"The Air Force has protested the price increases many times, and the Defense Ministry has chosen not to be taken for a ride," said MND spokesman Lo Shao-ho.

Lo said the defense ministry has repeatedly protested to Raytheon, the systems' supplier, over the price increases.

It has also asked the Pentagon to tell the company to exercise restraint after the Air Force was notified earlier this year of a third price increase since the project was approved in 2003, this time for an additional US$200 million, he added.

The two long-range early warning radar systems -- approved by the Legislative Yuan in 2003 at a cost of NT$30.4 billion (US$1.05 billion) -- were originally scheduled to be built and become operational at the end of 2011.

According to a United Daily News report Tuesday, the price of the radar systems had previously been increased by a total of NT$6.2 billion in 2008 and 2010.

The radar systems are designed to monitor ballistic missiles and cruise missiles and to act as a forward position for the U.S. ballistic missile defense system, according to the report.

The paper said Taiwan does not actually need the advanced radar systems, which have a detection range exceeding 3,000 kilometers, because Taiwan's main military threat comes from only about 1,000 kilometers away across the Taiwan Strait, the report said.

"To put it in a nutshell, under the radar procurement program, Taiwan serves as a sentry for the United States, but the sentry has to pay for its own costs and pay the boss' bills too," the daily said.

The ruling brings to an end to a nearly two-decade dispute between France and Taiwan over commissions paid on the US$2.8 billion deal.

The French government said it had agreed with a request by Thales, the French contractor that sold six Lafayette frigates to Taiwan in 1991 when it was still known as Thomson-CSF, not to appeal the ruling by the Paris Court of Appeals.

Thales was concerned that continuing the long-running legal battle would not be good for the defense contractor's image and hurt future business prospects, according to wire service reports.

An international court of arbitration ruled in April 2010 that the French contractor had to pay Taiwan 630 million euros, including a fine of roughly 433 million euros plus interest costs, litigation fees and other related expenses, for paying commissions in violation of the contract.

Because the French government guaranteed the contract, known as "Bravo," it was to pay 72.5 percent of the penalty, or 460 million euros, with Thales to pay the other 170 million euros.

The French government said Thursday that an emergency amendment to its operating budget would have to be sent to the parliament in order to pay the fine and settle the issue.

Thales said in a statement that it had already set aside provisions for its 27.46 percent share of the fine and did not expect that the ruling would hurt the company's financial results.

The French government also promised on Thursday to help Taiwan reclaim illegal commissions paid to intermediaries, but it remains to be seen what kind of assistance it can provide.

French authorities previously classified related documents as national secrets, making it impossible for judicial authorities to track down the destinations of the illegal payments and forcing the presiding judge to close the case in 2008.

Millions of dollars of commissions are believed to be in Swiss bank accounts held by Thomson-CSF's agent at the time, Andrew Wang, and have become the priority target of Taiwan's drive to get back illicit commissions paid in the deal.

The funds in Wang's account have remained frozen, however, pending ongoing litigation.

Wang fled Taiwan following the death of Navy Captain Yin Ching-feng under suspicious circumstances in late 1993. Yin is believed to have been poised to blow the whistle on colleagues who had allegedly received kickbacks from the Lafayette deal. Wang has been wanted by Taiwanese authorities on a murder charge since September 2000.

At about 1:20 a.m. local time a Pakistani helicopter was shot down by unknown people in the Sikandarabad area of Abbotabad. The Pakistani forces launched a search operation in the nearby area and encountered with a group of unknown armed people. A fire exchange followed between the two sides.

When the fire exchange ended, the Pakistani forces arrested some Arab women and kids as well some other armed people who later confessed to the Pakistani forces they were with Osama Bin laden when the fire was exchanged and Bin Laden was killed in the firing.

Local media reported that after the dead body of Bin Laden was recovered, two U.S. helicopter flew to the site and carried away the dead body of Bin Laden.

Initial reports said that at least one was killed and two others were injured in the crash. At least two houses were engulfed by the huge fire caused by the crashed chopper.

Rescue team rushed to the site shortly after the crash was reported and the armed forces cordoned off the area and launched a search operation there.

