VZCZCXRO3669
OO RUEHGH
DE RUEHIN #3681/01 3030921
ZNY SSSSS ZZH
O 300921Z OCT 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2796
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S E C R E T SECTION 01 OF 02 TAIPEI 003681 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/TC AND ISN/MTR 
 
E.O. 12958: DECL: 10/30/2026 
TAGS: ETTC UNSCR KNNP NK IR TW
SUBJECT: UNSCR 1718: TAIWAN SANCTIONS NORTH KOREA 
 
REF: A. STATE 169269 
 
     ¶B. TAIPEI 3551 
     ¶C. STATE 175007 
     ¶D. STATE 178011 
     ¶E. STATE 178573 
 
Classified By: AIT Deputy Director Robert S. Wang, REASONS 1.4 B/C 
 
¶1.  (C) Summary: On October 25, Taiwan Premier Su Tseng-chang 
strongly condemned North Korea's nuclear test and led 
Taiwan's Executive Yuan (EY) in passing a package of trade 
and financial sanctions against North Korea which echo the 
measures called for in UNSCR 1718.  Separately, AIT delivered 
the export control demarches in Refs C, D and E.  End summary. 
 
Taiwan Condemns North Korea Nuclear Test 
--------------------------------------------- --------- 
 
¶2.  (C) While Taiwan is not a UN member, AIT urges Taiwan to 
abide by UN resolutions whenever possible.  In response to 
Ref A demarche and AIT representations on the need for a 
strong response against North Korea, on October 25 Premier Su 
led the EY in passing a package of trade and financial 
measures along with a strongly worded condemnation of North 
Korea's actions as a threat to international peace and 
stability.  The proceedings of the October 25 EY meeting are 
still classified, but Taiwan trade and financial officials 
have discussed the contents with AIT.  Some of the sanctions 
will come into effect immediately, while others require 
legislative approval. 
 
Financial Sanctions 
-------------------- 
 
¶3.  (C) As part of the package of sanctions against North 
Korea, the EY passed three pieces of draft legislation.  The 
EY will submit the bills to the Legislative Yuan (LY) in the 
current LY session.  Taiwan's Central Bank of China (CBC) and 
Financial Supervisory Commission (FSC) jointly drafted an 
amendment to the Foreign Exchange Control Regulations, 
Article 19, and the International Finance Business 
Regulations, Article 5.  The Ministry of Economic Affairs 
(MOEA) drafted an amendment to the International Trade Act, 
Article 6.  The two finance bills provide legal authorization 
to freeze onshore or offshore bank accounts of individuals or 
entities of North Korea or other designated areas.  With this 
authorization, the FSC and CBC will order all onshore and 
offshore Taiwan banks to cease any financial transactions 
involving North Korean persons and entities.  FSC and CBC 
contacts told AIT that these two bills were basically copied 
from the financial measures Japan recently implemented.  They 
added that Taiwan will spare no effort to sanction North 
Korea in accordance with UNSCR 1718. 
 
Trade Sanctions 
-------------- 
 
¶4.  (C) Our contact at MOEA Bureau of Foreign Trade (BOFT) 
emphasized that while Taiwan was not a UN member, it was a 
responsible member of the international community and had 
agreed to adopt the measures in UNSCR 1718 to restrict trade 
with North Korea.  According to our MOEA contact, the EY 
forwared to the LY an amendment to the International Trade 
Act, Article 6 that calls for "strict" control (which our 
contact interpreted as a virtual prohibition) over North 
Korean ships or aircraft transiting Taiwan.  He noted that 
the LY still must pass the three amendments before they take 
effect, but said that accompanying administrative orders gave 
grounds to immediately begin inspecting North Korean vessels 
and added 109 items to Taiwan's sensitive commodities list of 
items that require an export license to be 
exported/transited/transshipped to Iran or North Korea. 
(Note: our contact explained that the EY document referred to 
104 new items, but MOEA subsequently calculated 109 different 
items were affected.) 
 
Export Control Demarches 
-------------------------------- 
 
TAIPEI 00003681  002 OF 002 
 
 
 
¶5.  (S) Separately, AIT relayed the export control 
information in Refs C, D, and E to our BOFT contacts and 
explained the comments from U.S. agencies.  BOFT did not have 
an immediate response to the new information regarding 
possible machine tool exports to Pakistan but said it would 
look into the allegations. 
YOUNG