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The US-Taiwan Business Council Comments on the Proposed Sale of 18 MK-48 Mod6 Advanced Technology (AT) Heavy Weight Torpedoes (HWT) to Taiwan

The US-Taiwan Business Council today welcomed the announcement of a possible Foreign Military Sale of 18 MK-48 Mod6 Advanced Technology (AT) Heavy Weight Torpedoes (HWT) and related equipment to Taiwan. The Defense Security Cooperation Agency (DSCA) delivered the required certifications notifying Congress of the proposed arms sale on May 20, 2020.

The published Congressional Notification (transmittal number 20-07) is for a total value of approximately US$180 million. The notification includes 18 MK-48 Mod6 ATHWTs, as well as spare parts, support and test equipment, shipping and shipping containers, operator manuals, technical documentation, training, U.S. Government and contractor engineering, technical and logistics support services, and other related elements of logistics support.[1]

The US-Taiwan Business Council is encouraged by these Congressional notifications. Council President Rupert Hammond-Chambers said that “the return to regular arms sales has become a hallmark of the past several years. Taiwan’s commitment to growing its stock of munitions is important, and these MK-48 torpedoes will add to that stock. Taiwan’s balanced procurement priorities ensure that larger platforms – such as F-16s – are prioritized, while they are also tending to munitions stocks, life-cycle support, and services. It is the totality of all arms sales that helps Taiwan create a complete defense.”

Hammond-Chambers went on to say “The timing of the sale is also significant. Today, Tsai Ing-wen was sworn in to her second term as President of Taiwan. The United States, through this sale, is telegraphing that its support for Taiwan’s democracy isn’t just rhetorical – with positive statements on her inauguration coming from Secretary of State Pompeo. U.S. support is also material, as we maintain our commitment to providing Taiwan with weapons to deter the threat posed by the People’s Republic of China to Taiwan’s democratic way of life.”

[1] See the DSCA website at http://www.dsca.mil/major-arms-sales

https://www.us-taiwan.org/resources/ustbc-comments-on-sale-of-18-mk-48-mod6-advanced-technology-heavy-weight-torpedoes-to-taiwan/

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Taiwan in the National Defense Authorization Act (NDAA), 2020

Update, December 20, 2019

On this date, President Trump signed the National Defense Authorization Act for Fiscal Year 2020 into law (Public Law No: 116-92)

Update, December 19, 2019

On this date, Congress submitted the 2020 NDAA to the President for signature. The following Taiwan-related language was included in the final version of the bill:

Sec. 1260b. Report on Cybersecurity Activities with Taiwan

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the following:

(1) The feasibility of establishing a high-level, interagency United States-Taiwan working group for coordinating responses to emerging issues related to cybersecurity.
(2) A discussion of the Department of Defense’s current and future plans to engage with Taiwan in cybersecurity activities.
(3) A discussion of obstacles encountered in forming, executing, or implementing agreements with Taiwan for cybersecurity activities.
(4) Any other matters the Secretary of Defense determines should be included.

Sec. 1260c. Review and Report Related to the Taiwan Relations Act.

(a) REVIEW.—The Secretary of Defense, in coordination with the Secretary of State, shall conduct a review of—

(1) whether, and the means by which, as applicable, the Government of the People’s Republic of China or the Chinese Communist Party are affecting, including through military, economic, information, digital, diplomatic, or any other form of coercion—
(A) the security, or the social and economic system, of the people of Taiwan;
(B) the military balance of power between the People’s Republic of China and Taiwan; or
(C) the expectation that the future of Taiwan will continue to be determined by peaceful means; and
(2) the role of United States policy toward Taiwan with respect to the implementation of the 2017 National Security Strategy and the 2018 National Defense Strategy.

(b) REPORT.—

(1) IN GENERAL.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, in coordination with the Secretary of State, shall provide to the appropriate committees of Congress a report on the review under subsection (a).
(2) MATTERS TO BE INCLUDED. The report under paragraph (1) shall include the following:
(A) The assessments resulting from the review.
(B) Recommendations on legislative changes or Department of Defense or Department of State policy changes necessary to ensure that the United States continues to meets its obligations to Taiwan under the Taiwan Relations Act (22 U.S.C. 3301 et seq.) S. 1790—484
(C) Guidelines for—
(i) new defense requirements, including requirements relating to information and digital space;
(ii) exchanges between senior-level civilian and military officials of the United States and Taiwan; and
(iii) the regular transfer of defense articles, especially defense articles that are mobile, survivable, and cost effective, to most effectively deter attacks and support the asymmetric defense strategy of Taiwan.

