Cablegate: Exbs: Taiwan Monthly Reporting Cable - January 2008

VZCZCXYZ0000
PP RUEHWEB

DE RUEHIN #0158/01 0320813
ZNR UUUUU ZZH
P 010813Z FEB 08
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC PRIORITY 8050
RHMFIUU/USCBP WASHINGTON DC PRIORITY
RHMFIUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS AIT TAIPEI 000158

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR ISN/ECC - YWONG, ACHURCH, KCROUCH AND ROWEN
DEPT FOR EAP/TC - SBREMNER
DEPT FOR MTR - PDURHAM, SMIKOL, JMAYES, AND RPALMIERO
CBP/INA FOR RWATT AND JGOUGE
DEPT FOR ENERGY/NNSA FOR T. PERRY AND S. JONES

E.O. 12958: N/A
TAGS: ETTC MNUC PARM PREL KSTC KNNP TW
SUBJECT: EXBS: TAIWAN MONTHLY REPORTING CABLE - JANUARY 2008

REF: A. Taipei 000086 (January 17)
B. Taipei 000141 (January 30)

I. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY
MANAGERS:

1. (U) The Export Control and Related Border Security (EXBS)
Advisor reported on two recent investigations of Taiwan companies
for export control violations. The investigations are detailed in
refs A and B.

2. (U) On January 15, the EXBS Advisor was informed by an official
of the Bureau of Foreign Trade (BOFT) of the Taiwan Ministry of
Economic Affairs that the Taiwan Executive Yuan (EY) approved
legislation to amend the Foreign Trade Act (FTA) to increase
penalties for export control violations. The legislation increases
penalties from two years of imprisonment and/or a fine of up to NTD
300,000 (approximately USD 9,000), to five years of imprisonment
and/or a fine of NTD 1 million (approximately USD 30,000). The EY
plans to refer the legislation to the Legislative Yuan (LY) at the
end of February. The new LY was sworn in on February 1.

II. COMPLETED ACTIONS FOR THE REPORTING PERIOD.

A. SITE ASSESSMENTS AND MEETINGS DURING REPORTING PERIOD:

1. (SBU) On January 11, the EXBS Program Advisor, Econoff and
Economic Chief met with an official from Japan Interchange
Association (AIT counterpart) and three visiting officials from
Tokyo (two from the Ministry of Economy, Trade, and Industry, and
one from the Ministry of Foreign Affairs). The Japanese officials
were interested in our assessment of Taiwan's export control system,
including the recent step-up on enforcement actions. AIT-T
officials told them that, while Taiwan's system needs further
refinement, Taiwan is moving in the right direction. AIT-T and
Japanese officials agreed to continue U.S.-Japan cooperation in
Taiwan's export control development.

2. (SBU) On January 16, the EXBS Advisor gave a briefing to the
Keelung Harbor Police on the EXBS program. Approximately 60 officers
attended the briefing. Keelung Harbor Police regularly participates
in EXBS programs. After the briefing, the EXBS Advisor made a
courtesy call to the Director General of Keelung Harbor Police. The
EXBS Advisor was accompanied by a CSI-Kaohsiung.

3. (U) On January 31, the EXBS Advisor attended the Taiwan-Japan
Industry Outreach Seminar. Approximately 200 Taiwan companies
attended the program. The morning session was focused on the legal
and regulatory requirements of Taiwan and Japan export control
systems and the afternoon was focused on internal controls for
exports by companies. NEC and Applied Materials made presentations
on their internal control programs. Seven officials from Japan
(METI, CISTEC, and NEC) participated in the seminar. During
Taiwan's presentations, EXBS was referenced as the basis for
U.S.-Taiwan cooperation on export controls.

B. BLUE LANTERN:

(U) The EXBS Advisor worked with AIT-K and Econoff to complete two
Blue Lantern check requests and reported findings to State/DDTC.

C. TRAINING CONDUCTED DURING REPORTING PERIOD:

(U) No training was conducted during the reporting period.

III. UPCOMING TRAINING:

1. (U) A three-day Commodity Identification Training program,
implemented by the Department of Energy, is being planned for
February 20 - 22 in Kaohsiung.

2. (SBU) A two-day Wassenaar Arrangement Update Meeting, lead by
State/ISN/CATR, is scheduled for March 6 - 7.

3. (U) A preparatory meeting for Internal Control Program Software
development, implemented by the Department of State through a
contractor, is being planned for March 27 and 28.

4. (U) A five-day Target and Risk Management Training, implemented
by Customs and Border Protection, is being planned for the week of
April 14 in Kaohsiung.

IV. UPCOMING MEETINGS

(SBU) On February 26, the EXBS Advisor will meet with officials of
the Department of Investigations, Directorate General of Customs,
Taiwan Ministry of Finance.

V. RED FLAG ISSUES:

None.

POC for this report is Mi-Yong Kim, EXBS Advisor.
Telephone 886 2 2162 2347.

YOUNG

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