REPORT OF SENIOR RESOURCE BOARD PLENARY MEETING

C O N F I D E N T I A L USNATO 000272

SIPDIS

SIPDIS

STATE FOR EUR-RPM (MONAHAN);
DEFENSE FOR OASD/ISA (EURO-NATO); USDAT&L/DUSD-IE (VAUGHT);
OASD/NII (HANSEN);
EUCOM FOR J4-EN ENGINEER DIV (MC) (CAPT JACKSON);
CENTCOM-J4-E (COL FLANAGAN);
JOINT STAFF-J-4 (MR. MACKIE) J-5 (LTC SEAMON)

E.O. 12958: DECL: 01/01/2011
TAGS: AORC MARR NATO
SUBJECT: REPORT OF SENIOR RESOURCE BOARD PLENARY MEETING
APR 19 & 20, 2007

REF: A. USNATO 00250 DTG 161144Z APR 07


B. USNATO 00247 DTG 131434Z APR 07

C. SECSTATE 53585 DTG 231347Z APR 07

D. PO(2005)0098

E. IMSTAM(L&R)-0020-2007

F. SECSTATE 53584 DTG 231347Z APR 07

Classified By: D/DEFAD CLARENCE JUHL. REASON 1.4.(B/D)


1. (U) SUMMARY: The Senior Resource Board (SRB),meeting on
April 19 and 20, elected a new chairman of the Board and
agreed on plans of action for a variety of NATO programs.
The following topics were considered and discussed: logistics
information system Capability Package (CP),the Afghanistan
and Kosovo operations' resource issues, Missile Defense
affordability assessment, NATO assistance to humanitarian
operations' funding arrangements, NATO Command Structure
Peacetime Establishment (PE) Review, short notice NATO
Response Force (NRF),deployment financial arrangements,
operations common funding expanded eligibility impact
assessment, air command and control system (ACCS)
implementation, burdensharing for economic benefits to
nations, and the 2008 to 2012 medium term resource plan
(MTRP). The Board received status reports on the resource
aspects of the current operations in Afghanistan, Iraq, the
Balkans, the Mediterranean, and Sudan. The Board also
received briefings on the ongoing NATO resource reform
activities. The Board, in joint session with the Advisory
Group of Financial Counsellors (AGFC),selected a new
chairman of the military and civil budget committees. END
SUMMARY.


2. (C) Details of the SRB deliberations follows:

RESOURCE PLANNING AND POLICY ISSUES

ITEM I. CRISIS RESPONSE OPERATIONS (CROs) AND MISSIONS
RESOURCE UPDATES.


A. International Security Assistance Force (ISAF):
Allied Command Operations (ACO) briefed the Board on the
status of their ongoing Spring Campaign to counter
insurgents. The International Military Staff (IMS) reported
that three nations broke silence in the Military Committee
(MC) on the revised document outlining the Minimum Military
Requirement (MMR) for the proposed Intelligence,
Surveillance, and Reconnaissance (ISR) full motion video
capability, requesting additional costing information, a
comparative analysis of the outsourcing required, and asking
that a priority be placed on obtaining the capability through
force generation. The MC is now considering a third draft of
the MMR under silence, expiring May 2. The Board agreed to
consider outsourcing of the ISR upon MC endorsement of the
MMR.

ACO also outlined the requirements for accommodation of 2,300
non-crisis establishment (CE) personnel at Kandahar airfield,
including 1300 contractor personnel, at an estimated cost of
50 MEURO per year. ACO also mentioned that the US has yet to
respond to NATO's request as to whether the US-constructed
infrastructure at Kandahar will be turned over to NATO.
Since the infrastructure is required by June 2007, NAMSA will
proceed with the award of the more costly support contract
options, assuming the non-availability of US infrastructure.
MISSION COMMENT: NATO requested a decision on the
availability of Kandahar infrastructure in Fall 2006.
Mission requests Washington agencies to expedite assessment
of infrastructure availability. Should a decision be taken
to turn over infrastructure to NATO, Mission recommends
requesting reimbursement of residual value. END MISSION
COMMENT. A joint International Staff (IS)/IMS report on
ACO's request of non-CE personnel accommodations at Kandahar
will be submitted to the Board and the MC for consideration.

The Infrastructure Committee (IC) Chairman reported that
authorizations to date are 416.7 MEURO, and expenditures for
2007 are likely to exceed the early projections of between

125 and 150 MEURO due to the apparent non-availability of US
facilities at Kandahar and other emerging requirements. The
Military Budget Committee (MBC) Chairman reported that the
MBC will base their supplementary 2007 budget funding
recommendation on the screening of revised ISAF budget which
ACO is scheduled to submit in early May. The MBC agreed to
carry forward 19.8 MEURO in 2006 credits to help offset any
supplementary budget requested funds.


