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Popeye's article stated Taiwan's legislature is STILL working on a policy to release $63 mil to fund a portion of the submarine design.
I think you misunderstand. The money is in the budget, which is set to be voted on this week. The recent announcement was the conclusion of budget negotiations prior to the vote.
Let us pretend Taiwan's legislature passes this policy
Now that consensus between the big parties has been reached on the matter, the KMT would be mad to kill it off with approaching elections.
I mean all the involved decision makers say "Yes" to this deal so the deal REALLY happens, not some who say "Yes" and others who say "No" so the deal stays mired.
That isn't how government works. You get the people who make the decisions together and a majority decide what goes. Some people always disagree, but they have to accept it - or they get disciplined. If they can't accept it they're expected to resign. Trying to sabotage a project from the inside would kill off their careers.
At this rate, Taiwan will get modern submarines at a very slow rate.
Not necessarily. Speed depends on political will in the US and Taiwan. If the US wants the project to go ahead and Taiwan funds it, there's no reason for it to necessarily be as slow as you describe. The delay over the years was down to trying to work out how to proceed and to get funding - those decisions appear to have been made.
Let us pretend that Taiwan's currently KMT-favored legislature rejects this policy.
As I said above the KMT has already approved it, so it would be ridiculous to then reject it in less than a week with an election coming up.