VZCZCXYZ0015
PP RUEHWEB

DE RUEHIN #2345/01 2900709
ZNR UUUUU ZZH
P 170709Z OCT 07
FM AIT TAIPEI
TO RHMFIUU/USCBP WASHINGTON DC PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY 7162
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
INFO RHMFISS/JOINT STAFF WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC

UNCLAS AIT TAIPEI 002345 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR ISN/ECC - YWONG, ACHURCH AND KCROUCH 
DEPT FOR EAP - SBREMNER 
CBP/INA FOR RWATT AND JGOUGE 
DEPT FOR ENERGY/NNSA FOR T. PERRY AND S. JONES 
 
E.O. 12958: N/A 
TAGS: ETTC MNUC PARM PREL KSTC KNNP TW
SUBJECT: EXBS: TAIWAN MONTHLY REPORTING CABLE - SEPTEMBER - OCTOBER 
5, 2007 
 
¶I.  BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY 
MANAGERS: 
 
(SBU) During the week of November 19, the EXBS Advisor will be in 
Washington, D.C. for her 6-month review and consultation. 
 
II. COMPLETED ACTIONS FOR THE REPORTING PERIOD. 
 
¶A.  SITE ASSESSMENTS AND MEETINGS DURING REPORTING PERIOD: 
 
¶1. (SBU) On September 12 and October 2, the EXBS Advisor met with 
Special Agents of the Ministry of Justice Investigation Bureau 
(MJIB)and a Prosecutor from the Taiwan High Prosecutors Office of 
the Ministry of Justice, respectively. 
 
During the September 12 meeting, MJIB officials explained that their 
mission is to investigate crimes related to corruption, election 
fraud, money laundering, drug trafficking, cyber crime and national 
security.  Export controls, counter-terrorism, anti-terrorism, and 
counter-proliferation fall under national security investigations. 
The branch offices located throughout Taiwan actually investigate 
cases under guidelines provided by headquarters.  After an MJIB 
Special Agent has gathered sufficient evidence on a case, the case 
is then referred to the Prosecutors Office or to the Bureau of 
Foreign Trade (BOFT) of the Taiwan Ministry of Economic Affairs for 
disposition.  MJIB does not have the authority to close out cases. 
To date in 2007, MJIB investigated five export control cases, two of 
which have been closed, two indicted, and one on-going. 
 
During the October 2 meeting, the Taiwan High Prosecutors Office 
official explained that when his office receives the case file, it 
is assigned to a line Prosecutor.  The assigned Prosecutor then will 
review the file and determine whether sufficient evidence exists to 
merit criminal prosecution; i.e., indict (bring formal charges) 
against the accused.  If the decision is not to indict, the assigned 
Prosecutor will draft a "non-indictment" paper for the file.  The 
assigned Prosecutor can also decide to suspend the indictment for 
less serious crimes and for first time offenders. 
 
Prosecutors as well as the judge have the authority to grant search 
warrants requested by investigators and to issue subpoenas to compel 
testimony by witnesses.  Prosecutors have the authority to settle 
the penalty portion of a case if the statutorily imposed penalty 
does not include the death penalty, life in prison, or more than 
three years of imprisonment.  Since export control violations carry 
a maximum of two years of imprisonment, prosecutors can settle what 
penalty can be imposed in export control cases.  Prosecutors, 
however, do not have the authority to settle the actual charges or 
the count of charges.  All settlements are approved by a judge. 
 
For those cases that are not settled, the sitting judge renders the 
final verdict.  The judge will consider evidence submitted by the 
government and the defense.  The standard of proof for criminal 
cases is "beyond a reasonable doubt."  In 2003, criminal procedural 
law was amended to include the right to cross-examine witnesses. 
 
 
Local District Courts are trial courts and the High Court and the 
Supreme Court are appeals courts.  Only serious crimes can be 
appealed to the Supreme Court.  Because export control cases have a 
statutory maximum of two years of imprisonment, they are not 
considered serious crimes and cannot be appealed to the Supreme 
Court. 
 
