POSSIBLE SLOVAK ARMS SALES TO LIBYA, CAMEROON,

C O N F I D E N T I A L BRATISLAVA 000525

SIPDIS


DEPT FOR EUR/PRA (CORDOVA),EUR/SCE (KABUMOTO),NEA/ENA
(BUTLER),VC (ELLIOT)
OSD FOR KELLEY
NSC FOR TEPPER

E.O. 12958: DECL: 05/24/2014
TAGS: MARR MASS ECON PGOV PINR PREL LO
SUBJECT: POSSIBLE SLOVAK ARMS SALES TO LIBYA, CAMEROON,
YEMEN, AFGHANISTAN, OR AZERBAIJAN

REF: A. STATE 68238


B. BRATISLAVA 436

CLASSIFIED BY: DCM SCOTT N. THAYER FOR REASON 1.4 (B).


1. (C) SUMMARY AND REQUEST FOR GUIDANCE: PETER PENIASKA, HEAD
OF THE SLOVAK ARMS FIRM PETINA INTERNATIONAL, IS SEEKING THE
USG POSITION ON POTENTIAL SALES OF SLOVAK MILITARY EQUIPMENT
TO LIBYA AND OTHER COUNTRIES. PETINA IS ACTING AS A
MIDDLEMAN TO ASSIST THE GOS IN DISPOSING OF STOCKPILED OR
SURPLUS MILITARY MATERIEL. HIS PROPOSALS ARE NOT FORMAL GOS
INITIATIVES. PENIASKA PROPOSED SELLING T-72 TANK PARTS TO
LIBYA. POST REQUESTS GUIDANCE AS TO WHETHER THE USG
CONSIDERS THESE LETHAL EXPORTS PER REFTEL A. WE ALSO REQUEST
INFORMATION ON ANY OBJECTIONS THE USG WOULD HAVE TO THE OTHER
POTENTIAL SALES, IN ANTICIPATION OF ENGAGING THE SLOVAK
AUTHORITIES IF PETINA DECIDES TO MOVE FORWARD. END SUMMARY.


2. (C) ON 24 MAY 2004, PETER PENIASKA, HEAD OF THE SLOVAK
ARMS FIRM PETINA INTERNATIONAL, ASKED TO SPEAK WITH EMBOFF TO
FOLLOW UP ON PRIOR DISCUSSIONS CONCERNING POTENTIAL SLOVAK
ARMS SALES (REFTEL B). PENIASKA, WHO WOULD RECEIVE A
COMMISSION ON ANY FUTURE SALES, CONTINUES TO BE SOMEWHAT
CRYPTIC AND RELUCTANT TO SHARE DETAILS. WHEN EMBOFF DIRECTLY
QUESTIONED HIM ABOUT HIS MOTIVES, HE STATED THAT HE DECIDED
TO SPEAK WITH A USG REPRESENTATIVE ON THE ISSUES BELOW AFTER
TALKING TO SLOVAK MINISTER OF FINANCE IVAN MIKLOS. IN THE
ORIGINAL, EARLIER DISCUSSION, PENIASKA HAD REFUSED TO
IDENITIFY POTENTIAL RECIPIENT COUNTRIES FOR THE POSSIBLE SALE
OF ASSAULT RIFLES. IN THIS SECOND DISCUSSION, HE AT FIRST DID
NOT WANT TO SAY MORE THAN THAT THE COUNTRY WAS LOCATED IN
AFRICA. EMBOFF PRESSED HIM, AND HE FINALLY DISCLOSED THAT THE
RECIPIENT WOULD BE CAMEROON. (COMMENT: PENIASKA IS CLEARLY
TRYING TO GET AN ADVANCE READOUT ON HOW USG WILL REACT SHOULD
THE SLOVAK GOVERNMENT DECIDE TO MOVE FORWARD WITH ANY OF THE
ARMS SALES DESCRIBED BELOW. END COMMENT.)


3. (C) ACCORDING TO PENIASKA, THE SLOVAK GOVERNMENT COULD
SELL 30,000 TYPE 58 ASSAULT RIFLES PLUS 40 MILLION ROUNDS OF
AMMUNITION TO EITHER AFGHANISTAN OR CAMEROON. IF SOLD TO
CAMEROON, THEY WOULD BE DESTINED FOR USE BY THE POLICE OR
ARMED FORCES.


