VZCZCXYZ0000
RR RUEHWEB

DE RUEHIN #1360 3200811
ZNR UUUUU ZZH
R 160811Z NOV 09
FM AIT TAIPEI
TO SECSTATE WASHDC 2718

UNCLAS AIT TAIPEI 001360 
 
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 BROKER CHECK NO. K-1198 
 
REF: STATE 99476 
 
¶1. (SBU) Summary:  Per reftel request, AIT/T Econ officer and FN 
visited U&U Engineering International Inc., and interviewed Mr. 
Cheng Tung, who serves as company Chairman and President.  End 
summary. 
 
¶2. (SBU) U&U Engineering International Inc. was established in 1992 
and now employs approximately 130 employees in six locations in 
Taiwan.  The company's headquarters is located in Taipei at the 
address provided in reftel.  Its five branch offices around the 
island include one factory in Lung-Tan, the Lung-Yuan Service Center 
inside the Chung Shan Institute of Science and Technology (CSIST), 
one maintenance office in Hualien, one maintenance office in 
Kaohsiung, and one maintenance office in Taipei handling 
green-energy projects. 
 
3 (SBU) According to the Bureau of Foreign Trade (BOFT), Ministry of 
Economic Affairs (MOEA), U&U Engineering International, Inc. is 
registered as a trading company.  The company's registration 
information, including the company's address and contact numbers, is 
identical to the reference stated in paragraph three of reftel.  The 
company's website is www.uuei.com.tw 
 
¶4. (SBU) Part of U&U's business focuses on providing spare-parts and 
maintenance support to Taiwan's military agencies.  After contracts 
are signed between the U.S. company and Taiwan, U&U is subcontracted 
by the U.S. entity to do the maintenance for Taiwan military units 
and receives the necessary parts and technology from the U.S. to 
fulfill the contract.  U&U is a representative agent for both 
U.S.-based ITT and BAE systems.  Therefore, when ITT or BAE sign a 
contract with a Taiwan entity, in accordance with the offset rules, 
U&U provides technical support to Taiwan clients.  U&U also sells 
military parts to Taiwan firms. 
 
¶5. (SBU) Aside from being a military-parts and service broker, U&U 
also manufactures commercial products, including infrared cameras 
and traffic monitor systems/sensors.  U&U does not need to import 
components from the U.S. to produce these commercial products. 
Because it has been difficult for U&U to access the market in Taiwan 
for its indigenously-produced commercial products, the company has 
sought to introduce its products in China, for which it has gained a 
small number of contracts that will start next year. 
 
¶6. (SBU) Because of the high value of the company's parts and 
equipment, U&U employs monitoring systems at all storage areas 
within its facilities.  Technicians in each division can only access 
their division's storage areas, and each division maintains 
independent operations and financial management functions. 
 
¶7. (SBU) Mr. Cheng stated he understood the USML restrictions, as he 
realizes that all U&U's business sensitive and advanced.  As such, 
he requires his staff to maintain records of all business 
transactions and all commercial activities. 
 
¶8.  (SBU) AIT has no derogatory information in its files concerning 
U&U Engineering International, Inc.  AIT learned through our Taiwan 
law enforcement sources, however, that Mr. Cheng was accused of 
committing the offence of "Intimidation" and charged with 
"Corruption" in 2005 but was not indicted; in addition, Mr. Cheng 
was charged with "Interference in the Use of Computers" in 2009 but 
also was not indicted. 
 
¶9.  (SBU) Comment:  Accusations of fraud, forgery, and other 
business-related crimes are very common in Taiwan, and because this 
broker was not indicted of any crimes, we believe this information 
does not call into question the bona fides of the broker.  End 
Comment. 
 
 
 
Stanton