Saturday, December 22, 2007

Taiwan?

Taiwan's Legislature has approved a starting budget for the island to acquire their first submarines. Electric Boat is awaiting approval from Congress to bid on the project, and has already set aside a sizable R&D budget for design of the boats.

Normally, being a free market economist, I would encourage Congress to make allow this sale to boost both the national security of a key ally in Asia as well as create jobs that will boost the American economy. This time I find myself in the quandry of international politics. As beholden as we are to protect the island of Taiwan if China attacks or makes other offensive moves, I can only see US supplies of submarines to Taiwan as a irritant that China will make at least overtly hostile gestures. It will only inflame the tensions already present in the region, requiring greater than normal US presence to deter an actual hostile act. Given the level of our other commitments at this time, I am not sure we would have the forces to meet all of our commitments if this came to pass.

Further China is growing trading partner in its own right, a powerful economic force in our economy. Beijing's movement towards capitalism needs to be encouraged while maintaining diplomatic pressures to allow Taiwan to remain an independent state. Supplying subs to Taiwan could damage relatons with China in many ways and needs to be carefully considered before we permit it.

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