This CRS Report discusses U.S. arms sales to Taiwan, or Republic of China (ROC), including policy issues for Congress and legislation. The Taiwan Relations Act (TRA), P.L. 96-8, has governed U.S. arms sales to Taiwan since 1979, when the United States recognized the People's Republic of China (PRC) instead of the ROC. Despite the absence of diplomatic relations, U.S. arms sales to Taiwan have been increasingly significant. Moreover, in addition to transfers of hardware, the United States has expanded military exchanges with Taiwan after the PRC's missile exercises in 1995-1996, and the Pentagon has conducted assessments of Taiwan's defense needs. In 2001, U.S.-Taiwan annual arms sales talks took place on April 24. According to the Administration and news reports, President George W. Bush approved Taiwan's request for diesel- electric submarines, P-3 maritime search/anti-submarine aircraft, 4 decommissioned U.S. Kidd-class destroyers, and other items. He also deferred approval for Aegis-equipped destroyers and other items, while denying other requests. Since the U.S. decisions on Taiwan's requests in 2001, attention has increasingly turned to Taiwan, where the military, civilian officials, and legislators from various political parties have debated contentious issues about how much to spend on defense and which weapons systems to acquire, despite the increasing threat from the People's Liberation Army (PLA). One policy issue of concern to Congress is the effectiveness of the Administration in assisting Taiwan's defense as Taiwan faces the PLA's missile buildup and arms acquisitions, primarily from Russia. Another issue concerns whether trends in the Taiwan Strait are stabilizing or destabilizing and whether the United States should review its policy toward providing advanced arms sales to and enhancing relations with Taiwan's military. This CRS Report concludes with a table on U.S. sales of major defense articles and services to Taiwan since 1990.


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