This CRS Report discusses U.S. arms sales to Taiwan, or Republic of China (ROC), including policy issues for Congress and current 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 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. For 2001, U.S.-Taiwan annual arms sales talks took place on April 24. According to the Administration and various news reports, President George W. Bush approved Taiwan's request for diesel-electric submarines (perhaps a German or Dutch design with U.S. technology), P-3 maritime search/anti-submarine aircraft (linked to the submarine sale), 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. Several policy issues are of concern to Congress for legislation, oversight, or other action. One policy issue concerns the effectiveness of the Administration in assisting Taiwan's defense as Taiwan faces the People's Liberation Army's (PLA) missile buildup and arms acquisitions, primarily from Russia. Another issue is the role of Congress in determining arms sales to Taiwan. A third issue is how to conduct discussions with Taiwan on arms sales, after President Bush dropped the annual arms talks. This CRS Report concludes with a table on U.S. sales of major defense articles and services to Taiwan, proposed in Letters of Offer and Acceptance, and notified to Congress since 1990. this list includes the date of notification, major item proposed for sale, and estimated value of the defense package.


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