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Cablegate: Taiwan: Result of Blue Lantern Pre-License Check

VZCZCXYZ0001
RR RUEHWEB

DE RUEHIN #0964 1850742
ZNR UUUUU ZZH
R 030742Z JUL 08
FM AIT TAIPEI
TO SECSTATE WASHDC 9394

UNCLAS AIT TAIPEI 000964

SIPDIS

STATE FOR EAP/TC, PM/DTCC, ISN/ECC

PM/DTCC FOR BLUE LANTERN COORDINATOR PETER SABATINI

E.O. 12958: N/A
TAGS: ETTC KOMC TW
SUBJECT: TAIWAN: RESULT OF BLUE LANTERN PRE-LICENSE CHECK
05-050105965

REF: STATE 62236

1. (SBU) Per reftel request, AIT/T conducted telephone interviews
and a site visit with the foreign consignee Super Wong Industrial
Company (Super Wong). While AIT/T's findings confirmed the bona
fides of the consignee, it appears Super Wong may have previously
received the subject technology and item which did not have proper
authorizations, if such authorizations were required in 2002.

2. (SBU) On June 30, AIT/T met with Mr. Scott Wong (Chinese name is
Ping Hsun WENG), Managing Director, and Ms. May LIOU(wife of Scott
Wong), President of Super Wong. This meeting was arranged as a
follow-up to telephone interviews of Ms. Liou and Mr. Wong, on June
24 and 27, respectively.

3. (SBU) Super Wong originally received an order from Advance
Products International, LLC (Advance Products) and technical
drawings for molded plastic rings in 2002. Super Wong used the
technical specifications to manufacture the rings through Jia Ding
Precision Industrial Co., Ltd. (formerly called Da Shiang Steel Mold
Co., Ltd.), a subcontractor located in Taichung, Taiwan. Until late
2003 - early 2004, Super Wong made the rings using locally sourced
metal inserts. Since late 2003 - early 2004, Advance Products has
been providing the metal inserts for the plastic ring production.
Advance Product cited poor metal quality for the switch.

4. (SBU) When asked if he knew the end-use of the rings, Mr. Wong
stated that he really did not. He stated that he vaguely remembers
Advance Products saying that the rings would be used for a munitions
item but did took it more as a joke since Advance Products made the
statement informally and no paperwork followed on restrictions
related to handling of munitions items.

5. (SBU) Mr. Wong stated that Super Wong is a trading company in
mold design (20% of the business) and making molded products (80% of
the business). Super Wong subcontracts all production work to
Taiwan and Chinese companies. Currently, 20% of the work is
subcontracted to companies in Taiwan and 80% to companies in China.
He stated that Super Wong products are for commercial uses (e.g.
remote control casing) and medical devises. He stated that he has
no experience in dealing with military items and has no business
relationship with governments, foreign or domestic.

6. (SBU) Mr. Wong was asked whether he understood the rationale
behind the non-disclosure agreement that he signed with Advance
Products. He responded that he did not pay much attention to the
agreement since he received the technical drawings several years ago
(which were revised three times since the first receipt in 2002) and
assumed that it was a new paperwork requirement by Advance Products.
AIT/T asked if Super Wong's subcontractor could have released the
drawings to others. Mr. Wong said that that is highly unlikely,
since, as far as the local subcontractor is concerned, the rings
were low-value commercial plastic rings. (Note: Super Wong's
signatory on the non-disclosure agreement is Ping Hsun Weng (i.e.
Scott Wong), not Dung Shu Way, as indicated in reftel.)

7. (SBU) Super Wong is an 18 year-old company founded by Mr. Wong
and Ms. Liou. When it started, it had 15 employees. It currently
has four employees. It is co-located with two other companies owned
by the husband-wife team; Super May Industrial Co. and Caladon
Technology Co., Ltd. Super May made shopping cart wheels but has
not been in operation for several years. Caladon is in the same
line of work as Super Wong but it has a profit sharing arrangement
with sales representatives in the United States. Caladon has a
sales office in California.

8. (SBU) AIT/T obtained a copy of the technical drawings received by
Super Wong in 2002 and subsequent changes to the drawings. Please
let Mi-Yong Kim, EXBS Advisor, know if PM/DDTC wishes to receive
copies.


YOUNG

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