Sun, Feb 24, 2008 - Page 1 News List

Defense chief quits over arms dispute

TAIWAN GOAL Vice Minister Michael Tsai took over after Lee Tien-yu resigned to take responsibility for the controversy over the founding of the arms dealing firm

By Shih Hsiu-chuan and Rich Chang  /  STAFF REPORTERS

Information provided by the Cabinet showed that NT$80 million of the NT$200 million initial funding has been collected -- NT$50 million from China Steel Machinery and NT$30 million from Chunghwa System.

But the target NT$90 million from the MND and NT$30 million from Yao Hua had yet to be injected.

The Cabinet has insisted that Taiwan Goal is a private company, as the MND holds only 45 percent of the company.

Asked whether Wu will stay on as president of Taiwan Goal, Chen Chin-jun said that would be Wu's decision.

President Chen, who was in Nantou County yesterday, did not comment on the matter. The KMT caucus applauded Lee's resignation.

"Lee offered his resignation and saved his reputation," KMT caucus whip Alex Fei (費鴻泰) said.

KMT Legislator Lin Yu-fang (林郁方) said Lee's resignation highlighted the fact that the firm was problematic and lacked legitimacy.

The caucus urged the government to disband the company immediately, while lashing out at the Cabinet's decision to appoint Tsai to take over Lee's position, accusing Tsai of being Chen Shui-bian's "preferred candidate."

DPP caucus whip Ker Chien-ming (柯建銘) told a separate press conference that although he respected Lee's decision to take responsibility for the controversy -- a move which Ker said showed Lee's dignity as a military person -- he nonetheless thought it was unnecessary for Lee to leave.

The KMT caucus' endless attacks on the establishment of the arms company, Lee and his ministry were the main reasons that led to Lee's resignation, Ker said, adding that the KMT caucus had faulted almost every government policy without reason.

The DPP caucus continues to support a private arms company to promote and integrate the nation's defense industry, he said.

When asked by reporters for comments, DPP presidential candidate Frank Hsieh's (謝長廷) camp expressed regret over Lee's resignation, urging a systematic examination of the establishment of the arms dealing firm.

"We hope the public would look at the matter from the viewpoint of the system," Hsieh camp spokesman Hsu Kuo-yong (徐國勇) said.

Lee graduated from the Air Force Academy in 1959, completing training courses and receiving his pilot's wings in 1965.

In 2001, the president promoted him to lieutenant general and Lee became the deputy commander-in-chief of the Air Force. One year later, he was promoted again to full general, becoming the commander-in-chief of the Air Force.

In 2004, the president promoted him to the highest rank in the armed forces, giving him his fourth star and assigning him as chief of the general staff.

ADDITIONAL REPORTING BY KO SHU-LING, MO YAN-CHIH AND CNA

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