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Cablegate: Taiwan: Results of Blue Lantern Broker Check K-2388

VZCZCXYZ0006
RR RUEHWEB

DE RUEHIN #1304 3090343
ZNR UUUUU ZZH (CCY ADD288B9 MSI6854-695)
R 050343Z NOV 09
FM AIT TAIPEI
TO SECSTATE WASHDC 2626

UNCLAS AIT TAIPEI 001304

SENSITIVE
SIPDIS

C O R R E C T E D COPY CAPTION

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

PM/DTCC FOR BLUE LANTERN COORDINATOR RACHAEL-THERESE S. JOUBERT-LIN

E.O. 12958: N/A
TAGS: ETTC KOMC TW
SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN BROKER CHECK K-2388

REF: STATE 99593

1. (SBU) Summary: Per reftel request, AIT/T Econ Officer and FN
visited Sum-Mit Co. and interviewed the President, Mr. Joseph G.L.
Cheng. Collected response shows the bona fides of the subject
broker. End summary.

2. (SBU) The company was established in 1989 and now has 10
employees. The reference, provided by Mr. Cheng, of the company's
address and contact information is identical to that stated in the
company's registration form from the database of the Bureau of
Foreign Trade, Ministry of Economic Affairs.

3. (SBU) The company serves as the sole agent in Taiwan for Philips
and Essco, and as one of a few sales representatives for L3 systems.
The company focuses on marketing radar systems and other related
satellite and communication systems for these companies.

4. (SBU) Sum-Mit's major customers for defense-related articles are
military units and the National Space Program Office (NSPO). It
does not have customers outside of Taiwan.

5. (SBU) Sum-Mit's mission is market promotion. In other words, the
company targets potential customers and introduces products for
Philips or Essco to potential customers. When customers request
more details about a product or a price quote, Sum-Mit will contact
Philips or Essco for the customer and provide a response. When the
order is placed, however, the customer will place the order directly
with Philips or Essco. Therefore, Sum-Mit is not involved in
finalizing contracts and the goods are delivered directly to the
customer after its arrival in Taiwan.

6. (SBU) On some occasions, Mr. Cheng receives copies of contracts
from Philips or Essco for future reference. Mr. Cheng is the only
person in his company who has access to the contract files.

7. (SBU) The building in which Sum-Mit resides maintains a guard
presence at the front desk. Upon entry, each visitor must obtain an
elevator key programmed to access a specific floor. Sum-Mit does
not maintain a warehouse facility, either on site or at another
facility, and therefore does not maintain an inventory of products.

8. (SBU) Sum-Mit maintains contracts with Philips and Essco for
market-promotion services, which is renewed every two years. In
general, the commission Sum-Mit receives from these companies is
approximately 2-3 percent of the trading value of the sales
contracts that customers ultimately conclude with Philips and Essco.


9. (SBU) Neither AIT nor its Taiwan law-enforcement sources has
derogatory information in its files concerning Sum-Mit Co. or Mr.
Cheng.


Stanton

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