US embassy cable - 05TAIPEI683

C O N F I D E N T I A L TAIPEI 000683 
 
SIPDIS 
 
STATE FOR NP/CBM, INR/EC, NKWG 
STATE PASS AIT/W, NSC FOR WILL TOBEY, VICTOR CHA, AND DAVID 
SHEDD 
 
E.O. 12958: DECL: 02/18/2025 
TAGS: ETTC, PARM, PK, PREL, SY, TW 
SUBJECT: MTAG: TAIWAN ON EXPORT CONTROL ISSUES 
 
REF: A. STATE 26545 
 
     B. STATE 19727 
     C. 02/17/05 CROUCH-NEELY EMAIL 
     D. 04 STATE 243963 
 
Classified By: AIT DIRECTOR DOUGLAS H. PAAL, REASONS 1.4 (b,d) 
 
Ref 
1. (C) Summary:  AIT delivered ref A talking points to BOFT 
and to NSC on February 14, 2005.  BOFT reported on February 
18 that the Ecoma Company has provided assurances it will 
cease trade with Iran.  In a meeting with AIT on February 17, 
BOFT provided updates on several export control cases, and 
confirmed that March 22-25 would be acceptable dates for EXBS 
training on legal issues.  Separately, in response to ref D 
demarche, MJIB reported that it has already conveyed results 
of its investigations of Tony Hsieh to U.S. agencies via 
intelligence channels.  End Summary. 
 
Ecoma Agrees to Cease All Iran Trade 
------------------------------------ 
 
2.  (C) Responding to our ref B demarche on conditions for 
reconsideration of INPA sanctions, BOFT Director Peter Ho 
reported to AIT on February 18 that the Ecoma Company had 
given BOFT assurances that it would immediately cease all 
trading activities with Iran and would provide BOFT with full 
information on its dealings with Iran. 
 
She Hong/Hartford Sales to Pakistan 
----------------------------------- 
 
3.  (C) During a February 17 meeting with BOFT, AIT again 
raised the cases mentioned in our ref A demarche.  Director 
Ho replied that according to BOFT records, during the years 
2000 through 2004, the She Hong Company (Hartford) had 
exported seven shipments of machine tools to Pakistan.  After 
receiving ref A demarche, BOFT instructed Taiwan Customs to 
provide a list of all end-users identified on the shipping 
documents for these shipments to Pakistan, and requested 
Hartford to provide detailed specifications of the items 
shipped.  Ho expressed frustration over the limitations of 
the computer system currently used by Taiwan Customs and its 
inability to sort records by the end-user, or to verify the 
accuracy of the information provided regarding end-users.  Ho 
said that after receiving detailed specifications from 
Hartford, BOFT will determine and report to AIT on the listed 
end-users and whether any of the shipments included sensitive 
high technology commodities. 
 
Long Chang Company Sales to Syria 
--------------------------------- 
 
4.  (C) During the February 17 meeting AIT also raised the 
ref A case of the Long Chang Company's machine tool sales to 
Syria.  BOFT responded that according to its records and 
interviews with company executives, the Long Chang Company in 
May 2003 made two shipments to the Al Taki General Trading 
Company of Syria, each with two sets of machine tools.  Each 
of the four machine tool sets included a German-made CNC and 
copies of the international import/export certificate showing 
Dr. Johannes Heidenhain GmbH as the exporter, Al Taki as the 
agent, and the &Golden Rose Workshop8 as the end user of 
these commodities. 
 
Ching Hung Company Sales to Syria 
--------------------------------- 
 
5.  (C) BOFT also reported on the ref A case of the Ching 
Hung Company's two shipments of electrical discharge machines 
to Al Taki in 2003.  The BOFT investigation indicated that 
these two shipments were Ching Hung's only dealings with Al 
Taki and only exports to Syria.  BOFT's investigation found 
the machines were not sensitive high technology commodities. 
 
EXBS Training 
------------- 
 
6. (C) BOFT confirmed that the dates March 22-25 would be 
acceptable for holding the EXBS legal training. 
 
Tony Hsieh Investigation 
------------------------ 
 
7.  (C) Separately, Taiwan's MJIB responded to our and BOFT's 
inquiries for information on Tony Hsieh (ref D) by informing 
us that the complete results of its investigation into Hsieh 
and his companies had already been conveyed to Washington 
agencies via intelligence channels. 
PAAL