Chinese economic pressure, US DIA report, Javelin missile contract. (Feb 25/10)

Despite China’s military buildup across the strait, key weapons sales of P-3 maritime patrol aircraft, Patriot PAC-3 missiles, and diesel-electric submarines to Taiwan have been sabotaged by Taiwanese politics for years – in some cases, since 1997. The KMT party’s flip-flops and determined stalling tactics eventually created a crisis in US-Taiwan relations, which finally soured to the point that the USA refused a Taiwanese request for F-16C/D aircraft.

That seems to have brought things to a head. Most of the budget and political issues were eventually sorted out, and after a long delay, some major elements of Taiwan’s requested modernization program appear to be moving forward: P-3 maritime patrol aircraft, Patriot missile upgrades; and requests for AH-64D attack helicopters, UH-60M Black Hawks helicopters, E-2 AWACS planes, minehunting ships, and missiles for defense against aircraft, ships, and tanks. These are must-have capabilities when facing a Chinese government that has vowed to take the country by force, and which is building an extensive submarine fleet, a large array of ballistic missiles, an upgraded fighter fleet, and a number of amphibious-capable divisions. Chinese pressure continues to stall some of Taiwan’s important upgrades, including diesel-electric submarines and American fighter jets. Meanwhile, other purchases continue…

Stalled Sales

Word is that the USA has asked Taiwan to hold off on the F-16 request for now to avoid a direct “no.” Reports suggest that a strong lobbying effort from China is dooming that effort, even as the PLAAF continues to add aircraft like the 4+ generation J-10 and equally advanced long-range SU-27 family fighters to its arsenal.

Chinese diplomacy has certainly stalled the much more complicated effort to find a party who is (a) able to make diesel-electric subs; and (b) is willing to sell them to Taiwan. The Republic of China currently relies on 2 submarines that are too old for anything but training missions, and 2 Hai Lung (Sea dragon) class submarines ordered from the Dutch firm Rotterdamsche Droogdok Maatschappij (RDM) in 1981 as a derivative of their Zwaardvis (Swordfish) class. A follow-on order for 4 more was blocked by the Dutch government in 1992 thanks to Chinese pressure, and RDM went out of business a few years later. Since then, Taiwan has explored a number of alternatives to obtain diesel-electric submarines, thus far without success.

Can these release and approval of existing orders help break the F-16 logjam eventually? Can the broader US-Taiwan defense relationship be saved, or is it eroding fatally? Those are questions for the future. This Spotlight article will focus on the here-and-now instead, chronicling key developments and purchases as they arise.

Contracts & Key Events

DSCA references to “the Taipei Economic and Cultural Representative Office in the United States” are diplomaticspeak for “Taiwan” or “Republic of China”; DID uses the conventional term instead. Note that DSCA requests are not contracts; those are separate announcements, and it sometimes happens that years pass between the two events. Having said this, a DSCA request does open the door to contracts as permitted weapons exports, unless Congress moves to block the proposed sale within 30 days.

Feb 25/10: Lockheed Martin Corp. in Orlando, FL received a $21 million firm-fixed-price contract for FY 2009-2011 hardware production of Javelin anti-tank missile systems to Taiwan.

Javelin is a joint venture between Raytheon and Lockheed Martin. Work is to be performed in Tucson, AZ (50%, Raytheon), and Orlando, FL (50%, LM), with an estimated completion date of Jan 17/11. One bid was solicited with one bid received by Aviation & Missile Command Contracting Command, CCAM-TM-H in Redstone Arsenal, AL (W31P4Q-09-C-0376). See also Oct 3/08 entry.

Feb 22/10: The Associated Press receives a US Defense Intelligence Agency report (DIA-02-1001-028) that supposedly says Taiwan’s air force is not ready to withstand an attack from China. While the Taiwanese have 400 combat aircraft to serve in various roles, “far fewer of these are operationally capable.” The F-5 fleet is near the end of its combat life, and its F-16A/B Block 20s need upgrades. Its Mirage 2000v5s are the most advanced in the fleet, but they are so expensive to maintain, and have had such chronic difficulties with the aircraft’s turbine fan blades, that Taiwan is considering retiring them.

That’s significant for Taiwan’s F-16 request, because under the 1979 Taiwan Relations Act, decisions on Taiwan’s weapon requests must be “based solely” on judgments concerning Taiwan’s defense needs, without other political considerations. AP | Defense News | Reuters

Feb 11/10: Democratic Progressive Party lawmaker Kuan Bi-ling alleges, and the Fisheries Agency confirms, that Chinese pressure on Indonesia has led to a government-recommended boycott of fishing vessels made in Taiwan. The economic impact is estimated at NT$ 100 million per year. The move is not a military move, but it does have some military implications. It’s both a protectionist strike in favor of China’s growing shipbuilding sector, and a way of weakening Taiwan’s breadth of expertise in that area. Taiwan News.

Feb 3/10: Taiwan is spending $112 million for 3 of Eurocopters’s EC225 Super Puma MkII+ helicopters in search and rescue (SAR) configuration, with an option for up to 17 more machines.

