Generating a taxonomy
If you can get your terms into CSV format you can use the excellent Taxonomy CSV import/export module:


  This module allows you to import or export taxonomy from or to a CSV (comma-separated values) file or with a copy-and-paste text.


It has support for importing hierarchical trees like yours, and even supports drush.

It also has good documentation to get you started.

EDIT

You could also try the Taxonomy import/export via XML module which does the same thing but for XML (if you find it easier to get your data into that format). It's only in dev release at the moment but its worth a try.