Hai Lung II [Sea Dragon]-class Submarine
Taiwan’s navy currently has four submarines, two of which are too outdated for operations and are used only as training vessels. Taiwan has long been in the market for additional diesel submarines to counter China's growing naval might. Taiwan could deploy submarines defensively at the entrances of its main ports -- at Kaohsiung in the south and Keeling in the north -- to stop Chinese submariness from mining them. Or Taiwan could use submarines to sink Chinese shipping, or blockade Chinese ports. Beijing has strongly opposed the sale of submarines to Taiwan, which it has characterized as offensive weapons.
China maintains an overwhelming numerical advantage in submarines over Taiwan and this quantitative advantage will continue through the decade. While the number of boats in service in China is expected to decline, their qualitative capabilities will increase. China is producing more modern submarines and is using submarine-related technology from Russia. Although the force is oriented principally toward interdicting surface ships using torpedoes and mines, China shortly will begin arming some of its submarines with a submerged-launch cruise missile. The capability of Chinese submarines to conduct ASW operations is expected to improve in light of the acquisition of Russian-built KILO-class submarines and the greater emphasis being placed on ASW training. As a result, China's submarine fleet will constitute a substantial force capable of controlling sea lanes and mining approaches around Taiwan, as well as a growing threat to submarines in the East and South China Seas.
Under its submarine program, Taiwan's navy plans to increase its submarine fleet and to decommission old submarines, bringing the total number of submarines to about a dozen. But Taiwan's desires to add six to ten new submarines to the Navy have long remained at the paperwork stage. The United States had not endorsed Taiwan’s proposal because of fears it could upset the balance between the mainland and Taiwan. Indeed, the United States rejected Taiwan's request for subs in the 1990s.
Taiwan considered building its own submarines if it was not able to acquire them from other countries. Under one plan, Taiwan's state-run China Shipbuilding Corp., in cooperation with Taiwan's Chungshan Institute of Technology, would build six to 10 of the submarines for military service starting in 2005. Taiwan's China Steel Company has developed HY submarine steel; China Shipbuilding Company had also begun studying and developing the design and build process of submarine hull on the basis of its experience in submarine servicing; and the development of heavy wire-guided antisubmarine torpedoes has gone underway at Chung Shan Academy of Scientific Research.
In the 1990s the United States had ruled out the possibility of selling submarines to Taiwan, but was not certain whether or not it will export submarine construction technology to Taiwan. Key technologies for the submarine, including the torpedo fire control system and electronic radar system, still have to be obtained by Taiwan through the arms sale channel. Taiwan explored obtaining the parts to build submarines from other countries in the face of strict regulations on the export of submarine parts. Taiwan's Defense Ministry was concerned that there would be technical problems if Taiwan builds the submarines without support from other countries, and consequently has refused to approve a budget for more submarines. If Taiwan built conventional submarines, their performances would approximate those of "Hai Lung" and be inferior to the Chinese Kilo-class submarines bought from Russia.
The Netherlands submarine builder RDM provided Taiwan with a pair of Zwaardvis [Swordfish] class submarines, and remained in the running for Taiwan's planned construction of up to a dozen diesel submarines (despite the Netherlands government's prohibition of military sales to Taiwan). And RDM announced in September 2000 that agreement had been reached with Egypt for assembly of two 1,600-ton Moray-class diesel submarines at Ingalls Shipbuilding in Pascagoula. Although this could lay the groundwork for Ingalls building submarines for Taiwan, construction of the two units for Eqypt was dependent on US government approval.
In January 1999 a plan to fabricate German-designed submarine sections at Electric Boat for delivery to Taiwan for final assembly was made public. General Dynamics, the parent company of Electric Boat, would build as many as 10 diesel-electric submarines for the Taiwanese Navy. The German shipbuilding company HDW approached General Dynamics about building the submarines under an export license, which is allowed under State Department rules passed in 1994, when Ingalls Shipbuilding was seeking approval to build diesel boats for the Egyptian Navy.
Electric Boat has long pushed to produce diesel submarines for export, but production would likely not take place in Groton. The Navy does not want to see export diesel submarines produced at the same yard as advanced nuclear submarines, given concerns about technology transfer. The submarines would be equipped with sonar and defensive weapons systems jointly developed by Europe and the United States, while submarine parts would be supplied by General Electric, and after the subs were commissioned the US would provide training, technology and support.
In early 2001 the Bush administration considered a report from the United States Pacific Command that concluded that Taiwan needed new submariness. On 24 April 2001 it was announced that the Bush Administration had decided to help Taiwan acquire up to eight diesel submarines. Although the United States does not build diesel submarines, it would facilitate their production for Taiwan by manufacturers in Germany or the Netherlands, since these countries may wish to avoid angering Beijing by selling submarines to Taiwan directly. The Bush Administration indicated that the US might build the submarines at Pascagoula using either German or Dutch designs. However, German officials immediately stated that they would not permit such a sale. And Dutch officials indicated that their agreement with China not to sell weapons to Taiwan would preclude sales to third parties for transfer to Taiwan.
In August 2001 it was reported that the US Navy had encouraged General Dynamics Electric Boat to purchase a 40% stake in Australian Submarine Corporation [ASC], which had built six Collins-class conventional submarines for the Royal Australian Navy. In November 2000 the Australian Federal Government had acquired that portion of the shareholding in Australian Submarine Corporation that it did not then own. At the same time, the Government announced that it intented to divest all of its interests in ASC, once suitable arrangements have been put in place.
