C O N F I D E N T I A L SOFIA 000027

SIPDIS


STATE FOR PM, EUR/PRA AND EUR/SCE

E.O. 12958: DECL: 01/05/15
TAGS: MASS MARR PREL PGOV PL IZ BU
SUBJECT: BULGARIA PUSHES FOR MILITARY SALES TO IRAQ

REF: (A) USDAO SOFIA 6 811 0045 05
(B) 04 SOFIA 2261 (C) 04 SECTO 005
(D) 04 SECTO 007 (E) 04 WARSAW 5473

(U) CLASSIFIED BY AMBASSADOR JAMES PARDEW, FOR REASONS
1.4 (B) AND (D).


1. (C) SUMMARY: In another sign that Bulgarian political
leaders are agressively looking for concrete benefits from
their military participation in Iraq, Deputy Prime Minister
and Minister of Economy Lydia Shuleva met with Ambassador
and the Iraqi Ambassador to Bulgaria, Hayder Al Barrack, on
January 4. Shuleva requested the meeting amid signs of
increasing Bulgarian frustration over their inability to
win any substantial contracts for Iraq and the recent Iraqi
award of a 236 million USD military contract to a Polish
defense contractor (ref E). Both Ambassadors presented
specific recommendations on methods to improve Bulgaria's
contract chances and encouraged the Bulgarians to be more
aggressive in Washington and Baghdad in their search for
contracts. Deputy Minister of Foreign Affairs Nikolay
Milkov and Petur Karaangelov, Director of the state-owned
arms trading firm, Kintex, also attended the meeting. END
SUMMARY.


2. (C) Ambassador expressed gratitude to Shuleva for
Bulgaria's help in Iraq and pledged to continue to work
with the GOB to assist it in its attempts to land contracts
for Bulgarian defense firms. Ambassador suggested that the
GOB military attachQ in Washington should take a more
forward-leaning stance in helping Bulgarian companies find
appropriate contracts, and that the GOB should use its
commercial advocates in Washington, Patton Boggs, to
assist. He also suggested that the GOB form a consortium
of interested Bulgarian defense companies to bid more
effectively on coming contracts and subcontracts.
Concerning the Polish deal, Ambassador clarified that this
was a contract between the GOP and IIG and not a direct
U.S. contract. He emphasized the importance of restoring
Bulgarian non-military representation in Baghdad as a means
to further its interests there, since presently the GOB has
no diplomatic representation in Baghdad. Ambassador said
contracts are competitive and Bulgaria must be competitive
to win them.


3. (C) Iraqi Ambassador to Bulgaria Hayder Al Barrack said
that Polish diplomats in Baghdad had helped win the large
contract. Al Barrack added that the GOB must have "direct
contact" with Iraqi officials in Baghdad if they want to
get their foot in the door. He encouraged the Bulgarians
to restore their non-military presence in Baghdad as soon
as possible. He told Shuleva that after the January
elections the GOB should invite high-level Iraqi officials
and ministers to Sofia in order to establish contact with
their Iraqi government counterparts.


4. (C) COMMENT: This meeting was one more example of
Bulgarian eagerness to land serious contracts for Iraqi,
which several high-level Bulgarian officials have expressed
to us in recent months. We have encouraged the Bulgarians
to take advantage of their commercial competitiveness,
especially in the defense sector, while simultaneously
cautioning them that Bulgarian firms cannot expect to be
handed contracts on a platter.