READOUT OF AUGUST STRATEGIC COOPERATION

C O N F I D E N T I A L STATE 112655

SIPDIS

E.O. 12958: DECL: 10/22/2018
TAGS: PREL MARR MASS PL
SUBJECT: READOUT OF AUGUST STRATEGIC COOPERATION
CONSULTATIVE GROUP

Classified By: PM/RSAT DIRECTOR DAVID BAME FOR REASON 1.4(B)AND(D)


1. (C) SUMMARY: A/S Mark Kimmitt and DAS/D Dan Fata
co-chaired the fifth formal meeting of the bilateral
Strategic Cooperation Consultative Group (SCCG) in
Washington, DC on 26 August. Topics discussed included
updates on Polish LORs submitted in mid-August, the status of
SOFA negotiations, and agreement to move forward on a
DoD-funded study of Poland's C4ISR requirements. The first
meeting of the Integrated Air/Missile Defense Working Group
(IAMDWG),was convened, and issues related to a timeline for
delivery of Polish purchased Patriot missiles was discussed.
The finance working group discussed options the Poles to
pursue in financing the estimated $70 Billion price tag for
modernization. Finally, the possibility of a Reciprocal
Defense Procurement MOU was discussed. Polish MoD U/S
Komarowski left pleased with DoD assurances we were working
to expedite Polish Letters of Request for Pricing and
Availability (P&A) for communications and air defense
equipment. END SUMMARY


THE NEED FOR SPEED ON LETTERS OF REQUEST, SOFA


2. (C) GOP officials remained anxious for the completion of
the Pricing and Availability data for Letters of Request
(LORs) submitted in mid-August. OSD and DSCA representatives
promised to expedite those requests without undercutting
necessary steps. GOP officials also said they will be
submitting a second set of 16 additional LORs in September.
DSCA advised that LORs are worked in no specific order unless
a priority is specified. GOP officials said their priorities
for these LORs lay in the area of C4ISR, including
communications security and sensor equipment. DSCA also
advised that the intensity of workfor 16 LORs at one time
meant P&A data for all 16 cases might be provided within the
normal 45-60 day window.


3. (C) Update on SOFA Talks: U/S Komorowski made clear that
both the SOFA and BMDA will need to be submitted at the same
time in order for them to be ratified by the Polish
Parliament. SOFA talks would likely occur in Washington in
September. MFA and MoD both concerned that we have a
"serious" team, ready to go. Over lunch, MFA title Poznanski
and MoD J-5 BG Gocul noted the effective working relationship
between U.S. and Polish lawyers during final BMD rounds and
recalled the side-bar compromise that was accepted by
negotiators. They hoped the same could occur in SOFA
discussions.


4. (C) C4ISR Study: OSD renewed its July offer to undertake
and fund a C4ISR Study, which is key for communications
modernization. Polish J-5 BG Gocul accepted the proposal,
with some minor questions to be worked out in the coming
weeks. Estimated completion date of the study is February

2009. While the GOP initially expressed hesitation about the
study, they quickly agreed to it once they learned about its
methodology and that OSD would fund it.

WORKING GROUP REPORTS


5. (C) Integrated Air/Missile Defense Working Group (IAMDWG):
The IAMDWG began with a well-received briefing on the Patriot
system's capabilities. SCCG principals agreed that the
IAMDWG would take the lead on the 2012 Patriot battery
deployment. The IAMDWG spent most of its time on Polish
Letters of Request (LORs) for Pricing and Availability (P&A)
on Patriot. OSD made clear that the USG would do everything
possible to expedite Pricing and Availability preparation for
the original six LORs -- which will include necessary defense
trade reviews -- n the next 60 days. The Patriot LOR would
likely require extra time. In order to ensure full
understanding of GOP requirements and to help expedite data
preparation, OSD Director and U.S. IAMDWG chair Todd Harvey
offered a visit by U.S. Army representatives to Warsaw to
resolve any outstanding technical questions. DSCA made clear
that the next IADMWG meeting to present P&A data could take
several days of expert level discussion. Once P&A data was
available, both
sides would look to presentation of the data to the IAMDWG
around the end of October. After that, the GOP would submit
Letters of Request (LORs) to purchase the items and systems.
DSCA emphasized that the LORs must identify a funding source.
Once an LOR is received, DSCA briefed that it typically
takes 120 days to prepare an FMS case. Once an FMS case is
offered, Poland would have about 60 days to accept the case.
Once the case is signed and implemented, contracting and
production lead-times determine how quickly the
assets/systems can be provided. For Patriot, the estimated
production lead-time is 40 months from contract award.
Taking lead-times and the Congressional calendar into
account, 2013 is likely the earliest Poland could receive
Patriot. GOP officials asked for more information in the
coming weeks on potential ways to expedite the process.


