Taipei, July 01: The United States has suspended a plan to sell four state-of-the-art Aegis destroyers to Taiwan due to the island's tight military budget, a report said today. The US Navy had recently approved the necessary technology transfer affiliated to the arms deal, The United Daily News said
"But the us government intends not to sell the Aegis-class destroyers for the time being", the paper said, adding that Taiwan has not pushed for the purchase in recent months. "The four destroyers will cost a total of six billion US dollars, and the existing arms purchase is already behind schedule", it added. Reports have suggested that Washington had pushed for the sales of the four Aegis destroyers to Taiwan, after us President George W. Bush in 2001 announced the most comprehensive arms sale to the island in a decade.

The 5.7-billion-dollar package includes eight diesel submarines, 12 P-3C submarine-hunting aircraft and four Kidd-class destroyers.


The two sides have so far only cut a deal on four second-hand Kidd-class warships because of differences over other proposals and a tight arms budget on the Taiwanese side.

Washington has remained the leading arms supplier to Taiwan after switching diplomatic recognition from Taipei to Beijing in 1979.

US arms sales to Taiwan are guided by the 1979 Taiwan Relations Act, which charges the United States with providing the island with the means to defend itself.

Bureau Report