US embassy cable - 04BRATISLAVA525

C O N F I D E N T I A L BRATISLAVA 000525 
 
SIPDIS 
 
 
DEPT FOR EUR/PRA (CORDOVA), EUR/SCE (KABUMOTO), NEA/ENA 
(BUTLER), VC (ELLIOT) 
OSD FOR KELLEY 
NSC FOR TEPPER 
 
E.O. 12958: DECL: 05/24/2014 
TAGS: MARR, MASS, ECON, PGOV, PINR, PREL, LO 
SUBJECT: POSSIBLE SLOVAK ARMS SALES TO LIBYA, CAMEROON, 
YEMEN, AFGHANISTAN, OR AZERBAIJAN 
 
REF: A. STATE 68238 
 
         B. BRATISLAVA 436 
 
CLASSIFIED BY: DCM SCOTT N. THAYER FOR REASON 1.4 (B). 
 
1. (C) SUMMARY AND REQUEST FOR GUIDANCE: PETER PENIASKA, HEAD 
OF THE SLOVAK ARMS FIRM PETINA INTERNATIONAL, IS SEEKING THE 
USG POSITION ON POTENTIAL SALES OF SLOVAK MILITARY EQUIPMENT 
TO LIBYA AND OTHER COUNTRIES.  PETINA IS ACTING AS A 
MIDDLEMAN TO ASSIST THE GOS IN DISPOSING OF STOCKPILED OR 
SURPLUS MILITARY MATERIEL.  HIS PROPOSALS ARE NOT FORMAL GOS 
INITIATIVES.  PENIASKA PROPOSED SELLING T-72 TANK PARTS TO 
LIBYA.  POST REQUESTS GUIDANCE AS TO WHETHER THE USG 
CONSIDERS THESE LETHAL EXPORTS PER REFTEL A.  WE ALSO REQUEST 
INFORMATION ON ANY OBJECTIONS THE USG WOULD HAVE TO THE OTHER 
POTENTIAL SALES, IN ANTICIPATION OF ENGAGING THE SLOVAK 
AUTHORITIES IF PETINA DECIDES TO MOVE FORWARD.  END SUMMARY. 
 
2. (C) ON 24 MAY 2004, PETER PENIASKA, HEAD OF THE SLOVAK 
ARMS FIRM PETINA INTERNATIONAL, ASKED TO SPEAK WITH EMBOFF TO 
FOLLOW UP ON PRIOR DISCUSSIONS CONCERNING POTENTIAL SLOVAK 
ARMS SALES (REFTEL B).  PENIASKA, WHO WOULD RECEIVE A 
COMMISSION ON ANY FUTURE SALES, CONTINUES TO BE SOMEWHAT 
CRYPTIC AND RELUCTANT TO SHARE DETAILS.  WHEN EMBOFF DIRECTLY 
QUESTIONED HIM ABOUT HIS MOTIVES, HE STATED THAT HE DECIDED 
TO SPEAK WITH A USG REPRESENTATIVE ON THE ISSUES BELOW AFTER 
TALKING TO SLOVAK MINISTER OF FINANCE IVAN MIKLOS.  IN THE 
ORIGINAL, EARLIER DISCUSSION, PENIASKA HAD REFUSED TO 
IDENITIFY POTENTIAL RECIPIENT COUNTRIES FOR THE POSSIBLE SALE 
OF ASSAULT RIFLES. IN THIS SECOND DISCUSSION, HE AT FIRST DID 
NOT WANT TO SAY MORE THAN THAT THE COUNTRY WAS LOCATED IN 
AFRICA. EMBOFF PRESSED HIM, AND HE FINALLY DISCLOSED THAT THE 
    RECIPIENT WOULD BE CAMEROON. (COMMENT: PENIASKA IS CLEARLY 
TRYING TO GET AN ADVANCE READOUT ON HOW USG WILL REACT SHOULD 
THE SLOVAK GOVERNMENT DECIDE TO MOVE FORWARD WITH ANY OF THE 
ARMS SALES DESCRIBED BELOW. END COMMENT.) 
 
3. (C) ACCORDING TO PENIASKA, THE SLOVAK GOVERNMENT COULD 
SELL 30,000 TYPE 58 ASSAULT RIFLES PLUS 40 MILLION ROUNDS OF 
AMMUNITION TO EITHER AFGHANISTAN OR CAMEROON. IF SOLD TO 
CAMEROON, THEY WOULD BE DESTINED FOR USE BY THE POLICE OR 
ARMED FORCES. 
 
