The Obama administration plans to supply Taiwan new arms and sophisticated radar gear for its existing F-16 fighter fleet as part of an upgrade package valued at up to $5.85 billion, a senior U.S. official said Tuesday.
Lockheed Martin Corp (LMT.N) builds the F-16.
"I do not have the impression that anything is being held back, frankly," said the official, referring to Taiwan's request for the "retrofit" of about 145 F-16 A/Bs sold by the United States in 1992.
The administration is set to formally notify Congress on Wednesday of the proposed F-16 upgrade package. It has deferred Taiwan's long-standing request for 66 new late-model F-16 C/D aircraft to replace Taiwan's F-5 fleet that is more than 30 years old.
The official, who is closely involved in policy toward Taiwan, spoke to Reuters outside a defense industry conference in Virginia focused on Taiwan's security needs and China's growing military power.
He said the upgraded A/B models would have essentially the same capabilities as the C/D version Taiwan had sought at a lower price.
"So you're getting 145 planes upgraded to virtually the same as the C's and D's for $5.8 billion," versus what would have been an $8.3 billion tab for the 66 new planes, the official said.