2005/2006 REPORT TO CONGRESS ON ALLIED

C O N F I D E N T I A L SECTION 01 OF 10 ABU DHABI 000288

SIPDIS

SIPDIS

STATE FOR PM/SNA AND NEA/ARPI

E.O. 12958: DECL: 01/28/2016
TAGS: PREL MCAP MARR MASS AE
SUBJECT: 2005/2006 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE: UAE SUBMISSION

REF: 05 STATE 223383

ABU DHABI 00000288 001.2 OF 010


Classified By: AMBASSADOR MICHELE J. SISON, REASONS 1.4 (B) AND (D).

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SUMMARY/INTRODUCTION
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1. (U) The UAE in 2004 and 2005 continued its outstanding
record as a valuable strategic partner in the Global War on
Terrorism and in supporting key U.S. regional strategic
policy goals. Among the highlights of the UAE's
contributions to the common defense are:

-- (C) Providing basing for USAF aerial refueling,
intra-theater lift, and Intelligence, Surveillance, and
Reconnaissance assets in support of Operation Enduring
Freedom (OEF),Operation Iraqi Freedom (OIF),and Operation
Horn of Africa (HOA);

-- (U) Providing other logistical and non-combat support for
OEF, OIF, and HOA;

-- (C) Hosting U.S. Navy logistical operation in support of
the Fifth Fleet;

-- (C) Hosting the U.S. sea services at Jebel Ali Port
(Dubai) and at Fujairah, with Jebel Ali being the premier
naval refurbishment port in the region, perhaps the world.
Not only are expert repairs and services readily available to
the fleet, but Dubai offers Marines and Sailors unique
liberty opportunities rarely found in other locations around
the world;

-- (C) Providing facilities and forces for direct action
outside the UAE in support of OEF;

-- (U) Direct sharing in costs of U.S. deployments to the
amount estimated at approximately $12.6 million;

-- (U) Indirect sharing of costs estimated at approximately
$532.2 million;

-- (U) Maintaining an important defense sales relationship
with the USG;

-- (U) Donating $100 million in cash to the U.S. for
Hurricane Katrina relief and the same amount for tsunami
relief operations;

-- (U) Providing significant in-kind humanitarian assistance
to the victims of the Pakistan earthquake as well as $100
million in cash assistance to the Pakistani government, and
pledging another $100 million at the Islamabad donors
conference. (Note: $5.2 million of the humanitarian
assistance was designated for repairs to the Pakistan Army's
MI-17 helicopters. End note.) In addition, setting up a
field hospital in Pakistan and providing an air bridge to
provide further supplies; providing the use of the Fujairah
port facility for the USS Pearl Harbor to load over 350
pallets worth of relief supplies collected by the Pakistan
Embassy and the UAE Red Crescent Authority (RCA) worth more
than $350,000;

-- (U) In August 2005, committing $100 million to build
Sheikh Khalifa City, a new Palestinian housing complex in the
Gaza Strip;

-- (SBU) Hosting numerous high-level military and civilian
delegations, including, Chairman of the Joint Chiefs of
Staff, General Richard Myers; Chairman of the Joint Chiefs of
Staff, General Peter Pace; USCENTCOM Commander General John
Abizaid; Air Force Secretary James Roche; Chief of Staff of
the Air Force General John Jumper; Chief of Staff of the Air

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Force, General T. Michael Moseley; USNAVCENT Commander, Vice
Admiral Patrick Walsh; ACC Commander, General Ronald Keys;
Deputy Under Secretary of the Air Force, International
Affairs, Bruce Lemkin; and Assistant Secretary of Defense for
International Security Affairs, Peter Rodman (head of the
first Joint Military Commission in January 2005). Also, the
Senior Advisor to the Secretary of State and Coordinator for
Iraq, Ambassador James Jeffrey; U.S. Ambassador to Iraq,
Zalmay Khalilzad; U.S. Secretary of Energy, Samuel Bodman;
former Under Secretary for Arms Control and International
Security John Bolton; Under Secretary for Arms Control and
International Security, Robert Joseph; former Coordinator for
Counter Terrorism, Cofer Black; former Assistant Secretary
for Political-Military Affairs, Lincoln Bloomfield; former
Assistant Secretary for Near Eastern Affairs William Burns;
Homeland Security and Counter Terrorism Advisor, Fran
Townsend.

