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ARMS PROCUREMENT PLAN REMAINS UNCHANGED: DEFENSE MINISTRY

Central News Agency

2005-07-08 15:15:49

    Taipei, July 8 (CNA) The government's planned arms procurement from the United States remains unchanged, a Ministry of National Defense (MND) official said Friday.

    The official, who spoke on condition of anonymity, said the ministry has not received any information from the United States proposing that Taiwan finance the procurement with its regular annual budget, instead of with a special budget.

    He was responding to a media report that Washington officials put forth such a proposal during recent meetings with ROC Chief of the General Staff Lee Tian-yu in the United States.

    The report said in light of the objections to the procurement by Taiwan's opposition parties, the U.S. side thinks that Taiwan does not necessarily have to purchase the P-3C anti-submarine aircraft, Patriot PAC-III anti-missile systems and diesel-electric submarines as a package but can make each of the procurements separately.

    An influential U.S. think tank has also suggested that Taiwan increase its annual defense spending to 3 percent or 3.5 percent of gross domestic product (GDP) so as to accommodate the procurement in its annual budget, according to the report.

    However, the MND official said that increasing defense spending would inevitably squeeze spending in other areas and that a significant hike in defense spending is not likely in the foreseeable future in light of the country's current financial situation.

    Therefore, the official said, it is difficult for the government to include the procurement in its annual budget.

    The opposition Kuomintang and People First Party, which together form a slight majority in the Legislative Yuan, have blocked the special budget proposal for the arms procurement for two consecutive legislative sessions, insisting that the Cabinet include the procurement in its annual budget.

    The two parties have also proposed hiking annual defense spending to 3 percent of GDP from the current 2.4 percent.

(By Y.F. Low)

ENDITEM/Li