The Pentagon has described as overly optimistic a Taiwan news report that a German shipyard would build diesel-electric submarines for Taiwan, a US radio station reported.
Pentagon officials told Voice of America that no decisions have been made about a contract for the submarines, which were approved last year by the US for sale to Taiwan, and termed the Taiwan report as "overly optimistic."
The US no longer makes diesel-electric submarines, although it approved their sale to Taiwan, which has triggered months of speculation about where the ships would be built. Most countries with adequate shipbuilding facilities are reluctant to build them for Taiwan out of fear of alienating Beijing.
A local Chinese-language newspaper reported on Saturday that a German shipyard, Howaldtswerke Deutsche Werft AG (HDW), has assured Taiwan it will build eight diesel-powered submarines for Taipei.
The paper quoted HDW deputy CEO Hannfried Haun as saying that details of the deal will be finalized after the Sept. 22 German election. In November, Haun and the chief of Northrop Grumman -- the US contractor for the eight subs -- will visit Taiwan to hold consultations with the Taiwan navy on building the subs, the paper said.
US investment group One Equity Partners bought HDW earlier this year, sparking further speculation that the subs would be built in Germany.
Haun was quoted as saying that the US would apply to the German Security Committee -- the government panel that must approve any military sales -- for approval of the deal.
"To defend the Taiwan Strait, what Taiwan needs most is HDW's newest design and newest fuel cell system," Haun was quoted as saying. "Taiwan can also choose modified Type-212, Type-214 or the Dolphin-class -- a German-designed sub equipped with Israeli weaponry."
Last April, the US approved the largest arms sale package to Taiwan in almost a decade, including the sale of four 1970-era Kidd-class destroyers and a dozen P-3 Orion submarine hunter aircraft.
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