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GENERAL ASSESSMENT: POLITICAL DEVELOPMENTS
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2. (U) Domestic political circumstances in the UAE have seen
significant changes over the past two years. The UAEG's
loose federal structure, under the leadership of President
Khalifa bin Zayed al-Nahyan, remains stable and there are no
internal or external opposition groups. President Khalifa
succeeded his father, the late Sheikh Zayed bin Sultan
al-Nahyan, in November 2004. Mohammed bin Zayed succeeded
Khalifa as Crown Prince of Abu Dhabi Emirate, while Lt.
General Hamad Mohamed Thani al-Rumaithy succeeded Mohammed
bin Zayed as Armed Forces Chief of Staff. Hamdan bin Zayed
al-Nahyan remains the de facto Foreign Minister and Deputy
Prime Minister. The federal Cabinet of Ministers was
overhauled in November 2004, including mergers of some
ministries and the first-ever appointment of a woman (as
Minister of Economy and Planning). In November 2005,
President Khalifa announced that half the members of the
Federal National Council (FNC) would be elected by persons
appointed by the rulers. The President further announced
that this was a first step toward eventual direct elections
of a legislative body, and he also promised amendments to the
constitution that would give the FNC greater powers.


3. (U) In regional and international affairs, the UAE
continued to demonstrate its unequivocal support for the
Global War on Terrorism. The UAE played a critical role in
assisting the continuing investigation into the 9/11 attacks
and provided financial documents pertaining to the movement
of terrorist funds. The UAE Government implemented a law to
criminalize money laundering, to include terrorist financing,
in January 2002. In June 2004, the UAE passed a law to
combat terrorist crimes, strengthening its legal ability to
combat the financing of terrorism. Since 2000, the UAE
Central Bank has frozen a total of $1,348,381 in 17 accounts
in response to UN 1267 sanctions. The UAE implemented the
anti-terrorism financing regulations passed by the UN
Security Council. In December 2005, the Supreme Council, the
top policy making body in the country, decided to place all
security agencies under a newly established National Security
Council. Cooperation across the board -- from the financial
realm through to military, security and intelligence -- has
been strong and sustained. The UAE provided logistical
support for non-combat operations related to OEF and OIF.
The UAE also undertook several security measures along its
land border and at sea to deter terrorists from reaching UAE
soil.


4. (U) The UAE remains committed to cooperation with other
GCC States. The UAE commitment to Peninsula Shield had been
one full mechanized brigade, until the GCC took the decision
in late 2005 to dismantle the force. The UAE has continued
to back GCC policies on Iran and Iraq. The UAE's economic
and trade relations with Iran continued to grow, but there

ABU DHABI 00000288 003.2 OF 010


was no change in political relations, which remain strained.
The UAE's attention remains focused on the contested Abu Musa
and Tunb Islands, occupied by Iran but claimed by both Iran
and the UAE. The UAE continues to take the lead within the
GCC in expressing concern about Iran's support for terrorism,
its military build-up, pursuit of weapons of mass
destruction, and interference in the internal affairs of
other countries in the region. The UAE publicly condemned
terrorist attacks in Iraq, Saudi Arabia, Jordan, and the
United Kingdom while offering a strong public show of support
for Iraq's interim government and political process.


5. (C) The UAE permitted the basing of USAF tankers in
support of OEF, OIF, and HOA.

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GENERAL ASSESSMENT: ECONOMIC DEVELOPMENTS
--------------


6. (U) The UAE is a confederation of seven emirates.
Individual emirates retain considerable control over legal
and economic matters, most significantly over ownership and
disposition of oil and other natural resources, and resultant
revenues. Oil production and revenues from
the sale of oil constitute the largest single component of
GDP, accounting for 39.7 percent of GDP and equaling roughly
40 percent of exports and 90 percent of government revenue.
Rising or declining oil prices have a direct effect on GDP
statistics.


7. (U) The great majority of the UAE's oil export income
comes from Abu Dhabi emirate, though Dubai and Sharjah also
produce and export a modest amount of oil and gas products.
The scarcity of oil and gas reserves in the UAE's northern
emirates has led to continued attempts at economic
diversification. The non-oil sector of the UAE's economy
actually accounts for more than twice the oil sector's direct
contribution to GDP and this has helped insulate the country
from the full effect of fluctuating oil prices.


8. (U) Traditionally, oil revenues, along with careful
management of investments, have helped the UAE avoid some of
the budgetary problems encountered by other GCC states. The
UAE has substantial foreign exchange reserves and the
government has no foreign debt. There are no figures
available for the amount of government assets held overseas,
but many experts believe the Government of Abu Dhabi
maintains $200 billion to $250 billion under the
administration of the Abu Dhabi Investment Authority.


