Identifier
Created
Classification
Origin
08COLOMBO1062
2008-11-26 04:55:00
CONFIDENTIAL
Embassy Colombo
Cable title:  

GUIDANCE NEEDED ON 699(G) RESTRICTIONS APPLIED TO

Tags:  PREL ECON SMIG KTIP ELAB CE 
pdf how-to read a cable
VZCZCXYZ0181
PP RUEHWEB

DE RUEHLM #1062 3310455
ZNY CCCCC ZZH
P 260455Z NOV 08
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC PRIORITY 8959
INFO RUEHKU/AMEMBASSY KUWAIT 0491
RHHMUNA/HQ USPACOM HONOLULU HI
RHEFDIA/DIA WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
C O N F I D E N T I A L COLOMBO 001062 

SIPDIS

DEPARTMENT FOR SCA/INS, SCA/RA, PM/DTTC (S GEIS),DRL, AND L

E.O. 12958: DECL: 11/25/2018
TAGS: PREL ECON SMIG KTIP ELAB CE
SUBJECT: GUIDANCE NEEDED ON 699(G) RESTRICTIONS APPLIED TO
SRI LANKAN EMPLOYEES

Classified By: Classified by Ambassador Robert O. Blake, Jr. Reasons: 1
.4 (b,d)

C O N F I D E N T I A L COLOMBO 001062

SIPDIS

DEPARTMENT FOR SCA/INS, SCA/RA, PM/DTTC (S GEIS),DRL, AND L

E.O. 12958: DECL: 11/25/2018
TAGS: PREL ECON SMIG KTIP ELAB CE
SUBJECT: GUIDANCE NEEDED ON 699(G) RESTRICTIONS APPLIED TO
SRI LANKAN EMPLOYEES

Classified By: Classified by Ambassador Robert O. Blake, Jr. Reasons: 1
.4 (b,d)


1. (C) In a meeting with Ambassador on November 25, Foreign
Minister Bogollagama informed post that two U.S. defense
contractors, a Kuwaiti company affiliated with the U.S.-based
Oshkosh Corp and DynCorp International, had instituted hiring
restrictions on Sri Lankan expatriate workers in Kuwait and
throughout the Middle East. In addition, some of the up to
700 Sri Lankan nationals currently employed by both companies
have been suspended or demoted to comply with the new
regulations. Bogollagama passed us copies of a DynCorp trade
compliance newsletter that cited "Directorate of Defense
Trade Controls (Our ITAR friends)" (22 CFR 126.1) as stating,
"It is the policy of the United States to deny licenses and
other approvals for exports and imports of defense articles
and defense services, destined for or originating in certain
countries." (Note: This ITAR was issued in March 2008
following the inclusion of section 699G in the 2008 Foreign
Operations Appropriations legislation. End note.) The
newsletter continued, "To put this statement into context,
exports and defense services include the transfer of
technical knowledge, providing training to and employment of
nationals of the above countries... (The) Trade Compliance
group is working with the Dept of State to clarify how we
should proceed but for the time being, NO NEW hires of Sri
Lankan nationals is currently authorized. (DynCorp)
recruiting and recruiting brokers can no longer recruit or
submit for hire Sri Lankan nationals."


2. (C) The Minister said DynCorp and other companies in the
Gulf appear to be interpreting restrictions to include a
prohibition on hiring Sri Lankan nationals. The Foreign
Minister pointed out in the meeting and in an Aide-Memoire
(copy e-mailed to SCA/INS) the paragraph outlining defense
sales restrictions for Sri Lanka (126.1 (n)) makes no
specific mention of employment of Sri Lankan nationals. It
states, "It is the policy of the United States to deny
licenses and other approvals to export or otherwise transfer
defense articles and services to Sri Lanka except, on a
case-by-case basis, for technical data or equipment made
available for the limited purposes of maritime and air
surveillance and communication." (Note: Section 699G(a)
states that "no military...technology shall be sold or
transferred to Sri Lanka.") The Minister said such employees
represent an important source of remittances for Sri Lanka
and urged that the U.S. clarify out policy to allow Sri
Lankans to work for U.S. defense contractors.


3. (SBU) Action Request: Post seeks guidance on whether the
definition of "Sri Lanka" in 699(g) includes Sri Lankans
citizens working overseas, and would thereby prohibit Sri
Lankan nationals from employment with defense contractors.
If it does not, we urge that a clarification of the
restrictions be communicated to DynCorp and Oshkosh as well
as other companies in the sector who operate in the Middle
East.
Blake