ARMENIA: MORE PROGRESS ON DEFENSE COOPERATION

C O N F I D E N T I A L SECTION 01 OF 05 YEREVAN 001811

SIPDIS

DEPARTMENT FOR EUR/CACEN, EUR/SNEC
DEFENSE FOR OSD DASD MACDOUGALL, SCOTT SCHLESS, AMER LATIF
DEFENSE FOR DSCA DIANE LAMB
USMISSION OSCE FOR KIT TRAUB

E.O. 12958: DECL: 10/07/2015
TAGS: PARM PGOV PREL MARR AM
SUBJECT: ARMENIA: MORE PROGRESS ON DEFENSE COOPERATION

REF: YEREVAN 1407

Classified By: DCM A.F.Godfrey for reasons 1.4(b,d).

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SUMMARY
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1. (C) During September 28-29 Bilateral Defense Consultations
(BDC) in Yerevan, the Armenian military's senior leadership
indicated an encouraging commitment to openness and
transparency, engaging in straightforward discussions
centered on Armenia's current threat environment. According
to Minister of Defense Serzh Sargsyan, the defense assessment
draft -- a major subject of this year's BDC -- accurately
describes Armenia's military structure, capabilities and
needs, but recommendations for defense spending cuts and
force reduction ignore regional threats and political
reality. The U.S. defense assessment team -- led by OSD's
Principal Director for Eurasia Scott Schless -- will use
formal GOAM comments on the recommendations (due November 7)
to complete an implementation plan by mid-November. In
separate BDC discussions, the Armenian delegation agreed to
USG proposals on outstanding bilateral military support
issues (para 8). Schless thanked Armenia for its commitment
to remain with the international coalition in Iraq, and
Minister of Defense Serzh Sargsyan said Armenia would stay
engaged with the coalition. End Summary.

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CONSULTATIONS LAY FIRM FOUNDATION FOR FURTHER PROGRESS
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2. (C) The U.S. defense assessment team's draft -- a major
subject of this year's Bilateral Defense Consultations (BDC)
-- "does a good job" describing Armenia's military structure,
capabilities and needs, according to Minister of Defense
Serzh Sargsyan. The Armenian side took pains to show it was
taking the defense assessment seriously; the Minister, Chief
of General Staff and all Deputy Defense Ministers were
present and engaged during the briefing. Deputy Minister of
Defense and Head of the Armenian delegation
General-Lieutenant Artur Aghabekyan, said the GOAM needed
until November 7 to review the recommendations (para 8) and
prepare official GOAM comments. The U.S. defense assessment
team plans to use the GOAM's comments to complete the final
chapter of the assessment, the
implementation plan.

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DEFENSE SPENDING CUTS, TROOP REDUCTION PROBLEMATIC
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3. (C) During the BDC, the U.S. defense assessment team
recommended broad changes for the Armenian armed forces in
defense spending, troop levels, force structure, policy and
planning, command and control, training and education,
modernization, procurement, and logistics systems (para 9).
Aghabekyan said that while many of these recommendations
"could be embarked upon immediately," recommendations that
would alter Armenian military
spending, force strength, and command and control are
untenable while the conflict over Nagorno-Karabakh remains
unresolved. "We are watching the reports," Aghabekyan said
at one point. "Azerbaijan claims they are spending more
money on defense than we spend on our entire national budget.
How can we reduce our spending? How can we reduce
the size of our forces?"

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DEFENSE MINISTER SAYS ARMENIA TO REMAIN ENGAGED
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4. (C) In a private conversation with Minister of Defense
Serzh Sargsyan, Scott Schless, OSD's Principal Director for
Eurasia -- who led the U.S. delegation -- thanked Armenia
for its commitment to remain with the international coalition
in Iraq. Sargsyan said Armenia would remain engaged with the
coalition. Schless reiterated USG offers to assist Armenia
in implementing its defense reforms, including developing a
national security strategy and a non-commissioned officer
(NCO) corps.

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DEFENSE MINISTER ON THE RECORD FOR DEFENSE REFORM
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5. (C) Addressing attendees at the NATO Parliamentary
Assembly Rose-Roth Seminar in Yerevan on October 7,
Sargysan's speech, titled "Defense Reform in the South
Caucasus" included portions taken directly from the defense
assessment team's recommendations. Sargsyan told
participants that Armenia was committed to developing a
national security strategy document by 2007, which the GOAM
plans to "widely disseminate for public and parliamentary
debate and support." Sargsyan also said Armenia was
committed to increasing civilian control of the military and
meeting NATO standards for interoperability in "expanded
peacekeeping missions." Comment: Sargsyan's public
comments, echoed his private conversations with Schless, and
put the MOD on public record as committed to implementing
some of the BDC's most important conclusions. End Comment.

