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