PREMIER REAFFIRMS SUPPORT FOR CONSTRUCTION OF SUBS BY CSBC
Kaohsiung, Nov. 22 (CNA) Premier Yu Shyi-kun reaffirmed Saturday
that he supports the idea of state-owned China Shipbuilding Corp.
(CSBC) building part of the submarines that the United States has
offered to sell to Taiwan.
Premier Yu made the remarks while attending a celebration party
held at the CSBC's shipyard to mark the 30th anniversary of the
company in Kaohsiung, southern Taiwan.
The premier said that since the CSBC's implementation of a
rejuvenation plan last year, which included the laying off of 45
percent of the work force and salary reductions of 35 percent, the
company's performance has been brilliant, registering profits of more
than NT$395 million (US$11.61 million) in the first 10 months of this
year following years of losses.
The premier expressed the hope that the CSBC will become one the
world's first-rate shipbuilding companies.
The premier also took the opportunity of his visit to see the
CSBC's preparations regarding construction of the submarines, viewing
its construction simulations of the hull of the pressure cabin of the
submarines.
The premier expressed his affirmation about the preparations,
while CSBC Chairman Hsu Chiang echoed Yu's words by saying that his
company "definitely has the capacity to build submarines."
Yu said that the government's stance is the same as the public's
concerning building part of the submarines domestically. He said the
government will negotiate again with the United States, adding that
the U.S. side has been made to understand that this is the
expectation of the Taiwan public.
The premier also said that the Cabinet has already set up an
inter-government agency task force to promote submarines and military
vessels built by domestic shipbuilders.
The U.S. government announced in April 2001 a robust arms sales
package to Taiwan, including eight diesel-powered submarines.
A U.S. Navy delegation said during a recent visit to Taipei that
Taiwan is not suitable in terms of building the submarines. The team
was quoted as saying that the CSBC's capability of assembling the
subs is probably okay but that its capability of developing the
weapon systems, dynamics systems and electronic instruments -- vital
parts of a submarine -- are inadequate.
Legislative Yuan President Wang Jin-pyng has said the submarine
procurement plan must be carried out based on a legislative
resolution, namely that the procurement is in line with Taiwan's
warfare needs, the price structure conforms to the international
price range, and six of the eight subs are built or assembled in
Taiwan.
CSBC officials have expressed the hope that a "2-2-2-2" plan will
be followed in the building of the eight diesel-powered subs, where
the first two subs are built entirely in the United States or
elsewhere abroad, one-third of the third and fourth subs are built in
Taiwan, two-thirds of the fifth and sixth subs are constructed in
Taiwan, and the last two subs are built completely in Taiwan.
(By Lilian Wu)
ENDITEM/Li
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