(c) APPROPRIATE COMMITTEES OF CONGRESS DEFINED.—In this section, the term “appropriate committees of Congress” means— (1) the Committee on Armed Services and the Committee on Foreign Relations of the Senate; and (2) the Committee on Armed Services and the Committee on Foreign Affairs of the House of Representatives.

SEC. 1260D. Sense of Congress on Enhancement of the United States-Taiwan Defense Relationship.

It is the sense of Congress that—

(1) Taiwan is a vital partner of the United States and is critical to a free and open Indo-Pacific region;
(2) the Taiwan Relations Act (22 U.S.C. 3301 et seq.) and the “Six Assurances” are both cornerstones of United States relations with Taiwan;
(3) the United States should continue to strengthen defense and security cooperation with Taiwan to support the development of capable, ready, and modern defense forces necessary for Taiwan to maintain a sufficient self-defense capability;
(4) consistent with the Taiwan Relations Act (22 U.S.C. 3301 et seq.), the United States should strongly support the acquisition by Taiwan of defense articles and services through foreign military sales, direct commercial sales, and industrial cooperation, with an emphasis on anti-ship, coastal defense, anti-armor, air defense, defensive naval mining, and resilient command and control capabilities that support the asymmetric defense strategy of Taiwan;
(5) the President and Congress should determine the nature and quantity of such defense articles and services based solely upon their judgment of the needs of Taiwan, as required by the Taiwan Relations Act and in accordance with procedures established by law;
(6) the United States should continue efforts to improve the predictability of United States arms sales to Taiwan by ensuring timely review of and response to requests of Taiwan for defense articles and services;
(7) the Secretary of Defense should promote policies concerning exchanges that enhance the security of Taiwan, including—

(A) opportunities with Taiwan for practical training and military exercises that—
(i) enable Taiwan to maintain a sufficient self defense capability, as described in section 3(a) of the Taiwan Relations Act (22 U.S.C. 3302(a)); and
(ii) emphasize capabilities consistent with the asymmetric defense strategy of Taiwan; S. 1790—485
(B) exchanges between senior defense officials and general officers of the United States and Taiwan, consistent with the Taiwan Travel Act (Public Law 115–135), especially for the purpose of enhancing cooperation on defense planning and improving the interoperability of United States and Taiwan forces; and
(C) opportunities for exchanges between junior officers and senior enlisted personnel of the United States and Taiwan;

(8) the United States and Taiwan should expand cooperation in humanitarian assistance and disaster relief;
(9) the Secretary of Defense should consider options, including exercises and ship visits, as appropriate, to expand the scale and scope of humanitarian assistance and disaster response cooperation with Taiwan and other regional partners so as to improve disaster response planning and preparedness; and
(10) the Secretary of Defense should continue regular transits of United States Navy vessels through the Taiwan Strait, commend the armed forces of France for their April 6, 2019, legal transit of the Taiwan Strait, and encourage allies and partners to follow suit in conducting such transits, in order to demonstrate the commitment of the United States and its allies and partners to fly, sail, and operate anywhere international law allows.

SEC. 5513. Report on Efforts by People’s Republic Of China to Influence Election in Taiwan.

(a) REPORT.—

Consistent with section 3(c) of the Taiwan Relations Act (Public Law 96–8; 22 U.S.C. 3302(c)), and consistent with the protection of intelligence sources and methods, not later than 45 days after the date of the election for the President and Vice President of Taiwan in 2020, the Director of National Intelligence shall submit to the congressional intelligence committees, the Committee on Foreign Affairs of the House of Representatives, and the Committee on Foreign Relations of the Senate a report on any—
(1) influence operations conducted by China to interfere in or undermine such election; and
(2) efforts by the United States to disrupt such operations.

