ROC (Taiwan) Page 1 Part I Special Focus: ROC (Taiwan

Epicos S.A. 2011 ROC (Taiwan) Volume 3 Number 16 – Wednesday, 20 April 2011
Part I Special Focus: ROC (Taiwan) 1. Special Focus: ROC (Taiwan) 2. ROC’s New Defence Dogma and Defence Procurements 3. Epicos “Industrial Cooperation and Offset Projects” 4. Technology transfer in the area of UAV Simulation & Training
5. Network Documentation System for military optical fiber networks 6. Epicos‐ Amazon Part II Epicos Newsroom 1. Dutch govt cuts tanks, jets, jobs in defence savings 2. Market: Energy stocks take beating on oil fears 3. Boeing, Australia Announce Order for 5th C‐17 Globemaster III 4. OPEC marginally raises global oil demand forecast for 2011 5. Brazil to decide on Russian helicopters supplies by end of month
© Epicos Informational Services Page 1 Epicos S.A. 20
011 ROC (Taaiwan) Speciall Focus: ROC (Taiwa
an) ROC’s defence d
bud
dget for the period 2000‐200
06 faced n
resources limitations to the applications of overall national nancial integgrity and th
herefore waas kept law
w. This and fin
tendency was alteered in 200
07, when pu
ublic supporrt and o gradually exceed e
government policy guidance eenabled it to
2009. A 300 billlion ROC dollars. This waas further reiinforced in 2
combin
nation of go
overnmental financial consideration
ns and policcies of econo
omic stimulu
us resulted in
n a defence budget of 31
18.6 billion R
ROC dollars. Additionally,, there is a political com
mmitment from the ROC
C’s governme
ent that the national deffence budget in the futu
ure will dually reach 3% of GDP (Gross Domeestic Producct). Howeverr, overall millitary require
ements will be the grad
outm
most regulattor as possib
ble threats and potential force developments sch
hedules could result in aa more effective and divversified allo
ocation of ressources. ROC
C’s Defence budget is allocated into three categories:: “personal maintenan
nce”, “operaational main
ntenance” and “military investments”. Personal maintenancce includes ssalaries, retirrement fund
ds, and subssidies for military m
dependants etcc. Opeerational maintenancee includees prim
mary c
combat equipmen
nt main
ntenance, operationaal trainingg, logisstic preparration and other waar fightting cap
pability sustainmen
nt Military proccedures. investmentts inco
orporate pro
ocurements, research an
nd developm
ment of defeensive weapons and military projectts. For 2009
9 from the 318.6 billion
n ROC dollars defence budget, personnel main
ntenance acccounted for 125.7 billio
on, operational maintenaance accoun
nted for 95.9,, whereas 90
0.5 billion wh
here allocate
ed to investm
ments. Desp
pite the fact that defence budget willl be gradually increase aand reach 3%
% of GDP, RO
OC’s authoritiies will be try to carefully restructurre the funds allocated in every catego
ory in order to create feaasible, appro
opriate b
Futture personaal maintenaance funds will w continu
ue to focus on implem
menting and practical budgets. “voluntaarism”, the nation’s m
major military system
m. The differencce between
n conscriptio
on and voluntarism iss that troops are conscripteed by obligattion in consccription whilsst they olunteering in voluntarism. Operaational are enliisted by vo
maintenance will fo
ocus on enh
hancing equipment read
diness, maintain
ning existing war fightingg capabilities. Military investmentss will be baased on the core objecttive of ng the overaall joint operaation capabilities of the armed enhancin
forces taaking into co
onsideration the maximizzation of resources and th
he ROC’s procurements dogmaa of “domestic procurem
ment first, foreign procu
urement seccond”. This means nt will have an addition
nal criterion,, the develo
opment of domestic d
ind
dustrial thatt armament procuremen
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Page 2 Epicos S.A. 2011 ROC (Taiwan) capabilities through the award of defence procurements in local companies or through industrial cooperation and technology transfer initiatives. Throughout the last years, ROC located a significant amount of funds in the development of armed forces. New technologically advanced weapons have been procured and the national defence capabilities have been enhanced. This modernisation will continue and it remains to see the results. Kyriazis Vasileios, Epicos Newsletter Head Editor © Epicos Informational Services Page 3 Epicos S.A. 20
011 ROC (Taaiwan) ROC’s N
New Defeence Dogm
ma and Deefence Pro
ocuremen
nts ROC Constitution C
indicaates that the nation
nal defence aaims at defe
ending the nation's securiity and safegguard world peace. Under this n's defence concepts, military notion
n, the nation
m
strateegies, militarry build up, and a objectivves are form
mulated to reepel any hosstile movemeents from itss neighbourss and if this iis able to pre
