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Cablegate: Taiwan: Results of Blue Lantern End-Use Check On

VZCZCXYZ0006
RR RUEHWEB

DE RUEHIN #0156 0400931
ZNR UUUUU ZZH
R 090931Z FEB 10
FM AIT TAIPEI
TO SECSTATE WASHDC 3310

UNCLAS AIT TAIPEI 000156

SIPDIS

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 END-USE CHECK ON
APPLICATION 050208291

REF: STATE 04982

1. (U) Summary: Per reftel request, AIT/T contacted the consignee
and visited the end-user, Seng-Feng Corp. Collected information
shows the bona fides of the end user. End summary.

Foreign Consignees
------------------
2. (U) Mr. Albert Huang of Step Electronics told us that he received
the order for 10 rotary joints (reftel) from another Taiwan company,
Borntek, LTD. Step Electronics serves as a sole agent for Sage
Laboratories in Taiwan.

3. (U) Ms. Anne Lee from Borntek explained to AIT/T that the company
received the order from the end user, Seng Feng Corporation. As
Step Electronics is the only agent in Taiwan selling such parts from
Sage Laboratories, Borntek placed the order with Step Electronics.
Ms. Lee shared the copy of the purchase order, dated 21 December
2009, which showed an order of 10 rotary joints from Borntek to Step
Electronics.

4. (U) Both Step Electronics and Borntek stated they would not be
involved in the receipt or processing of the subject parts. Subject
parts will go directly to the end user, Seng Feng Corporation.

5. (U) Step Electronics has been in the business of importing and
selling defense articles for 20 years, and Mr. Huang confirmed that
he is familiar with the restrictions of the U.S.-origin defense
articles.

Seng Feng Corporation
---------------------
6. (U) Econoff visited Mr. Eric Lin of Seng Feng Corporation on 26
January 2010. As of early January 2010, the company had moved from
its original office at No. 391, Chung Shan Rd., Hsinchuu City to a
new building, located at No. 169-27, Neu Pu S. Rd., Hsinchu City.
Because of the recent move, there is still no landline phone
connected. Mr. Lin's cellphone number is 0933-118-103.

7. (U) Seng Feng has been ordering USML articles for 2-3 years as
part of its antennae design business. The company does not have
another office. Before moving to its new facility, Seng Feng shared
office space with three other companies, including Chin Yan,
Skyline, and Kingtek. Chin Yan produces unmanned aerial vehicles
(UAV); Skyline specializes in flight control computer systems; and
Kingtek bids for business contracts and research projects from
unspecified government entities. Seng Feng mainly works with
Kingtek by providing design services for instruments used in
receiving data from unmanned aerial vehicles (UAVs).

8. (U) Regarding parts mentioned in reftel, Seng Feng will use them
in four identical instruments designed to receive data from UAVs
employed to fly into typhoons. This collection of data will be used
to analyze typhoon movement. The overall job is a two-year typhoon
analysis project contracted by the Ministry of Economic Affairs.
According to Mr. Lin, once Seng Feng finishes making the
instruments, they could work with many other entities, including the
Central Weather Bureau and weather research college programs working
on similar projects. When the instruments are finished, he, another
engineer from his company, or a colleague from project partner
Kingtek will transport the equipment to the worksite and will remain
onsite to operate it. The four instruments will remain in the
custody of Seng Feng or Kingtek employees and will be stored at
either Seng Feng or Kingtek's facilities when not in use.

9. (U) Mr. Lin provided AIT/T a copy of the purchase order to
Borntek, dated 19 December 2009. The quantity of the rotary joints
matched the number mentioned in reftel.

10. (U) Seng Feng has also designed notebook antennae for Hewlett
Packard, Dell, Asus, and Acer in the last two years. However, due
to very low profit, Seng Feng has stopped doing business with these
computer companies.

11. (U) Mr. Lin understands the U.S.-origin defense article
restrictions. Seng Feng's new building is equipped with electronic
locks on the main entrance, and alarm sensors in the storage room.
Mr. Lin is one of four workers at the facility, all of whom have
access to the storage and assembly areas of the building.

STANTON

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