VZCZCXYZ0003
RR RUEHWEB

DE RUEHIN #0999/01 2300559
ZNR UUUUU ZZH
R 180559Z AUG 09
FM AIT TAIPEI
TO SECSTATE WASHDC 2135

UNCLAS AIT TAIPEI 000999 
 
SIPDIS 
 
STATE FOR EAP/TC, PM/DTCC AND ISN/MTR 
 
PM/DTCC FOR BLUE LANTERN COORDINATOR RACHAEL-THERESE S. JOUBERT-LIN 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC TW
SUBJECT: TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE 050180288 
 
REF: STATE 76386 
 
¶1. (SBU) SUMMARY. Per reftel request, AIT/T contacted the end user, 
the Chung Shan Institute of Science and Technology (CSIST), and 
visited consignees May Geng Duo Development Co., Ltd. and Channel 
Link Inc. 
 
CSIST 
----- 
¶2. (SBU) Mr. Liao Wei-yao from CSIST Procurement Office confirmed 
the order of three X-band 80W power amplifiers.   The contract to 
provide amplifiers went to May Geng Duo. 
 
¶3. (SBU) May Geng Duo began bidding on CSIST contracts about one 
year ago and Channel Link began about 15 years ago. 
 
¶4. (SBU) The items will be used for the telemetry system on the 
ground-launched Tien-Chien II missile launch system. 
 
May Geng Duo 
------------ 
¶5. (SBU) May Geng Duo is an importer of apparels and 
electronic-product components.  The company was established about 3 
years ago.  There are six owners who are not related to each other. 
 
 
¶6. (SBU) Mr. George Chang serves as a Sales Manager for Microwave/RF 
Components Department in May Geng Duo.  About three years ago, 
owners from May Geng Duo approached Mr. Chang requesting his 
assistance in establishing of RF business because of his expertise 
in the areas. (Note: Mr. Chang has been the General Manager as well 
as one of the owners of Channel Link since 1991. End note.) 
 
¶7. (SBU) As Channel Link is in the process of shedding its 
government contracts business, May Geng Duo is in the process of 
bidding on and winning contracts with CSIST. 
 
¶8. (SBU) For the apparel business, May Geng Duo receives orders and 
then subcontracts to local manufacturers.  For electronic-product 
components business, CSIST is the only customer. 
 
¶9. (SBU) At present, the company has three contracts with CSIST, but 
only this one requires an export license. 
 
¶10. (SBU) Although May Geng Duo's office registration address is 
11F-6, No. 23, Chang An E. Rd., Sec. 1, Taipei City, it has another 
office located at 1F, No. 169, Baoyi Rd., Wunshan District, Taipei 
City.  Mr. Chang explained that, because the office located on Baoyi 
Rd. is much closer to CSIST, he put down that address as the 
delivery address.  Upon receiving the goods in Taiwan, FedEx will 
contact Mr. Chang.  He then will go to the office on Baoyi Rd. to 
receive the goods.  Mr. Chang will inspect the goods and then 
deliver them to CSIST the same day or the day after.   Mr. Chang 
stated that the Baoyi Rd. office is not staffed; that it is just an 
address. 
 
¶11. (SBU) AIT visited May Geng Duo's office on Baoyi Rd.  At the 
time of the visit, the office was staffed with an accountant and a 
secretary.  The office is at street level with a steel gate which is 
kept closed.  Access to the office is through a back alley.  The 
office has a lucked storage room where the goods will be kept 
overnight, if necessary.  When asked why he stated that the office 
was just an address when there is staff located there, Mr. Chang 
stated that he was confused about the question.  What he meant was 
there was no person present at the time of AIT's first visit to May 
Geng Duo on Chang An Road.  In fact, the Baoyi Rd. office is now 
staffed during business hours because its RF business is picking up. 
 He said it is unclear whether May Geng Duo will continue to operate 
the office in the future. 
 
Channel Link 
------------ 
¶12. (SBU) Established in 1991, Channel Link is an importer for RF 
and microwave products.  There are four owners and Mr. Chang is one 
of them. 
 
¶13. (SBU) The company serves as an agent for many U.S. 
manufacturers, including the American Technology Ceramic, Microwave 
Developing Laboratory, and Dynawave. 
 
¶14. (SBU) About 80 percent of its business is generated from 
government contracts, and 20 percent from commercial ones. 
 
Relations between May Geng Duo and Channel Link 
--------------------------------------------- -- 
¶15. (SBU) There is no legal relationship between these two 
companies.  Because May Geng Duo has no business connections in the 
US, Mr. Chang placed the order from Channel Link to his acquaint US 
suppliers to May Geng Duo.  May Geng Kuo was listed as the receiver 
and payer for the goods. In effect, Channel Link acted as the 
importer for May Geng Duo.  This is an informal arrangement between 
Channel Link and May Geng Duo; no written agreement exists between 
the two companies. 
 
¶16. (SBU) Mr. Chang understands restrictions of no re-export and 
retransfer of the USML items. 
 
WANG