AmCham arrow Publications arrow Topics Archive arrow Topics Archive 2006 arrow Vol.36- No.4 arrow Editorial: National Defense Deserves Priority
Editorial: National Defense Deserves Priority PDF Print E-mail

Ordinarily AmCham refrains from commenting on defense-procurement issues, which are generally matters for government-to-government negotiation rather than purely commercial transactions. But the prospect that continued stalemate over Taiwan's arms-procurement policy could seriously jeopardize Taiwan's national security - not to mention its political credibility with the United States, its chief supporter in the international arena - has now prompted the Chamber to speak out.

When foreign investors weigh a country's political risk, a key factor in that analysis is an assessment of the external threat to its peace and stability. Businesses invest where the future is predictable, and Taiwan already faces very stiff competition for investment from faster-growing economies around the region.

 

For Taiwan to be a secure location for investors to commit their resources, it needs to engage in a dual strategy - actively seeking to promote peace, while at the same time preparing for potential crisis. That means reducing tensions and avoiding unnecessary provocation. It also means maintaining a level of defense capability that will deter others from military adventurism. Together the two approaches lower the risk of conflict, increase social and economic stability, and ultimately strengthen Taiwan.

AmCham does not take a position on which weapons systems Taiwan should adopt. Valid reasons for disagreement exist about what particular items would be the most effective, given budget constraints and differing opinions on defense strategy. But the way to deal with such disagreement in a democracy is to have full and open discussion in the legislature so that a consensus may emerge. The unseemly politicization of the arms-procurement issue in Taiwan has prevented that process from taking place. Instead of allowing the government's arms-procurement proposal to proceed to the Defense Committee for deliberation, the opposition-controlled Procedure Committee has instead voted 50 times to keep the bill off the legislative agenda. In the meantime, opposition leaders have spoken of their intention to offer their own version of the bill, but so far nothing has been forth- coming.

A prime obstacle to rallying support behind the government's procurement proposal has been the flurry of question marks surrounding the biggest single component - the purchase of eight diesel-electric submarines. Considering that the United States has not built non-nuclear subs in decades, where would the design come from? How much would the subs really cost? When could they be delivered?

Congressman Rob Simmons has recently suggested a sensible solution to that impasse - asking the Legislative Yuan to first appropriate a more manageable budget to finance the selection of a contractor and the completion of conceptual and detailed designs. The lawmakers would then no longer be confronted with unanswered questions when asked to vote on a final contract.

That idea, or a similar example of creative thinking, needs to be applied if Taiwan is to convincingly demonstrate its dedication to its own security. Only in that way will Taiwan continue to be taken seriously by the inter-national community, including international business. Partisan politics must not be allowed to mask the national priorities of peace, stability, and credibility.