In response to media coverage “Arms Dealer Roadmaps Submarine Project by Playing Ping-pong”, the Navy Command Headquarters today (15^th) wishes to state the following:

1. Homemade submarine has always been a fundamental policy to achieve autonomous national defense. Being an “asymmetrical battle force” that national security can depend on, submarines acquisitions had encountered setbacks for decades. Now that there is finally a light at the end of the tunnel, the Navy carries out submarine-building plans as scheduled and is based on risk management.

2. At the beginning, the Navy had looked for major suppliers around the world, with limited result. Nevertheless, to fulfill its mission to satisfy the public’s expectation, the Navy proactively used its official and unofficial connections, and finally succeeded in finding suppliers, who all negotiated their contracts with CSBC, who is the main contract party, and original firms. The Navy and CSBS are always under the scrutiny of submarine experts, NCSIST members and scholars, who form special team to jointly review the project and monitor the risks. The submarine case by all means will be supervised by the Congress to ensure no illegality is found within. We wish that the media do not make any conjecture.

3. The submarine case is currently on track. The Navy does not take part in any bid opening or price negotiation; rather, the Navy is responsible for project management and supervision over contract fulfillment. This is to ensure that no ill intentions to money grubbing occur, and that the case will be duly implemented according to the law.