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SALE OF SUBMARINES TO TAIWAN NO LONGER ON U.S. PRIORITY LIST
China Post | 6/26/03

Posted on 06/30/2003 12:21:32 PM PDT by pabianice

Over two years after U.S. President George W. Bush agreed to sell Taiwan eight diesel-powered submarines, the project appeared to be at a standstill on Tuesday.

Briefing reporters after meeting with U.S. Department of Defense officials, Legislative Yuan Speaker Wang Jin-pyng, noted that the U.S. government's priorities for providing Taiwan with a sufficient defensive capability have changed, and the issue of the submarine purchase was not discussed. People First Party (PFP) legislator Lin Yu-fang, however, confirmed that the sale of submarines to Taiwan is no longer seen as a priority by the U.S. administration.

While one of the greatest perceived threats to the island's security may be its inability to prevent a blockade by mainland China, Taiwan may not get the submarines in time. Wang stressed that, according to U.S. estimates, the military balance will tip away from Taiwan and in favor of mainland China in between two to five years. So, with mainland China rapidly modernizing its military, and increasing the deployment of short-range ballistic missiles along the coast of Fujian province, the U.S. is prioritizing the sale of Patriot PAC-3 anti-missile systems, older P3-B Orion anti-submarine aircraft and so-called "C4ISR" capabilities and infrastructure of combat telecommunications, computers, intelligence, surveillance and reconnaissance, including long-range early warning radar, according to a source close to the issue.

The U.S. could supply the above defensive weapons systems to Taiwan almost immediately, but Wang noted that Taiwan might have to wait until 2014 before taking delivery of a single submarine, perhaps too long to be of any use.

The crux of the problem lies in the fact that although the Bush administration pledged in April 2001 to provide Taiwan with conventional submarines, the U.S. has not built such vessels since the '50s. Several countries that still have the capacity to build conventional submarines have expressed an interest in fulfilling the order on behalf of the U.S., including Germany, Spain, the Netherlands and Israel. Alternatively, U.S. defense contractors, including Northrop Grumman and General Dynamics, could build the submarines, although the likely costs of retooling a U.S. shipyard are thought to be prohibitive. But, if the PFP's Lin gets his way, six of the eight submarines will be built in Taiwan, though he admits that "without U.S. government support, Taiwan will never be able to obtain submarines."

Despite the acquisition of Germany's largest shipbuilding company HDW in the spring of 2002 by a U.S. investment firm, One Equity Partners (OEP), the contract now looks unlikely to go to Germany, according to Lin, as the country has a law that prohibits German companies from selling weapons to any country in a region where there is potential for conflict, plus OEP sold its 75 percent share in the company in March of this year, allegedly because of Germany's restrictive export policies.

Holland is thought unlikely to want to risk angering mainland China, and the involvement of Israel would also be complicated as, according to previous reports, that country would be opposed to becoming directly involved in a transaction between Washington and Taipei. That leaves Spain, but according to the source, although Spain is believed to remain interested in the project, the real problem is that Taiwan's Legislature has yet to approve funding for the multi-billion dollar project. The bottom line for any country that agrees to supply Taiwan with weaponry is that they need to assess the consequences of inevitably damaging relations with mainland China.

Taipei and Washington have not yet reached a workable "consensus" on the submarine issue, according to Taiwan Solidarity Union (TSU) legislator Ho Min-hao, and given what are increasingly looking like insurmountable challenges presented by the deal, he believes both sides need to reassess Taiwan's defense alternatives.

With the cost of financing the submarine purchase being a major stumbling block for Taiwan's legislators, Lin spoke of his discussion with the chairman of the U.S.-Taiwan Business Council and former U.S. Secretary of Defense William Cohen, in which the idea that a third party might partially finance the deal was raised.

Over the course of two hectic days in the U.S. capital, Wang has also met with members of Congress, officials from the National Security Council (NSC) and think tank scholars. On Tuesday in a meeting on Capitol Hill with members of the Congressional Taiwan Caucus, Wang also urged members of Congress to give further support to the idea of establishing a U.S.-Taiwan Free Trade Agreement (FTA).

Although the referendum issue, so hotly debated in recent days, took a back seat to defense issues in Washington, the issue was raised in a meeting that took place in New York on Monday between American Institute in Taiwan (AIT) chairman of the board and managing director Therese Shaheen and Minister of Foreign Affairs Eugene Chien. The AIT chief is said to have quizzed Chien on the government's stand on the issue of referendums, including whether the President Chen Shui-bian administration has fully considered the likely reaction from mainland China. Further details of Chien and Shaheen's discussion were not immediately available.


