DOD PARTICIPATION IN TURKEY'S FY07 INTERNATIONAL

UNCLAS ANKARA 007248 SIPDIS COMMERCE PLEASE PASS TO WILLIAM DERK E.O. 12958: N/A TAGS: MARR MASS PREL TU SUBJECT: DOD PARTICIPATION IN TURKEY'S FY07 INTERNATIONAL DEFENSE FAIR (IDEF) REF: SECDEF 012035Z SEP 05 ¶1. Per reftel request for recommendations for DOD participation in international trade shows, Mission supports DOD attendance at the 8th International Defense Industry Fair (IDEF) to take place in Ankara, Turkey in September 2007. The 7th IDEF, held in Ankara from Sept. 27-30, 2005, was attended by some 240 high-level officials from 42 European and other countries, and received the participation of 427 companies from 49 countries. It provided a forum for Lockheed Martin and JSF partner countries to showcase the Joint Strike Fighter and for U.S. firms considering or participating in tenders for an attack helicopter, a utility helicopter and a trainer aircraft to market their products to Turkey's decision-makers and visiting foreign dignitaries. ¶2. The superiority of US defense equipment is best demonstrated through fairs such as IDEF, where foreign government decision-makers and end-users can see and test the equipment firsthand. However, American suppliers are facing significant challenges in the Turkish market. Turkey's current strategy is to develop an indigenous defense industry with the assistance of foreign defense firms. Utilizing direct commercial sales (DCS) for the acquisition of an attack helicopter, utility helicopter and other equipment, Turkey is requiring 100% transfer of technical data packages and imposing other onerous terms and conditions in its requests for proposal that US firms have so far been unwilling to meet. By placing greater emphasis on development of an indigenous industry, Turkey risks lowering the quality of its defense equipment and the level of its US and NATO inter-operability. Turkey has also been actively courting European defense firms, possibly in a move to shore up EU member support for Turkey's eventual accession. ¶3. Senior US European Command and Air Force (SAF/IA) attendance at the 2007 IDEF would demonstrate continued USG commitment to identify mutually-beneficial solutions to assist Turkey to modernize its military forces; counter the strong European presence at the fair and show support for US defense firms; showcase the progress on the Joint Strike Fighter program; and add weight to the Mission's arguments for Turkey to adopt more reasonable technology transfer and contractual requirements so that American companies can better compete. WILSON