DEFENSE PROCUREMENT ISSUES DOMINATE AMBASSADOR'S

C O N F I D E N T I A L ANKARA 000623 SIPDIS SIPDIS DEPARTMENT FOR EUR/SE, PM/RSAT AND PM/DTTC E.O. 12958: DECL: 02/06/2016 TAGS: MARR MOPS MASS PREL PGOV TU RU IR SUBJECT: DEFENSE PROCUREMENT ISSUES DOMINATE AMBASSADOR'S CALL ON TURKISH AIR FORCE COMMANDER COMERT REF: ANKARA 7605 Classified By: Ambassador Ross Wilson, reasons 1.4 (b) and (d). ¶1. (C) Summary: Turkish Air Forces (TUAF) Commander Comert, launched his initial meeting Feb. 1 with the Ambassador by laying out a series of defense equipment issues currently frustrating TUAF training and programs. Ambassador countered with USG and US industry concerns that strict Terms and Conditions (T&Cs) imposed in Turkey's new standard contract threaten to keep US industry out of Turkish tenders. Comert welcomed USAFE Commander Gen Hobbins' visit (reftel) and the subsequent resolution of Turkey's issues with US flights near the Iraqi border with Turkey. He acknowledged that TUAF is concerned about Iran's nuclear weapons program and is trying to convince the government on the need for air defense and radar systems. Comert also commented on the need for balance between US and Russian influence over the Black Sea region. End Summary. -------------- -------------- MUTUAL CONCERNS WITH DEFENSE INDUSTRY RELATIONSHIP -------------- -------------- ¶2. (C) Comert laid out a number of defense procurement and third party transfer issues that he views as inhibiting the Turkish Air Force's ability to train and equip itself, as follows: - HAWK System: According to Comert, Turkey, which was approved to purchase the HAWK missile system and has historically trained with Israeli HAWKS, was recently told by Israel that the USG was denying Turkey permission to train against them. (Note: Israel lacks third-party transfer approval for the Turks to train against the system.) - Patriot III: Comert said TUAF had requested information on US air defense systems, including the Patriot III and Complimentary Low Altitude Weapon System (CLAWS),as input for a Turkish government decision on an upcoming tender. (Note: Based the Ambassador's subsequent meeting with Raytheon President ADM (Ret) Rey, we understand TUAF is concerned about the Patriot's range as compared to Russia's S-300.) ODC Chief Major General Sutton, who accompanied the Ambassador, confirmed that ODC had received a request for information (RFI) from TUAF on US air defense systems. - Excess F-16s: Comert reiterated Turkey's request for excess US F-16s to fill an anticipated 2008-2015 gap during the upgrade of Turkey's F-16 fleet. Ambassador underscored the USG interest in Turkey's request, and noted that USAFE Commander Gen Hobbins had taken back Turkey's request for consideration (reftel). However, he added, any decision to release F-16s is unlikely to come until after the Quadrennial Defense Review process is complete, and might not happen until Fall 2006. (Note: The Turkish General Staff (TGS) formally requested information from the USG about possible excess F-16s several months ago. The US Secretary of the Air Force formally responded to TGS by letter stating that no excess F-16s were available at this time, but suggested a possible Foreign Military Sales (FMS) alternative.) - Third Party Transfers (TPT): Comert complained that Turkey is having difficulty buying certain weapons systems. He referred to a recent Joint Strike Fighter (JSF) briefing to Turkey in which TUAF learned of source code restrictions which may impede release of some weapons and logistics systems to Turkey. He opined that it is difficult to make a decision to commit to the JSF when there are other options. He added that Turkey wants to be able to fight together with Allied countries, specifically the US and EU member states, and therefore wants the same capabilities and systems that the US and others have. TUAF Operations Chief Major General Unal, who participated in the meeting, said Turkey's primary goal is to achieve the US standard for defense technology. ¶3. (SBU) Ambassador emphasized the high value the US places on the bilateral relationship and the USG desire to build on the progress made during 2005 to get back to the historically good military ties that our two countries enjoyed. That said, the US also has concerns about the defense industry relationship. While welcoming Comert's perspective, Ambassador said the USG is concerned that US industry will be shut out of the Turkish market because of the new standard T&Cs. Some US firms are saying they cannot or will not bid on Turkish tenders. The USG looks