Thursday, February 11, 2010

Singapore Airshow: Ex-U.S. Senator Martinez Joins MPX

Defense News

02/02/2010

Singapore Airshow: Ex-U.S. Senator Martinez Joins MPX

By Wendell Minnick

SINGAPORE - Former U.S. Senator Mel Martinez has joined the board of directors of Florida-based Military Parts Exchange (MPX).

Martinez said he would be helping the company expand its market base into Spain and Latin America. Martinez, who was also a former Secretary of the U.S. Department of Housing and Urban Development, served on the Armed Services Committee while a senator.

"We welcome Senator Martinez to MPX. I know he will make a great contribution as MPX executes its growth strategy," said Eric Klar, MPX president.

The company is an international supplier of non-munition military aircraft parts and equipment in support of a wide variety of fixed-wing and rotary aircraft platforms.

In August, MPX bought Dynatech International Corp., an international distributor of engine components for military aircraft. Dynatech provides aerospace component supply chain management and value-added logistics in support of maintenance, repair and overhaul facilities and foreign governments.

Singapore Airshow: 58% Growth For Eurocopter In Asia

Defense News

02/02/2010

Singapore Airshow: 58% Growth For Eurocopter In Asia

By Wendell Minnick

SINGAPORE - Eurocopter said Feb. 2 at the Singapore Airshow that in 2009 it recorded a turnover growth rate of 58 percent in Asia to reach $1.2 billion.

It also achieved a stable booking value over the past few years in Asia to achieve $700 million in 2009. Internationally the company has also done well with $6.2 billion in turnovers. The most popular helicopter models in demand in the market were the EC120, EC130, EC135, AS 350 B3, NH90 TTH and the EC725.

"Despite the global economic challenges, there have been many opportunities and achievements in Asia and it plays a critical component in Eurocopter's success," said Lutz Bertling, CEO of Eurocopter. "This region is home to half of Eurocopter's subsidiaries and is a top performing region for us. We are confident of Asia's growth prospects and look to grow our business in tandem with the region's development."

Though overall the market continued to improve in 2009 for larger helicopters, there was a decline in light range helicopters - "a trend reflected in Asia, as it is for the rest of the world," Bertling said.

Eurocopter has formed many partnerships in the region, including a partnership with the Korea Aerospace Industry (KAI) in the Korean Helicopter Program. Eurocopter has also partnered with Beijing-based Aviation Industry of China (AVIC) in the development of the EC175/Z15.

"Both programs are on cost, on performance and on schedule," Bertling said.

Other 2009 achievements for the company in Asia includes the inauguration of Eurocopter's first Customer Service Centre in Hong Kong in February; the purchase in Japan of an 80 percent majority share in EuroHeli and a 60 percent share of All Nippon Airways Helicopter Maintenance, respectively, in April and June; the roll out of the first prototype of the Korean Utility Helicopter in July; and the maiden flight of the EC175 in December, four years after the start of development. Also in December the company opened a subsidiary branch in Thailand, and signed a memorandum of understanding for the development of a new maintenance, repair and operations (MRO) facility in Malaysia.

"We have made significant steps in growing our presence in Asia. We will continue with that along with a specific target to be closer to our customers in this region," Bertling said.

Goals for 2010 include plans to inaugurate the MRO in Malaysia and an EC725/EC225 simulator, start EC725/EC225 tail boom manufacturing by PTDI of Indonesia, and complete the transfer of Eurocopter Southeast Asia headquarters to a larger facility in Seletar.

Singapore Airshow: Lockheed, USAF Sign Sniper ATP Contract

Defense News

02/01/2010

Singapore Airshow: Lockheed, USAF Sign Sniper ATP Contract

By Wendell Minnick

SINGAPORE - Lockheed Martin has secured a $59 million contract for additional Sniper Advanced Targeting Pods (ATP) for the U.S. Air Force (USAF).

According to a Feb. 1 press release issued at the Singapore Airshow, the order represents the second increment on the U.S. Air Force's Sniper ATP Lot 9 contract from September 2009, bringing the total value of the Lot 9 deal to $95 million.

"This Lot 9 increment beings total Sniper ATP sales to more than 650 pods for the U.S. Air Force, Air National Guard and 12 international air forces," said Lockheed's Ken Fuhr, director of Fixed-wing Targeting Programs. "Recent orders have also been received from Saudi Arabia, Morocco and the Turkish Air Force."

Since its first deployment in 2005, the Sniper has become operational in the USAF, Air National Guard and multi-national F-16, F-15, B-1, F/A-18, Harrier and A-10 aircraft. Platform expansion continues on the B-52, Tornado, Typhoon and on unmanned aerial vehicles.

The Lot 9 pods will be used to support additional USAF deployments and allow the Air Force to allocate pod resources to home-station training, enabling aircrews to train with the equipment they will use in deployed operations, said the press release.

"The Sniper ATP's modular design facilitates easy field upgrade to pods already in service and enables rapid flight line repair to maintain a 98 percent fully mission capable rate."

