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Viewing cable 09AITTAIPEI1451, TAIWAN: RESULTS OF BLUE LANTERN PRE-LICENSE CHECK

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Reference ID Created Released Classification Origin
09AITTAIPEI1451 2009-12-09 09:32 2011-08-23 00:00 UNCLASSIFIED American Institute Taiwan, Taipei
VZCZCXYZ0013
RR RUEHWEB

DE RUEHIN #1451 3430932
ZNR UUUUU ZZH
R 090932Z DEC 09
FM AIT TAIPEI
TO SECSTATE WASHDC 2901
UNCLAS AIT TAIPEI 001451 
 
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 CHECK 
050198982 
 
REF: A)STATE 00119190, B)BANDAR SER 282 
 
1. (U) Summary: Per reftel A request, AIT/Taipei Economic officer 
visited the subject consignee, Long Sion Corp., and talked to the 
chairperson Mr. Charlie Chen.  An on-site check of the company and 
the responses from Mr. Chen appear to confirm the bona fides of this 
consignee.   End summary. 
 
Long Sion 
--------- 
 
2. (U) On December 1, AIT Economic Section staff visited General 
Manager Charlie Chen (Chen Zhiqing) at his offices in Taoyuan City. 
Mr. Frank Liu (Liu Jikang), Manager of Founders & Company, Ltd, 
attended the meeting at Mr. Chen's invitation. 
 
3. (U) Liu said his company is the regional representative for 
General Dynamics in some Asian areas.  According to Mr. Liu, after 
Thailand-based Itthiporn Import Company signed a contract for reftel 
items with the end user, the Armed Forces Security Center in 
Thailand, Itthiporn reached out to Mr. Denny C.C. Yang, Managing 
Director of the Jackson Electronics (Thailand) Company, Ltd. for 
help in ordering the receiver. Yang then contacted Liu for the 
subject item due to Liu's experience in ordering U.S.-origin items. 
Liu told Econoff that he then asked Long Sion's Chen to serve as the 
trading company for the deal. 
 
4. (U) According to the Taoyuan County registration certificate 
provided by Chen, Long Sion was established in February 2002.  Chen 
indicated to us that Long Sion's main business is producing 
electronic products and components, especially for LED displays and 
tubes, for clients located mainly in Taiwan, Japan, and Europe. 
This business is conducted entirely through sub-contractors in 
Taiwan and the PRC. 
 
5. (U) According to Chen, he has established "paper companies" in 
both Hong Kong and Brunei for tax purposes.  Long Sion does not 
physically handle any goods, and will not receive reftel equipment, 
which will be shipped directly to Thailand from the United States. 
Mr. Chen said that he understands USML restrictions. 
 
6. (U) Long Sion Corp.'s address is No. 224, Tung De 5 St., Taoyuan 
City, Taiwan. The phone number is 886-3-216-0030, and the fax number 
is 886-3-215-0420.  Mr. Chen's cell phone numbers are 0988-387-863 
and 0932-812-960. 
 
Founders & Co., Ltd 
------------------- 
 
7. (U) Liu--who described his role in this deal as "technical 
advisor"--said he has been dealing in military-related sensitive 
commodities for more than 20 years.  Liu said almost all of his 
business is with units of the Taiwan military, and that 99 percent 
of his orders are for U.S.-origin products.  Liu said he also 
imports guns for Taiwan police offices. 
 
8. (U) Founders & Co.'s address is 7F-5, No. 1, Lane 106, Sec. 3, 
Ba-de Rd., Taipei City, Taiwan. The telephone number is 
886-2-2579-3320, and the fax number is 886-2-2579-3321.  Mr. Liu's 
cell phone number is 0932-040-287. 
 
9. (U) Mr. Denny Yang, Managing Director of the Jackson Electronics 
(Thailand) Co., can be reached at telephone number 662-398-6521, or 
by fax at 662-398-6527.  His cell phone number is 081-831-7592. 
The company is located at 947/36 Moo 12 Bangna-Trad Road., Km.3.2, 
Bangna, Bangkok, Thailand. 
 
Comment 
------- 
 
10. (U) From our visit with Messrs. Chen and Liu, we surmise that 
because the trading company in Thailand, Itthiporn, has no 
experience acquiring reftel equipment, the company asked for help 
from a Thailand-based Taiwan trader, Denny Yang, who then contacted 
Liu to have the equipment ordered.  Liu, who is unable to finance 
the deal, then involved his friend Chen.  Since the reftel item will 
not transit Taiwan, we recommend PM/DTCC approve reftel license 
application only after assessing the bona fides of the Thailand 
consignee and end-user. End comment. 
 
STANTON