Lockheed Martin has 4-month window to secure F-16 sale to Taiwan

Lockheed Martin has 4-month window to secure F-16 sale to Taiwan

	Published : Tue, 19 Jun 2007 19:07 By : Agencies Print this Story

WASHINGTON (Thomson Financial) - The Bush administration has about four months to decide whether to allow the sale of dozens of F-16 fighter aircraft to Taiwan, but some are predicting the US may not support the sale because of Chinese opposition.

The planes would be sold by Lockheed Martin pursuant to a June 15 Taiwan defense budget that put aside 450 mln usd for the purchase. The budget as approved gives officials four months to get pricing and availability data from the US, which essentially forces the US to decide the matter quickly.

Observers said the decision would be made by the Departments of Defense and State, the National Security Council and others. Randy Shriver, a former deputy assistant secretary of State now with Armitage International, said State, the NSC and the White House appear 'skittish' on the sale, primarily because of Chinese opposition.

State is hosting a delegation of Chinese officials in Washington for a senior-level dialogue, and Shriver said Chinese officials are already expected to press the US to reject it. China has consistently opposed all efforts by the US to reach out to Taiwan, while the US has been nervous about upsetting China because of its desire to guarantee China's help in talks to de-nuclearize the Korean peninsula.

'There's a belief that China's always needed for something,' another source added. 'That card can be played well by China.'

However, others said the sale has a chance of being approved, as the Defense Department appears to be supportive of the transaction. Shriver agreed that the sale could be pitched to China as a simple addition to Taiwan's fleet of 150 F-16s that the US approved for sale in 1992.

US-Taiwan Business Council President Rupert Hammond-Chambers argued the F-16s argued needed by Taiwan to update its defensive posture and maintain the status quo in the Taiwan Strait. China has built up armaments on its coast facing Taiwan in recent years in what many say is an attempt to quash separatist activities in Taiwan.

Taiwan approved the money to buy the planes as part of a budget that also allocates funding to fulfill part of a 2001 agreement to buy US arms. The budget sets aside 6 mln usd to study the design and purchase of eight US submarines, and additional funds to upgrade missile batteries and buy 12 anti-submarine aircraft.

Taiwan's approval of its defense bill came on the same day the US released new regulations that set up new obstacles to selling goods to China that could contribute to China's military.

pete.kasperowicz@thomson.com

pik/wash/dca

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