C O N F I D E N T I A L SECTION 01 OF 04 ANKARA 008717

SIPDIS


OSD FOR DASD BRZEZINSKI AND CAPT WILKINS; DSCA FOR J.
FARMER AND LT. COL BUCHHOLTZ; STATE FOR EUR/SE AND PM/RSAT


E.O. 12958: DECL: 08/04/2012
TAGS: MASS MARR PREL TU
SUBJECT: US-TURKEY HIGH-LEVEL DEFENSE GROUP MEETING FOLLOW
UP: REQUEST TO CLOSE OUT PENDING ACTION ITEMS BEFORE
DECEMBER 16-18 WORKING GROUP MEETINGS.

REF: A) ANKARA 6286 B) ANKARA 5767 C)ANKARA 3828


Classified by Deputy Chief of Mission Robert Deutsch.
Reasons: 1.5 (B and D).



1. (U) This is an action request. See para 4.


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BACKGROUND
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2. (C) On April 16-17, the USG and GOT convened the 17th
annual US-Turkey High-Level Defense Group (HLDG) meeting in
Istanbul. The HLDG's two working groups--the
Political-Military Working Group (PMWG) and the Security
Assistance Work Group (SAWG)-- agreed on a number of action
items (ref c). Since the 17th HLDG meeting, the USG has
initiated and, in some instances, completed action on a
number of items. In early September, the USG submitted its
first quarterly written status report to the Turkish General
Staff (TGS) and the MFA (refs a-b).



3. (C) In October 2002, OSD and TGS agreed to convene
PMWG/SAWG meetings December 16-18 in Garmisch, Germany. The
primary purpose of the PMWG/SAWG meetings will be to exchange
views on pol-mil/security assistance-related issues, review
the status of the action items from the 17th HLDG meeting,
and discuss the agenda for the 18th HLDG meeting in the US in

2003. OSD DASD Brzezinski and TGS Deputy J5 for Agreements
MG Acar will co-chair the PMWG; DSCA Director for European
Affairs Jeanne Farmer and TGS Deputy J5 BG Dumanli will
co-chair the SAWG.


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ACTION REQUEST
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4. (C) Embassy/ODC recommend that the USG present its second
quarterly written status report to TGS at the December 16-18
PMWG/SAWG meetings. The more action items we can cross off
our list prior to the PMWG/SAWG meetings, the more persuasive
we will be in demonstrating to TGS leadership (which
questioned our commitment to the HLDG since the last HLDG

meeting in Istanbul) that we attach great importance to the
US-Turkish bilateral military relationship and the HLDG as a
forum to discuss issues of mutual concern to both countries.
Embassy/ODC therefore recommend that DOD, in coordination
with other agencies, complete action on as many of the
outstanding PMWG/SAWG action items listed in para 5 as
possible. The Embassy recognizes that there may be some
instances where Washington may have taken action on issues
since the USG submitted its first quarterly status report in
September. In these instances, Embassy/ODC would appreciate
any updated information that will assist us in drafting the
second quarterly action items status report. Embassy/ODC
intends to submit for Washington's review a text of the
second quarterly report in early December.


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OUTSTANDING PMWG/SAWG ACTION ITEMS
--------------



5. (C) Below is a list of the outstanding action items from
the PMWG/SAWG that Embassy/ODC believe require action prior
to the PMWG/SAWG meetings. There are other action items that
are technically "outstanding" (i.e. facilitate smooth ISAF II
to ISAF III transition) but where the USG has and will
continue to take action well beyond the December meetings.
We have elected not to focus on these items here, but intend
to record the actions taken the by USG in our second
quarterly status report.


Outstanding Political-Military Working Group Action Items


Action Item 2: In order to complete the Space Cooperation
MOU prior to MOU negotiations the Statement of Intent between
the US and Turkish General Staff will be signed by the proper
authorities at the level of US Assistant Secretary of Defense
and Commander of the Turkish Air Force (TUAF).


Recommendation: DOD and TUAF signed the Statement of Intent
on July 12, 2002. Embassy/ODC understand that DOD
subsequently initiated the inter-agency review/approval
process to grant OSD permission to enter into MOU
negotiations with the GOT, and that process is still
underway. Embassy/ODC recommend that appropriate Washington
agencies complete the review process and authorize DOD
(preferably prior to the PMWG December 16-18 meeting) to
begin MOU negotiations with the GOT.
Action Item 3: For space training courses, the US will
investigate ways to find financing solutions (e.g. IMET, FMS).


