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.