China

Solutions surface for Taiwan sub deal
By David Isenberg

A recent flurry of events is making Taiwan's acquisition of eight diesel-electric submarines, as promised last year by US President George W Bush, more likely.

According to a briefing by a Taiwanese naval officer in June, the military has compiled a budget for the purchase of the eight submarines from the United States. Currently, four Kidd-class destroyers and submarines in the advanced operation plan are included in next year's budget. However, because the type of submarine is not decided, no temporary special budget is needed.

Meanwhile, the Republic of China (ROC) Navy is planning to build a "subterranean submarine base" for its new subs. Different design plans, including providing covering hoods to the submarines or carving docking places out of granite cliffs for the submarines, have been advanced to prevent the subs from being photographed by reconnaissance satellites after they go into service.

The Taiwanese navy agreed to make a decision on what type of submarines and contractors it wants within 18 months, during closed-door discussions with a team of US experts July 23-25. Gibson LeBoeuf, deputy chief of the US Navy's international program department, led the US team. The officials were still focusing on the project's first phase: working out a strategy for getting the subs built and setting a budget. A Team Diesel Submarine group currently in Taipei was set up last September to clarify the situation, according to a report in Jane's Defence Weekly.

During the recent negotiations, the US side asked Taiwan to select the types of submarines and related weaponry systems it wanted to acquire so that it could bring the data back to the United States for assessment. Reportedly, the US delegation asked Taiwan "to specify its options on items including the type of submarine to purchase, its fighting system, power and torpedo".

The United States has not built conventional submarines for more than 40 years and designing an entirely new one would be prohibitively expensive. Therefore, the most likely solution would involve foreign participation. Taiwan agreed to choose from submarines already in service in other countries. The key factor in the deal will be getting an export license from the country that owns the intellectual property rights of the submarine.

As it will take about three years to complete discussions on the deal and about another five years to build the submarines the ROC Navy will not obtain the newly designed submarines, which will cost about NT$150 billion (US$4.4 billion) each, until after 2010.

Military sources have said Taiwan's navy favors Germany's 209-class submarines or Dutch-designed Moray submarines. Both countries have said they would not get involved in arms sales to the island, which Beijing regards as part of its territory to be unified with the mainland by force if necessary.

Germany denied it had opened the door to exporting state-of-the-art conventional submarines to Taiwan by allowing a US investor to buy a German shipyard that makes them. A Chicago-based investment company, One Equity Partners, took a 75 percent stake in Howaldtswerke Deutsche Werft (HDW), a German submarine producer.

Military analysts believe Washington could try to bypass the hurdle by having the warships built in the United States but using foreign designs. Two giant US defense contractors, Northrop Grumman Corp and General Dynamic Corp, are interested in the deal, which could keep thousands of US workers busy for about a decade.

The US team also advised the Taiwanese navy that the German-built Dolphin-class submarines now serving the Israeli navy could be taken into consideration. Indeed, Antonio Chiang, deputy chief of the Taiwan National Security Council, reportedly inspected one on a clandestine trip to Israel.

According to a recent report in Defense & Foreign Affairs Daily, it appears that Germany will work with the United States to provide eight Israeli-designed, German-built Dolphin-class conventional submarines to the ROC Navy. Also Israel would, as part of the deal, sell its three retired Gal-class SSKs - precursors to the Dolphin class - to Taiwan. While the sale of the Gals would not give Taiwan much additional capability, it would familiarize the ROC Navy with some of the Israeli technology, systems and methods that would be found on the new Dolphins to be built in Germany.

Also, at a recent Ministry of National Defense news conference, Rear Admiral Tung Hsiang-lung, director of the ROC Navy's Bureau of Plans, said that the state-run China Shipbuilding Corp (CSBC) had not been excluded from the list of defense contractors that the navy seeks to cooperate with.

"The navy strongly supports CSBC's bid to build part of the eight submarines, since it is the government's policy to promote the indigenous defense industry," he said. For China Shipbuilding, a chance to build submarines would be just the thing to ensure that a company that has turned a profit in only four of the past 20 years stays in business (see Taiwan shipbuilder given two years to turn around , Aug 9).

Tung indicated that to reduce risks to the plan and the budget, the navy would promote an overall plan with separate years and separate phases, and proceed in two phases, a "preliminary planning phase" and a "construction phase". The preliminary planning phase will focus on soliciting and selecting a supplier. This effort will include the US Navy completing and issuing a solicitation document. Firms that bid must also submit documentation such as intellectual property rights of the operations group and the possibility of export permits. It is estimated that this could be accomplished in a year and a half, if all goes smoothly.

(©2002 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)

 
Aug 10, 2002



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