Taiwan lawmakers concerned about aircraft firm's China ties

Jun 22, 2009, 14:05 GMT

   Taipei - Taiwan lawmakers voiced concern Monday about the island's aircraft company's cooperation with a Chinese plane manufacturer to develop passenger aircraft.

    Lawmaker Lin Yu-fang from the ruling KMT party said the Aviation Industry Development Corp (AIDC) built Taiwan's own Indigenous Defence Fighter, and that 80 per cent of AIDC's business is related to national defence.

   'So AIDC must be very careful in in its corporation with China. It should place national security above making money,' he said.

   Lin demanded AIDC report to the parliament's defence committee on its dealings with China.

   Trong Chai, an opposition lawmaker, also blasted the firm for moving too close to China and running the risk of divulging military secrets to Beijing.

   'AIDC must halt its cooperation with China immediately, or the Democratic Progressive Party will lodge a strong protest with the Economics Ministry,' he said.

   On Monday, the China Times daily reported that AIDC plans to join Shanghai-based AVICI Commercial Aircraft Co Ltd to develop the 190-seat C-919 passenger plane. The first plane is scheduled to be launched in 2014.

   AIDC's contacts with China would not only endanger Taiwan's' security, but will also make the United States more reluctant to sell F-16C/Ds to Taiwan, the newspaper said.

But AIDC spokesman Lee Shih-chang defended the tie-up as harmless, and said company chairman Hsing You-kuang attended the 2009 Shanghai Air Show last month.

   'Besides AIDC, China also invited other foreign companies to participate in developing C-919 passenger aircraft. The whole thing is still in the planning stage. AIDC will not leak secrets as it will only be a component supplier,' he said.