FIRST U.S.-CZECH HIGH LEVEL DEFENSE GROUP: CZECHS

C O N F I D E N T I A L SECTION 01 OF 04 PRAGUE 000668

C O R R E C T E D C O P Y (ADDED TEXT TO PARA 22)

SIPDIS

STATE FOR EUR/CE

E.O. 12958: DECL: 11/12/2019
TAGS: PREL PGOV MARR MASS MOPS EZ
SUBJECT: FIRST U.S.-CZECH HIGH LEVEL DEFENSE GROUP: CZECHS
CAUTIOUS ON SHARED EARLY WARNING OFFER

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Classified By: Charge d'Affaires Mary Thompson-Jones for reasons 1.4 (b
) and (d).


1. (C) SUMMARY: The first-ever U.S.-Czech High Level
Defense Group (HLDG) meeting on November 6 in Prague, led by
Assistant Secretary of Defense (ASD) for International
Security Affairs Alexander Vershbow, was productive and
cordial, covering: NATO issues, U.S.-Russia relations, the
new Phased Adaptive Approach (PAA) for missile defense (MD),
Afghanistan, and bilateral funding and acquisition issues.
The Czechs have moved past the results of the MD policy
review, are fully engaged on new modalities of cooperation,
and stressed their need to show their public concrete
results. They emphasized the constraints on their defense
budget due to the current economic downturn. The U.S.
delegation offered the Czechs participation in an MD Shared
Early Warning (SEW) system; Defense Minister Bartak reacted
positively in a separate meeting with U.S. delegation head
Assistant Secretary of Defense (ASD) Alexander Vershbow. The
Missile Defense Agency (MDA) detailed plans for the next
phase of joint MDA-funded R&D cooperation, and the Czechs
asked for a permanent liaison officer at MDA. The Czech
government's commitment to Afghanistan remains strong. On
the sale of excess defense article KC-130s, the Czechs
doubted the two sides could find a medium ground between
their expectations and the realistic cost figures, and
suggested it might be time to "shake hands" and look for
other areas of cooperation. While stressing their
appreciation for FMF and IMET programs, they asked that the
U.S. consider proportional parity between Czech and Polish
programs. End Summary.

"MATURE, LONG-TERM" SECURITY RELATIONS
--------------


2. (U) In addition to ASD Vershbow, the U.S. delegation
included representatives from OSD, MDA, AT&L, DSCA, EUCOM,
the State Department, and Embassy Prague. Deputy Defense
Minister Jan Fulik headed the Czech delegation, which
included other MoD representatives, the Deputy Chief of the
Czech General Staff, a member of the Czech NATO Mission, and
a Ministry of Foreign Affairs (MFA) representative. ASD
Vershbow also met privately with Minister Bartak on the
margins of the HLDG.


3. (C) Deputy Defense Minister Jan Fulik expressed
appreciation for the HLDG dialogue and offered condolences
for the shooting at Fort Hood. Fulik emphasized that despite
temporary resource problems, the Czechs do not lack the will
to strengthen bilateral and multilateral security
cooperation. Fulik said that the Czechs understood the
reasons for the new MD architecture, but still faced
political challenges that they hoped to move beyond. Veshbow
noted that the U.S. aims for "mature, long-term" security
relations with the Czech Republic (CR) and was committed to
consultations with the CR on key security issues.

STRATEGIC SECURITY OVERVIEW
--------------


4. (C) Fulik said Czech security policy is still influenced
by Russian behavior. The CR seeks "pragmatic" relations with
Russia but is concerned by Russian assertion of privileged
spheres of influence and its "creeping influence" in NATO
business. Fulik said that the CR might be able to bring some
fresh ideas to help restart the NATO-Russia effort. He
expressed satisfaction with the work to date of the Group of
Experts (GoE) on the new NATO Strategic Concept. Both Fulik
and MoD Director of Defense Policy and Strategy Ivan Dvorak
stressed the need to balance Article 5 collective defense and
out-of-area operations, with Dvorak adding that Article 5
must remain the "cornerstone." Both added the need to keep
Allies involved by having early discussions in the North
Atlantic Council (NAC).


5. (C) ASD Vershbow said that the Strategic Concept review
needs to be open and inclusive, so that it incorporates all
allies' views, with the final product accessible to publics
and parliaments. He agreed on the need for balance between
Article 5 and out-of-area operations, noting that both
required deployable forces. Even defining the meaning of
Article 5 in an era of asymmetric threats would not be a
simple task. He stressed the need for the Strategic Concept
to ensure that NATO generates the resources to match its
level of ambition; meeting the resource challenge should
include collective and pooling efforts, increased use of

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common funding, and development of "niche" capabilities by
some allies. OSD Europe/NATO Principal Director Julianne
Smith emphasized the importance of allies' willingness to
provide resources and of realistic resource planning.


6. (C) Fulik predicted that due to economic conditions, the
CR's defense budget would be constrained in 2010. He hoped
it would improve in 2011; if not, the CR will find it hard to
keep deployments at their current level. Dvorak added that
the average NATO member contributed 0.5 percent of its budget
to NATO common funding, but the Czechs contribute 2.5 percent.


