DEFENSE MINISTRY DEFENDS BUDGET FOR SUBMARINES
ROC Central News Agency
2005-09-28 21:35:47
Taipei, Sept. 28 (CNA) The Ministry of National Defense defended its budget for eight submarines in a report to the Legislative Yuan Wednesday, calling the price of NT$288 billion (US$8.65 billion) reasonable.
The ministry said in the report that the diesel-electric submarines offered by the U.S. to Taiwan are out of production in the United States. Therefore, to build the submarines, the report said, the U.S. has to set up a production line exclusively for them, in addition to getting the approval of its origin designers for export.
Taking into account of these factors, the defense ministry said, the U.S. estimates the price of the submarines at US$657 million, or NT$21.12 billion apiece.
If the cost of ammunition and training of crews are included, the price will increase to NT$288.03 billion and that is the price asked by the ministry in a special budget for the submarines.
The report disputes allegations that the price asked by the U.S. for the submarines is too high, saying that the price of the same class of submarines may vary with its building time, builders and even its buyers.
Citing a story published by Jane's Defense Weekly, the report said, the French sold its Scorpion-class submarines to Malaysia, India and Chile separately for prices ranging from US$580 million apiece to US$250 million apiece.
Although the U.S. has promised to sell eight submarines to Taiwan, the report said, it won't start the construction of them before Taiwan's legislature approves the budget for the deal, adding that the defense ministry will take pains to ensure that the price for the deal is not inflated if the legislature passes the budget.
(By Maubo Chang)
ENDITEM/mw
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