Seven companies presented plans to build eight diesel submarines for Taiwan, despite protests from China. The companies included three shipyards owned by Northrop Grumman, three owned by General Dynamics and Taiwan's China Shipbuilding Corp., which together with Lockheed Martin attended an initial 16 November 2001 meeting at the US Navy's Naval Sea System Command (NAVSEA). The project, estimated to be worth up to $4 billion, calls for eight subs to be built.
In March 2002 an American company, American One Equity Partners, announced plans to buy 75 percent of Germany's largest shipbuilder, HDW, a sale approved by the European Commission in May 2002. Leading American defense contractor Northrop Grumman is a partner in the HDW acquisition. In June 2002 German Chancellor Gerhart Schroeder reiterated his position barring submarine sales to Taiwan.
In May 2002 Taiwan's legislature passed a resolution requiring that at least six of the proposed eight subs must be built in Taiwan with US help.
In late June 2002 the cost of the eight submarines was reported as being as much as US$6 billion, making them the most expensive weapons system Taiwan has ever bought from the United States.
In late July 2002 Taiwan's navy completed talks with the US Navy International Programs Department on the purchase of eight diesel-powered submarines from the US. The two sides reached an agreement on the type of submarine that the US will provide to Taiwan. The US delegation tried to persuade Taiwan's navy to accept Israeli-built submarines, but Taiwan insisted on submarines designed and manufactured by Germany.
In late 2002 Taiwan provided an initial payment of $400,000 to the US for studies of the type of submarines to be built. Designs reportedly included a redesigned, 1950s-era diesel submarine based on the USS Barbell-class of boats, and the Spanish Galerna-class submarine, which is similar to the French Agosta-class submarine. The German Type 209 was said to be unlikely to be picked, given the German government's fear of retribution from China.
Northrop Grumman's Ingalls shipyard is a candidate to build any US diesel electric submarines for Taiwan. Two Republican senators Trent Lott and Thad Cochran, both from Mississippi, wrote to Rear Adm. J. Phillip Davis, the Navy's submarine program officer, urging the Taiwan diesel boats to be built in the United States. "Fabrication of these submarines within the United States is consistent with Navy policy and would enhance the stability of our shipbuilding industry," the senators wrote 04 October 2002.
The US Navy hosted an invitation-only Industry Briefing on December 17 and 18, 2002 to inform selected qualified companies about the anticipated US Navy acquisition of diesel submarines for Taiwan. Consistent with 10 U.S.C. 2304 (c) (7), providing for "Public Interest" exception to the Competition in Contracting Act, the anticipated future competition will be limited to General Dynamics, Northrop Grumman, Raytheon Company and Lockheed Martin to compete as prime contractors. However, also invited to the industry briefing were known contractors possessing modern diesel electric submarine designs currently in use or under construction for use in navy arsenals. Spain, Germany and the Netherlands have all declined to bid on the project.
In October 2003 Taiwanese legislators proposed that the state-run China Shipbuilding Corp (CSBC) would build one-third of the third and fourth submarines, and two-thirds of the fifth and sixth ones and build the last two on its own.
In November 2003 it was reported that the US estimated that the eight diesel-powered submarines could cost between US$8.6 billion and US$11.7 billion (NT$301 billion to NT$409 billion), depending on the displacement of the submarines - either 1,500 tons or 2,000 tons. The eight submarines would be completed in 2019 if the budget was approved by Taiwan's parliament in 2004.
In May 2004, Jane's Defence Weekly indicated that Northrop Grumman Ship Systems is offering Taiwan a modernized version of the Barbel - class submarine. NGSS would partner with Howaldtswerke- Deutsche Werft (HDW). The design of the submarine would use the Barbel's hullform fitted with an HDW pressure hull and modern components such as AIP. The submarine would have a submerged displacement of about 2,644 tons, a maximum speed of 21 knots, a range without refuelling of about 19,000nm and six torpedo or missile launch tubes. The likelihood of the deal is uncertain as elements in Northrop Grumman appears to be cool to the idea, and it is unclear if the German government would approve HDW's transfer. [Andrew Koch, "Taiwan-US Ship Deals Stalled" Jane's Defence Weekly 26 May 2004]
On 02 June 2004 the Executive Yuan approved the Defense Ministry's special budget allocations for major military procurement programs worth a total of NT$610.8 billion (about US$18.23 billion). The money to finance the special budget will come from NT$94 billion through the release of shares of state-owned enterprises, NT$100 billion from the selling of state-owned land, and the raising of the national debt of NT$420 billion. The proposed budget would cover six sets of Patriot Advanced Capability III anti-missile systems, eight conventional submarines and 12 P-3C anti-submarine aircraft. The procurement of eight conventional submarines will cost NT$412 billion (US$12.3 billion) to be carried out from 2005 to 2019.
In May 2005 Taiwan’s cabinet approved a revised arms deal with the United States worth almost $15.5 billion over a 15-year period. The initial proposal had been rejected by parliament. The arms package, which includes eight conventional submarines, the Patriot anti-missile system and a fleet of anti-submarine aircraft, was sent back to Parliament for final consideration.
Hidden Dragon / Indigenous Defence Submarine
The CSC has a Hidden Dragon project launched in July 2001 to show its technological capabilities to build the submarines. The Taiwan Navy is seeking a logistics approach that maximized self-sufficiency in maintenance and will dole out much of the work to the CSC.
The Indigenous Defence Submarine is currently under feasibility study. This project will be led by CSBC as well as local industry-wide and local academics. Indigenous Defence Submarine is a CSBC dream for long long time. Could it be fulfilled? Now CSBC has decided to have all local resources of industry and academics join together to make it true. The Task Force Sub Dragon is collecting relevant information & thoughts doing the feasibility study.
