Taiwan has abandoned a bid to buy 66 F-16 fighter jets from the US in an attempt to rescue a larger arms package before President George W. Bush leaves the White House, according to national security officials in Taipei.

The decision came as Admiral Timothy Keating, commander of the US Pacific command, confirmed this week for the first time that Washington had frozen arms sales to Taiwan – a drastic departure from the line the US has followed in the past seven years.