TAIPEI, Taiwan, May 24 (UPI) -- Proposed multi-billion dollar sales of U.S. submarines and destroyers to Taiwan could be shelved due to political and practical problems.
The sale of eight diesel-electric submarines and ships equipped with the hi-tech Aegis air defense system was approved by the United States in April 2001. But little progress has been made on the deal, worth up to $11 billion, Taiwan's Central News Agency reported Monday.
The United States has not build conventional submarines for more than 40 years, and has not come up with a design that satisfies Taipei, the agency cited Jane's Defense Weekly as saying.
Germany and Spain reportedly declined to offer their designs to avoid offending China, which views Taiwan as part of its territory and opposes all arms sales to the island.
Another obstacle is Taipei's request that the submarines be built in Taiwan, to upgrade the technical expertise of workers at the government's China Shipbuilding Corporation. But experts say Taiwan lacks the necessary construction and testing infrastructure.
No progress has been made on the Aegis-equipped ships either. Taipei bought four destroyers as an interim measure.
The article warned that U.S. policy toward arms sales to the region could shift, especially if Bush loses the November election, and the time for deals could be running out.
