VZCZCXYZ0003
PP RUEHWEB

DE RUEHIN #0975/01 2250702
ZNR UUUUU ZZH
P 130702Z AUG 09
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC PRIORITY 2106
RHMFIUU/USCBP WASHINGTON DC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

UNCLAS AIT TAIPEI 000975

SENSITIVE
SIPDIS

STATE FOR ISN/ECC - JFRIEDMAN, ACHURCH, NJOHANSON, AND ROWEN
STATE FOR EAP/TC - NTALBOT, DPARKER,TMANN
STATE FOR ISN/MTR - PDURHAM, SBOYER, JMAYES, AND RPALMIERO
DHS/CBP/INA FOR RGONZALEZ
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 - AUGUST 2009

REF: Taipei 405

¶I. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS:

None.

II. COMPLETED ACTIONS FOR THE REPORTING PERIOD
¶A. MEETINGS DURING THE REPORTING PERIOD:

¶1. (SBU) On July 21, the Advisor and the EconChief met with Lin,
Sheng-Chung, Vice Minister of the Taiwan Ministry of Economic
Affairs (MOEA). The meeting was to provide first-hand knowledge of
EXBS work in Taiwan and to elevate export control discussions above
the working level.

(SBU) Vice Minister Lin thanked EXBS for the training programs
conducted since 2007. He stated that he understands that the
training portion of EXBS will end in a couple of years. He also
stated that it is unclear, at this point, how export control work
will be managed by MOEA once the ministerial reorganization takes
affect after 2010. The Advisor stated that, since MOEA will be
reorganized next year, this would be an opportune time to elevate
the work of export controls within MOEA so that it is commensurate
with countries that are at similar level of development as Taiwan;
that, currently, Taiwan lags far behind places likes Hong Kong,
Singapore, and South Korea, in the way export controls is managed.
He responded that he would look into the issue. However, a meeting
with the National Security Council would be helpful if the goal is
to elevate the work within MOEA.

(SBU) VM Lin also expressed certain views with regard to the
on-going US-Taiwan bilateral cooperation. These views will be sent
via email to appropriate offices in DC.

¶2. (SBU) On July 24, the Advisor met with Professor Liu, Fu-Kuo of
Institute of International Relations, National Chengchi University,
to get a read-out on the WMD Study Group meeting of the Council on
Security Cooperation in the Asia Pacific (CSCAP) that took place in
Beijing on June 28 - 30. He said Taiwan and China are finalizing
their cooperation on translating a WMD manual into Chinese so that
Taiwan and China can use one manual. (Note: Taiwan uses
traditional Chinese script and China uses simplified Chinese
script.) He said even though Taiwan has participated since the
founding of CSCAP, it has done so as a guest of USCSCAP. He
expressed his appreciation for the work of USCSCAP to make Taiwan's
participation in this NGO group possible. He hopes that Taiwan can
be a full CSCAP member in the future. See reftel A.

¶3. (SBU) On July 27, the Advisor met with the Chang, Chih-Yu
(James), Director of the Office of Homeland Security, Executive
Yuan. Director Chang transferred in March from the Department of
Information and Liaison of the Mainland Affairs Council. While Mr.
Chang does not have an export control background, he has consulted
BOFT and has visited Container Security Initiative and Megaports
operations in Kaohsiung to get a better understanding of US-Taiwan
cooperation in the nonproliferation area. He stated that Taiwan's
biggest concern is industry compliance; Taiwan companies endlessly
complain about compliance with export controls and how any measure
to strengthen it will affect their bottom line. The Advisor
responded that industry complaint about export controls is not
unique to Taiwan; that all companies, everywhere complain about
export controls. Regardless, export controls is an international
security issue that all of us must be vigilant in strengthening so
that no place provides an avenue for proliferation of WMD. She also
reiterated that officials should explain to industry what the rules
are, and how companies can comply with the rules, but in the end,
officials are responsible for national security and foreign policy,
not the private sector.

(SBU) Director Chang stated that export controls is not Taiwan's top
priority. Additionally, few high-level officials truly understand
what export controls is and how the management of it affects
Taiwan's international standing. Currently, Taiwan simply follows
the footsteps of the US. Furthermore, the main concern for Taiwan
is controlling commodities exported to China. (Note: Taiwan has
stricter rules on exports of certain commodities to China than the
US.) For goods shipped to other countries, such as Iran or North
Korea, export controls is less of a concern for Taiwan.

(SBU) Director Chang agreed with the advice and comments from the
Advisor regarding certain deficiencies in Taiwan's export control
system and ways to remedy them. He stated he would explore whether
his office can host regular interagency meetings on export controls
so that the issues such as elevating export control discussion to a
higher level; additional personnel commitment; interagency
coordination and license review; and increase in penalty for
violations, stay in the forefront of Taiwan authorities'
discussions. (Note: An interagency export control committee exists
within BOFT but that committee has not met for over a year. When
repeatedly asked why BOFT does not call an interagency committee
meeting, the response has been BOFT does not have the personnel to
work on it.)

(SBU) Director Chang agreed that export control issues need to be
elevated to a higher level and stated that he would bring up the
issue during his weekly meeting with Taiwan's Premier. He also
stated that he has regular contact with officials of Taiwan National
Security Council so he would use those opportunities to get
the
message across. (Note: AIT ADIR raised export control issues with
the National Security Council Secretary General Su Chi during a
meeting the week of August 10. He proposed assigning this portfolio
to a senior NSC official, raising the level of the office within
BOFT in charge of this portfolio, and creating an NGO to provide
information and research on non-proliferation issues to Taiwan
authorities. Secretary General Su Chi agreed that Taiwan needs to
increase priority and instructed his deputy to coordinate these
efforts.)

(SBU) Director Chang stated, initially, his office would see if a
task force can be formed to work on the following suggested areas:
(1) fix the technology controls discrepancy in export control
regulations; (2) pass legislation to increase penalty for
violations; (3) allocate additional resource, including creating an
NGO, for nonproliferation work; and (4) establish a policy-making
and coordinating body within Taiwan authorities for export controls.


(SBU) Director Chang and the Advisor agreed to meet regularly (once
every one or two months) to check on the progress of the task force.


¶B. BLUE LANTERN:

The Advisor conducted two (2) Blue Lantern checks. Results have
been directly reported to PM/DDTC.

III. TRAINING CONDUCTED DURING REPORTING PERIOD:

(U) The last of the currently funded ICP workshop took place in
Taipei on July 13-14.

IV. UPCOMING TRAINING:

¶1. (U) A Commodity Identification Training program, implemented by
the Department of Energy, is scheduled for August 12-14 in Taipei.


¶2. (U) An ICP Administrator Training is scheduled for August 27-28
in Taipei.

¶3. (SBU) Export control meetings scheduled to take place in
Washington, D.C. on September 10 - 11. The Advisor will accompany
Taiwan officials to the meetings.

¶V. RED FLAG ISSUES:

None.

POC for this report is Mi-Yong Kim, EXBS Advisor. Telephone +886 2
2162 2347.

WANG