US embassy cable - 04ABUDHABI2972

C O N F I D E N T I A L ABU DHABI 002972 
 
SIPDIS 
 
STATE FOR NEA, NP/ECC AND PM/ODTC 
COMMERCE FOR BIS/OIP AND AS/EA/OC CHAIR DFLYNN 
DHS FOR CBP 
 
 
E.O. 12958: DECL ON 08/31/2014 
TAGS: BEXP, ETRD, ECON, TC, 
SUBJECT: UAE BORDER SECURITY TAKES ANOTHER STEP AHEAD 
 
1.(U) CLASSIFIED BY DEPUTY CHIEF OF MISSION RICHARD A. 
ALBRIGHT FOR REASON 1.5(b), (d)and (e) 
 
2. (C) BIS OFFICER MARY O'BRIEN MET WITH LOCAL 
REPRESENTATIVES OF RAYTHEON CORPORATION (PLEASE PROTECT) TO 
DISCUSS THEIR BUSINESS PROSPECTS IN THE UAE.  THE RAYTHEON 
REPS SAID THE UAE WOULD LIKE TO MOVE MORE TOWARD DIRECT 
COMMERCIAL SALES.  ACCORDING TO USLO CHIEF, THE UAE 
MILITARY DOES NOT LIKE TO PAY THE FMS SURCHARGE (2.5%). 
THE UAE ALSO BELIEVES THEY CAN SQUEEZE CONTRACTORS HARDER 
THAN THEY CAN THE USG, ESPECIALLY IN THE REALM OF OFFSETS; 
HOWEVER, CERTAIN U.S. TECHNOLOGIES WILL ONLY BE AVAILABLE 
THROUGH FMS. 
 
3. THE RAYTHEON REPS STATED THAT THE UAEG HAD RECENTLY 
AWARDED THEM A SOLE SOURCE CONTRACT WORTH APPROXIMATELY $1 
MILLION TO PROVIDE BORDER SURVEILLANCE AT THE UAE-SAUDI 
BORDER IN THE AREA OF GHWEIFAT AND AT THE UAE BORDER WITH 
OMAN NEAR AL AIN.  RAYTHEON WILL INSTALL A SYSTEM THAT 
INCLUDES NIGHT VISION, INFRARED AND OPTICAL CAMERAS, ALONG 
WITH SOFTWARE TO ENHANCE THE CAPABILITIES OF ALL THE 
HARDWARE.  IF THE UAEG THINKS THESE TEST INSTALLATIONS ARE 
SUCCESSFUL IT WILL ACQUIRE MORE RAYTHEON SURVEILLANCE 
SYSTEMS FOR ITS ENTIRE LAND BORDER.  RAYTHEON REPS NOTED 
THAT THE UAE IS CONCERNED THAT TERRORISTS COULD SEEK TO 
MOVE THEIR BASE OF OPERATIONS TO THE UAE AS SECURITY 
SERVICES IN NEIGHBORING COUNTRIES CONTINUE TO CRACK DOWN ON 
SUCH ACTIVITIES. 
 
4. (C) THE RAYTHEON REPS ALSO ADVISED THAT THEY ARE WORKING 
WITH THE COAST GUARD AND THE OIL COMPANIES TO DEVELOP 
SECURITY SYSTEMS FOR ONSHORE AND OFFSHORE OIL 
INSTALLATIONS.  THERE IS GREAT CONCERN HERE ABOUT THE 
VULNERABILITY OF THESE OIL INSTALLATIONS. 
 
5. (C) ALTHOUGH THE NATIONAL BORDER SECURITY PROGRAM IS A 
PET PROJECT OF MAJOR GENERAL HAMAD THANI AL RUMAITHY, UAE 
ARMED FORCES DEPUTY CHIEF OF STAFF, THE RAYTHEON REPS SAID 
THEY WERE ALSO DEALING DIRECTLY WITH THE VARIOUS SERVICES, 
INCLUDING SPECIAL OPERATIONS COMMAND (SOC), THE LAND FORCES 
AND THE NAVY.  THEY SAID EACH OF THE SERVICES IS INTERESTED 
IN HAVING THEIR OWN EQUIPMENT TO DEAL WITH BORDER SECURITY 
ISSUES AND THEY DO NOT ALWAYS COMMUNICATE WITH ONE ANOTHER. 
 
6. (C) NOTE: BIS OFFICER RECENTLY LEARNED THAT DUBAI 
CUSTOMS IS LOOKING TO IMPROVE ITS COASTAL SURVEILLANCE 
ALONG THE DUBAI CREEK, AT PORT RASHID AND JEBEL ALI PORT, 
AND ESTABLISH SUCH SURVEILLANCE SYSTEMS AROUND THE NEW PALM 
AND WORLD ISLANDS JUST OFF THE COAST OF DUBAI. 
 
7. (C) BIS OFFICER DISCUSSED EXPORT LICENSING ISSUES WITH 
RAYTHEON.  RECENTLY THE USG HAS PLACED ACCOUNTABILITY AND 
END USE MONITORING CONDITIONS ON SEVERAL LICENSES AND THE 
UAEG CONSIDERED THESE CONDITIONS ESPECIALLY ONEROUS.  THESE 
CONDITIONS HAVE JEOPARDIZED THE SALE OF U.S. TECHNOLOGY TO 
THE UAE, AN IMPORTANT COALITION PARTNER.  RAYTHEON SAID 
THAT THEY PLAN TO MEET IN THE FALL WITH DEFENSE, STATE AND 
COMMERCE LICENSING OFFICIALS TO PROVIDE THEM WITH 
INFORMATION ABOUT THE TECHNOLOGIES RAYTHEON IS LOOKING TO 
SELL TO THE UAE AND INFORMATION ABOUT THE UAE MILITARY. 
 
SISON