Taiwan Government Information Service, TAIPEI: The cost of purchasing one submarine from the United States is estimated at US$657 million, the Ministry of National Defense (MND) said in a special report Monday.
The MND's assessment was contained in the report on the necessity of purchasing P-3C anti-submarine aircraft and submarines and a review on current military combat readiness, which was submitted to the National Defense Committee at the Legislative Yuan.
The report said that the ministry has yet to ascertain the type and price of its proposed submarine purchase, but if based on a 2,000-ton level and an independent price assessment supplied by the United States, the price for constructing a submarine for Taiwan will be around US$657 million, which though slightly higher than US$477 million for other nations, is still within a reasonable range.
The MND noted in the report that the purchase of submarines is different from other purchases. This is because the U.S. no longer constructs diesel-electric submarines, so the price cannot be ascertained due to a lack of clear targets and types. Except for the United States, no countries are willing to sell submarines to Taiwan due to political and diplomatic factors, the report noted, adding that the United States also has state-of-the art submarine construction technology.
To allay any misgivings about the submarine purchase, the MND said that it has coordinated with the U.S. to promote the procurement in two stages. In the first stage, the ministry hopes to appropriate NT$200 million (US$6.19 million), which will be funneled through a supplementary budget this year, so as to facilitate the U.S. to invite bidding, select a builder and ascertain the type and design of the submarines. In the second stage, the ministry hopes to appropriate the budget for constructing the submarines.
The ministry also said that more than 16 countries have used P-3C anti-submarine aircraft. Among them, Pakistan also procured eight P-3C aircraft. Taiwan's proposed purchase will not only have better performance, but will also be cheaper at around US$114 million, compared with Pakistan's US$121 million.
In view of the need to counter China's possible submarine blockade strategy, the MND hopes to list the proposed purchase of a squadron of 12 P-3C aircraft into the regular budget, which will be funded by a supplementary budget this year, instead of special budget as originally planned. The budget is estimated at NT$1.7 billion.
The report also said that the biggest threat from China to Taiwan at present is its strategic and cruise missiles.
The opposition-dominated legislature has blocked the MND's proposed arms procurement package, including a squadron of 12 anti-missile P-3C aircraft, six Patriot PAC-3 anti-missile batteries, and eight diesel-electric submarines from the United States, for nearly two years. The opposition's reasons range from the high price tag as well as its opposition to funding the procurement under a special budget.
The MND recently said it will refrain from discussing the purchase of Patriot PAC-3 batteries until next March, as a referendum held in tandem with the 2004 presidential election on the purchase of the missiles failed. The referendum law stipulates that an issue cannot be put to referendum again within three years of a previous referendum.
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