Recommendation: During a November 20 meeting with visiting
DSCA's Lt. Gen. Walters, the Turkish Air Force (TUAF)
delivered a brief titled "Topics of Special Importance to the
Turkish Air Force." One of the items on the list was Space
Training. TUAF BG Yilmaz requested that the USG respond to
TUAF's request to receive the 45-day training course
(150C-200T) and also agree to provide military (as opposed to
civilian contractor-provided) courses to Turkish officers.
BG Yilmaz said that TUAF would raise the issue again at the
PMWG meeting in December. Embassy/ODC recommend that OSD and
other appropriate USG agencies complete their review of
TUAF's request and, if possible, deliver a favorable response
to the TUAF at the PMWG meeting in December.


Action Item 4: The USG will provide a briefing on the way
ahead for the Global War on Terrorism (GWOT) and Operation
Enduring Freedom (OEF).


Recommendation: While the USG provided GOT civilian and
military officials a number of briefings on the GWOT and OEF
earlier this year (ref c), Embassy recommends that the USG
provide the PMWG an updated briefing in December (with a
recommendation for a power-point presentation) on our current
GWOT/OEF activites as well as our current thinking for future
activities.


Action Item 5: Bilateral Working Groups (Partnership in Space
Cooperation, Technical Experts Group, and the Caucasus
Working Group) will meet separately and report to the
HLDG/PMWG.


Recommendation: Embassy understands that all of the
bilateral working groups have met since the HLDG meeting in
April. Embassy recommends that all three working groups
brief the PMWG in December on the results of these meetings
and outline future activities.


Outstanding Security Assistance Working Group (SAWG) Action
Items


Action Item 1: The US agreed to look into the status of
Turkey's third-country transfer requests of US-origin
equipment to Bosnia-Herzegovina and Pakistan and report back
to Turkey.


Recommendation: Embassy/ODC recommend that the State
Department, in conjunction with other appropriate agencies,
complete review of the GOT's requests and provide GOT
officials responses by NLT than the PMWG meeting. If
Washington requires additional information from the GOT in
order to process the requests, we ask that Washington provide
us the details prior to the December meetings and the Embassy
will forward them to the GOT.


Action Item 2: Turkey agreed to provide the US a list of open
third-country transfer requests and to encourage other
countries to sign the "blanket assurance" agreements with the
US.


Action Taken: Embassy/ODC have not received such a list, but
understand that DSCA and/or the State Department (PM/RSAT)
may have received one. If Washington agencies have received
such a list, we recommend that Washington initiate (and where
possible complete) the inter-agency review process in time
for the SAWG meeting and inform the Embassy of any action
taken so it can be included in the second written quarterly
status report.


Action Item 3: Turkey and the US agreed that issues related
to potential joint research and development and co-production
opportunities should be discussed at the Defense Industrial
Cooperation (DIC) Meeting.


Recommendation: Embassy/ODC believe this action item has
been overtaken by events. On November 11, 2002, ODC received
a letter from TGS J5 Lt. Gen. Turgut advising that, as a
result of an inter-governmental study (including TGS and
MND), the GOT has decided to cancel the Turkish-US Defense
Industrial Cooperation (DIC) and fold discussion of
DIC-related issues into the HLDG's SAWG. Given that the DIC
has not met since March 1998, and senior MND leadership have
resisted USG efforts to convene a meeting (they do not
believe it is necessary), we concur with TGS's decision and
recommend that Washington endorse it. In our view, folding
DIC issues into the SAWG (which is controlled by TGS) offers
us the best chance to make progress on DIC-related issues.
If Washington concurs, we recommend that Washington agencies
come to the SAWG with a list of possible DIC-related areas of
cooperation to present to TGS to demonstrate our commitment
to furthering US-GOT defense industrial cooperation.


Action Item 4: Turkey expressed a desire for the USG to
continue to review Ankara's request to forgive FMS debts and
interest due.


Recommendation: This issue remains a top TGS priority.
Discussion of the issue within MFA and military circles has
increased recently as a result of press reports that the USG
is considering providing Turkey a large assistance package.
Embassy/ODC understand the difficulties associated with debt
forgiveness. We also understand that the larger issue of
assistance to Turkey is being discussed in other fora. That
said, we do not believe the USG can unilaterally drop the
issue of FMF debt relief from the HLDG agenda. The key here
is to be honest and upfront with the Turks about the
possibility of debt relief. Therefore, we recommend that
during the SAWG meeting in December, the USG brief TGS on our
current thinking on the possibility of providing Turkey debt
relief and inform them that assistance for Turkey in general
is being discussed in other fora.


Action Item 6: The US will update Turkey on AEW&C Source
Code availability as soon as the USAF completes the
evaluation.


