China pressuring U.S. on weapons deals

Editor's Note: The following report is excerpted from Joseph Farah's G2 Bulletin, the premium online newsletter published by the founder of WND. Subscriptions are $99 a year or, for monthly trials, just $9.95 per month for credit card users, and provide instant access for the complete reports.

Taiwan is interested in F16s

The Obama administration has signaled that it may lift its hold on sales of essential military equipment to Taiwan, and Taiwan sources report they expect a formal decision any time, but China is responding with implied threats of retaliation if a deal is announced, according to a report from Joseph Farah's G2 Bulletin.

The issue arose just three weeks after President Obama was in China in an effort to get U.S.-Chinese relations back on course.

Indication of a new arms package for Taipei comes from Taiwan and U.S. sources, although nothing has been announced. An announcement was to come after the return of Obama from Copenhagen, where he helped negogiate an international climate change agreement.

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China resumed its military-to-military discussions in June with the visit to Beijing by U.S. Under Secretary of Defense for Policy Michele Flournoy. At the time, China, which previously had cut off such discussions, warned Flournoy against resuming arms sales to Taiwan.

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Then, in July, China repeated its demands when Secretary of State Hillary Clinton visited Beijing.

While Obama's recent trip to China centered on trade and not Taiwan, U.S. officials have begun to make known the possible arms package set for Taiwan. The concern is that China may not only halt military-to-military discussions again but take other punitive action in protest of the possible sale.

It, therefore, is more than coincidental that the Chinese in recent days have warned the U.S its ability to continue buying U.S. Treasuries to offset the American deficit was limited. The Chinese are the largest holder of American Treasury debt.

The Obama administration, however, already is on record supporting ongoing policies toward Taiwan, including backing for the Taiwan Relations Act, which pledges U.S. help in maintaining Taiwan's defensive capabilities.

"I can assure you this administration will not waiver in its commitment to provide those defense articles and services necessary for Taiwan's defense," said Assistant Secretary of Defense Chip Gregson.

Acting deputy assistant secretary of State for Defense Trade, Robert Kovac, affirmed an arms package was being put together.

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He said the package would include Blackhawk helicopters, additional Patriot missiles for island defenses, additional command-and-control systems and assistance with building new submarines.

For some time, Taiwan has sought about 60 Blackhawk helicopters and the submarines.

Other sources made clear, however, that the U.S. arms sales package would not include completed submarines, indicating Taiwan would be provided with the means to make its own.

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