HUNGARY REQUEST FOR USG OPINION ON SALE OF

C O N F I D E N T I A L BUDAPEST 000130 SIPDIS SIPDIS EUR/NCE MICHELLE LABONTE, NES/I, PM/SA/LW E.O. 12958: DECL: 01/31/2022 TAGS: MARR PREL HU SUBJECT: HUNGARY REQUEST FOR USG OPINION ON SALE OF ANTI-TANK MISSILE SYSTEMS TO IRAQ Classified By: POL/C Eric V. Gaudiosi. Reasons: 1.4 (b) and (d). ¶1. (C) This is an action request. See paragraph 4. ¶2. (C) On January 31 Security Policy and Non-proliferation Department desk officer Zoltan Papp provided the following non-paper to poloff and requested our assistance regarding the sale and transfer of armor piercing anti-tank missiles to the Government of Iraq. On 23 January Security Policy and Non-proliferation Department Head Andras Toth told poloff that the MOD "may request a USG opinion and assistance ascertaining interest on behalf of the Iraqi government, for the sale of man portable anti-tank missiles." Toth speculated that if there is no interest in the sale or transfer of these items, "the MOD will probably destroy the missiles because they want to get rid of them." He specifically indicated that no official request had been received from the MOD at that time, therefore he could provide no further details. The GOH requests that the Embassy review the non-paper and provide our informal input "at our earliest convenience." ¶3. (C) BEGIN NON-PAPER TEXT: METISZ (METIS) man portable anti-tank missile system comprising: - launchers (80 units); - anti-tank missiles (1.200 live missiles and 400 units for training purposes) - accessories, spare parts Manufactured in Russia in March/June 1997, provided to Hungary as part of the repayment of Soviet state debt. Please note that their operational warranty expires in ten years, that is during spring and summer of 2007 Under the terms of the re-export permission issued by the Russian Federation, Iraq is the sole destination where Hungary is authorized to re(sell) these items to. We would like to make sure that no objections would be raised against such a a transaction (if realised) by the Unites States, and would also highly appreciate any information regarding potential interest in Iraq, from the part of Iraqi authorities, to buy the above military equipment. In short a reliable official end-user is required. END TEXT. ¶4. (C) The Embassy requests the Department's guidance on how best to advise the GOH on this matter. Please contact POL Nicholas Griffith at griffithnc@state.sgov.gov or POL/C Eric Gaudiosi at gaudiosiev@state.sgov.gov. FOLEY