VZCZCXYZ0000
PP RUEHWEB

DE RUEHIN #1747/01 3530701
ZNR UUUUU ZZH
P 180701Z DEC 08
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC PRIORITY 0584
RHMFIUU/USCBP WASHINGTON DC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

UNCLAS AIT TAIPEI 001747 
 
SENSITIVE 
SIPDIS 
 
STATE FOR ISN/ECC - YWONG, ACHURCH, NJOHANSON, AND ROWEN 
STATE FOR EAP/TC - MTOYRYLA, DPARKER 
STATE FOR ISN/MTR - PDURHAM, SBOYER, JMAYES, AND RPALMIERO 
DHS/CBP/INA FOR MAWATT 
DOE/NNSA/INECP FOR TPERRY AND SJONES 
 
E.O. 12958: N/A 
TAGS: ETTC MNUC PARM PREL KSTC KNNP TW
SUBJECT: EXBS: TAIWAN MONTHLY REPORTING CABLE - DECEMBER 2008 
 
¶I.  BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS: 
 
(SBU) The Advisor drafted the export control section of AIT Director 
Stephen Young's speech for the 2008 International Conference on 
Homeland Security and Technology held on December 11 in Taipei.  A 
summary of press reports on the export control part of the speech 
from the United Daily News and Economic Daily News follows: 
 
BEGIN SUMMARY 
 
In the 2008 International Conference on Homeland Security and 
Technology Wednesday, AIT Director Stephen Young said "a by-product 
of Taiwan's amazing economic success is that it now produces many 
products and technologies of potential interest to terrorists." 
Responding to this statement, Taiwan's technology companies said the 
U.S. is the main country that develops high technology and Taiwan 
companies can only be regarded as technology-manufacturing 
companies.  However, some companies admitted that Taiwan machine 
tools are cost-effective and therefore have become favorites of many 
terrorist organizations and countries supporting terrorism.  Taiwan 
companies also pointed out that terrorist organizations' procurement 
of Taiwan products is because of globalized trade and that Taiwan 
companies should not be blamed their action. 
 
END SUMMARY 
 
II. COMPLETED ACTIONS FOR THE REPORTING PERIOD 
 
¶A.  SITE ASSESSMENTS AND MEETINGS DURING REPORTING PERIOD: 
 
¶1. (SBU) On the margins of the Industry-Government Outreach Program 
in Taichung (December 10 - 11), the Advisor met with an official 
from the National Science Council (NSC) to get an update on the 
Transfer of Intangible Technology Legislation.  The official stated 
that the legislation still is in draft stage.  The Advisor said she 
heard from other Taiwan agencies that the likelihood of the 
Executive Yuan (EY) submitting the bill to the Legislative Yuan (LY) 
for consideration is slim, and that should the EY submit the bill to 
the LY, the chances of the LY actually passing such a bill is slim 
to none.  The official agreed that that is the current assessment. 
 
 
(SBU) The official did, however, agree with the Advisor that under 
the current regulatory scheme, Taiwan could control exports of 
technology despite the Bureau of Foreign Trade's (BOFT) 
interpretation that it does not have such authority.  The official 
said the NSC and BOFT have had discussions on this very issue and 
hopes that BOFT will broaden its interpretation of its own 
authority.  The NSC official is a lawyer and works in the Legal 
Affairs Committee. 
 
(SBU) (Note:  Taiwan incorporated all items controlled by 
nonproliferation regimes into its national control list.  However, 
it did not change the language in the regulations to specifically 
control technologies that are on the control list.  The Advisor has 
had numerous discussions on this inconsistency and has stated BOFT 
could interpret the language so that technology is controlled if it 
so desires.  In the past, BOFT stridently disagreed with the broader 
interpretation.  Recently, however, the Advisor's sense is that BOFT 
is thinking its strict interpretation of the regulations may not be 
the proper one.) 
 
¶2. (SBU) On December 16, the Advisor met with an official from the 
Department of Treaty and Legal Affairs of the Taiwan Ministry of 
Foreign Affairs to discuss Taiwan's latest attempt to participate in 
the Organization on the Prohibition of Chemical Weapons 2008 
Conference of States Parties.  As happened on eight previous 
occasions, Taiwan's application to participate in the Conference, 
even as a non-governmental organization, was blocked by China.  AIT 
sent a separate note on the CWC issue to certain offices at State. 
 
 
¶B. BLUE LANTERN: 
 
(SBU)  No checks were conducted by the Advisor during the reporting 
period. 
 
III. TRAINING CONDUCTED DURING REPORTING PERIOD: 
 
(SBU) On December 10-11, an Industry-Government Outreach Program, 
implemented by the Department of Energy, was held in Taichung. 
Approximately 75 company representatives and Taiwan officials 
attended the program.  The goal of the program was to increase 
industry's awareness of its export control responsibilities and to 
stress the importance of industry-government cooperation in meeting 
international nonproliferation goals.  Most of day two was devoted 
to presentations and demonstration of the ICP software, a tool that 
companies can use to comply with export control laws and 
regulations.  A separate note on the advisability of having 
consultants participate as industry representatives for IG programs 
has been sent to ECC. 
 
IV. UPCOMING TRAINING: 
 
¶1. (SBU) On December 12, AIT, CTP, and BOFT agreed to the following 
schedule related to the ICP software development project: 
 
ICP completion - end of December 08; 
ICP pilot test with Taiwan companies/users - second week of January 
09; 
Train-the-trainer - March 11 - 13, 2009; 
Kick-off Conference - March 31, 2009; 
Deployment 1 (Hsinchu) - April 16 - 17, 2009; 
Deployment 2 (Taichung) - May 2009; 
Deployment 3 (Tainan) - June 2009; and 
Deployment 4 (Kaoshiung) - July 2009. 
 
ECC program manager(s) have been getting regular updates on the 
above schedule. 
 
¶2. (SBU) From February 24 - 27, WMD Enforcement Training, 
implemented by the Immigration and Customs Enforcement, is scheduled 
to take place in Taipei. 
 
¶3. (SBU) From April 6 - 10, 2009, Hazardous Materials Response 
Training, implemented by Customs and Border Protection, is 
notionally scheduled to take place in Taipei. 
 
¶4. (SBU) From April 27 - May 1, 2009, Radiological Detection 
Training, implemented by the Department of Energy, is scheduled to 
take place in the State of Washington. 
 
¶V. DECEMBER/JANUARY MEETINGS: 
 
The Advisor will be in Washington for consultations and annual leave 
beginning December 22.  She will return to AIT at the end of January 
2009, after the Lunar New Year. 
 
VI. RED FLAG ISSUES: 
 
None. 
 
POC for this report is Mi-Yong Kim, EXBS Advisor.  Telephone +886 2 
2162 2347. 
 
YOUNG