event them. Thus, the basic objectiives of ROC’ss defence do
octrine are to
o "prevent w
war," "defend
d the homelaand," and "co
ounter orism”, resp
pond to con
ntingencies" whereas th
he higher strategic goal is "effectivve deterrencce and terro
reso
olute defencee". This will be succeedeed with the e
establishmen
nt of a qualitty self‐defen
nsive force caapable of counterattackk. Additionally, in recentt years emp
phasizes has been given to "quick victories at standoff ory on first eengagement", somethingg that had m
modified the defence pro
ocurements of the rangge, and victo
coun
ntry. In order o
to matterialize the aforementio
oned strateggic goal ROC
C authorities allocated th
hroughout th
he last yearrs a vast amount of fund
ds to enhancce its defencce capabilitiees, somethin
ng that creatted a raft of major arms acquisition
ns. USA madee equipmentt took the lio
on’s share an
nd it was follo
owed by Gerrman equipm
ment. Onee of the defeence system
ms that ROC procured frrom USA waas (144) Stan
ndard Missile‐2MR SAM
Ms. The delivvery of the m
missiles conccluded in 201
10. Additionaally, ROC pro
ocured in 200
09 (182) FGM
M‐148 Javelin Anti‐
tankk missiles fo
or 29 million
n US dollarss. With thesse purchasess national aarmed forcess had significantly augm
mented their ballistic missiles capabiilities. Also
o, ROC procu
ured (90) MTTU‐4000 Dieesel engines from Germany. The delivery was concluded c
in 2010. The total amoun
nt of the pro
ocurement w
was 149 million US dollarrs. The engin
nes were use
ed in the KH‐6 fast AC) produceed in ROC. The T aforeme
entioned pro
ocurement h
has considerrably updateed the attack crafts (FA
marrine capabilitties of the arrmed forces and in accorrdance with the defencee doctrine of “quick victo
ories at stan
ndoff range, aand on first eengagementt". © Ep
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Page 4 Epicos S.A. 2011 ROC (Taiwan) Finally, in 2010 ROC authorities decided to purchase (60) S‐70/UH‐60L Blackhawk Helicopter from Sikorsky. When the Blackhawk Helicopter will be ready to operate they will significantly improve the capability of the army to perform assault operations together with the simultaneous upgrading of their strategic airlift. This is extremely important especially in areas of particularly difficult access to other means. Apart from the aforementioned parameters a new factor should be taken into consideration when studying ROC’s defence procurements. In the face of the global wave of reforms in military affairs and owning to the integration of a social dimension in the armed forces, procurements would be connected with societal changes. Under this notion, the utility of defence resources allocation should account for the nation's overall economic development and benefit, so that the defence establishment can boost the realisation of domestic economic profit. Kyriazis Vasileios, Epicos Newsletter Head Editor © Epicos Informational Services Page 5 Epicos S.A. 20
011 ROC (Taaiwan) Epicos “In
ndustrial Cooperatiion and O
Offset Projjects” Epiccos " Industriial Cooperation and Offsset Projects "" provides a unique set of onlinee tools enabling the structure
e, identificcation and hensive Offssets program
ms, through a searchable database. By implementation of compreh
oducing diffeerent offset projects an
nd ideas proposed by local A&D ind
dustry it ensures the opttimum intro
costt for Prime Contractors and reassuress that the priorities of loccal industry are fully mett… For Further Information Presss Here hnology tran
nsfer in the aarea of UAV Simulation &
& Training Tech
A company with experiience and p
A products in the UAV do
omain, p
proposes a collaboratio
on/transfer o
of technologgy project with w
a c
company wh
ho excels in the simulation and train
ning field. Th
he aim w be to au
will ugment the current prod
ducts/service
es portfolio of the c
company and
d to address specific locaal Armed Forrces requirem
ments. T
The in‐house
e UAV produ
ucts of the co
ompany will be integrateed into the simulation software (or a derivative of it) of the expert in thee field and co
over/address all aspects of the ociated train
ning: pilots training, payload p
han
ndling training, mission
n rehearsal (Reconnaisssance, asso
Elecctronic Warfaare –EW‐ and “Killer Sco
out” scenario
os), as well as combined missions witth other plattforms in th
he field (aircrraft, land and
d maritime fforces). For Further Information Con
ntact our ICO
O Department Mail at: g‐menexxis@epicos.ccom Netw
work Docum
mentation Syystem for military opticaal fiber networks A ccompany speecializing on the high‐preecision opticcal passive d
devices, equipment and
d fiber opticc network systems, in thee frame of an offset program, is proposing its Advanced N
Network Documentation System for implementattion within m
