Taiwan is instead weighing the merits of refurbished P-3B Orion aircraft, the authoritative Jane's Defense Weekly said in its latest issue, and relayed a letter of request to Washington for price and availability data for the 300 million-dollar aircraft.

The cost of a new fleet, estimated at some 4.1 billion dollars, has prompted second thoughts by the Taiwan military about the deal.

"We do not believe it would be approved by the [Legislative Yuan's] Defense Committee. It is just too expensive," a defense ministry source was quoted as saying.

A US source noted: "The program is still hung up over the high costs associated with opening up the production line. The key issue is finding a way to bring these costs down."

The refurbished P-3Bs are a much more attractive deal for Taiwan, and would likely each carry the 66 million-dollar price tag attached to the proposed deal for nine of the aircraft to South Korea.

The new fleet of aircraft is to replace Taiwan's fleet of 25-year-old S-2T Tracker aircraft.

Vice Defense Minister Lin Chong-pin had told parliament that "the defense ministry will take into consideration the country's defense needs and financial status, and will by no means do exactly as the United States demands."

Chang Hsiao-hsin, a defense ministry official, has said Taiwan is also mulling options such leasing the P-3Cs, now serving the US Navy, or purchasing the aircraft from the international arms market.

US President George W. Bush offered to sell Taiwan 12 P-3C Orions in April 2001, but this would require Lockheed Martin to reopen its assembly line as the aircraft is no longer in production.

Washington, the leading arms supplier to Taiwan, had advised the island to beef up its anti-submarine capabilities as China has acquired an increasing number of Russia-built Kilo-class submarines.

WAR.WIRE