4. (C) PENIASKA ALSO DESCRIBED A SECOND POTENTIAL ARMS SALE
FOR SOME 150 T-72 TANKS, PLUS AMMUNITION. POTENTIAL
CUSTOMERS FOR THESE TANKS WERE THE MINISTRY OF DEFENSE (MOD)
IN YEMEN OR THE MOD IN AZERBAIJAN. BOTH THESE COUNTRIES HAD
EXPRESSED INTEREST IN BUYING THE SLOVAK TANKS, ALTHOUGH THE
YEMENI MOD HAD NOT YET PRESENTED AN END USER CERTIFICATE.
THE TANKS WERE ABOUT 12 YEARS OLD AND IN EXCELLENT CONDITION,
BECAUSE THEY HAD NOT BEEN USED MUCH. ABOUT 50 OF THE TANKS
HAD ORIGINAL (RUSSIAN) RANGE FINDERS, AND THE REMAINDER WERE
EQUIPPED WITH LASER/OPTICAL RANGE FINDERS.


5. (C) A THIRD POSSIBLE SALE OF MILITARY EQUIPMENT IS TO
LIBYA. PENIASKA NOTED THAT LIBYA HAD ABOUT A USD 850 MILLION
DEBT TO THE CZECH REPUBLIC AND SLOVAKIA; APPROXIMATELY USD
200 MILLION OF THIS WAS DUE SLOVAKIA. PENIASKA NOTED THAT HE
HAD RECENTLY MET WITH THE LIBYAN AMBASSADOR TO SLOVAKIA AND
THE LIBYAN MILITARY ATTACHE TO DISCUSS WAYS FOR LIBYA TO
BEGIN REPAYING THE DEBT GRADUALLY. THE LIBYAN OFFICIALS
NOTED THAT THEY NEEDED SPARE PARTS FOR THEIR AGING T-72
TANKS, AND THEY TALKED ABOUT A SPECIFIC POTENTIAL SALE OF
TANK SPARE PARTS WORTH USD 12 MILLION. THE SLOVAKS INTENDED
TO WORK TOGETHER WITH UNNAMED CZECH ARMS FIRMS TO FULFILL
THIS DEAL, SHOULD IT GO FORWARD. PENIASKA HAD SHARED THE
DETAILS OF THIS DISCUSSION WITH MINISTER MIKLOS, WHO SAID HE
WOULD SUPPORT SUCH A SALE AS LONG AS THE USG WAS NOT OPPOSED.
PENIASKA ADDED THAT HE HAD BEEN INVITED TO GO TO TRIPOLI TO
DISCUSS
DETAILS OF A DEAL AND HAD ORIGINALLY ACCEPTED THE INVITATION,
BUT ON THE ADVICE OF MIKLOS HE CANCELLED THE TRIP PENDING A
READOUT FROM USG ON POSSIBILITIES OF COMPLETING THIS SALE.
PENIASKA CLAIMED THAT IF HE DOES GO TO LIBYA, HE INTENDS TO
DISCUSS BROADER ISSUES OF TRADE AND SALES BETWEEN THE TWO
COUNTRIES, NOT JUST MILITARY ARMS DEALS. FOR INSTANCE, LIBYA
WANTS TO BUILD A POWER PLANT, AND THE SLOVAKS INTEND TO
PROPOSE PROVIDING MATERIALS TO HELP WITH THIS PROJECT.


6. (C) COMMENT AND REQUEST FOR GUIDANCE: THE GOS ITSELF HAS
NOT ENGAGED US ON ANY POSSIBLE ARMS SALES, SO PENIASKA'S
REQUEST FOR USG APPROVAL IS AHEAD OF THE CURVE. NONETHELESS,
IN ANTICIPATION THAT THE GOS MIGHT DECIDE TO PURSUE ONE OR
MORE OF THE SCENARIOS OUTLINED BY PENIASKA, WE REQUEST
GUIDANCE ON THE USG REACTION TO THESE POTENTIAL DEALS.
WEISER

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