANG

WANG





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