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Cablegate: Exbs: Taiwan Monthly Reporting Cable - December 2009

VZCZCXYZ0000
PP RUEHWEB

DE RUEHIN #0063 0150316
ZNR UUUUU ZZH
P 150316Z JAN 10
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC PRIORITY 3126
RHMFIUU/USCBP WASHINGTON DC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
INFO RUEHDE/AMCONSUL DUBAI 0002

UNCLAS AIT TAIPEI 000063

SENSITIVE
SIPDIS

STATE FOR ISN/ECC - JFRIEDMAN, ACHURCH, NJOHANSON, AND ROWEN
STATE FOR EAP/TC - NTALBOT, DPARKER, TMANN
STATE FOR ISN/MTR - PDURHAM, SBOYER, JMAYES, AND RPALMIERO
DHS/CBP/INA FOR NRIVERA
DOE/NNSA/INECP FOR TPERRY AND SJONES

E.O. 12958: N/A
TAGS: ETTC MNUC PARM PREL KSTC KNNP PGOV ETRD TW IR
SUBJECT: EXBS: TAIWAN MONTHLY REPORTING CABLE - DECEMBER 2009

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

STRONGER PENALTIES FOR VIOLATIONS

1. (U) On December 15, the Legislative Yuan passed legislation to
increase the criminal penalty for export control violations to not
more than 5 years of imprisonment and a fine of not more than NTD
1,500,000 (approximately USD 46,583). Previously, the penalty was
not more than 2 years of imprisonment and a fine of not more than
NTD 300,000 (approx. USD 9,317).

RECENT IRANIAN TRADE DELEGATION VISIT TO TAIPEI

2. (SBU) On December 22, the Advisor met with Mr. Fan Che-ning,
Manager of the Asia and Pacific Section of the Taiwan External Trade
Development Council (TAITRA), to discuss TAITRA's recent trade
promotion activity with Middle Eastern countries, including Iran.
According to Fan, on December 11, 2009, TAITRA signed a memorandum
of understanding (MOU) with the Tehran Chamber of Commerce for
Industry and Mining to facilitate trade promotion between Iran and
Taiwan. On that day, TAITRA inaugurated two trade associations:
the Republic of China - Middle East Economic and Trade Association,
and the Taiwan-Iran Economic and Trade Association. With regard to
the MOU, Fan said TAITRA has signed over 100 such MOU's with
business organizations around the world. Fan stated that the
signing of the MOU was quite routine, and described the fact that
the MOU signing coincided with the Middle East Trade Week as a mere
coincidence. [Note: The "Trade Week" was actually a two-day event
on December 10 and 11.] He said TAITRA did not think there would be
any political message implied by the signing or the timing of the
MOU. In fact, he added, TAITRA hosted a trade mission with Israel
in late November. The Middle East Trade Week was attended by 43
business representatives from Iran, the United Arab Emirates, Egypt,
Yemen, and Syria.

(SBU) While the Middle East Trade Week was TAITRA's first trade
event to host a delegation from Iran, sales personnel from Iranian
companies have visited Taiwan companies in the past. Since these
are private company visits, TAITRA is not involved in arranging
them.

(SBU) Taiwan companies are keenly interested in exploring business
opportunities in the Middle East. According to Fan, Taiwan
companies are primarily interested in trade opportunities for
Taiwan's chemical, information technology, and industrial machinery
(not machine tool) industries.

(SBU) When asked to clarify how TAITRA ensures that Taiwan companies
do not contribute to Iran's proliferation goals, Fan said Taiwan
companies are fully aware of export control rules, and that TAITRA
holds twice-yearly export control seminars for industry.

II. TRAINING CONDUCTED DURING REPORTING PERIOD:

None

III. UPCOMING TRAINING:

1. (U) A Commodity Identification Instructor Training, implemented
by the Department of Energy, is scheduled for March 4 - 7, 2010

2. (U) A WMD Investigation and Prosecution Training, implemented by
the Department of Justice, is scheduled for March 10 - 12, 2010.

3. (U) An International Air Cargo Interdiction Training (IACIT),
implemented by Customs and Border Protection, is notionally
scheduled for late March 2010 at JFK Airport, New York. A follow-on
IACIT will take place in Taiwan a short time after the JFK program.


IV. UPCOMING MEETINGS:

None.

V. RED FLAG ISSUES:

None.

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

STANTON

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