MOD ADVISOR CLAIMS LIMITED EGYPTIAN MILITARY

C O N F I D E N T I A L CAIRO 002897

SIPDIS

E.O. 12958: DECL: 04/13/2015
TAGS: PREL MASS CH EG
SUBJECT: MOD ADVISOR CLAIMS LIMITED EGYPTIAN MILITARY
INTERESTS IN CHINA

Classified by ECPO Counselor John Desrocher for reasons 1.4
(b) and (d).


1. (C) On April 13, PolOff asked senior MoD advisor MG
Fouad Abd al Haleem about the depth of MoD interests in
China. (Note: Defense Minister Tantawi visited China in the
fall of 2004, the Chinese Defense Minister just concluded a
visit to Egypt, the Egyptian Minister of Military Production
is in China this week, and the press reports a possible visit
to China by President Mubarak later this year. The MoD is
sensitive about questions regarding its relations with third
countries, yet MG Fouad had accompanied the MoD delegation to
China and is well placed to address potential MoD procurement
interests in particular. End note.) MG Fouad responded by
citing a "service life extension" program for 30-year-old
anti-tank missile systems; Egypt still had these systems in
service and sought a cost-effective way to extend their
utility. He said the MoD had explored options with China and
Russia.


2. (C) Elaborating on his sense of China's military
offerings, MG Fouad said that during his visit to China he
had seen a large exhibition of defense equipment which
included many items similar to arms and munitions produced in
Egypt. He said China offered "nothing sophisticated,"
although it had many systems that would constitute a marginal
upgrade from existing stocks in Egypt. He offered the
example of the 120mm mortar which Egypt produces, noting that
China had an enhancement on offer for about 100,000 USD per
unit. Fouad said the marginal enhancement was not worth the
price. Adding that the Chinese F-7 aircraft had "limited
capability" ("slightly better than the K-8 trainer" or the
MIG 21),MG Fouad summed up the China experience by stating
that "they do not have what we are looking for." He asked
rhetorically why Egypt would take interest in planes with
"low maneuverability" when they had F-16's already in the
inventory.


3. (C) MG Fouad further noted that Defense Minister Tantawi
prefers not to travel internationally and generally makes one
trip per year. He had traveled to the U.S. in late 2002,
France in 2003, and China in 2004. He said the reciprocal
visits with China were "just to keep contact," as was
Tantawi's prior visit to France.


4. (C) Regarding the Minister of Military Production's trip
to China, MG Fouad said that a large percentage of Egypt's
military production lines were dormant, having already
produced the requisite number of the systems they were set up
to manufacture. Given the fact that Chinese versions of
similar weaponry might constitute an upgrade over those
produced in Egypt, the Minister was reportedly on a mission
to analyze the potential benefits of restarting Egypt's
production lines to refit (upgrade) existing Egyptian weapons
stocks with Chinese technology. The Minister was essentially
"looking for jobs," he stated.


5. (C) Comment: Egypt's potential interests in China
undoubtedly go deeper than the analysis suggested by MG
Fouad, although we find his presentation credible in terms of
describing the primary intent of reciprocal military visits.
Mubarak's trip to China may be an opportunity to more fully
ascertain the breadth and depth of Egypt's political
interests. End comment.


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GRAY