Paper says Taiwan picks Lockheed to supply anti-submarine aircraft

Oct 23, 2006, 9:56 GMT

Taipei - Taiwan has ruled out US defence firm L-3 Communications as supplier of 12 P3-C anti-submarine aircraft, in favour of the US Navy's preferred supplier Lockheed Martin, a newspaper said on Monday.

'Lockheed Martin's P3-Cs have been tested in warfare, but L-3's have not, and L-3's after-sale service cannot be guaranteed,' the Liberty Times quoted an unnamed military official as saying.

The official said that in 2004, the US named Lockheed Martin as the supplier of the 12 P3-Cs to Taiwan, so Taiwan would respect the US Navy's choice.

But L-3 Communications continues pressing Taiwan open up the contract to competitive bidding. The company has retained former US deputy secretary of state Richard Armitage to lobby Taiwan officials, and he has written to President Chen Shui-bian, Parliament Speaker Wang Jin-pyng and Defence Minister Lee Jye.

Armitage said the firm is a competent supplier of P3-Cs because it has upgraded P3 aircraft for Australia, New Zealand and South Korea.

The former diplomat was friendly toward Taiwan during his term, so his lobbying has created a lot of pressure for Taiwan authorities.

The 1.2-billion-dollar P3-C deal is part of the 14.5-billion-dollar arms' package approved by US President George Bush in 2001.

The arms' deal also includes eight conventional submarines and six PAC-III anti-missile batteries. Taiwan's Defence Ministry has made the budget for them but lawmakers have blocked it, citing high prices and late delivery.

The Taiwan parliament will resume debate on the arms' purchase budget on Tuesday.