For decades, the military has been secretly providing financial assistance to political dissidents and rebel forces in China via various channels, defense sources said yesterday.
The Ministry of National Defense is the prime source of these secret funds, while the National Security Bureau (NSB) has also played an important role in the affair.
Before it lost power two years ago, the KMT provided another channel for the secret funds to reach the designated Chinese recipients.
There is no information available as to how much money Taiwan has spent to assist Chinese dissidents and rebel forces.
But the defense ministry alone may have spent over NT$500 million for the purpose over the past two decades.
Starting in the early 1980s, the ministry has had a secret allocation fund of over NT$100 million a year to be distributed to Chinese recipients, sources said.
The allocation is hidden in the annual budget of a branch of the office of the chief of the general staff, who deals with foreign affairs.
This branch can remit the secret funds to overseas representative offices of the military in a third country, which would then give the money to the designated recipients via the help of a third party.
The practice was continued for years without any major problems, at least on the record.
The secret allocation for the Chinese recipients was initially over NT$100 million per year but has been reduced to several million NT dollars a year.
The money that the NSB and the KMT (before 2000), contributed to the funds is also difficult to estimate because of the lack of available documents.
The bureau is known to have used a different method from that of the ministry in channeling the funds out of the country. What exactly that method is has not been identified
The KMT used to use its overseas branches or front organizations as covers to distribute secret funds.
The amount of funds channeled out of the country via KMT overseas branches and front organizations could be much more than the amount spent by the defense ministry since the KMT at the time had access to almost all of the assets of the government at the time and had a lot of money at its disposal.
A defense official, who spoke on condition of anonymity, said the secret funding to Chinese dissidents and rebel forces could be traced back to 1960s, during the rule of the late president Chiang Kai-shek (
"Chiang authorized, at the time, the establishment of some front organizations such as the Asian People's Anti-Communist League or later the World Anti-Communist League to carry out these secret operations," the official said.
"Chiang's motive was obviously to overturn the Chinese communist regime and recover the mainland he lost to the communists," he said.
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