The order is carefully calculated, and the ROC government says the helicopters are for civilian use. The choice of helicopter is also careful, as China’s own Ministry of Communications already operates 2 EC225s for SAR duties, as does Japan’s Coast Guard to the east. On the other hand, EC225s could be converted to medium military helicopters quite quickly – a point that has been brought up before over Eurocopter’s EC175/ Z-15 and Z-9 joint ventures in China. France uses the military EC725 for SEA and Special Forces duties, and Mexico and Brazil have also ordered it. To this point, China has been silent concerning this order. Taiwan News | Defense News | DNA India | The Guardian, UK | Reuters.

Jan 31/10: eTaiwan News quotes Premier Wu Den-yih, who says that Taiwan and the U.S. are still discussing F-16s and diesel-electric submarines:

“The premier also told reporters that the government would calculate if the cost of the package announced by the U.S. was not too high. The weapons had to come at a reasonable price for a useful quality level, he said. Wu said discussions on the F-16 jets were most likely to bear fruit, while the price tag for the submarines was “scary.” ....Opposition Democratic Progressive Party (DPP) Chairwoman Tsai Ing-wen said yesterday that Taiwan’s success in achieving the arms purchase was the result of hard work by the previous DPP administration.”

Jan 29/10: The US DSCA anounces up to $6.45 billion in official requests to recapitalize Taiwan’s battlefield helicopter fleet with 60 UH-60Ms, complete the upgrade of its Patriot missile system to PAC-3 status with missiles and command facilities, add Link-16 capability to key assets, purchase 2 Osprey Class minehunter ships, and buy 12 Harpoon Block II test missiles.

In response, the Chinese embassy in Washington, D.C., released a statement condemning the move, and there are reports that China will cut off military-to-military cooperation with the US, boycott Obama’s planned nuclear summit in April 2010, and even levy trade sanctions. As media like the UK ’s Financial Times point out, however, growing protectionist sentiment in the USA makes trade sanctions against American firms an extremely risky move for the Chinese. China Post | Radio Taiwan International | Taiwan News | Taiwan Today | AllGov | The Australian | BBC News | UK’s Financial Times re: China’s risks | New York Times | Reuters | Times of India | Wall Street Journal | Voice of America | China Daily | China’s Xinhua | China’s Xinhua re: sanctions. See also Taiwan News: “The shadow over Taiwan’s arms procurement.”

UH-60M Black Hawks. The US DSCA announces [PDF] Taiwan’s official request for up to 60 UH-60M Black Hawk helicopters to replace its aged UH-1H Huey fleet, at an estimated cost is $3.1 billion. The principal contractors will be United Technologies’ subsidiary Sikorsky Aircraft in Stratford, CT (UH-60M), and General Electric Aircraft Engines in Lynn, MA. The DSCA adds that:

“The purchaser has requested offsets; however, at this time they are undetermined and will be defined in negotiations between the purchaser and contractors.”

Specific equipment sought includes:

• 60 UH-60M Black Hawk helicopters
• 120 T-700-GE-701D engines installed
• 18 spare T-700-GE-701D engines
• 69 AN/APR-39Av2 Radar Warning Receivers
• 69 AN/ALQ-144Av1 Infrared Countermeasure Sets
• 69 AN/AAR-57 Common Missile Warning Systems
• 69 AN/AVR-2B Laser Detecting Sets
• 120 GAU-19/A .50 cal Machine Gun Systems
• 310 AN/AVS-9 Aviator Night Vision Goggles.
• Associated .50 cal ammunition, pyrotechnics, cartridges and propellant actuated devices, to equip the guns and countermeasures systems.
• Plus “other explosives including devices,” Po-Sheng Communication/Data Link Systems, ammunition, spare and repair parts, tools and support equipment, publications and technical data, personnel training and training equipment, and other support.

Taiwan doesn’t operate Black Hawks yet, but its Navy operates S-70C Seahawk helicopters, so it has some experience with the general type. Implementation of this proposed sale may require the assignment of 2 contractor representatives for a period of up to 2 years.

MIDS-LVT/ Link 16: The US DSCA announces [PDF] Taiwan’s official request to buy 35 Multifunctional Information Distribution Systems Low Volume Terminals (MIDS/LVT-1), 25 MIDS On Ships Terminals, plus spare and repair parts, support and test equipment, training personnel training and training equipment, repair and return, software and hardware updates, publications and technical documentation, and U.S. Government and contractor engineering and support services. The estimated cost is $340 million.

This may seem like an afterthought, but it’s actually a critical contract. MIDS-LVT terminals are a standardized way of embedding “Link 16” datalinks into ships, aircraft, and land systems. By transmitting encrypted information to each other and filtering out duplications, Link 16 allows participating platforms to see the same tactical picture – what one sees, all can see. This dramatically improves awareness amidst the inevitable “fog of war” , and can help to minimize friendly fire incidents. LVT-1 terminals are used in aircraft, as well as ground units like Patriot missile systems. They include both Tactical Air Navigation System, and voice capabilities.

The prime contractor will be selected through a competitive procurement conducted by the U.S. Government, involving ViaSat and the BAE Systems/ Rockwell Collins joint venture Data Link Solutions. Implementation of this proposed sale will require multiple trips involving U.S. Government and contractor representatives to participate in training, program management, and technical reviews.

