Tag: FMSO

The US-Taiwan Business Council Comments on the September 24, 2018 U.S. Arms Sale to Taiwan

The US-Taiwan Business Council today welcomed the decision by the U.S. Department of State to announce its approval of a possible Foreign Military Sales Order (FMSO) to Taiwan for an estimated value of US$330 million. The Defense Security Cooperation Agency (DSCA) delivered the required certifications notifying Congress of the proposed Taiwan arms sale on September 24, 2018.

The published Congressional Notification (transmittal number 18-09) is for an FMSO II that would provide funds for blanket order requisitions – under a Cooperative Logistics Supply Support Arrangement – for stock replenishment supply of standard spare parts and repair/replace of spare parts in support of the F-16, C-130, F-5, Indigenous Defense Fighter (IDF), all other aircraft systems and subsystems, and other related elements of logistics and program support.

The US-Taiwan Business Council is encouraged by this Congressional notification, which appears to move away from the previous “bundling” method for Taiwan arms sales. Notifying each sale when it is ready is a positive development, and indicates more potential activity at the end of this year and into early 2019. It is the approach the Council has advocated for since the original bundling began in 2008.

Real issues remain, however, with Taiwan’s ability to ask for the defensive systems it wants and needs. Since 2011, U.S. arms sales have focused almost exclusively on sustainment and maintenance of Taiwan’s existing military capabilities. There has seemingly been no willingness by the U.S. to assess new capabilities for Taiwan, with requests for new systems apparently rejected or deterred prior to the initial stages of evaluation.

New arms sales requests by Taiwan should be subject to an interagency assessment that includes the National Security Council, the U.S. Department of Defense, the U.S. Department of State, the Indo-Pacific Command, the American Institute in Taiwan, and other organizations. All such requests should be evaluated on their merits only, with potential Chinese reactions to a sale not a part of the calculus.

“Intelligent” Requests
In speeches and other statements, the State Department has discussed the need for “intelligent” arms sales, which leave unanswered questions both about the criteria for arms sales and the existing process. Is Taiwan free to make any request, or only those deemed “intelligent?” Who makes the determination of what is “intelligent,” and at what stage in the review process does this determination take place?

Council President Rupert Hammond-Chambers noted that “the Trump Administration’s stated policy is that Taiwan may submit a Letter of Request (LoR) for Pricing & Availability (P&A) data for any platform or system Taiwan feels they need to mount a credible defense, and it is entitled to receive a full assessment and timely response to their request by the full interagency review process.

Hammond-Chambers added, “This gets at the heart of normalizing the arms sales process. Will Taiwan be able to ask for all that it feels it needs, to then have that LoR accepted – not deterred if deemed “unintelligent” – and assessed on its merits? If the U.S. deems that a request is not doable at the moment, will they offer an alternative solution? It is not for any one department to determine what is “intelligent,” but for the full interagency review process to be employed to ensure that Taiwan can mount a credible and full defense as required by the Taiwan Relations Act.

http://www.us-taiwan.org/pressrelease/2018september25congressionalnotificationsarmssalestotaiwan.pdf

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September 24, 2018 – U.S. Foreign Military Sales Order (FMSO) II to Taiwan

On September 24, 2018 the Defense Security Cooperation Agency (DSCA) made the following statement:

The State Department has made a determination approving a possible Foreign Military Sales Order (FMSO) II to provide funds for blanket order requisitions to the Taipei Economic and Cultural Representative Office in the United States (TECRO) for an estimated cost of $330 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today. TECRO has requested a Foreign Military Sales Order (FMSO) II to provide funds for blanket order requisitions, under a Cooperative Logistics Supply Support Arrangement for stock replenishment supply of standard spare parts, and repair/replace of spare parts in support of the F-16, C-130, F-5, Indigenous Defense Fighter (IDF), all other aircraft systems and subsystems, and other related elements of logistics and program support. The total estimated program cost is $330 million.

This proposed sale is consistent with U.S. law and policy as expressed in Public Law 96-8.This proposed sale will contribute to the foreign policy and national security of the United States by helping to improve the security and defensive capability of the recipient, which has been and continues to be an important force for political stability, military balance, and economic progress in the region. The proposed sale of spare and repair parts is required to maintain the recipient’s defensive and transport aerial fleet. The recipient has been operating these fleets since 1996 and will have no difficulty absorbing this equipment and support into its armed forces.

The proposed sale of this equipment and support will not alter the basic military balance in the region. There are no principal contractors involved with this potential sale. There are no known offset agreements proposed in connection with this potential sale. Implementation of this proposed sale will not require the permanent assignment of any U.S. Government or contractor representatives. There will be no adverse impact on U.S. defense readiness as a result of this proposed sale. This notice of a potential sale is required by law and does not mean the sale has been concluded.

All questions regarding this proposed Foreign Military Sale should be directed to the State Department’s Bureau of Political Military Affairs, Office of Congressional and Public Affairs, pm-cpa@state.gov.

The original news release is available on the DSCA website:
http://www.dsca.mil/major-arms-sales/taipei-economic-and-cultural-representative-office-united-states-tecro-foreign

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