Identifier
Created
Classification
Origin
05TAIPEI1514
2005-03-29 11:41:00
CONFIDENTIAL
American Institute Taiwan, Taipei
Cable title:  

SPECIAL DEFENSE BUDGET REMAINS STUCK IN PROCEDURE

Tags:  MASS MARR PREL PGOV TW 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L TAIPEI 001514 

SIPDIS

STATE PASS AIT/W

E.O. 12958: DECL: 02/01/2015
TAGS: MASS MARR PREL PGOV TW
SUBJECT: SPECIAL DEFENSE BUDGET REMAINS STUCK IN PROCEDURE
COMMITTEE

REF: TAIPEI 1201

Classified By: AIT Director Douglas Paal, Reason: 1.4 (B/D)

C O N F I D E N T I A L TAIPEI 001514

SIPDIS

STATE PASS AIT/W

E.O. 12958: DECL: 02/01/2015
TAGS: MASS MARR PREL PGOV TW
SUBJECT: SPECIAL DEFENSE BUDGET REMAINS STUCK IN PROCEDURE
COMMITTEE

REF: TAIPEI 1201

Classified By: AIT Director Douglas Paal, Reason: 1.4 (B/D)


1. (C) Summary: The KMT and People First Party (PFP) rejected
the government's request to place the special defense
procurement budget on the Legislative Yuan (LY) calendar
during a March 29 meeting of the Procedure Committee. This
was the second week in a row that the committee refused to
place the special budget package on the legislative agenda.
Legislators from both camps have cautioned AIT not to
interpret Pan-Blue posturing on the budget early in the
session as an indication that the LY will not eventually act
on the three special budget programs.

2 (C) Nevertheless, PFP Policy Chief Vincent Chang told AIT
on March 24 that party Chairman James Soong has been unable
to convince the independent-minded PFP Caucus leadership to
drop objections to using a special budget to fund the three
procurement items (Reftel). Chang said the Chen
administration will have to make major concessions, perhaps
involving the submarines, in order to provide Soong enough
cover to bring his party around.


3. (C) Democratic Progressive Party (DPP) Defense Committee
Co-chairman Lee Wen-chung told AIT that the government is
willing to compromise on almost any aspect of the budget
package except calls by some Pan-Blue legislators to
eliminate one or more of the three special budget programs.
Lee said the DPP is even willing to consider meeting the
KMT's demand to cut the special budget price tag to 305
billion NTD (USD 10 billion) on the condition that the LY
simultaneously pass a resolution dictating an increase in the
regular annual procurement budget to fully cover out-year
costs for the three programs.
PAAL