Taipei, June 1 (CNA) France's Ministry of Foreign Affairs denied the existence of a military liaison office in Taiwan in a press briefing Monday after Taiwanese media reported that the office has been closed over the handling of a warship sale dispute.
According to the Web site of the French Foreign Ministry, its spokesman denied the existence of a military liaison office under the French Institute in Taipei, which represents French interests in Taiwan in the absence of bilateral diplomatic ties.
"We do not have a military liaison office in Taipei. There are no changes foreseen in the French Institute in Taipei, " the French Foreign Ministry spokesman said in response to a reporter's question.
The Chinese-language Liberty Times newspaper reported Monday that the French government ordered that the military liaison office in Taiwan be closed down in July because Taiwan reneged on a pledge to settle a dispute over commissions paid on the sale of six Lafayette-class frigates in 1991 out of court.
The French Institute in Taipei told the Central News Agency Monday that it had no comment on the matter.
Taiwan's Navy brought the case to the International Court of Arbitration under the International Chamber of Commerce in 2001, and on May 3, the court ruled against French defense contractor Thales, which was Thomson-CSF, when the sale was made.
The court ordered Thales and the French government, which had a major stake in the contract, to pay a penalty of more than US$591 million to Taiwan for paying commissions on the US$2.8 billion sale to Taiwan's Navy, in violation of the deal's contract.
Asked about the French government's position, James Chang, a spokesman for Taiwan's Ministry of Foreign Affairs (MOFA) , said Taiwan was informed as early as last year by French authorities of the closure of the office because of budgetary and personnel considerations.
He did not deny the existence of such an office.
Foreign Minister Timothy Yang said Monday that it remains to be verified whether the French government will indeed close its military liaison office in Taiwan in July.
He described the Lafayette arbitration process as a business issue and said it would not have any adverse impact on bilateral relations between Taiwan and France. (By Chris Wang) enditem/ls