US embassy cable - 05CAIRO2897

C O N F I D E N T I A L CAIRO 002897 
 
SIPDIS 
 
E.O. 12958: DECL: 04/13/2015 
TAGS: PREL, MASS, CH, EG 
SUBJECT: MOD ADVISOR CLAIMS LIMITED EGYPTIAN MILITARY 
INTERESTS IN CHINA 
 
Classified by ECPO Counselor John Desrocher for reasons 1.4 
(b) and (d). 
 
1.  (C)  On April 13, PolOff asked senior MoD advisor MG 
Fouad Abd al Haleem about the depth of MoD interests in 
China.  (Note:  Defense Minister Tantawi visited China in the 
fall of 2004, the Chinese Defense Minister just concluded a 
visit to Egypt, the Egyptian Minister of Military Production 
is in China this week, and the press reports a possible visit 
to China by President Mubarak later this year.  The MoD is 
sensitive about questions regarding its relations with third 
countries, yet MG Fouad had accompanied the MoD delegation to 
China and is well placed to address potential MoD procurement 
interests in particular.  End note.)  MG Fouad responded by 
citing a "service life extension" program for 30-year-old 
anti-tank missile systems; Egypt still had these systems in 
service and sought a cost-effective way to extend their 
utility.  He said the MoD had explored options with China and 
Russia. 
 
2.  (C)  Elaborating on his sense of China's military 
offerings, MG Fouad said that during his visit to China he 
had seen a large exhibition of defense equipment which 
included many items similar to arms and munitions produced in 
Egypt.  He said China offered "nothing sophisticated," 
although it had many systems that would constitute a marginal 
upgrade from existing stocks in Egypt.  He offered the 
example of the 120mm mortar which Egypt produces, noting that 
China had an enhancement on offer for about 100,000 USD per 
unit.  Fouad said the marginal enhancement was not worth the 
price.  Adding that the Chinese F-7 aircraft had "limited 
capability" ("slightly better than the K-8 trainer" or the 
MIG 21), MG Fouad summed up the China experience by stating 
that "they do not have what we are looking for."  He asked 
rhetorically why Egypt would take interest in planes with 
"low maneuverability" when they had F-16's already in the 
inventory. 
 
3.  (C)  MG Fouad further noted that Defense Minister Tantawi 
prefers not to travel internationally and generally makes one 
trip per year.  He had traveled to the U.S. in late 2002, 
France in 2003, and China in 2004.  He said the reciprocal 
visits with China were "just to keep contact," as was 
Tantawi's prior visit to France. 
 
4.  (C)  Regarding the Minister of Military Production's trip 
to China, MG Fouad said that a large percentage of Egypt's 
military production lines were dormant, having already 
produced the requisite number of the systems they were set up 
to manufacture.  Given the fact that Chinese versions of 
similar weaponry might constitute an upgrade over those 
produced in Egypt, the Minister was reportedly on a mission 
to analyze the potential benefits of restarting Egypt's 
production lines to refit (upgrade) existing Egyptian weapons 
stocks with Chinese technology.  The Minister was essentially 
"looking for jobs," he stated. 
 
5.  (C)  Comment:  Egypt's potential interests in China 
undoubtedly go deeper than the analysis suggested by MG 
Fouad, although we find his presentation credible in terms of 
describing the primary intent of reciprocal military visits. 
Mubarak's trip to China may be an opportunity to more fully 
ascertain the breadth and depth of Egypt's political 
interests.  End comment. 
 
 
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http://www.state.sgov.gov/p/nea/cairo 
 
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State Department's Classified SIPRNET website. 
 
GRAY