SCENESETTER FOR GENERAL PETRAEUS MAY 23-25 VISIT

C O N F I D E N T I A L SECTION 01 OF 06 PRAGUE 000269

SIPDIS

EUR/CE FOR ATRATENSEK

E.O. 12958: DECL: 05/18/2019
TAGS: EUN EZ OVIP PGOV PREL
SUBJECT: SCENESETTER FOR GENERAL PETRAEUS MAY 23-25 VISIT
TO THE CZECH REPUBLIC

Classified By: Political/Economic Counselor Charles O. Blaha, reasons 1
.4 (b) and (d).


1. (C) SUMMARY: Embassy Prague warmly welcomes you to the
Czech Republic May 23-25. Nearly 20 years after the 1989
"Velvet Revolution," the Czech Republic today boasts a
relatively strong market economy, a lively democratic
tradition, and close links with the United States. The Czech
Republic has been a member of NATO since 1999 and the
European Union since 2004. The country has been a steady
supporter of U.S. and coalition missions, with troops in
Afghanistan and Kosovo; the Czechs launched a provincial
reconstruction team (PRT) in Afghanistan in March 2008 and
also deployed a Special Forces unit to Afghanistan. Building
on its own recent history, the Czech Republic has been a
strong supporter of democratic transformation in countries
like Cuba and Belarus. A major success in the bilateral
relationship was the Czech accession to the Visa Waiver
Program (VWP) on November 17, 2008. Currently the EU
Presidency is the primary focus of the Czech Government.
Priorities for the Czech EU Presidency include enhancing the
EU,s energy security, increasing Europe,s economic
competitiveness, and strengthening U.S.-EU relations. The
Czech government is currently in transition. Prime Minister
Mirek Topolanek's government lost a vote of no confidence on
March 24, and transferred power to an "interim" government on
May 8 which will lead the country until early elections in
the fall. END SUMMARY.

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A Valued Ally With Domestic Challenges
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2. (C) President Vaclav Klaus tasked then-Czech Statistical
Office Director Jan Fischer with forming a non-partisan,
"interim" technocratic government on April 9. This occurred
after the fragile three-party coalition government of Prime
Minister Mirek Topolanek fell on March 24, 2009 after it lost
a vote of no-confidence in the lower house of Parliament.
The effort to unseat PM Topolanek during the country's EU
Presidency and at a time when the global economic crisis is
beginning to be felt illustrates the Czech Republic's
poisoned domestic politics, in which matters of domestic and
foreign policy are ignored or used to settle political
scores, usually to the detriment of the Czech Republic's
international standing and national interest. The
largely-technocratic, "interim" government of Jan Fischer
assumed power on May 8 and will govern until early elections,
which are preliminarily scheduled for October 2009. Lacking
any political mandate, PM Fischer's interim government will
focus primarily on an economic recovery program and preparing
for parliamentary elections in the fall.


3. (SBU) Bilateral Relations: Despite these domestic
political challenges, our bilateral relations are excellent,
with the Czech Republic's November 2008 entry into the Visa
Waiver Program having removed the one long-standing bilateral
irritant. The country has been a steady supporter of U.S.
and NATO military operations and maintains approximately 1000
troops on foreign missions. In Afghanistan, the Czechs have
about 500 military and civilian officials. In 2008, they
launched a provincial reconstruction team (PRT),deployed a
Special Forces unit, and sent experts to an Operational
Mentoring and Liaison Team (OMLT) in Afghanistan. Over the
past several years, they have also maintained an infantry
battalion of 450 troops in Kosovo. As a result of a domestic
political standoff in December 2008 between then-PM Topolanek
and opposition Social Democratic (CSSD) leader Jiri Paroubek,
Topolanek's government had difficulty passing the 2009
foreign troop deployments bill. The bill eventually passed,
but it came down to the wire and ugly internal politics crept
into the debate. With the fall of PM Topolanek's government,
and upcoming fall elections, Czech troop deployment levels
for 2010 will most likely be a matter of contention.
Therefore, instead of increasing the numbers, the MFA and the
MOD are discussing shifting their deployed capabilities from
Special Forces and other offensive assets to capabilities
that help the Afghans train their own forces and increase the
capacity of local institutions.


