ISRAELI MOD POSES QUESTIONS ABOUT USG ARMS

C O N F I D E N T I A L TEL AVIV 003818 SIPDIS DEPT FOR PM - DAS SUCHAN AND TOMCHIK DEPT FOR WHA, NEA, NEA/IPA (MAHER) PENTAGON FOR OSD ISRAEL DESK (ANDERSON) NSC FOR LOGERFO E.O. 12958: DECL: 09/27/2016 TAGS: MARR MASS PARM PREL ETTC VE IS SUBJECT: ISRAELI MOD POSES QUESTIONS ABOUT USG ARMS TRANSFER POLICY TO VENEZUELA REF: A. STATE 155336 ¶B. TEL AVIV 3783 Classified By: Marc Sievers, Political Counselor. Reasons: 1.4 (b, d). ¶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 ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** JONES