CZECH REPUBLIC: 2005-2006 REPORT ON ALLIED

UNCLAS SECTION 01 OF 06 PRAGUE 000166

SIPDIS

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DEPT FOR PM/SNA AND EUR/NCE,
DOD FOR OSD/PA&E, OASD/ISA/EUR,
OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA AND OASD/ISA/BTF

E.O. 12958: N/A
TAGS: MCAP PREL NATO EZ
SUBJECT: CZECH REPUBLIC: 2005-2006 REPORT ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

REF: STATE 223383


1. The following information is provided in response to
reftel. Note that one dollar equals approximately 23 Czech
crowns (CZK).


2. General Assessment. The Czech Republic is a close ally of
the United States, operating in support of U.S. objectives
both in Europe and farther afield. The Czechs have not
wavered in their participation in the War on Terror. The
Czechs are solid members of the NATO alliance and continue to
use NATO priorities to direct the focus of their defense
policy. The Czech Republic remains a proponent of NATO
expansion and is supportive of U.S. efforts to prevent EU
defense planning from sapping NATO resources. The Czech
Republic currently contributes over 800 soldiers, observers,
monitors, specialists, and civilian police throughout the
world. The Czechs, military, capacity-building, and economic
contributions to aspects of the War on Terror are detailed in
paragraphs 3-4, 6, 10-12, 29 and 32.

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CZECH DEPLOYMENTS IN 2004-2005
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3. IRAQ: In 2004 and 2005 the Czech Republic maintained a
deployment of 100 troops near Basra to train Iraqi military
police. Additionally the Czechs provided a ten-member medical
team to work in a British field hospital near Basra from
January 2004 until the end of 2005. The Czechs also
volunteered for the NATO Training Mission-Iraq, detailing six
MPs to Baghdad and approving a USD 200,000 contribution to
the Trust Fund to support this mission. Training of Iraqi
army soldiers in the Czech Republic is also ongoing, with 100
Iraqi soldiers taking the training in 2005 calendar. In 2005
the Ministry of Defense donated 35 tons of arms and
ammunition to the Iraqi Ministry of Culture to assist in the
protection of sites of significant cultural heritage. The MFA
fully allocated a 200 million Czech crown ($8.7 million USD)
fund specifically designated for Iraqi reconstruction. The
GOCR in 2004 announced donations of 46 tons of weapons and
ammunition for U.S. training of Georgian troops in
preparation for a deployment to Iraq. Delivery was completed
in 2005 (Note: The donation earned disapproving comments from
Russian officials in the press, who claimed such assistance
could complicate Georgia,s internal situation. End note).
The Czechs were also very active in capacity building for
Iraq, see para 10.


4. AFGHANISTAN: In 2004-2005 the Czechs maintained between 15
and 50 ISAF specialists in Kabul, fulfilling EOD engineering,
demining, and air-traffic-control missions. Between March and
September 2004, the GOCR deployed a 112-man Special
Operations Force company in support of Operation Enduring
Freedom. They served as part of CFC-A, under U.S. command.
Upon the return of the special forces the Czechs bolstered
their commitment to ISAF by providing 40 light infantry
reconnaissance troops and medical staff to the German PRT
near Konduz. In 2005 the GOCR began planning for a second
deployment of special forces to Afghanistan, again under U.S.
command. This mission is on schedule to begin in Spring 2006.
The MOD elected to spend much of its USD $6 million Coalition
Support Fund allocation on weapons and equipment for this
special forces mission. In 2004 the Czech Government also
made a donation of 6000 tons of ammunition to Afghanistan,
material that was delivered by General Dynamics in 2005.


5. THE BALKANS: The Czech Republic continued its robust
engagement in the Balkans in 2004-2005 deploying 600 troops
for the KFOR mission in Kosovo and 90 troops as part of the
EU's operation in Bosnia. In Kosovo they operated in a joint
battalion with 100 Slovaks in Multinational Brigade-Center.
The Czechs took command of the brigade in August 2005,
assuming responsibility for the security of over half of
Kosovo,s population. In Bosnia, 25 troops were accompanied
by two M-17 helicopters, and 40 Czechs joined 40 Austrians in
a mechanized infantry unit.


