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
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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
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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
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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
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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
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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