UAE BORDER SECURITY TAKES ANOTHER STEP AHEAD

C O N F I D E N T I A L ABU DHABI 002972 SIPDIS STATE FOR NEA, NP/ECC AND PM/ODTC COMMERCE FOR BIS/OIP AND AS/EA/OC CHAIR DFLYNN DHS FOR CBP E.O. 12958: DECL ON 08/31/2014 TAGS: BEXP ETRD ECON TC SUBJECT: UAE BORDER SECURITY TAKES ANOTHER STEP AHEAD 1.(U) CLASSIFIED BY DEPUTY CHIEF OF MISSION RICHARD A. ALBRIGHT FOR REASON 1.5(b),(d)and (e) ¶2. (C) BIS OFFICER MARY O'BRIEN MET WITH LOCAL REPRESENTATIVES OF RAYTHEON CORPORATION (PLEASE PROTECT) TO DISCUSS THEIR BUSINESS PROSPECTS IN THE UAE. THE RAYTHEON REPS SAID THE UAE WOULD LIKE TO MOVE MORE TOWARD DIRECT COMMERCIAL SALES. ACCORDING TO USLO CHIEF, THE UAE MILITARY DOES NOT LIKE TO PAY THE FMS SURCHARGE (2.5%). THE UAE ALSO BELIEVES THEY CAN SQUEEZE CONTRACTORS HARDER THAN THEY CAN THE USG, ESPECIALLY IN THE REALM OF OFFSETS; HOWEVER, CERTAIN U.S. TECHNOLOGIES WILL ONLY BE AVAILABLE THROUGH FMS. ¶3. THE RAYTHEON REPS STATED THAT THE UAEG HAD RECENTLY AWARDED THEM A SOLE SOURCE CONTRACT WORTH APPROXIMATELY $1 MILLION TO PROVIDE BORDER SURVEILLANCE AT THE UAE-SAUDI BORDER IN THE AREA OF GHWEIFAT AND AT THE UAE BORDER WITH OMAN NEAR AL AIN. RAYTHEON WILL INSTALL A SYSTEM THAT INCLUDES NIGHT VISION, INFRARED AND OPTICAL CAMERAS, ALONG WITH SOFTWARE TO ENHANCE THE CAPABILITIES OF ALL THE HARDWARE. IF THE UAEG THINKS THESE TEST INSTALLATIONS ARE SUCCESSFUL IT WILL ACQUIRE MORE RAYTHEON SURVEILLANCE SYSTEMS FOR ITS ENTIRE LAND BORDER. RAYTHEON REPS NOTED THAT THE UAE IS CONCERNED THAT TERRORISTS COULD SEEK TO MOVE THEIR BASE OF OPERATIONS TO THE UAE AS SECURITY SERVICES IN NEIGHBORING COUNTRIES CONTINUE TO CRACK DOWN ON SUCH ACTIVITIES. ¶4. (C) THE RAYTHEON REPS ALSO ADVISED THAT THEY ARE WORKING WITH THE COAST GUARD AND THE OIL COMPANIES TO DEVELOP SECURITY SYSTEMS FOR ONSHORE AND OFFSHORE OIL INSTALLATIONS. THERE IS GREAT CONCERN HERE ABOUT THE VULNERABILITY OF THESE OIL INSTALLATIONS. ¶5. (C) ALTHOUGH THE NATIONAL BORDER SECURITY PROGRAM IS A PET PROJECT OF MAJOR GENERAL HAMAD THANI AL RUMAITHY, UAE ARMED FORCES DEPUTY CHIEF OF STAFF, THE RAYTHEON REPS SAID THEY WERE ALSO DEALING DIRECTLY WITH THE VARIOUS SERVICES, INCLUDING SPECIAL OPERATIONS COMMAND (SOC),THE LAND FORCES AND THE NAVY. THEY SAID EACH OF THE SERVICES IS INTERESTED IN HAVING THEIR OWN EQUIPMENT TO DEAL WITH BORDER SECURITY ISSUES AND THEY DO NOT ALWAYS COMMUNICATE WITH ONE ANOTHER. ¶6. (C) NOTE: BIS OFFICER RECENTLY LEARNED THAT DUBAI CUSTOMS IS LOOKING TO IMPROVE ITS COASTAL SURVEILLANCE ALONG THE DUBAI CREEK, AT PORT RASHID AND JEBEL ALI PORT, AND ESTABLISH SUCH SURVEILLANCE SYSTEMS AROUND THE NEW PALM AND WORLD ISLANDS JUST OFF THE COAST OF DUBAI. ¶7. (C) BIS OFFICER DISCUSSED EXPORT LICENSING ISSUES WITH RAYTHEON. RECENTLY THE USG HAS PLACED ACCOUNTABILITY AND END USE MONITORING CONDITIONS ON SEVERAL LICENSES AND THE UAEG CONSIDERED THESE CONDITIONS ESPECIALLY ONEROUS. THESE CONDITIONS HAVE JEOPARDIZED THE SALE OF U.S. TECHNOLOGY TO THE UAE, AN IMPORTANT COALITION PARTNER. RAYTHEON SAID THAT THEY PLAN TO MEET IN THE FALL WITH DEFENSE, STATE AND COMMERCE LICENSING OFFICIALS TO PROVIDE THEM WITH INFORMATION ABOUT THE TECHNOLOGIES RAYTHEON IS LOOKING TO SELL TO THE UAE AND INFORMATION ABOUT THE UAE MILITARY. SISON