Identifier
Created
Classification
Origin
97STATE133614
1997-07-17 01:00:00
CONFIDENTIAL
Secretary of State
Cable title:  

MEETING WITH BIN LADEN GROUP AMERICAN BUSINESS

Tags:  ECON ETRD MASS PTER EG SA 
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P 170100Z JUL 97
FM SECSTATE WASHDC
TO AMEMBASSY CAIRO PRIORITY 
INFO AMEMBASSY RIYADH PRIORITY
C O N F I D E N T I A L STATE 133614 


E.O. 12958: DECL: 7/L6/2OO7
TAGS: ECON ETRD MASS PTER EG SA
SUBJECT: MEETING WITH BIN LADEN GROUP AMERICAN BUSINESS
AFFILIATE

C O N F I D E N T I A L STATE 133614


E.O. 12958: DECL: 7/L6/2OO7
TAGS: ECON ETRD MASS PTER EG SA
SUBJECT: MEETING WITH BIN LADEN GROUP AMERICAN BUSINESS
AFFILIATE


1. CLASSIFIED BY NEA/ENA DIRECTOR, RICHARD L. JACKSON.
REASONS 1.5 (B) AND (D).


2. (C) SUMMARY: TECHMASTER ENGINEERING, INC. (TEL),A US-
AFFILIATE OF A HOLDING COMPANY OF THE BIN LADEN GROUP HAS
BEEN ENGAGED IN ENGINEERING AND CONSTRUCTION PROJECTS UNDER
FMF-FUNDED CONTRACTS FOR THE EGYPTIAN MILITARY FOR SEVERAL
YEARS. TEL CLAIMS IT WAS BANNED FROM COMPETING FOR NEW
EGYPTIAN MILITARY CONTRACTS ACCORDING TO EGYPTIAN MILITARY
INTELLIGENCE INSTRUCTIONS IN MARCH 1996. THE BUSINESSMEN
UNDERSTAND THAT THE BAN MAY BE THE OUTGROWTH OF CONCERNS
ABOUT THE BIN LADEN FAMILY CONNECTIONS WITH TERRORIST OSAMA
BIN LADEN. HOWEVER, THEY WANT TO BE SURE THAT THE BAN IS
NOT THE RESULT OF MISTAKEN IDENTITY OR OF A PRIOR TEL
RELATIONSHIP WITH ANOTHER COMPANY IN EGYPT. THEY ASKED
THAT WE CHECK AND, IF POSSIBLE, LET THEM KNOW THE SOURCE OF
THE MISUNDERSTANDING. IF THE PROHIBITION IS INSOLUBLE, TEL
WILL PLAN TO REFOCUS ITS COMMERCIAL EFFORTS. END SUMMARY


3. (C) FOLLOWING THEIR ATTENDANCE AT AMBASSADOR WALKER'S
ADDRESS TO THE US-ARAB CHAMBER OF COMMERCE THIS MORNING,
WASHINGTON REPRESENTATIVE FOR THE BIN LADEN GROUP (AND
RETIRED FSO) PHIL GRIFFIN AND VICTOR PIETKIEWICZ, VP OF
TECHNASTER ENGINEERING INC. (TEI),OF NEW JERSEY (A BIN
LADEN AFFILIATE) MET WITH DESK OFFICER KELLY, NEA/ENA
DEPUTY PHILO DIBBLE AND JEFF DONALD, FROM E/CBA.
PIETKIEWICZ REQUESTED THE MEETING TO DISCUSS HIS BUSINESS
CONCERNS IN EGYPT. TEL, HE EXPLAINED, IS A USG(DSAA)-
QUALIFIED CONTRACTOR WHICH HAS BEEN DOING BUSINESS WITH THE
GOE FOR A NUMBER OF YEARS. THEY ARE CURRENTLY BIDDING ON
$60 MILLION IN PENDING GOE TENDERS AND HAVE BEEN LISTED AS
A BIDDER FOR A WAREHOUSE DEPOT (3 BUILDINGS) FOR THE
EGYPTIAN MILITARY.


