(C) ENGAGING SERBIA ON MANPADS SALE AND DESTRUCTION

C O N F I D E N T I A L BELGRADE 000054 SIPDIS SIPDIS DEPARTMENT FOR PM/WRA -- MARK ADAMS DEPARTMENT FOR EUR/PRA -- LISA BENTHIEN E.O. 12958: DECL 01/10/2018 TAGS: MARR MASS PARM PTER PREL SR EG SUBJECT: (C) ENGAGING SERBIA ON MANPADS SALE AND DESTRUCTION REF: A) 07 BELGRADE 1659 B) 07 SECSTATE 162123 C) 07 BELGRADE 1509 Classified By: DCM Jennifer Brush, reasons 1.4 (B/D) ¶1. (U) This is an action request. Please see para 4. Summary -------------- ¶2. (C) Serbia continues to lag behind in fulfilling its obligations to destroy MANPADS, as per the 2005 bilateral agreement with the United States. The MOD has now expressed an interest in selling MANPADS to Egypt, and seeks U.S. opinion on the sale. With these two issues pending, Post believes it is an opportune time to renew our engagement with Serbia on this mutually beneficial military issue. End Summary. Serbia has not fulfilled contract obligations -------------- ¶3. (C) Despite the commitment by Assistant Minister for Defense Dusan Spasojevic in December 2007 (ref A) that the MOD would identify new man portable air defense systems(MANPADS) for destruction, Serbia has not yet fully complied with the terms of the 2005 bilateral agreement, which called for the destruction of 5,000 MANPADs from existing military stockpiles. As of December 13, 2007, Serbia had destroyed 4,280 missiles. As of January 8, 2008 no additional missiles had been identified and none were in the process of being destroyed. Serbia Seeking U.S. Opinion on sale of MANPADS -------------- - ¶4. (C) Serbia is ready to deliver 520 disassembled SA-7 MANPADS to Egypt and is holding up the deal until the United States gives Belgrade a green light. On December 12, 2007, Assistant Minister for Defense Ilija Pilopovic told the DAtt that Serbia was considering the sale to Egypt. Pilopovic said that the French firm Thales was cooperating with an Egyptian firm called Arab International Optronics and might have a 50% stake in the deal. Pilopovic would not provide the total cost of deal and suggested that the United States should ask Egypt. Pilopovic asked the DAtt if the United States could look into the possible sale for any irregularities. Serbia's Ministry of Defense would not go forward with the deal without U.S. approval or unless the GOS instructed the MOD to execute the deal, Pilopovic said. Comment and Action Request -------------- ¶5. (C) With these two separate, though possibly linked MANPADs issues pending, Post believes now would be an opportune time to further engage Serbia on MANPADs. Post requests that Washington send the appropriate working level official to Belgrade both to engage the Serbs on the need to fulfill the terms of the 2005 bilateral agreement and to discuss a possible follow on agreement for destruction or safekeeping of additional MANPADs. In addition, Post asks for Washington's guidance on the MODs request for a U.S. opinion on the potential sale of missiles to Egypt. Post would appreciate a quick response on these time sensitive issues. End Comment. MUNTER