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Cablegate: Taiwan: Results of Blue Lantern Pre-License 050055466

VZCZCXYZ0001
RR RUEHWEB

DE RUEHIN #1933 2350822
ZNR UUUUU ZZH
R 230822Z AUG 07
FM AIT TAIPEI
TO SECSTATE WASHDC 6505

UNCLAS AIT TAIPEI 001933

SIPDIS

SENSITIVE, SIPDIS

STATE FOR EAP/TC, ISN/MTR, AND PM/DTCC FOR BLUE LANTERN COORDINATOR
JUDD STITZIEL, AIT/W


E.O. 12958: N/A
TAGS: ETTC KOMC TW
SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE 050055466

REF: 07 STATE 107098

1. (SBU) Per reftel request, AIT/T visited the foreign consignee,
Trebmotion Inc. (Trebmotion), and contacted the end user, Taiwan ROC
ORDC Army Logistics Command (Taiwan Army). Based on the site visit
and information collected by AIT/T, the subject business transaction
appears to be legitimate.

Taiwan Army:

2. (SBU) Mr. Chen, Sheng-Kai, with the Procurement Office of the
Taiwan Army, Ministry of National Defense (MOND), stated that he is
not aware of a business relationship between the Taiwan Army and
Trebmotion. Mr. Chen, however, stated that the Taiwan Army does
have a contract with Intake Power Corporation (Intake) for
maintenance work on M9 Armed Combat Earth Movers (ACE). He verified
the contract number, item, and the end-use of the item as stated in
the subject license application with Taiwan Army's contract with
Intake.

3. (SBU) Mr. Chung explained that the Taiwan Army has other
contracts with Intake and that Intake is considered a
recognized/official supplier/contractor for the Taiwan Army and
MOND.

Trebmotion:

4. (SBU) AIT-T met with Peter Sun, head of Military Marketing and
Service Group units of Trebmotion. Mr. Sun explained that
Trebmotion is a subcontractor to Intake to purchase parts for
Intake's contract with the Taiwan Army for the repair/maintenance of
M9 ACE. Mr. Sun provided AIT with the contract between Intake and
the Taiwan Army. The contract number and the work ordered under the
contract reconciled with the information AIT/T received from the
Taiwan Army. Mr. Sun also provided a copy of the contract
Trebmotion has with Intake to procure parts and the purchase order
between Trebmotion and Flight Source. The item description and
quantity matched on both documents. Mr. Sun stated that the subject
transaction is the first time for the company to buy parts from the
United States for M9 ACE maintenance and the first time from Flight
Source.

5. (SBU) When asked if the Taiwan Army would know Trebmotion, Mr.
Sun replied that it would not. The Taiwan Army would, however, know
Mr. Sun personally since he has been working on military-related
issues for 36 years. Mr. Sun added that Trebmotion has subcontract
relationship with SMR and Shan Chun Company, in addition to Intake.

6. (SBU) Mr. Sun reviewed Trebmotion's storing and handling
procedures for items it procures items from overseas. According to
Mr. Sun, Trebmotion has three leased warehouses; Crown Van Line
Warehouse in Keelung, SMR Warehouse near Tao Yuan Int'l Airport, and
Intake Warehouse in Kaohsiung County. Mr. Sun explained that
low-value and non-sensitive items are stored in the SMR warehouse in
Tao Yuan or at its Taipei office. Generally, however, items acquired
on behalf of SMR and Intake are directly delivered to end users;
high value, sensitive, or bulk items that are not put into immediate
use are stored in the Crown Van Line warehouse, which has a physical
security system.

7. (SBU) Trebmotion was incorporated in 2001 as a sole
proprietorship with Mr. Larry Sun as the principal. At the time,
its main business was research and development related to the
consumer transportation industry such as motorcycles and cryogenic
processing of materials. About a year ago, Peter Sun joined the
company and added two other business units: a Military Marketing and
a Service Group to provide technical services--such as interpreting
technical manuals into English--to the Military Marketing unit.
Trebmotion does not manufacture but acts as importer, trader, or
sales agent for end-users and government contractors. Individually,
Mr. Sun also acts as an overseas sales agent for Explomo Technical
Service (Singapore), Marvin Land System (United States), ES GmbH
(Germany) and Pearson Engineering (United Kingdom). In addition to
Messrs Larry Sun and Peter Sun, Trebmotion has seven employees in
its Taipei office.

8. (SBU) Mr. Sun stated that he is fully aware of restrictions on
USML items, especially prohibitions against unauthorized
re-transfers and re-exports of such items.

YOUNG

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