BOLIVIA: MOD ANNOUNCES USG BLOCKED JET SALE

C O N F I D E N T I A L LA PAZ 000416

SIPDIS

E.O. 12958: DECL: 03/18/2029
TAGS: PGOV PREL PINR MARR MASS MCAP SNAR KTIA BL
CI, EZ
SUBJECT: BOLIVIA: MOD ANNOUNCES USG BLOCKED JET SALE

REF: A. STATE 131417

B. PRAGUE DAO REPORT: IIR 6 824 0041 09

Classified By: CDA Krishna Urs for reason 1.4 (b)(d)


1. (C) Summary: After meeting with CDA and MILGP Commander
March 16, the spokesman for the Bolivian Minister of Defense
Walker San Miguel announced the United States had "vetoed"
the sale of Czech L-159 military jets to Bolivia. Post
suspects San Miguel was expecting to be told that the sale
was unlikely and therefore preemptively announced "our"
response. San Miguel publicly said he would instead look to
replace Bolivia's aging trainer aircraft with the Chilean
T-35. CDA told San Miguel he was not optimistic about the
prospects for an approval given the last six months of GOB
attacks on the USG and Embassy, including expelling the
Ambassador, an EmbOff, and the entire DEA section based on
patently false accusations. End Summary.


2. (C) The CDA and MILGP Commander met with Defense Minister
Walker San Miguel March 16 at MOD request. San Miguel said
that he had signed last Thursday's formal paperwork for the
purchase of six L-159 Advanced Light Combat Aircraft (ALCA)
from the Czech Republic. The jet interceptors/training
aircraft contain U.S. manufactured avionics and engines. San
Miguel said that he understood that the Czech company
involved (Czech defense import/export firm OMNIPOL) would
soon be approaching the USG for a license to transfer these
items to Bolivia. He said he asked to meet with the CDA in
order to ensure that the request would also be conveyed
through diplomatic channels.

CDA: Bilateral Freefall Has Consequences
--------------


3. (C) CDA told San Miguel that the USG had not/not received
to date any formal request for the transfer of U.S.
technology to Bolivia through a L-159 sale (reftel a). CDA
reminded San Miguel that U.S.-Bolivian relations were in a
very poor state at present, largely the result of unjustified
GOB actions. CDA told San Miguel that he was not optimistic
regarding the sale given the circumstances. CDA reminded San
Miguel that the Bolivian government had expelled Ambassador
Goldberg, 38 DEA staff, and Second Secretary Francisco
Martinez in the past six months, all on trumped up charges
based on false information:
--Ambassador Goldberg had not conspired against the
government; while it is true that he met with opposition
prefects, the Vienna Convention's Article 3 very clearly
protects the right of diplomats to meet with all political
forces in a country.
--DEA did not transport armaments to the opposition prior to
September 2008 unrest in the Media Luna
--Francisco Martinez had never met with any Bolivian prefect
(governor) nor with Rodrigo Carrasco.

MOD Blames USG, Announces Chilean Deal
--------------


4. (C) San Miguel said that he understood the difficulties in
the bilateral relationship and asked that the USG quickly
make a determination so that the GOB could look to other
suppliers if the L-159 sale does not go through. The next
day, however, La Paz daily La Prensa published a story
sourced from the MOD explaining the USG had already "vetoed"
the deal. The story quoted San Miguel as redirecting the MOD
to a deal with Chile's National Aeronautics Company (ENAER)
to supply aircraft instead. The article provided no details
on the deal beyond San Miguel's optimism of an "agreeable
price" for a "quick delivery." San Miguel emphasized the
need for the two-seater aircraft to replace obsolete and
inoperable Bolivian aircraft. The article did not mention
use of the T-35 for drug interdiction, one of the GOB's
original rationales for the L-159 deal. The altitude
ceilings of the aircraft are far different: 13,200 meters for
the L-159, 5,340 meters for the T-35, an important difference
in high-altitude Bolivia. The T-35 is a turbo-prop plane,
not a jet. These are not comparable aircraft.

Background
--------------


5. (SBU) The GOB reported January 16 that they had made an
agreement with the Czechs to purchase six L-159s for nearly
$60 million, with delivery as early as August. Press
accounts mentioned that the sale needed the approval of the
USG. Bolivian reporting followed a January 14 report from
Czech financial weekly Euro's Web site stating that Czech MOD
would supply the L-159s to Bolivia for $58 million. In
December, Embassy Prague explained to the Czech MOD and MFA
that the USG had not received a formal request for deal and
were unlikely to approve the request. Czech Deputy Minister
of Defense Martin Bartak told the U.S. Ambassador in Prague
that the Czech MOD understood the "reserved reaction" of the
USG and "will of course respect it." Bartak indicated the
Czechs would refocus on a L-159 deal with Spain. (reftels)

Comment
--------------


6. (C) Despite the MOD's public declaration it seems likely
that the USG will soon receive in Washington a request for
approval of the L-159 transfer. We recommend that we drag
out any decision. Meanwhile the Czechs do not appear to have
been fully forthcoming with the Bolivians on this sale. End
Comment.
URS