Osprey Class minehunters The US DSCA announces [PDF] Taiwan’s official request to buy 2 Osprey Class coastal mine-hunting ships, including refurbishment and upgrade, overhaul of their AN/SQQ-32 sonars, transportation, support and test equipment, spare and repair parts, publications and technical documentation, personnel training and training equipment, and U.S. Government and contractor support. The estimated cost is $105 million.

The USA’s 12 Osprey Class mine-hunters were built from 1993-1999 out of fiberglass-reinforced plastics, in order to minimize their magnetic signature. These 804t/ 57m vessels locate mines using the high definition SQQ-32 sonar, then neutralize them using a remotely controlled UUV. Despite continued threats in critical global areas like the Strait of Hormuz, and adequate performance, the Osprey Class was taken out of US Navy service in 2006-2007. Taiwan would join Egypt (2), Greece (2), Lithuania (2), and Turkey (2) as customers for these second-hand vessels. Approval for the transfer of Oriole [MHC-55] and Falcon [MHC-59] was authorized back in the Consolidated Natural Resources Act of 2008 (Public Law 110-229), but the US State Department had dithered over the request (q.v. Nov 18/09 entry).

For this contract, a U.S. Prime contractor for the refurbishment will be chosen after a competitive source selection. Implementation of this sale will not require the assignment of any additional U.S. Government personnel or contractor representatives.

Harpoon Block II missiles. The US DSCA announces [PDF] Taiwan’s official request for 12 “Harpoon Block II Telemetry” missiles. The DSCA release cites 10 “RTM-84L” and 2 “ATM-84L” missiles, which have telemetry payloads for missile tests, instead of the warheads found on standard RGM-84 (ship-launched) and AGM-84 (air-launched) variants. In addition to the missiles, Taiwan would receive containers; training devices; spare and repair parts; supply/technical support; support equipment; personnel training and training equipment; technical data and publications; and U.S. Government and contractor support.

The estimated cost is $37 million, the prime contractor will be Boeing subsidiary McDonnell Douglas in St. Louis, Missouri, and implementation of this sale will not require any additional U.S. Government personnel or contractor representatives.

The Harpoon Block II could be militarily significant, because its GPS guidance and improved clutter resolution allow it to attack land targets, as well as ships. See also the Oct 3/08 entry, requesting submarine-launched Block II missiles. Taiwan is building its own “HF-2E Hsiung Feng” land attack cruise missiles with much longer ranges, however, so the Block II’s land-attack capability would not be a new military development in the region.

Patriot Missiles & C2. The US DSCA announces [PDF] Taiwan’s official request to complete its Patriot upgrade plans, adding PAC-3 missiles and additional command equipment.

• 114 PATRIOT Advanced Capability (PAC-3) missiles
• 26 M902 Launching Stations
• 3 AN/MPQ-65 Radar Sets
• 1 AN/MSQ-133 Information and Coordination Center
• 1 Tactical Command Station
• 3 AN/MSQ-132 Engagement Control Stations
• 3 Communication Relay Groups
• 5 Antenna Mast Groups
• 1 Electronic Power Plant III (EPP)
• Plus battery and battalion maintenance equipment, prime movers, generators, electrical power units, trailers, communication equipment
• Also personnel training and equipment, tool and test sets, spare and repair parts, publications and technical documentation, Quality Assurance Team support services, and U.S. Government and contractor support.

The estimated cost is $2.81 billion, and the principal contractors will be Raytheon Corporation in Andover, MA, and Lockheed-Martin in Dallas, TX. “The recipient, which already has PAC-3 missiles in its inventory, will have no difficulty absorbing these missiles…. Implementation of this proposed sale will not require the assignment of any additional U.S. Government and contractor representatives.”
See also Dec 23/09, Oct 16/09, Jan 26/09, and Oct 3/08 entries.

Jan 4/10: E-2s. Northrop Grumman Systems Corp. in Bethpage, N.Y., received a $6 million firm-fixed-price, cost-plus-fixed-fee delivery order against a previously issued basic ordering agreement to provided engineering, technical and sustaining services in support of Taiwan’s 6 E-2T Hawkeye airborne early warning aircraft. Work will be performed in Bethpage, NY (75%), and at Pingtung Air Force Base, Taiwan (25%), and is expected to be complete in January 2011. The Naval Air Systems Command in Patuxent River, MD manages this contract (N00421-05-G-0001).

Jan 14/10: P-3Cs. Since the P-3 production line isn’t active any more, all 12 of the mothballed P-3s slated for Taiwan had to come from stored US Navy aircraft at AMARG’s “boneyard” near Davis-Monthan AFB, Tucson, AZ. The problem is that all 12 were labeled “non-flyable” due to structural fatigue, which made the 2,000 mile trip to Lockheed Martin’s refurbishment and re-winging facility in Greenville, SC, a bit of a challenge.

After considering and rejecting rail transport due to offloading and re-loading risks, the AMARG team decided to use a flatbed truck. That’s an unusual method, but it worked. Their approach has stirred interest from other P-3 operators, and even US federal government agencies. Read “Delivering Your Plane, By Truck” for more.

