TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE 050169606

UNCLAS AIT TAIPEI 000692 SIPDIS STATE FOR EAP/TC, PM/DTCC AND ISN/MTR PM/DTCC FOR BLUE LANTERN COORDINATOR TIM MAZZARELLI E.O. 12958: N/A TAGS: ETTC KOMC TW SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE 050169606 REF: STATE 50592 ¶1. Summary: Per reftel request, AIT/T contacted the end user, the Taiwan Ministry of National Defense (MND) Arsenal Readiness Development Center (ARDC),to confirm the order. Because the incoming cable did not indicate the commodities' quantities, AIT/T also contacted the foreign consignee, Yang Technology Company, to re-confirm the order. Our findings indicate Yang Technology ordered more than ARDC requested due to the company's expectation of the the MND's future supply needs. End summary. ARDC -------------- ¶2. Lieut. Yang Tzi-shin from ARDC's Procurement Office told AIT that ARDC has awarded many contracts to Yang Technology over the past few years, including one signed February 17, 2009 (procurement number of GP98253P123PE) for 32 electric lines and 25 gyroscope wires. Another two active contracts were both signed on March 13, 2009: procurement number GI98020P050P2E for 12 214-type lines, number GI98020P050P1 for 72 364-type inner cables, 12 telecommunication cables, and 13 connecting plugs. Yang Technology -------------- ¶3. Sales representative Mr. Yang Yung-chen from Yang Technology told AIT that since the company's founding, all of its customers have been connected to the Taiwan military. [Note: According to background information from the company registration database provided by the Ministry of Economic Affairs (MOEA),this company was established in October 1991. End note.] ¶4. When asked which specific contract with ARDC prompted Yang Technology's order to Relli Technology, Mr. Yang stated that, in the past, the company always made orders to U.S. suppliers according the quantity requested on each procurement contract with the Taiwan military. This time, however, based on the U.S. supplier's minimum suggested order, and Yang Technology's experience of the spare-part needs of the Taiwan military, the company placed an order for a larger quantity and variety of parts. Yang said all purchased items will not necessarily be for ARDC only, but may also be sold to other MND units. WANG