In an elaborate public relations exercise, President Chen Shui-bian took a group of journalists out on the navy's "Sea Tiger," a Dutch-built Sword Dragon-class submarine, off southern Taiwan to carry out routine drills.

The exercise was not part of ongoing war games in both China and Taiwan that have prompted the United States to call for restraint from both sides in order to avoid provoking already tense relations between the rivals.

"Submarines would be the best weaponry to defend Taiwan from (Chinese) attack ... as they are able to launch a blitz and easy to hide," Chen told reporters after wrapping up the unprecedented exercise.

The deal to buy an unspecified number of US-built submarines is part of a controversial budget of 610 billion Taiwan dollars (18.2 billion US) to update Taiwan's military with weaponry including anti-missile systems and anti-submarine aircraft over a 15-year period from 2005.

The deal is to go before parliament for approval towards the end of the year.

Military analysts say the submarines are critical to counter China's naval build up.

The Taiwanese navy currently operates a fleet of four submarines, but only two of them could be deployed in the event of war. The other two are Guppy-class warships built by the United States in the 1940s.

Chen has insisted the arms package is intended to defend Taiwan and has vowed to maintain peace in the Taiwan Strait.

China has repeatedly threatened to invade Taiwan should the island declare formal independence, prompting Taipei to keep seeking advanced weaponry to defend itself.

The United States has remained the leading arms supplier to Taiwan despite switching diplomatic recognition from Taipei to Beijing in 1979.

The two sides split in 1949 after a civil war.

WAR.WIRE