Jan 10/10: Reports surface that Taiwan plans to buy 8 FFG-7 Oliver Hazard Perry Class frigates from the USA, then outfit them with more advanced systems. Australia has already laid down a blueprint for that kind of modernization, adding SM-2 Standard and RIM-162 ESSM anti-aircraft missiles to their FFG-7 Adelaide Class frigates at great expense. But reports in the Taipei-based China Times speak of refitting the frigates with an AEGIS combat and radar system. That would break new technical ground, and may prove difficult to add, given the FFG-7 ships’ limited “growth space.” Agence France Presse | Information Dissemination.

Jan 3/10: The Washington Post adds fuel to speculation that approval of additional equipment sales for Taiwan – but not F-16s – is imminent:

“The Obama administration is expected to approve the sale of several billion dollars in Black Hawk helicopters and anti-missile batteries to Taiwan early this year, possibly accompanied by a plan gauging design and manufacturing capacity for diesel-powered submarines for the island…”

Taiwanese Patriot batteries already exist, of course, and their expansion contract is a done deal as of late December 2009. The next step is exporting the PAC-3 missiles themselves. Washignton Post | Radio Taiwan.

Dec 23/09: Patriot SAM. Raytheon announces Foreign Military Sales contract awards totaling $1.1 billion to fund new production of Patriot Air and Missile Defense System for Taiwan. The awards include ground-system hardware through an initial contract valued at $965.6 million, and an initial spares contract valued at $134.4 million.

See the Oct 3/08 DSCA release; this is the contract for the radars, ground stations, and other ancillary equipment besides the missiles themselves. The U.S. Army Aviation and Missile Command in Redstone Arsenal, AL manages this contract for new-production Patriot fire units, which will include new advances in technology, improved man-machine interfaces, and (hopefully) reduced life-cycle costs over earlier generations.

Dec 10-13/09: Reports surface that Taiwan will not get its F-16s approved, but will get its purchase of UH-60s approved. The reports add that a 3-way sale would let Taiwan buy U214 submarines from ThyssenKrupp Marine Systems’ HDW subsidiary. Radio Taiwan International | Taiwan Today.

Nov 18/09: Rep. Ileana Ross Lehtinen [R-FL] introduces co-sponsored bill H.R. 4102. The bill cites key provisions of the 1979 Taiwan Relations Act that are not being followed, including the stipulation that weapon requests be “based solely” on judgments concerning Taiwan’s defense needs, without other political considerations. It also cites Taiwan’s expressed desire for F-16 C/D fighters, and the lack of any arms transfer notifications to Congress for Taiwan during calendar year 2009 – despite Taiwan’s expressed desire for F-16s, H-60 Blackhawk helicopters, diesel submarine design, and additional Patriot PAC-3 systems. Nor have the Osprey class minehunter coastal ships Oriole [MHC-55] and Falcon [MHC-59] been transferred, even though Congress authorized the sale of these ships in the Consolidated Natural Resources Act of 2008 (Public Law 110-229).

The bill is essentially a Congressional freedom of information request, requiring reports 90 days after enactment and at least annually thereafter, so that Congress is aware of any discussions conducted between any executive branch agency and the Government of Taiwan during the covered period; and any potential transfer of defense articles or defense services to the Government of Taiwan. This would prevent unelected agencies from using their refusal to present requests to Congress as a way to keep such sales off of the political agenda.

The bill has been referred to the House Committee on Foreign Affairs; if it is not killed by that committee, it would proceed to a floor vote. See Taiwan Today | Bill tracking via GovTrack.

Oct 16/09: Patriot SAM. Raytheon in Andover, MA receives a $77.9 million firm-fixed-price contract for Taiwan’s Patriot hardware upgrade program. Work is to be performed in Andover, MA (8%), and Burlington, MA (15%), with an estimated completion date of June 30/15. One bid was solicited with one bid received (W31P4Q-09-G-0001).

See also the Jan 26/09 and April 23/08 entries, below.

July 21/09: E-2s. Northrop Grumman Systems Corp. in Bethpage, NY receives an unfinalized $154.1 million contract to upgrade Taiwan’s 6 E-2C Hawkeye AWACS aircraft from Group II configuration to the more advanced Hawkeye 2000 (H2K) export configuration. See Oct 3/08 entries for more details.

Work will be performed in Bethpage, NY (40%); St. Augustine, FL (22%); Rolling Meadows, IL (6%); Dayton, OH (6%); Windsor Locks, CT (5%); Greenlawn, NY (4%); Mississauga, Canada (4%); Marlboro, MA (4%); and other various locations throughout the United States (9%); and is expected to be complete in June 2013. As Northrop Grumman is the E-2’s manufacturer, this contract was not competitively procured by the Naval Air Systems Command in Patuxent River, MD (N00019-09-C-0040).

June 30/09: F-16s. A Flight International article says that Taiwan may see progress regarding its F-16 orders:

“Taiwan’s plans to buy new Lockheed Martin F-16C/D fighters appear to be gaining some traction, with the outgoing de-facto US ambassador to the island saying that senior officials in Washington are likely to consider the issue shortly…. Taiwan’s defence minister Chen Chao Min said this week that, contrary to media reports, Washington had not asked Taipei to choose between upgrades to its existing F-16A/Bs and new F-16C/Ds. Requests for mid-life upgrades for the F-16A/Bs and the new fighters are proceeding in tandem, he added.”