9. (U) The Emirate of Abu Dhabi, which finances the UAE's
military expenditures, continues to build significant
infrastructure, particularly in the power and water sector,
where privatization and outsourcing efforts continue.
Several large-scale projects, including the UAE Offsets
Group's "Dolphin" project (to pipe Qatari Gas to Abu Dhabi
and Dubai) and massive greenfield utility developments in
Fujeirah and Shuweihat in Abu Dhabi Emirate, are moving to
execution.

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AID, HUMANITARIAN ASSISTANCE
--------------


10. (U) The UAE continued its generous aid program in 2004
and 2005. In late 2004/early 2005, the UAE responded by
providing emergency aid to the victims of the Asian tsunami.
The UAE Red Crescent Authority (RCA) provided $12 million in
reconstruction assistance. The UAE Government gave donations
of $100 million and other government and semi-governmental
bodies also provided assistance. As an example of
reconstruction assistance, the RCA is currently building 400
housing units in Sri Lanka in coordination with the UN
Development Program for victims of the tsunami.

ABU DHABI 00000288 004.2 OF 010




11. (U) In response to the Pakistan earthquake, the UAEG
provided a $100 million cash donation to the government of
Pakistan and pledged another $100 million at the Islamabad
donors conference in November 2005. UAE organizations,
including the armed forces, police, and the RCA, also
provided significant in-kind assistance, including setting up
field hospitals, sending search-and-rescue teams to both
Pakistan and India, and treating earthquake survivors in UAE
hospitals. The UAE military also provided an air bridge to
ferry supplies to the victims of the earthquake.


12. (U) The UAE responded quickly to Hurricane Katrina by
donating $100 million in cash to the U.S. Government to help
finance relief efforts.


13. (U) In 2004 and 2005, the UAE continued its support of
the Palestinian people. Although comprehensive figures for
the two years are not available, the UAE opened the $62
million Sheikh Zayed City in May 2005. It pledged $100
million in July 2005 to build Sheikh Khalifa City in the Gaza
Strip to house 30,000 to 40,000 people. The UAE is working
with the Palestinian Authority and UNRWA on this project.
The UAE also helped rebuild the Jenin refugee camp and funded
a new township in Rafah at a cost of $29 million.


14. (U) UAE reconstruction projects in Afghanistan in 2005
included starting construction on Sheikh Zayed Ciy in Kabul
in order to provide basic needs for thusands of displaced
Afghans, supervising the contruction of a new university in
the city of Khos, and other health and water supply projects.

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DIRECT COST SHARING
--------------


15. (U) All figures in this report are in U.S. dollars. All
UAE Dirham figures were cnverted at the rate of 3.66 Dirhams
per one U.S. dollar.

RENTS


16. (C) The UAEG neither leases nor rents any privately owned
land or facilities for use by U.S. forces.

LABOR


17. (C) The UAE hired laborers and funded construction work
at al-Dhafra Air Base to upgrade facilities for use by U.S.
forces. This included road-building, force protection
fences, gates, utilities upgrade, and project site
preparations. It is not possible to estimate the size of
this work force or its cost to the UAE.

KATUSA LABOR


18. (U) N/A

UTILITIES


19. (C) Electricity, water and sewer were provided at no cost
to the 380th Air Expeditionary Wing at al-Dhafra Air Base.


20. (U) The estimated figures are as follows:

For CY04: Electricity: $585,000; Water: $142,500
For CY05: Electricity: $602,550; Water: $146,775

FACILITIES


21. (U) In CY04, the UAE had costs associated with joint use
of facilities of Gulf Air Warfare Center, including office
space, ramp and hangar space, support shops, and ranges.
(Note: The UAE has estimated that the value of what they are

ABU DHABI 00000288 005.2 OF 010


providing is approximately $10,000 per pilot, per course.
The U.S. put three pilots in three classes in both 2004 and
2005, thus the UAE cost was estimated at $90,000 per year.
End note.) The UAE also offered free medical benefits to all
Air Warfare Center participants, although U.S. personnel did
not avail themselves of those services.

For CY04: $90,000
For CY05: $90,000


22. (C) In 2005, with land provided by UAE, the 380th Air
Expeditionary Wing executed a $47 million project
(U.S.-funded) to build a 168,000-square-meter tank ramp that
included 12 refueling hydrant pits. The ramp allows for a
2.7 million operational fuel storage capacity, significantly
enhancing wing mission capabilities.