4. (C) RECENTLY, PIETKIEWICZ CONFIDED, HE LEARNED FROM A
CONTRACTS FACILITATOR AT THE ARMY CORPS OF ENGINEERS THAT
THE EGYPTIAN MILITARY IS BACKING OFF DOING BUSINESS WITH
TECHMASTER. PIETKIEWICZ NOTED THAT HE HAD OBTAINED A COPY
OF AN OFFICIAL GOE MEMO DATED MARCH 1996, STATING THAT THE
26TH MILITARY INTELLIGENCE UNIT HAD DETERMINED THAT TEI MAY
NOT ENTER INTO CONTRACTS FOR ANY NEW MILITARY CONSTRUCTION
PROJECTS IN EGYPT (NFI). WE DID NOT SEE THIS LETTER.


5. (C) AT THIS POINT, GRIFFIN ADDED THAT AT ABOUT THE SAME
TIME, HE HAD BEEN INTERVIEWED BY THE FBI CONCERNING THE BIN
LADEN FAMILY AND THEIR CONNECTION WITH OSAMA BIN LADEN.
FOLLOWING THAT DISCUSSION, HE SAID, IN APRIL 1996, HE
FACILITATED A MEETING BETWEEN HASSAN BIN LADEN AND THE FBI.


6. (C) PIETKIEWICZ SAID HE HAD EXCELLENT RELATIONS WITH
THE EGYPTIAN MILITARY BOTH IN CAIRO AND IN THE EMBASSY
(EPO) IN WASHINGTON. HE WAS THEREFORE PERPLEXED BY THE
CHANGE OF HEART IN DEALING WITH HIS COMPANY. HE HAD NO
BUSINESS OR FINANCIAL PROBLEMS WITH THE GOE. HE OPINED
THAT PERHAPS THERE WAS A MISUNDERSTANDING DUE TO HIS
COMPANY'S EARLIER AGENCY RELATIONSHIP WITH (RET.GEN.)
MOHAMED EL SHERBINI, CEO OF THE SYSTEMS ENGINEERING GROUP
IN EGYPT. IT SEEMS THAT SHERBINI ALSO REPRESENTED SEACOR,
A COMPANY WHICH HAS BEEN BANNED FROM DOING BUSINESS IN
EGYPT, HE CLAIMED, DUE TO A "FAILED PROJECT". ANOTHER
POSSIBILITY THAT CAME TO MIND WAS THAT THE GOE HAS MISTAKEN
HIS COMPANY FOR ANOTHER COMPANY BY THE SAME NAME.


7. (C) WHILE GRIFFIN NOTED "AT TIMES" SOME OF THE BIN
LADEN FAMILY ARE HARASSED UPON ENTRY IN EGYPT, HE ADMITTED
THAT OTHER BIN LADEN AFFILIATE COMPANIES ARE CURRENTLY
OPERATING IN EGYPT, WITHOUT RESTRICTION. WHILE TECHMASTER
ENGINEERING IS BANNED FROM NEW CONTRACTS WITH THE EGYPTIAN
MILITARY, THIS BAN DOES NOT TO THEIR UNDERSTANDING APPLY TO
NON-MILITARY ENDEAVORS, NOT TO ON-GOING MILITARY CONTRACTS.


8. (C) PIETKIEWICZ EXPLAINED THAT HIS PRINCIPAL CONCERN AT
THIS POINT IS NOT TO TURN THE TIDE, BUT TO RECONFIGURE HIS
FIVE-YEAR PLAN TO REFLECT THE REALITY OF THE SITUATION IF
THE BAN ON TECHMASTER IS NOT REVERSIBLE. WHILE HE PREFERS
TO DEAL WITH THE CERTAINTY OF EGYPTIAN MILITARY
PROCUREMENT, HE NEEDS TO BE PRAGMATIC ABOUT HIS BUSINESS
DEALINGS.


9. (C) COMMENT: EMBASSY MAY WISH TO PROVIDE GUIDANCE
WHICH WE CAN PASS ALONG TO PIETKIEWICZ IF THIS APPEARS TO
BE A CASE OF MISTAKEN (CORPORATE) IDENTITY OR IF EL -
SHERBINI OR SEACOR HAVE IN SOME WAY TAINTED THE BUSINESS
ENVIRONMENT FOR TEI. IF, AS IT APPEARS TO US, THE BAN ON
TEL HAS TO DO WITH EGYPTIAN SECURITY CONCERNS, WE WILL
REFRAIN FROM PROVIDING A SUBSTANTIVE RESPONSE TO
PIETKIEWICZ.


ALBRIGHT