(b) ELEMENTS.—

The report under subsection (a) shall include the following:
(1) A description of any significant efforts by the intelligence community to coordinate technical and material support for Taiwan to identify, disrupt, and combat influence operations specified in subsection (a)(1).
(2) A description of any efforts by the United States Government to build the capacity of Taiwan to disrupt external efforts that degrade a free and fair election process.
(3) An assessment of whether and to what extent China conducted influence operations specified in subsection (a)(1), and, if such operations occurred—
(A) a comprehensive list of specific governmental and nongovernmental entities of China that were involved in supporting such operations and a description of the role of each such entity; and
(B) an identification of any tactics, techniques, and procedures used in such operations.

(c) FORM.—The report under subsection (a) shall be submitted in unclassified form, but may include a classified annex.

Update, December 17, 2019

On this date, the conference report, reconciling the House and Senate versions of the bill, was filed. The conference report was agreed to in the House on December 11, 2019 and in the Senate on December 17, 2019.

The conference report notes:

Report on cybersecurity activities with Taiwan (sec. 1260B)
The House amendment contained a provision (sec. 1250G) that would direct, not later than 180 days after the enactment of this Act, the Secretary of Defense to submit to the congressional defense committees a report on cybersecurity activities with Taiwan.

The Senate bill contained no similar provision.

The Senate recedes.

Review and report related to the Taiwan Relations Act (sec. 1260C)
The Senate bill contained a provision (sec. 6211) that would express the sense of the Congress concerning the Taiwan Relations Act (Public Law 96-8). The provision would also direct the Secretary of Defense, in coordination with the Secretary of State, to conduct a review of coercive behavior by the Government of the People’s Republic of China directed at Taiwan, as well as the role of United States policy toward Taiwan with respect to the implementation of the 2017 National Security Strategy and the 2018 National Defense Strategy. The provision would direct a report to be delivered to the appropriate committees of Congress on the results of the review.

The House amendment contained no similar provision.

The House recedes with an amendment that would make clarifying changes to the content of the required report.

Sense of Congress on enhancement of the United States-Taiwan defense relationship (sec. 1260D)
The Senate bill contained a provision (sec. 1257) that would express the sense of the Senate concerning the enhancement of the United States-Taiwan defense relationship.

The House amendment contained a similar provision (sec. 1248).

The House recedes with an amendment that would express the sense of the Congress that Taiwan is a vital partner of the United States, and that the United States should continue to strengthen defense and security cooperation in support of Taiwan maintaining a sufficient self-defense capability. In light of the fortieth anniversary of the Taiwan Relations Act (Public Law 96-8), the conferees encourage the Department of Defense to focus attention and resources on the future of the United States-Taiwan defense relationship, particularly in relation to implementation of the National Defense Strategy and strategic competition with China.

Implementation of the Asia Reassurance Initiative Act with regard to Taiwan arms sales
The Senate bill contained a provision (sec. 6212) that would, among other things, express the sense of the Congress that the United States should fully implement the provisions of the Asia Reassurance Initiative Act of 2018 (Public Law 115-409) with regard to regular defensive arms sales to Taiwan.

The House amendment contained no similar provision.

The Senate recedes.

The conferees note that the matter of arms sales to Taiwan is addressed elsewhere in this report.

Update, July 12, 2019

On this date, the U.S. House of Representatives passed its version of the National Defense Authorization Act for 2020 by Yea/Nay Vote of 220-197.  Several Taiwan-related initiatives were included. The bill now awaits reconciliation.

Update, June 27, 2019

On June 27, 2019, the U.S. Senate passed its version of the National Defense Authorization Act for 2020 by Yea/Nay Vote of 86-8.

The U.S. Senate adopted multiple provisions for enhancing the defense and security cooperation between the United States and Taiwan.

Update, June 11, 2019

The NDAA, as S.1790, was introduced in the U.S. Senate on June 11, 2019.

Update, May 2, 2019

The NDAA, as H.R.2500, was introduced in the House on May 2, 2019.

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Taiwan’s National Defense Organization (2019)

The organization chart for the Taiwan government's national defense command structure (2019).
The organization chart for the Taiwan government’s national defense command structure (2019).