FACILITIES IMPROVEMENT PROGRAM


23. (U) In CY05, UAE provided $500,000 in improvements to the
tanker truck off-load facility compound at al-Dhafra. The
improvements included new sunshades, concrete pad, asphalt
paving and a new office building for fuels workers. The UAE
also constructed an Air Defense Site boundary wall at a cost
of $1.9 million.

For CY05: $2,400,000

RELOCATION CONSTRUCTION


24. (C) In CY05, UAE undertook a project at al-Dhafra Air
Base to connect the temporary cantonment area to commercial
utilities (electricity, water, and sewage). The project is
scheduled for completion in March 2006. Upon completion, the
AEW 380th will relocate from expeditionary facilities to more
enduring modular buildings.

For CY05: $8.5 million

VICINITY IMPROVEMENTS


25. (U) N/A

MISCELLANEOUS


26. (U) N/A

TOTAL OF DIRECT COST SHARING


27. (U) For CY04: $ 817,000 (estimated)
For CY05: $11,739,325 (estimated)

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INDIRECT COST SHARING
--------------

RENTS


28. (C) Using a market value of land of 425 Dirhams/$116 per
square meter, the total value of land at al-Dhafra is:

Al-Dhafra Tent City: 364,282 sq meters $42,256,712
16-Bag Fuel Yard: 68,037 sq meters $7,892,292
Munitions Storage Area: 10,031 sq meters $1,163,596
Air Transport Ops Ctr: 15,449 sq meters $1,792,084
Tanker Town: 333 sq meters
$38,628
East Ramp: 163,471 sq meters $18,962,636
Tanker Ramp: 168,000 sq meters
$19,000,000
Air Defense Site: 1,030,046 sq meters $119,485,336

Total Basis for Rents for CY04: $191,591,284
Total Basis for Rents for CY05: $210,591,284 (tanker ramp was

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added in CY05)

FACILITIES


29. (C) The U.S. Navy has been provided a dedicated deepwater
(14 meter) berthing space in the Jebel Ali Port Complex for
the berthing of its aircraft carriers. Quay 9 (Piers 57-59)
dredging was completed in December 2005 and the USS Theodore
Roosevelt made the first port visit to the new site. The all
new Oasis rest and relaxation area has been relocated here
with significantly improved facilities compared to before.
The vendor area is paved with asphalt to reduce dust from
foot traffic. A new stage has been erected for performances
and the vendors are all set up. The Entry Control Point is
more easily controlled than before.


30. (U) As of December 2005, there have been U.S. Navy and
Military Sealift Command ships in UAE ports for 1,410 total
days during CY05. These figures are broken out below:

Jebel Ali: 848 ship days
128 different vessels

Fujairah: 514 ship days
51 different vessels

Other UAE ports: 48 ship days
12 different vessels


31. (U) During these visits there have been over 77,500
personnel enjoying liberty in Dubai. The UAE also provides
an excellent range of liberty programs to ship personnel,
many of whom visit Dubai as their first liberty port after
completing extended combat duty in Iraq and Afghanistan. into
and out of the region. The Port Liaison element has provided
transportation to 3,200 personnel arriving to meet their ship
or departing to proceed to their next duty station.


32. (C) The UAE has provided other invaluable support for OEF
and OIF, including the use of facilities in various
locations. For example, the U.S. Navy was allowed to use the
port of Fujairah, strategically situated on the Gulf of Oman,
to offload supplies for transport by land to Dubai, rather
than transiting the Straits of Hormuz. Additionally, 82 of
the U.S. Navy's inshore boat units personnel are stationed
here to provide ship escort to and from the pier facility
prior to and after refueling and re-supply operations have
been conducted.


33. (SBU) Estimated Value of UAE Forward Operation Bases:

For CY04: $20,114,751 (estimated)
For CY05: $20,114,751 (estimated)

TAX CONCESSIONS/CUSTOMS/TOLLS/DUTIES


34. (U) Fees and charges are for each of the reporting years
(numbers in brackets indicate fees levied):

- Landing and cargo fees levied: ($900,000)
- Port fees and cargo handling levied: ($1,500,000)
- Taxes and customs duties waived: $8,030,100
(Note: The number of cargos processed by the United States
Liaison Office has increased from 1,090 in 2004 to 2,161 in
2005, and is estimated to exceed 3,000 cargos in 2006. End
note.)
- Visa issuance charges levied: ($4,000)
- Overflight authorizations waived: $2,565,000

Total of waived taxes/customs duties, overflight
authorizations:
For CY04: $10,565,000
For CY05: $10,565,100


ABU DHABI 00000288 007.2 OF 010


MISCELLANEOUS


35. (C) During every U.S. Navy aircraft carrier port visit,
the Dubai police provide 24-hour police security presence at
the Navy berth.


