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.

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MUTUAL CONCERNS WITH DEFENSE INDUSTRY RELATIONSHIP
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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.

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MND MUST RESOLVE GE ENGINE SPARE PARTS ISSUE
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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.

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NEED FOR MORE CONTACT AT ALL LEVELS
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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.

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REGIONAL ISSUES OF CONCERN
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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.

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USAFE COMMANDER VISIT FRUITFUL
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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