FSC JUNE 25: LITTLE CONTROVERSY IN PRIVATE

UNCLAS SECTION 01 OF 05 USOSCE 000166

SENSITIVE
SIPDIS

STATE FOR VCI/CCA, VCI/NRRC, EUR/RPM, EUR/PRA, EUR/CARC,
SCA/CEN, SCA/RA, PM/WRA
JCS FOR J5
OSD FOR ISA (PERENYI)
NSC FOR DOWLEY
USUN FOR LEGAL, POL
CENTCOM FOR CCJ5-C, POLAD
UNVIE FOR AC
GENEVA FOR CD

E.O. 12958: N/A
TAGS: PARM PREL OSCE KCFE MCAP MOPS XG
SUBJECT: FSC JUNE 25: LITTLE CONTROVERSY IN PRIVATE
MILITARY COMPANIES SECURITY DIALOGUE


1. (SBU) Summary: Austrian Brigadier Feichtinger described
the increasing importance of private military/security
companies as a "worrisome development" that challenges the
democratic control of the armed forces and the state's
monopoly on the legitimate use of violence. The U.S., in
response, noted recent U.S. initiatives to enhance the
discipline and accountability of contractor personnel in war
zones. The FSC adopted a decision endorsing for publication
Best Practices Guides on the destruction and physical
security of stockpiles of conventional ammunition.


2. (SBU) In the working groups, discussion continued on the
draft decision on updating the OSCE conventional arms
transfers reporting categories, although there was no
objection to the latest version's deletion of both automatic
updates and the provision of information to the UN on arms
transfers with non-participating States. Several delegations
endorsed the Belarusian proposal for an information exchange
and Conflict Prevention Center analysis on end-user
certificates. After discussion of the latest version of the
Franco-Belgian proposal for an information exchange and "Best
Practices" on transfer of small arms and light weapons by air
the chair announced she would reissue the paper as a draft
decision. The proposed update of the Code of Conduct
Questionnaire was partially redrafted and another version
will soon be issued. End summary.

Security Dialogue: Private Military Companies
--------------


3. (SBU) Brigadier Walter Feichtinger of the Austrian Defense
Forces Academy described the growing role of private military
or security companies (PMCs) as a "worrisome development."
Feichtinger said he was not describing the private security
guard at the front door to the Hofburg, but for-profit
enterprises that function "like military units" and undertake
"external missions." These contractors perform military
missions like piloting UAVs, collecting intelligence,
providing force protection, detaining and interrogating
prisoners, and escorting convoys. Feichtinger asserted there
were 20,000 to 40,000 military contractors "wearing weapons"
in Iraq, out of as many as 180,000 contractors. Their
services, he said, cost almost 150 billion dollars a year.

PMCs Appeal to "Post-Heroic Age"
--------------


4. (SBU) Feichtinger ascribed the growth of PMCs to the
simultaneous draw-down of regular forces after the Cold War
and the explosion in the number of crisis management
missions. In a "post-heroic age," he posited, electorates do
not want to see body bags. Instead, some of these new
missions have been given to PMCs, which are not of great
interest to the media or the larger population. He cited the
"little-noted" 1,000 "private soldiers," killed in Iraq
during the same time that the U.S. lost 4,000 of its regular
forces.


5. (SBU) The long-term commitments required by post-Cold War
conflicts such as Sudan/Darfur will increasingly be met by
reliance on PMCs, he concluded, citing the recent example of
the EU police mission to Afghanistan that required 500 police
officers but got only 50 and filled the balance with PMC
contractors. PMCs help fill gaps, Feichtinger explained, and
improve capabilities, accelerate response times, and may even

USOSCE 00000166 002 OF 005


be more economical than regular forces, although on the last
he was skeptical as there was still insufficient evidence.
Could PMCs Threaten Democratic Control of Armed Forces?
-------------- --------------


6. (SBU) Feichtinger said the challenge for states is
retaining effective control over the use of force. This
means ensuring PMCs uphold international humanitarian law.
States need to investigate and prosecute violations of these
laws, as well as ordinary crimes, wherever PMCs operate.
Regular armed forces need to establish command and control
over PMCs to avoid friendly fire incidents.


7. (SBU) Feichtinger fears that growing reliance on PMCs in
the absence of sufficient controls may threaten established
principles of democratic control over armed forces and the
state's monopoly over the legitimate use of force. PMCs, if
they become too powerful, may improperly influence foreign
policymaking, even operate at cross-purposes to their nominal
masters in a government. Feichtinger speculated a PMC could
be tempted to prolong a conflict in order to increase its
earnings.

Montreux Conference
--------------


8. (SBU) Feichtinger said the OSCE and other international
organizations could play an important role in setting
international standards for PMCs. National legislation was
not enough. He described the ongoing work of experts from
several countries, including the U.S., on establishing norms
for PMCs.


9. (SBU) Switzerland (von Arx) said it was co-hosting, with
the International Committee of the Red Cross, the work of the
experts, who will meet again September 15-17 in Montreux. A
report, focused on legal issues, will be prepared at the
meeting and will be made available to the OSCE.

U.S. Responses to Contractors in War Zone
--------------


10. (SBU) The U.S. (Neighbor) concurred that the topic was
timely, noting that the U.S. Department of Defense reported
to Congress in April 2008 that it had some 163,000 persons
working for contractors in Iraq, of whom about 10,000 were
with private security firms. Neighbour reported on U.S.
efforts to ensure the accountability and discipline of
contractors, including the Military Extraterritorial
Jurisdiction Act and the extension of Uniform Code of
Military Justice jurisdiction to defense contractors in Iraq.
Feichtinger later said, in response to a question from
Spain, that the U.S. had decreed its contractors were immune
from Iraq's criminal law.


