It would be “reasonable to pass NT$800 billion to NT$1 trillion” (US$25.09 billion to US$31.37 billion) for the special defense budget, Taichung Mayor Lu Shiow-yen (盧秀燕) of the Chinese Nationalist Party (KMT) said yesterday.
Lu made the remarks in an exclusive interview with the Liberty Times (sister paper of the Taipei Times).
Legislative committees recently completed reviewing the three versions of the budget bill, but cross-party lawmakers could not reach a consensus on the amount, requiring further negotiation.
Photo: Liao Yao-tung, Taipei Times
The KMT, under the lead of its Chairwoman Cheng Li-wun (鄭麗文), presented the so-called “NT$380+N billion” bill instead of a version of NT$810 billion reportedly planned by KMT Legislator Hsu Chiao-hsin (徐巧芯).
The KMT’s final version of “NT$380+N billion” is far lower than the Executive Yuan’s proposed NT$1.25 trillion, leading to speculation that the KMT opposes arms procurement.
Lu, who earlier this month visited the US, said she told US officials that different politicians from the same party might have different views and “an individual cannot represent the whole.”
Having spent 13 legislative sessions on the Foreign Affairs and National Defense Committee, Lu said she is “very familiar” with arms and commercial procurement procedures.
The Executive Yuan’s proposed NT$1.25 trillion special defense budget can be divided into three parts, Lu said.
First, the US$11 billion that the Legislative Yuan has already authorized to pass, she said.
Second, the US$14 billion in arms procurement that the US and Taiwan together deemed necessary for Taiwan’s self-defense, she said.
“I think that US$14 billion, or roughly NT$400 billion, should also be supported,” Lu told the Liberty Times.
Some legislators worry about authorizing the US$14 billion before the US has sent a letter of acceptance (LOA), or official pricing letter, for the arms procurement, she said.
“My view is exactly the opposite,” Lu said, adding that authorizing the budget would allow both sides to formalize an agreement and communicate the importance of this procurement as “the whole world is competing for weapons.”
“If we waited for the LOA, the US would have room to choose to not sell these weapons, use them itself or sell them to other countries such as Japan, South Korea or NATO countries,” she said.
The third part of the special defense budget allocates about US$15 billion for commercial or domestic procurements for military and non-military use, which some legislators worry about how to oversee, as they are not considered military procurements, Lu said.
Procuring equipment for military use commercially or through private contractors should be no problem, as it is a government procurement and both sides have appropriate laws in place, she said, adding that such procurements, covering drones and C5ISR systems, should be approved.
The remaining portion covers equipment meant to support private and industrial development, and could be included in the regular budget, as the exact figures are unclear, she said, urging the Cabinet to clarify them.
Lu has been perceived as a contender for the 2028 presidential race, and, with eight months left in her term as Taichung mayor, her next move is being closely watched.
While some have speculated her visit to the US this month and meeting with US Department of State officials could be seen as the opening move of her presidential campaign, Lu said it is still early to consider the 2028 election.
A national leader must not only make correct decisions, but also unite the country, as unity reflects national strength, defense and security, Lu told the Liberty Times.
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