June 25/09: Stinger SAMs for AH-64s. Raytheon Missile Systems in Tucson, AZ receives a $45.4 million firm-fixed-price contract from Taiwan for 171 FIM-92 Stinger anti-aircraft missiles, 24 Captive Flight Trainers (CFT) with seekers but no rocket motors, 68 Air to Air Launchers (ATAL), 7 Launcher Circuit Evaluators, 2 Digital Launcher Test Sets (DLTS), 60 Coolant Reservoir Assemblies, 3 Launcher Emulators, one Lot of CFT Spares, one Lot of ATAL Spares, and one Lot of DLTS Spares.

The missiles will equip Taiwan’s 30 requested AH-64D Block III Apache attack helicopters; see also Oct 3/08 entries.

Work is to be performed in Tucson, AZ with an estimated completion date of July 31/12. One bid was solicited, with one bid received by the US Aviation & Missile Command Contracting Center at Redstone Arsenal, AlL (W31P4Q-09-C-0520).

March 16/09: Taiwan’s Defense Ministry announces its defense review, including plan to cut its troop numbers by 60,000, and end the standard 12 months of compulsory military service within 5 years. This will leave the island with 215,000 troops.

The review adds that China currently has has at least 1,300 ballistic missiles pointed at Taiwan, and has deployed advanced Russian-made SU-27 and SU-30 fighters near the island. Defense News.

March 16/09: F-16s. Taiwan News reports that the country intends to continue pursuing F-16 fighters. The country does not have a formal embassy in the USA, but the Taipei Economic and Cultural Representative Office (TECRO) serves the same functions. TERCO spokesman Vance Chang responded to media requests by noting that the F-5E/F fighters that make up most of the country’s air force have been in service for more than 34 years.

“The planes now are obsolete and spare parts are difficult to obtain…. [given China’s ongoing modernization] our air superiority capability is at a serious disadvantage.”

The U.S.-Taiwan Business Council represents about 100 companies, including Lockheed Martin. The organization’s president, Rupert Hammond-Chambers, adds that under the terms of the Taiwan Relations Act, the USA “has an obligation to assist Taiwan to maintain a credible defense of its air space, which includes modern fighters.” This would explain a July 2008 US Navy PACOM evaluation that deemed the F-16s militarily unnecessary, a silly position on its face but explicable if one begins from the desired political result.

March 13/09: P-3 MPAs. Lockheed Martin Maritime Systems and Sensors Tactical Systems in St. Paul, MN receives a $665.6 million firm-fixed-price contract for the procurement of phased depot maintenance, structural service life extension, and avionics modification to refurbish and sell 12 P-3C maritime patrol aircraft to the government of Taiwan. This contract also provides for ground handling, support equipment and publications.

Work will be performed in St. Paul, MN (50%); Greensville, SC (27%) and Marietta, GA (23%), and is expected to be complete in August 2015. This contract was not competitively procured, and is managed by the Naval Air Systems Command in Patuxent River, MD (N00019-09-C-0031).

See also the Sept 12/07 DSCA request.

March 11/09: F-16s. Taiwan’s speaker is quoted as saying that the US has refused to sell Taiwan 66 more F-16s for about $5 billion, in order to augment and modernize the Republic of China’s fighter defense fleet. Wang Jin-pyng was quoted as saying that:

“The U.S. doesn’t want to give them to us…. They wouldn’t name a price. It’s mainly because mainland China would oppose the sale.”

See: Taiwan News | Reuters | Washington Post.

Feb 23/09: P-3 MPAs. Defense News reports that Taiwan, the U.S. Navy and Lockheed Martin have finally settled issues over price and offset options, and are to soon sign a $1.3 billion contract to refurbish and supply 12 P-3C Orion maritime patrol aircraft. Taiwan had traditionally been opposed to buying refurbished aircraft taken from AMARC in Arizona, but re-starting the P-3C production line was not a realistic option. Lockheed Martin has re-started a production line to re-wing existing P-3Cs, however, and countries like Norway, Canada, and even the US Navy have been taking advantage of that capability to extend the service lives of existing aircraft.

Delivery of the P-3s would end the career of Taiwan’s 37 ancient S-2T Trackers, which are reportedly down to just 3 operational aircraft, even as China’s own submarine fleet grows by leaps and bounds.

Jan 26/09: Patriot SAM. Raytheon announces a $154 million Foreign Military Sales contract to upgrade more of Taiwan’s Patriot Air and Missile Defense Systems from Configuration-2 to PAC-3 standard, enhancing the ROC’s ability to deal with threats like China’s growing array of ballistic missiles pointed at the island.

Work under this contract will be performed by Raytheon IDS at the Integrated Air Defense Center in Andover, MA; the Warfighter Protection Center in Huntsville, AL; the Mission Capability and Verification Center at White Sands, NM, and by Raytheon Technical Services Company in El Paso, TX.

