erywhere. For example, controlled technology, such as 386 memory chips, was available in street-corner shops in Hong Kong.
The delegation was given the opportunity to tour research and development centers and production facilities throughout the region. It was abundantly clear that dynamic economic growth is taking place. The firms, and their employees, are driven by a sense of purpose to produce high-quality, technically sophisticated goods.
At the same time, the delegation was frequently told that the goods they saw being produced were "not that sophisticated" and that there was little need for any type of local export control. In Korea and Taiwan the delegation was given extensive briefings about the evolving domestic export control regime, while simultaneously being told that there was little to control. Although the plans for domestic control regimes were thoroughly developed on paper, there was often little demonstrable evidence that steps were being taken to implement those plans.
The issue of diversion was raised frequently. In each country, it was asserted that every other country in Asia was responsible for vast amounts of diversions to the Soviet bloc and China, but that the host country maintained strict adherence to "CoCom-like" rules.
The delegation took note of the efforts being made by Japan and Hong Kong to stem the illegal flow of controlled goods from within their borders. It was obvious that, in the wake of the 1983–1984 Toshiba-Kongsberg incident,* the Japanese government had taken a series of concrete steps to upgrade Japan's export control efforts. Similarly, the delegation was impressed with the efforts in Hong Kong to execute a vigorous plan of export control.
The delegation met with members of the Industrial Development Bureau (IDB) of the Ministry of Economic Affairs. Bureau staff highlighted development's in the three industries (computers, advanced materials, and machine tools) the Ministry of Economic Affairs has identified as most likely to lead Taiwan's export efforts. That discussion was preceded by an analysis of the current state of the Taiwanese economy. Key points included the following:
Land costs are rising rapidly.
There is a small labor pool and almost no unemployment.