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Lee willing to deal on arms budget

A Chinese newspaper featuring a story about Beijing's proposed `anti-secession' law is seen at a news stand in Beijing yesterday, featuring a photo of Premier Frank Hsieh under a headline which reads: ``Taiwan military in panic over anti-secession law.'' Photo: AP

The Ministry of National Defense has sought to compromise with opposition parties on the arms procurement budget by delaying the budget for three PAC-3 missile batteries to next year.

The ministry already reduced the proposed arms budget from NT$610.8 billion (US$19.3 billion) to NT$480 billion last month.

"The ministry has handed a proposed NT$480 billion arms bill budget to the legislature, but if the legislature still wants to cut it down, then cut it down," Minister of National Defense Lee Jye (李傑) told a a press conference in Taipei yesterday.

He said that if the legislature reduces the bill to around NT$350 billion, the ministry would make the procurement of eight diesel-powered submarines and 12 P-3C sub-hunting aircraft its priorities.

Democratic Progressive Party (DPP) Legislator Lee Wen-chung (李文忠) said yesterday that the ministry is considering the possibility of transferring the procurement of 3 PAC-3 missile batteries into next year's annual military budget.

"To reduce the arms deal budget, the ministry would have to transfer the cost of planned personal training and ammunition supplies to the conventional annual military budget in coming years."

Lee Jye, minister of national defense

Lee Wen-chung said the KMT and PFP would be likely to agree to an arms budget of about NT$330 billion, and the ministry has worked on the details of the budget with KMT and PFP legislators.

The lawmaker said Lee Jye's arms purchase sequence reflected the fact the ministry regards a submarine blockade by China as the biggest threat to Taiwan, more than a missile attack, because the country relies heavily on international trade and secure sea lanes.

The defense minister also told reporters that while some in Taiwan and US defense circles are concerned that the submarine deal has moved so slowly because the US has not built conventional diesel-powered submarines for more than 40 years, US Deputy Assistant Secretary of Defense Richard Lawless has reassured the ministry that the US has not changed its mind about selling those subs to Taiwan.

He also said the NT$480 billion arms bill was so expensive because the weapons would be combat-ready upon delivery.

"To reduce the arms deal budget, the ministry would have to transfer the cost of planned personal training and ammunition supplies to the conventional annual military budget in coming years," he said.

"When the ministry purchased four Kidd-Class destroyers, it reduced ammunition purchases for budgetary reasons," he said.

The arms purchase budget covers three major items: three PAC-3 missile batteries, 12 P-3C sub-hunting aircraft and the eight diesel-powered submarines.

The ministry has previously said the budget could be cut to NT$480 billion if the eight submarines are built in the US instead of in this country.
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