US embassy cable - 05TAIPEI2672

C O N F I D E N T I A L TAIPEI 002672 
 
SIPDIS 
 
DEPT FOR EAP/TC 
 
E.O. 12958: DECL: 06/20/2015 
TAGS: ETTC, KNNP, PARM, PREL, ECON, TW 
SUBJECT: (C) TAIWAN REPORTS ITALIAN MANUFACTURERS WILLING 
TO ACCEPT CHEMICALS 
 
REF: A. STATE 109074 
 
     B. TAIPEI 2593 
 
Classified By: AIT Director Douglas H. Paal, Reason 1.5 b/d 
 
1. (C) On June 20, AIT/T Economic Section Chief met with 
Bureau of Foreign Trade (BOFT) Chief Secretary Peter Ho to 
discuss the disposal of 39,500 kg of phosphorus 
pentasulfide (P2S5) seized by Taiwan authorities in August 
2003.  AIT/T had delivered information on how to destroy 
the chemical to BOFT on June 13.  Ho requested another 
meeting to inform AIT/T that the Italian manufacturer of 
the chemical, Italmatch Chemicals, had agreed to accept the 
return of the P2S5.  Ho reported that Taiwan officials had 
reached this understanding with the firm the previous week, 
after the firm had a chance to review photos of the 
chemical drums to confirm that they had been stored 
properly.  According to Huang, the Italian firm has agreed 
to accept the P2S5 free of charge if Taiwan pays for 
shipping costs (c&f).  Italmatch will pay to insure 
shipment.  BOFT finds the terms acceptable and plans to 
proceed with returning the chemicals.  The Director General 
of BOFT has approved the plan and is waiting for the 
Minister of Economic Affairs to give final approval. 
 
2. (C) Economic Section Chief told Ho that the United 
States found this solution to be perfectly acceptable. 
Economic Section Chief also noted that the United States 
would want to be able to verify the return to the 
manufacturing 
company and asked that BOFT keep AIT/T fully informed of 
the plans to ship the chemicals.  He asked specifically 
that BOFT notify AIT/T of the shipping company to be used, 
the name of the actual ship, its route and schedule.  Ho 
replied that Taiwan would be willing to share all 
information regarding the shipment with the United States. 
He expects to have more detailed plans after BOFT has more 
information from Italmatch later in the week. 
 
3. (C) Economic Section Chief noted to Ho that this marked 
a change from what BOFT had told AIT/T earlier about the 
possibility of returning the P2S5 to the manufacturer. 
Taiwan had previously indicated that the firm was unwilling 
to accept return of the chemical.  Ho agreed but did not 
offer an explanation.  BOFT Export Control Working Group 
Chief Wally Su later told AIT/T that Taiwan's 
representative office in Rome had failed to accurately 
communicate Taiwan's request to Italmatch.  After BOFT 
contacted the firm directly and thoroughly explained the 
situation, Italmatch was quite willing to accept return of 
the chemical. 
PAAL