The second-hand destroyers, part of the decade's most comprehesive arms package offered to the island by US President George W. Bush in April last year, will complete Taiwan's air-defense arsenal.

The first Kidd-class destroyers could enter Taiwanese service by 2005, the navy estimates, and are a prelude to Taiwan's acquisition of the even more advanced Aegis air defense system sometime in the next 10 years, Jane's reported.

VSE Corp. will undertake logistical support, training and other technical responsibilities, Jane's said in an article published Wednesday.

The Kidd deal has generated fierce debate in Taiwan, where opponents, including members of the legislature's powerful defence committee, have made several attempts to block the 875 million dollar sale.

Critics instead are pushing the United States for the sale of the Aegis-equipped vessel, saying the Kidd-class ships are both too old and too expensive to make the deal worthwhile for Taiwan.

Washington has rejected Taiwan's proposal to purchase Aegis-class destroyers, saying it is giving priority to the demands of the US Navy.

The Kidd deal, which follows a two-year review by the United Sates of Taiwan's airforce and navy, has infuriated China.

Beijing has opposed any arms sales to Taiwan, which it regards as part of its territory that could be reunified, by force if necessary.

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 its independence.

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