U.S. Prepares Taiwan Deal Despite China Opposition

Defense News

02/01/2010

U.S. Prepares Taiwan Deal Despite China Opposition

Does Not Include F-16s, Called ‘Red Line’ by Beijing

By WENDELL MINNICK 



TAIPEI — The United States appears unwilling to stop selling arms to Taiwan despite aggressive lobbying and pressure from China. 



The Pentagon announced Jan. 29 plans for a $6.4 billion arms sale to Taiwan including Patriot missiles and Black Hawk helicopters, but did not meet Taipei’s request for F-16 fighter jets.



The latest arms sales to Taiwan included communications equipment for Taiwan’s F-16s but no new fighter aircraft that had been part of Taipei’s wish list, according to the Defense Cooperation Security Agency.



The deal includes 114 Patriot (PAC-3) missiles, worth $2.81 billion, and 60 Black Hawk helicopters, worth $3.1 billion, as well as two Osprey-class mine-hunting ships, Harpoon missiles and phase two of the C4I/Link 16 “Po Sheng” program, the agency said in a statement. 



Sources in Taipei and Washington had been expecting the release of U.S. congressional notifications for new arms on hold since the Bush administration.



Taiwan is facing about 1,400 short-range ballistic missiles from China and plans to deploy the new PAC-3s in the central and southern regions of the island.



On submarines, Taiwan has been awaiting the release of congressional notifications since the Bush administration approved the sale of eight diesel submarines in 2001. A U.S. government source said they most likely would be smaller than conventional diesel attack submarines currently being deployed by China and other regional navies. Taiwan does not need deep submersibles due to the shallow waters of the Taiwan Strait, he said.

Taiwan has an urgent need for new utility helicopters to replace aging UH-1H Huey helicopters procured during the 1980s. The requirement was highlighted during Typhoon Morakot, which in August killed more than 500 people in southern Taiwan.



Taiwan’s Air Force also received a briefing last year from the U.S. Air Force on the General Atomics MQ-1C S k y Warrior tactical UAV. The Sky Warrior is an upgraded, unarmed variant of the Predator. Taiwan’s Air Force has a requirement for tactical UAVs to monitor sea lanes, coastal areas and disaster areas, and to conduct battlefield reconnaissance.



“USAF briefed on UAVs based upon Taiwan Air Force interest in building better ISR capabilities. They are in the info-gathering mode, so nothing significant yet,” said a U.S. government official.



The military-run Chung Shan Institute of Science and Technology has developed a variety of UAVs, but it has been unable to fulfill an Air Force requirement for an advanced, extended­range, multipurpose UAV.

However, the Army is considering the procurement of the institute’s Chung Shyang UAV.



Taiwan will have a tough time balancing new procurement costs as it implements a major streamlining and command restructuring plan. There also will be strains on the military as it begins to phase out conscription for an all-volunteer system beginning in 2011 and targeted for completion in 2015.



The problem is money, said one Taiwan defense analyst. Taiwan’s legislature recently approved a $9.2 billion defense budget, a drop from the 2009 budget of $9.9 billion and a further drop from the 2008 budget of $10.5 billion. Further declines are expected as the economy continues to shrink.



To complicate matters, the United States has been hesitant to release new arms as China’s political and economic influence in Washington expands.

The noisiest complaint by China is Taiwan’s request for 66 F-16C/D Block 50/52 fighter jets to replace aging F-5s. Since 2006, the U.S. government has refused to accept Taiwan’s letter-of­request for price and availability for new F-16s. Chinese officials have called any release of F-16s a “red line.”

Taiwan’s Air Force also plans to upgrade its older F-16A/Bs and Indigenous Defense Fighters. The Navy has similar upgrade requirements that include refurbishing six French-built La Fayette-class frigates and two Dutch-built diesel submarines.



Nien-Dzu “Andrew” Yang, deputy minister of defense for policy, has denied media reports the Navy wants to procure eight Perry-class frigates from the United States to replace eight Knox-class frigates.



Chen I-Hsin, vice president of the Foundation on Asia-Pacific Peace Studies, said Taiwan needs new U.S. arms to discourage China from becoming too aggressive. Even as cross-strait relations improve, Taiwan still needs arms to allow Taipei to negotiate from a position of strength, he said.



Rupert Hammond-Chambers, president of the Washington-based U.S.-Taiwan Business Council, said he foresees further hysterics from China as the release of a new package of notifications draws near.



“The Chinese are making hay in this vacuum as they raise the level of rhetoric in an attempt to spook the Obama administration into doing less in the future on Taiwan security issues,” he said. “The longer Mr. Obama delays the notifications, the more shrill the Chinese will act. The delay is seen as weakness or a lack of commitment toward Taiwan.”

Asian Procurements Continue Despite Economic Problems

Defense News

02/01/2010

Asian Procurements Continue Despite Economic Problems

By WENDELL MINNICK 



TAIPEI — As Asia-Pacific nations struggle to balance economic problems with continued demands on defense budgets, only China has shown a spending increase.



