AMBASSADOR RAISES BLUE LANTERN IMPASSE WITH MFA

S E C R E T ALGIERS 002058

SIPDIS

E.O. 12958: DECL: 10/04/2015
TAGS: ETTC KOMC MASS AG
SUBJECT: AMBASSADOR RAISES BLUE LANTERN IMPASSE WITH MFA
SECRETARY GENERAL

SIPDIS

REF: STATE 160827 (NOTAL)

Classified By: Ambassador Richard W. Erdman,
for reasons 1.4 (b) (d)


1. (S) In an October 4 meeting with MFA Secretary General
Lamamra on other issues, Ambassador pushed hard on the Blue
Lantern impasse, frankly cautioning that this issue was
damaging perceptions of Algeria in Washington and
jeopardizing possibilities for increased military
cooperation. Ambassador explained that the State
Department's Blue Lantern program was established to protect
sensitive technologies from being transferred to unauthorized
parties. Protecting these technologies was important not
only to the United States but to our friends. For some time,
both the MFA and the Algerian Ministry of Defense had
cooperated fully with our requirements.


2. (S) About a year ago, Ambassador continued, we asked the
GOA to verify the receipt of equipment (containing sensitive
U.S. technologies) sold by a South African firm. We
requested confirmation from Algeria because we had come to
have doubts about the reliability of the South African firm
and knew we could trust Algeria. Despite our having raised
this issue on numerous occasions with MFA and MOD officials,
the GOA has not provided a response. Ambassador said we were
perplexed by this and felt there must be a misunderstanding
in view of Algeria's previous cooperation with the Blue
Lantern program.


3. (S) The Ambassador explained to Lamamra that the State
Department had a legal requirement to protect commercial
sales of sensitive U.S. technologies via the Blue Lantern
program. In the absence of Algerian cooperation, we had been
forced to suspend license approval for sensitive exports to
Algeria. To date, over a billion dollars of actual or
potential sales were being held up. This was good for
neither Algeria nor the United States. Ambassador said that
on the tactical level, he was sure we would get through this
largely technical problem sooner or later. The more
strategic concern, however, was that Algerian non-cooperation
with this program was creating negative perceptions of
Algeria.


4. (S) Ambassador noted this was happening at a time when
Algeria was interested in taking our military cooperation and
military sales relationship to the next higher level and when
he and others were urging closer cooperation. Algeria's
non-cooperation was undercutting these efforts and meant that
Algeria would have to work three times as hard to erase the
negative perceptions it was creating. Our inability to
process requests because of continued non-cooperation with
Blue Lantern would also have ramifications for Algeria's
ability to upgrade its C-130 fleet, upgrades that were
necessary in order for Algerian C-130s to meet European
avionics standards and continue to be able to fly in Europe.
Only the U.S. was able to supply the required technology.
Such a technology transfer was inconceivable as long as Blue
Lantern issues remained unresolved. It was in both our
interests to avoid such a problem.


5. (S) Given the increasing seriousness of this issue,
Ambassador said he was also personally disturbed that in
response to his request to meet with Minister-Delegate of
Defense Guenaizia to discuss this issue, the MOD had replied
with a note to our defense attache indicating the issue was
being handled by the Ministry of Foreign Affairs. Ambassador
said it was quite possible that the request for a meeting
could be bottled up at the same level in the MOD where we
believe the Blue Lantern problem originated. In this regard,
he noted that he had earlier raised his concerns with
(outgoing) presidential Chief of Staff Belkheir and that the
latter had subsequently called to say he had spoken to
Guenaizia and that the Minister-Delegate would be happy to
see the Ambassador. Ambassador said he would be returning to
Washington for consultations for several days in the first
part of October and, on his return, would seek a meeting with
Guenaizia in order to discuss our military cooperation in
light of his consultations. Lamamra responded that "God
willing" Ambassador would have his meeting.
ERDMAN