to Turkey to ensure US firms can bid in a fair competition. Unal acknowledged that the Undersecretary of Defense Industries (SSM) T&Cs are a problem but retorted that the US does not allow things that some other countries will, e.g. Israel. -------------- MND MUST RESOLVE GE ENGINE SPARE PARTS ISSUE -------------- ¶4. (SBU) Ambassador made particular note of the problem thwarting TUAF's desire to purchase GE engine spare parts under an existing Basic Order Agreement (BOA). (Note: The Ministry of National Defense is attempting to get GE to sign a new BOA that contains the strict T&Cs that kept Boeing from bidding on the attack helicopter tender and may prevent Sikorsky and Raytheon from bidding on other tenders.) The Ambassador urged that this issue be resolved in a way that is consistent with the current BOA to allow TUAF to keep its planes flying. Comert responded that the problem stems from a new Turkish law conforming defense procurement liability limitations with EU standards. In Comert's opinion, the MND needed to solve the problem by changing the law. However, he added, the US also needs to work on its Third Party Transfer (TPT) restrictions; change some laws. Using the mission computer as an example, Comert said that "everyone insists on putting in their own." ¶5. (SBU) Recognizing that every country has legal limitations, Ambassador said that when US defense firms see conditions in Turkey that are not standard or even found in other countries, there is a problem. Without US participation in Turkish tenders, Turkey not only doesn't get the best competition, it gives companies from other countries a free ride. He urged Turkey to identify more workable policies within its legal framework. Ambassador undertook to provide a clear statement of bottom line US defense industry concerns. -------------- NEED FOR MORE CONTACT AT ALL LEVELS -------------- ¶6. (SBU) Comert opined that "politics was affecting some issues" between the US and Turkey. In his view it was easy for Turky and the US to arrange high-level visits an resolve other issues before the second Iraq war. Since the start of the war, however, he thinks there is a lack of confidence between the two countries. Issues are no longer resolved with high-level visits. Low-level contacts do have an impact in his view, as does joint training. Comert stressed the importance of high-level military and civilian government contacts, including visits by US congressional representatives as well as regular contact at the lower levels. -------------- REGIONAL ISSUES OF CONCERN -------------- ¶7. (C) Black Sea: In response to a question by Comert about how the US views the Black Sea, Ambassador responded that it should be viewed from both economic and security perspectives. On the security side, many in the US are concerned about perceived vulnerabilities in the Black Sea. The US recognizes and appreciates Turkey's leadership in this region but wants to work with all of our littoral Allies to shore up security. Comert said that, in his view, it is important to have a balance between US and Russian influence. He added that Bulgaria and Romania, which will soon be EU members and are already in NATO, are more flexible. The sensitive country economically is Ukraine, which is pressured by Russia. Comert noted in particular the Blue Stream natural gas agreement with Russia which is "not working well." ¶8. (C) Iran's Nuclear Aspirations: Reflecting on IAEA and UN diploamcy on Iran, Comert said that if the US attacks Iran, the economies of the Middle East and Turkey will be hurt. Ambassador responded that US efforts are diplomatic, not military, but Comert suggested that diplomacy can only work until Iran has a nuclear weapons capability. After that, "it will be too late" because they can employ it against Israel. Turkey, he said, is in a very difficult position, especially with the current government. The military doesn't like Iran having a nuclear capability and is trying to explain to the government why Turkey needs an air defense system and a radar system. -------------- USAFE COMMANDER VISIT FRUITFUL -------------- ¶9. (C) Comert welcomed USAFE Commander General Hobbins' December visit and the immediate follow-up on issues of TUAF interest. He appreciated the visit of the USAFE team to provide "lessons learned" from the Lithuanian air policing operation and said that the issue of US flights near the Iraqi border with Turkey was "already solved" through the information chain to CAOC-6 at Eskisehir. Unal asked that the information be provided to Eskisehir in ATO format. WILSON