6. NATO: In addition to ongoing contributions to ISAF in
Kabul and Konduz, Parliament also authorized the

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participation of Czech NBC Defense units in the NRF in
2004-2005. The Czechs provided an NBC Reconnaissance Platoon
and Decontamination unit to NRF 2. Also from 1 July 2004 to
13 Jan 2005 the Czechs were the lead nation for the
Multinational Chemical, Biological, Radiological, Nuclear
(CBRN) Battalion in NRF 3. The 312th CBRN Battalion n
provided the headquarters and a NBC Defense company (plus) to
this effort that included a deployment to protect the summer
Olympics in Athens. An additional 35-member NBC platoon
joined the NATO Reaction Force in the second half of 2005.

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OTHER BILATERAL ACTIVITY WITH THE UNITED STATES
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7. Defense Minister Karel Kuehnl in 2005 offered the use of
Czech military training ranges and airspace for the use of
U.S. special operations forces stationed in Germany and
elsewhere. The United States began such training in December
2005


8. In April 2004 four soldiers from the Texas and Nebraska
National Guards participated in a disaster training exercise
in Usti nad Labem. In June the Texas Army National Guard sent
a 16-man armor platoon to Vyskov to participate in a
simulation exercise with the Czech Defense University. In
July the Nebraska National Guard sent six instructors to
Plzen for three weeks to facilitate English-language
discussions focused on military topics at Western Bohemia
University.


9. In March 2005 Czech infantry soldiers from the 71st
Mechanized Battalion trained at the Combat Maneuver Training
Center, Hohenfels, Germany, alongside a Texas National Guard
infantry company. In June the Czech Military University
hosted a 35 member Texas National Guard cavalry squadron
staff and platoon at Vyskov and Brno to participate in
simulation exercises with a Czech mechanized brigade. In July
the Nebraska National Guard again sent six instructors to
Plzen for three weeks to facilitate international
discussions. In December, as part of a KFOR mission rehearsal
exercise, 90 Czech soldiers from the 71st Mechanized
Battalion trained with the Kosovo-Bound Texas National Guard
Task Force Falcon at the Joint Multinational Readiness
Center, also at Hohenfels.

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Capacity Building in Iraq
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10. The Czech Republic is active in civilian assistance to
Iraq. It has contributed to training more than 200 Iraqi
judges at the CEELI Institute in Prague, has brought Iraqi
diplomats for training at the Czech diplomatic academy and
Czech police instructors participate in police training in
Jordan as part of an ongoing since November 2003. The Czech
government is helping to sponsor a number of Iraqi students
pursuing graduate economic studies at the Prague campus of
the Center for Economic Research and Graduate Education
(CERGE-EI). The GOCR also regularly provided assistance to
facilitate Iraqi citizens living in the Czech Republic to
vote in the series of Iraqi elections in 2005


11. People in Need (PIN),an NGO with close financial and
personnel ties to the Czech Government, began training Iraqi
civil society in August 2005 at a center located in Amman,
Jordan, with the working title, The Democracy and Transition
Center. The project is 75 percent funded by the Czech MFA.
This Center trains carefully selected Iraqi journalists on
their role in transforming society, and on professional
ethics. It also helps Iraqi NGOs develop management skills,
and provides training for the trainers. In 2006, PIN plans to
expand the training program at the Center to include Iraqi
civil servants.


12. The MFA remains committed to Iraqi reconstruction and has
allocated their entire 200 million Czech crown (approximately
$8.7m USD) Iraqi reconstruction budget; a fund that they
successfully protected from attempts to raid it after the
tsunami disaster in Southeast Asia. In addition, a separate

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"transformation assistance" fund will continue to offer pilot
programs assisting Iraqi NGO's. A project for NGO training
in Iraq, which will continue into at least 2008, will be
funded by the MFA,s Transformation Assistance Office.
Additional Czech assistance to Iraq has focused on the
protection of Iraqi cultural heritage (restoration of
manuscripts in the National Library of Baghdad),provision of
equipment for the Police Academy at Az Zubayr and specialized
training programs for experts in various fields.

