Taiwan has signed six arms procurement offers from the US with a total value of more than NT$208 billion (US$6.58 billion) covering long-range precision strike systems, missile stockpile replenishment and joint production of large-caliber ammunition, the Ministry of National Defense said today.
The government’s proposed NT$1.25 trillion special defense budget has been stalled in the Legislative Yuan as opposition lawmakers question the amount and procurement items, while the Presidential Office and defense ministry say that the full amount is necessary to safeguard Taiwan.
On Monday, Minister of National Defense Wellington Koo (顧立雄) briefed the legislature’s Foreign Affairs and National Defense Committee on the defense budget for the second time.
Photo: EPA-EFE / Ministry of National Defense
Yesterday, the ministry released a report detailing unclassified portions of the budget and outlining the seven major categories of equipment to be procured.
The largest portion of the budget, about NT$550 billion, would be allocated to air defense systems, anti-ballistic missile interceptors and anti-tank guided missile systems, the report said.
The ministry today announced six letters of acceptance (LOA) from the US for arms procurements totaling NT$208.77 billion, which were signed by Taiwan’s defense mission to the US and the American Institute in Taiwan.
This is expected to help facilitate the passage of the special defense budget, as opposition lawmakers have suggested waiting to pass the budget until LOAs are received.
An LOA is a binding document confirming that a foreign government has agreed to buy US military equipment under a regulated US government program, and gives the US government the authority to contract with US weapons makers to acquire the systems.
The six LOAs are as follows: NT$123.5 billion for High Mobility Artillery Rocket Systems, NT$73.89 billion for M109A7 Paladin self-propelled howitzers, NT$5.32 billion for army missile stockpile replenishment, NT$5.13 billion for navy anti-armor missiles, NT$910.45 million for the joint production of large-caliber ammunition and NT$22.88 million for an integrated air defense services technical consultancy project.
The government’s “Taiwan Shield” defense plan envisions an integrated air defense network combining newly acquired US Patriot PAC-3 MSE missiles and the Integrated Air and Missile Defense Battle Command System with Taiwan’s domestically developed Sky Bow III and Strong Bow systems.
As the full package has not yet been officially approved by the US, Taiwan signed a separate technical consultancy deal on integrated air defense, under which US experts would help with planning and system integration.
The move is seen as laying the groundwork for a larger arms procurement package expected later.
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