ETHIOPIA: DEMARCHE TO ETHIOPIA OVER NORTH KOREAN

S E C R E T ADDIS ABABA 001096

SIPDIS

NOFORN
SIPDIS

DEPARTMENT FOR AF/E

E.O. 12958: DECL: 04/12/2017
TAGS: PREL PARM MASS MCAP ET KN RS IN CH
SUBJECT: ETHIOPIA: DEMARCHE TO ETHIOPIA OVER NORTH KOREAN
IMPORTS

REF: A. STATE 45986


B. ADDIS ABABA 105

C. 06 ADDIS ABABA 3223

Classified By: AMBASSADOR DONALD YAMAMOTO FOR REASONS 1.4 (A),(B) AND
(D)


1. (S/NF) Ambassador delivered demarche points on steps
Ethiopia is taking to diversify its military production units
away from imports from North Korea (ref C) to Prime Minister
Meles April 10. Meles noted that the goods imported from
North Korea were primarily chemicals for ammunition
production. Unfortunately, the ship's goods were mostly
destroyed due to an onboard ship fire. Meles added that
North Korea offered very cheap prices, while China, Russia
and India charged much higher prices. Of note was that
Russian goods were never delivered on time and that due to
corruption Meles noted that deliveries were either slow or
never forthcoming without a good stiff bribe. China and
India offered good opportunities, but again the cost factor
was a problem. Meles reiterated what Foreign Minister Seyoum
and State Minister Tekeda told the Ambassador in earlier and
separate conversations (refs A-B): that the U.S. can help
assist Ethiopia diversify its military industry and modernize
production. The Prime Minister said it will take time, much
investment and commitment by the government to upgrade and
modernize capabilities.


2. (S/NF) Ambassador spoke separately to the Ambassadors of
Russia, China, and India on their arms exchanges with
Ethiopia. All three countries informed the Ambassador of
their interest in expanding military sales to and exchanges
with Ethiopia, and enhancing arms production capability for
Ethiopian forces. Should Ethiopia pursue alternatives to
North Korea more seriously, these three countries would be
likely candidates.
YAMAMOTO