Identifier
Created
Classification
Origin
05CARACAS2140
2005-07-14 17:31:00
CONFIDENTIAL
Embassy Caracas
Cable title:  

US AERONAUTICS COMPANY BREAKS DEAL WITH GOV

Tags:  PGOV PREL MASS VE 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L CARACAS 002140 

SIPDIS


NSC FOR CBARTON
HQSOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 05/04/2015
TAGS: PGOV PREL MASS VE
SUBJECT: US AERONAUTICS COMPANY BREAKS DEAL WITH GOV

REF: A. IIR 7 500 0267 05

B. IIR 7 500 0404 05

Classified By: POLITICAL COUNSELOR ABELARDO A. ARIAS
FOR 1.4 (D)

-------
Summary
-------

C O N F I D E N T I A L CARACAS 002140

SIPDIS


NSC FOR CBARTON
HQSOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 05/04/2015
TAGS: PGOV PREL MASS VE
SUBJECT: US AERONAUTICS COMPANY BREAKS DEAL WITH GOV

REF: A. IIR 7 500 0267 05

B. IIR 7 500 0404 05

Classified By: POLITICAL COUNSELOR ABELARDO A. ARIAS
FOR 1.4 (D)

--------------
Summary
--------------


1. (C) Concerned about safety issues since the expulsion of
US personnel from Venezuelan military bases, Lockheed Martin
plans to withdraw its engineer responsible for servicing the
Venezuelan Air Force's F-16 squadron. The engineer told
poloff July 12 he met Israeli contractors at the base who
were negotiating upgrades to the aircraft. He added that the
F-16 squadron was decaying and its personnel had a poor work
ethic. According to DAO, the Venezuelan Air Force can keep
the planes in the air for years if it uses parts from its 13
grounded planes and steals or otherwise illegally procures
foreign technology and expertise. We can expect the GOV to
continue to ignore the terms of US contracts and to seek
materiel from other countries. End summary.


2. (C) Lockheed Martin plans to withdraw its engineer
responsible for servicing Venezuelan F-16s at El Libertador
Air Base near Maracay, effectively breaking a contract for
which the GOV has already paid. Jaime Gabella, the Lockheed
engineer, told poloff July 12 his company had been concerned
about his safety since the GOV had removed all US personnel
from Venezuelan bases. (Note: DAO does not believe Gabella
is in any danger.) Gabella said he planned to leave
Venezuela on July 30 without giving notice so the Venezuelan
Air Force would not demand that he stay.

--------------
Israeli Meddling
--------------


3. (C) Gabella noted the presence of Israelis at the
airbase, who admitted to him they were negotiating upgrades
to the F-16s (REFTELS). The former US personnel exchange
program (PEP) officer at El Libertador saw what he described
as targeting pods attached to the planes, although he could
not confirm they were operational. According to DAO, only
Israel has technicians in Venezuela capable of installing
such additions. A Venezuelan Air Force aficionado website
also reports that Israel is close to inking a deal with
Venezuela to upgrade the avionics of the F-16, which would
allow the jet more combat capability.

--------------
Grupo 16 Struggling
--------------


4. (C) Gabella estimated that Grupo 16, the F-16 squadron,
would survive no longer than a year because of its
dilapidated aircraft and its unprofessional personnel.
Gabella said he thought Grupo 16 wanted to keep flying, and
President Hugo Chavez had told the squadron he planned to
maintain the F-16 program. Chavez promoted the group
commander, Jose Alexis Colina, to Brig. General on July 5.
Nonetheless, Gabella said he thought Chavez was planning to
let Grupo 16 die because of his scorn for US materiel. The
Grupo 16 officers, moreover, worked little and lacked an
agenda, according to Gabella. He described the pro-Chavez
members of the group as unsophisticated, saying they would
believe anything they were told about the United States.
These personnel were also non-confrontational, he said; they
would back down rather than argue their anti-US views.


5. (C) According to DAO, Gabella's reporting on the status
of the aircraft is unreliable because Gabella seemed
uninterested in examining the planes and relied on the US PEP
officer to deal with the Venezuelan personnel. DAO noted
that eight (Gabella said six) of the 21 aircraft are flyable
and three to five are mission capable. These planes could
last years if the Air Force were to cannibalize the grounded
F-16s for parts and to steal or otherwise illegally obtain
foreign expertise, according to DAO and MILGROUP.

--------------
Comment
--------------


6. (C) We have no hard evidence that Israel and Venezuela
have begun modifying the planes illegally. Under the terms
of the US-Venezuelan contract, third parties cannot upgrade
the aircraft without US permission or sell US parts without
an export license. These obligations, however, will not
constrain the GOV. The Venezuelan military has not yet
allowed an inspection required under the General Security of
Military Information Agreement to verify they are properly
handling classified information. They neither sought
permission nor notified the USG before giving 11 US T-34
aircraft to Bolivia in August 2004. Although the GOV will
not close a deal for Russian fighters in the foreseeable
future, Chavez will continue to try to seek other suppliers
as potential alternative sources to US planes and parts.
Brownfield


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2005CARACA02140 - CONFIDENTIAL