WASHINGTON RESPONSE TO SERBIA MANPADS TRANSFER

S E C R E T STATE 008422 SIPDIS SIPDIS E.O. 12958: DECL: 12/31/2018 TAGS: MARR MASS PARM PREL PTER EG SR SUBJECT: WASHINGTON RESPONSE TO SERBIA MANPADS TRANSFER AND OFFER OF DESTRUCTION ASSISTANCE REF: A. BELGRADE 54 ¶B. 07 BELGRADE 1659 ¶C. 07 SECSTATE 162123 ¶D. 07 BELGRADE 1509 Classified By: ISN/CATR Director J. Christian Kessler. Reasons: 1.5 (b) and (d). ¶1. (U) This is an action request -- see para 5. -------------- SUMMARY -------------- ¶2. (C) Post is concerned that Serbia is not fulfilling its obligations to destroy man-portable air defense systems (MANPADS),as required by the 2005 bilateral agreement with the United States. In addition, the Serbian Minister of Defense (MOD) has now expressed an interest in transferring MANPADS to Egypt and seeks U.S. opinion on the transfer (REF A). Post requested a response from Washington on the possibility of sending a representative to begin discussing a possible follow on agreement for destruction and/or safekeeping of additional MANPADS. Post also asked for Washington's guidance on the MOD's request for a U.S. opinion on the potential transfer of missiles to Egypt. -------------- 2005 FOLLOW ON AGREEMENT -------------- ¶3. (S) Washington is prepared to send a MANPADS Senior Advisor to Belgrade to negotiate a new MANPADS technical arrangement that will offer incentives for the Serbians to work with us in securing the destruction of the 720 SA-7s remaining from the 2005 MANPADS Cooperative Assistance Agreement, and include significant incentives for destruction of remaining MANPADS stocks. These include application of UN standards, stockpile security upgrades to designated small arms and light weapons/MANPADS/Ammunition storage sites, an increased payment for a Government of Serbia (GOS) contractor to conduct destruction of MANPADS and financial incentives for each additional missile or component provided for destruction. It is essential that the Washington based MANPADS Senior Advisor meet with a GOS official who will be authorized to negotiate a new US/GOS technical arrangement. Department suggests that these negotiations occur as soon as practicable, preferably the week of February 4, 2008. -------------- -------------- WASHINGTON'S POSITION ON PROPOSED SERBIAN TRANSFER OF MANPADS TO EGYPT -------------- -------------- ¶4. (S) Washington has reviewed the notification from Serbia of the proposed transfer of 520 MANPADS to the government of Egypt (REF A). From our understanding, the purpose of this transfer is to assist with upgrading SA-7s for the exclusive use of the Egyptian Army. Egypt owns and operates this type of MANPADS; there is little evidence to indicate Egypt is planning to sell MANPADS or that countries are approaching Egypt to purchase MANPADS. In light of this review, we do not object to Serbia providing these components to Egypt. -------------- ACTION REQUEST -------------- ¶5. (S/REL SERBIA) Post is asked to approach appropriate GOS officials and inform them that a MANPADS Senior Advisor from the Department would like to come to Belgrade to negotiate a new MANPADS technical arrangement - one that would offer incentives for the destruction of the 720 SA-7s remaining from the 2005 MANPADS Cooperative Assistance Agreement, as well as additional incentives for destruction of remaining MANPDAS stocks. Post is also asked to provide the U.S. Government response to the proposed transfer of MANPADS to Egypt. Response should indicate that we do not object to the proposed transaction. Post may draw upon the following points: BEGIN TALKING POINTS: ********************* S/REL SERBIA -- We are hopeful that we can conclude the terms of the 2005 MANPADS Cooperative Assistance Agreement with you and discuss additional assistance the U.S. might provide in order to facilitate the destruction of remaining MANPADS stocks. For this reason, a Department's MANPADS Senior Advisor would like to come to Belgrade to coordinate final arrangements with respect to destruction of the 720 SA-7s from the 2005 MANPADS Cooperative Assistance Agreement, as well as the possibility of cooperation in securing the destruction of remaining MANPADS stocks and components. -- We look forward to your confirmation of the Department's MANPADS Senior Advisor visit for the first week of February 2008 if possible. If that timeframe is not convenient for you, we would appreciate your suggestion for an alternative time frame for such a visit. -- We have reviewed the information provided on the proposed transfer of 520 MANPADS to the Government of Egypt. We believe this transaction to be consistent with the needs of the Ministry of Defense of Egypt and support this sale. END OF TALKING POINTS. RICE