EGYPT - SEPTEMBER MILITARY WRAP-UP

C O N F I D E N T I A L CAIRO 002800 SIPDIS SIPDIS STATE FOR NEA/ELA AND PM (MILTON-KURTZ) E.O. 12958: DECL: 09/15/2012 TAGS: PREL MASS MARR EAID EG SUBJECT: EGYPT - SEPTEMBER MILITARY WRAP-UP REF: CAIRO 2627 Classified By: DCM Stuart Jones for reasons 1.4(b) and (d). Summary -------------- ¶1. (C) The Chief of the Office of Military Cooperation ("OMC Chief") discussed the annual Military Cooperation Committee (MCC) meeting, the slow disbursement of FMF, border security and prospects for a secure communications agreement with Assistant Minister of Defense for Policy MG Al Assar and Assistant Minister of Defense for Armament MG Fouad abd el Halim during a regularly scheduled meeting on September 10. All agreed to hold the MCC on November 28-29 and to try to hold a Financial Management Review (FMR) during the first half of January 2008 to address the delayed disbursement of FMF. Al Assar refused to agree to open a new FMS case aimed at exploring ways to enhance border security. Al Assar and Fouad suggested that Egypt would be unlikely to change or to clarify in writing its opposition to signing a secure communications agreement (CISMOA). End summary. Military Cooperation Committee Meeting -------------- ¶2. (C) On September 10, the OMC Chief pressed MOD's MG Al Assar and MG Fouad abd el Halim to delay the annual Military Cooperation Committee meetings until 2008 to allow time for preparation for substantive discussion. Al Assar refused, again noting the MCC's symbolic importance. Following significant debate on the issue, both sides agreed to try to schedule the MCC for Nov. 28-29. Financial Management Review -------------- ¶3. (C) OMC Chief expressed concern about the projected under-disbursement of FY07 FMF and asked MG Fouad to schedule the Financial Management Review (FMR) for the first quarter of FY08 in order to expedite FMF disbursement for FY08. Fouad noted that the FMR will not address the under-spending problem because poorly performing cases are not the primary cause of the under-spending. The delay in processing cases, at DSCA, in State/PM, and at other points in the U.S. system also contributed to the under-spending this year -- "Egypt will not be blamed alone" for this problem, he said. The OMC Chief pressed again to expedite the FMR, arguing that the discussion should be strategically directed to address the range of factors that lead to under-disbursement of FMF. The OMC Chief also urged Fouad to ask the Field Marshal to approve a prioritized list of cases for the entire year to allow cases to move into the system more quickly as money becomes available. Fouad suggested that this proposal may be both reasonable and possible. Fouad and OMC Chief agreed to hold the FMR in the first half of January 2008. Border Security -------------- ¶4. (C) OMC Chief pressed Al Assar for a case that would allow for consultations regarding possible technical support to enhance security on the Gaza border. Al Assar said that the case will not help; "we have all of the equipment we need. We are ready to send another unit to the border and have the equipment for them as well, if the Israelis agree. You (the U.S.) can sell our position to Congress without a new case." OMC Chief offered (see reftel) to bring an Army Corps of Engineers tunneling expert to Egypt to brief MoD on tunnel detection equipment. Poloff clarified that in order for the expert to make any Egypt-specific recommendations, he would have to have access to the border and take soil samples. Al Assar made no commitment and requested a letter outlining a proposal for the tunneling expert's visit. Secure Communications Agreement -- CISMOA, COMSEC MOA -------------- -------------- ¶5. (C) OMC Chief told MoD that there would be no substantive difference between a CISMOA and a COMSEC MOA. Al Assar said "then there will be no movement" in our position. When the OMC Chief replied that CISMOA-related defense systems will not be included in the MCC, Fouad and Al Assar corrected that the items were removed from MCC discussion some time ago and will be noted in the MCC minutes only. The OMC Chief then said that in the future OMC would not entertain any letters of request for CISMOA-related systems. The OMC Chief offered to send the two draft secure communications agreements to MoD for review. Fouad said the MoD will never put in writing or clarify further that Egypt will not sign a CISMOA; they have given clear verbal signals on this issue, which is sufficient. RICCIARDONE