Identifier
Created
Classification
Origin
06MONTREAL572
2006-05-18 19:18:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Montreal
Cable title:  

AMBASSADOR MEETS WITH ICAO'S TCB DEPUTY DIRECTOR ON

Tags:  EAIR ETRD ECON PREL ICAO CA SY UNDP 
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OO RUEHWEB

DE RUEHMT #0572/01 1381918
ZNR UUUUU ZZH
O 181918Z MAY 06
FM AMCONSUL MONTREAL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9725
INFO RUEANHA/FAA NATIONAL HQ WASHINGTON DC//API-20
RULSDMK/DOT WASHDC
UNCLAS MONTREAL 000572 

SIPDIS

SENSITIVE
SIPDIS

FROM USMISSION ICAO

DEPT FOR IO/T, EB/TRA, NEA/RA, AND NEA/ARN
FAA FOR BOGOSIAN AND FELDMAN

E.O. 12958: N/A
TAGS: EAIR ETRD ECON PREL ICAO CA SY UNDP
SUBJECT: AMBASSADOR MEETS WITH ICAO'S TCB DEPUTY DIRECTOR ON
SYRIAN ARAB AIRLINES

This cable is Sensitive but Unclassified. Please handle
accordingly.

UNCLAS MONTREAL 000572

SIPDIS

SENSITIVE
SIPDIS

FROM USMISSION ICAO

DEPT FOR IO/T, EB/TRA, NEA/RA, AND NEA/ARN
FAA FOR BOGOSIAN AND FELDMAN

E.O. 12958: N/A
TAGS: EAIR ETRD ECON PREL ICAO CA SY UNDP
SUBJECT: AMBASSADOR MEETS WITH ICAO'S TCB DEPUTY DIRECTOR ON
SYRIAN ARAB AIRLINES

This cable is Sensitive but Unclassified. Please handle
accordingly.


1. (SBU) Summary and Action Request (para 9): The Deputy
Director of ICAO's Technical Cooperation Bureau (TCB) Bachar
Hakim, visited the Ambassador on May 17, 2006 to inform him
of TCB's recommendations to Syrian Arab Airlines on the
replacement of ten aging Boeing aircraft, which are
currently grounded. This cable reports on the status of
this project and seeks instructions from the Department.


2. (SBU) On May 17, 2006, Bachar Hakim, Deputy Director of
ICAO's TCB visited Ambassador Bliss in the U.S. Mission.
Mr. Hakim is a Canadian citizen of Syrian descent who will
be retiring from ICAO probably in July 2006. Mr. Hakim is
experienced, articulate and forthcoming.


3. (SBU) Mr. Hakim reported on the status of a TCB project
in Syria, involving Syrian Arab Airlines, which is owned by
the government but operates on a commercial basis. The TCB
project is entirely funded by the Syrian Government which
involves technical advice from TCB and UNDP. TCB and UNDP
are paid a fee for their technical advice as a percentage of
the contract. TCB receives three percent of the contract
price.


4. (SBU) Syrian Arab Airlines (Syrian Air) has operated a
fleet of approximately 22 aircraft, of which ten aging
Boeing 727's and 747's have now been grounded for safety
reasons. Syrian Air would like to replace the grounded
aircraft with either Airbus or Boeing aircraft. It likely
will be Airbus aircraft since most of the remaining active
fleet consists of A-320's and A-340's. Because of U.S. laws
and regulations on exports to Syria, to which ICAO adheres,
Syrian Air has been advised that the purchase or lease of
Airbus or Boeing aircraft would require suppliers to obtain
an export license from the United States. A license would
be required for a "dry lease" (where the aircraft is
operated by Syrian air) or a "wet lease" (where the aircraft

is operated and maintained by a third party). However,
Syrian Air has been further advised that if a "wet lease" is
provided in accordance with nine conditions that meet the
requirements of the "Export Administration Regulations, Part
740.15, License Exception", then an export license would not
be required. Such operating conditions include, among
others, complete operational control of the aircraft by the
supplier, no change in routes without supplier consent, and
no maintenance within Syria.


5. (SBU) Accordingly, TCB has recommended that Syrian Air
"wet lease" up to six aircraft from a third party for a
period of nine months to one year. At the same time, its
supplier would initiate the U.S. export license process for
a "dry lease" of replacement aircraft. At the end of the
"wet lease" contract, Syrian Air would either continue the
"wet lease" or, if the export license is approved, "dry
lease" the aircraft from the supplier, presumably Airbus.
Syrian Air also is exploring the purchase of Russian
aircraft, which is being aggressively promoted by the
Russian Government.


6. (SBU) Mr. Hakim points out that in the 2002-2004 time
period, TCB worked with Syria in providing for international
expert training and the procurement of firefighting
equipment from two U.S. companies, Oshkosh and Emergency
One, for which export licenses were obtained. In addition,
Boeing has routinely obtained on an ongoing basis export
licenses to provide spare parts for Syrian Air's Boeing
aircraft.

7. (SBU) Mr. Hakim also noted that in a recent meeting, the
Syrian Minister of Transport recommended that Mr. Hakim meet
with Syrian President Assad. If and when such a meeting is
arranged, Mr. Hakim offered to serve as a conduit for any
message the USG wished to convey either on this issue or any
other. Ambassador Bliss passes this information along
without comment.


8. (SBU) On another but related issue, Mr. Hakim noted that
on request from the Government of Cuba, TCB is assisting the
Instituto de Aeronautica de Cuba (IACC) in the procurement
of 4 MA-60 turbo prop aircraft manufactured by China.
ICAO's role is limited to reviewing technical specifications
on the aircrafts' civilian use, assisting the supplier in
the preparation of export license applications (the aircraft
has more than 10 percent U.S. components) and following up

with a letter from ICAO Council President Kotaite seeking a
favorable answer on the applications. The applications have
been submitted to the Department of Commerce.


9. Action requested: Please advise whether further
information is required and whether Ambassador Bliss should
respond to Mr. Hakim on the issues raised in the meeting,
and if so, what his response should be.

Bliss/Marshall