BULGARIA: FMF/IMET ESSENTIAL TO MODERNIZATION AND

C O N F I D E N T I A L SOFIA 000749 SIPDIS E.O. 12958: DECL: 11/20/2028 TAGS: PGOV PREL MARR BU SUBJECT: BULGARIA: FMF/IMET ESSENTIAL TO MODERNIZATION AND PARTICIPATION IN OVERSEAS DEPLOYMENTS Classified By: Ambassador McEldowney for reasons 1.4 (b) and (d) ¶1. (C) Summary: Bulgaria has the political will to increase its participation in overseas operations, but lacks resources and capacity. Last year's 33 percent reduction to its FMF budget was a dramatic and painful shock to the Bulgarian government. Despite being the poorest member of the European Union, Bulgaria is the fourth largest EU troop contributor in Iraq and has increased its troops in Afghanistan from 80 in 2006 to 470 today. We continue to ask Bulgaria to do more in Afghanistan and elsewhere, but with less U.S. assistance. Keeping FMF and IMET at current levels, or better yet with modest increases, will get us traction on new deployments and improve Bulgaria's ability to work and fight interoperably with us. Investing in the transformation of Bulgaria's military will not only help Bulgaria send more troops into the field, but it will lead to tighter NATO coordination and regional stability in Southeastern Europe, the Black Sea and Caucuses. A dollar of U.S. military assistance to the poorest NATO and EU member will deliver significantly more bang for the buck than elsewhere. End Summary. FMF ¶2. (U) Bulgaria received USD 9.625 million in FY 2007 and USD 6.584 million in FY 2008. (This sharp decrease in the FY08 allocation was 50 percent below our request). Bulgaria's FMF funds increase the readiness of the Bulgarian military to fulfill missions alongside the U.S. and other NATO allies in Iraq, Afghanistan, the Western Balkans and the Black Sea. Examples include the purchase of field equipment and tactical vehicles for deployed troops, and an integrated coastal surveillance system to enable information sharing between NATO allies. We have also provided support for an air sovereignty operations center that provides NATO with a more complete common operating picture in Bulgaria, as well as navigational aids to ensure that Bulgarian military airfields are accessible by NATO aircraft. ¶3. (U) Further reductions in FMF at precisely the time the Bulgarians are attempting to transform their military into a more deployable and interoperable force will delay this transition considerably and interfere with Bulgaria's ability to field additional Operational Mentor and Liaison Teams to Afghanistan as the U.S. and NATO have requested. Moreover, additional reductions would send an unhelpful political message to the Bulgarian ruling coalition. We continue to ask the poorest EU member to send more troops overseas while it faces extremely tight budgets and pressure to increase spending on domestic programs. IMET ¶4. (U) At our recommendation, Bulgaria's IMET budget increased from USD 1.434 million in FY 2007 to USD 1.618 million in FY 2008. For Bulgaria's military, in many cases still reliant on outdated Soviet logistics, tactics and doctrine, IMET is an invaluable tool for enhancing the capabilities and interoperability of its Armed Forces. We have been very successful in influencing top decision makers through this program. A majority of Deputy Ministers of Defense and service commanders have received training in the United States. Current and future training will focus on increasing interoperability and deployablity of Bulgarian forces so that a greater number of Bulgarian forces will be prepared to serve in NATO missions abroad, especially in Afghanistan. Resource management training and military procurement training are two other areas sorely in need of U.S. assistance. BEYOND FMF AND IMET: MILITARY TRANSFORMATION AND MODERNIZATION ¶5. (C) In 2006 Bulgaria signed a Defense Cooperation Agreement giving the United States access to Bulgarian bases for military training. Construction began this year on permanent base camp facilities on these sites. Under EUCOM's Joint Task Force-East, Bulgaria hosted the largest-ever U.S.-Bulgaria joint military training exercise this year. In the years ahead, we plan to significantly increase the size and frequency of our joint training, including air, land and naval exercises. This joint training is tremendously valuable. But it drains Bulgarian resources, which are often not sufficient to cover simple expenses such as fuel, transportation or ammunition. FMF and IMET funds are extremely valuable to the Bulgarians and help them to free up the funds necessary to participate with us in our expanding program of joint exercises. ¶6. (C) Apart from FMF, we are determined that Bulgaria transform its military and boost its NATO capabilities. Bulgaria is acquiring new multi-role fighters to upgrade its badly aging and Russian-dependent Air Force. While this transition will ultimately save money (its outdated MiG's are very expensive to maintain and the Bulgarians are routinely gouged by the Russians on replacement parts),in the short-term this will require a significant investment. We are working with the Bulgarians, the USAF and Lockheed Martin to determine the best possible cost structure, but it is not envisioned that FMF funds would be allocated to this purchase. As Bulgaria uses national funds for aircraft upgrades, FMF can be targeted to high priority capacity-building. ¶7. (C) In addition to FMF and IMET, we will also pursue other funding streams such as NADR and Section 1206. This year we utilized NADR funds to clean up the site of a massive explosion in a military munitions dump near Sofia. While the total dollar figure is modest (300,000 USD in FY08 and between 400,000 and 1,000,000 USD for FY09),our assistance has had a disproportionately larger impact in terms of public popularity and deep government appreciation. The Bulgarians are keenly aware of the monetary values of our programs, and even more so our political commitment. Our dependable assistance powers Bulgaria's consistent support for overseas operations in spite of costs and political risks. ¶8. (C) Comment: Bulgaria's contributions to overseas operations are constrained primarily by resources, not political will. We have not reached a ceiling, but we will soon, simply because of cost factors. Bulgaria has a military modernization plan in place and commits 2 percent of its GDP to defense, but the majority of this goes to maintenance and personnel costs. Bulgaria is hesitant to devote more resources to funding joint training and overseas operations when it badly needs investments in modernization. U.S. FMF and IMET support will advance Bulgaria's progress in areas of greatest strategic importance to us, interoperability and deployability in operations in Afghanistan, the Black Sea and the Western Balkans. McEldowney