RL30957
Taiwan: Major U.S. Arms Sales Since 1990
March 21, 2006
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Summary
This report, updated as warranted, discusses U.S. security assistance to Taiwan, or Republic of China (ROC), including policy issues for Congress and legislation. The Taiwan Relations Act (TRA), P.L. 96-8, has governed U.S. arms sales to Taiwan since 1979, when the United States recognized the People's Republic of China (PRC) instead of the ROC. Two other relevant parts of the "one China" policy are the August 17, 1982 U.S.-PRC Joint Communique and the "Six Assurances" made to Taiwan. U.S. arms sales to Taiwan have been significant. In addition, the United States has expanded military ties with Taiwan after the PRC's missile firings in 1995-1996. However, there is no defense treaty or alliance with Taiwan. At the U.S.-Taiwan arms sales talks on April 24, 2001, President George W. Bush approved for possible sale: diesel-electric submarines, P-3 anti-submarine warfare (ASW) aircraft (linked to the submarine sale), four decommissioned U.S. Kidd-class destroyers, and other items. Bush also deferred decisions on Aegisequipped destroyers and other items, while denying other requests. Since then, attention has turned to Taiwan, where the military, civilian officials, and legislators from competing political parties have debated contentious issues about how much to spend on defense and which U.S. weapons systems to acquire, despite the increasing threat (including a missile buildup) from the People's Liberation Army (PLA), as described in the Pentagon's reports to Congress on PRC military power. In February 2003, the Administration pointed Taiwan to three priorities for defense: command and control, missile defense, and ASW. The United States increasingly has questioned Taiwan's seriousness about its self-defense, level of defense spending, and protection of secrets. The Pentagon also has shifted its focus from Taiwan's Special Budget to its regular defense budget and raising readiness for self-defense. On the eve of a full Legislative Yuan (LY) vote on December 23, 2005, the Defense Ministry announced it will also remove the request for P-3s (after already removing the request for PAC-3 missile defense) to further reduce the Special Budget to one request of US$9 billion, about half of the original Special Budget, for submarines. Then, in February 2006, the military decided to withdraw the Special Budget and request funds out of the regular defense budgets for P-3s and subs. The opposition KMT party has not issued its long-awaited arms purchase and defense policy despite the chairman's visit in Washington on March 22-23. Several policy issues are of concern to Congress for legislation, oversight, or other action. One issue concerns the effectiveness of the Administration in applying leverage to improve Taiwan's self-defense as well as to maintain peace and stability. Another issue is the role of Congress in determining security assistance, defense commitments, or policy reviews. A third issue concerns whether trends in the Taiwan Strait are stabilizing or destabilizing and how the Administration's management of policy has affected these trends. The fundamental issue is whether the United States would go to war with China and how conflict might be prevented. In December 2005, the House agreed to the conference report on the National Defense Authorization Act for FY2006 (P.L. 109-163), after receding on two provisions that would have directed U.S. flag and general officers and senior defense officials to visit Taiwan. The Senate's bill did not have this language.
