Pointblank
Senior Member
In comparison with Japan and South Korea the financial dealings of the taiwanese government regarding her defense contracts are quite complicated and confusing. Perhaps Taipeh is reacting sometimes with stalling tactics because they do not want to pay a different (i.e. higher) price for similar equipment sold more cheaply to other US allies.
A report of the Stockholm based SIPRI institute maintained some years ago regarding Taiwan's defense deals of the 90's that only Saudi Arabia, Kuwait and the VAE had been paying comparable high unit prices for their weapon systems. The case of the La Fayette type FFG's seems indeed to indicate that a high level of corruption had an additional negative impact on the bills eventually having to be paid by the average citizen.
After all this kind of intransparency about Taiwan's defense contracts led in part to the current situation since many legislators (KMT and DPP) have a certain reason for mistrust against the military bureaucracy in Taipeh. Before any new ´big deals´will go through the Yuan some kind of structural reform of the entire process of defense contracting will have to be implemented.
(Interestingly Chen Shui Bian promised initially to achieve this but apart from removing Chiang Kai Shek statues from the barracks he has achieved nothing really reforming in the ROCA...:coffee: )
The problem is that Taiwan is in a real bind as to where it can get its weapons. Only the US is willing to sell arms to China, and it takes a lot of flak for it. Therefore, if there is a monopoly for certain goods, the monopoly can set an inflated price for weapons, and the consumer (Taiwan) can't do anything about it if they need weapons. The US recognizes this, and sees arms sales to Taiwan as a chance to put some money into its coffers.