* US working on a second large arms sale to Taiwan,

sources say

* Taiwan says has not been told of any delay to that sale

* Trump scheduled to visit China, which opposes Taiwan

arms sales

(Adds comments on U.S. missile deliveries to Taiwan, paragraph

14)

TAIPEI, March 17 (Reuters) - Taiwan Defence Minister

Wellington Koo on Tuesday said he believed the U.S.' internal

review process for the sale of a second package of arms to the

island is proceeding on schedule.

A major U.S. arms package for Taiwan worth about $14 billion

that includes advanced interceptor missiles is ready for

President Donald Trump's approval and could be signed after his

upcoming trip to China, Reuters reported last week, citing

sources briefed on the discussion.

But on Monday, Trump said he was seeking to delay his visit

to China in early April by about a month because of the Iran

war.

Asked if the trip's postponement could impact the new arms

sales to Taiwan, Koo said the government had been coordinating

closely with the U.S.

"As we understand it, their internal review procedures are

proceeding on schedule," he said. "I don't think we have

received any related information indicating delays."

China, which views democratically governed Taiwan as its own

territory, has repeatedly demanded an end to such sales.

Chinese President Xi Jinping told Trump in February that

arms sales to Taiwan must be handled with "prudence."

The U.S., which in December unveiled an $11 billion sale of

weapons to Taiwan, has not formally unveiled a second package.

Trump's moves to secure a favourable trade deal with China

have raised concerns among some China watchers that he could

curb U.S. military support for Taiwan.

The U.S. has no formal diplomatic ties with Taipei, but is

bound by law to provide the island with the means to defend

itself.

Taiwan, like other allies and partners in the region, has

been watching with concern how the shifting of U.S. forces to

the Middle East from Asia could impact U.S. readiness to deal

with incidents involving China or North Korea, especially with

weapons stockpiles being rapidly used in the Iran war.

Koo said he could not comment on U.S. operations and

military deployments. But he said Taiwan's military would

continue watching developments around the Taiwan Strait as well

as across China as a whole.

"Our main focus remains on observing the relevant indicators

and signs and we will continue to pay close attention," he said.

Speaking on Monday, Huang Wen-chi, head of the ministry's

strategic planning department, told lawmakers that the delivery

of 102 Lockheed Martin ( LMT )-made PAC-3 air defence missiles

from the U.S. was on track for this year.