B. BALKANS: SHAPE reported that revision 2 to OPLAN
10501 and the European Union/NATO technical arrangements
which will outline the transition arrangements for the post
Kosovo settlement are under development. The aerial image
capability contracts for the US and NATO will expire June 30,
2007, and new contracts should be put in place to ensure
continued coverage for the ongoing operation. ACO noted that
the ground support for the US contract is eligible for NATO
common funding. ACO also reported on the audit of the KFOR
Camp Nothing Hill construction that commenced prior to IC
project authorization. The audit concluded that the costs
were efficiently expended and that the MMR was not exceeded;
however, KFOR, assuming an implied NAC approval of the
project from the 2006 NAC site visit, had proceeded without
proper authorization. At Germany's insistance, ACO will
provide a detailed audit report for the nations'
consideration.


C. NATO TRAINING MISSION IRAQ (NTM-I): ACO reported
that JFC Naples submitted the long-term resource development
plan (LTRDP) this week, and ACO will conduct a review and
submit it to NATO Headquarters in early May. The Board
agreed to address the LTRDP in a future preparatory session.
ACO also reported that the MBC approved the contract
extension for security of the NATO encampment within Ar
Rustamiyah, through the end of 2007 and that the gendarmerie
training is scheduled to commence on September 1, 2007,
assuming NAC approval of the additional training by end of
June.

The IS reported that 27 nations (including Switzerland) had
pledged trust fund contributions that fully covered the 2007
requirements. The total estimated costs for NTM-I trust fund
training from 2005 through the end of 2007 is 8.0 MEURO
(excluding gendarmerie training); 12.7 MEURO has been pledged
to date, leaving a surplus of 4.7 MEURO for gendarmerie
training and other 2008 requirements. The Board noted the
update.


D. NATO LOGISTICAL SUPPORT TO THE AFRICAN UNION (AU)
MISSION IN SUDAN (AMIS). ACO reported that spring rotation
is underway with three Battalions complete, one underway, and
six scheduled during May and early June, including the U.S.
rotation of the three Rwandan Battalions from the previous
fall deployment. The Board noted the update.


E. OPERATION ACTIVE ENDEAVOR (OAE): ACO reported
nothing significant had occurred on OAE since the February
update.

ITEM II. REPORTING ISSUES WITH CURRENT AND FUTURE RESOURCE
IMPLICATIONS.


A. Short Notice Deployment of the NRF. The MC working
group for logistics will meet on May 3 to consider the
Strategic Commands' proposed definition of short notice
deployment and their recommendation for air and sealift
ratios for the deployments. Upon concluding their work, the
MC will forward a report via the NAC to the SRB for
consideration of the funding arrangements. The Board tasked
the IS to prepare a paper on proposed funding arrangements
upon receipt of the MC input for consideration at a May
preparatory session.


B. Funding Implications of NATO participation in
Humanitarian Operations. The Board agreed to consider the IS
non-paper of March 22 at an early preparatory session (Ref D).



C. Interim Evaluation of the revised funding policy for
non-article V operations. The IMS reported that on January
30, the MC received ACO's analysis of the impact of the
revised funding arrangements on force generation, noting that
ACO insisted that it is premature to make such an evaluation.
The MC interim report to the NAC concludes that there are no
improvements to force generation since agreement to the new
funding policy, and recommends to reevaluate after the
November 30, 2007, global force generation conference. The
Board agreed to consider the MC report at an early
preparatory session with a goal of revising the SRB report to
the NAC.


D. NATO Command Structure (NCS) Peacetime Establishment
Review. On April 4, two nations broke silence and three
provided comments to the latest proposal on the command
structure, citing issues with the number of component
commands, the deployable staff elements, and the acceptable
manpower ceiling. The MC will meet and develop a way ahead.
The SRB joint session with the Executive Working Group (EWG)
scheduled for April 23 was postponed pending the MC input.
The Board agreed to hold informal discussion on the issue.


E. Broader Burdensharing Discussions. The Chairman
updated the Board on the status of the informal discussions
on how to evaluate the economic benefit to host nations
derived from capital investment and hosting NATO
Headquarters. The Board agreed to continue informal
discussions.


F. Missile Defense Feasibility Study. The Board tasked
the IS to provide more detailed cost information on three
options: common funding limited to battlefield management,
command, control, communications and information (BMC3I);
common funding limited to BMC3I and sensors; and full common
funding. The Board, noting the requirement to provide a
resource assessment at the June 2007 Ministerial, agreed to
consider the affordability and funding options at an early
preparatory session upon receipt of the IS input.


G. ACCS Implementation. The IS reported that 1.7
billion EURO is programed for NSIP investment to support the
ACCS; however, the program is currently three years behind
schedule. The first increment of the system software and the
equipment for the deployable Air Control Picture Recognized
Air Picture Sensor Fusion Post (ARS),which generates the
real time air picture, were delivered at the end of 2006 and
deemed acceptable. Not included in the current programming
are 100 MEURO for required software upgrades and the
operational sites in the seven new member nations. The IS
anticipates that the ACCS contractor will eventually deliver
a working system but the final cost and the time of delivery
remain a concern. The Board noted the updates.

