ROMANIA SEEKS RELEASE OF NATO INFRASTRUCTURE FUNDS

C O N F I D E N T I A L SECTION 01 OF 02 BUCHAREST 001181

SIPDIS

SIPDIS

STATE DEPT FOR EUR/NCE - BILL SILKWORTH

E.O. 12958: DECL: 07/24/2016
TAGS: PREL MARR PINS NATO RO
SUBJECT: ROMANIA SEEKS RELEASE OF NATO INFRASTRUCTURE FUNDS
FOR 3 AIRPORTS, NOT JUST ONE

Classified By: Amb. Nicholas Taubman for reasons 1.4 (B) & (D)


1. (C) Romanian MFA Director for NATO Affairs Mirela Maghiar
relayed a demarche to PolOff on July 20 regarding Romania's
request for U.S. support for NATO infrastructure funds to be
released. She said Romania's proposal includes three
locations -- Otopeni, Fetesti, and Mihail Kogalcieanu (MK)
airports, but that the U.S. has opposed the release of
prefinancing for two of those locations, preferring to direct
NATO funds to the MK airport alone. She said NATO approved
the 11 projects as eligible for funding under the NATO
infrastructure projects for new NATO members. She stressed
the strategic and operational importance of improving all
three airports and requested that the U.S. analyze the issue
and support unfreezing common funding for the other two
airports. Maghiar added that President Basescu will likely
raise this topic when he meets with President Bush on July

27.


2. (C) The text of the non-paper Maghiar delivered is below:

Begin Text:

NSIP Infrastructure Projects

- Romania - US agreement on US military facilities in Romania
is a major pillar of bilateral strategic
cooperation. NATO has included the Mihail Kogalcieanu Air
Base in the package of Romania capabilities that could be
funded through NATO common funds under the NATO Security
infrastructure Program (NSIP).

- This capability package also includes other projects of
high interest for Romania at the Fetesti and Otopeni military
airports:

- 7 projects to support deployment of NATO air
defense forces in Fetesti military airport;
- 3 projects to support strategic air lift in
Otopeni airport

- They have been selected by NATO,s military authorities as
projects of interest for the Alliance,s
missions and approved by the Allies as eligible for NSIP
funding. However, the United States has constantly frozen the
release of pre-financing funds for any other projects than
those dedicated to the MK airport. US has stated, in the NATO
Infrastructure Committee, its intention to refuse to
contribute to NATO common funding at Otopeni and Fetesti
related projects (from this Capability Package),based on the
fact that these projects do not correspond to the US national
interests.

- Romania attaches strong interest to the projects in Fetesti
and Otopeni airports, whose modernization will also be in the
US benefit. For NATO, it is a foregone conclusion. Our
arguments are multifold:

- Operational: the projects in Fetesti and Otopeni will
support the expeditionary niche capabilities Romania brings
into NATO. They will also create a functional and modern
platform for force projection, in support of both US and NATO
expeditionary forces.

- Strategic: these projects will provide alternative
facilities for US and NATO forces, complementary to MK, as
well as support for the future US facilities at MK.

- At both Otopeni and Fetesti airports, Romania has
invested in NATO compatible navigational aids (NAVAIDS).

- Nearby Otopeni airport, Romania has developed the
necessary infrastructure for the maintenance of C130 aircraft
(national and NATO). We consider that from both operational
and economic reasons, this infrastructure should not be
replicated at MK.

- At Fetesti airport, two analytical studies made by
NATO Air Defense Cell have established that this airport has
the optimum capability for air policing missions.

- Burden Sharing: these projects would be the first
significant infrastructure projects developed with NATO
common funding, since Romania joined NATO. So far, Romania
has contributed with 8,077,378 Euro to NSIP during 2004-2005
and got mere 506,969 Euro - worth of NSIP investments. If all
NSIP funding is channeled to MK, Romania loses the

BUCHAREST 00001181 002 OF 002


possibility of using 40 mil. Euro and will have to allot its
own resources to cover these shortfalls.

- Moreover, financing these projects would have a positive
impact on the Romanian public opinion. They would contribute
to strengthening public support for NATO, including for
Romania's contribution to NATO operations.

- In the spirit of Romania - US Strategic Partnership, so
much strengthened during the war on terrorism, we would
highly appreciate US support for unfreezing NSIP funds for
projects of interests to Romania at the Fetesti and Otopeni
airports. We strongly believe such military infrastructure
projects would benefit both Romania and the United States. We
kindly ask the United States to consider which projects could
be selected for advanced funding, so that at least part of
them be funded through NSIP.

- Given the presence of US facilities in Romania, bilateral
cooperation on developing Romania,s military infrastructure
should also become a major component of our strategic
partnership.

End Text
TAUBMAN