36. (U) Following the terrorist attack on the USS Cole in
Yemen in October, 2000, the Dubai authorities increased
security for U.S. Navy ship visits, providing boat patrols,
EOD police dogs and UAE Naval and Coast Guard support, as
well as the use of port facilities to support U.S. security
detachment personnel observation posts and command center.
Security requirements were increased at both Jebel Ali and
Fujairah port and airport. Cost of security provided by UAE
at these facilities:

For CY04: $320,000 (estimated)
For CY05: $350,000 (estimated)


37. (U) Note that while costs cannot be assessed, the UAE
Port Authority provides emergency medical and fire fighting
services at Fujairah International Airport and Jebel Ali
Port. UAE Military Police are also provided at Fujairah
International Airport.


38. (C) The UAE Air Force provided considerable security to
the forces at the al-Dhafra Air Base through the
infrastructure of the base, security personnel and U.S.
manufactured HAWK missile batteries in the area.


39. (U) UAE Contributions to the Air Warfare Center (AWC): A
joint CENTAF (USAF) and UAE Air Force and Air Defense
Initiative to initially provide out of CONUS training for
fighter units in the Gulf. UAE has contributed the main
schoolhouse ($8 million) to house the facility at al-Dhafra
Air Base and is now providing additional funds ($26 million)
to upgrade other facilities and fill them with necessary
furnishings and equipment.

Value of AWC Facilities provided:
For CY04: $34 million
For CY05: $34 million

TOTAL OF INDIRECT COST SHARING (WHERE CAPTURED)


40. (U) For CY04: $ 256,621,135 (estimated)
For CY05: $ 275,651,135 (estimated)

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CONTINGENCY OPERATIONS, HUMANITARIAN RELIEF OPERATIONS,
COUNTERPROLIFERATION
--------------

CONTINGENCY OPERATIONS


41. (C) The UAE directly supported OEF with a deployment,
begun in August 2003, of an approximately 200-man Special
Operations Task Force currently operating out of Bagram Air
Base, Afghanistan.

MILITARY ASSISTANCE


42. (U) N/A

HUMANITARIAN RELIEF OPERATIONS


43. (U) There is very little information publicly available
on UAE spending, and only very general categories of spending
are published by the UAE Central Bank. International
humanitarian assistance is generally provided through one of
three quasi-governmental charitable organizations: the Red
Crescent Authority (RCA),the Zayed Charitable Foundation, or
the Mohammed bin Rashid Charitable Trust. In 2004, RCA
provided humanitarian assistance of approximately $57 million

ABU DHABI 00000288 008.2 OF 010


to 300 countries. In the first half of 2005, the RCA
provided about $29 million in aid worldwide. Although total
figures for the other two organizations are not available,
the Zayed Charitable Foundation in May 2005 signed an
agreement with the UNDP to provide $1.5 million to fund the
drilling of water wells in Niger. This was part of a $15
million project to drill water wells in 10 African countries.


44. (U) One of the primary vehicles for administering the
UAE's foreign aid program is the Abu Dhabi Fund for
Development (ADFD),which was established in 1971 as an
autonomous national development institution of the Government
of Abu Dhabi. The ADFD had funded nearly 250 projects in a
total of 56 countries since its inception. The ADFD also
administers development assistance extended directly by the
government of Abu Dhabi. The bulk of the assistance has been
given to support the development of infrastructure, in the
form of concessionary loans, grants, and direct investments.
In 2005, the ADFD made two new loans: one to Jordan for
approximately $8 million to build a pediatric hospital in
Amman, and one to Lebanon for approximately $30 million to
finance three water and drainage projects. Overall, the ADFD
has provided about $20 billion in development assistance
since 1971.