military ense organizzations optical fiber neetworks. This system maay be of inteerest to Defe
nt and mainttenance of su
uch networkks. or companies aactive in the developmen
For Further Information Con
ntact our ICO
O Department Mail at: g‐menexxis@epicos.ccom © Ep
picos Information
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Page 6 Epicos S.A. 20
011 ROC (Taaiwan) Epicos‐ A
Amazon Secu
urity Challen
nges and Military Politiccs in East Assia: From Staate Building to P
Post‐Democratization, byy Jongseok W
Woo This comparative work examines the political ro
ole played byy armed forcces in South Korea, Indonesia, the t Philippin
nes, and Taiwan. The work w
brings ttogether the
eory and em
mpirical study, analyyzing how seecurity threaats have shaaped the miilitary's organization, do
octrine, and domestic political role at various stages of o political d
development, from the state‐
building peeriod to tod
day's post‐democratization era. Ussing four re
epresentativee case studies, Wo
oo sets to answer: What determines the armed fforces' politiccal influencee? How does it affeect political developmen
nt? How do
o democraticcally elected
d leaders esttablish civilian conttrol over them? ovation and the State: Political P
Cho
oice and Straategies for Growth G
in Issrael, Taiwan, and Ireland, by Inno
Dan
n Breznitz The 1990s b
brought surp
prising indusstrial develop
pment in em
merging econ
nomies around the globe: firmss in countriess not previou
usly known ffor their high
h‐technologyy industries m
moved to the foreffront in new Information
n Technologiies (IT) by ussing differen
nt business m
models and carvingg out unique positions in
n the global IT productio
on networkss. In this boo
ok Dan Breznitz askks why econ
nomies of different countries develop in different ways, and a his answer relies on his exhaustive e
re
esearch into
o the comparative expe
eriences of Israel, Taiwan, and
d Ireland—sttates that maade different choices to nurture the growth of ttheir IT industries. © Ep
picos Information
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Page 7 Epicos S.A. 20
011 ROC (Taaiwan) Epicos‐ Newsrooom Dutcch govt cuts tanks, jets, jobs in defence savings
The Dutch goverrnment said on Friday it would cut ab
bout 12,000 defence min
nistry jobs an
nd erity push. Th
he cuts scalee back its fleeet of tanks aand fighter jeets to save aabout 1 bln eeuros as partt of an auste
are part of a bro
oader plan to
o slash 18 bln
n euros... Source: Newspaaper Direct, EEpicos To read the full aarticle press here oil fears Marrket: Energy stocks take beating on o
Befo
ore Wall Strreet’s openin
ng, stock‐ind
dex futures had followeed global sttocks lower on worries about Euro
ope’s debt crrisis and new
ws that Chinaa raised reserve requirem
ments for its banks and in
ndicated monetary tighttening would
d... Source: Newspaaper Direct, EEpicos To read the full aarticle press here e Order for 5
5th C‐17 Glob
bemaster III
Boeing, Australiia Announce
LON
NG BEACH, Calif., C
April 18, 1 2011 ‐‐ Boeing B
[NYSSE: BA] anno
ounced todaay that the Commonwea
C
alth of Austtralia has siggned an agreement with the U.S. govvernment to acquire a fiftth Boeing C‐‐17 Globemaaster III airliffter. The Forreign Militaryy Sale allowss the Royal A
Australian Airr Force (RAA
AF) to expand
d its C‐17 fleeet as it facees an increased demand ffor humanitaarian and dissaster relief m
missions. RAA
AF C‐17s supp
ported relieff efforts to eaarthquake‐ aand tsunami‐‐affected reggions in Japan under Opeeration PAC
CIFIC ASSIST for nearly tw
wo weeks in
n March. The RAAF delivvered perso
onnel and more than 1 million m
pounds of cargo
o ‐‐ includingg food and w
water, vehicles, disaster relief equipm
ment, and p
pumps to hellp cool nuclear poweer plant. Weeeks earlier, tthe RAAF supported relieef efforts in Christchurch
h, New the Fukushima n
Zealland, following an earthquake theree, and to sevveral commu
unities in Queensland, Australia, thatt were affected by flood
ding. "Boeeing thanks tthe RAAF, a C‐17 custom
mer since 200
06, for its confidence in tthe airlifter'ss capabilitiess," said Bob Ciesla, C‐17
7 program maanager for Boeing. "We ssalute the RA
AAF and its ccrews, who h
helped save llives in Japaan, Australia and New Zeealand. We are proud to sserve as theiir partner." Duee to the RAAF's immediate need for an additionaal airlifter, the U.S. Air FForce has ap
pproved Austtralia’s requ
uest to take delivery of iits fifth C‐17
7 in August. TThe airlifter will be assiggned to RAA
AF Base Amberley’s 36 SSquadron, neear Brisbane.. The C‐17 can traansport largee payloads aacross vast raanges, land on short, austere runwaays, and operate in extrreme climatees. It is the only airlifteer that posssesses both tactical and strategic caapabilities. Boeing B