11. (SBU) Germany (Kantorczyk) noted with approval that this
was the first discussion of PMCs at the OSCE. Germany did
not want PMCs to perform "core" military tasks as this would
erode the state's monopoly on the use of force. Germany had
great expectations for the results of the Montreux
conference. Feichtinger agreed that core tasks should not be
delegated, but said there was "creeping" engagement by PMCs
in these areas, e.g., shooting at the enemy and piloting
military aircraft.


USOSCE 00000166 003 OF 005


Ammunition Best Practices Guides
--------------


12. (SBU) The Forum adopted without discussion the decision
to endorse the Best Practices Guides on the destruction and
physical security of stockpiles of conventional ammunition
(FSC.DEC/7/08).

Chair's Response to CiO on April 20 UAV Incident
-------------- ---


13. (SBU) Estonia, the chair, announced it would distribute a
draft of its response to the CiO on the April 20 UAV incident
in Georgia (FSC.DEL/115/08). Parts noted her response was
not a consensus document. Her intent is to submit it before
the Annual Security Review Conference, July 1-2.

Conventional Arms Transfers
--------------


14. (SBU) Germany (Schweizer) explained that the revised
version of the draft decision to update the OSCE conventional
arms transfer reporting categories included bracketed
language in operative paragraph (OP) 3 that would eliminate
automatic updates and require FSC action on any future
changes to the UN Register on Conventional Arms
(FSC.DD/7/08/Rev.1). Additional language from UN General
Assembly Resolution 61/77 has been added to OP 4 to clarify
that information on SALW arms transfers within the OSCE can
be provided to the UN in any format. Schweizer also
recommended deleting OP 5 that would have encouraged
provision of information to the UN on arms trades with
non-OSCE states.


15. (SBU) Canada, the UK, Sweden, Luxembourg, Finland, and
Switzerland supported the revisions as recommended by
Germany. Russia also supported, in principle, the revisions
but needs instructions from Moscow. The chair will issue
another revision for consideration at the July 9 working
group.

End-User Certificates
--------------


16. (SBU) Greece, Germany, Switzerland, and the UK support
the Belarusian proposal for an information exchange and
Conflict Prevention Center overview of replies
(FSC.DEL/108/08),although all prefer the later reporting
date, i.e., September 30, 2008. The chair will issue the
paper as a draft decision with the later date.

Illicit, Rather, "Destabilizing" Air Trafficking
-------------- ---


17. (SBU) The revised version of the Franco-Belgian proposal
for an information exchange and list of best practices on
measures to prevent the trafficking of SALW by air
(FSC.DEL/62/08/Rev.2) now addresses "destabilizing" vice
"illicit" transfers. Canada (Gosal) objected to this change
as providing a loophole for traders to argue that a transfer
is not destabilizing. Croatia, Sweden, and Russia support
the latest version. Russia (Ulyanov),noting all its arms
transfers were under exclusive state control, said only
military or government-chartered aircraft were used to
transport SALW. Italy confirmed its support, and suggested

USOSCE 00000166 004 OF 005


that the title of the decision could retain "illicit" as
"destabilizing" appears in preamble paragraph 1: "excessive
and destabilizing accumulation." Germany and the UK
announced they had provided edits to the co-sponsors and
"could live with 'illicit.'" Turkey and Romania announced
they lacked instructions. Belgium, a co-sponsor, (Pauwels)
said consensus was close and urged delegations to recognize
"the good was the enemy of the best."

Code of Conduct
--------------


18. (SBU) Review by the working group of the latest draft
update of the Code of Conduct Questionnaire
(FSC.DEL/98/08/Rev.2) led to deletion of several bracketed
sub-sections containing new material (I.3.2, I.3.3, I.3.4,
II.5.5, and II.5.6). There was broad support for the most of
the remaining text, although Turkey (Begec) reported its
capital is still studying some passages (I.1.4, I.2.1,
II.4.3) and, like Germany, objects to the bracketed question
on national measures to ensure the "legitimate security
concerns of other States" are taken into account" (II.1.2) as
it would require divulgence of sensitive information.


19. (SBU) Several delegations objected to the requirement to
show their military forces "act solely within . . . OSCE
regulations" (II.2.3),preferring deletion of the reference
to the regulations or substitution of "OSCE norms" or "OSCE
principles." Germany (Schweizer) wants to insert
"deployable" before "forces" in the same sub-section to
emphasize that the OSCE is concerned with the behavior of
operational forces, "not headquarters or training
establishments."


20. (SBU) Sweden, supported by Canada and the UK, repeated
its long-standing demand that reference to the UN Security
Council Resolution 1325 on women in conflict resolution
(II.5.1) be retained.

21. (SBU) The FSC Code of Conduct coordinator (Eischer,
Austria) will issue a new revision for discussion at the July
9 working group.

Ukraine Melange Project
--------------


22. (SBU) Germany (Schweizer) urged "all participating
States" to move the melange project in Ukraine forward so
that work could begin by the autumn, noting the Secretariat's
ongoing efforts to resolve some legal issues remaining in its
MOU with the government of Ukraine.


23. (SBU) Sweden (Nilsson) announced a donation of about 1.1
million euros for the Ukraine melange project for this year,
and estimated that they would provide about 600,000 euros in

2009.

Tajikistan SALW Project
--------------


24. (SBU) Austria (Waestfelt),noting 370,000 euros are still
needed for the OSCE SALW and conventional ammunition project
in Tajikistan, announced a donation of 30,000 euros.

Next Meeting
--------------

USOSCE 00000166 005 OF 005




25. (SBU) The next FSC meeting will be on July 9 and feature
a Security Dialogue presentation by U.S. Assistant Secretary
of Defense for Homeland Security Paul McHale; the Annual
Security Review Conference will be held July 1 and 2.
FINLEY