Government of Lithuania request to purchase Dual

UNCLAS SECTION 01 OF 02 VILNIUS 000313

SIPDIS

STATE PLEASE PASS TO PM; EUR/NB

E.O. 12958: NA
TAGS: PREL MCAP MASS LH
SUBJECT: Government of Lithuania request to purchase Dual
Mounted Stinger Platform


1. Summary: The GOL requested an amendment to an existing
contract for the Stinger missile system on 23 March 2005 in
order to enhance NATO interoperability and realize a long-
term cost savings over the life of the modified contract.
Lithuania is requesting the purchase of eight Dual Mounted
Stinger (DMS) systems vice the eight Vehicle Mounted Stinger
Launch Platform (VMSLP) systems currently on order by the
GOL. During negotiations for the initial contract signed in
November 2002, the USG informed Lithuania that it would not
release the DMS system to non-NATO countries. Post strongly
supports Lithuania's request to amend the existing contract
in order to acquire the DMS system. End Summary.

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A Staunch, Active Ally
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2. Lithuania fully supports U.S. policies in the Global War
on Terrorism and staunchly supports Operation Enduring
Freedom and Operation Iraqi Freedom. Most recently,
Lithuania volunteered to lead a NATO Provincial
Reconstruction Team in Afghanistan, demonstrating its deep
commitment to NATO less than a year after accession to the
alliance. The Lithuanian Parliament, in September 2004,
approved a bill extending its military's participation in
Central and South Asia, the Persian Gulf, and the Balkans.
Lithuanian Special Operations Forces maintained a nearly
continuous presence in Afghanistan from November 2002 to
December 2004 and committed to return in 2006. They also
recently committed to participate in NATO Reaction Forces -5
and -6. Lithuanians have also served in Kuwait and Iraq
since April 2003, and over 100 Lithuanians are currently in
Iraq. Since 1994, over 1,300 Lithuanians have participated
in Peacekeeping operations in the Balkans. Over 100
Lithuanian troops serve there now. Lithuania continues to
transform its military from a territorial, defense-oriented
army to an expeditionary style force. Lithuania is
committed to having a fully deployable battalion combat team
with organic air defense assets ready to support NATO
operations by 2006.

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Background
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3. Lithuania signed a $31.3 million Letter of Acceptance
with the USG in November 2002 to purchase the Vehicle
Mounted Stinger Launch Platform (VSLPM) Short Range Air
Defense (SHORAD) system, a oneofakind system that is being
specifically engineered for Lithuania. The acquisition
agreement included 60 Stinger missiles and eight vehicle
mounted launch platforms. Lithuania initially requested the
Dual Mounted Stinger System (DMS),the US and NATO common
platform, but was only offered the VSLPM option. During
recent discussions with the SHORAD program management
office, the Office of Defense Cooperation and the Lithuanian
Military confirmed that switching from the current,
specially modified VSLPM system to the widely deployed DMS
system will greatly enhance Lithuanian interoperability with
US and NATO SHORAD systems and will reduce long-term
maintenance and sustainment costs over the next ten years.
A SHORAD site assessment time has already inspected
Lithuanian storage facilities and security
systems/procedures and found Lithuania to be in full
compliance with the required regulations for safeguarding
Stinger missiles.

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COUNTRY TEAM ASSESSMENT
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4. Post provides the following information pursuant to DSCA
request for Country Team assessment.


A. The reason the nation desires the articles or
services:
-- The amendment of the existing contract will provide
Lithuania with the already field-proven DMS system,
enhancing its units' interoperability with US and NATO
SHORAD units. Acquiring a system that is already widely
deployed throughout NATO will also reduce its maintenance
and sustainment costs.


B. The anticipated reaction of neighboring nations:

-- Post does not foresee an adverse affect on
neighboring nations. The VMSLP contract was signed in 2002
and there was no adverse reaction from neighboring
countries.


C. The ability of the purchaser to operate, maintain,
and support the article. Training required either in-
country or in the US and the possible impact of any in-
country US presence that might be required as a result of
providing the article:

-- Maintenance and operator training is already
included in the current contract and the amendment will only
require minor modifications to the current training plan,
which is still in development. US personnel regularly
conduct training events in Lithuania.


D. The source of financing and the economic impact of
the proposed acquisition:

-- There is no negative economic impact. The amendment
may entail a slight increase in the existing contract of
$33.1 million in Lithuanian national funds. However,
switching to the commonly deployed DMS system will result in
a long-term cost savings for the GOL.


E. Relevant human rights considerations that might
bear on the proposed acquisition:

--There are no human rights considerations that bear on
this amendment to the current acquisition.


F. Whether the US government should approve the
transfer of the article and reasons therefore:

-- Post recommends approval of Lithuania's request for
the procurement of the DMS. These articles will enhance the
combat effectiveness of the Lithuanian Army and its ability
to deploy a fully integrated Battalion Combat Team by the
end of 2006. Acquiring a US common system will also reduce
maintenance and sustainment cost for the Lithuanian Stinger
Platoons. Agreeing to this request will reinforce the
excellent bilateral relationship between our nations and
strengthen Lithuanian resolve to support OEF, OIF and Balkan
Peace Keeping Operations.


5. This is a fully coordinated country team assessment.


6. POC is LTC McDonough, Chief, Office of Defense
Cooperation, jmcdonough@san.osd.mil, 370-5-266-5641