Cablegate: Taiwan: Results of Blue Lantern Post-Shipment Checks

VZCZCXYZ0003
RR RUEHWEB

DE RUEHIN #1203 2251055
ZNR UUUUU ZZH
R 121055Z AUG 08
FM AIT TAIPEI
TO SECSTATE WASHDC 9741

UNCLAS AIT TAIPEI 001203

SIPDIS

STATE FOR EAP/TC, PM/DTCC AND ISN/MTR

PM/DTCC FOR BLUE LANTERN COORDINATOR JUDD STITZIEL

E.O. 12958: N/A
TAGS: ETTC KOMC TW
SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN POST-SHIPMENT CHECKS
050068901, 050071121, 050081551 AND 050082501

REF: STATE 80984

1. Per reftel request, AIT/T visited the end user, Legend Laser
Inc.(Legend). Legend's General Manager, Sherman Kuo, and Sales
Division Secretary, Maggie Tsai, provided the following
information.

Responses to the Questions in Reftel Para 4
-------------------------------------------
2. Legend received subject shipments, except for the three
Cleartran Zinc Sulfide (DDTC case 050082501), from Wavelength
Technology. Mr. Kuo explained that the company ordered three pieces
of Cleartran Zinc Selenide lenses, not the Zinc Sulfide as indicated
in case number 050082501. In addition to the subject lenses, Legend
also purchased BK7 and doublet cemented focus lenses from
Wavelength.

3. Legend receives lenses machined to its specifications by
Wavelength containing Zinc Selenide. Legend places orders with
Wavelength in Singapore and receives shipments directly from
Wavelength in Singapore.

4. Mr. Kuo states that he knows Wavelength has machining facilities
in China and Singapore but does not know where Wavelength does the
machining for the subject lenses.

5. After receiving finished lenses, Legend assembles them to
laser-marking machines according to Legend's customer requests.
Prior to the assembly, Legend stores those lenses in a locked
storage container in a locked storage room.

6. The company was established in 1984 and has 40 employees. Legend
manufactures laser-marking machines. It imports lenses and
components, then assemble them into customer-specific machines.

7. Legend has factories in the Taipei County, and service offices in
Beijing, Shanghai, and Shencheng in China. About 60 percent of its
products go to China, and the rest to Taiwan. Starting 2007, the
company has sold a few machines to South Korea.

8. Mr. Kuo said he is not familiar with USML restrictions since the
company purchase lenses from Wavelength at sizes that are not
controlled by USML. He further stated that the actual sizes ordered
by Wavelength could be 10-20 percent larger, which could be USML
controlled. Mr. Kuo stated that larger sizes are needed to properly
machine the lenses to the specifications.

9. Copies of purchase orders and invoices indicating the specific
ordered and delivered items have been faxed to PMDDTC.

YOUNG

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