Budgeting for Arms Deals Before LOA is Standard Practice, Says Defense Minister Koo
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DPP Legislator Lo Mei-ling pointed out on June 19 that for military purchases, Taiwan has historically allocated budgets upon the U.S. expressing its intent to sell, with the Letter of Offer and Acceptance (LOA) being signed afterward. Minister of National Defense Wellington Koo confirmed this is "how it has always been," stating that waiting for the LOA to budget would conflict with the Planning, Programming, and Budgeting System (PPBS). Lo expressed concern that the opposition's insistence on receiving the LOA first could jeopardize arms deals due to the tight 45-day window between congressional notification and LOA signing.