Taiwan presidential hopeful seeks to up defence budget

TOKYO (Reuters) - Taiwan presidential candidate Frank Hsieh said on Tuesday Taipei needs to boost its defence budget to more than three percent of its gross domestic product because it stands under the threat of attack by China.

Taiwan's cabinet has already announced plans to raise defence spending in 2008 to strengthen the island's military in response to what it sees as a rising threat from China.

"Taiwan needs to continue buying defence equipment and to make its defence budget more than three percent of GDP," Hsieh, candidate of the ruling Democratic Progressive Party (DPP), told reporters in Tokyo, speaking in Japanese.

Taiwan has tried to boost defence spending as it tracks the rise of military spending in China, which claims the democratic island as its own and has pledged to bring it under Chinese rule, by force if necessary.

The island's defence spending is estimated at 2.85 percent of GDP this year, up from 2.45 percent of GDP in 2006.

Taiwan's spending, however, is still only a quarter of China's official planned spending this year of $45 billion. A Pentagon report in May said Beijing's total military-related spending could be more than double the official figure.

Hsieh, running in a tight race against Nationalist Party (KMT) candidate Ma Ying-jeou for the March election, said it was Taiwan's right to be a member of the United Nations.

The United Nations ousted Taipei in favour of Beijing in 1971 under a "one China" policy, and rejected the island's bid for membership earlier this year. Taiwan stands virtually no chance of membership as China is a permanent member of the U.N. Security Council with veto power.

"The situation in which Taiwan is unable to become part of the international community and is not given support -- that is a factor bringing about tension in Asia," Hsieh said.