ISRAELI MOD POSES QUESTIONS ABOUT USG ARMS

1. (C) Responding to ref A demarche, Israeli MOD Strategic
Dialogues and Cooperation Coordinator Rami Yungman posed a
number of questions to poloff in their meeting September 21.
Stressing that Israel wants to "do the right thing" with
respect to Venezuela, Yungman said he would be grateful for
any answers the USG could supply to the following questions:

A) In the talking points, it is noted initially that
contracts will be suspended. Later in the points, it is noted
that contracts will be revoked. The term "revoked" is used
in the Federal Register announcement. Yungman wondered aloud
if there is a difference.

B) What steps is the USG taking -- if any -- to address the
frustration of affected U.S. companies? Will the USG provide
any kind of compensation? Or are companies expected to
"suffer the consequences"?

C) Are maintenance and other forms of services also
suspended/revoked?

D) How has the USG informed/will the USG inform potentially
affected U.S. companies of this new policy? How does the USG
conduct outreach to companies? Does it contact them? Or are
the companies expected under U.S. law to inform themselves?

E) Does the U.S. still have a Defense Attache in Venezuela?

F) How will the USG enforce the revocation of supplies and
services? Do U.S. companies have any time to adjust to the
new policy?



2. (C) In his response, Yungman made a few points:

A) In Israel's view, under the USG's earlier policy, Israel
still had some "room to play." Israel wants to correctly
understand if this new policy means that the USG is stopping
all of its defense exports and services to Venezuela.

B) Israel's activity in Venezuela has dropped to a minimum
over the last two years. There are existing, low-tech
contracts and some maintenance contracts. Yungman noted, for
instance, that Israel is maintaining some light transport
aircraft (Arava planes) that Israel earlier sold to
Venezuela. This involves the supply of spare parts. Other
contracts concern Touch-Thales (as heard) ground-to-air
anti-aircraft missiles, but Yungman understands that those
contracts were fulfilled years ago.

C) Israel will take into consideration U.S. policy in shaping
its own. Yungman said that Israel is concerned about the
growing relationship between the Chavez government and Iran.
Israel is concerned that any high-tech in Chavez's hands
might find its way into Iran's hands and eventually be used
against Israel.
MINIMIZE CONSIDERED
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