Oct 3/08: DSCA Shopping Lists. It would appear that the financial crisis in the USA has a silver lining for Taiwan’s military, as a series of DSCA announcements worth $6.363 billion are issued to Congress’ extended session. All export requests are listed in DSCA releases as being ”...consistent with United States law and policy as expressed in Public Law 96-8. The U.S. is committed to providing military assistance under the terms of the Taiwan Relations Act.”

Purchase requests include:

Ar/Missile Defense – Patriot PAC-3 [see announcement, PDF]:

• 330 PATRIOT Advanced Capability (PAC-3) missiles
• 24 Launching Stations
• 4 AN/MPQ-65 Radar Sets
• 2 Tactical Command Stations
• 2 Information and Coordination Centrals
• 12 Antenna Mast Groups
• 6 Communication Replay Groups
• 4 Engagement Control Stations
• 282 Single Channel Ground and Airborne Radio System (SINCGARS) (115 AN/VRC-88E, 96 AN/VRC-90E, 13 AN/VRC-91E, and 58 AN/VRC-92E) radios
• 9 Electronic Power Plant III (EPP)
• 50 Multifunctional Information Distribution Systems (MIDS, provides Link 16 data sharing)
• Plus battery and battalion maintenance equipment, vehicles, generators, electrical power units, personnel training and equipment, trailers, communication equipment, tool and test sets, spare and repair parts, publications, supply support Quality Assurance Team support services, U.S. Government and contractor engineering and logistics services, technical documentation, and other related elements of logistics support.

See also Nov 9/07 request re: upgrading its Patriot PAC-2 batteries to be PAC-3 compatible. The estimated cost of this request is $3.1 billion, and the prime contractors will be Raytheon Corporation in Andover, MA and Lockheed-Martin in Dallas, TX. Taiwan has not previously purchased PAC-3 missiles, but they do use PAC-2s. They will require several U.S. Government representatives for 2-week intervals twice annually, to participate in program management and technical reviews.

Ar/Missile Defense – Hawkeye 2000 [see announcement, PDF]:

Taiwan already flies 6 E-2T Hawkeye aircraft for airborne early warning and control, and wants to upgrade at least 4 E-2Ts to the more advanced Hawkeye 2000 configuration used by the USA, France, Japan and others. The upgrade will include provisions for the Joint Tactical Information Distribution System (Link 16 for a common battlespace picture), avionics, navigation and non-navigation upgrades, and aircraft electrical, mechanical, and survivability upgrades, all necessary hardware installations, support equipment, spares and repair parts, installation and training, publications and technical documents, U.S. Government and contractor technical assistance, and other related elements of logistics and program support.

American Hawkeye 2000s also have Cooperative Engagement Capability, which allows them to provide shared battlespace pictures and targeting for properly equipped Patriot PAC-3 and PAC-2 missiles. If CEC is not included, the JTIDS/Link 16 can be used to share a battlespace picture and provide advance warning, but cannot be used for targeting.

The estimated cost is $250 million, and the prime contractor will be Northrop Grumman Corporation in Bethpage, NY. Implementation of this proposed sale will require the assignment of 6 contractor representatives to the recipient for a not to exceed a 5-year period.

Taiwan has requested industrial offsets with this order; they will be defined in negotiations with Northrop Grumman.

Air Force – Aircraft Parts [see announcement, PDF]:

This blanket order would allow Taiwan to requisition follow-on spare parts as required to maintain its C-130H Hercules transports, F-5E/F Tiger II fighters, F-16A/B fighters, and F-CK IDF fighter aircraft. The requisitions can include communication equipment, radar, and other related elements of logistics support, as well as spares. The estimated cost is $334 million, and items will be ordered from appropriate contractors as needed.

Implementation of this proposed sale will not require the assignment of any additional U.S. Government and contractor representatives to the recipient.

Army – Apache Longbow attack helicopters and weapons [see announcement, PDF]. Taiwan currently flies AH-1W Cobras in this role, and an attack helicopter deal has been in the works since 2002. The AH-64D beat Bell’s AH-1Z Viper on the grounds that it was battle proven, while the AH-1Z remains developmental.

Taiwan is requesting 30 AH-64D Apache Longbow Block III attack helicopters, the helicopter’s most modern configuration which is just beginning to enter service in the USA. The helicopters will be equipped with 30 Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor (MTADS/PNVS “Arrowhead”), 17 AN/APG-78 Fire Control Radars and AN/APR-48 Radar Frequency Interferometer (FCR/RFI), 69 T700-GE-701D Turbine Engines. Composite horizontal stabilators, crew and maintenance trainers, depot maintenance, all necessary support equipment, tools and test equipment, integration and checkout, spares and repair parts, training and training equipment, and other forms of support are included in the base purchase.

The request also includes applicable weapons for these helicopters: 173 FIM-92F Stinger Block I Air-to-Air Missiles, 35 Stinger air-air missile Captive Flight Trainers with live guidance systems but no rocket motors, 1,000 AGM-114L Longbow Hellfire anti-armor missiles that can use the APG-78 and their own radar’s millimeter-wave guidance for “fire and forget” capability, and 66 M299 Hellfire missile launchers.