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DEFENSE STRUCTURE AND REFORM IN THE CZECH REPUBLIC
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13. STRUCTURE: Effective 1 January 2004, the Czechs
Integrated the MOD and General Staff, dissolved the services
and created two operational commands*the Joint Forces
Command, responsible for training, command and control of
units in peacetime and the Support and Training Command.
Several organizations were kept under the MOD General Staff,
e.g. military police, special forces, the Defense University.
All Czech forces deployed abroad come under the command of
the Joint Operational Commander/Center of the General Staff.
In July 2005, Specialized Forces (NBC Defense, Passive
Surveillance) were reintegrated into regular Army and Air
Force units. These units had previously been part of a
special command and later under separate command and control
within the JFC. In 2005 the Polish-Czech-Slovak multinational
brigade was disbanded. The brigade was based on similar
regional units created after the expansion on NATO in 1999.
It was seen as a vehicle to assist Slovakia towards NATO
accession. That being done the unit lost its principal
raison d'etre. With NRF and EU Battle Group requirements the
Czechs no longer have the luxury of supporting such units.


14. PERSONNEL: The Czech armed forces ended conscription on
31 December 2004, completing the transition to an
all-volunteer force. The force was short 2000 professionals
in 2005 due to force structure issues. The MOD expects to
correct these problems and recruit sufficient numbers in 2006.


15. PROCUREMENT AND FORCE MODERNIZATION: The 2004 tender to
select a modern supersonic fighter was fraught with problems,
including allegations of corruption. The GOCR eventually
signed a contract to lease 14 Gripen supersonic fighters for
its air force for a period of ten years. These problems were
likely the reason that the MOD chose to have an outside body,
Price Waterhouse Coopers, manage the Czech Republic,s next
major tender (for USD 1 billion in armored personnel
carriers),hoping to promote transparency and preserve the
integrity of the selection process. Although there were some
concerns with the decision by the MOD to reopen the final
submission process in late 2005, overall we believe this was
the most professionally managed and conducted high value
military tender in recent memory. The official result of the
tender were announced in early 2006: The government selected
Vienna-based Steyr-Daimler-Puch Spezialfahrzeug GmbH, a part
of General Dynamics European Land Combat Systems, to supply
the Czech army with up to 243 new eight-wheeled Pandur II
armored vehicles between 2007 and 2012. In November 2004 the
GOCR completed the modernization of its T-72M4 CZ. After some
difficulties with suppliers, cost-overruns and force
structure changes the program eventually produced 35 tanks,
which are now in service. Strategic airlift remains a
critical shortfall for the Czech armed forces, which are
widely deployed and have relied in part on the U.S. to fund
its deployments. Attempts to acquire strategic transport
aircraft in exchange for Russian debt floundered in 2004.
After first expressing interest in procuring C-130s in 2004,
the Ministry of Defense continues to gather information for a
possible procurement. In 2005 the Czech Government also
proposed to spend $200m to purchase 977 trucks from Tatra, a
domestic supplier, a unit of U.S. firm Terex Corp. In July
2005, the Czech government approved a privatization plan for
Aero Vodochody, the aircraft company responsible for the
L-159 subsonic fighter. Aero Vodochody was formerly partnered
with Boeing until their 2004 split. In exchange for the
Russian debt, the ACR acquired 7 Mi-35 and 16 Mi-171S
helicopters in 2005. An additional 3 Mi-35s will be received
in 2006. In 2005, the MOD signed agreements to purchase 24

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AMRAAM air-to-air missiles for $16m, the largest purchase to
date of U.S. military equipment using Czech national funds.

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Major Developments in Defense Policy
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16. The most important defense-related decisions in 2004 and
2005 centered on ongoing deployments in support of U.S. and
NATO-led missions. The results of these decisions are
outlined above. The required support in Parliament for
overseas deployment was generally good, although there was
some hesitancy over the continued presence of Iraqi troops in
Iraq, even though the Czech Republic did not experience the
level of public dissatisfaction that was expressed in other
European countries. The Czech Government and even the
opposition parties (with the exception of the Communist
Party) have supported the U.S. efforts in Iraq.