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; Government
KEYWORDS:
WTH? First news that Bush is thinking of appointing quota-monger O'Connor as next chief justice of SCOTUS. Now this. Has Daschle put something in the water in DC?
1 posted on 06/30/2003 12:21:32 PM PDT by pabianice
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To: pabianice
We should be giving Taiwan full recognition and giving them whatever conventional arms they are willing to pay for. Allies should be allies, not the crazy aunt in the attack we don't talk about.
2 posted on 06/30/2003 12:28:09 PM PDT by Mr. Silverback (My first job was in an orange juice factory, but they canned me because I couldn't concentrate.)
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To: pabianice
I was wondering what concessions we made to China for the cooperative efforts on floaing the Yuan in a non-disruptive manner. Sounds like we are handing them Taiwan in return for them helping with our imperial dollar.

http://www.obsceneprophets.com/Articles/OPW20030630.aspx

3 posted on 06/30/2003 12:28:09 PM PDT by BigFisherman
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To: Mr. Silverback
How did I write "attack" when I meant "attic"? Must be an anti-communist Freudian slip! :-)
4 posted on 06/30/2003 12:29:54 PM PDT by Mr. Silverback (My first job was in an orange juice factory, but they canned me because I couldn't concentrate.)
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To: pabianice
Hasn't the USA decommissioned a BUNCH of SSN-688 Los Angeles class attack submarines recently? Refurbish those and send them over!
5 posted on 06/30/2003 12:39:33 PM PDT by xrp
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To: pabianice
I guess Bush has made better friends among the totalitarian Chinese than the freedom loving Taiwanese. Bush has been the best thing that ever happened to socialists since LBJ. He is FDR-LBJ-Nixon-Ford-Carter combined. I will be working hard for his defeat in 2004, and so should you.
6 posted on 06/30/2003 12:49:10 PM PDT by Satadru
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To: pabianice; generalissimoduane
Agreed. WTF?

Please relay inquiry to Mr. H. and Frank G.

7 posted on 06/30/2003 12:53:14 PM PDT by BenLurkin (Socialism is slavery.)
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To: pabianice
Despite the acquisition of Germany's largest shipbuilding company HDW in the spring of 2002 by a U.S. investment firm, One Equity Partners (OEP), the contract now looks unlikely to go to Germany, according to Lin, as the country has a law that prohibits German companies from selling weapons to any country in a region where there is potential for conflict, plus OEP sold its 75 percent share in the company in March of this year, allegedly because of Germany's restrictive export policies.

It didn't stop them selling stuff to Saddam.

8 posted on 06/30/2003 1:13:50 PM PDT by demlosers
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To: pabianice
WTH? First news that Bush is thinking of appointing quota-monger O'Connor as next chief justice of SCOTUS. Now this. Has Daschle put something in the water in DC?

And the coming Medicare prescription-plan fiasco as well.

The bad news for liberty just keeps coming in spades.

9 posted on 06/30/2003 1:17:18 PM PDT by DaveCooper
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To: pabianice
Taiwan is not a 3rd world country. Why don't they build their own damn submarines? It's not like its rocket science, and the machines for building submarine components are commercially available. Heck, the Russians bought machinery to make silent screws from the Japanese back in the early nineties. I'm sure the Taiwanese can buy the machine tools and the people who know how to run them if they want to.
10 posted on 06/30/2003 2:08:56 PM PDT by dark_lord (The Statue of Liberty now holds a baseball bat and she's yelling 'You want a piece of me?')
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To: pabianice
A lot's changed in the world since that agreement.
11 posted on 06/30/2003 2:20:11 PM PDT by Prodigal Son
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To: Prodigal Son
Consider the source.

Strategypage.com says the big hang up is the Germans who's sub design the Taiwanese and American contractors have agreed upon.

The Germans cannot make up their mind and The US Navy does not want conventional subs to be built in US naval yards for fear that the congress will force it to build unwanted conventional subs.
12 posted on 06/30/2003 2:40:33 PM PDT by Dark Wing
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To: Dark Wing
This is Strategypage.com's latest on the Taiwanese sub sale:

June 14, 2003: China is using all it's diplomatic resources to try and prevent the US from obtaining eight diesel-electric subs for Taiwan. America wants to get the latest type 214 boats from German firm HDW. But China is threatening economic retaliation if Germany allows HDW to build the boats. Spain and Israel are more willing to build the boats, but do not have the state of the art technology HDW possesses. China is also trying to use North Korea as a tool to get America to reduce the number of modern weapons being provided to Taiwan.
13 posted on 06/30/2003 2:46:52 PM PDT by Dark Wing
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To: pabianice
bttt
14 posted on 07/08/2003 1:10:55 AM PDT by Tailgunner Joe
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