Debate surrounds what China actually spends on defense each year. Officially, the Chinese government claims it spent $63 billion in 2008, but U.S. government analysts suggest the figure is at least $90 billion.

Whatever the number, the Chinese government admits the budget has doubled since 2000. Double-digit growth over the past decade has led to a massive military modernization effort by the People’s Liberation Army (PLA). China is building new ships, submarines, fighter aircraft and missiles at such a rapid rate that regional neighbors are becoming nervous.



No one in Asia is more worried about China’s military modernization than Taiwan. Taipei is procuring Patriot PAC-3 surface-to-air missiles, P-3C Orion maritime patrol aircraft, AH-64 Apache attack helicopters and UH-60 Black Hawk helicopters. It wants to procure diesel submarines and F-16 fighters.



Despite ambitious procurement plans, the defense budget has been hit by economic problems. Taiwan’s legislature recently approved a $9.2 billion defense budget, down from 2009’s budget of $9.9 billion.



Japan has been hit hard by global economic turmoil but also experienced a major political reshuffle in 2009 that is shaking confidence in the U.S.-Japan security alliance.



In mid-2009, the left-of-center Democratic Party of Japan (DPJ) unseated the conservative Liberal Democratic Party after 55 years in power. Major arms purchases are on hold as the new government in Tokyo debates defense spending and the role of the military. The leadership has disturbed plans for new fighter aircraft and ballistic missile defense improvements.

The more radical elements of the DPJ have threatened to expel U.S. forces from Japan and have called for an end to Japan’s military modernization.



Despite DPJ plans to reduce defense spending, the defense budget was already beginning to fall. According to the Stockholm International Peace Research Institute (SIPRI), from 2002 to 2007 the average annual budget was $44 billion, but in 2008 it fell to $42 billion.



Though North and South Korea have not been at war since 1953, both sides continue to prepare for the unthinkable. North Korea’s nuclear program and missile launches continue to drive Seoul investments in new arms.



According to SIPRI, South Ko­rea’s defense budget numbers remain fairly steady, rising to $23.7 billion in 2008 from $22 billion in 2007.

Despite North Korean antics and saber rattling, it is the South that has the technological advantage on the battlefield. One has to look no further than the Air Force. Both the Lockheed Martin F-35 and the Boeing F-15 Silent Eagle are vying for the F-X III contract. Under the F-X I/II program, Boeing sold 40 F­15K fighters to South Korea.



The KF-X program for the development and production of between 120 and 250 F-16-class fighters, with foreign technology support, is now stalled. Though the program is in limbo, Korean Aerospace Industries, with the assistance of Lockheed Martin, developed and produced the new T-50 Golden Eagle advanced jet trainer. The T-50 is competing against the Alenia Aermacchi M-346 for the Singapore Air Force’s advanced jet trainer competition.



Despite economic problems, Singapore’s defense spending remained steady in 2007 and 2008 at about $5.8 billion. Over the past 10 years, the Singapore Air Force has procured new F-15SG Strike Eagle fighters and AH-64 Apache attack helicopters. There are now tentative plans to procure F-35 fighters. The Singapore Navy also has modernized over the past decade, recently procuring six Formidable-class (La Fayette) frigates and two Archer-class submarines.



New Delhi has not forgotten the 1962 Sino-Indian War, and recent reports of PLA troop movement along the border have made India uncomfortable. Pakistan’s acquisi­tion of nuclear weapons and close relationship with China have also caused concerns in New Delhi.



India’s annual defense budget is about $29 billion and, over the past decade, has procured $50 billion worth of overseas arms and equipment. With 70 percent of its weapons needs met through imports, India is likely to ink contracts worth $30 billion in the next three to five years.



The Indian Air Force is likely to finalize the $10 billion Medium Range Multirole Combat Aircraft program in 2011, under which 126 fighters are to be bought. The contenders are the Boeing F/A-18, Lockheed Martin F-16IN, MiG-35, Dassault Aviation’s Rafale, Eurofighter Typhoon and Saab Gripen NG.



India’s historical foe, Pakistan, struggles to acquire new arms. The country has been rocked by instability in the north while trying to maintain a modern fighting force capable of dealing with India.



The Pakistan Air Force has plans to procure Chinese-built Hongdu L-15 advanced jet trainers and Chengdu J-10 (FC-20) fighters.



The Navy has a long list of problems in procurement. It still has not signed a deal for the German­built Type-214 submarine package after two years of delays. The deal is pending approval by the German government. There also are no signs of an agreement on a Pak­Turkish corvette deal first proposed in 2008.



The Navy also is trying to modernize and expand shipbuilding facilities, procure a surface combatant vessel as a follow-on of the F-22P-class frigate and answer the challenge of India’s new ballistic missile submarine, the INS Arihant.



The Army is preoccupied with fighting an insurgency and has an urgent need for helicopter gunships, utility helicopters, wheeled armored personnel carriers and mine-resistant ambush-protected vehicles.