17. Spending: In 2004 though the economy has recovered from
the 2002 floods, Defense spending was USD $2.1 billion,
rising to USD $2.22 billion in 2005. This represents
approximately 1.81 percent of GDP. Current Defense Minister
Karel Kuehnl has waged a public battle for maintaining
defense spending at two percent of GDP, saying that a
shortfall will have significant consequences for reform and
professionalization of the army.


18. The cornerstones of Czech defense reform policy remain
the acquisition, by the promised dates, of its fourteen
Prague Capability Commitments, and its preparations for
participation in the NATO Reaction Force.


19. In 2004 new Defense Minister Kuehnl listed his priorities
as fulfilling the country's obligations toward NATO,
continuing defense reform, practicing sound personnel policy,
and strengthening civilian control of the military.


20. When the reform plan is completed in 2008, the Czech
military will have shrunk from a high of 162,000 conscripted
soldiers in 1993 when the Czech Republic separated from
Slovakia to as few as 30,000 professional soldiers.
Territorial defense units will be abolished with the
intention of having as many troops available for NATO
deployments as possible. By the end of the reform, the Czech
Republic will have force structure equivalent to one U.S.
mechanized division and one composite air force squadron.
They will be able to deploy up to a 3000-person brigade for
low-intensity Article V operations. (High-intensity Article
V operations would require mobilization, but these troops
would generally not be deployable outside the territory of
the Czech Republic.) Additionally, by following NATO guidance
and remaining firm in their commitment to acquire the
capabilities pledged at the Prague Summit in 2002, the Czech
Republic's armed forces will become heavily specialized in
NBC defense, passive surveillance, and military medical
capabilities. As a result of having a smaller, more
specialized military, the Czech Republic will rely more on
NATO to confront threats to their territorial and national
security. The Czech Republic, however, will be able to
contribute more to NATO's out of area deployments. A key
feature of the reform plan is the Czech plan to participate
in operations conducted by the NATO Reaction Force. In order
to achieve these goals with fewer resources, the Czech
Defense Ministry has implemented a plan of force reduction,
civilian layoff, base closures and realignment of existing
units.


21. Progress of the modified reform plan: The Reform plan
revised after budget cuts in May 2003, has been well executed
in 2004 and 2005. The cornerstone of this reform has been
the full professionalization of the force. Additionally, the
past two years witnessed the streamlining of force structure
as five operational commands were reduced to two and the MOD
and General Staff were integrated. A significant number of
obsolete or redundant bases were relocated or closed. Large
stores of excess equipment and ammunition were sold, donated
or destroyed. Long-term programs which diverted significant
funds from the MOD budget such as the L-159 acquisition and
the T-72 modernization came to an end. The tender for the

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new wheeled armored vehicle to replace the ancient OT-64 was
approved as was the tender for new medium and heavy trucks.
Major progress was made reorganizing the training and
education system with the creation of a Defense University.

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EU CFSP/ESDP
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22. The Czech Republic views NATO as the cornerstone of its
defense policy and has opposed efforts within the EU to form
a separate European command structure or structured military
cooperation that would either undermine NATO or create
duplicative structures. Prague is a strong supporter of the
Berlin-Plus agreement In November 2005 the MFA hosted a major
seminar on the European Union,s Battlegroups concept, and
announced it would field an EU Battlegroup in 2009. The Czech
Republic joined the European Union in May 2004. As one of the
new bloc of members the Czechs are gaining confidence in
their interactions in Brussels, and have shown themselves to
be a reliable U.S. ally when addressing issues such as the
EU's China arms embargo.

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NONPROLIFERATION
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23. The Czech Republic is a member in good standing of every
major arms control and international regime for the control
of weapons of mass destruction and delivery technology. They
are members of the Missile Technology Control Regime, the
Australia Group, the CBW and the Wassenaar Arrangement. On
issues not covered by any treaty, convention or control
regime, the Czechs have made notable efforts to conduct all
transactions and sales of military equipment in a transparent
manner.


24. Czech law currently prevents domestic firms from
supplying equipment to Iran's Bushehr nuclear power plant.
The Czech Republic continues to suffer the effects of an
informal trade embargo imposed by Iran in retaliation. In
2004 and 2005 the GOCR was a consistent proponent of
maintaining the EU arms embargo against China.


