Identifier
Created
Classification
Origin
07PRAGUE428
2007-04-20 16:14:00
CONFIDENTIAL//NOFORN
Embassy Prague
Cable title:
CZECH MFA REPORTS AERO VODOCHODY PLANS TO GO AHEAD
how-toVZCZCXRO2273 OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHPG #0428 1101614 ZNY CCCCC ZZH O 201614Z APR 07 FM AMEMBASSY PRAGUE TO RUEHC/SECSTATE WASHDC IMMEDIATE 8938 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RUEHNO/USMISSION USNATO PRIORITY 1852 RHEHNSC/NSC WASHDC PRIORITY RUEKJCS/JOINT STAFF WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY
C O N F I D E N T I A L PRAGUE 000428
SIPDIS
SIPDIS
NOFORN
EUR/NCE FOR ERIC FICHTE
E.O. 12958: DECL: 04/19/2016
TAGS: PREL PGOV MASS MARR EZ VE
SUBJECT: CZECH MFA REPORTS AERO VODOCHODY PLANS TO GO AHEAD
WITH LEASE OF CZECH L-39 AIRCRAFT TO VENEZUELA
REF: IIR 6 824 0116 07
Classified By: Ambassador Richard Graber
for reasons 1.4 (b) and (d)
C O N F I D E N T I A L PRAGUE 000428
SIPDIS
SIPDIS
NOFORN
EUR/NCE FOR ERIC FICHTE
E.O. 12958: DECL: 04/19/2016
TAGS: PREL PGOV MASS MARR EZ VE
SUBJECT: CZECH MFA REPORTS AERO VODOCHODY PLANS TO GO AHEAD
WITH LEASE OF CZECH L-39 AIRCRAFT TO VENEZUELA
REF: IIR 6 824 0116 07
Classified By: Ambassador Richard Graber
for reasons 1.4 (b) and (d)
1. (C/NF) Poloff met April 19 with the Czech MFA's Director
of Common Foreign and Security Policy Director Vaclav Balek
(please protect). Balek shared his astonishment that, despite
the MFA's previous assurances to the contrary, Czech firm
Aero Vodochody had successfully signed an MOU with
representatives of the Government of Venezuela for the lease
of nine L-39 aircraft for training purposes. Balek said the
MFA only learned about the deal when Aero Vodochody submitted
a request for a license.
2. (C/NF) Balek said the MFA will oppose the deal and deny
the license. Under normal circumstances, this would be
sufficient to prevent the deal from going forward. However,
Balek said that he has since learned Minister of Industry and
Trade Martin Riman personally supported the deal and attended
the MOU signing ceremony. Balek expressed concern that
Riman's support for the deal could overrule the MFA arms
licensing section's denial of the license request. He
strongly hinted that U.S. attention focused on the Ministry
of Industry and Trade might pay dividends in ensuring that
the deal does not go forward.
3. (C/NF) Balek believes this lease is part of a three-stage
business plan. The first stage would involve the leasing of
the L-39s, the second stage would involve the development of
a new aircraft without U.S. content, and the third stage
would involve transfer of the rights to produce the new
aircraft in Venezuela. Balek said the business plan is
consistent with information published in the local press in
fall 2006. He offered to provide more information as it
becomes available.
4. (C/NF) Balek noted that he believes the U.S. has leverage
over Aero Vodochody: namely, if the Venezuelan deal goes
forward, the U.S. can refuse to grant Aero Vodochody the
right to export equipment with U.S. content to other
countries with whom Aero Vodochody plans to conduct business,
such as Nigeria.
5. (C/NF) A meeting has been scheduled with Balek during the
week of April 23, and Post will report additional information
obtained at that meeting front channel. Based on that
information, Post will request language to be used in a
demarche to the Czech Government.
GRABER
SIPDIS
SIPDIS
NOFORN
EUR/NCE FOR ERIC FICHTE
E.O. 12958: DECL: 04/19/2016
TAGS: PREL PGOV MASS MARR EZ VE
SUBJECT: CZECH MFA REPORTS AERO VODOCHODY PLANS TO GO AHEAD
WITH LEASE OF CZECH L-39 AIRCRAFT TO VENEZUELA
REF: IIR 6 824 0116 07
Classified By: Ambassador Richard Graber
for reasons 1.4 (b) and (d)
1. (C/NF) Poloff met April 19 with the Czech MFA's Director
of Common Foreign and Security Policy Director Vaclav Balek
(please protect). Balek shared his astonishment that, despite
the MFA's previous assurances to the contrary, Czech firm
Aero Vodochody had successfully signed an MOU with
representatives of the Government of Venezuela for the lease
of nine L-39 aircraft for training purposes. Balek said the
MFA only learned about the deal when Aero Vodochody submitted
a request for a license.
2. (C/NF) Balek said the MFA will oppose the deal and deny
the license. Under normal circumstances, this would be
sufficient to prevent the deal from going forward. However,
Balek said that he has since learned Minister of Industry and
Trade Martin Riman personally supported the deal and attended
the MOU signing ceremony. Balek expressed concern that
Riman's support for the deal could overrule the MFA arms
licensing section's denial of the license request. He
strongly hinted that U.S. attention focused on the Ministry
of Industry and Trade might pay dividends in ensuring that
the deal does not go forward.
3. (C/NF) Balek believes this lease is part of a three-stage
business plan. The first stage would involve the leasing of
the L-39s, the second stage would involve the development of
a new aircraft without U.S. content, and the third stage
would involve transfer of the rights to produce the new
aircraft in Venezuela. Balek said the business plan is
consistent with information published in the local press in
fall 2006. He offered to provide more information as it
becomes available.
4. (C/NF) Balek noted that he believes the U.S. has leverage
over Aero Vodochody: namely, if the Venezuelan deal goes
forward, the U.S. can refuse to grant Aero Vodochody the
right to export equipment with U.S. content to other
countries with whom Aero Vodochody plans to conduct business,
such as Nigeria.
5. (C/NF) A meeting has been scheduled with Balek during the
week of April 23, and Post will report additional information
obtained at that meeting front channel. Based on that
information, Post will request language to be used in a
demarche to the Czech Government.
GRABER