TURKEY, BAE SYSTEMS AND SPEWS II: FURTHER DELAY

C O N F I D E N T I A L ANKARA 004016

SIPDIS


STATE PM (DAS MAGGI) AND EUR/SE; DSCA FOR LT. GEN. WALTERS
AND LTCOL BUCHHOLZ; DTSA FOR S. SEVIER; SAF/IA FOR W.
MITCHELL; OSD FOR DUSD BRONSON; DTSA FOR S. SEVIER


E.O. 12958: DECL: 03/19/2013
TAGS: MASS TU PREL
SUBJECT: TURKEY, BAE SYSTEMS AND SPEWS II: FURTHER DELAY
IN USG POSITION ON MLA RISKS LOSING DEAL ALTOGETHER

(U) Classified by Ambassador W. Robert Pearson. Reasons:
1.5 (B and D).



1. (U) This is an action request. See para 5.



2. (C) BAE Systems and the Turkish government have been
trying to secure an amendment to an existing Manufacturing
License Agreement (MLA) that re-hosts Turkish software and
jamming routines on the new SPEWS II hardware since early

2003. Turkey's F-16 defensive system is based on the SPEWS
"type" of program. We understand the MLA amendment is
currently with DOD and that while a number of offices there
support the amendment, the US Air Force appears to have
reservations. The Turks have agreed to extend their contract
with BAE until July 15 in the hope the USG will approve the
amendment to the MLA. If the MLA amendment is not approved
by July 15, the Turks have indicated they may cancel the
program and reactivate negotiations with the French or the
Israelis.



3. (C) We recognize possible concerns regarding release of
sensitive technology to NATO Allies including Turkey. We
understand the proposed MLA amendment covers technology
similar to that released to Turkey for earlier versions of
the F-16 with the SPEWS I program in 1997. The Country Team
is not aware of any information that suggests that Turkey has
not followed through on its commitments to safeguard and
protect the technology it received under SPEWS I. Turkey has
a strong track record of safeguarding US technology.



4. (C) If a positive decision is not reached by July 15 or if
the USG disapproves the MLA amendment, there could be
negative repercussions and this would be a setback for
efforts to put the US-Turkish bilateral relationship back on
track. In the aftermath of OIF, we have been suggesting
Turkey define its cooperation with the US to give renewed
confidence to our work together. Refusing to release
technology that we would make available to other NATO Allies
would raise concerns and questions about our sincerity.
There are also sound business and policy reasons to approve
the MLA amendment, including support for US defense industry
in an important market and increased interoperability between
Turkish and US systems. Turkey,s 58 Block 50 F-16 aircraft
do not have any electronic warfare capability, severely
inhibiting their ability to support NATO and US-Turkey
bilateral operations.



5. (C) Action request: The Embassy and ODC request that DOD
agencies work to reach a consensus position in support of the
MLA amendment and forward the MLA amendment to the State
Department for final approval before the contract between BAE
and the GOT expires on July 15. If DOD is leaning toward
opposing the MLA amendment, before Washington reaches a final
inter-agency position, we suggest that Washington consider
having SAF/IA and the Turkish Air Force meet in person to
give SAF/IA an opportunity to explain to the Turks its
concerns and give the Turks the same opportunity to assuage
SAF/IA,s concerns.
PEARSON