Source:

Taiwan National Defense Report – 2019Download

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Taiwan Arms Sales Notified to Congress, 1990-2019

Chart: Taiwan Arms Sales 1990-2019
Chart: Taiwan Arms Sales 1990-2019
Chart: Taiwan Arms Sales 1990-2019 - # of Notifications
Chart: Taiwan Arms Sales 1990-2019 – # of Notifications

Updated Chart: Taiwan Arms Sales 1990-2019

Taiwan Arms Sales notified to Congress from 1990 to August, 2019. Foreign Military Sales (FMS) only, in US$ billion and by number of notifications.

August 28, 2019

Corrected total 2019 figures and updated the cited version of the Major U.S. Arms Sales report. With thanks to Shirley Kan. Also added a chart showing the number of FMS notifications by year.

Sources:

– FMS Data from the Defense Security Cooperation Agency at http://www.dsca.mil

– Kan, Shirley A., “Taiwan: Major U.S. Arms Sales Since 1990” Congressional Research Service Report RL30957, January 5, 2015

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The US-Taiwan Business Council Welcomes the Proposed Sale of 66 F-16 Block 70 Fighter Jets to Taiwan, an Arms Sale Years in the Making


The US-Taiwan Business Council (USTBC) today welcomed the announcement of a possible U.S. Foreign Military Sale of 66 F-16 Block 70 fighter jets to Taiwan for a total estimated value of US$8 billion. The Defense Security Cooperation Agency (DSCA) delivered the required certification notifying Congress of the proposed Taiwan sale on August 20, 2019.
 
The F-16 Block 70 is the most advanced variant of the F-16 Fighting Falcon multirole fighter. The F-16 Block 70 allows for improved interoperability, and integrates advanced capabilities including an Active Electronically Scanned Array (AESA) radar, a state of the art electronic warfare suite, and upgraded avionics.
 
Today’s Congressional Notification (transmittal number 19-50) included the 66 F-16 aircraft, 75 F110 General Electric Engines, 75 Link-16 Systems, 75 Improved Programmable Display Generators (iPDG), 75 APG-83 Active Electronically Scanned Array (AESA) Radars, 75 Modular Mission Computers 7000AH, 75 LN-260 Embedded GPS/INS, and 75 M61 Vulcan 20mm Guns. At a quantity of 75, each item comes with 9 spares.
 
The notification also included 138 LAU-129 Multipurpose Launchers, 18 of various FMU Fuze systems for Guided Bombs, 6 MK-82 Filled Inert Bombs for Guided Bombs, 3 KMU-572 Joint Direct Attack Munition (JDAM) Tail Kits, GBU-38/54, along with numerous other related equipment and logistics, program, and sustainment support.
 
This proposed arms sale will allow Taiwan to field a modern and capable fleet of fighter aircraft in sufficient numbers to meet the evolving military threat from China. Taiwan’s Air Force has indicated that it will increase the number of tactical fighter wings from seven to eight after receiving the new aircraft.
 
USTBC has spent more than a decade advocating for the United States to sell additional F-16s to Taiwan, publishing several reports on Taiwan’s need for new-build fighter jets. The 66 new F-16 Block 70s will help close the looming fighter gap by addressing both quantitative and qualitative challenges faced by the Taiwan Air Force, and the sale will significantly improve Taiwan’s air defenses.
 
Council President Rupert Hammond-Chambers commented that “the sale of F-16 Block 70 fighters is the most important arms sale to Taiwan since the 2001 commitments by the Bush Administration. The modernization of the fleet by these new planes has several significant benefits. 1) The consolidation of the Taiwan fighter force around a single platform, given Taiwan’s ongoing upgrade of its legacy F-16 fleet to the same variant. 2) The consummate reduction in operating and maintenance costs realized by simplifying the fighter fleet. 3) The reduction in the mean age of the fleet, which should raise the operational and availability rates for the overall Taiwan fighter force. 4) A platform that will significantly improve interoperability amongst Taiwan forces. 5) A bridge to potential future purchases of fifth-generation fighters like the F-35.”
 
