TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE 050153101

UNCLAS AIT TAIPEI 000463 SIPDIS STATE FOR EAP/TC, PM/DTCC AND ISN/MTR PM/DTCC FOR BLUE LANTERN COORDINATOR RACHAEL-THERESE JOUBERT-LIN E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE 050153101 REF: STATE 32120 ¶1. Summary: Per reftel request, AIT confirmed reftel transaction details with the end user, and visited the foreign consignee to verify its bona fides. End summary. ¶2. On April 3, Mr. Liao in the Chung Shan Institute of Science & Technology (CSIST) Procurement Office confirmed the details of the contract with Pegasus for reftel commodities. According to Mr. Liao, since the year 2000, Pegasus has won at least 15 bids issued by CSIST. ¶3. On April 6, AIT/T visited Pegasus and talked to Chairperson Hou Hsuei-yen and President William Mar, who are also husband and wife. The couple established Pegasus in July 1998, and mainly import and sell microwave devices, transmitters-receivers, video transmitters, and telemetry transmitters. Besides "Pegasus," they have registered two other company names including "Lamar-Tex Co., Ltd", and "Piu-Mar Tech Ltd." ¶4. Both Mr. and Mrs. Mar are familiar with U.S.-origin defense re-export and retransfer restrictions. CSIST contracts account for 99 percent of Mr. and Mrs. Mar's business; the remaining one percent come from large-scale IC testing factories in the Hsin Chu Science Park. They do not have an overseas office. YOUNG