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Taiwan opposition accuse US of inflating submarine prices
TAIPEI (AFP) Nov 03, 2003
Taiwan's opposition parties on Monday accused the United States of inflating the cost of its submarines in a row over the most comprehensive arms deal sealed with the island for more than a decade.

US officials quoted the estimated costs of eight conventional submarines for the Taiwanese navy at between 6.76 billion and 9.25 billion US dollars in a visit to parliament on Thursday last week, according to local lawmakers.

The United States delegation also balked at the idea of Taiwan's state-run China Shipbuilding Corp. (CSBC) doing the work on quality and cost grounds.

The two major opposition parties, Kuomintang (KMT) and People First Party (PFP), both criticised the valuation.

"Why were the prices about two to three times higher than the price tags of the submarines built in other countries?" PFP Parliamentarian Lin Yu-fang, a member of the defense ministry's defense committee, said in parliament.

According to figures provided by Lin, South Korea built three Germany-designed submarines at a price of 367 million US dollars each, while India built three at 323 million each, and Pakistan constructed three at 317 million.

"If the US quotation is accepted, you should step down," Lin told Vice Defense Minister Chen Chao-min.

US President George W. Bush approved the submarine sale in April 2001 as part of the arms deal, the most comprehensive since 1992. Since then, however, the program has progressed slowly 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.

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