MISSILE DEFENSE: CZECH MOD'S NONPAPER ON THE U.S.

C O N F I D E N T I A L SECTION 01 OF 02 PRAGUE 000527 SIPDIS STATE FOR T, EUR/FO, EUR/CE E.O. 12958: DECL: 08/06/2018 TAGS: EZ MARR PGOV PREL SUBJECT: MISSILE DEFENSE: CZECH MOD'S NONPAPER ON THE U.S. INCENTIVES PROPOSAL REF: A. STATE 78874 ¶B. PRAGUE 471 Classified By: CDA MARY THOMPSON-JONES FOR REASONS 1.4 (B) AND (D). ¶1. (C) On August 6, Czech SOFA Negotiator Ivan Dvorak called the Defense Attache and informed him that MOD would deliver a written response to the proposal Ambassador Graber presented to Czech DPM Alexandr Vondra on July 23 (refs A and B). Para 2 contains the text of the Czech MOD's nonpaper that was subsequently delivered to the Embassy, which includes a classification of "confidential." The Czech government has not provided any further information, and paragraph 2 of the Czech nonpaper indicates that the Czech government has not yet made a decision on the SOFA tax text. ¶2. (C) Begin text of Czech MOD nonpaper: (1) The Czech authorities express their appreciation for the efforts of the United States to bring the negotiations on the Bilateral SOFA agreement to an early conclusion. The provided proposal of the United States is therefore welcomed and the Czech authorities are prepared to discuss its contents. (2) In this respect it is necessary to stress the fact that the competent Czech authorities have not made as so far the decision to accept the US text concerning taxation issues regarding US contractors and contractor employees' activities related to the construction and operation of the Radar site in the Czech Republic. (3) In respect to the suggested proposals the Czech authorities are of the following opinion: In order to facilitate the discussion on the acceptance of the US proposal the Czech authorities are of the view that the suggested support should be streamlined through a combination of short term and long term assistance measures, ranging through the period of 2009 onwards, during the time of the construction and also of the operation of the Radar site. (4) The Czech authorities highly appreciate the suggested financial support to cover actual costs for Czech operational deployments in Afghanistan in 2009. In respect to the above mentioned (para 4),the Czech authorities would ask the US to consider that the already proposed support would be extended by: -- covering the incurred costs not only for the period of 2009, but also further in time, at least for the duration of the operation of the Czech PRT in the Loghar province and during the operational engagement of Czech troops in OEF; -- that the support in incurring costs for strategic lift would be extended beyond the 2009 timeframe at least until 2012 for all operational deployments of the Czech Armed Forces in Afghanistan; -- That the support for the Czech Mi-17 helicopter deployment be extended in a form of establishing a helicopter logistic base, which could be used not only for the maintenance of the Czech helicopters deployed in the operation but for all Mi-17 / Mi-171 type helicopters operating in theatre. For operating such a logistic base the Czech Republic is ready to provide respective expertise; (5) The Czech authorities highly appreciate the US offer for the donation of two KC-130Rs as this comes in time, when the Czech MOD is assessing the ways to replace the ageing medium transport aircraft in its inventory. In respect to the above mentioned offer of the United States to donate two KC-130Rs the Czech authorities are thoroughly assessing the proposal, especially in respect to costs which might be related to sustaining the aircraft in its remaining life cycle. In order to facilitate the decision making process on accepting this proposal the Czech authorities would ask the United States to provide more detailed information about technical parameters of the aircraft, including equipment for protection of the aircraft, navigation means, responders and more detailed calculations on expected costs for sustaining the aircraft. (6) Together with that the US authorities are kindly asked to consider: -- Reconfiguring the current tanker version into a transport version and incurring the related costs of this reconfiguration; PRAGUE 00000527 002 OF 002 -- The possibility to entirely/or partly co-finance the related costs for training of air and ground personnel; -- The possibility to explore ways on possible co-financing of the operational costs of the aircraft and minimizing operational costs for the Czech Armed Forces. (Note: As the Czech Armed Forces would probably in the future operate two transport aircraft types, the associated sustainment costs would probably extend the resource possibilities of the Czech Air Force to support two types of transport aircraft) (7) In respect to the above mentioned (para 4) the Czech authorities would ask the United States to consider the possibility to increase in principle the number of Czech participants in US DOD educational and training facilities by 100% in the next ten years; (8) In respect to the ongoing parallel discussions in establishing legal frameworks in order to extend the US - Czech relations through the US - Czech Strategic Partnership the United States are requested to expedite the processes in order to conclude the respective agreements, MOU's etc. as soon as possible (including the Defence Procurement Agreement) (9) The Czech Authorities stress that they are ready to discuss the US proposals in an expeditious manner and they are ready to discuss these with the appropriate US authorities in Prague starting August 11, 2008. (10) Reactions to the Czech response on the US non paper and other related considerations should be brought back to the attention of Czech authorities (MOD) not later than August 15, 2008. End text. Thompson-Jones