Hammond-Chambers went on to say, “The policy significance of this sale should not be overlooked. For 20+ years the People’s Republic of China (PRC) has had an over-weighted role in U.S. deliberations around arms sales to Taiwan. That included the Bush Administration in 2006, when Taiwan’s original request for new F-16s was rejected over fears of the PRC’s response. Since then, the PRC has effectively limited – through threats and coercion – what the U.S. would consider for sale to Taiwan and the timeline for such sales. This approach immeasurably damaged Taiwan’s security, and negatively impacted the interests of the U.S. in Asia. The rejection of PRC coercion – along with rejecting its stated “red lines” over certain capabilities such as new F-16s – fully restores American security interests related to Taiwan arms sales, and removes PRC considerations from the ongoing development of American and Taiwan joint security interests.”

http://www.us-taiwan.org/pressrelease/2019august20congressionalnotificationf-16armssaletotaiwan.pdf

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The US-Taiwan Business Council Comments on the July 8, 2019 U.S. Arms Sales to Taiwan of M1A2 Abrams MBTs & Stinger Missiles

The US-Taiwan Business Council today welcomed the announcement of two possible Foreign Military Sales of M1A2 Abrams Main Battle Tanks (MBT), Stinger Missiles, and related equipment and support to Taiwan for a total estimated value of US$2 billion. The Defense Security Cooperation Agency (DSCA) delivered the required certifications notifying Congress of the proposed Taiwan arms sales on July 8, 2019.

The published Congressional Notifications (transmittal numbers 19-21 and 19-22) are for a total value of approximately US$2 billion, with the Stinger Missiles at an estimated cost of US$223.56 million.

The first notification includes 108 M1A2T Abrams Tanks; 14 M88A2 HERCULES Vehicles; 16 M1070A1 Heavy Equipment Transporters (HET); 338 M2 Chrysler Mount and M240 Machine Guns; a variety of munitions and other equipment and services; as well as program logistics and additional support. The second notification includes 250 Block I -92F MANPAD Stinger anti-aircraft missiles and 4 Block I -92F MANPAD Stinger Fly-to-Buy missiles, along with related equipment and support.

The 108 M1A2 Abrams MBTs appear destined for the 6th Army Corps’ two armored battalions stationed in northern Taiwan. The new tanks will replace some of Taiwan’s existing M60A3 Patton and CM-11 Brave Tiger tanks in service with the Taiwan Army, as part of a refresh of some of its older existing equipment.

The US-Taiwan Business Council is encouraged by these Congressional notifications. Despite initial concerns over the efficiency of the M1A2 Abrams platform on Taiwan’s coastal wetlands and in its mountains, the U.S. has provided the Taiwan military with the equipment it has requested, trusting to Taiwan war planners and military strategists to make their own determination of Taiwan’s needs.

Council President Rupert Hammond-Chambers said that “these tanks and missiles will provide the Taiwan army with a modern capability to deter and complicate the operational planning of the People’s Liberation Army (PLA) forces that coerce and threaten Taiwan. They will also offer new opportunities to engage in cooperation with the United States in both the deployment and operations phases, and to maximize the effectiveness of the equipment.”

Hammond-Chambers went on to say, “the Trump Administration recognizes that even at a time of higher tensions in the U.S.-China relationship, the U.S. providing material support for Taiwan’s ongoing force modernization should not be predicated on U.S.-China priorities. The Administration has made a commitment to regularize and normalize the arms sales process to Taiwan, and today’s announcement is a testament to that commitment. It is a sound and responsible policy that will maximize the deterrent nature of a modern, well-equipped Taiwan military capable of complicating and deterring any actions by the PLA.”

http://www.us-taiwan.org/pressrelease/2019july08congressionalnotificationsarmssalestotaiwan.pdf

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2019 – Military and Security Developments Involving the People’s Republic of China

The U.S. Department of Defense has released its annual report to Congress on the military power of China.

Reorganizing for Operations along China’s Periphery

China’s overall strategy toward Taiwan continues to incorporate elements of both persuasion and coercion to hinder the development of political attitudes in Taiwan favoring independence. Taiwan lost three additional diplomatic partners in 2018, and some international fora continued to deny the participation of representatives from Taiwan. Although China advocates for peaceful unification with Taiwan, China has never renounced the use of military force, and continues to develop and deploy advanced military capabilities needed for a potential military campaign.

