This report, updated as warranted, discusses U.S. security assistance 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 or a defense treaty, U.S. arms sales to Taiwan have been increasingly significant. In addition, the United States has expanded military ties with Taiwan after the PRC's missile firings in 1995-1996. At the U.S.-Taiwan arms sales talks on April 24, 2001, President George W. Bush approved for possible sale diesel-electric submarines, P-3 anti-submarine warfare (ASW) aircraft, 4 decommissioned U.S. Kidd-class destroyers, and other items. Bush also deferred decisions on Aegis-equipped destroyers. Since then, attention has turned to Taiwan, where the military, civilian officials, and legislators from competing political parties have debated contentious issues about how much to spend on defense and which U.S. weapons systems to acquire, despite the increasing threat (including a missile buildup) from the People's Liberation Army (PLA). In Feb 2003, the Administration pointed Taiwan to three priorities for defense: command and control, missile defense, and ASW. The Administration and others have questioned Taiwan's seriousness about its self- defense, level of defense spending, and protection of secrets. U.S. officials have strongly urged Taiwan's legislature to pass a Special Budget (re-submitted in early 2005 at US $15.5 billion) for PAC-3 missile defense systems, P-3C ASW aircraft, and submarines. This Report concludes with a table on major defense sales to Taiwan since 1990.


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