US embassy cable - 05TAIPEI3139

S E C R E T TAIPEI 003139 
 
SIPDIS 
 
STATE FOR EAP/RSP/TC, NP/ECNP - KESSLER/MACLURE 
 
E.O. 12958: DECL: 07/22/2025 
TAGS: TSPA, PREL, ETTC, KSCA, TW, ESTH 
SUBJECT: TAIWAN:  ADVANCED SATELLITE REMOTE SENSING SPACE 
COOPERATION 
 
REF: STATE 132849 
 
Classified By: AIT Director Douglas H. Paal, Reason 1.4 b and d 
 
1. (S)  Summary.  AIT ESTOFF met with National Space Program 
Office (NSPO) Director Lance Wu on July 22 to deliver reftel 
demarche. Taiwan has already approved a budget to purchase 
remote sensing images.  Taiwan plans to "co-own" images 
rather than to lease them.  Taiwan does not plan to hold an 
open bid, but will instead independently and 
non-competitively select a U.S. image service company with 
which to work. Taiwan is very anxious about keeping the 
project as low profile as possible.  Taiwan is not interested 
in a synthetic aperture radar (SAR) at this time.  Wu 
proposed holding further consultations in Washington at the 
end of August. End Summary. 
 
Budget Approved for U.S. Image Service Company 
--------------------------------------------- - 
 
2. (S) AIT ESTOFF met with NSPO Director Lance Wu on July 22 
to deliver reftel demarche.  Wu stated that all decisions on 
the purchasing of a remote sensing system are made by a 
Committee of the National Security Council (NSC).  Wu 
reported that the NSC committee had met on July 21 and 
approved funding for the entire budget request for the 
purchase of an advanced satellite remote sensing system.  He 
also stated that Taiwan is committed to work with a U.S. 
company and is not considering working with other countries. 
Taiwan also does not plan to conduct an open bid for the 
project.  Taiwan is very concerned with keeping the project 
as low profile as possible.  Taiwan is concerned about 
criticism by the PRC and therefore wants to limit the number 
of outside players involved.  To this end, Wu revealed that 
Taiwan has decided to work with an image service company 
(such as Digital Grove or Space Imaging) rather than with a 
manufacturer.  Wu noted that the company with which it would 
like to work will be decided independently and 
non-competitively by another meeting of the an NSC Committee 
on August 15. He urged in strongest terms that Washington not 
disclose any of the above information to anyone in the 
private sector. 
 
Draft Agreement 
--------------- 
 
3. (S) Wu briefly glanced at the draft agreement.  He 
expressed surprise that it proposed that Taiwan would lease a 
remote sensing system.  Taiwan does not plan on leasing the 
images.  Taiwan's vision is that it would "co-own" the remote 
sensing images with the U.S. company from which it partners 
for this project.  Specifically Taiwan would own all of the 
images of Taiwan and the PRC while the US partner company 
would own all of the images of the rest of the world, which 
the U.S. company would have the right to sell on the open 
market. 
 
4. (S) Regarding the sections on a SAR remote sensing space 
system, Wu noted that this was beyond Taiwan's sights at this 
point.  Nonetheless, Wu did sound intrigued by the 
possibility of a SAR as a next step once a commercial remote 
sensing arrangement is up and running. 
 
5. (S) Regarding the overall draft agreement, Wu noted 
concerns about keeping the information confidential.  He was 
worried that not everyone in TECRO could be trusted (Wu 
implied that he had concerns about information getting leaked 
to the PRC). Unfortunately, Wu left for meetings in Europe on 
entirely different issues on Saturday July 23 and will not 
return to Taiwan until August 5.  Wu promised to read over 
the Agreement and to provide more comprehensive comments to 
AIT's ESTOFF upon his return. 
 
Consultations 
------------- 
 
6. (S) Wu proposed that consultations about the draft 
agreement and Taiwan's plans to purchase a remote sensing 
system be held in Washington in late August.  Wu is scheduled 
to be in Colorado beginning on August 22 to discuss the 
COSMIC program between NSF and Taiwan's National Science 
Council (under the auspices of AIT/TECRO).  He proposed that 
he fly to DC following those meetings to discuss these issues. 
PAAL