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FOREIGN MILITARY FINANCING STILL A POINT OF CONTENTION
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6. (C) Aghabekyan repeated GOAM hopes (reftel) that the
defense assessment will provide a clear path to bring
Armenian military structures in-line with NATO standards and
will lead to avenues for expanding Armenia's peacekeeping
force. Aghabekyan acknowledged that the USG has committed
more than USD 19 million in Foreign Military Financing (FMF)
since FY2002 to assist the GOAM with these goals, but added
that FMF restrictions impeded the Armenian
military from modernizing its army's communication system.
DSCA and ODC officers who participated in the BDC explained
that FMF must go toward purchases that facilitate
interoperability in deployment and joint exercises, and
suggested Aghabekyan use GOAM funds to purchase communication
equipment. (Comment: The Armenian Ministry of Defense has
been reluctant in the past to commit significant national
funds in this area. We believe that
developing the Armenian Peacekeeping Unit's deployable
medical capability would fit a niche in the Global War on
Terrorism, and would be a much wiser use of FMF. End
Comment.)

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COMMENT: STRAIGHTFORWARD, OPEN DISCUSSION ENCOURAGING
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7. (C) During the September 28-29 BDC, the Armenian
military's senior leadership indicated an encouraging
commitment to openness and transparency, engaging in
straightforward discussions which centered mainly on
Armenia's defense assessment and US-Armenian military
cooperation. According to Aghabekyan, the GOAM is not in a
position to implement defense assessment recommendations that
would significantly alter Armenia's military system while the
conflict over Nagorno-Karabakh remains unresolved. Schless
emphasized the importance of beginning the reform
recommendations and not waiting until the conflict is
resolved. We believe that military leaders are poised to
make a good-faith effort to implement less controversial
recommendations particularly involving policy planning,
training, and education. General-Lieutenant Aghabekyan was
particularly interested in learning about how DOD hires and
trains its civilian employees. Schless reviewed the
different avenues of employment for civil servants, including
internships, and explained the different categories of
civilian personnel (policy, budget, procurement specialists)
who work in DOD. Though the GOAM's true commitment to the
defense assessment may only become apparent after the USG
hands over the finalized defense assessment document in
mid-November, continued engagement from the highest levels of
the Armenian military demonstrates a commitment well beyond
participation levels of previous years.

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SUMMARY OF KEY DEFENSE ASSESSMENT RECOMMENDATIONS
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8. (SBU) Summary of key recommendations from the Defense
Assessment:

--Armenia should embark immediately on a deliberate program
to develop a cadre of civilian defense specialists who can
assume policy positions in the Ministry of Defense and other
defense institutions.

--Draft, staff among the ministries, and publish a National
Security Strategy and a National Military Strategy in 2006.
--Establish and institutionalize a planning, programming and
budget system, similar to systems used by NATO and its
members.

--All Armenian military units should be subordinated to the
Chief of the General Staff; no military units, including
combat support and combat service support units, should be
under the direct command and control of the Minister of
Defense or his staff.

--Reorganizing the Ministry of Defense and the General Staff
to establish an efficient organization that mirrors those
institutions found in Euro-Atlantic defense establishments
should be a near-term objective for Armenia.

--Within the Ministry of Defense, the Chief of the General
Staff (as the senior operational commander and the senior
military officer in the Armenian armed forces) should not be
the First Deputy Minister of Defense.

--The Chief of the General Staff should be subordinated to
the Minister of Defense in times of peace, crisis, or war.

--Restructure the Armenian armed forces by 2015 to include
approximately 20,500 active and reserve military personnel
and 500 civilian personnel.

--Organize land forces into three main elements: 1) One
peacekeeping force that includes by the mid-term two light
infantry battalions (peacekeeping) - with the possibility to
add a third peacekeeping battalion in the future; 2) Two
infantry brigade combat teams of two motorized light infantry
battalions, one mechanized infantry battalion, combat
support, and combat service support units; and 3) one reserve
motorized infantry brigade combat team.

