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Obama Administration Makes Small Move to End Taiwan Arms Freezes

The US-Taiwan Business Council welcomes the Thursday, August 12 decision by the Obama Administration to notify Congress of three Taiwan arms sales programs related to radar upgrades for Taiwan’s Indigenous Defense Fighters (IDF). These relatively small programs – held at the U.S. Department of State since late winter of 2010 – were Direct Commercial Sales (DCS) but required congressional notification given their value of greater than US$50 million.

Council president Rupert Hammond-Chambers noted, “The Obama Administration released several Bush-era programs for congressional notification on January 29, 2010. At that time, a decision was made to submit no further notifications for the year. However, that approach has caused some serious difficulties in areas of long standing bilateral cooperation, and the Council is encouraged by this apparent change in policy.”

The recent policy under both the Bush and Obama Administrations – freezing Taiwan arms sales notifications and then releasing them as packages – has had the inverse effect of its apparent intent. By creating multi-billion dollar packages that capture headlines, the policy has increased Chinese ire at such sales rather than reducing it. China has rightly deduced that the process is vulnerable to external pressure, and recently applied such pressure by threatening sanctions against American companies and by denying entry to China for U.S. Secretary of Defense Robert Gates.

China is employing a carrot and stick strategy with Taiwan, offering significant economic incentives with the recently signed Economic Cooperation Framework Agreement (ECFA) while continuing military modernization and expanding the material threat represented by the People’s Liberation Army (PLA) – as noted in the recently released and renamed “Military and Security Developments Involving the People’s Republic of China 2010”. This strategy compels a response from both Taiwan and the United States. Allowing China’s military threat to go unmet threatens any hope of long-term success in reducing cross-Strait tensions.

Both the U.S. and Taiwan must determine which actions to take in support of Taiwan’s national security, without caving to pressure from China. The August 12 decision represents a small step away from the package-freeze-notify approach, instead moving back toward the pre-2007 era in which programs went to Congress as the bureaucratic process was completed. Regularizing the Taiwan arms sales process will in the long term make support for Taiwan’s defense needs more transparent and stable.

 

Obama Administration Makes Small Move to End Taiwan Arms Freezes (PDF file)

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Analysis & Commentary

Special Commentary: US-Taiwan Business Council Welcomes Congressional Notification of Sales to Taiwan of PAC-3 Missile Units, BLACK HAWK Helicopters, OSPREY Ships, HARPOON Missiles and MIDS/LVT-1 Terminals

The US-Taiwan Business Council welcomes Congressional Notification of Arms Sales to Taiwan

The US-Taiwan Business Council today welcomed the Obama Administration’s decision to notify Congress of the following arms sales programs for Taiwan, with a total value of US$6.392 billion:

  • 114 PATRIOT Advanced Capability (PAC-3) Missiles, 3 AN/MPQ-65 Radar Sets and Other Related Equipment & Services [US$2.81 billion]
  • 60 UH-60M BLACK HAWK Helicopters, With Technical & Logistics Support [US$3.1 billion]
  • 2 OSPREY Class Mine Hunting Ships, Including Refurbishment & Upgrade [US$105 million]
  • 10 RTM-84L HARPOON Block II Telemetry Missiles, 2 ATM-84L HARPOON Block II Telemetry Missiles, and Other Related Equipment & Services [US$37 million]
  • 35 Multifunctional Information Distribution Systems Low Volume Terminals (MIDS/LVT-1), with 25 MIDS On Ships Terminals and Other Related Equipment & Support [US$340 million]

The submarine “design phase” notification was not included and remains in limbo. Details on these arms sales programs are available via the DSCA website.

The United States provides Taiwan with these modern defensive weapons not as a goal in and of itself. It is China’s actions – its massive military expansion and modernization, and the commensurate imbalance it creates in the Taiwan Strait – that prompt this U.S. response.

Releasing these programs represents a step forward in the ongoing process of providing Taiwan with weapons systems for its own self defense. The Black Hawk program is particularly welcome, as Taiwan’s need for replacement helicopters is acute both for military and disaster relief operations. Given the aftermath of Typhoon Morakot this past August, it is evident that Black Hawks will offer a significant upgrade to the Taiwan military’s ability to assist citizens in times of national emergency.

While we welcome these notifications, the Council nevertheless remains concerned about the continued stacking of multiple congressional notifications into groups, as well as the increased stretches of time between such notification packages.