CAPACITY-BUILDING


45. (U) N/A

COUNTERPROLIFERATION CONTRIBUTIONS


46. (U) During the first ever U.S./UAE Joint Military
Commission in Abu Dhabi in January 2005, Assistant Secretary
of Defense Rodman urged the UAEG to endorse the principles of
President Bush,s Proliferation Security Initiative and to
consider participation in future PSI activities. He said the
UAE is a natural participant given its geography and
strategic security concerns. Recalling that the U.S. already
has suggested to the UAE that the two countries conclude a
PSI Shipboarding Agreement, Rodman said that such an
agreement would be a way to cooperate on WMD proliferation.
The UAE is studying whether to endorse PSI.


47. (U) In March 2005, the Container Security Initiative
(CSI),became operational at Port Rashid and Jebel Ali in the
Emirate of Dubai. CSI is aimed at screening shipping
containers that pass through Dubai ports that are destined
for the United States that pose a security threat. These
examinations are conducted jointly with Dubai Customs
officers. In addition, Dubai Customs has requested that each
and every container that originates in Iran be designated for
inspection by the CSI team.


48. (U) The U.S. and UAE agreed in October 2005 to establish
a Counterproliferation Task Force that will permit a
deepening and broadening of cooperative efforts o fight
proliferation. The Task Force will meetannually, beginning
in February 2006.

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GROSS DOMESTIC PRODUCT
--------------


49. (U) UAE nominal GDP in 2004 wa $104 billion and
preliminary reports for 2005 project a GDP of $127 billion.
The UAE Ministry of Planning projects a growth rate of 7
percent in 2005. This reflects a robust growth in oil prices
and the non-oil sector.

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DEFENSE EXPENDITURES: 2004-2005
--------------


50. (U) There has been no information published on the CY05

ABU DHABI 00000288 009.2 OF 010


defense budget. However, UAEG defense expenditures for
salaries and fixed costs average $2 billion per year, and
procurement varies according to program requirements and oil
prices, according to informed sources.


51. (U) As part of the $8 billion F-16 deal, the UAE is
purchasing (via FMS) training, weapons and associated support
amounting to $1.5 billion. The first aircraft was delivered
to the U.S. training base in December 2004 and then to the
UAE base in May 2005. As of January 2006 they have taken
delivery of 50 of the 80 F-16 Block 60 aircraft;


52. (C) The UAE completed upgrading its French Mirage fighter
fleet and has purchased 32 additional 2000 Mirage-9 fighters.
Most of the 32 Mirage 2000-9's were delivered in CY03. The
contract for the new Mirages, unveiled in CY98, was $3.2
billion. The deal to upgrade the 30 Mirage 2000-5 aircraft
already in service is worth $6 billion.

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PROJECT OUTLAYS: 2005-2008
--------------


53. (U) The following are expected defense outlays for
2005-2008:

-- 8 Bell Agusta AB 139 helicopters, at an estimated cost of
$83 million;

-- Remanufacture of 30 Apache AH-64A helicopters to the
AH-64D Longbow model, at an estimated cost of $725 million;

-- 26 UH-60M Black Hawk helicopters for UAE Special
Operations Command, at a value to be determined;

-- 1000 Javelin anti-armor missiles, at an estimated cost of
$118 million;

-- ATACMS (1000 rounds) and HIMARS (20 launchers),at an
estimated cost of $850 million;

-- Negotiations are under way for the French to sell six
patrol boats worth $600 million;

-- 12 68-meter Baynunah Class Guided Missile Boats built in
the UAE from a French design, programmed for delivery
starting in 2007, and equipped with U.S. missile defense
systems at an estimated cost of over $200 million;

-- 6 CH-47A twin rotor heavy lift helicopters that could be
used in special operations roles were acquired from Libya.
The UAE Armed Forces is currently evaluating the upgrade of
these air frames to CH-47F, at an estimated cost of $180
million;

-- 1 130-meter ex-Kortenouaer Class Frigate currently under
negotiation with the Netherlands;

-- As a follow-on to the F-16 case, the UAE is considering
purchasing aerial refueling tankers, cargo aircraft, and
airborne command and control platforms;

-- The UAE already is an extensive user of U.S. military
training programs; most U.S. military training is paid via
FMS cases worth over $333 million.

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DEFENSE PERSONNEL
--------------


54. (U) 62,000 active duty (no projections available for next
five years); negligible numbers of committed reserves and
civilians.


ABU DHABI 00000288 010.2 OF 010


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POINT OF CONTACT
--------------


55. (U) Embassy Point of Contact is Joel Maybury, Political
Officer

Voice: 971/2/414-2490
Fax: 971/2/414-2639
E-mail: MayburyJF@state.gov
Class: MayburyJF2@state.sgov.gov
SISON