US embassy cable - 05YEREVAN1811

C O N F I D E N T I A L SECTION 01 OF 05 YEREVAN 001811 
 
SIPDIS 
 
DEPARTMENT FOR EUR/CACEN, EUR/SNEC 
DEFENSE FOR OSD DASD MACDOUGALL, SCOTT SCHLESS, AMER LATIF 
DEFENSE FOR DSCA DIANE LAMB 
USMISSION OSCE FOR KIT TRAUB 
 
E.O. 12958: DECL: 10/07/2015 
TAGS: PARM, PGOV, PREL, MARR, AM 
SUBJECT: ARMENIA:  MORE PROGRESS ON DEFENSE COOPERATION 
 
REF: YEREVAN 1407 
 
Classified By: DCM A.F.Godfrey for reasons 1.4(b,d). 
 
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SUMMARY 
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1. (C) During September 28-29 Bilateral Defense Consultations 
(BDC) in Yerevan, the Armenian military's senior leadership 
indicated an encouraging commitment to openness and 
transparency, engaging in straightforward discussions 
centered on Armenia's current threat environment.  According 
to Minister of Defense Serzh Sargsyan, the defense assessment 
draft -- a major subject of this year's BDC -- accurately 
describes Armenia's military structure, capabilities and 
needs, but recommendations for defense spending cuts and 
force reduction ignore regional threats and political 
reality.  The U.S. defense assessment team -- led by OSD's 
Principal Director for Eurasia Scott Schless -- will use 
formal GOAM comments on the recommendations (due November 7) 
to complete an implementation plan by mid-November.  In 
separate BDC discussions, the Armenian delegation agreed to 
USG proposals on outstanding bilateral military support 
issues (para 8).  Schless thanked Armenia for its commitment 
to remain with the international coalition in Iraq, and 
Minister of Defense Serzh Sargsyan said Armenia would stay 
engaged with the coalition.  End Summary. 
 
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CONSULTATIONS LAY FIRM FOUNDATION FOR FURTHER PROGRESS 
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2. (C) The U.S. defense assessment team's draft -- a major 
subject of this year's Bilateral Defense Consultations (BDC) 
-- "does a good job" describing Armenia's military structure, 
capabilities and needs, according to Minister of Defense 
Serzh Sargsyan.  The Armenian side took pains to show it was 
taking the defense assessment seriously; the Minister, Chief 
of General Staff and all Deputy Defense Ministers were 
present and engaged during the briefing.  Deputy Minister of 
Defense and Head of the Armenian delegation 
General-Lieutenant Artur Aghabekyan, said the GOAM needed 
until November 7 to review the recommendations (para 8) and 
prepare official GOAM comments.  The U.S. defense assessment 
team plans to use the GOAM's comments to complete the final 
chapter of the assessment, the 
implementation plan. 
 
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DEFENSE SPENDING CUTS, TROOP REDUCTION PROBLEMATIC 
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3. (C) During the BDC, the U.S. defense assessment team 
recommended broad changes for the Armenian armed forces in 
defense spending, troop levels, force structure, policy and 
planning, command and control, training and education, 
modernization, procurement, and logistics systems (para 9). 
Aghabekyan said that while many of these recommendations 
"could be embarked upon immediately," recommendations that 
would alter Armenian military 
spending, force strength, and command and control are 
untenable while the conflict over Nagorno-Karabakh remains 
unresolved.  "We are watching the reports," Aghabekyan said 
at one point.  "Azerbaijan claims they are spending more 
money on defense than we spend on our entire national budget. 
 How can we reduce our spending?  How can we reduce 
the size of our forces?" 
 
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DEFENSE MINISTER SAYS ARMENIA TO REMAIN ENGAGED 
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4. (C) In a private conversation with Minister of Defense 
Serzh Sargsyan, Scott Schless, OSD's Principal Director for 
Eurasia -- who led the U.S. delegation -- thanked Armenia 
for its commitment to remain with the international coalition 
in Iraq.  Sargsyan said Armenia would remain engaged with the 
coalition.  Schless reiterated USG offers to assist Armenia 
in implementing its defense reforms, including developing a 
national security strategy and a non-commissioned officer 
(NCO) corps. 
 