--Organize the Aviation and Air Defense Forces into three
main elements: 1) one rotary-wing aviation wing; 2) one
fixed-wing aviation wing; and 3) one integrated air
surveillance/air defense brigade.

--Establish a reserve system based on units able to mobilize
rapidly.

--Training is an area that should receive considerable
emphasis within the Armenian armed forces starting in the
immediate near-term.

--Develop a professional Non-Commissioned Officer corps (NCO)
and train NCOs as junior leaders based on Euro-Atlantic
models and doctrine.

--Consolidate basic training and sequential education for
Armenian armed forces officers and NCOs.

--Design, develop, and implement a comprehensive program to
improve English language ability in its officer corps.

--Consolidate all existing modernization and procurement
programs into a prioritized, procurement and modernization
plan.

--Improving operational readiness does not require the
Ministry of Defense to procure increased numbers of tanks,
ACVs, and aircraft to meet Conventional Forces in Europe
Treaty allocations.

--Implement centralized logistics planning and decentralized
logistics execution.

--Designate the General Staff the principal logistics
directorate for the Armenian armed forces.

--Continue consolidation of Ministry of Defense facilities.

--Prioritize infrastructure projects that will improve
readiness and quality of life.

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BILATERAL DEFENSE CONSULTATIONS SUMMARY OF CONCLUSIONS
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9. (SBU) USG and Armenian delegations to the September 28-29
Bilateral Defense Consultations (BDC) agreed on the following
conclusions:
Defense Assessment:
--The Ministry of Defense agrees to provide comments on the
defense assessment by November 7, 2005.

--The final defense assessment will be used to develop
Armenia's Individual Partnership Action Plan (IPAP).

--The United States and Armenia agree to review progress on
defense assessment implementation annually at the BDC.

National Security Strategy/Individual Partnership Action Plan
(IPAP):

--The United States will provide assistance to the Government
of Armenia in the development of the Armenian National
Security Strategy.

--The United States will assist Armenia in the implementation
of the Individual Partnership Action Plan.

--The United States and Armenia will work to ensure bilateral
and multi-lateral programs are not redundant.

--Armenia will participate in the next South Caucasus
Clearinghouse in November 2005, in Riga, Latvia.

Peacekeeping:

--The United States will utilize State Partnership Program
(SPP),Joint Contact Team Program (JCTP),International
Military Education and Training (IMET),and Foreign Military
Financing (FMF) to support development of Armenian
peacekeeping capabilities.

--Armenian lessons learned from Iraq will be shared with
Allied Command Transformation.

--The United States will send a survey team to Armenia in
order to determine requirements for peacekeeping battalion.

Non-Commissioned Officer Corps Development:

--The Kansas National Guard will provide information on
Non-Commissioned Officer (NCO) Corps development.

--Joint Contact Team Program events to support
familiarization with USNCO training and education facilities.

--Armenia will identify officer and enlisted candidates for
US events.

Disaster Response:

--EUCOM will support Armenian disaster response through
seminars and exercises.

--Armenia will host RESCUER exercise in 2006.

--The Kansas National Guard will continue its efforts to
enhance Armenia's interagency coordination in disaster
response.

Foreign Military Financing/International Military Education
and Training:

--US will continue to support enhancement of interoperability
with NATO forces and peacekeeping capability through Foreign
Military Financing.

--Armenia will use in-country English language training
program to prepare International Military Education and
Training (IMET) candidates.

--In accordance with defense assessment recommendation, use
E-IMET for training of Ministry of Defense civilians.

--ODC and Armenian Ministry of Defense will fully utilize
IMET funds for FY06.

State Partnership Program:

--The Kansas National Guard will conduct a civic visit in
spring 2006.

--Kansas will host the Armenian Minister of Defense in the
last week of October 2005.
--Armenia will identify participants for all State Partner
events.

--The United States and Armenia will develop an annual
cooperation plan for the State Partnership Program.

Deployable Medical Capability:

- The United States will continue to follow-up on Armenia's
Letter of Request submitted for Expeditionary Medical Support
System (EMEDS).

- Kansas National Guard will provide training/assistance on
deployment maintenance, and operation of medical response
capability.

- Armenia will identify personnel to train and operate this
deployable capability.


10. (U) Office of Secretary of Defense (OSD) Principal
Director for Eurasia Scott Schless has cleared on this
message.
EVANS