¶2. (SBU) During the week of September 17, the EXBS Advisor was in 
Washington, D.C. for export control meetings. 
 
¶3. (U) On October 5, the EXBS Advisor participated in the 
Taiwan-Germany Industry-Government Outreach Seminar in Taipei.  One 
hundred and ten company representatives attended; 42 representatives 
from German-affiliated companies, 50 representatives from Taiwan 
companies, and the remainder from "other" companies.  (The 
U.S.-affiliated companies fall under the "other" category.) 
 
The one-day seminar consisted of reviews of German and Taiwan export 
control systems; elements of internal controls promoted by Germany; 
export control outreach programs by Taiwan; and presentations of 
internal control programs by Siemens Limited Taiwan and DuPont 
Taiwan Limited.  Two export control officials from the Federal 
Office of Economics and Export Control (BAFA) and one from the 
German Federal Ministry of Economics and Technology (BMWi) traveled 
from Germany to Taiwan for the seminar. 
 
Not surprisingly, the questions from attendees centered on issues 
related to identification of items on the control list; loss of 
business opportunities due to export control compliance by 
companies; costs associated with setting up an internal control 
system (computer, software, personnel); license application 
processing time; and extraterritorial application of export control 
laws (this was a question for the United States since Germany and 
Taiwan do not have reexport controls as implemented by the United 
States).  In responding to the questions, officials from Germany, 
Taiwan, and the United States stressed the importance of building 
export control knowledge within the company and the necessity of 
corporate management's commitment to export controls.  Siemens and 
DuPont officials added that, while there is a direct cost associated 
with complying with export control requirements, they have 
successfully used their sound internal controls as a marketing tool 
in international business. 
 
¶B.  BLUE LANTERN: 
 
(SBU) On October 1, the EXBS Advisor accompanied officials of the 
Directorate of Defense Trade Controls (DDTC) to a meeting with the 
Taiwan Ministry of National Defense (MND) as part of DDTC's Blue 
Lantern Team visit to Taiwan.  The Blue Lantern Team briefed MND 
officials on the legal basis for U.S. munitions controls; the 
structure of DDTC; and purpose and goals of Blue Lantern checks. 
The MND officials reviewed their organizational structure; legal 
basis for Taiwan munitions controls; and MND's strategic plan for 
the next five years.  During the discussion, the MND officials 
stated that a program that explains the complicated U.S. export 
controls of munitions would benefit businesses that import U.S. 
munitions and munitions parts into Taiwan.  The Blue Lantern Team 
stated that they are discussing organizing an Asia regional 
munitions export control seminar with the Society for International 
Affairs (SIA).  (The SIA is a Washington-based nonprofit 
organization that organizes munitions control programs in the United 
States and overseas.)  The Blue Lantern Team said they would inform 
MND officials if such a program is organized. 
 
¶C.  TRAINING CONDUCTED DURING REPORTING PERIOD: 
 
(U) No EXBS training was conducted during the reporting period. 
 
III. UPCOMING TRAINING: 
 
(U) The two-day Transit/Transshipment training, implemented by the 
Department of State through Los Alamos Technical Associates, Inc. is 
being planned on October 30-31 in Taipei. 
 
(U) The week-long Targeting and Risk Management training implemented 
by Customs and Border Protection is being planned for the week of 
November 12 in Kaohsiung. 
 
IV. UPCOMING MEETINGS 
 
(SBU) On October 23, the EXBS Advisor and a Container Security 
Initiative Consultant will meet with officials of the MJIB to 
discuss recently reported export control cases. 
 
(U) On October 24, the EXBS Advisor and an officer from the Economic 
Section will meet with two professors from Kainan University in 
Taoyuan County to discuss economic and security implications of 
relocation of Taiwanese high-tech companies to the People's Republic 
of China.  The two professors participated in BOFT's visit to 
certain import and export companies in August 2007. 
 
¶V. RED FLAG ISSUES: 
 
None. 
 
POC for this report is Mi-Yong Kim, EXBS Advisor. 
Telephone +886 2 2162 2347. 
 
YOUNG