9. (C) Finance Working Group (FWG): GOP officials reiterated
the priority they placed on these issues in light of the
estimated $70B price tag for modernization over next 10
years. U.S. FWG lead David Bame reiterated previous USG-GOP
public and private agreement that Poland must pay for most of
its military modernization costs, but GOP officials also
asked about potential increases in FMF and other USG security
assistance. Bame reiterated U.S. commitment to current
assistance levels and to "substantial" future assistance, as
described in the August 20 Declaration on Strategic
Cooperation, but also noted the role of the next
Administration/Congress . Four funding options were
discussed: 1)Polish national funds from GOP defense budget;
2) Foreign Military Financing; 3) Commercial loans; 4) Direct
loans. The Poles noted they would require significant FMF
support, and inquired about the possibility of leasing--U.S.
would buy, then lease to Poles. USG officials made clear
that the USG cannot lease new syst
ems; only items no longer needed for USG inventory. USG
officials again reiterated commitments to support
modernization, but noted the slim possibilities of any
increase in FMF in 2008 and reaffirmed that Polish national
funds will have to provide the bulk of modernization costs.


10. (C) Interim Patriot Deployments: The U.S. agreed to send
a EUCOM team to look at more details for a rotational Patriot
deployment. The Poles expressed urgency to arrive at
implementing agreements, while agreeing that the arrangements
will be governed by a supplemental SOFA. Komarowski
expressed interest in how the Patriot battery would reinforce
Polish air defense, leading to a discussion regarding the
mission of Patriot battery. Komorowski made clear that the
mission should be to increase the security of Poland. A/S
Kimmitt agreed, but said technical and other details would
need to be addressed by the EUCOM team and other experts.

Reciprocal Defense Procurement (RDP) MOU: 11. (C) SAF/IA's
Grace Washburn described how an RDP MOU would establish a
special procurement relationship between Poland and the
United States. The U.S. has 21 RDPs, with the most recent
negotiated with Australia in 1995. Once the MOU is in place,
customs and duties are waived; making the partner country a
more viable partner for defense trade. In the case of
Poland, this arrangement would apply to its supplies of
specialty metals. GOP officials agreed to pursue obtaining
authority to negotiate the MOU, and acknowledged that a
requirement of the RDP MOU is that deals under it must be
attractive to U.S. industry.


LOOKING AHEAD.


12. (C) Future of SCCG, HDLG, and Strategic Dialogue:
Kimmitt, Fata and Komorowski agreed that these three channels
for cooperation required careful attention so as to avoid
duplication. Both sides discussed options, including
possibly folding the SCCG into the Strategic Dialogue while
keeping HLDG on a separate track. MFA DG Poznanski said he
would talk to America desk and other MFA colleagues about how
these issues related to the next meeting of the bilateral
Strategic Dialogue. Komarowski initially suggested a SCCG
meeting in October to encourage further progress and expedite
work on the P&A data. He also suggested review of how the
"evolving threat" involving Russiaaffected Poland's security
interests. A/S Kimmitt thought October might be too soon
in light of the five key areas of discussion at this SCCG:
(fill in). He proposed holding the next meeting in November,
while both sides strongly encouraged working level groups to
meet sooner. Komorowski indicated that former Polish
Ambassador to th
e U.S. Przemyslaw Grudzinski will replace U/S Witold
Waszczykowski as the new MFA U/S for Security Affairs.
Komorowski said U/S Grudzinski would chair the next SCCG
meeting, but Komorowski would also attend.
RICE