Special Commentary: US-Taiwan Business Council Welcomes Congressional Notification of Sales to Taiwan of PAC-3 Missile Units, BLACK HAWK Helicopters, OSPREY Ships, HARPOON Missiles and MIDS/LVT-1 Terminals (PDF)

Related DSCA Notices

 

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Analysis & Commentary

Defense News Editorial on Taiwan Arms Sales

When the U.S. State Department notified Congress Oct. 3 of a proposed $6.4 billion arms package offering a range of defensive weaponry to Taiwan, the sheer scope and cost of the package caught everyone’s attention.

Yet the package has a history dating back to 2001, and these notifications were both incomplete and well past due. The U.S. administration has drifted away from long-established policy in dealing with Taiwan during this time, and it only undercuts American interests in Asia.

U.S. President George W. Bush released a number of items for sale to Taiwan in April 2001 that were seen as crucial to Taiwan’s military modernization, thus fulfilling an important role in U.S. obligations to provide for Taiwan’s self-defense under the Taiwan Relations Act (TRA). That decision was based on counsel from all parties in the U.S. interagency process, as well as on Taiwan’s own assessment of its defense needs.

Taiwan bears equal responsibility for the seven-year impasse over arms sales, given its domestic political wrangling over the arms budget. Nevertheless, the budgets for these systems were passed in Taiwan in 2007, with eight pending congressional notifications starting to roll into the State Department from the Defense Department in early 2008.

While the notification package sent to Capitol Hill was welcome as a positive step in an otherwise troubled relationship, it omitted Black Hawk utility helicopters for logistics and humanitarian support, well as some of the requested Patriot anti-missile systems and a submarine design program.

It also took more than seven months for the notifications to accumulate – an unprecedented action irrespective of Bush administration claims that this was part of “a normal interagency process.” There is simply no existing example of notifications being stacked at the State Department in such a manner.

Editorial in Defense News – “Taiwan Arms: 2 Steps Back, 1 Step Forward” (PDF)

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Analysis & Commentary

Special Commentary: Taiwan Congressional Notifications Released

The US-Taiwan Business Council comments on Congressional Notifications for Taiwan Arms Sales

While there has been a delay of over 7 months for 8 separate Congressional Notifications (CNs) for arms sales to Taiwan, on October 3 the U.S. Department of State released six items for notification: Javelin, Harpoon, spare aircraft parts, PAC-III, E-2T retrofit, and Apache. The total DSCA estimated cost is US$6.463 billion.

Two of the programs in the original request were omitted – the submarine Phase I design program and the Black Hawk program – while the PAC-III program was reduced. [The original request included the Harpoon anti-ship missiles; Apache helicopters (x30 units); PAC-III (x7 units, 6 operational batteries + 1 training battery); diesel-electric submarine design – Phase I; airplane spare parts (mostly for fighters); E-2T retrofit; UH-60 Black Hawk utility helicopters (x60 units); and Javelin anti-vehicle missiles.]

It seems as if the Bush Administration’s intention today was to create an overall package based on a dollar figure. They viewed the Black Hawks as a large but not controversial program, and therefore it was one they could punt into 2009 with a degree of confidence that the incoming U.S. administration would not view it as controversial and would likely send it to the Hill. Omitting the submarines was not controversial within decision-making circles, and in the case of PAC-III it pared back the buy to reduce its overall cost.

The impasse over arms sales has done immeasurable damage to the U.S.-Taiwan relationship over the past several years, and these Congressional Notifications – while very late and incomplete – are an important and positive step forward in US-Taiwan relations. However, it has taken over 10 months for the notifications to accumulate – an unprecedented action irrespective of Bush Administration claims that this was part of a normal inter-agency process. There is simply no existing example of notifications being stacked in such a manner.

 

Special Commentary: Taiwan Congressional Notifications Released (PDF)
Related DSCA Notices (PDF)

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Analysis & Commentary

Statement in Support of House Resolution 676 (110th Congress)

The US-Taiwan Business Council states its position in support of House Resolution 676 (H.Res.676, 110th Congress, 2007-2008) on Taiwan Arms Sales and U.S. support for Taiwan’s legitimate national defense needs.

[The Council] supports the passage of H.Res.676 on the matter of U.S. support for Taiwan’s legitimate national defense needs, and specifically supports immediately allowing Taiwan to submit a Letter of Request (LOR) to the U.S. Department of Defense for Price and Availability (P&A) data for F-16C/D fighters.

Council Statement in Support of House Resolution 676 (PDF)