Recommendation: This is a high-priority and front-burner
issue for TUAF and TGS. Senior TUAF officers most recently
raised this issue with Lt. Gen. Walters during his November
19-22 visit to Ankara. Embassy/ODC understand Washington is
reviewing Boeing's request to reconsider some of the provisos
placed on its export license, and that the review process is
not likely to be complete until after December 4 -- the date
of contract effectivity for the AEW&C. While TGS and TUAF
have told us they can "slightly" extend the contract
effectivity date while the USG completes its review (we
expect the same holds true for Boeing), they asked that the
USG complete its review and notify the GOT of the results as
soon as possible. Embassy/ODC therefore recommend that the
relevant Washington agencies complete their review advise the
Turks of the decision, if possible before December 4, but NLT
the SAWG meeting in December.


Action Item 7: The US will continue to monitor the status of
the EX-IM Bank Helicopter Guarantee Facility (HGF) loan
request for SEA Hawk Helicopters project and provide support
where possible.


Recommendation: This issue continues to be one of TGS's
highest priorities (and the number one priority for the
Turkish Navy). TGS CHOD Ozkok raised it during his November
5 meetings in Washington. Embassy/ODC understand that
Washington has not re-engaged Congress on this issue since
Congress expressed its opposition to an extension some months
ago. Sikorsky's President/CEO recently told DCM that
Sikorsky did not have alternative financing ideas. He
expressed hope that, if the EX-IM HGF program could not be
extended, terms (especially the high exposure fee) of the
Defense Excess Loan Guarantee (DELG) program could be eased.
From our vantage point, we see two options: (1) re-engage
relevant members of Congress and make the case for an
extension or (2) not press for an extension, let the issue
die and examine alternative financing mechanisms to assist
the Turks acquire the helicopters. In our view, maintaining
the current position -- "DOD supports an extension" -- is not
sustainable and in many ways is misleading the Turks. We
understand that the extension of the HGF is one of the issues
that is under consideration as part of a larger assistance
package to Turkey. We therefore recommend that Washington
agencies reach a consensus position on whether the
Administration intends to press for an extension of the HGF
and brief the Turks on our position during the PMWG/SAWG
meetings in December.
Action Item 10: The US agreed to provide status updates of
export license requests on specific licenses when requested
by the Turkish Embassy in Washington.
Action Taken: Embassy/ODC is not aware of specific requests
made by the Turkish Embassy in Washington. That said, we
know TUAF, MFA and TGS are concerned about the status of
Washington's review of Boeing's request for proviso waivers
on its export license for the AEW&C program. We therefore
recommend that Washington agencies provide the Turkish
Embassy in Washington regular updates on the inter-agency
review related to the AEW&C program, as well as respond to
any other outstanding requests from the Turkish Embassy that
may exist.
Action Item 11: The US agreed to investigate further to
determine the best forum for the C4ISR system, software radio
development and frequency management projects and inform
Turkey.


Recommendation: Embassy/ODC are unaware of any action taken
on this issue. We recommend that the appropriate Washington
agencies undertake the necessary review and, if possible,
provide the GOT a formal response NLT the SAWG meeting.


Action Item 14: The US recognizes late apportionment of IMET
funds results in cancellation and loss of courses in January
and February and will make every effort to provide funding in
a timely manner. This process is largely impacted
by the USG budget process.


Recommendation: Embassy/ODC recommend that Washington brief
the Turks at the SAWG meeting on the IMET funding and
disbursement process, including those factors that may impact
the timing of the disbursement of IMET funding. We also
recommend that Washington explain to TGS the reason for any
delays that we may envision and, where possible, any steps
the USG intends to take to expedite the delivery of IMET
funding.


Action Item 15: For the pilot exchange program, a reply is
expected from the USG about the revised GOT proposal on UH-60
utility helicopter pilot exchange program.


Recommendation: In our first quarterly written report, we
advised the GOT that the USG intended to provide the GOT a
response to its revised proposal on UH-60 utility helicopter
by September/October 2002. It is our understanding that the
USG has not yet provided a response. We recommend that the
USG provide the Turks a response NLT the SAWG meeting.


Action Item 16: The following HLDG will be hosted by the US
next year.


Recommendation: Embassy/ODC understand that OSD intends to
host the 18th HLDG meeting in the US in spring 2003. We
recommend that OSD deliver at the December 16-18 PMWG/SAWG
meetings a formal invitation from ASD Crouch to TGS D/CHOD
Gen Buyukanit (with a specific date and venue to be determine
later) offering to host the 18th HLDG in the US in spring

2003. We believe that such a gesture will demonstrate the
importance we attach to the HLDG and our intention to follow
through on our commitment to host the 18th HLDG meeting.


Action Item 17: Turkey and the US agreed to provide a
quarterly written update (on the status of the action items).
The two sides agreed to meet in six months for another
update and discussion.


Recommendation: Embassy/ODC recommend that the USG side
provide its second quarterly written update at the PMWG/SAWG
meeting in December.


DEUTSCH