4. (C) In Afghanistan, in addition to being an active
bilateral contributor (noted above),the Czech EU Presidency
has pressed for greater EU coordination and contributions,
particularly in the civilian sphere. At the EU-Afghanistan
Troika Ministerial on January 23, the EU reaffirmed its
long-standing commitment to Afghanistan reconstruction (from
2002-2006 the EU contributed over 1.3B euros to this effort
and for 2007-2010 it has pledged 610M euros). The Czechs are

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currently facilitating internal EU discussions on how to
strengthen the current EUPOL mission in Afghanistan and how
best to support upcoming Afghan presidential elections. The
EU also held a EU-Pakistan Ministerial on March 13, which
focused on upgrading relations and took note of the fact that
the European Commission had allocated some 200M euros from
2010-2013 for rural development and education projects in
Pakistan. They also will host an EU-Pakistan Summit on June
17 in Brussels, the first-ever EU Summit with Pakistan.


5. (SBU) Economy: Following several years of strong economic
performance, the small, open, export-oriented Czech economy
is now struggling with the effects of the global economic
downturn, which has significantly reduced external demand for
Czech exports. As a result, the economy is expected to
contract by as much as three to four percent in 2009.
Unemployment has climbed to 7.4 percent. Nevertheless, the
Czech financial system has remained relatively healthy, and
the Czech Republic is one of only four OECD countries not to
have had to recapitalize its banks. The government has put
forward an economic recovery program, costing almost 2
percent of GDP, designed to maintain employment and exports.
Fearing the consequences to their economy should
international investors put them in the same category as some
of their more troubled neighbors, the Czechs have opposed any
initiatives that treat Central and Eastern Europe as a
unified region.


6. (C) Democracy Promotion: One legacy of the Czech struggle
against Communism, and in particular of Vaclav Havel's many
years as Czech president, is the active role the Czech
government and NGOs take in promoting democracy around the
world. The Czech Foreign Ministry has a special unit devoted
to transformation policy. It works together with Czech NGOs
to support civil society and democratic reforms in countries
like Cuba, Belarus, Burma, Iraq and elsewhere. Likewise, the
Czechs are one of the most active countries within the EU and
the UN supporting the promotion of democracy and human
rights. Prague has been home to the U.S.-funded Radio Free
Europe/Radio Liberty since 1995, which broadcasts to many
countries in transition in Eastern Europe, Central Asia and
the Middle East.

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Czech EU Presidency
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7. (C) The Czechs, who joined the EU in May 2004, assumed the
rotating six-month presidency from the French on January 1,
2009 and hand over to the Swedes on July 1, 2009. This is
the first time the Czech Republic has held the EU presidency,
and only the second time for one of the 12 newest EU member
states. (Slovenia was the first, in January 2007.) In
consultation with their EU partners, the Czechs outlined
three top priorities underneath their overarching theme of
"Europe Without Borders." These are commonly referred to as
the "Three Es" for their presidency: EU economic
competitiveness, energy security, and external relations.
Within external relations, the Czechs have focused on the
Western Balkans, Transatlantic Relations, and the Eastern
Partnership. These priorities, along with the global
financial crisis and earlier this year the Russian-Ukraine
gas crisis, have kept the Czechs extremely busy. This pace
will continue through the last two months of their EU
Presidency, with several key events: several EU Summits (with
China, Russia, Korea, and Pakistan),European Parliamentary
elections the first week of June, and the naming of a new
European Commission President (although it appears likely
Commission President Barroso will be approved for a second
term).


8. (C) Transatlantic Relations: On April 5 the Czechs pulled
together the widely applauded U.S.-EU Summit and Foreign
Ministerial with President Obama, Secretary Clinton and all
EU leaders and foreign ministers. The discussions at these
two events dovetailed well with USG priorities. U.S. and EU
leaders discussed the economic and financial situation,
energy and climate change, and the "Space between the
Mediterranean and Caspian Sea." At the same time, Secretary
Clinton and the foreign ministers discussed Eastern Europe,
the Western Balkans, Afghanistan/Pakistan and the Middle
East. The importance of channeling more effort and energy
into the Transatlantic Economic Council (TEC) was referenced
by several EU leaders, as well as President Obama, who
indicated he would encourage his team to "work aggressively"
with the EU in this area. As well, the President gave a
widely watched speech on non-proliferation, his only public
speech during this first visit to Europe.

