US embassy cable - 04TAIPEI3783

C O N F I D E N T I A L TAIPEI 003783 
 
SIPDIS 
 
STATE FOR EAP/TC AND NP/ECC 
STATE PASS USTR KI 
STATE PASS AIT/W RUZICKA 
 
E.O. 12958: DECL: 11/22/2024 
TAGS: ETTC, KSTC, PARM, TW 
SUBJECT: TAIWAN EXPORT CONTROL ISSUES 
 
REF: A. STATE 243963 
     B. STATE 240201 
     C. 11/12/04 MESERVE-KEEGAN E-MAIL 
     D. STATE 215802 
     E. TAIPEI 03483 
 
Classified By: AIT Director Douglas Paal; Reasons:  1.4(b), (d) 
 
 
1. (C) Summary: AIT relayed ref A and ref B talking points, 
and ref C inquiry regarding possible export control talks on 
December 15-16, to Taiwan's Board of Foreign Trade (BOFT) and 
National Security Council (NSC) officials.  Both BOFT and NSC 
indicated tentative acceptance of December 15-16 dates. 
Request Washington confirmation of proposed export control 
talk dates/topics/desired participants (para 7).  BOFT 
identified items imported and exported by the Royal Richard 
Company (ref D) and provided a report on the types of machine 
tools exported by the Cheng Hwee Company (ref E).  End 
Summary. 
 
2. (C) On November 10 and 17 AIT delivered ref A and B 
demarches to NSC and BOFT officials.  Taiwan has not yet 
responded to these demarches, but promised it will do so 
after it completes investigation of the information provided. 
 
 
Export Control Policy Talks on December 15-16, 2004 
--------------------------------------------- ------ 
 
3. (C) AIT also informally raised the idea of export control 
talks in Taipei on December 15-16 with NSC and BOFT. Both 
agencies responded positively but asked for agenda details 
and desired participants.  BOFT Import/Export Administration 
Director Peter Ho suggested consulting individually with 
principals in Taiwan's key export control agencies on 
December 15, followed by an interagency meeting on December 
16.  NSC Senior Advisor Lin Chen-Wei also told AIT that 
December 15-16 was acceptable but noted a formal AIT proposal 
for talks would be needed to hold the dates open. 
 
BOFT Report on Royal Richard 
---------------------------- 
 
4. (C) On November 18, BOFT detailed Royal Richard's imports 
and exports in 2004 (refs D and E): Royal Richard imported 4 
kilograms of photographic papers and 8 kilograms of 
photographic films from South Korea in May 2004.  The total 
value was USD180.  Royal Richard exported 40 units of bug 
zapper lights in August 2004 to Ghana worth USD411.  Taiwan 
regulations require ships to formally declare hazardous 
chemicals such as sodium cyanide that transit Taiwan ports 
even if the cargo does not pass through Customs inspection or 
officially enter Taiwan Customs' territory.  Customs 
statistics show no transshipments through Taiwan in 2004 of 
any Royal Richard cargoes, and no transshipments of sodium 
cyanide to North Korea or China. 
 
Cheng Hwee Trading Company 
-------------------------- 
 
5. (C) Also on November 18, BOFT relayed to AIT the Taiwan 
Industrial Technology Research Institute (ITRI) investigation 
report on the 158 different items that the Cheng Hwee Trading 
Company had exported to North Korea over the past four years 
(ref E).  The report found that none of the items were 
strategic high technology commodities (SHTC).  BOFT added 
that even under Taiwan's new "catch-all" provisions, none of 
these items needed export licenses since there was no proof 
they would be used to produce military equipment. 
 
6. (C) Comment: Taiwan continues to insist that it is not 
stopping machine tool shipments to North Korea.  Taiwan's 
trade with North Korea involves only a few companies and a 
negligible percentage of its overall trade, yet authorities 
resist taking stronger measures to clamp down on machine tool 
exports. AIT believes that policy-level export control 
meetings are needed to drive home the message that potential 
damage to Taiwan's reputation far outweighs the benefits of 
trade with North Korea.  End comment. 
 
7. (C) Action Request: Request front channel confirmation of 
the proposal for export control talks on December 15-16, 
information on topics to be discussed, and desired agency or 
individual interlocutors.  End action request. 
 
PAAL