ITEM III. NATO HEADQUARTERS RESOURCE REFORM. Mr. Peltier
(US),Director of the NATO Office of Resources (NOR)
designate, updated the Board on establishing the NOR. Office
relocations to collocate the Resource Committee Chairman and
the Director of the NOR are underway. The initial operating
capability of the NOR is scheduled for May 1, 2007. The SRB
Chair and the Director NOR will subsequently visit the
strategic commands. The Board noted the update.

ACO briefed the Board on their proposal of establishing a
Capabilites Management Division (CMD) within SHAPE for a
six-month trial period. The CMD will consolidate 32
personnel from J4, J5, J6, J8, the Strategic Planning Office,
the Resource Integration Team, and the ACT and NC3A liaisons
into one division responsible for delivering and managing
capabilities for Crisis Response Operations and strategic
capabilities. The Board noted the information.

ITEM IV. 2008-2012 MEDIUM TERM RESOURCE PLAN (MTRP). The IMS
reported that the MC had been unable to finalize a
consolidation of the NMA impact statements for the 2008-2012
MTRP prior to the plenary meeting and thus had issued an
interim report to the SRB on April 17 (ref E). The MC will



now seek formal comments from the nations on the draft
consolidated impact statements. The MBC Chairman updated the
Board on the status of the MTFP discussions. ACO reduced the
ISAF funding requirements by 74.4 MEURO to 280.7 MEURO due to
implementation schedules, more accurate estimates, and by
moving the participation of the strategic airlift capability
(41.5 MEURO) into a separate CRO category. ACO advised that
additional ISAF requirements continue to emerge and thus the
budget request was likely to increase. The Board noted the
update and agreed to hold discussion in a preparatory session
upon receipt of the NMAs consolidated impact statement and
the MTFP.

ALLOCATION OF RESOURCES CAPABILITY PACKAGE AND STAND-ALONE
PROJECTS.

ITEM V.A. I.S./IMS CAPABILITY PACKAGE OVERVIEW.

The IMS briefed the status of new CPs. At nations' request
in the MC, the SCs will validate the projects in revised
Logistics Replenishment and Supply CP against the Defense
Requirements Review 2007. Four CPs are under joint staff
screening to include: the New Member Nations' NATO Interim
Air Defense Systems (NATINADS),Deployable Ground Based
Sensors, Electronic Warfare, and the Southern Region Bulk
Fuel Assets. The IMS noted that nations deferred
consideration of the four ACO headquarters CPs, pending the
outcome of the PE review. The Vital Security Projects for
NATO Command Forces, addressing urgent life safety and
security requirements for the headquarters had been submitted
to the nations for initial comments and is expected to be
submitted to NATO headquarters in late May. Eight CPs are
expected to be submitted by June 2007 to include: Maritime
Shore-Based Communications, Air Transport, Nothern Region
Bulk Fuel Assets, Offensive and Defensive Air Assets, Initial
Satellite Broadcast Services, and Command and Control
Services for Operations.

The IS also reported that 18 CPs were no longer needed and
had been deleted by the MC and the overall NSIP
authorizations for Alliance Operations have exceeded 1
billion EURO. The Board noted the updates.

The IS proposed to establish an inter-staff working group to
develop a NATO bulk fuel strategy and a medium to long term
action plan which would serve as the basis for future
investments in and the operation of the NATO bulk fuel
system.

ITEM V.B. BI-SC CAPABILITY PACKAGE 9C0103 PROVIDE FUNCTIONAL
SERVICES FOR LOGISTICS COMMAND AND CONTROL. The IMS reported
that The Netherlands extended the silence period for
consideration of CP endorsement in the MC until May 2.
France advised of their intent to participate in the CP, thus
it will be funded by 26 nations. No nation raised any
concerns regarding the CP and the Board agreed to consider
endorsement of the CP under a short silence period upon MC
endorsement.


3. SRB CHAIRMAN ELECTION. On April 20, the Board held
elections for the new Chairman of the Board. Initially the
Greek candidate was eliminated and ultimately, the Spanish
candidate won the election over The Netherlands candidate
with a vote of 18 to 8. All nations agreed to the Spanish
candidate, Mr. Alviro Pino Salas, as the new chairman
effective August 1, 2007.


4. MBC/CBC CHAIRMAN ELECTION. The Board met in joint
session with the AGFC to elect a new dual-hatted chairman of
the MBC and CBC. Initially, the French candidate was
eliminated, followed by the Turkish candidate. In the final
round, the Norwegian and the Czech candidates tied with 13
votes each. The Co-Chairs proposed to follow the procedure
adopted by the NAC in 1993 when a similar situation occurred.
The Norwegian and the Czech candidates will each serve as
Chairman for a two year-period. The Chairmen of the AGFC and
SRB will submit this proposal to the nations for

consideration under a silence period expiring in two weeks.
We expect that the Norwegian, Mr. Erling Wang, will serve
first.

OLSON