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Czech Armed Forces
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9. (C/NF) Background: The Czech Armed forces are struggling
to concurrently complete their defense reform plan (initiated
in 2002) and to support deployed operations. The situation
is complicated by a polarized and charged domestic political
environment, reduced funding, and a lack of transparency in
the procurement process. The Army of the Czech Republic
(ACR) has met its broad end strength reform goals: an all
volunteer force of 35,000 military and civilians; two
maneuver brigades; 24 subsonic fighter-bombers (Czech
produced L-159 Advanced Light Attack Aircraft or ALCA); 14
supersonic fighters (JAS-39 Gripens); one brigade each for
artillery, air defense, NBC defense and engineers; and
Special Forces Group. The ACR also has met its deployment
capabilities goal - maintaining approximately 1,000 deployed
troops in operations. However, the achievement of full
operational capability of two brigade size task forces has
been put off until 2013. The current CHOD, LTG Vlastimil
Picek, appears committed to further reductions in civilian
staffs and support units and a shift in billets to the units
providing the deployable force pool. The current CHOD also
grew two new deployable ground battalions out of existing
force structure, through the elimination/restructuring of
rescue (homeland emergency services) battalions. There are
some indications that units providing troops for deployed
operations are stressed. The ACR did not meet its
recruitment goals for 2008, for the first time, and the
defense budget is now facing a ten percent cut as a result of
the financial crisis that will take defense spending down
below 1.2 percent of GDP.


10. (SBU) Recent Deployment History. Under former Prime
Minister Topolanek,s Government (which lasted just over two
years),Czech contributions to Afghanistan more than doubled
(from 225 in 2007 to over 500 in 2008/09),and the types of
missions the Czechs accepted became much more aggressive
(Czechs moved from providing security to the German PRT in
Feyzabad to leading their own PRT in Logar; they deployed a
security unit in support of the Dutch PRT in Uruzgan, an OMLT
to train ANAAC pilots at KAIA and a large SOF contingent
under OEF to KAF and FOB ANACONDA). Czech troops are not
constrained by national caveats. Through it all, the Czechs
have forged close working relationships with RC-E, CSTC-A
(especially CAPTF),and SOCCENT. The efforts of RC-E
(CJTF101) have been particularly effective in guiding Czech
deployment plans and shaping the successful efforts of the
PRT in Logar as well as the new Czech helicopter detachment
as it prepares for deployment to FOB SHARANA.


11. (SBU) As already mentioned, the Czechs provide a small
OMLT to mentor ANAAC pilots and maintenance personnel (mostly
Mi-24 staff),in close cooperation with CAPTF. This
complements their recently completed donation of 12 Mil
helicopters (6 x Mi-24 and 6 x Mi-17) that are now serving as
the backbone of the ANAAC helicopter fleet. The donation was
made following extensive factory overhauls that were largely
U.S.-funded and were performed by a Czech MoD-affiliated
helicopter maintenance deport located near Prague
(approximately a $30m contract). This same Czech MoD
facility is currently performing similar overhauls of three
Pakistani Mi-17s under a CENTCOM-funded program. The Czech
MoD has recently indicated that it may consider a further
donation of two more Mi-17 helicopters. This second donation
would be welcomed by CSTC-A.

12. (SBU) The flagship of Czech involvement in Afghanistan is
the Czech PRT in Logar. Based at FOB Shank in Pole-Alam, the
total strength of the Czech PRT was increased in early 2009
from about 210 to 275 and now includes four infantry
platoons. The infantry platoons are used in close
coordination with TF SPARTAN to provide security of PRT
activities, as well as to conduct framework and stability
operations. The Czech PRT began operations in March 2008, a
period that coincided with a deteriorating security situation
in the province (Czechs suffered a KIA in the first months of
operation). Yet despite the security challenges, the Czech
PRT got a fast start and has generally received high marks
for its approach to reconstruction and ability to build
partnerships with local government and tribal leaders. The
Czech PRT is TACON to RC-E. At the heart of the Czech PRT is
a ten- person civilian experts team that consists of
reconstruction experts possessing specific skills determined
to be the most relevant to the Logar Province (agriculture,
aquifer management, public health, education, etc). Many of
the Czech civilian experts were hand- selected from the

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substantial Czech NGO community and several have extensive
previous experience in Afghanistan (as well as Iran, Iraq,
and Africa). The Czech Government has made a multi-year
commitment to PRT in Logar and should continue its efforts
(pending annual parliamentary support) for at least another
four years.

