END USE, SECURITY, AND RETRANSFER AGREEMENT WITH

UNCLAS SECTION 01 OF 03 STATE 131183

SIPDIS

E.O. 12958: N/A
TAGS: BC EAID KTIA MARR PREL MASS SADC
SUBJECT: END USE, SECURITY, AND RETRANSFER AGREEMENT WITH
THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)

REF: A. GABORONE 963

B. STATE 7798

C. STATE 18852

SUMMARY
--------------


1. (U) This is an action request (see paragraphs 2-5). The
Department requests Post provide appropriate SADC officials
with the proposed text for a Section 505 agreement. Section
505 of the Foreign Assistance Act of 1961, as amended,
requires that the USG obtain end-use, security, and
retransfer assurances from foreign governments and
international organizations before furnishing them with any
defense articles, related training, or other defense services
on a grant basis. The United States and the Southern African
Development Community (SADC) have not yet entered into an
agreement satisfying this requirement. End Summary.

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ACTION REQUEST
--------------


2. (U) The Department requests Post present appropriate
SADC officials with the proposed text of an agreement
(provided at paragraph 7),using talking points provided in
paragraph 6 to explain the legal requirements and encourage
SADC to enter into an end-use, security and retransfer
agreement.


3. (U) Post should present the draft reply dip note
(paragraph 8) that, if presented by SADC to the USG, would
bring the agreement into force.


4. (U) Post should seek Department guidance if the SADC
Secretariat proposes a reply that departs from this approach
or in any way rejects the conditions set forth in the U.S.
note, Post should seek Department guidance.


5. (U) The text of the reply should be transmitted via
cable slugged to PM/RSAT, PM/PPA, AF/RSA, AF/S, L/PM, and
L/T. Please pouch the original/original note together with a
certified copy of the Embassy's note, to L/T (Rm. 5420, HST
Attn: Daphne Cook) via registered pouch, and include the
pouch registration number in the cable. To expedite the
review of any exchange of notes, Post should fax or e-mail
copies of the notes as soon as possible to Daphne Cook,
unclassified fax: 202-647-9844.

End Action Request.

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Talking Points
--------------


6. (U) Post is requested to draw on the talking points
below when presenting the proposed agreement to SADC:

-- The USG is prepared to provide defense articles and
defense services to the Southern African Development
Community. A U.S. Presidential Determination recognized that
"the furnishing of defense articles and defense services to
the Southern African Development Community (SADC) will
strengthen the security of the United States and promote
world peace."

-- In order to be eligible under U.S. law to receive
potential assistance, SADC and the U.S. Government must enter
into an agreement regarding the end-use, security, and
retransfer of any such articles and services.

-- We have prepared a draft text that satisfies this legal
requirement. This is the standard agreement that we have
reached worldwide with other recipients of U.S. grant defense
articles and services.

-- The agreement says in effect that SADC pledges to use the
articles and services for the purposes specified, and that
SADC will not transfer or dispose of the equipment or
technology without advance written permission from the United
States government.

-- In addition, these end-use assurance agreements are an
integral part of preventing the proliferation of small arms
and light weapons, which SADC members also support.

-- We hope SADC will find this text acceptable and be able to

STATE 00131183 002 OF 003


reply with the proposed draft response, which would enter the
agreement into force.

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Agreement Text and Reply Diplomatic Notes
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7. (U) The following text should be presented to SADC via
diplomatic note:

The Embassy of the United States of America presents its
compliments to the Secretariat of the Southern African
Development Community and has the honor to refer to earlier
discussions between the United States of America and the
Southern African Development Community regarding grants under
the Foreign Assistance Act of 1961, as amended, or successor
legislation, and the furnishing of defense articles, related
training, and other defense services, from the United States
of America to the Southern African Development Community.

In accordance with these discussions, it is proposed that the
Southern African Development Community agree:


A. That unless the consent of the Government of the United
States of America has been first obtained the Southern
African Development Community shall not:

(I) Permit any use of such defense articles, related
training, including training materials, or other defense
services by anyone not an officer, employee, or agent of the
Southern African Development Community;

(II) Transfer, or permit any officer, employee or agent of
the Southern African Development Community to transfer, such
defense articles, related training, including training
materials, or other defense services by gift, sale or
otherwise; or

(III) Use, or permit the use of, such defense articles,
related training, including training materials, or other
defense services for purposes other than those for which
provided;


B. That such defense articles, related training, including
training materials, or other defense services shall be
returned to the Government of the United States of America
when they are no longer needed for the purposes for which
they were furnished, unless the Government of the United
States of America consents to another disposition;


C. That the net proceeds of sale received by the Southern
African Development Community in disposing of, with prior
written consent of the Government of the United States of
America, any defense article furnished by the Government of
the United States of America on a grant basis, including
scrap from any such defense article, shall be paid to the
Government of the United States of America;


D. That the Southern African Development Community shall
maintain the security of such defense articles, related
training, including training materials, and other defense
services; that it shall provide substantially the same degree
of security protection afforded to such defense articles,
related training, including training materials, and other
defense services by the Government of the United States of
America; that it shall, as the Government of the United
States of America may require, permit continuous observation
and review by, and furnish necessary information to,
representatives of the Government of the United States of
America with regard to the use thereof by the Southern
African Development Community;


E. That the Government of the United States of America may
also, from time to time, make the provision of articles and
services furnished under other authority (except the United
States Arms Export Control Act) subject to the terms and
conditions of the agreement proposed herein. (Transfers
under the United States Arms Export Control Act shall
continue to be governed by the requirements of that Act and
United States regulations applicable to such transfers.)

The Southern African Development Community's note stating
that the foregoing is acceptable to the Southern African
Development Community shall, together with this note,
constitute an agreement between the Government of the United
States of America and the Southern African Development
Community, which shall enter into force on the date of the
Southern African Development Community's note.

End Agreement Text.


8. (U) Begin text of proposed reply note:

STATE 00131183 003 OF 003


(Complimentary opening) and acknowledges receipt of the
Embassy's Note No. (insert number),dated (insert date),
which reads as follows:

(quote in entirety the text of U.S. note provided in
paragraph 8)

The Secretariat of the Southern African Development Community
has the honor to confirm that the proposals set forth in the
Embassy's note and this note in reply shall constitute an
Agreement between the U.S. Government and the Southern
African Development Community which shall enter into force on
this date.

End text of reply note.

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Points of Contact
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9. (U) The point of contact for legal questions on section
505 is L/PM Scott Vesel or Selene Ko. The points of contact
for political-military issues are Amy Van Buren in PM/RSAT
and Rachel Schaab in PM/PPA.
CLINTON