However, despite the increase in funding under the “Armed Forces Development Plan 2019” in 2009, funds are short and Pakistan’s credit rating remains poor. From 2007 to 2008, the budget dropped from $4.4 billion to $4.2 billion and continues to sink as the economy shrinks. 



Down Under Issues 



There are two main issues confronting Australia in 2010: 



■ Afghanistan and what happens to the Australian force in Oruzgan province following the Dutch withdrawal from the province later this year.

■ The eventual ratification by the U.S. Congress of the U.S.-Australian Defense Trade Cooperation Treaty inked by former Australian Prime Minister John Howard and former U.S. President George W. Bush in Sydney in 2007.

This should make a huge difference in export, license and U.S. International Traffic in Arms controls, which constrain U.S.-Australian defense cooperation and trade.



For 2010 in New Zealand, defense officials are preparing the March release of the defense white paper. The military is expecting delivery of the overdue Offshore Patrol Vessels, and there are warranty issues with the multirole ship, the HMNZS Canterbury, to contend with. ■

Usman Ansari in Pakistan, Gregor Ferguson in Australia, Nick Lee-Frampton in New Zealand and Vivek Raghuvanshi in India contributed to this report.

Rough Waters Ahead for U.S.-Japan Relations

Defense News

02/01/2010

Rough Waters Ahead for U.S.-Japan Relations

By WENDELL MINNICK 



TAIPEI — As Japan and the United States celebrated the 50th anniversary of the Treaty of Mutual Cooperation and Security on Jan. 19, fears remained that the strategic relationship that helped define the Cold War era in the Asia-Pacific region could be coming to an end.



The tipping point came during a dramatic nationwide election in mid-2009, when the left-of-center Democratic Party of Japan (DPJ) unseated the ruling conservative Liberal Democratic Party (LDP).



The DPJ has a dramatically more “benign threat assessment of Asian and global security challenges” than does the United States and previous Japanese administrations, said Bruce Klingner, a former CIA analyst now with the Heritage Foundation think tank. “Altering DPJ security thinking will be constrained, however, by Japanese political factors. As a result, U.S. policymakers foresee rough waters ahead for the alliance.”

Christopher Hughes, author of the recent book “Japan’s Remilitarisation,” agrees that in the “longer term, 10 years plus or so, it is hard to say where the alliance is heading.”

“It would be good to see some consolidation of the alliance rather than grandiose global plans for co­operation militarily, which are probably unworkable as they simply do not fit the DPJ’s conception of what the security treaty is for,” Hughes said.



Part of the problem is that the DPJ entered power with little or no experience in foreign policy or defense issues. The LDP had been the dominant power since 1955 and shared little in the way of partnership or wisdom with the DPJ on strategic decisions, according to Klingner.



“DPJ security perceptions are due to ideology as well as inexperience resulting from not formulating foreign policy or even receiving security briefings when it was the oppo­sition party,” Klingner said. “The former is unlikely to be changed, but the latter can be and offers opportunities for security experts to improve DPJ strategic thinking.”

An example is the recent about­face by Foreign Minister Katsuya Okada’s proposal to move U.S. Marine Corps Air Station Futenma to Kadena Air Base in December.



Despite a 2006 agreement between Tokyo and Washington on the relocation of Futenma, the DPJ began challenging the decision during the campaign and elevated complaints when it entered power.



To make matters worse, a critical mayoral election in Nago, Okinawa, on Jan. 24 has gone to Susumu Inamine, who opposes the Futenma Replacement Facility. The new mayor has little political power to interfere with the facility, but his victory over base supporter Yoshikazu Shimabukuro will further pressure the DPJ to push for Futenma’s removal from Okinawa.



The DPJ campaigned on a promise to redefine the strategic relationship with the United States. Some DPJ officials made even bolder statements, calling for a revamping of the Status of Forces Agreement and the expulsion of all U.S. bases from Japan.



The issue will continue to be a “mini-crisis” between Japan and the United States, but Hughes said the situation can be contained and managed.



“We are already seeing all sides calming down a bit,” Hughes said. “The Japanese side is showing some pragmatism, if not abandoning its position, and the U.S. is beginning to realize that it cannot strong-arm Japan on this issue. So I think both sides will just have to sit down and slog out some kind of new agreement.”

“Regardless of how the Futenma issue is resolved, there will be residual hard feelings and mistrust in both capitals,” Klingner said.



No matter the final agreement, there is still room for the United States to help improve Japan’s military. Japan’s ballistic missile defense program remains an important factor as North Korea continues saber­rattling, especially with projections Pyongyang will conduct its third nuclear test later this year. Japan remains interested in a new fighter to replace aging F-4J Phantoms.



However, Japan does appear ready to redefine its international role with an emphasis on more nonmilitary alliances and cooperation on the environment, food security, humanitarian aid and epidemics.



“I think the DPJ wants to cooperate regionally with the U.S., but genuinely wants to carve out some more security autonomy globally by developing more peacekeeping/U.N. type activities,” Hughes said.

