The stalemate over the Chen Shui-bian Administration’s request for funding three key weapon systems through special extra-budgetary means within Taiwan’s Legislative Yuan (LY) has been a significant disappointment for the United States and its defense industry. The special budget has also become a frustration to President Chen Shui-bian, whose popularity is at a record low, to the Democratic Progressive Party (DPP), and to the Ministry of National Defense (MND).

The question asked by a senior United States government representative during the recent U.S.-Taiwan Business Council Defense Conference in San Diego is legitimate. If Taiwan is not willing to properly invest in its own self-defense, why should the United States continue to provide for it? The special budget has indeed become a domestic “political football,” and could be viewed as a symbol of Taiwan’s commitment to defend itself. It is true that national defense should be above partisan politics, and that the people of Taiwan should hold their politicians to similar standards. It is legitimate to ask how much should be sacrificed by the U.S. for the security and democracy of others.

The United States has a vested interest in a Taiwan that is able to maintain a sufficient self-defense capability; is stable, democratic, and economically viable; plays a constructive role in promoting political, economic, and military stability in the Taiwan Strait and the Western Pacific; has a professional, civilian-controlled defense establishment that is modern, joint, and able to function effectively should it be required to defend itself; and enjoys a political leadership that possesses the security and confidence to engage in a political dialogue with the People’s Republic of China (PRC) to achieve peaceful resolution of differences in a manner acceptable to the people of Taiwan.

With this in mind, this report attempts to address Taiwan’s security and commitment to its own defense. What are the conditions that have resulted in the current impasse? Is the special budget truly a symbol of Taiwan’s commitment to its defense? If the special budget does ultimately fail, what are the implications for the United States and U.S. defense industrial interests? Are there lessons that could be drawn in order to further U.S. national interests and those of the U.S. defense industry? If one assumes that Taiwan is an emerging yet still evolving democracy, what role could the United States and its defense industry play in assisting Taiwan through its growing pains?

Executive Summary: Taiwan Defense & Security Report – Q3, 2005

Well into his second term, Chen Shui-bian and the Democratic Progressive Party (DPP) continues to face a number of challenges in ensuring Taiwan’s defense and national security. With less than three years remaining in his term, President Chen is seeking to consolidate control over the country’s national security and defense establishment, and implement an ambitious force modernization and defense reform program.

However, a number of obstacles stand in the way of the Chen Shui-bian Administration’s successful pursuit of its defense and national security agenda. Perhaps the most significant is the DPP’s inability to ensure passage of an extra-budgetary funding request for weapon systems that are considered central to Taiwan’s force modernization program.

This quarter’s defense and national security analysis examines the special budget issue in detail, including how the special budget issue has evolved, and the domestic political and economic environment that has for so long been preventing its passage.

Executive Summary: Taiwan Defense & Security Report – Q2, 2005

In the wake of its failure to attain a majority in the December 2004 Legislative Yuan (LY) elections, the first quarter of 2005 was marked by a deepening of political divisions between the ruling Democratic Progressive Party (DPP) and the Kuomintang (KMT). A number of events this quarter have created a tense and emotional atmosphere, with significant implications for the future of Taiwan’s national security and cross-Strait stability.

This quarterly report reviews Taiwan’s security environment, including the Chinese Anti-Secession Law, the détente between the DPP and opposition People’s First Party (PFP), and the KMT’s cross-Strait initiative. This report then examines the implications of the environment on today’s key defense policy issue – the Chen Shui-bian administration’s NT$480 billion (US$15.29 billion) special budget request for diesel electric submarines, PATRIOT PAC-3 missile defense systems, and P-3C maritime patrol aircraft. Finally, we provide an update on key Army, Navy, and Air Force issues.

Executive Summary: Taiwan Defense & Security Report – Q1, 2005

In the wake of Taiwan’s legislative elections in December 2004, Chen Shui-bian’s Democratic Progressive Party (DPP) administration is grappling with a range of domestic and international challenges to safeguard Taiwan’s defense and national security. Over the past year, President Chen – having overseen a major transition in defense leadership during the first month of his second term and failing to secure a legislative majority in December – is trying to consolidate control over the country’s national security and defense establishments and trying to implement a far reaching force modernization and defense reform program.

However, a number of obstacles continue to slow progress. First, a highly divided domestic polity in which the opposition is using defense issues as a bully pulpit to further political agendas continues to stymie his efforts to develop a force capable of standing up to the growing threat from the People’s Republic of China (PRC). Taiwan continues to suffer from limited choices in its force modernization plan, an issue that is further complicated by an inefficient defense industrial infrastructure. This defense and national security analysis reviews the key events of 2004, assesses the results of the December 2004 legislative elections, and examines developments in Taiwan’s defense budget and procurement programs.

Executive Summary: Taiwan Defense & Security Report – Annual Review, 2004