Sources of Xinhua said they tried to enter the area after the incident took place, but no media people were allowed inside.

"No one knows in that helicopter crash Bin Laden was killed," said the sources.

The document, the seventh of its kind the Chinese government has issued since 1998, says China will never seek hegemony, nor will it adopt the approach of military expansion now or in the future, no matter how its economy develops.

The white paper, titled "China's National Defense in 2010," gives an overall picture of the country's national defense ranging from the security environment and national defense policy to defense expenditure and arms control.

Peaceful Development
The basic purpose of the white paper is to deepen trust and dispel misgivings with the manifesto of the national defense policy, said Chen Zhou, a research fellow with the PLA's Military Science Academy.

China's commitment to peaceful development and a national defense policy which is defensive in nature have been underlined in all the seven editions of the white paper since 1998.

The pursuit of a national defense policy which is defensive in nature is determined by China's development path, its fundamental aims, its foreign policy, and its historical and cultural traditions, the latest edition of the white paper says.

The white paper says the world remains peaceful and stable at large, but the international security situation has become more complex and military competition remains fierce. "China is meanwhile confronted by more diverse and complex security challenges."

It defines the goals and tasks of China's national defense in this new era as safeguarding national sovereignty, security and interests of national development; maintaining social harmony and stability; accelerating the modernization of national defense and the armed forces; maintaining world peace and stability.

Defense Expenditure
In the face of concerns over China's growing defense expenditure, the white paper says the increase has been kept at a reasonable and appropriate level.

China's defense expenditure grew by 17.5 percent in 2008 and 18.5 percent in 2009. The defense budget for 2010 is 532.115 billion yuan (81.2 billion U.S. dollars), up 7.5 percent from 2009.

"The growth rate of defense expenditure has decreased," says the white paper.

China's defense expenditure mainly comprises expenses for personnel, training and maintenance, and equipment, with each accounting for roughly one third of the total.

Making public the share of equipment spending in defense expenditure, the white paper serves to allay concerns that China's increased defense expenditure may trigger a regional arms race, observers said.

The share of China's annual defense expenditure in the state financial expenditure has declined from 8.66 percent in 1998 to 6.49 percent in 2009, according to the white paper.

In the past two years, the increase in the defense expenditure has been used to improve support for troops and accomplish diversified military tasks, ranging from earthquake rescue and escort operations in the Gulf of Aden and waters off Somalia.

In view of the upward trend of purchasing prices and maintenance costs, China has moderately increased funding for high-tech weaponry and equipment and supporting facilities for that weaponry, the white paper says.

Confidence-Building
China works to create "equal, mutually beneficial and effective" mechanisms for military confidence-building, says the white paper.

Military confidence-building is an effective way to maintain national security and development, and safeguard regional peace and stability, the white paper says.

Qian Lihua, director of the Foreign Affairs Office with the National Defense Ministry, said the international community has paid great attention to China's national defense and military development, but misunderstandings and worries also rise.

"There are views assuming that China's defensive national defense policy might be changing," Qian said. "Therefore, the publication of the white paper aims to create a security environment featuring mutual trust and cooperation."

He said many countries consider the white paper as an important document to systematically study China's defense policy and military strategy.

The PLA had conducted 47 joint military drills with foreign armies, an effort to "deepen international military exchanges and cooperation," Qian said.

According to the white paper, in recent years, China has held extensive strategic consultations and dialogues with relevant countries in the field of security and defense to enhance mutual understanding and trust, and to strengthen communication and coordination.

To date, China has established mechanisms for defense and security consultation and dialogue with 22 countries.

In the last two years, senior PLA delegations have visited more than 40 countries, and defense ministers and chiefs of general staff from more than 60 countries have visited China.

Contribution to World Peace
China has consistently supported and actively participated in UN peacekeeping operations, making a positive contribution to world peace, the white paper says.

As of December 2010, China dispatched 17,390 military personnel to participate in 19 UN peacekeeping missions. Nine Chinese have lost their lives while serving in the missions.

As of December 2010, the PLA had 1,955 officers and other personnel serving in nine UN mission areas. China has dispatched more peacekeeping personnel than any other permanent member of the UN Security Council.

