VZCZCXYZ0000
PP RUEHWEB

DE RUEHIN #0831/01 1901001
ZNR UUUUU ZZH
P 091001Z JUL 09
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC PRIORITY 1924
RHMFIUU/USCBP WASHINGTON DC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

UNCLAS AIT TAIPEI 000831 
 
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 - JUNE 2009 
 
¶I.  BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS: 
 
(U) During the week of June 22, the Advisor represented EXBS at the 
UNSCR 1540 Southeast Asia Regional Workshop.  The Workshop provided 
a forum for discussion on ways and means to enhance national 
capacity in export and border controls on a regional basis. 
Representatives from the governments of Afghanistan, Bangladesh, 
India, Maldives, Nepal, Pakistan, and Sri Lanka participated in the 
program.  1540 Experts from Italy and France, a 1540 Coordinator 
from State/ISN/CPI, and representatives from the International 
Atomic Energy Agency, the European Commission, Monterey Institute of 
International Studies, University of Georgia Center for 
International Trade and Security and EXBS were presenters. 
II. COMPLETED ACTIONS FOR THE REPORTING PERIOD 
¶A.  MEETINGS DURING THE REPORTING PERIOD: 
(SBU) 1.  On June 16, the Advisor met with Chen, Ching-Chih, 
Director of Export/Import Administration Division, Bureau of Foreign 
Trade (BOFT) of the Taiwan Ministry of Economic Affairs to discuss 
the following three topics: 
 
i. Technology Controls 
 
(SBU) Taiwan's Strategic High-Tech Commodity List (SHTC) includes 
technology as a category of items that is controlled, but the 
regulations refer only to commodities.  AIT and BOFT have been 
discussing this discrepancy for two years without resolution.  This 
requires a technical fix to the regulatory language - it does not 
change the scope of SHTC. 
 
ii. Internal Control Program 
 
(SBU) On July 13 - 14, AIT will hold the last of the currently 
funded ICP deployment workshops.  Taiwan-specific ICP development 
took close to one year and the use of a huge amount of resources 
from both U.S. and Taiwan sides.  BOFT has stated that it will 
continue ICP workshops once the U.S.-supported workshops conclude 
and AIT wants to ensure proper resources are allocated to continue 
the program. 
 
iii. Non-governmental organization 
 
(SBU) Taiwan is conducting an initial study on establishing a 
non-governmental organization much like the Center for Information 
on Security Trade Controls (CISTEC) of Japan and the Korea Strategic 
Trade Institute (KOSTI) to support its work on export controls. 
Similar to CISTEC and KOSTI, the Taiwan NGO could be used to 
organize interagency meetings, conduct industry outreach, continue 
internal control program workshops, and research substantive export 
control topics to provide policy guidance to Taiwan officials.  The 
NGO could also be a non-controversial vehicle through which Taiwan 
could participate in international nonproliferation gatherings. 
 
(SBU) During the meeting, the Advisor recommended that BOFT host a 
roundtable discussion on the above topics in order to get different 
perspectives on the issues and support for its export control work. 
The Advisor recommended that the roundtable include Taiwan 
authorities and members of the non-governmental sector involved in 
export controls. 
 
(SBU) In a meeting with the Director General Huang Chih-Peng 
(Franco) of BOFT on June 30, the Econ Chief raised the same points 
and again urged BOFT to gather internal and external stakeholders 
for an open discussion on the topics.  DG Huang agreed to hold a 
roundtable.  (Note: On July 7, the Advisor met with the outgoing 
head of the Export Control Task Force to begin planning for the 
roundtable currently slated for late August.) 
 
(SBU)  2. On June 16, the Advisor met with officials of the Ministry 
of Justice Investigation Bureau (MJIB) to get an update on export 
control enforcement actions.  MJIB officials stated that the lead 
investigator on export control cases transferred to another office 
and the new section head has not yet arrived.  They stated there are 
no current export control investigations.  They further stated that 
since the beginning of 2009, MJIB resources have been diverted to 
investigating public corruption cases and to providing security for 
the Kaohsiung World Games in mid-July.  Their hope is that when the 
new section head comes on board, export control investigations would 
again be a focus. 
 
(SBU) During the conversation, MJIB officials said it is difficult 
to get satisfaction from working on export control cases because 
industry does not take export control laws seriously, especially 
during this economic downturn, and because prosecutors are not 
willing to take the cases.  Also, the more MJIB investigates 
companies, the more creative they become in circumventing the law, 
such as using China, Malaysia, and Cambodia as transit routes. 
Another avenue through which companies circumvent the law is to 
close the company when it is under investigation and establish a new 
one.    (Note:  Taiwan export control regulations do not have a 
related-party provision similar to the Export Administration 
Regulations.) 
 
(SBU) From an investigations perspective, the most difficult part is 
gathering evidence; i.e. a paper trail on transit and transshipment 
of controlled commodities through third countries.  Due to its 
political status, Taiwan is not in a position to request 
investigative information or assistance from other governments. 
 
(SBU) Currently, export control violations are not felonies.  (Note: 
A bill to increase the criminal penalties, thereby classifying them 
as felonies, has been languishing in the Legislative Yuan for 
several years.)  Although investigators work with prosecutors, 
prosecutors have their own priorities.  More often than not, export 
control violations are not priority cases for prosecutors. 
 
(SBU) The Advisor let MJIB officials know that EXBS is working on a 
prosecutor training program which she hopes to implement before the 
end of CY 2009.  The officials said such a program would aid the 
prosecutors in understanding the importance of export control cases. 
 
 
¶B. BLUE LANTERN: 
 
None. 
 
III. TRAINING CONDUCTED DURING REPORTING PERIOD: 
 
(U) None. 
 
IV. UPCOMING TRAINING: 
 
¶1. (U) An ICP Deployment Workshop is scheduled to take place in 
Taipei on July 13-14. 
 
¶2. (U) A Commodity Identification Training program, implemented by 
the Department of Energy, is scheduled for August 12-14 in Taipei. 
 
 
¶3. (U) An ICP Administrator Training is scheduled for August 27-28 
in Taipei. 
 
¶V. RED FLAG ISSUES: 
 
None. 
 
POC for this report is Mi-Yong Kim, EXBS Advisor.  Telephone +886 2 
2162 2347. 
 
WANG