Singapore Airshow: New European, Indian Markets for ST Engineering

Defense News

02/01/2010

Singapore Airshow: New European, Indian Markets for ST Engineering

By Wendell Minnick

SINGAPORE - ST Engineering is moving beyond its regular product lines of small arms and ammunition and pushing into the armored vehicle market and further developing its integrated systems capabilities, said Patrick Choy, ST Engineering's executive vice president for international marketing.

Choy said the company is integrating the capabilities of the four sectors into a single package for the customer. ST Engineering, with a turnover of $3.8 billion in 2008, is divided into four sectors: ST Aerospace, ST Electronics, ST Land Systems (ST Kinetics) and ST Marine.

"The customer wants integrated system solutions," he said. "We approach the market by harmonizing all of our business sectors."

The company has made new inroads into the European market for its armored vehicle line. ST Engineering secured its first armored vehicle sale from a NATO member country in December 2008 when ST Kinetics won a $250 million contract with the U.K. military for 100 "Warthog" tracked vehicles.

Also dubbed "the Beast," it is a development of ST Kinetic's Bronco All Terrain Tracked Carrier. The vehicle was chosen in response to the U.K.'s Urgent Operational Requirement for Afghanistan.

Europe has a long history of procuring ammunition, particularly 40mm, from ST Engineering, but this is the first major purchase by a NATO member of a vehicle from an Asian nation. "We've had our first success with a vehicle sale to the U.K," Choy said. "Traditionally, NATO countries have never bought any major hardware, especially armored vehicles, from Asia. So this has become a good reference point as to where we are as a company."

ST Engineering is now competing for the howitzer market in India with the FH 2000 155mm 52 caliber towed howitzer for India's towed gun requirement and the Pegasus 155mm 39 caliber lightweight howitzer for the ultra lightweight howitzer competition. ST Kinetics is also exploring the sale of the SAR 21 assault rifle to India.

"We did an analysis of where the defense market is going. And there are some conclusions we've drawn. The first one is in some of the major markets we see capital buys decreasing. A lot of countries are not making huge capital buys. For one the threat has changed, two the budgets have been cut and number three they feel that equipment they have is good enough."

Choy said many are moving away from large capital procurements because the threat is more asymmetrical and requires "more boots on the ground."

There will continue to be a need for new conventional weapons, but there is a lot more upgrading and retrofitting of older equipment to save costs as defense budgets decline. "They want more bang for the buck," Choy said. "This is an area that ST Engineering is looking at closely."

Connectivity and integration have also become important but "capital buys will continue to drop" and ST Engineering will be displaying new smart solutions for customer requirements.

ST Engineering is also looking at multi-tasking for platforms. The military is not just involved in traditional combat, he said. Military operations other than war (MOOTW), such as peacekeeping, humanitarian, civil defense and disaster relief are becoming more common.

"So how do we enhance the warfighters capability in that environment," Choy said. Citing the Bronco as an example, "the Bronco is not just for combat operations. It can easily be reconfigured for disaster relief."

At the Singapore Airshow, being held Feb. 2-7, the company will display both the Warthog and 8x8 TERREX armored infantry fighting vehicles for the first time. Also making its debut is the Trailblazer countermine vehicle.

The company will also be showing off its unmanned aerial vehicles (UAV), including the FanTail and Skyblade UAV systems.

Choy said ST Engineering has also developed the 40mm Soldier Parachute Aerial Reconnaissance Camera System (SPARCS) camera round for grenade launchers that allows troops to survey immediate areas in conflict zones.

ST Engineering announced Feb. 1 that ST Kinetics had been awarded a $41.6 million contract for the demilitarization of ammunition for an unidentified country in Africa.

"The contract involves the supply of specialized equipment and related services, such as training and operations assistance. The first delivery is scheduled to be completed in the second half of 2010, with the final delivery expected within the first half of 2012," said a press release issued for the airshow.

Ammunition demilitarization entails destroying the inbuilt capabilities of the ammunition through a series of processes such as disassembly, size reduction, melt-out of explosives and incineration of non-recyclable explosives.

"This is an important endorsement of our demilitarization services. We are pleased that the customer has shown confidence in our solution. We will continue to explore opportunities in demilitarization and work closely with our customers to value add to their operations," said Sew Chee Jhuen, president, ST Kinetics.

Singapore Airshow: Raytheon, UAE Ink $170M Maverick Contract

Defense News

02/01/2010

Singapore Airshow: Raytheon, UAE Ink $170M Maverick Contract

By Wendell Minnick

SINGAPORE - Raytheon has secured a $170 million contract to provide the United Arab Emirates (UAE) with 500 AGM-65D/G2 infrared-guided Maverick air-to-surface missiles, according to a press release issued by Raytheon at the Singapore Airshow on Feb. 2.

The U.S. Air Force awarded the contract under the Foreign Military Sales program managed by the U.S. Defense Security Cooperation Agency, said a press release issued by Mike Nachshen, principle public relations representative for Raytheon's missile systems division.

