U.S. Freezes $12B in Arms Sales to Taiwan

As China and Taiwan prepare for their first official talks in more than a decade, sources in both Taipei and Washington say the U.S. State Department has decided to freeze all congressional notifications for $12 billion worth of arms sales to Taiwan.

Sources are mixed on whether the freeze will extend through the remainder of the Bush administration or only until after the August Beijing Olympics. Fears in Taipei are the freeze could become permanent with a new U.S. president in January.

The freeze is part of an effort not to derail Beijing-Taipei negotiations, scheduled to begin June 11, or disturb plans by U.S. President George W. Bush to attend the opening ceremony of the Beijing Olympics.

Read more