Taiwan's Defence Ministry will ask the U.S. to extend LOA signing deadlines for a weapons package as parliament remains stalled over a $40 billion special defence budget. Draft LOAs for TOW missiles, Javelins and M109A7 howitzers are valid until March 15, with an initial payment due March 31. Officials warn delays could push Taiwan's orders back in supplier queues or lead to cancellations, while U.S. officials and senators urged Taipei to approve the funding promptly.
Taiwan Seeks US Extension on Arms-Deal Deadlines as Parliament Blocks $40B Defence Budget
FILE PHOTO: A US-made TOW-2A wire-guided anti-tank missile is launched by Taiwanese soldiers from a M1167 TOW carrier vehicle at the Fangshan training grounds in Pingtung, Taiwan, August 26,2024. REUTERS/Ann Wang/File Photo
TAIPEI, Feb 6 — Taiwan's Ministry of National Defence said on Friday it will ask the United States to extend the deadline to sign Letters of Offer and Acceptance (LOAs) for a package of U.S. weapons as parliament remains deadlocked over a proposed $40 billion special defence budget.
President Lai Ching-te proposed the $40 billion package last year to strengthen Taiwan's deterrence amid rising pressure from China, which considers the island part of its territory. The opposition-controlled legislature has advanced alternative, lower-cost proposals that would only fund portions of the planned U.S. purchases.
The defence ministry said it received draft LOA price proposals from the U.S. government that are valid until March 15 for TOW anti-tank missiles, Lockheed Martin-produced Javelin anti-armor missiles, and M109A7 self-propelled howitzers. An initial instalment on the procurement is due by March 31.
The ministry warned that if parliament fails to approve the spending and the LOAs are not signed in time, suppliers could move other customers' orders ahead in production queues or the cases could be cancelled. It said it has coordinated closely with U.S. counterparts on required items and confirmed key factors such as sellers' willingness, production capacity and delivery schedules.
Political Standoff and International Reactions
The main opposition Kuomintang (KMT), which sent a delegation to Beijing this week, says it supports stronger defence but insists on rigorous scrutiny and will not sign "blank cheques." The defence ministry urged lawmakers to complete their review promptly so Taiwan's armed forces can "build up capabilities and prepare for combat, deter aggression, and safeguard national security."
U.S. officials have expressed support for Taiwan's effort to boost defence spending. "As the State Department and AIT have repeatedly stated publicly, and we've made clear to Taiwan counterparts, we welcome Taiwan's announcement of a $40 billion special defence procurement budget," a State Department spokesperson told Reuters. The American Institute in Taiwan (AIT) serves as the de facto U.S. mission on the island.
Lawmakers in Washington have also voiced frustration. U.S. Senators Jim Risch and Jeanne Shaheen, respectively the Republican chair and top Democrat on the Senate Foreign Relations Committee, said they were "deeply disappointed" the budget remained stalled and urged Taiwan's parties to work across lines to fully fund self-defence. They warned recent Chinese military exercises, including drills simulating a blockade of Taiwan, underscored the urgency of timely defence investments.
"The Ministry of National Defence will actively seek an extension from the U.S. side for the LOA signing validity period to avoid the entire case being cancelled due to a failure to sign within the deadline," the ministry said.
Reporting by Ben Blanchard; additional reporting by Michael Martina and David Brunnstrom in Washington; edited by Raju Gopalakrishnan and Will Dunham.
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