"Raytheon will build and provide life-cycle support for more than 500 missiles. The company began production of the missile's IR [infrared] guidance and control sections in November 2008," said the press release.

Maverick missiles have been deployed in over 33 countries. To date over 69,000 AGM-65s have been produced and over 6,000 have been used in combat with a 93 percent success rate.

"Raytheon's Maverick is an affordable, combat-proven missile with a history of on-cost and on-schedule delivery, and is integrated on more than 25 aircraft," said Harry Schulte, vice president of Raytheon's Missile System's Air Warfare Systems' product line. "The Maverick family is a best-value solution for the warfighter who needs a direct-attack weapon, while the infrared-guided Maverick is ideally suited to counter high-speed maneuvering targets at sea, like swarming boats."

In 2008 Raytheon hit $23.23 billion in sales and will be pushing a variety of products at this year's airshow, including the new Fish Hawk wing kit. Raytheon will be displaying a model of the new system being developed for the U.S. Navy's High Altitude Anti-Submarine Weapon Concept.

The Fish Hawk combines a global positioning system controlled wing kit with the MK 54 lightweight torpedo. It is designed specifically for the upcoming Boeing P-8 Poseidon multimission maritime aircraft, but can also be fielded on the P-3C Orion. Once launched, the system glides the torpedo for water entry at a precise location to seek and destroy enemy submarines.

Interview: NIEN-DZU YANG Deputy Minister for Defense - Policy, Taiwan,

Defense News

02/01/2010

Interview: NIEN-DZU YANG

Deputy Minister for Defense - Policy, Taiwan

Interviewed by Wendell Minnick, Taipei

Nien-Dzu “Andrew” Yang’s appointment as the policy coordinator for Taiwan’s military comes during a time of great change. The Ministry of National Defense (MND) is struggling to implement an all-volunteer force, initiate streamlining and modernization, cope with a reduced defense budget and an increased threat from China’s military, and procure new arms long held up in Washington by political impediments.



Taiwan has requested new arms from the United States, including F-16s, diesel-electric submarines, UH-60 Black Hawk utility helicopters and more Patriot Advanced Capability (PAC)-3 surface-to-air missile systems. The People’s Republic of China (PRC) has threatened military force despite improved cross-Strait relations. Beijing continues to aim 1,400 short-range ballistic missiles at the self-ruled island of 23 million people.



Yang has served as secretary-general of the Chinese Council of Advanced Policy Studies and as an adviser to the Mainland Affairs Council, Ministry of Foreign Affairs and the MND. 



Q. What is your role at MND, and what initiatives do you want to implement?



A. When I stepped into the office, major changes were already under way in accordance with the Quadrennial Defense Review and the biennial MND Defense Report published in 2009. So all the policies and plans to conduct the necessary defense transformation were already in place. My job is to assist the minister and my colleagues to implement the necessary policies in introducing force restructuring, the all-volunteer system, calculating budgets, formulating joint warfare capability and training. 


Q. What’s the plan? China is so much bigger than Taiwan militarily.



A. We are very much supporting, in line with President Ma [Ying­jeou]’s ideas, the construction of a small, strong and superb armed forces for the Republic of China [ROC, or Taiwan]. We have come up with a consensus that we cannot conduct an arms competition with the PRC, given the fact the PRC’s military capability has grad­ually been enhanced over the past two decades. They have double­digit defense budget allocations, and obviously the balance of power has tipped toward them.



They are still a great threat to Taiwan, including the fact there are 1,400 missiles deployed against Taiwan.

Therefore, we are small and they are big; they are strong and we are not in a position to conduct an attrition campaign with Beijing during a war. Our military objective is to deter and defeat enemy attacks while they are crossing the Taiwan Strait, and to prevent amphibious landings on Taiwan. That is our primary objective for our national defense. 



Q. There was a lot of talk of a new “porcupine strategy” last year. Is that a seri­ous consideration?



A. In a way, President Ma has already emphasized the “hard ROC” defense, meaning that it will be difficult for the enemy to chew up, to swallow and to crush Taiwan. It means nobody, including China, will have the capability of stepping over and putting their foot on the island with the intention of occupying it. So that is the foundation for our defense strategy and military planning.



There is a wide range of consensus among citizens and officers that we cannot ignore our self-defense. The primary task of our armed forces is to build a strong defense so the government can conduct necessary steps to achieve peace and stability in the Taiwan Strait area. A strong defense is the pillar to support peaceful engagement with Beijing currently being undertaken by the government. 



Q. Has there been a tip in the balance of power across the Taiwan Strait? What is the status of the F-16 request, and will you retire the Mirage 2000 fighters?



A. It’s already tipped over. So we are building both our air defense and putting necessary efforts to maintain air superiority by replacing aging fighter aircraft.



That’s the reason we are going forward with the procurement request for new F-16C/Ds. The current F-16A/B fleet is already beginning to weaken in terms of capability in avionics, and the body structure is facing problems.



