TAIPEI (Taiwan News) — Taiwan is seeking a US extension as the Monday deadline for the first payment on a HIMARS deal approaches, with the Ministry of National Defense warning the purchase is in jeopardy due to the legislature’s failure to approve the special defense budget.
MND Department of Strategic Planning Director Huang Wen-chi (黃文啓) said Taiwan must make the first payment by Monday, while missing the deadline could push the deal back until the end of the year, per CNA. He added that US Defense Security Cooperation Agency (DSCA) officials indicated it would be difficult to grant flexibility on delaying payment.
Deputy Defense Minister Hsu Szu-chien (徐斯儉) said the MND has been in talks with the DSCA to extend the payment deadline for the HIMARS Letter of Offer and Acceptance but the US side remains strict. He said the Department of Strategic Planning has been tasked with continuing negotiations.
Hsu said that even if an extension is granted, it will still come with a deadline and require further planning on how to proceed with payment. He added that the procurement budget has not been approved by the Legislative Yuan, and the special defense budget has yet to pass its third reading.
This leaves the MND without a legal basis to make the payment. The ministry may need to hold internal discussions to determine how to resolve the issue.
After two days of discussions over competing defense proposals by the Cabinet, the TPP, and the KMT, lawmakers on Thursday failed to reach consensus on key provisions such as procurement items and total amounts. DPP Legislator and Foreign Affairs and National Defense Committee co-Convener Chen Kuan-ting (陳冠廷) said the matter would be referred to party caucus negotiations.
Hsu said the MND aims to communicate transparently with legislators and explain the reasoning behind its budget proposals. He added that the ministry is willing to discuss any concerns over the scope of the special defense budget.
He said the method of procurement, whether commercial, military, or commissioned, is not the key issue. The seven procurement items proposed by the MND are based on enemy capabilities and defense operational planning, which he said legislators should take into account.
