Kao Chung-yuan, legislator from main opposition Kuomintang (KMT), and Lin Yu-fang from People First Party, both key members of the parliament defense committee, argued the term was crucial to ensure Taiwan's interests.

"Our country must gain something else in addition to military equipment with such a huge spending," Kao said.

The package of eight submarines could cost Taiwan up to 11.69 billion US dollars.

"With proper technical guidance, our China Shipbuilding Corp. (CSBC) will definitely be able to build submarines," Lin said.

In line with a parliamentary resolution, Taiwan's cabinet in September proposed to Washington that local technicians should be involved in the construction of the submarines to ensure technology transfer to state-run CSBC.

Under the proposal, Taiwan technicians would build one-third of the third and fourth submarines, and two-thirds of the fifth and sixth ones before building the last two on its own.

But a group of US naval officials had discouraged Taiwan from pushing through the plan during a recent trip to the island.

In a visit to parliament Thursday, the group led by Gibson Le Boeuf, deputy US Navy program executive officer for submarines, also put estimated costs of the eight submarines at between 8.68 billion to 11.79 billion US dollars, depending on suppliers, according to local lawmakers.

They told the legislators that the eight submarines, which could be built by Germany, Spain or South Korea, would be completed in 2019 if the budget was approved by parliament next year.

The US officials said it would be even more expensive if Taiwan was to manufacture the submarines on its own.

The island would also have problem finding suppliers for the weapons and electronic systems for the submarines owing to pressure from China, they added.

US President George W. Bush approved the submarine sale in April 2001 as part of Washington's most comprehensive arms package to the island since 1992.

Since then, however, the program has progressed at a snail's pace as the United States has not built conventional submarines for more than 40 years.

Germany and Spain had reportedly declined to offer their designs for fear of offending China, which regards Taiwan as part of its territory to be reunified, by force if necessary.

The Netherlands had also turned down the deal, lawmakers said.

China and Taiwan split in 1949 at the end of a civil war, but Beijing has repeatedly threatened to invade the island if it declares independence.

WAR.WIRE