We have no other choice. We have a need for a better and more capable fighter jet, such as the F-35, but the U.S. will not provide it under the current policy. So we have to compromise with a request for F-16C/Ds, which will certainly compensate our disadvantages in air power with China.



We are not giving up on the Mirage fleet. It is very much the back­bone of our interception.



An upgrade for the F-16A/B has already been put forward to the U.S. We are requesting F-16C/Ds, and at the same time, we are asking for the upgrade for the A/Bs.



The Indigenous Defense Fighter also needs upgrades in avionics, missile control system and on­board computer. 



Q. What are the implications of a U.S.

denial for new F-16s?



A. It would create gaps in our air defense. We have also put in a request for new Patriot PAC-3 systems for our air defense, and we are upgrading our PAC-2 systems.



The gap is not big, but if we cannot procure new F-16s or upgrade our current fighters, the gap will widen. It will create a further imbalance across the Taiwan Strait, and it encourages Beijing to think that if Taiwan lacks air superiority, it will be less of a problem to conduct an amphibious landing.



So maintaining air superiority will tell Beijing not to think about an amphibious option. We hope the U.S. Congress, the U.S. government and the Pentagon will see that. 



Q. Has the MND re-evaluated the process on how it selects new arms?



A. The MND has conducted a more scientific, objective analysis and discussion about enhancing our joint war-fighting capability, which was very positive.



The process will be based on three factors: first, developing a joint warfare capability; second, emphasizing cost effectiveness; and third, developing requirements for acquisitions of future equipment. These are the three principles that we have come up with in consensus with the Pentagon to calculate and analyze requirements in the future.


We are in the process of formulating priorities for acquisition in the near future. It will be more convenient and more constructive in terms of discussing our needs with the U.S. and allow the U.S. to assist us in getting those weapon systems more efficiently. 



Q. Should the United States be concerned about closer China-Taiwan ties?



A. The positive or proactive engagement between the two sides of the Taiwan Strait has little to do with the Taiwan-U.S. security relationship.

First, the Pentagon and the White House fully understand the importance of fulfilling the commitment articulated by the Taiwan Relations Act.

Second, maintaining Taiwan’s ability to defend itself is conducive to U.S.
national interests in this region.



Three, there is a long history of cooperation between Taiwan and the U.S. in terms of discussing necessary defense and security ties to preserve U.S interests and our interests in the region.

I don’t think the U.S. will misunderstand the requirements and the need to maintain a strong defense relationship with Taiwan. In a way, they encourage the process to build peace, and our objective is also building peace and stability in the region. However, we want to create peace through strength because Beijing continues to threaten Taiwan with the use of military force. 



Q. What about confidence-building measures (CBM) between China and Taiwan?



A. Not in the foreseeable future.
We are still focusing on continued consolidation of a strong and meaningful win-win economic condition for both sides. Unless we create sufficient political trust, it would be difficult to conduct military CBMs. That is why Beijing is pushing for some kind of peace agreement dialogue with the government. That is more important to them than CBMs at this point. 



Q. How will the military manage a major restructuring and streamlining of new arms buys under an increasingly tight defense budget?



A. We are also in the beginning of implementing an all-volunteer force, which will start in 2011 and will take at least four years.



We are not abandoning con­scription at the moment, but are targeting an all-volunteer force by 2015. It’s not a fixed target date, because it was based on the budget allocation announced by the Legislative Yuan in 2007, which was based on 3 percent of gross domestic product and a total budget of $10.5 billion. But the Legislative Yuan only gave us $9.9 billion last year and $9.2 billion this year. It might affect the timetable of implementing an all­volunteer force, acquisition and maintenance. 



Q. In 2001, Washington promised Taiwan eight diesel submarines. What is the status of that offer?



A. The U.S. has given a green light for a thorough study of Taiwan’s submarine requirement. They have agreed to release the congressional notification for phase one [phase two is the build stage].



They agreed that the request for submarines is a meaningful request. So they are going to conduct a feasibility study on how to acquire it. How many submarines are adequate for our Navy, or how to get them, and what types of submarines is not clear yet. 



Q. What message do you want to send to Washington?



A. We need to maintain close constructive contacts and cooperation. We want to continue this process, which will greatly benefit relations on both sides, and we learn a great deal not only in terms of acquisition, but in terms of training. I think training is more important for us. We are in the critical stage of developing and creating our joint warfare capability. I think we have a lot to learn from the U.S. and certainly encourage more opportunities to be available for us to receive the necessary training.

Taipei Gets $6 Billion Arms Package Despite Beijing Threats

Defense News

01/30/2010

Taipei Gets $6 Billion Arms Package Despite Beijing Threats

By Wendell Minnick

SINGAPORE - Taiwan has secured a $6 billion arms package from the U.S. that includes new missiles, helicopters and naval vessels.

The U.S. Defense Security Cooperation Agency (DSCA) released Congressional notifications for the arms package on Jan. 29, just two weeks before the Chinese New Year.

Beijing has expressed outrage and threatened sanctions against U.S. companies connected with the sale. Chinese officials have also indicated the sale would damage military-to-military relations with the U.S.