13. (SBU) In addition to the Czech PRT, the Czechs have also
deployed a rotating 100-man SOF contingent under OEF for a
period of 18 months (deployed till the end of 2009). This
marks the third time Czech SOF has deployed under OEF
(previously in 2004 and 2006). Czech SOF has steadily
developed into a capable force that easily interoperates
alongside U.S. partners. Czech Minister of Defense Martin
Bartak feels particularly close to the Czech SOF and often
visits the unit both in Afghanistan and at its home garrison
in the Czech Republic.

14. (SBU) Other Czech deployment commitments include KFOR
and the EU Battlegroup. The Czechs commitment to KFOR remains
strong (many Czechs view KFOR as the most important foreign
deployment) and the Czech Armed Forces maintain a
battalion-sized unit of about 450 in KFOR NMTF-C. Beginning
in July 2009, the Czechs will also lead and provide the
majority of the forces (1800 troops) to the European Union
Battle Group on a six month commitment.

15. (C) 2010 Deployments: Czech MoD is in the process of
formulating its 2010 foreign troop deployments bill. We have
been told that the Czech MoD will request authority to
deploy about 550 in Afghanistan in 2010, which would result
in the continuation and expansion of the Czech PRT in Logar
(the addition of a fifth infantry platoon and more civilian
reconstruction experts) and the continuation of their
presence at KAIA (national support element, helicopter
training OMLT, and CBRN recon personnel). The Czechs will
also propose to deploy the three-Mi-17 helicopter detachment
in early 2010, which was originally forecast for late 2009
but delayed due to technical problems relating to upgrades of
instrumentation and communications systems. The Czechs are
also reportedly considering offering to deploy an additional
OMLT to mentor an ANA Kandak.

16. (SBU) Such news is of course welcome in the face of
recent political changes and anticipated budget cuts, but
these anticipated proposals must still be approved by the
government and then voted on by the Czech Parliament. Both
hurdles that may not be easily cleared, since the
parliamentary debate on the 2009 deployment bill was
protracted and contentious. Additionally, Czech popular
opinion has never been firm in support of foreign deployments
and is gradually slipping even further. Thus, your taped
appearance on Vaclav Moravec,s respected nationally
televised Sunday morning news talk show offers an important
opportunity to stress the success and importance of Czech
contributions in Afghanistan, especially stressing the
non-lethal aspects of the reconstruction activities of the
Czech PRT.

17. (C/NF) Czech Minister of Defense: Your most substantive
exchanges will likely occur on Friday evening when you meet
with newly appointed Minister of Defense Martin Bartak.
Bartak has been an active supporter of U.S. policies and
initiatives. Bartak was close to former right-of-center
Prime Minister Topolanek and was considered by many to be
actually running the day-to-day affairs of the Czech MoD
under the Topolanek-led government. Bartak has been an
active supporter of both missile defense and foreign
deployments. Bartak speaks fluent English and many find him
to have a charismatic personality. Bartak has forged close
relationships with U.S. counterparts, to include former
USD(P) Edelman. One caution, however: Bartak often and
rather unpredictably raises issues of a tactical nature with
senior U.S. visitors.

18. (C/NF) Czech CHOD/Chief of General Staff, LTG Vlastimil
Picek: Upon arrival you will be greeted by the Czech of the
Czech General Staff, LTG Vlastimil Picek. Picek will then
host you to dinner on Sunday. Picek is a careful man who
speaks English haltingly, feeling more comfortable with an
interpreter. In his two years at the helm as Czech CHOD,
Picek has truly been a reformer, cutting waste, going after
corruption within the military ranks and General Staff, and
reducing non-deployable staffs/ headquarters in favor of
increasing the deployable pool of forces. During your
meetings with him, LTG Picek,s focus will undoubtedly be on
Afghanistan. He will discuss the Czech military,s 2010
foreign deployment plan and will also explain his decision to
delay by several months the deployment of the Czech
helicopter detachment due to technical issues related to
installing secure radios in modernized Czech helicopters.
Picek has designated his Deputy and Chief of Operations, MG
Jiri Halaska, to be your escort throughout the visit.