25. In May and June 2005 the Czech Republic hosted BOHEMIAN
GUARD, a major Proliferation Security Initiative (PSI)
exercise.

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LEGAL CONTRIBUTIONS TO THE WAR ON TERRORISM
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26. The Czech Republic have now ratified all major
anti-terrorism conventions. In December 2004 the Czech
Republic ratified the Convention for the Suppression of
Unlawful Acts Against the Safety of Maritime Navigation
(SUA),Protocol for the Suppression of Unlawful Acts Against
the Safety of Fixed Platforms Located on the Continental
Shelf.

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GRANT AID, PEACEKEEPING AND HUMANITARIAN ASSISTANCE
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27. The Czech Republic provided grant aid, assistance to
humanitarian projects, disaster relief, and support for
humanitarian projects in developing countries in 2004-2005.
2005 saw a record total disbursement of USD 16.6 million, up
from USD 2.2 million in 2004. Of this USD 8.3 million was for
Iraqi reconstruction. In addition, humanitarian relief
included Pakistan earthquake relief (USD 4.6 million),
Southeast Asia tsunami relief (USD 1.2 million),and U.S.
Hurricane Katrina relief (USD 652,000).


28. Hurricane Katrina: The Czech contribution for Hurricane
Katrina relief in the U.S. was the largest contribution among
the Visegrad-4. The Czech Republic provided 24,000 blankets,
600 cots, and 14 large tents for the victims of hurricane
Katrina. The items were delivered by NATO airlift. The City
of Prague approved CZK 16 million (USD 700,000) in assistance

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for Hurricane Katrina relief. Both the MFA and Prague City
Hall have pledged coordination of their resources for
longer-term assistance offers.


29. International Disasters: The GOCR provided 230 million
crowns of assistance to victims of the Asian tsunami, divided
into 40 million crowns of humanitarian assistance and 190
million crowns of reconstruction projects. The Czech
government assistance to victims of the Pakistan Earthquake
totals approximately $4.6 million (110 million CZK). The
Ministry of Defense spent about USD 1.5 million on Pakistan
earthquake relief (USD 625,000 to send doctors to a Dutch
hospital in Pakistan and USD 835,000 on NATO flights),the
Ministry of the Interior spent USD 417,000 on medevacs from
Pakistan, In the aftermath of the disaster the Czech Republic
sent an initial medical team, tents and 12 tons of other
emergency supplies. The team left all medical equipment for
local use when they returned home. Czech private donations
via local NGOs for relief efforts in Pakistan were estimated
at well over $1 million.


30. Direct Cost Sharing. Not Applicable. There are no
stationed U.S. forces in the Czech Republic.


31. Indirect Cost Sharing. Not Applicable. There are no
stationed U.S. forces in the Czech Republic.

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OUTLOOK FOR 2006
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32. The Czech Republic will increase its engagement in
international security in 2006 The Czech Parliament has
already given the necessary constitutional approval for
deployment of 150 troops to Afghanistan, the continued
presence of 100 military police in Iraq, and transfer of
Czech troops to NTM-I The government also has approval to
maintain up to 590 troops in the Balkans under NATO, and up
to 70 troops in that region under the EU. Additionally the
parliament has authorized deployment of 20 troops as part of
the NATO Rapid Reaction Force that will comprise a CIMIC
detachment. The Czech Army will achieve initial operational
capability of its reform in 2006. The Czech Republic is
currently considering a plan to establish a Provincial
Reconstruction Team in Afghanistan.


33. In 2006, the MFA hopes to reach a 65/35 balance between
assistance funding for emergency relief projects and existing
crises. While much of the humanitarian assistance will
depend on emerging crises around the world, thus far the GOCR
plans to focus on the "forgotten crisis" of sub-Saharan
Africa and on avian flu outbreaks. At the recent Afghanistan
Donors Conference in London, the GOCR announced over USD 1
million (CZK 25 million) to support Czech NGOs, demining
projects, and UN activities in Afghanistan.


34. Point of Contact for this report is Brian Greaney,
External Affairs Chief, 420-257 530 663 xt 2306 (tel.)
420-257 532 717 (fax),greaneybe@state.gov (email).
CABANISS