VZCZCXYZ0006
RR RUEHWEB

DE RUEHIN #0156 0400931
ZNR UUUUU ZZH
R 090931Z FEB 10
FM AIT TAIPEI
TO SECSTATE WASHDC 3310

UNCLAS AIT TAIPEI 000156 
 
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 END-USE CHECK ON 
APPLICATION 050208291 
 
REF: STATE 04982 
 
¶1. (U) Summary: Per reftel request, AIT/T contacted the consignee 
and visited the end-user, Seng-Feng Corp.  Collected information 
shows the bona fides of the end user.  End summary. 
 
Foreign Consignees 
------------------ 
¶2. (U) Mr. Albert Huang of Step Electronics told us that he received 
the order for 10 rotary joints (reftel) from another Taiwan company, 
Borntek, LTD.  Step Electronics serves as a sole agent for Sage 
Laboratories in Taiwan. 
 
¶3. (U) Ms. Anne Lee from Borntek explained to AIT/T that the company 
received the order from the end user, Seng Feng Corporation.  As 
Step Electronics is the only agent in Taiwan selling such parts from 
Sage Laboratories, Borntek placed the order with Step Electronics. 
Ms. Lee shared the copy of the purchase order, dated 21 December 
2009, which showed an order of 10 rotary joints from Borntek to Step 
Electronics. 
 
¶4. (U) Both Step Electronics and Borntek stated they would not be 
involved in the receipt or processing of the subject parts.  Subject 
parts will go directly to the end user, Seng Feng Corporation. 
 
¶5. (U) Step Electronics has been in the business of importing and 
selling defense articles for 20 years, and Mr. Huang confirmed that 
he is familiar with the restrictions of the U.S.-origin defense 
articles. 
 
Seng Feng Corporation 
--------------------- 
¶6. (U) Econoff visited Mr. Eric Lin of Seng Feng Corporation on 26 
January 2010.  As of early January 2010, the company had moved from 
its original office at No. 391, Chung Shan Rd., Hsinchuu City to a 
new building, located at No. 169-27, Neu Pu S. Rd., Hsinchu City. 
Because of the recent move, there is still no landline phone 
connected.   Mr. Lin's cellphone number is 0933-118-103. 
 
¶7. (U) Seng Feng has been ordering USML articles for 2-3 years as 
part of its antennae design business.  The company does not have 
another office.  Before moving to its new facility, Seng Feng shared 
office space with three other companies, including Chin Yan, 
Skyline, and Kingtek.  Chin Yan produces unmanned aerial vehicles 
(UAV); Skyline specializes in flight control computer systems; and 
Kingtek bids for business contracts and research projects from 
unspecified government entities.  Seng Feng mainly works with 
Kingtek by providing design services for instruments used in 
receiving data from unmanned aerial vehicles (UAVs). 
 
¶8. (U) Regarding parts mentioned in reftel, Seng Feng will use them 
in four identical instruments designed to receive data from UAVs 
employed to fly into typhoons.  This collection of data will be used 
to analyze typhoon movement.  The overall job is a two-year typhoon 
analysis project contracted by the Ministry of Economic Affairs. 
According to Mr. Lin, once Seng Feng finishes making the 
instruments, they could work with many other entities, including the 
Central Weather Bureau and weather research college programs working 
on similar projects.  When the instruments are finished, he, another 
engineer from his company, or a colleague from project partner 
Kingtek will transport the equipment to the worksite and will remain 
onsite to operate it.  The four instruments will remain in the 
custody of Seng Feng or Kingtek employees and will be stored at 
either Seng Feng or Kingtek's facilities when not in use. 
 
¶9. (U) Mr. Lin provided AIT/T a copy of the purchase order to 
Borntek, dated 19 December 2009.  The quantity of the rotary joints 
matched the number mentioned in reftel. 
 
¶10. (U) Seng Feng has also designed notebook antennae for Hewlett 
Packard, Dell, Asus, and Acer in the last two years.   However, due 
to very low profit, Seng Feng has stopped doing business with these 
computer companies. 
 
¶11. (U) Mr. Lin understands the U.S.-origin defense article 
restrictions.  Seng Feng's new building is equipped with electronic 
locks on the main entrance, and alarm sensors in the storage room. 
Mr. Lin is one of four workers at the facility, all of whom have 
access to the storage and assembly areas of the building. 
 
STANTON