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Page 8 Epicos S.A. 2011 ROC (Taiwan) provides support to the RAAF's C‐17s through the C‐17 Globemaster III Sustainment Partnership, a Performance‐Based Logistics program that includes an extensive support network. Boeing has delivered 230 C‐17s worldwide to date, including 20 to international customers. The U.S. Air Force ‐‐ including active National Guard and Reserve units ‐‐ has taken delivery of 210. Other customers include the United Kingdom's Royal Air Force, the Qatar Emiri Air Force, the Canadian Air Force, the 12‐
member Strategic Airlift Capability initiative of NATO and Partnership for Peace nations, and the United Arab Emirates Air Force and Air Defence. For information on Boeing Defense, Space & Security in Australia, visit www.boeing.com.au. A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities‐driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 66,000 employees worldwide. Follow on Twitter: @BoeingDefense. # # # Contact: Jerry Drelling Boeing Mobility Communications 714‐318‐7594 jerry.a.drelling@boeing.com James Baker Boeing Defence Australia Communications +61 7 3306 3411 james.m.baker9@boeing.com Source: Boeing Defense, Space & Security, Epicos OPEC marginally raises global oil demand forecast for 2011 MOSCOW, April 13 (RIA Novosti) ‐ The Organization of the Petroleum Exporting Countries (OPEC) has raised its forecast for worldwide oil demand in 2011 to 87.9 million barrels per day from the previous month's forecast of 87.8 million bpd, OPEC said on Wednesday. "The most important incident is the Japanese earthquake, which is expected to affect oil demand only marginally," OPEC said in its report. Global oil demand is expected to grow by 1.4 million bpd in 2011 compared with 2010, the report said. "Japan's disaster led to a sudden decline in the country's use of oil as areas of the economy halted and the transportation sector experienced a decline; however, this is likely to be offset later in the year as the country substitutes some of its shut‐in nuclear power capacity with crude‐burning power generation," the report said. OPEC has cut its global GDP growth forecast for 2011 by 0.1% from its previous forecast to 3.9%, with the world economy's growth largely expected to be maintained by emerging countries, like China (9%) and India (8.1%), the report said. Analysts say the situation on global oil market is improving. "The world oil demand will grow as the world economy is recovering from the financial and economic meltdown," Anastasiya Sosnova, an oil analyst with Ivestcafe, told RIA Novosti. "If global demand for oil grows, Russia's oil exports are also likely to expand as the situation in Libya and generally in the Middle East is unstable," Sosnova added. OPEC includes Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the UAE and Venezuela. © Epicos Informational Services Page 9 Epicos S.A. 2011 ROC (Taiwan) Source: Ria Novosti Brazil to decide on Russian helicopters supplies by end of month RIO DE JANEIRO, April 14 (RIA Novosti) ‐ The Brazilian Defense Ministry will decide by the end of the month whether its contract on the supply of Russian helicopters will be affected by planned massive military budget cuts, a ministry source said. "This year's ministry plan stipulates that the contract on the supply of Russian Mi‐35M helicopters should be fulfilled, and we cannot say now which of the projects may be affected by the cuts," the source said. The decision on the issue will be made by the end of April, he said. Brazil's government has announced that it will cut 4,2 billion Brazilian real (about $2.4 billion), or about 27 percent, from its 15.17 billion defense budget this year under proposed fiscal tightening. A source in the country's military industry told RIA Novosti on Tuesday that Brazil had delayed for an indefinite time the purchase of a second bunch of Russian Mi‐35M combat transport helicopters following the announcement of the cuts. Russia's state arms exporter Rosoboronexport won a tender for the supply of 12 Mi‐35M helicopters to Brazil in 2008. Half of the helicopters have already been delivered to the Latin American country, and the rest six aircraft were planned to be supplied by the end of 2011. Russia, the world's second largest arms exporter after the United States, sold $8.6 billion worth of weaponry last year and is looking to increase its arms sales to almost $10 bln in 2011. Among the Latin American countries, Venezuela is Russia's major arms trade partner. Argentina, Brazil, Colombia, Uruguay and Ecuador have also expressed their interest in Russian air defense systems, radars, combat aircraft and helicopters, naval equipment, and small arms. Source: Ria Novosti © Epicos Informational Services Page 10