Identifier
Created
Classification
Origin
06PRAGUE1398
2006-11-09 12:04:00
SECRET//NOFORN
Embassy Prague
Cable title:  

CZECH MFA SOLICITS INFORMAL U.S. OPINION ON FOUR

Tags:  PGOV PREL EZ MARR MASS MCAP NI EC ID VM 
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DE RUEHPG #1398/01 3131204
ZNY SSSSS ZZH
O 091204Z NOV 06
FM AMEMBASSY PRAGUE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8218
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RUEHNO/USMISSION USNATO PRIORITY 1788
RHEHNSC/NSC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY
S E C R E T PRAGUE 001398 

SIPDIS

NOFORN
SIPDIS

EUR/NCE FOR FICHTE, PM FOR DOWLEY, OSD FOR SADOWSKA

E.O. 12958: DECL: 11/08/2016
TAGS: PGOV PREL EZ MARR MASS MCAP NI EC ID VM
SUBJECT: CZECH MFA SOLICITS INFORMAL U.S. OPINION ON FOUR
VERA/TAMARA/BORAP DEALS

REF: PRAGUE 1350

Classified By: Political Counselor Michael Dodman
for reasons 1.4 (b) and (d)

S E C R E T PRAGUE 001398

SIPDIS

NOFORN
SIPDIS

EUR/NCE FOR FICHTE, PM FOR DOWLEY, OSD FOR SADOWSKA

E.O. 12958: DECL: 11/08/2016
TAGS: PGOV PREL EZ MARR MASS MCAP NI EC ID VM
SUBJECT: CZECH MFA SOLICITS INFORMAL U.S. OPINION ON FOUR
VERA/TAMARA/BORAP DEALS

REF: PRAGUE 1350

Classified By: Political Counselor Michael Dodman
for reasons 1.4 (b) and (d)


1. (S/NF) Summary: The Czech Government is considering
granting permission for Czech export companies to begin to
negotiate sales of several radar and similar systems to
Indonesia, Ecuador, Nigeria, and Vietnam. If future
applications are made for export licenses for the VERA, the
Czech MFA intends to work with the United States to reach a
decision. End summary.


2. (S/NF) Poloff met October 26 with Czech MFA Common Foreign
Security and Policy Director Vaclav Balek to discuss exports
of sensitive Czech military technology. Balek shared that the
Czech Government is considering issuing a preliminary opinion
on applications from several (unnamed) Czech export companies
to negotiate sales of radar and/or passive surveillance
technology to Indonesia, Ecuador, Nigeria, and Vietnam. Balek
highlighted that these were not formal license applications
but were instead "preliminary applications for the start of
negotiations with partners." He was keen to point out that
these applications were subject to a degree of uncertainty.
The applications indicated neither a destination country's
definite interest in purchasing a system nor that an eventual
export license application would be approved by the Czech
Government.


3. (S/NF) Balek said that any future exports of the VERA
would be subject to a range of nonproliferation controls,
including the incorporation of chips that would cause the
system to self-destruct if operated outside of the
destination country. (Note: We believe that applications to
purchase the "VERA" refer to the slightly limited ASDD-01
version of the system that is normally offered to non-NATO

countries. End note.) Balek outlined the following requests
and probable Czech Government decisions:

Indonesia: VERA
- likely to grant permission for preliminary negotiations

Ecuador: VERA
- likely to grant permission for preliminary negotiations

Nigeria: Tamara
- likely to grant permission for preliminary negotiations

Vietnam: VERA or Tamara or BORAP.
- likely to refuse permission for preliminary negotiations on
VERA and Tamara
- likely to grant permission for preliminary negotiations on
BORAP.

(Note: While the VERA and the BORAP are manufactured by ERA
a.s., Balek guessed that the Tamara systems in question were
manufactured by Tesla Pardubice for delivery to France in the
early 1990s. That deal had fallen apart in a price dispute,
leaving two unsold systems in the Czech Republic. End note)


4. (S/NF) Balek said that, if the U.S. had an opinion on
sales to these particular destination countries, it would be
helpful for the Czechs to hear the U.S. side early in the
process. Poloff reminded Balek that USG opposition to a VERA
transfer to Vietnam was unlikely to change. Balek agreed,
indicating that this was a primary reason for the Czechs'
likely refusal to authorize commercial negotiations on the
purchase of a VERA. (Note: There is currently no agreement
committing the Czech Government to consult with the U.S. over
surveillance systems other than the VERA. However our
cooperation on other arms exports suggests that the Czech MFA
could be receptive to clearly articulated U.S. concerns about
other systems. End note.)

--------------
COMMENT
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5. (S/NF) As noted above, the VERA and BORAP are manufactured
by ERA a.s., based in Pardubice, Czech Republic. These
applications all predate the October 26 purchase of ERA by
Rannoch, a U.S. firm (Reftel). All of the applications were
made by Czech export companies specializing in military
material, rather than ERA itself. It remains to be seen if

Rannoch would back these export companies and support further
negotiations with these destination countries. Regardless of
Rannoch's opinion, if the VERA now falls within the
jurisdiction of U.S. defense export licensing controls, the
USG will have a useful tool at its disposal to ensure that
VERAs are not sent to the wrong countries.

6. (S/NF) Pending resolution of the issues raised by the
Rannoch acquisition of ERA, the Czech MFA must still rule on
the current applications to negotiate with these four
destination countries. Post has already made it clear to the
Czechs that the USG remains opposed to a transfer to Vietnam.
The Czech MFA did not/not make a formal request with a 30-day
timeline for a final USG opinion on any of these destination
countries (Note: For an actual marketing or export license
application involving the VERA, the USG has committed to
providing the Czech Government with its opinion within 30
days. End note). The Czech MFA's decision to consult with the
Embassy at so early a stage provides an opportunity to stop
problematic negotiations before they begin in earnest. There
is no history of the Czech Republic consulting the U.S. on
BORAP or the Tamara and this may be our only chance to
intervene in those cases. If a USG opinion on the
appropriateness of these destination countries is not easily
available in Washington, Post will make it clear to the
Czechs that the USG will be able to provide a formal and
timely response on the VERA cases if negotiations lead to an
actual application for a license. We will also note that we
are also considering the implications of the Rannoch
acquisition of ERA.
GRABER