REQUEST TO CREATE AND NOTIFY FMS CASE FOR F-16

C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 002398 SIPDIS E.O. 12958: DECL: 10/06/2019 TAGS: PGOV PREL PTER MARR PK SUBJECT: REQUEST TO CREATE AND NOTIFY FMS CASE FOR F-16 TECHNOLOGY SECURITY PRESENCE Classified By: Ambassador Anne W. Patterson, Reasons 1.4 (b) and (d) ¶1. (C) Summary: The Country Team requests the Department create and notify to Congress a new $150 million FMS case, which would use a mix of FMF and national funds, for the 5-year, 24/7 U.S. technology security presence mandated by the security notes for the Pakistan F-16 LOAs. End Summary. ¶2. (C) The Pakistan F-16 program -- a package which includes new aircraft, Mid-Life Upgrade (MLU) kits, and munitions -- is the flagship symbol of our renewed, post-9/11 engagement with the Pakistani military. The success of the program is critical to demonstrating that the United States is committed to a long-term relationship with Pakistan and is a reliable security partner. Pakistan is already using its existing F-16s in counter-insurgency operations in the FATA, but the inability of those aircraft to execute precision targeting or to fly at night increases collateral damage and limits their effectiveness. New and MLU-ed F-16s and their munitions packages will significantly improve the Pakistan AIR Force's precision and night strike capabilities. ¶3. (C) To mitigate the possibility of F-16 technology transfer to third parties, security notes incorporated into the F-16 Letters of Offer and Acceptance (LOAs) require that the aircraft, their armaments, related equipment, and technical data be housed at a separate, pre-designated Pakistan AIR FORCE base which excludes non-U.S/non-Pakistani origin personnel and aircraft. The Pakistanis have designated Shahbaz AIR FORCE Base in Jacobabad for the F-16s. Upgrades and security enhancements must be completed at Shahbaz which the Pakistanis estimate will cost $210 million. ¶4. (SBU) The security notes also mandate a 5-year, 24/7 U.S. technology security presence for the F-16s. SAF/IA has determined that when fully in place, the U.S. security presence should consist of 45 U.S. personnel -- 40 at Shahbaz (5 U.S. military and 35 contractors),and 5 in Islamabad (2 U.S. military, 1 USG civilian, 2 contractors). The estimated cost of the U.S. security presence is $30 million per year, or $150 million for the full 5-year period. ¶5. (SBU) While delivery of new F-16 aircraft will not commence until o/a June 2010, long-lead back shop items will need to be delivered before then, requiring the completion of certain facilities at Shahbaz no later than December 31. Part of the U.S. security team will need to be on station at Shahbaz to ensure that these items are being properly secured. ¶6. (SBU) On June 1, the Pakistan AIR FORCE submitted a Letter of Request (LOR) for the U.S. security presence which identified future FMF as the funding source. AFSAC subsequently advised that no contracting actions could begin until the Pakistanis submitted a new LOR indicating payment would be made with national funds. The Pakistan AIR FORCE submitted such an LOR on September 11. ¶7. (C) The Country Team, however, assesses that the Pakistan Air FORCE will be unable to secure sufficient national funds to cover the full $150 million cost for the U.S. security presence. The Pakistanis understand that because of the current lack of availability of free FMF funds, some national funds will initially be required for the security presence, for costs which must be incurred in the coming months. The spend plans we have been developing with the Pakistanis for use of future FMF (should such funds ultimately be appropriated by Congress) envision using some FMF for the security presence, as is permitted by Section 203(d)(2) of the Kerry-Lugar legislation. (Note: Kerry-Lugar bars the use of security-related assistance from FY 2010 through FY 2014 for the three separate F-16 FMS cases for the new F-16s, MLU kits, and munitions, while allowing use of FMF for "construction and related activities" carried out pursuant to the LOAs for those cases. End Note.) Post has already briefed the Department on the future FMF spend plans, including the use of FMF for the security presence. ¶8. (C) The Country Team thus requests that the Department ISLAMABAD 00002398 002 OF 002 create and notify to Congress a new $150 million FMS case, which would use a mix of FMF and national funds, for the 5-year, U.S. security presence. We strongly recommend notifying the full $150 million to Congress upfront, so that all congressional questions and concerns about the case can be addressed now, rather than on a repeated annual basis. PATTERSON