He took over from Gen. Lee Tien-yu, who resigned to take responsibility for the controversial founding of the company, which has already signed a purchase contract without the knowledge of the Legislative Yuan.

After his swearing-in ceremony, witnessed by President Chen Shui-bian in the morning, Tsai went to visit Alex Fei, Kuomintang legislative caucus whip, to dispel rumors that he might require officers and armed forces personnel to stay on duty on March 22.

Voters will go to the polls on that day to elect a new president. On March 20, 2004, however, at least 100,000 service personnel were ordered to stay in the barracks and could not vote in the presidential election.

After his meeting with Fei at the latter's Legislative Yuan office, Tsai said he could not say whether Taiwan Goal would be deactivated on or before Friday as was demanded by the opposition Kuomintang.

The Kuomintang calls Taiwan Goal an illegal setup, giving the Friday deadline for its deactivation. The opposition party also demands that Chiou I-jen step down as vice premier for masterminding the firm's establishment last year.

In particular, Fei and his Kuomintang colleagues are worried that Taiwan Goal, after its demise as a front, might continue to operate to win illegal profits.

They all believe Tsai was made the new defense minister upon the strong recommendation of the vice premier. Both belong to the now nominally defunct New Tide faction of the ruling Democratic Progressive Party.

"So far as the disbanding of Taiwan Goal is concerned," Tsai told reporters, "Premier Chang Chun-hsiung has made it clear over the past two days."

Chang said Taiwan Goal would be disbanded as soon as practicable. But, he added, the disbanding has to be completed in full accordance with company law.

That means Wu Nai-jen, board chairman of Taiwan Goal, has to call a plenary board meeting to take a decision to disband the company.Wu has yet to set the date for that meeting.

When asked if it were possible Taiwan Goal would continue to operate under a new name after its nominal demise, Tsai said, "I don't know."

When the government said it should be disbanded, Tsai went on, Taiwan Goal should come to an end. "There's no other way," he added.

He does not think Taiwan Goal would keep on doing business by changing its name, although he quoted Article 22 of the Defense Law as stipulating arms purchases or cooperation in weapons production can be negotiated between private companies.

"Such arrangements are good for us in Taiwan," Tsai said. Taiwan has made arms and equipment purchases from private foreign suppliers in the past. While the Kuomintang was in power, Taiwan bought Lafayette frigates and Mirage fighters from France.

"I would be stepping beyond my authority to say if Taiwan Goal would come to an end on Friday, or what might follow," Tsai said.

That certainly did not satisfy the opposition lawmakers who want Chiou's head.

One Kuomintang heavyweight said as long as Chiou remains in the Cabinet, Taiwan Goal would continue to operate under a changed name.

"Nobody knows how many contracts Taiwan Goal has already signed or will sign in the next three months with foreign arms suppliers," the opposition legislator said. "A contract may be binding for as long as 30 years," he added.

To end the possible trouble, the opposition party, which now controls a three-fourths majority in the Legislative Yuan, is proposing legislation of a special investigation commission for the Taiwan Goal scandal.

The commission is expected to find out how Taiwan Goal was formed to evade government control and how many contracts it has already signed.

Warnings would be issued to those foreign arms makers who have signed or are planning to sign sales contracts with Taiwan Goal. They would be clearly told any such contract would not be binding.

Democratic Progressive Party lawmakers are resigned to the certain adoption of the Kuomintang-proposed bill to legislate the independent inquiry.

They were bitter, however. "We want the commission to investigate the Lafayette scandal as well," said William Lai, DPP legislative caucus deputy whip.