7. (C) ASD Vershbow briefed on the status of U.S.-Russian
relations, emphasizing that the "reset" will not come at the
expense of our European allies. The Czechs noted they were
pleased to hear the reset was not just one way, noting they
felt at the beginning that the Russians believed that only
the U.S. needed to reset.

MISSILE DEFENSE
--------------


8. (C) Fulik called the MD policy review "a little painful
for us" but focused on the future. He declared that the CR
was "deeply interested in participating immediately" in the
new PAA architecture. He said that the Czech side had
created a 10-person MD experts group for which it was seeking
"appropriate places."


9. (C) Missile Defense Agency (MDA) International Affairs
Director Nancy Morgan briefed on the new MD Phased Adaptive
Approach (PAA) and on MDA plans for the next phases of three
MDA-funded U.S.-Czech research projects -- all of which had
provided valuable inputs to U.S. MD programs. The Czechs had
no questions following the presentation.


10. (C) OSD Nuclear and MD Policy Principal Director John
Plumb offered the Czechs participation in a MD Shared Early
Warning (SEW) system and explained SEW's operation, noting
that SEW could possibly evolve into a larger role for the CR,
for example, in the area of consequence management. ASD
Vershbow noted this offer was in line with the 2008
U.S.-Czech Declaration of Strategic Cooperation's commitment
to share MD situational awareness. Once NATO made decisions
on adopting the PAA as part of a NATO-wide MD effort, it
would be easier to identify other opportunities for Czech
participation, building on the SEW capability. Fulik was
initially non-committal (probably because the Czechs were not
expecting this offer and did not have instructions),but
reacted more favorably in discussing the idea over lunch.
Defense Minister Bartak reacted enthusiastically in a
separate meeting with ASD Vershbow. Bartak said this is what
the Czechs were seeking and that it offered a logical
continuation of the MD process. He rejected the idea that it
would interfere with Czech elections, saying the sooner the
better, but that he would have to raise it with the
government.


11. (C) MDA's Morgan offered to host a Czech expert for a
4-6 week orientation visit to MDA headquarters. Fulik and
Dvorak pushed hard for a permanent Czech liaison officer
(LNO) position at MDA to publicly demonstrate Czech
participation in the "evolution of ideas" on MD and
"political, not just technical, cooperation." MDA
International Affairs Director Morgan explained that MDA was
in the process of relocating per BRAC and could only
accommodate a temporary placement. She also mentioned that
there were disclosure issues that made it difficult to agree
to an embossed LNO. Fulik replied that the CR wanted to be a
"partner, not a visitor" on MD. ASD Vershbow said the two
sides could continue to look for ways to accommodate the
Czech request, but in the interim, urged the Czechs to
consider an exchange visitor at MDA.

AFGHANISTAN
--------------


12. (C) Fulik said that despite limited resources, the Czech
government's commitment to Afghanistan remains strong and
they have no plans to withdraw forces. He expressed concern
about the Karzai government and the need to address
governmental corruption and inefficiency. The Czech
government faced difficulty in explaining the Afghanistan
commitment to its public and to parliament, which must
annually approve foreign deployments of Czech troops. Fulik
said the MoD was finalizing a medium-term plan that would for

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the first time shift the panning process to a three-year
cycle rather than the current annual plan, which, if approved
by parliament, would make planning easier.


13. (C) ASD Vershbow expressed gratitude for Czech
contributions in Afghanistan, noted U.S. material support for
the Czech effort there, and briefed on the situation on the
ground. Vershbow said that when President Obama makes his
decision on additional resources, the U.S. will be looking to
European allies to respond as well.

MEETING WITH DEFMIN BARTAK
--------------


14. (C) During the lunch break, ASD Vershbow met separately
with Defense Minister Bartak. Bartak focused on Czech public
perceptions about MD and about expectations in the Czech
media on the next steps. He said there is still some public
sensitivity on MD, and a sense that the government invested a
lot politically. Bartak expressed a desire to tighten the
transatlantic relationship and a need to put some form of
concrete cooperation on the table soon.


15. (C) Bartak noted that he had won an important victory in
parliament on November 5, when MPs agreed to protect the
Czech embassy in Kabul with military rather than police
officers, which would allow him to add another 20 Special
Forces to the Czech contingent in Afghanistan. He also noted
his effort to change the parliamentary review and mandate
process from an annual event to a three-year process, which
would greatly improve continuity and planning.


16. (C) Bartak spoke at length about Russia, which he said
is a very sensitive issue for the Czechs. He said the Czech
perception of Russia is "not so positive," and predicted that
the upcoming celebrations on November 17 marking the 20th
anniversary of the Velvet Revolution would be used
politically against the former USSR and against communists.
He said Russian activities on Czech soil have sharply
increased; that their actions are in opposition to their
public statements; and that "they are using the old methods
again."


