Taiwan Media Reveals US Submarine Sale to Taiwan

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Last updated at: (Beijing Time) Friday, June 07, 2002

Taiwan Media Reveals US Submarine Sale to Taiwan

According to Taiwan media, with US decision to sell submarines to the island there has arisen a new trend, Taiwan can almost be assured of getting "American-made" German submarines.

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According to Taiwan media, with US decision to sell submarines to the island there has arisen a new trend, Taiwan can almost be assured of getting "American-made" German submarines.

Taiwan's China Times cited Taiwan's military sources that the US government has agreed its Northrop Grumman shipbuilding corp's negotiation on the types of submarines, contract, price and other matters with Taiwan, the US side will send personnel to Taiwan for negotiation as soon as possible.

America announced submarine sale to Taiwan last year, "the US submarine sale group" ever flew to Taiwan for meeting last September, both agreed on working out a 3-year plan.

The US invited capable builders to attend the meeting openly and choose submarine types, then will sign agreement with selected builders three years later.

According to Taiwan media's estimate, through six years' construction Taiwan navy is expected to get its first submarine purchase in 2010.

The US openly invited bids last October, American Northrop Grumman, GE and Holland, Spanish, Australian and German manufacturers participated in the bidding, rivals finally rest on Northrop Grumman and GE.

Not long ago, the US government sent letters, agreeing Northrop Grumman to negotiate submarine type, contract and price with Taiwan.

Although the two US companies compete for the deal, they have to cooperate with Germany or Holland as German, Holland governments have made clear that submarine technology export will not be allowed, thus delaying the deal for a time.

However, the US continues to manipulate the matter confidentially and is seeking "goods supply". Taiwan describes US action "as quiet as submarine".

Recently, news reports about submarine construction are rife. The first concerns US's One Equity Partners (OEP)'s acquisition of German HDW's 75% share. Next is HDW's decision to co-build small submarines with Italy's Fincanieri, then is European Commission's approval of US's purchase of HDW. The last one is about OEP's collaboration with Northrop Grumman, about Northrop Grumman's acquisition of HDW's 20% share.

Taiwan media pointed out that the series of matters seem to be favorable for Taiwan.

Nevertheless, after OEP purchased HDW's share, spokesperson of HDW said that no matter how the share will be transferred, HDW's export license will have to be finally issued by Germany. When HDW decided to collaborate with Italy, the spokesperson expressed that "the move has nothing to do with Taiwan". German chancellor also denied the deal and said that Germany will not sell submarines to Taiwan.

The series of reports are in a way disappointing Taiwan. So Taiwan media say "Taiwan's submarine dream is broken".

However, sources knowing about military sale revealed on June 4 that US decision to sell submarines to Taiwan is never shaken, the US will send personnel to Taiwan in August and let Taiwan make evaluation and decision.

By PD Online Staff Li Yan

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