A deal with the US for High Mobility Artillery Rocket Systems (HIMARS) that expires on Monday is in danger, as Washington remains inflexible and the relevant budget has not yet been passed by the Legislative Yuan, Deputy Minister of National Defense Hsu Szu-chien (徐斯儉) said today.
The Department of Strategic Planning is communicating with the US to try and extend the payment deadline for the HIMARS letter of acceptance (LOA), but the US seems to have little flexibility, Hsu told reporters prior to a policy report at the Legislative Yuan.
An LOA is a binding document confirming that a foreign government agrees to buy military equipment under a regulated government program, and gives the US government the authority to contract US weapons firms to manufacture and acquire the systems.
Photo: Ritchie B. Tongo, EPA
The offer expires if the buyer does not sign the LOA by the deadline, and the deal would have to be reviewed again.
The Legislative Yuan on March 13 authorized the Executive Yuan to sign four LOAs from the US for M109A7 self-propelled howitzers, Javelin anti-armor missiles, TOW 2B missiles and HIMARS.
The payment deadline for the HIMARS LOA is Monday next week, Hsu said.
Ammunition would be removed from the package if Taiwan misses the deadline, Department of Strategic Planning Director Lieutenant General Huang Wen-chi (黃文啟) said previously.
While the ministry is communicating with the US Defense Security Cooperation Agency in the hopes of securing an extension, the US side is pressing firmly and any extension would still come with a deadline, Hsu said, adding that the ministry still needs to discuss how to make the payment.
The issue is that the relevant procurement budget has not been passed by the Legislative Yuan and the special defense budget has not passed its third reading, Hsu said.
The ministry therefore has no basis to make the payment and is still discussing internally how to resolve the issue, he said.
The ministry has openly and transparently communicated with legislators about the rationale behind the special defense budget and is willing to discuss any feedback on the budget’s scale, Hsu said.
Whether equipment is procured through commercial means, military sales or commission is not the issue — it is merely the method of making the purchase, he said.
The seven items that the ministry has proposed to procure are based on current threats and necessary defense operations, which is the key logic lawmakers should understand, he added.
Additional reporting by CNA
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