The estimated cost is $2.532 billion, and Taiwan has requested industrial offsets; these will be defined in direct negotiations with the contractor(s). Implementation of this proposed sale will require the assignment of 2 U.S. Government personnel for a period of 6 years to provide intensive coordination, monitoring, and technical assistance. In addition, 6 contractor representatives will be in country serving as Contractor Field Service Representatives for a period of 5 years, with the possibility of a 5-year extension. The principal contractors will be:

• The Boeing Company in Mesa, AZ and St Louis, MO (AH-64)
• General Electric in Lynn, MA (Engines)
• Lockheed Martin Missiles and Fire Control in Orlando, FL (Longbow Hellfires, M299, Arrowheads)
• Lockheed Martin Systems Integration in Owego, NY
• Northrop Grumman Corporation in Baltimore, MD (Longbow Hellfires)
• Raytheon Company in Tucson, AZ (Stinger missiles)
• Inter-Coastal Electronics in Mesa, AZ
• BAE Systems in Rockville, MD

Army – Javelin missiles [see announcement, PDF].

Taiwan wants to buy 182 more man-portable Javelin anti-armor missile rounds and 20 command launch units, plus 40 missile simulation rounds, trainers, rechargeable and non-rechargeable batteries, support equipment, spare and repair parts, and other related elements of logistics support. The estimated cost is $47 million.

Raytheon/Lockheed-Martin’s JAVELIN Joint Venture in Orlando, FL will be the prime contractor. Implementation of this proposed sale will require a U.S. Government Quality Assurance Team consisting of 1 contractor and 2 U.S. Government representatives in country for 5 days to accomplish the initial deployment of the missiles. Taiwan won’t need more help than that, as they were one of the Javelin “fire and forget” missile’s early customers in 2002.

Navy – Harpoon missiles [see announcement, PDF].

Taiwan requests 32 UGM-84L Sub-Launched Harpoon Block II missiles for its 2 Seadragon Class submarines. Harpoon Block II includes GPS guidance that makes them easier to use near shore (for instance, against amphibious landing ships on final approach), and also gives the missiles some land attack capability out to their 150 mile range. Taiwan’s request adds 2 UTM-84L Harpoon Block II Exercise missiles, 2 Advanced Harpoon Weapons Control System (Version 2) for installation on the Seadragon Class, 36 Harpoon containers, 2 UTM-84XD Encapsulated Harpoon Certification and Training Vehicles, test equipment and services, spares and repair parts for support equipment, and other forms of support.

The estimated cost is $200 million, and the contractor is Boeing subsidiary McDonnell Douglas in St Louis, MO.

The US DSCA notes that “The recipient has previously purchased both air and surface launched HARPOON missiles and will be able to absorb and effectively utilize these submarine-launched missiles.” As such, no additional additional U.S. Government or contractor representatives will be required.

Sept 29/08: Taiwan News reports that:

“The Pentagon was expected to notify the U.S. Congress of its intention to sell the arms to Taiwan by the end of its current session last Friday. Taiwan has expressed worries that if the U.S. missed the deadline, the Legislative Yuan would have to start the process of approving a budget for the arms package from the start…. Congress had been extended to deal with the current financial crisis, and therefore the arms deal could still be approved.

The package includes Patriot missiles, Apache helicopters, diesel-powered submarines, anti-tank missiles, submarine-launched missiles and P-3C Orion anti-submarine aircraft, but not new F-16 fighter jets Taiwan was hoping to buy.

The U.S. State Department notified the Taiwanese media late on Friday that government departments were still reviewing the deal, and that once it was approved, Congress would be immediately notified.”

This did not sound like anything close to a sense of urgency, but events would prove otherwise. Pro-China elements in the US State Department are still blocking approval of Taiwan’s unofficial request for F-16C/D fighters.

April 23/08: Patriot SAM. The US DSCA announces [PDF] “The Taipei Economic and Cultural Representative Office in the United States” formal request to upgrade and refurbish their 3 existing PATRIOT fire units’ ground support equipment to the latest Army Configuration 3 under a $939 million contract. Raytheon Corporation in Andover, MA will be the prime contractor. Although the purchaser generally requires offsets, at this time, there are no known offset agreements proposed in connection with this potential sale and no additional U.S. Government or contractor representatives will be required.

Obviously, this effort is less helpful than acquiring new Patriot PAC-3 missiles to add to Taiwan’s defense. Instead, they are adding Patriot PAC-3 radar and communications enhancements to Taiwan’s existing Patriot batteries, turning them into a PAC-2 GEM type configuration in use by a number of US allies. The PAC-2 missile is larger than the PAC-3, and uses a fragmentation warhead instead of the PAC-3 missile’s “hit to kill” approach. Patriot’s widely-touted performance during the 1991 Desert Storm operation turned out to be significantly overstated, but when coupled with PAC-3 class radars et. al., it has demonstrated useful capabilities against incoming ballistic missiles. The specific sale includes:

• 2 PATRIOT, MIM-104 (Patriot-As-A-Target)
• Radar Enhancement Phase 3 (REP-3)
• Classification, Discrimination and Identification Phase 3 (CDI-3)
• Remote Launch Communication Enhancement Upgrade (RLCEU)
• An Electric Power Plant.
• 36 AN/VRC-88E SINCGARS EXP Vehicle Short Range Radio Systems
• 32 AN/VRC-90E SINCGARS EXP Vehicle Long Range Radio Systems
• 4 AN/VRC-91E SINCGARS EXP Long Range Radio Systems
• 11 AN/VRC-92E SINCGARS EXP Dual Range Radio Systems

It also includes non-MDE (Military Designated Equipment under US Arms transfer laws) items such as
all necessary modification kits, communication support equipment, tools and test equipment, integration and checkout, spares and repair parts, installation and training, publications and technical documents, U.S. Government and contractor technical assistance, other related elements of logistics and program support, and 4 telemetry kits for its live fire training.

