The Ministry of National Defense has come up with a "technology transfer" formula to facilitate the nation's plan to purchase eight diesel-powered submarines from the US, a senior official said over the weekend.
The senior defense ministry official, who spoke on condition of anonymity, said the US has explicitly opposed Taiwan's proposal that its state-owned China Shipbuilding Corp (CSBC) be allowed to take part in the construction of the eight submarines to be sold to the country.
As the opposition-controlled Legislative Yuan would not compromise on its previous resolution that some of the eight submarines should be built at CSBC shipyards, the official said the ministry should seek a way out.
"We plan to seek US consent to transfer submarine maintenance technology to the CSBC and purchase some submarine components and parts from qualified Taiwan companies on a reciprocal basis," the official said.
According to the ministry proposal, the military and the CSBC will send about 100 seed instructors to join the design and construction of the eight conventional submarines once the US authorities select a main contractor to build the submarines for the nation and strike a formal deal with the ministry.
In addition to transferring maintenance technology, the official said, the ministry will also ask the US to help nurture Taiwan's production capability in submarine-related industries.
The official said influential legislators from both ruling and opposition camps have tentatively agreed to the defense ministry's reciprocal technology transfer proposal.
The Cabinet has approved the ministry-proposed NT$610 billion special budget bill for purchases of eight submarines, a squadron of 12 anti-submarine aircraft and three PAC III Patriot anti-missile batteries.
The bill is now pending legislative approval.
The ministry official said if the legislature does not insist on the CSBC's participation in submarine construction, the budget can be cut by about NT$100 billion.
"If the ministry's new `reciprocal' proposal receives legislative support, we hope the legislature can screen and approve the special arms procurement budget bill in its new session scheduled to open Sept. 1," the official said.
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