TAIPEI (Taiwan News) — The Ministry of National Defense said Sunday that it had secured a deferral on the Monday deadline for the initial payment on HIMARS rocket systems, giving Taiwan more time to resolve a legislative impasse over the proposed NT$1.25 trillion (US$40 billion) special defense budget.

MND Department of Strategic Planning Director Huang Wen-chi (黃文啓) said during a Monday legislative session that the US agreed to defer payment for all 82 systems until the US Department of Defense negotiates with the contractor, Lockheed Martin, per CNA. Huang said the ministry will continue to push for passage of the special defense budget to prevent a repeat of similar delays in the near future.

Huang told the media before the meeting that because the HIMARS Letter of Offer and Acceptance arrived late, when the MND received it in March, the US had already made clear that the proposal could not be extended. As the validity period and the initial payment deadline approached, the MND began intensive communication with the US.

Since there had previously been no cases allowing Taiwan to delay the first payment, the US Defense Security Cooperation Agency (DSCA) initially refused to make an exception. It was only over the weekend, after the MND reviewed all relevant security assistance regulations, that a consensus was reached with the American Institute in Taiwan.

Huang said the DSCA will use emergency procedures to release the necessary funds for contract preparations. However, the full payment for the contract must still be made within five days after signing.

Huang said the US has indicated that discussions with the contractor are expected to conclude around the end of May. Regarding a similar situation expected in the Javelin missile procurement, Defense Minister Wellington Koo (顧立雄) said that Taiwan will also seek flexibility from the US.

Under the standard US Foreign Military Sales process, Taiwan must transfer the initial payment to the DSCA-designated account by the agreed-upon date following the signing of the pricing proposal. Only after the US confirms receipt can Taiwan formally negotiate and sign production contracts with the manufacturer.

If payments are not received on schedule, the US is generally unable to begin negotiations, which can delay production schedules or allow other countries to take priority, ultimately affecting the delivery timeline.