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19. (SBU) U.S. Assistance for Deployments to Afghanistan- -
training and funding. In terms of training, the U.S. has
provides extensive pre-deployment training support to Czech
forces. Such training includes Czech participation in
Mission Readiness Exercises (MREs) conducted at the Joint
Multinational Readiness Center in Hohenfels, Germany. The
Czechs also regularly conduct HMMWV operators training and
combat life savers training at Grafenwoehr. U.S. SOF has
conducted several Joint Combined Environment Training (JCET)
exercises with Czech forces, and this month several Czech
Mi-17 crews are at Fort Bliss Texas to conduct live
environment training. This training is on top of a IMET
program that in 2008 totaled $1.6m.


20. (SBU) The U.S. has provided a great deal of direct
materiel and funding support including 26 M1114 HWWMVs, IED
countermeasures, and tactical radios. The Czechs are also
large recipients of lift and sustain funding, partly as a
result of an OSD agreement to provide funding as a
demonstration of support to the Topolanek Government, in
light of its support of U.S. missile defense policy.
Additionally, the Czechs received $2.84 of FMF in 2008. Both
IMET and FMF budgets have recently trended downward, but may
see future increases. (The ongoing helicopter flight
training at Fort Bliss was funded by a $2.8m plus up in 2008
FMF funding).

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Other Issues to Watch - Guantanamo and Missile Defense
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21. (C) The Czech EU Presidency has welcomed the U.S.
administration's executive orders related to the closure of
the Guantanamo detention facility. The Czechs have
facilitated internal EU discussions at the foreign, justice,
and interior ministerial levels. European Commissioner
Barrot and former Czech Interior Minister Langer traveled to
the U.S. in March to discuss EU questions about the detainees
with Attorney General Holder and other USG officials. They
also discussed this topic during the U.S.-EU Justice and Home
Affairs Ministerial the last week of April. While the EU
member states consider this to be a decision for each
individual member state to make, they have discussed
establishing an EU framework to address collective Schengen
travel security concerns. However, the EU has yet to take
collective action. Czech officials have been clear that the
Czech Republic, while willing to facilitate EU discussions on
the resettlement of detainees, cannot accept any of them due
to domestic political reasons.


22. (C) EU membership is one of two pillars of Czech foreign
policy. NATO and strong transatlantic ties form the second
pillar. Given the importance the Czechs assign to their
relationship with the United States, former PM Topolanek and
his government viewed missile defense (MD) as a natural next
step in the security partnership between our two countries.
Since the United States officially presented the MD proposal
to the Czech Republic in January 2007, the Czech government
has been unwavering in its support, despite significant
public opposition driven largely by the Czech historical
experience and concerns about foreign troop presence on the
Czech territory. Russian threats and intransigence with
regard to MD in many ways reinforced the Czech government's
determination to proceed with the project. The Czech
government moved quickly to negotiate and sign the Ballistic
Missile Defense Agreement and the Status of Forces Agreement.
The Czech Senate ratified the agreements in November 2008.
Ratification of the two agreements in the lower chamber has
been suspended due to the domestic political turmoil, but
also due to outstanding questions about the U.S.
administration's plans. Going forward, the Czechs consider
close consultations with the United States as critical.

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A Strong and Reliable Partnership
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23. (SBU) Despite its small size and at times unsettled
political scene, the Czech Republic has consistently proven
to be a reliable and active ally of the United States. With
a total deployable strength of only about 13,000 personnel,
the Czech Armed Forces have made a significant contribution
in support of coalition operations. The Czechs are
appreciative of the positive role the United States has
played at key moments of their history. They are, in turn,
proud of their own contributions to security, democracy, and
freedom around the globe since 1989.


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Thompson-Jones