4. (C) PENIASKA ALSO DESCRIBED A SECOND POTENTIAL ARMS SALE 
FOR SOME 150 T-72 TANKS, PLUS AMMUNITION.  POTENTIAL 
CUSTOMERS FOR THESE TANKS WERE THE MINISTRY OF DEFENSE (MOD) 
IN YEMEN OR THE MOD IN AZERBAIJAN.  BOTH THESE COUNTRIES HAD 
EXPRESSED INTEREST IN BUYING THE SLOVAK TANKS, ALTHOUGH THE 
YEMENI MOD HAD NOT YET PRESENTED AN END USER CERTIFICATE. 
THE TANKS WERE ABOUT 12 YEARS OLD AND IN EXCELLENT CONDITION, 
BECAUSE THEY HAD NOT BEEN USED MUCH. ABOUT 50 OF THE TANKS 
HAD ORIGINAL (RUSSIAN) RANGE FINDERS, AND THE REMAINDER WERE 
EQUIPPED WITH LASER/OPTICAL RANGE FINDERS. 
 
5. (C) A THIRD POSSIBLE SALE OF MILITARY EQUIPMENT IS TO 
LIBYA.  PENIASKA NOTED THAT LIBYA HAD ABOUT A USD 850 MILLION 
DEBT TO THE CZECH REPUBLIC AND SLOVAKIA; APPROXIMATELY USD 
200 MILLION OF THIS WAS DUE SLOVAKIA.  PENIASKA NOTED THAT HE 
HAD RECENTLY MET WITH THE LIBYAN AMBASSADOR TO SLOVAKIA AND 
THE LIBYAN MILITARY ATTACHE TO DISCUSS WAYS FOR LIBYA TO 
BEGIN REPAYING THE DEBT GRADUALLY.  THE LIBYAN OFFICIALS 
NOTED THAT THEY NEEDED SPARE PARTS FOR THEIR AGING T-72 
TANKS, AND THEY TALKED ABOUT A SPECIFIC POTENTIAL SALE OF 
    TANK SPARE PARTS WORTH USD 12 MILLION.  THE SLOVAKS INTENDED 
TO WORK TOGETHER WITH UNNAMED CZECH ARMS FIRMS TO FULFILL 
THIS DEAL, SHOULD IT GO FORWARD.  PENIASKA HAD SHARED THE 
DETAILS OF THIS DISCUSSION WITH MINISTER MIKLOS, WHO SAID HE 
WOULD SUPPORT SUCH A SALE AS LONG AS THE USG WAS NOT OPPOSED. 
 PENIASKA ADDED THAT HE HAD BEEN INVITED TO GO TO TRIPOLI TO 
DISCUSS 
DETAILS OF A DEAL AND HAD ORIGINALLY ACCEPTED THE INVITATION, 
BUT ON THE ADVICE OF MIKLOS HE CANCELLED THE TRIP PENDING A 
READOUT FROM USG ON POSSIBILITIES OF COMPLETING THIS SALE. 
PENIASKA CLAIMED THAT IF HE DOES GO TO LIBYA, HE INTENDS TO 
DISCUSS BROADER ISSUES OF TRADE AND SALES BETWEEN THE TWO 
COUNTRIES, NOT JUST MILITARY ARMS DEALS.  FOR INSTANCE, LIBYA 
WANTS TO BUILD A POWER PLANT, AND THE SLOVAKS INTEND TO 
PROPOSE PROVIDING MATERIALS TO HELP WITH THIS PROJECT. 
 
6. (C) COMMENT AND REQUEST FOR GUIDANCE: THE GOS ITSELF HAS 
NOT ENGAGED US ON ANY POSSIBLE ARMS SALES, SO PENIASKA'S 
REQUEST FOR USG APPROVAL IS AHEAD OF THE CURVE.  NONETHELESS, 
IN ANTICIPATION THAT THE GOS MIGHT DECIDE TO PURSUE ONE OR 
MORE OF THE SCENARIOS OUTLINED BY PENIASKA, WE REQUEST 
GUIDANCE ON THE USG REACTION TO THESE POTENTIAL DEALS. 
WEISER 
 
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