The Chinese government takes a prudent attitude toward the export of military products and related technologies, and has established a non-proliferation mechanism at its three levels of government, which covers producers and export companies.

The rise and fall of great powers over the past 500 years is a history of wars and hegemony. However, "China will take a different path of peaceful development and make contributions to world civilization," Chen Zhou said.

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Brigadier General Mohammadreza Karshki, a senior Iranian Air force commander, said Saturday that the Iranian Air Force is cooperating with the Defense Ministry in the project, which is now in the initial stages.

The new fighter jet is similar to the U.S.-built F/A-18, while its appearance is similar to F-5E/F Tiger II, according to Press TV.

The new single-seater bomber has the ability to track down enemy aircraft, engage in combat, target locations on the ground, and carry assorted weapons and ammunition, said the report.

Iran said last February that it successfully tested the prototype of its first domestically-built stealth fighter, which, due to its physical attributes and the material used in its body, could not be detected by any radar.

The system seeks to draw on the availability of mobile phones in Israel, one of the world's biggest users of cellular technology relative to the size of the population.

It is jointly developed with the country's leading cellular companies, and is designated to provide instantaneous warning to hundreds of thousands of people via text messages if missiles were to be launched against Israel in a future war.

Army officials said the system will become operational by the end of 2011, according to the report. It will forward warnings to every third-generation mobile phone in an area about to be hit by projectiles.

In peaceful times, the system would enable the security establishment to communicate with the general population in regard to other impending disasters, like the leakage of toxic materials. The IDF reportedly intends to test the system in a nationwide drill within the coming months.

"There are assessments that thousands of missiles will strike the country in the next war," the report quotes senior IDF Home Front Command officers as saying. "Our aim is that within two years, only those who are specifically under threat will receive a warning, so that the national economy will continue to function ( in wartime)."

In a bid to substantially upgrade "focused warning" capabilities, Israel's two satellite TV providers are cooperating with the IDF on establishing dormant channels which would automatically begin broadcasting if a war breaks out. Electronic signposts along major transportation routes are also slated to be used as an additional means of notification.

Aerospace Commander of the IRGC Amir Ali Hadgizadeh told Fars that "they (western drones) have entered our territory a number of times and we have, so far, shot down many of their advanced spy drones."

"We have shot down two of their drones in the Persian Gulf and this is for the first time that is announced," the commander was quoted by Fars as saying.

"Westerners have already possess a series of capabilities which cannot be ignored, especially satellites," Hadgizadeh said, adding "western countries have spy planes which can take pictures in some places. Such capabilities are mainly used in Iraq and Afghanistan, but they don't dare to broadly use them in our country."

Hadgizadeh stressed that the Iranian forces have full control of enemies' movements and the shifts around its boarders, saying " we are fully aware of when they put on their life jackets and launch boats in the sea."

Iran has made considerable progress in the past decades over the development of the middle-range and long-range missiles, however, Teheran has reiterated that its missile capability is "a defensive tool against invasions."

Arrow III, an interceptor designed to knock out ballistic missiles, has until now been shrouded in secrecy. A full-scale model was put on display at the second annual International Aerospace Conference and Exhibition held in Jerusalem on Monday.

In line with the perception that the upgrading of existing systems is a never-ending process in light of changing threats, the engineers who are developing Arrow III have been tasked with achieving a daunting technological feat: creating a booster-rigged kamikaze satellite that will collide with incoming long-range ballistic missiles beyond Earth's atmosphere with pinpoint accuracy.

Like its two older siblings, the development of Arrow III by the state-owned Israel Aerospace Industries (IAI) is being underwritten by the United States. The system is expected to become operational by 2015, according to project director Yoav Turgeman.

Following the aftermath of the 2006 Lebanon war, in which an estimated 4,000 Katyusha rockets and mortars slammed into northern Israel, the country's best and brightest engineers were recruited in a national mission to come up with countermeasures.

Enormous financial resources, including a substantial U.S. investment, were poured into their creation. The bulk of the effort is shouldered by IAI and Rafael Advanced Defense Systems, a division of the Israeli Defense Ministry. A host of smaller local defense contractors supplement the projects.

