BRIEF DISCUSSION OF BLUE LANTERN WITH SENIOR

C O N F I D E N T I A L ALGIERS 002230

SIPDIS

E.O. 12958: DECL: 11/02/2015
TAGS: ETTC KOMC MASS AG
SUBJECT: BRIEF DISCUSSION OF BLUE LANTERN WITH SENIOR
MILITARY

REF: ALGIERS 2058

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

REF: Algiers


1. (C) At President Bouteflika's annual November 1 reception
commemorating the declaration of the War of Liberation,
Ambassador had an opportunity to raise the Blue Lantern issue
with both Armed Forces Chief of Staff Gait-Salah and Ministry
of Defense Secretary General Senhadji. With both, Ambassador
expressed concern that this issue, though relatively minor
and technical in nature, could have concrete and serious
consequences for our military cooperation if left unresolved.
Ambassador noted that we had been obliged to suspend
licensing action on current and potential contracts and this
was good for neither Algeria nor the United States.
Precisely because what we were asking was so non-obtrusive --
essentially a letter confirming receipt of the equipment in
question -- we were frankly perplexed. We had a legal
obligation to protect sensitive U.S. technology and in this
case what we were asking of Algeria was nothing more than we
routinely asked even our closest allies like the United
Kingdom. We were especially perplexed because up until a
year ago Algeria had cooperated with the Blue Lantern
program.


2. (C) Gaid-Salah commented that the Algerian military staff
had given the green light to begin discussions of our next
joint military exercises in February, but made no comment on
Blue Lantern beyond saying the issue was discussed.
Senhadji, with whom Ambassador had a longer conversation,
noted that Algerian Ambassador Kherbi had just met with A/S
Rodman on this and other issues. He confirmed the issue was
under discussion but seemed to downplay it, noting it was a
"minor" issue that would hopefully be resolved. Ambassador
agreed it was a relatively minor issue but said it was
increasingly urgent and would have substantial, concrete
consequences for our cooperation if it was not resolved.
Specifically, it would impact on our ability to provide or
approve avionics upgrades for Algeria's C-130s. Without
these upgrades, these planes would not meet new aviation
standards taking effect in 2007 and thus, would no longer be
able to fly in European air space. Similarly, Spain would
not be able to deliver the CASA planes Algeria had purchased
because of sensitive U.S. technological components. Finally,
there was no way we would be able to proceed with more
sophisticated sales like the Chinook if Algeria was not able
to cooperate with even the minimal request we had made.


3. (C) Ambassador said we have repeatedly raised our Blue
Lantern concerns over the past several months precisely
because we wanted to avoid a situation where matters came to
a head and we had to suspend action on licensing requests.
The current suspension was not a matter of our trying to
pressure Algeria but was a reflection of our legal obligation
to protect sensitive U.S. technologies. In response to
Ambassador's remark that Algeria had previously cooperated on
Blue Lantern, Senhadji claimed they had done so on only one
case. Ambassador said that was not his information and that
he would double-check. (Comment: Embassy staff believes that
since the program started in 2001, there have been four such
Blue Lantern requests in which Algeria cooperated.)


4. (C) Ambassador said he has requested a meeting with MOD
Minister-Delegate Guenaizia. Given the potentially serious
consequences of not resolving this minor issue, Ambassador
said he had a responsibility to ensure directly that there
was no misunderstanding at senior levels about the situation
and implications for our military cooperation. Ambassador
noted that he had been among those supporting expanded
U.S.-Algerian military cooperation, and thus was especially
disappointed Algeria had not been able to cooperate with this
very minor request. Senhadji claimed the MOD appreciated
Ambassador's strong support for moving in this direction and
closed the conversation hoping the issue could be resolved.


5. (C) COMMENT: On November 6 Ambassador is hosting
departing Presidential Chief of Staff Belkheir at a
one-on-one lunch prior to his departure later in the week for
Rabat, where he will take up his duties as Algeria's new
ambassador. Ambassador intends to brief Belkheir in detail
on the Blue Lantern issue, in hopes that he will weigh in
with his colleagues in order to help put this problem behind
us.
ERDMAN