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Weapons of Mass Destruction (WMD)

MND should not fund private arms company: official

ROC Central News Agency

2008-02-20 19:58:24

    Taipei, Feb. 20 (CNA) A Ministry of National Defense (MND) official said Wednesday that he has suggested to Defense Minister Lee Tien-yu that it is not appropriate for the ministry to fund a private arms firm, Taiwan Goal, which was set up last month to deal with Taiwan's arms deals with other countries.

    Wu Wei-jung, director of the MND's Armaments Bureau, made the remarks when he attended a news conference called by Legislator Kuo Su-chun, a caucus whip of the main opposition Kuomintang (KMT).

    Wu said that after a cautious overview, he suggested that the plan for the MND to hold a 45 percent stake in the company is unfeasible. "Although the idea of establishing the company is good, the timing is inappropriate because of the March 22 presidential election, which may give rise to misgivings," Wu said.

    Asked by Kuo whether he suggested to Minister Lee that the company be disbanded, Wu said only that he "had made full suggestions and communications." "As far as I know, Lee agreed to the view," Wu continued.

    Kuo demanded that Premier Chang Chu-hsiung announce the disbanding of Taiwan Goal prior to the general interpellation session when the legislature officially opens its first plenary session Feb. 22, describing the stance as the KMT's "bottom line."

    Kuo said earlier in the week that if the premier does not disband the company, the KMT-dominated new legislature will adopt a resolution after the opening of the first session to forbid the MND from becoming a founding shareholder or from signing any contracts with the company.

    She also said that if the MND has already entered into contracts with Taiwan Goal, the KMT caucus will boycott all related government budgets, to prevent public funds from being invested in the company.

    She further said that if the KMT gets back into power in the March 22 presidential election, the new administration will not ratify any contracts with Taiwan Goal and will immediately disband the company.

    KMT Legislator Chang Hsien-yao questioned if the MND or the Armaments Bureau had any say in the forming of the company, even though the MND is the largest shareholder, and asked if the name was being given by the Presidential Office. Wu said the Presidential Office did "suggest a name."

    Premier Chang confirmed last week that the controversial establishment of Taiwan Goal was made possible with public funds from various government agencies and state-owned corporations, but he defended the move as "necessary to help upgrade Taiwan's defense industry."

    The Ministry of Economic Affairs (MOEA) also confirmed that Taiwan Goal completed registration with the MOEA Jan. 28 as a private company, with capital of NT$1 billion (US$31.15 million) and paid-in capital totaling NT$80 million, and that Wu Nai-jen, a DPP heavyweight and head of China Steel Machinery Corp. -- a subsidiary of the formerly state-owned China Steel Corp. -- serves as chairman of the company.

    MOEA data shows that Taiwan Goal has a seven-member board of directors, with three seats going to the MND, which will contribute 45 percent of Taiwan Goal's capital. The company's office is located in Taipei 101 -- one of the world's tallest buildings.

    Taiwan Goal is registered to deal in a variety of businesses, including the import and export of arms and weaponry systems; sales of garments and accessories, industrial explosives, precision instruments, and batteries of all types; and product design, according to the MOEA.

    The defense minister was quoted by opposition KMT lawmakers as having acknowledged that although the MND is the largest shareholder, the company will be beyond the control of his ministry.

(By Lilian Wu)

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