At the government-sponsored conference, missile defense program directors were each given 15 minutes to update an audience of military and civilian professionals on the progression of leading missile-defense systems.

Some are already operational, while other systems are still under development and slated to be operationally ready in the coming years. The Israeli missile-defense concept presented here on Monday is described as a multi-tier active air defense (MTAD), a network which aims to provide a comprehensive shield against a multitude of threats on several fronts.

At the lowest tier of MTAD is Iron Dome, which intercepts rockets at ranges of 5 to 70 km. Rafael developed the system in record time "about two-and-a-half years from the drawing board to the operational stage," said defense officials.

Israeli Channel 10 TV on Sunday broadcast the first footage of recent live testing of Iron Dome in southern Israel. Israel Air Force crews manning the fire control center burst into cheers as the system succeeded in destroying a salvo of three Grad and two Qassam rockets.

The next tier of the shield is David's Sling, designated to intercept an assortment of more powerful rockets. Developed jointly by Rafael and U.S. missile giant Raytheon, the system is scheduled to become operational by 2013, IAF northern air defense chief Col. Zvika Haimovitch said at Monday's conference.

Officials said the defense network as a whole is expected to be fully operational by 2015. "Within the coming five years, we will see this doctrine implemented, a vision turned into a reality," Haimovitch said.

The defense experts who took the stage also spoke at length about worst-case scenarios that they envision unfolding, a sobering reminder that the present relative calm in Israel's skies could shatter in a moment.

"The firepower in terms of missiles and rockets now available to Israel's enemies is growing," said Uzi Rubin, the founder and first director of the Israel Missile Defense Organization (IMDO) in the Ministry of Defense, estimating that Israeli cities might be hit by upwards of 13,000 missiles and rockets.

Despite the great promise that the new systems hold in minimizing casualties and damage, Monday's speakers, by their own initiative, cautiously noted their limitations.

"I would say 'reasonable protection.' In principle, you can never think of 100 percent protection," said Arieh Herzog, the current director of IMDO.

Fairfax newspapers reported that U.S. Defense Secretary Robert Gates is poised to announce the space base when he visits Australia next week with Secretary of State Hillary Clinton.

As a major expansion of the U.S. military footprint in Australia, the paper said the base is likely to be built at the top secret Harold E Holt Naval communications station at Exmouth of Western Australia.

The facility will allow Australia to become a key partner in the international battle for space supremacy.

It will have major technology and intelligence spin-offs, putting Australia at the forefront of an emerging battle between nations staking claim for territory in space occupied by 600 billion dollars (588 billion U.S. dollars) of civil and military hardware, Fairfax wrote.

According to Australian Defense Minister Stephen Smith, last year's Defense White Paper stated Australia's strategic capability advantage depended on its ability to access space and protect the nation from "foreign exploitation by space-based capabilities".

"The U.S. Space Surveillance Network is the principal system Australia and other nations rely on to detect, track and identify objects in space," Smith told Australia Associated Press on Friday.

"While no decisions have yet been made, Australia and the United States are discussing the potential for supporting the U.S. Space Surveillance Network and the development of Australia's space situational awareness."

The missile was fired from the Dmitry Donskoy nuclear-powered submarine in the White Sea at 05:10 am Moscow time (0110 GMT), and the warhead successfully hit its target on the Kura test range in Russia's Far East Kamchatka region, the RIA Novosti agency quoted the Defense Ministry as saying.

According to a source from test flight commission, Russia was scheduled to conduct three Bulava tests in late 2010. Friday's test was the second successful one.

The first test launch of these three submarine-launched ballistic missiles was also successfully conducted on Oct. 7. The warhead hit its target in the Kamchatka region.

The Bulava missile, a three-stage, liquid and solid-propellant, submarine-launched ballistic missile (SLBM), was designated for the fourth generation submarines of Project 955 Borei. However, it has officially suffered seven failures in the last 13 test launches.

The missile with a range of 8,000 km was designed by the Moscow Institute of Thermal Engineering and is capable of carrying up to ten supersonic maneuvering re-entry vehicles.

The Russian military hoped the Bulava program, along with Topol-M land based ballistic missiles, would become the backbone of the country's strategic forces.