Kuo-Cheng Chiu: Signing LOAs without Special Budget Approval is the True 'Blank Authorization'
Taiwan's Minister of National Defense, Kuo-Cheng Chiu, clarified that signing Letters of Offer and Acceptance (LOAs) for US arms without prior legislative approval of a special defense budget is not a 'blank authorization.' He emphasized that the NT$1.25 trillion budget over eight years is based on US willingness to sell and schedule, and lessons from the Ukraine war, such as drone capabilities, are incorporated.
📋 Article Processing Timeline
- 📰 Published: May 6, 2026 at 11:28
- 🔍 Collected: May 6, 2026 at 11:31 (3 min after Published)
- 🤖 AI Analyzed: May 6, 2026 at 12:04 (33 min after Collected)
Central News Agency
(Central News Agency reporter You Kai-hsiang, Taipei, 6th) Regarding questions about the national defense special budget bill being a "blank authorization," Minister of National Defense Kuo-Cheng Chiu stated today that the Executive Yuan's version of the NT$1.25 trillion budget over 8 years is planned based on the US's willingness to sell and schedule. If the bill and budget were to be passed only when a Letter of Offer and Acceptance (LOA) is obtained, it would be extremely rushed. The current version ensures operational resilience; if the special budget lacks support and requires signing LOAs case by case, it could become a "blank authorization."
The Legislative Yuan's Foreign Affairs and National Defense Committee invited Kuo-Cheng Chiu for a work report and interpellation this morning.
Regarding issues related to the national defense special budget, Kuo-Cheng Chiu stated in an interview before the meeting that he has repeatedly explained that the Executive Yuan's version (NT$1.25 trillion over 8 years) was planned after two years of consultations, with the US providing formal documents including willingness to sell, project timelines, and transaction amounts. The Ministry of National Defense also provided full explanations in a confidential report.
Responding to external doubts about it being a "blank authorization," Kuo-Cheng Chiu mentioned that in the past, after obtaining the US's willingness to sell, projects were included in the budget and reviewed. If the US had not yet gone through the congressional notification process after the review, Taiwan would include it in a confidential budget; otherwise, it would be made public. Additionally, after the US announces an LOA, Taiwan generally has about 45 days to pay the first installment. If the LOA is obtained at the same time as the need to pass the bill and budget, it would be extremely rushed. If not passed, it could become a "blank authorization."
Kuo-Cheng Chiu cited the procurement of the HIMARS multiple rocket launch system within the national defense special budget as an example. When the US issued the LOA for this case, the Legislative Yuan had not yet passed the national defense special bill and budget. Therefore, the Legislative Yuan specifically authorized the Ministry of National Defense to sign the LOA with the US first. Thus, if the budget is not passed in the future, it would require special authorization from the Legislative Yuan each time to sign an LOA first. "My feeling is, that is truly a blank authorization," he said.
Kuo-Cheng Chiu also mentioned that Taiwan is drawing lessons from asymmetric warfare and the use of emerging technologies like unmanned vehicles in the Ukraine war and the US-Iran conflict, while also comparing defense operational needs and similarities/differences in the Taiwan Strait situation. The reason why Ukraine's drone capabilities played an important role in the Russia-Ukraine war is because it simultaneously built autonomous capabilities to maintain operational resilience. This is why the national army must include drones in the special budget.
Kuo-Cheng Chiu finally emphasized that the Executive Yuan's NT$1.25 trillion amount is planned based on overall needs and long-term discussions, and its content is not only military procurement but also includes forming overall combat capability through commissioned production and commercial procurement. He appealed to legislators across party lines for support.
Regarding the indigenous submarine prototype "Hai Kun" (Narwhal) departing yesterday for diving tests, Kuo-Cheng Chiu stated that related test items are being gradually conducted according to test procedures. CSBC Corporation and the Navy will carry out equipment inspection and calibration under safe and quality-assured conditions. Since there are many items, he would not explain them one by one. If there is concrete progress, CSBC Corporation will make appropriate announcements. (Editor: Su Chih-chung) 1150506
Stand with facts. Your sponsorship is the power to protect press freedom.
Download the Central News Agency "First-Hand News" APP to stay updated.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.
(Central News Agency reporter You Kai-hsiang, Taipei, 6th) Regarding questions about the national defense special budget bill being a "blank authorization," Minister of National Defense Kuo-Cheng Chiu stated today that the Executive Yuan's version of the NT$1.25 trillion budget over 8 years is planned based on the US's willingness to sell and schedule. If the bill and budget were to be passed only when a Letter of Offer and Acceptance (LOA) is obtained, it would be extremely rushed. The current version ensures operational resilience; if the special budget lacks support and requires signing LOAs case by case, it could become a "blank authorization."
The Legislative Yuan's Foreign Affairs and National Defense Committee invited Kuo-Cheng Chiu for a work report and interpellation this morning.
Regarding issues related to the national defense special budget, Kuo-Cheng Chiu stated in an interview before the meeting that he has repeatedly explained that the Executive Yuan's version (NT$1.25 trillion over 8 years) was planned after two years of consultations, with the US providing formal documents including willingness to sell, project timelines, and transaction amounts. The Ministry of National Defense also provided full explanations in a confidential report.
Responding to external doubts about it being a "blank authorization," Kuo-Cheng Chiu mentioned that in the past, after obtaining the US's willingness to sell, projects were included in the budget and reviewed. If the US had not yet gone through the congressional notification process after the review, Taiwan would include it in a confidential budget; otherwise, it would be made public. Additionally, after the US announces an LOA, Taiwan generally has about 45 days to pay the first installment. If the LOA is obtained at the same time as the need to pass the bill and budget, it would be extremely rushed. If not passed, it could become a "blank authorization."
Kuo-Cheng Chiu cited the procurement of the HIMARS multiple rocket launch system within the national defense special budget as an example. When the US issued the LOA for this case, the Legislative Yuan had not yet passed the national defense special bill and budget. Therefore, the Legislative Yuan specifically authorized the Ministry of National Defense to sign the LOA with the US first. Thus, if the budget is not passed in the future, it would require special authorization from the Legislative Yuan each time to sign an LOA first. "My feeling is, that is truly a blank authorization," he said.
Kuo-Cheng Chiu also mentioned that Taiwan is drawing lessons from asymmetric warfare and the use of emerging technologies like unmanned vehicles in the Ukraine war and the US-Iran conflict, while also comparing defense operational needs and similarities/differences in the Taiwan Strait situation. The reason why Ukraine's drone capabilities played an important role in the Russia-Ukraine war is because it simultaneously built autonomous capabilities to maintain operational resilience. This is why the national army must include drones in the special budget.
Kuo-Cheng Chiu finally emphasized that the Executive Yuan's NT$1.25 trillion amount is planned based on overall needs and long-term discussions, and its content is not only military procurement but also includes forming overall combat capability through commissioned production and commercial procurement. He appealed to legislators across party lines for support.
Regarding the indigenous submarine prototype "Hai Kun" (Narwhal) departing yesterday for diving tests, Kuo-Cheng Chiu stated that related test items are being gradually conducted according to test procedures. CSBC Corporation and the Navy will carry out equipment inspection and calibration under safe and quality-assured conditions. Since there are many items, he would not explain them one by one. If there is concrete progress, CSBC Corporation will make appropriate announcements. (Editor: Su Chih-chung) 1150506
Stand with facts. Your sponsorship is the power to protect press freedom.
Download the Central News Agency "First-Hand News" APP to stay updated.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.