The US military will establish a front company in Taipei by the end of this year to prepare for maintaining four Kidd-class destroyers that the navy will buy from the US, defense sources said yesterday.
The company, which will be located in Taipei County's Yungho township, will comprise active-duty and retired US military officials, mostly specialists in the field.
It will also recruit local personnel, including retired naval officials, for its small but elite work force.
The company will be established within the next two months according to an agreement Taiwan has reached with the US regarding the purchase of the Kidds.
Under the agreement, the US military is responsible for the repair and maintenance of the Kidds for a number of years after they are delivered.
During this period, the US military has to pay for the running costs of its front company, although this will not include the cost of spare parts for the ships.
A navy official, who spoke on condition of anonymity, said the presence of US military personnel will be essential during the first few years after the ships are delivered.
"They have to be on the ships to teach us how to operate some sophisticated equipment on board. It will be the first time that we will have a chance to operate an advanced fighting ship of this kind," the official said.
"They will stay on the ships until we are fully familiar with the operation of the Kidds. It will be part of the services that the US promises to offer as part of the Kidd package," he said.
The navy last allowed US military personnel on its ships in the mid-1990s when it took delivery of eight Knox-class frigates from the US.
The US military personnel were then in Taiwan to help train the navy how to operate the frigates, especially the ships' towed sonars.
The navy can now independently operate the Knox-class frigates without the help of the US.
But the learning process came at a cost, defense sources said.
During the first few years, the Knox-class frigates were put to sea frequently and intensively, for five to seven days at a time, to increase their combat readiness.
The result was that some of the frigates, which had already been used by the US Navy for many years before being sold to Taiwan, developed serious mechanical problems. Naval personnel also got tired of serving on the frigates.
The Kidds, built in late 1970s, will cost an estimated NT$300 million a year to maintain.
They will cost NT$56.8 billion, according to the military's budget request for the next financial year.
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