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