Taiwan Goal Could Be Sequel of La Fayette Scandal

News Analysis

Taiwan Goal Could Be Sequel of La Fayette Scandal

Sources: Taipei newspapers

March 4, 2008

In December 2006, the military in Taiwan was preparing to dispatch staff to France to attend an annual meeting, titled “Hua Pi”, with their French counterparts. A week before this scheduled trip, three Europeans suddenly appeared at the Ministry of National Defense (MND). One of them was a four-star general in the French military, and the other two were special consultants of the French Presidential Office and Foreign Ministry, respectively. Their appearance at the MND of Taiwan was highly secretive. This was the very beginning of Taiwan Goal Corporation, which eventually dropped a bombshell in Taiwan’s politics.

According to informed sources, the three high-level French officials visiting Taiwan attended a meeting presided over by Vice Defense Minister Ko Cheng-heng at the MND. French representatives unexpectedly and actively expressed France’s willingness to provide post-sale capability upgrades for Taiwan’s La Fayette class frigates and Mirage fighter jets. Taiwan’s representatives also made inquiries about the possibility of installing ASTER anti-aircraft missiles on Taiwan’s six La Fayette class frigates. Because the French representatives were unwilling to lower the price for that equipment, Taiwan’s representatives did not promise to go on with the procurement. However, both sides signed a memorandum regarding the future military procurement and exchanges between Taiwan and France following the meeting. A week after that meeting, Taiwan dispatched representatives to Paris to talk about subsequent matters. In 2007, high-level officials in Taiwan’s military assigned Wu Wei-rong, Director of Armaments Bureau at the MND, to secretly visit France four more times. On two of his four visits to France, Wu was accompanied by Vice Defense Ministers Ko Cheng-heng and Lin Yu-pao, while paying visits to the high-ranking officials in the French military. As a result of these trips Taiwan Goal was secretly established in the beginning of 2008.

The press reports indicate that ranking officials of both governments involved in the French military procurement were not limited to military personnel. Informed sources say that representative from French Presidential Palace also participated in the 2006 meeting, showing that several military procurement deals had been decided by high-ranking officials of both governments and that the military in Taiwan just followed orders. The same sources warn that if all the facts of the Taiwan Goal case were unveiled completely, it would not only cause a commotion in Taiwan’s politics, but also lead to a scandal in the French military and government. Those who are involved in the Taiwan Goal case might even be in risk of losing their lives because they would be an obstacle to others in making a fortune. Therefore, Taiwan Goal may become a sequel to the La Fayette scandal.

The same sources indicate that what has come to light in the Taiwan Goal case, namely, the industrial offset with respect to the procurement of twelve P-3C anti-submarine patrol aircraft being questioned in many circles, is the smallest portion of benefits in all cases that Taiwan Goal is involved. Those military officials involved in Taiwan Goal intend to cover their military procurement from France by means of military procurement from the US in order to justify the establishment of Taiwan Goal. In fact, the largest area of benefit-trading is the military procurement through commercial sales from France, including installing ASTER missiles and upgrades for Mirage fighter jets.

The informed sources estimate that if the procurement project is forced to be halted, it would be difficult for the DPP government to face the French government. One way to assuage French’s dissatisfaction is through a political solution. The option of replacing the Defense Minister (Lee Tien-yu) might be one way to gain forgiveness from France. If France suffered losses, the DPP government would adopt a strategy of budgeting and try to get it approved in the Legislative Yuan. The DPP administration could then put blame on the Legislative Yuan for not passing the budget. Less than three months before President Chen finishes his tenure, the highest authorities still make changes in the posts of high-ranking military officials with no regard to the consequences. It is believed that the highest authorities are likely to adopt this option.

Attachment : none