There are also concerns China could provoke the U.S. militarily. After the release of a $6.4 billion arms sale by Washington in October 2008, there were several naval incidents involving U.S. and Chinese vessels.

This is the first Congressional notification released by the Obama administration, and there have been no new arms deals since President George W. Bush left office. The package contains legacy items held over from the Bush administration.

Package items include:

* 60 UH-60M Black Hawk utility helicopters: $3.1 billion

* 114 Patriot Advanced Capability (PAC-3) missiles: $2.81 billion

* 60 Multifunctional Information Distribution Systems (MIDS): $340 million

* 2 refurbished Osprey-class Mine Hunting Ships: $105 million

* 12 Harpoon training missiles: $37 million

"The administration's long-awaited decision on arms sales was a positive demonstration of U.S. support for Taiwan and its defense," said Mark Stokes, a former Pentagon official responsible for Taiwan. "The decision should give China an opportunity to consider renouncing the use of force to resolve its differences with Taiwan and take tangible steps toward reducing its military posture directed against the island."

Chinese threats to punish U.S. defense companies selling arms to Taiwan places U.S. companies in a difficult position. The sale falls under the Foreign Military Sales (FMS) program office of the U.S. Defense Security Cooperation Agency (DSCA) and U.S. companies often have little choice but to comply.

U.S. defense companies Boeing, General Electric Aircraft, Lockheed Martin, Raytheon and Sikorsky were all named as principle contractors in the Congressional notification.

"I think the threats will have some effect on corporate calculations," said Larry Wortzel, vice chairman of the U.S.-China Economic and Security Review Commission. "But those companies would have thought about that already, or they would not have provided the price and availability data to DSCA, AIT [American Institute in Taiwan] and the Taiwan MoD [Ministry of Defense]."

Wortzel said recent debate in the U.S. government to loosen export controls on defense items to China could be an effort to appease Beijing on the release of arms to Taipei. However, China does not seem to notice.

"If that was part of an Obama administration calculation, the nuance and timing were clearly lost on Beijing," he said. "Of course, those export controls are what limits a lot of what Boeing and Sikorsky can do in China anyway. But if the PBSC [Politburo Standing Committee] and CMC [Central Military Commission) are really pissed, they'll just buy European or Russian even if [U.S.] export controls are loosened.

Missing from the deal was a submarine design/feasibility study promised by the Bush administration. In 2001, Washington offered Taiwan eight diesel submarines, but political issues and locating a builder delayed the sale. The submarine program is divided into two phases - design/feasibility (phase one) and manufacturing (phase two).

"The absence of submarines in the package should send a signal. If Taiwan is serious about submarines, then its time that a political decision be made to embark on a domestic program," Stokes said, now executive director of the Washington-based Project 2049 Institute.

However, many in Taipei and Washington do not think Taiwan has the technical capability to build submarines.

Taiwan has also been pushing for the release of 66 F-16C/D Block 50/52 fighters to replace aging F-5E/F Tigers. Since 2006 the U.S. has continually turned down Taiwan's request for price and availability data. Chinese officials have called the sale of new F-16s to Taiwan a "red line."

The Black Hawk helicopter issue became an urgent case in Taiwan after a typhoon killed over 500 in the central part of the island in August. Taiwan's ageing UH-1H "Huey" utility helicopters were unable to respond to the emergency adequately and U.S Navy helicopters were flown into the disaster area to provide assistance.

The 60 UH-60M Black Hawks will be equipped with T-700-GE-701D engines. Sikorsky and General Electric Aircraft are the principle contractors. Also included in the package are communications and data link systems connected to Taiwan's efforts to upgrade its C4I capabilities under the Po Sheng program.

Also part of the Po Sheng upgrade program is the release of 35 MIDS/Low Volume Terminals-1 and 25 MIDS On Ships Terminals. Taiwan has eight Perry-class frigates, eight Knox-class frigates and four Kidd-class destroyers.

The PAC-3 package includes 114 missiles and three AN/MPQ-65 radar sets. Lockheed Martin and Raytheon are the principle contractors. The release completes a partial PAC-3 package approved in October 2008 by the Bush administration. The PAC-3s will be deployed in central and southern Taiwan to counter China's growing ballistic missile threat now numbering 1,400 missiles.

Taiwan's navy has been waiting for the release of two Osprey-class Mine Hunting Ships since 2001. The deal will include an overhaul of the AN/SQQ-32 sonar. A Chinese naval blockade using sea mines has been a concern in Taiwan since the early 1990s.

The Harpoon portion of the package only contains training missiles, two ATM-84L and ten RTM-84L missiles. The prime contractor is McDonnell Douglas, a Boeing subsidiary. Taiwan uses both ship-based and aircraft-launched Harpoon missiles. These missiles are supplemented by Taiwan's locally designed and built Hsiung Feng (Brave Wind) anti-ship missiles, which are deployed along the western coast of the island and outfitted on naval vessels.