US embassy cable - 05TAIPEI818

C O N F I D E N T I A L TAIPEI 000818 
 
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: 02/24/2025 
TAGS: ETTC, PARM, PREL, TW 
SUBJECT: MTAG: TAIWAN ACTS ON EXPORT CONTROL INTELLIGENCE 
 
REF: A. TAIPEI 683 
     B. 04 STATE 243963 
 
Classified By: AIT DIRECTOR DOUGLAS H. PAAL, REASONS 1.4 (b,d) 
 
1. (C) Summary:  Taiwan media have reported that the Taoyuan 
District Prosecutors' Office raided the residence and company 
buildings of Tony Hsieh (Jin-yi) on February 24, 2005 
(reftels).  A Taiwan Justice Ministry contact called AIT on 
the evening of February 24 to alert us to the late-breaking 
media reports.  Our contact promised a complete report 
through "intelligence channels" after the results of the raid 
become clearer.  End Summary. 
 
Investigation of Tony Hsieh 
--------------------------- 
 
2.  (C) Taiwan's evening media on February 24 carried an 
initial report that the Taoyuan District Prosecutors' Office, 
based on information from Taiwan intelligence agencies, 
seached the residence and company buildings of Tony Hsieh for 
evidence of Hsieh's attempts to export key Scud missile 
components to Libya.  Further media reports on February 25 
added that when Prosecutors questioned Hsieh, he claimed he 
did not know the items exported to Libya were controlled 
military items.  The Prosecutor's Office has requested a 
court order to detain Hsieh for further questioning.  While 
searching his residence on the evening of February 24, 
investigators found that Hsieh owned two small companies that 
in turn subcontracted to smaller companies to produce 
components for missile impulse pumps and turbine masks. 
These are the components that were intercepted in London in 
1999 in an air cargo shipment bound for Libya from one of 
Hsieh's companies.  In April 2000 Tony Hsieh was arrested in 
Switzerland while on his way from Hong Kong to Libya. 
Additional missile components were found in his baggage. 
 
3.  (C) According to the media reports, in its four-year 
investigation of Tony Hsieh, Taiwan intelligence agencies 
found no evidence he was supported by either China or North 
Korea. Media reports also quoted Taiwan intelligence sources 
that Hsieh once invited a missile expert from the Chung Shan 
Institute of Science and Technology to his house to discuss 
missile motor component production.  However, when Hsieh 
showed the expert the blueprint for the component, the expert 
declined the request for information. 
 
4.  (C) Comment: AIT views the raids and the phone call as 
positive attempts by Taiwan authorities to respond to U.S. 
export control concerns.  The phone call from the Taiwan 
Justice Ministry implied the raid was in response to a fax 
that AIT/T/ECON sent on February 4 asking for information 
about Hsieh.  It will be interesting to see what the promised 
complete report says the investigators were doing for the 
past four years. 
PAAL