EGYPT POSSIBLE UNAUTHORIZED END-USE: METROLOGY

C O N F I D E N T I A L CAIRO 001678 SIPDIS E.O. 12958: DECL: 03/16/2016 TAGS: PREL MASS EG SUBJECT: EGYPT POSSIBLE UNAUTHORIZED END-USE: METROLOGY ENGINEERING CALIBRATION CENTER Classified by DCM Stuart Jones for reasons 1.4(b) and (d). ¶1. (SBU) This is an action request. Please see paragraph 7 below. ¶2. (C) Summary: The Office of Military Cooperation, Egypt (OMC-E) has discovered that the GOE is possibly engaging in an unauthorized end-use of FMF-purchased equipment at the Metrology Engineering Calibration Center (MECC). The MECC may be providing services to and receiving compensation from Egypt Air, a commercial profit-making enterprise. Post requests guidance from the Department regarding follow-up on the potential violation. End summary. ¶3. (C) OMC-E has learned that the MECC Laboratory at Cairo West Air Base may be providing calibration services to Egypt Air, and other industries, in violation of Section 505 of the Foreign Assistance Act (FAA) and Section Three of the Arms Export Control Act (AECA). Egypt Air is the state-owned national commercial carrier. Senior program visitors to the MECC Laboratory advised an OMC-E Security Assistance Officer that they saw a significant amount of Egypt Air test equipment in the MECC lab waiting for calibration services. An on-site contractor at MECC estimates that less than 10% of the lab's work is for Egypt Air and other commercial ventures, possibly including medical factories. The contractor said he believes the commercial entities compensate the Egyptian Air Force for the services the lab renders. He had no further information on the mechanics of compensation. The contractor also noted that during a recent visit by a senior Royal Saudi Air Force General Officer, lab officials discussed the possibility that the Saudi Air Force would use the facility. ¶4. (C) Background on the MECC: The MECC was designed to be the metrology engineering and primary standards calibration center to maintain and disseminate standard units of measurement to support aircraft maintenance, test, and support equipment. It recently received the highest level of accreditation for a laboratory relative to the measurement traceability chain -- one step below national level accreditation. Construction of the MECC began in 1995 under the Pacer Forge Program. FMF funds were used to build the physical structures, purchase equipment, train personnel, establish documentation and procedures, and ensure quality assurance accreditation. Both Air Force and Navy FMF dollars continue to fund the MECC. OMC-E estimates that $25 million in FMF dollars has been spent on the MECC and is not aware of any MoD national fund contributions to the MECC. MECC training is provided in the U.S. and in Egypt, depending on the requirements or level of standards needed. ¶5. (C) MECC's purpose: The MECC was established for two purposes: 1) to provide a metrology calibration infrastructure that would ultimately lead to self sufficiency in the calibration field and 2) to provide calibration standards support to the E-2C Hawkeye airborne early warning aircraft, which requires sophisticated support of its airborne radar equipment. Egypt currently has five E-2C aircraft. The MECC also supports other EAF aircraft programs, including the for the F-16, C-130, AH-64, UH-60, SH-2G, and CH-47. ¶6. (C) Response from MOD: Acting OMC Chief asked MoD Advisor MG Fouad Abdel Halim, Field Marshal Hussein Tantawi's FMF advisor, about the use of the MECC to service Egypt Air equipment. He promised to look into the issue and respond as soon as possible. ¶7. (C) Post requests guidance regarding appropriate follow-up. RICCIARDONE