Thales Settles Frigate Deal Dispute with Taiwan

14 July 2011 (Last Updated July 14th, 2011 18:30)

The Taiwan Ministry of National Defence (MND) has received $875m from Thales as part of a court-ordered fine payment settlement over a long-running Lafayette frigate deal between the company and Taiwan. The payment follows an April 2010 order issued by the international commercial arbitra

The Taiwan Ministry of National Defence (MND) has received $875m from Thales as part of a court-ordered fine payment settlement over a long-running Lafayette frigate deal between the company and Taiwan.

The payment follows an April 2010 order issued by the international commercial arbitration court against the French defence company for paying unauthorised commissions in relation to a deal for six Lafayette frigates to Taiwan, signed in 1991.

The payment includes a fine, interest, litigation fees and other related expenses that have built up over more than ten years of legal wrangling between the two parties.

Taiwan MND spokesman Lo Shao-ho said the commercial dispute would not affect military cooperation between the two nations.

The payment will be transferred to the state treasury.