00:00After months of deadlock and debate over several competing proposals, Taiwan's opposition-controlled
00:05legislature has passed a compromised special defense budget plan for 25 billion U.S. dollars.
00:25The final version is smaller than President Lai Qingda's record-40 billion U.S. dollar
00:33budget proposed last November.
00:35Lawmakers from the ruling Democratic Progressive Party say reduced military spending could
00:40create vulnerabilities in Taiwan's defensive capabilities, especially at a time when China
00:44is stepping up its aggression towards the country.
00:46In this period, China has not stopped the threat to Taiwan.
00:50In the beginning of 2013, China has its overall growth rate of 7% every year.
00:57When we face this threat, there is a standard of 3,800 billion U.S. dollars, which is
01:10the threat to our national security, the threat to our industry development.
01:16The $25 billion U.S. dollar defense bill will fund a major $11 billion arms package announced
01:21last December, as well as another expected sale later this year, as long as Taipei receives
01:26a formal letter of offer and acceptance from Washington.
01:29It also includes provisions that could potentially allow for further funding of weapons, but that
01:34might depend on Taipei's ability to secure offer letters in advance of approving more spending.
01:38The bill's passage comes amid growing U.S. pressure for Taiwan to pass a special defense
01:42budget.
01:43It also comes ahead of a pressing payment deadline for U.S.-made HIMARS artillery systems, which
01:47had been pushed from March to later this month.
01:50Now that the bill has passed its third reading, it goes to President Lai, who needs to approve
01:54it before it goes into effect.
01:55While the compromise bill clears a major political hurdle, debates over how much Taiwan should spend
02:00on defense are likely to continue as pressure from Beijing continues to rise.
02:04Yixin Chen and Lai Luciano for Taiwan Plus.
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