Sept 12/07: P-3 MPAs. The US DSCA announces [PDF] the “Taipei Economic and Cultural Representative Office in the United States” official request for 12 ‘excess’ P-3C Orion maritime patrol aircraft, with strong surveillance and anti-submarine capabilities. The estimated cost is $1.96 billion. DSCA adds that:

“This sale is consistent with United States law and policy as expressed in Public Law 96-8. The United States is committed to providing military assistance under the terms of the Taiwan Relations Act. The recipient’s current patrol aircraft are reaching the end of their fatigue and operational service life. To maintain national security it is necessary that recipient replace these fixed-wing aircraft with an airborne operational capability for land-based maritime patrol and reconnaissance, including economic exclusion zone surveillance and protection, command and control, anti-submarine warfare, and anti-surface warfare. The recipient can absorb these additional aircraft into its inventory.”

Offset agreements associated with this proposed sale are expected, but they will be defined in negotiations between the purchaser and contractors. Principal contractors include Lockheed Martin of Eagan, MN; Lockheed Martin Aircraft Center of Greenville, SC; Rockwell Collins of Cedar Rapids, IA; Raytheon Company of McKinney, TX, EDO (Condor Systems) of Morgan Hill, Ontario Canada; and L3 Wescam of Ontario, Canada. There may be up to 32 U.S. Government and contractor representatives with varying technical skills and disciplines who will be required, following the delivery of the aircraft, to provide support for 1 year after the last aircraft delivery. The exact request includes:

• 12 ‘excess’ P-3C Orion aircraft with T-56 engines. It is likely that they will begin with ‘boneyard’ stored aircraft that need refurbishing to fly, and significant modifications to be viable for any significant period. Some parties like Norway, for instance, are making their P-3s viable by completely replacing their wings as part of their general overhaul.
• Aircraft activation, aircraft life extension and avionics modification, transportation
• 3 excess TP-3A aircraft (non-operational, to be used as airframe spares) with T-56 engines
• 15 Data Link terminals
• 19 MIDS-LVT Link 16 terminals
• 2 MIDS On-Ship Terminals

Plus a mobile operation command center, Command Control Communications Computer Intelligence Surveillance, Reconnaissance, (C4ISR) network integration, training devices, medical services, support and test equipment, engineering technical services, supply support, operation and maintenance training, ground support C2 facilities, documentation, spare/repair parts, publications, documentation, personnel training, training equipment, contractor technical and logistics personnel services, and other related support elements.

Additional Readings

• Republic of China, Ministry of National Defense – 2008 National Defense Report (English)

• Global Security – Hai Lung II [Sea Dragon] class Submarine. Details the many twists and turns in Taiwan’s attempts to buy new diesel-electric submarines.

• Wall Street Journal (Dec 13/09) – Interview with Ma-ying Jeou :Taiwan’s Détente Gamble

• StrategyPage (Nov 26/09) – Taiwan Arms Itself Despite Chinese Pressure. But it’s getting more difficult.

• StrategyPage (Oct 23/09) – The Losers Game. “In most cases, Taiwanese planners now believe that the Chinese could succeed…. While many Taiwanese still see the United States as the ultimate guarantor of Taiwanese independence, they see China as increasingly capable of grabbing the island before the U.S. can intervene. So while the Taiwanese don’t have to be strong enough to defeat a Chinese invasion, they do have to be strong enough to hold the Chinese back until American reinforcements can show up.”

• World Politics Review (Oct 7/09) – Restoring the Military Balance in China-Taiwan Relations

• Taiwan Link (Oct 3/08) – Taiwan Arms Sales: A New Phase Begins. Offers analysis concerning the overall relationship, as well as specific sales.

• Defense News (May 5/07) – Taiwan F-16 Plan Faces Opposition in Washington “To further complicate the problem, the legislature has whittled the procurement deal down by eliminating the PAC-3s and submarines and replacing the package with a study on submarine designs, an upgrade for Taiwan’s current PAC-2s and the 12 P-3s – and still that budget has been delayed by additional political wrangling….” Also: “A very senior U.S. person is blocking the F-16 sale to Taiwan. Even if Taiwan passes the defense budget, it will not affect this decision to block the sale. A State Department rep at the meeting did not want to give any room to negotiate on this issue,” said a U.S defense contractor here.”

• DID (Oct 4/06) – F-16 Sale Nixed: KMT Opposition to Taiwan’s Defense Claims Latest Victim

• DID (Nov 1/05) – Taiwan Orders F-16 Training in USA, But Larger Defense Buys Remain in Limbo