Military Strategy and Doctrine

Taiwan persistently remains the PLA’s main “strategic direction,” one of the geographic areas the leadership identifies as having strategic importance, in authoritative military publications. Other strategic directions include the East China Sea, the South China Sea, and China’s borders with India and North Korea. PLA reforms have oriented each new theater command toward a specific strategic direction.

China’s Strategy and Capabilities Development in the Taiwan Strait

China appears prepared to defer the use of military force as long as it believes that unification with Taiwan over the long-term remains possible and the costs of conflict outweigh the benefits. China argues the credible threat of force is essential to maintain the conditions for political progress and prevent Taiwan from making moves toward independence.

For decades, China has refused to renounce the use of force to resolve the Taiwan issue. Simultaneously, China’s leaders proclaim their desire for peaceful unification under the principle of “one country, two systems,” as emphasized in President Xi Jinping’s addresses opening the CCP’s 19th Party Congress.

The circumstances under which the mainland has historically warned it would use force have evolved over time. These circumstances have included:

  • Formal declaration of Taiwan independence
  • Undefined moves toward Taiwan independence
  • Internal unrest in Taiwan
  • Taiwan’s acquisition of nuclear weapons
  • Indefinite delays in the resumption of
    cross-Strait dialogue on unification
  • Foreign intervention in Taiwan’s internal
    affairs and
  • Foreign forces stationed on Taiwan.

Key Takeaways

Key takeaways listed in the report include:

  • The Eastern Theater Command is oriented toward Taiwan and the East China Sea.
  • Relations between China and Taiwan remained cool through 2018.
  • Bowing to Chinese pressure, the Dominican Republic, Burkina Faso, and El Salvador switched diplomatic relations from Taipei to Beijing.
  • The PLA continued Taiwan Strait contingency preparations.
  • Although China advocates for peaceful unification with Taiwan, China has never renounced the use of military force; the circumstances under which China has historically warned it would use force remain ambiguous and have evolved over time.
  • China has an array of options for a Taiwan campaign, ranging from an air and maritime blockade to a full-scale amphibious invasion to seize and occupy some or all of Taiwan or its offshore islands.
  • PLA services and support forces continue to improve training and acquire new capabilities for a Taiwan contingency, but there is no indication China is significantly expanding its landing ship force necessary for an amphibious assault on Taiwan.
  • Taiwan’s advantages continue to decline as China’s modernization efforts continue.
  • To counter China’s improving capabilities,Taiwan is developing new concepts and capabilities for asymmetric warfare.

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The US-Taiwan Business Council Comments on the April 15, 2019 U.S. Arms Sale to Taiwan

The US-Taiwan Business Council Comments on the Proposed Foreign Military Sale to Taiwan of F-16 Pilot Training & Maintenance/Logistics Support

The US-Taiwan Business Council today welcomed the announcement of a possible Foreign Military Sale of F-16 Pilot Training and Maintenance/Logistics Support to Taiwan at an estimated cost of US$500 million. The Defense Security Cooperation Agency (DSCA) delivered the required certifications notifying Congress of the proposed Taiwan arms sale on April 15, 2019.

The published Congressional Notification (transmittal number 19-11) is for the continuation of a pilot training program and maintenance/logistics support for F-16 aircraft currently at Luke Air Force Base, Arizona, to include flight training; participation in approved training exercises; inert/dummy training munitions; supply and maintenance support; spares and repair parts; support equipment; program management; publications; documentation; personnel training and training equipment; fuel and fueling services; engineering, technical, and logistics support services; and other related elements of program and logistical support necessary to sustain a long-term CONUS training program.[1]

Council President Rupert Hammond-Chambers noted that “the announcement of an arms sale today, the ongoing pilot training, maintenance and logistics of Taiwan’s F-16 aircraft at Luke Air Force Base, is a timely reminder of the ongoing relevance of the Taiwan Relations Act which is being celebrated for its 40th anniversary this week. The Trump Administration is continuing to provide timely and regular arms sales in support of Taiwan’s ongoing military readiness.“

[1] See the DSCA website at http://www.dsca.mil/major-arms-sales

https://www.dsca.mil/major-arms-sales/taipei-economic-and-cultural-representative-office-united-states-tecro-conus-based 

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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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