VZCZCXYZ0020
RR RUEHWEB

DE RUEHIN #0248 0320823
ZNR UUUUU ZZH
R 010823Z FEB 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 3952
INFO RUEHSS/OECD POSTS COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 6311
RUEHJA/AMEMBASSY JAKARTA 4001
RUEHLJ/AMEMBASSY LJUBLJANA 0016
RUEHNE/AMEMBASSY NEW DELHI 0176
RUEHTN/AMCONSUL CAPE TOWN 0079
RUEKJCS/SECDEF WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS AIT TAIPEI 000248 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EB/IFD/ODF, EB/ESC/TFS AND EAP/TC 
TREASURY FOR IA/OFFICE OF TRADE FINACE 
 
E.O. 12958: N/A 
TAGS: EFIN MNUC OECD TW
SUBJECT: TAIWAN EXPORT CREDITS FOR SHIPMENTS TO IRAN 
 
REF: SECSTATE 4760 
 
Taiwan Export-Import Bank 
------------------------- 
 
¶1. (SBU) Per reftel request, AIT/T Econ Chief on January 24, 
25 and 26 requested Taiwan banking authorities provide 
information on the status of export credit facilities Taiwan 
provides to Iran.  While Taiwan authorities are still 
gathering comprehensive information to respond to our 
request, the President of Taiwan's Export-Import Bank, LII 
Sheng-yann, told us January 25 that Taiwan provides about 
US$13 million in short-term credits for Taiwan exporters to 
conduct business with Iran.  President LII said their 
long-term exposure was "very small." 
 
¶2. (SBU) LII, along with his two Executive Vice Presidents, 
Charles C.C. WANG and Robert R.F. CHU, emphasized that Taiwan 
EXIM Bank has no relationship of any kind with either Iranian 
banks or Iranian companies.  LII said his bank only extends 
credit to Taiwan exporters.  Taiwan's EXIM also provides 
export credit insurance of around US$20 million.  They said 
they have never had a claim filed on Iran for the insurance 
they have provided and do not have any delinquent accounts on 
the credit side either. 
 
Central Bank Collecting Data 
---------------------------- 
 
¶3. (SBU) On January 24, we met with George CHOU, Director of 
the Foreign Exchange Department, Central Bank of China (CBC). 
 We advised him that the U.S. is proposing to limit export 
credits for Iran and that as a first step we would like to 
understand the nature and volume of export credits Taiwan may 
be extending to Iran.  CHOU said he believes Taiwan's 
Export-Import bank extends credits for trade with Iranian 
companies and agreed to find out how much business is done by 
Taiwan's official credit agencies and also see if data is 
available on credits that may be provided by private 
commercial banks.  CHOU also suggested we meet with the 
Financial Supervisory Commission (FSC), Taiwan's banking 
regulator.  On January 31, CHOU notified us that he is still 
collecting information and believes that several private 
commercial banks in Taiwan provide export credits for trade 
with Iran. AIT will forward further information upon receipt. 
 
Banking Supervisor 
------------------ 
 
¶4. (SBU) On January 26, per CHOU's suggestion, we visited the 
FSC and met with CHANG Tzy-hao, Assistant Director, Banking 
Bureau, LO Tien-hui, Director, International Affairs 
Department and several staff people.  We posed the same 
question to FSC as we had to CBC.  The FSC staffers also 
agreed to look into the question, but did not have any 
immediate information on the amount or type of credits 
available for trade with Iran. 
WANG