US embassy cable - 05PRAGUE892

C O N F I D E N T I A L PRAGUE 000892 
 
SIPDIS 
 
E.O. 12958: DECL: 06/06/2015 
TAGS: ETTC, KSTC, PARM, PINR, PREL, EZ, VM, PK 
SUBJECT: CZECH PROPOSAL FOR PASSIVE RADAR SYSTEM TO VIETNAM 
RENEWED; DEMO MODEL TO PAKISTAN EXPECTED SOON 
 
REF: A. A:(2004) SECSTATE 172966 
     B. B:PRAGUE 860 
 
Classified By: DEPUTY POLITICAL COUNSELOR MARK CANNING, REASONS 1.4 (B) 
 and (D) 
 
 1 (C) Deputy Foreign Minister Jan Winkler told DCM in a June 
3rd meeting that the Czech Republic is considering the sale 
of the passive surveillance system VERA-E, in a simplified 
non-NATO version, to Vietnam, and would like to consult with 
the US on this.  Winkler explained that French and Swedish 
exporters have recently expressed interest in Vietnam and 
that has prompted the Czech firm ERA to renew its own sales 
efforts there. 
 
2. (C) The MFA initially denied this application last Fall 
(U.S. views on sale given Reftel A).  The manufacturer, ERA, 
withdrew the application, but resubmitted it in March.  At 
that time, the MFA said that its position hadn't changed and 
that the sale was not in the interest of the Czech Republic 
or its allies.  ERA said it had new information to present 
with the resubmission and presented this last week (June 2). 
Most of the new information involved claims by ERA of sales 
or proposed sales of similar radar and surveillance equipment 
to Vietnam by other European states, including Germany, 
France, Sweden and Poland. 
 
3. (C) In a separate June 3rd meeting,  Petr Kaiser, head of 
the MFA's licensing office, told Embassy Pol-Mil officer that 
ERA wants to design and sell to Vietnam a non-NATO version of 
the VERA-E and is ready to consider serious reductions in the 
capability of the system.  The Czech Ministry of Defense, 
which has been financially supporting VERA for many years, is 
also, according to Kaiser, considering this. 
 
4. (C) Kaiser thought there could be a meeting soon to 
discuss the concept of a non-NATO VERA-E.  He wondered 
whether the US would like to have some input in the 
discussion about what capabilities a non-NATO machine might 
have, or what kind of pre-sales and post-sales safeguards 
non-NATO transactions might require. 
 
5. (C) Kaiser argued that ERA is trying to be a responsible 
corporation. He revealed that ERA had a board meeting within 
the last two weeks to discuss the ongoing suit, filed by 
Czech arms dealer Omnipol, over last year's canceled license 
for the sale of VERA-E to China.  At that meeting ERA 
representatives decided to go against Omnipol and not be a 
party to the suit.  Apparently, Kaiser reasoned, some at ERA 
feel it is not appropriate to sell VERA-E to China at this 
time. 
 
6. (C) Kaiser cautioned that the proposed sale to Vietnam is 
an issue that is not going to go away anytime soon. 
 
7. (C) Meanwhile, in a related matter,  Kaiser informed 
Embassy Pol-mil officer that Pakistan has asked for a model 
of ERA's passive surveillance system ASDD to begin testing. 
The Czechs plan to loan this model, for a couple of weeks. 
Kaiser said the approval for this loan is in the pipeline and 
could be given within the next 2 weeks. 
 
8. COMMENT: (C)  As discussed Reftel B, the Czech MFA has 
offered assurances that they want to continue consulting with 
USG on VERA sales.  Embassy believes it is in the USG 
interest to engage the Czechs in a discussion on a non-NATO 
version of VERA.  In December, 2004, the Czech MFA asked for 
the USG opinion on a proposed Pakistani purchase of a less 
capable version of VERA.  The absence of a USG response has 
left the Czechs to decide for themselves what technical 
capabilities are appropriate and what conditions to attach to 
the sale.  Post is aware that the U.S. won't have the chance 
to test its own VERA-E until this fall. Nevertheless, post 
encourages Washington to consider the Czech offer to discuss 
what modifications might be appropriate for a non-NATO 
version of the VERA-E. 
 
9. ACTION REQUEST: (C)  Please indicate Washington's 
willingness to begin a technical discussion on a possible 
non-NATO version of the VERA-E, and Washington's views on the 
proposed sale of such a device to Vietnam. 
CABANISS