17. (C) Bartak noted Vice President Biden's trip included
advocacy for Westinghouse in the current USD 27 billion
nuclear tender, something he supports. He said there was an
extended discussion in the government over the weekend on
whether the state should play a decision-making role,
something Bartak advocates. He predicted this would generate
a controversial discussion in the Czech public about the
wisdom of accepting the Russian offer if it should prove to
be the best offer. Noting Czech dependence on Russian oil
and gas, Bartak argued that this should be a political as
well as economic decision by the government. ASD Vershbow
noted that energy security was not merely a commercial
question, but a strategic decision.


18. (C) Bartak also raised the issue of the C-130 purchase
prices, and said that since the Czechs planned to use them
for Afghanistan deployments, they should be offered at a
better price. Vershbow noted expert groups were also meeting
on that issue and discussion would continue, but that the
requirements for flying into Afghanistan drove up the cost.

DEFENSE COOPERATION
--------------


19. (C) STRATEGIC AIRLIFT: Fulik noted that in the wake of
the recently completed DSCA program review, he fully
understood the cost estimates for the EDA KC-130 sale, but
that the government had a media problem thanks to
expectations that the program would be significantly cheaper.
While they urgently wish to acquire transport aircraft to
achieve independence in airlift, Fulik doubted it was
possible to bridge the gap between cost and expectation, so
it might be time to "shake hands" and look for other
solutions. To end the program on a positive note, he
suggested that both countries agree that the KC-130 was not
the best option for meeting the Czech requirement but that we
would continue to look for solutions to the capability
shortfall. The Czech side emphasized that they would like to
pursue a future effort in a government-to-government program
(Comment: Czech procurement laws require any commercial
sales to go through Czech middlemen, which tends to add
significant markups to any acquisition program. End Comment).


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20. (C) FOREIGN MILITARY FUNDING (FMF): Fulik expressed his
deep appreciation for the significant amount of U.S. FMF that
the Czechs have received, noting that it has played a key
role in preparing their forces for operational deployments.
While he understood that the funding was intended to help
"developing" countries and they were happy the Czech economy
had developed to move them out of that category, he asked
that we consider the relative FMF program levels for the
Czech Republic and Poland: Poland, with four times the
population of the CR, receives ten times the FMF funding.
Dvorak noted that this creates a domestic political and media
problem for the Czech government. ASD Vershbow pointed out
that DoD is requesting significant FMF and IMET increases for
the CR that, if approved, would narrow the gap. ASD Vershbow
noted that the U.S. was seeking a significant increase in
Czech FMF for FY2011. He observed that the Czechs had over
USD 10 million in uncommitted FMF funds and that Congress
would be reluctant to allocate additional funds when the
Czechs have not yet spent what they have already received.
He added that they might consider applying the unspent USD 10
million to a C-130 purchase. Dvorak replied he had not been
aware of the unspent funds.


21. (U) EDUCATION AND TRAINING: The Czechs expressed deep
appreciation for the significant role that IMET has played in
improving the leadership and enhancing the professional
capabilities of their forces, and Fulik noted that the IMET
funding was probably more important than any equipment they
had received. To take the program further, they specifically
requested assistance in developing their training capability
so that they can better pass on the instruction that they
have received through IMET. They specifically requested U.S.
cooperation with the British Military Training Team effort at
Vyskov.


22. (C) CBRN: Noting the continuing availability of a
senior staff position for a U.S. expert at the Czech CBRN
facility, Fulik urged that the slot be filled noted and that
the facility be better integrated into NATO. ASD Vershbow
agreed this was a good example of a valuable "niche"
capability in NATO. He said that the US would look at options
to fill the staff position and welcomed Czech proposals for how
to integrate the center.


23. (C) RECIPROCAL DEFENSE PROCUREMENT (RDP): The Czech
side inquired about the status of the RDP MOU. OSD/AT&L
International Cooperation Director Al Volkman said that a
U.S. procurement specialist would visit Prague in one week to
review Czech procurement procedures, and that a draft MOU
would not be ready until early 2010. Dvorak noted the MoD is
under pressure from Czech industry for an answer on RDP.
State Department EUR/CE Director Alex Karagiannis pointed out
that the CR's legal requirement for a Czech intermediary for
defense procurements, and general lack of transparency, were
significant hurdles that still had to be overcome.


24. (C) CZECH AIR DEFENSES: Fulik pointed out that in a few
years the CR would begin to replace aging missiles and radar
used for Czech air defenses. He said the CR would share its
proposal with U.S. companies once it was concrete. EUCOM J-5
MG Paul Schafer urged the Czechs to draw on Embassy Prague
DAO and ODC to define requirements, since air defense systems
are very expensive and should be purchased strictly on
requirements.


25. (C) NATO HIP TASK FORCE: Fulik urged the U.S to sign
the NATO HIP Task Force Declaration; ASD Vershbow replied
that the U.S. is still staffing the proposal in legal and
comptroller channels.


26. (U) This message was cleared by Assistant Secretary of
Defense Vershbow.
Thompson-Jones