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DEFENSE MINISTER ON THE RECORD FOR DEFENSE REFORM 
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5. (C) Addressing attendees at the NATO Parliamentary 
Assembly Rose-Roth Seminar in Yerevan on October 7, 
Sargysan's speech, titled "Defense Reform in the South 
Caucasus" included portions taken directly from the defense 
assessment team's recommendations.  Sargsyan told 
participants that Armenia was committed to developing a 
national security strategy document by 2007, which the GOAM 
plans to "widely disseminate for public and parliamentary 
debate and support."  Sargsyan also said Armenia was 
committed to increasing civilian control of the military and 
meeting NATO standards for interoperability in "expanded 
peacekeeping missions."  Comment:  Sargsyan's public 
comments, echoed his private conversations with Schless, and 
put the MOD on public record as committed to implementing 
some of the BDC's most important conclusions.  End Comment. 
 
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FOREIGN MILITARY FINANCING STILL A POINT OF CONTENTION 
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6. (C) Aghabekyan repeated GOAM hopes (reftel) that the 
defense assessment will provide a clear path to bring 
Armenian military structures in-line with NATO standards and 
will lead to avenues for expanding Armenia's peacekeeping 
force.  Aghabekyan acknowledged that the USG has committed 
more than USD 19 million in Foreign Military Financing (FMF) 
since FY2002 to assist the GOAM with these goals, but added 
that FMF restrictions impeded the Armenian 
military from modernizing its army's communication system. 
DSCA and ODC officers who participated in the BDC explained 
that FMF must go toward purchases that facilitate 
interoperability in deployment and joint exercises, and 
suggested Aghabekyan use GOAM funds to purchase communication 
equipment.  (Comment:  The Armenian Ministry of Defense has 
been reluctant in the past to commit significant national 
funds in this area.  We believe that 
developing the Armenian Peacekeeping Unit's deployable 
medical capability would fit a niche in the Global War on 
Terrorism, and would be a much wiser use of FMF.  End 
Comment.) 
 
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COMMENT: STRAIGHTFORWARD, OPEN DISCUSSION ENCOURAGING 
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7. (C) During the September 28-29 BDC, the Armenian 
military's senior leadership indicated an encouraging 
commitment to openness and transparency, engaging in 
straightforward discussions which centered mainly on 
Armenia's defense assessment and US-Armenian military 
cooperation.  According to Aghabekyan, the GOAM is not in a 
position to implement defense assessment recommendations that 
would significantly alter Armenia's military system while the 
conflict over Nagorno-Karabakh remains unresolved.  Schless 
emphasized the importance of beginning the reform 
recommendations and not waiting until the conflict is 
resolved.  We believe that military leaders are poised to 
make a good-faith effort to implement less controversial 
recommendations particularly involving policy planning, 
training, and education.  General-Lieutenant Aghabekyan was 
particularly interested in learning about how DOD hires and 
trains its civilian employees.  Schless reviewed the 
different avenues of employment for civil servants, including 
internships, and explained the different categories of 
civilian personnel (policy, budget, procurement specialists) 
who work in DOD.  Though the GOAM's true commitment to the 
defense assessment may only become apparent after the USG 
hands over the finalized defense assessment document in 
mid-November, continued engagement from the highest levels of 
the Armenian military demonstrates a commitment well beyond 
participation levels of previous years. 
 
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SUMMARY OF KEY DEFENSE ASSESSMENT RECOMMENDATIONS 
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8. (SBU) Summary of key recommendations from the Defense 
Assessment: 
 
--Armenia should embark immediately on a deliberate program 
to develop a cadre of civilian defense specialists who can 
assume policy positions in the Ministry of Defense and other 
defense institutions. 
 
--Draft, staff among the ministries, and publish a National 
Security Strategy and a National Military Strategy in 2006. 
--Establish and institutionalize a planning, programming and 
budget system, similar to systems used by NATO and its 
members. 
 
--All Armenian military units should be subordinated to the 
Chief of the General Staff; no military units, including 
combat support and combat service support units, should be 
under the direct command and control of the Minister of 
Defense or his staff. 
 
--Reorganizing the Ministry of Defense and the General Staff 
to establish an efficient organization that mirrors those 
institutions found in Euro-Atlantic defense establishments 
should be a near-term objective for Armenia. 
 
--Within the Ministry of Defense, the Chief of the General 
Staff (as the senior operational commander and the senior 
military officer in the Armenian armed forces) should not be 
the First Deputy Minister of Defense. 
 
--The Chief of the General Staff should be subordinated to 
the Minister of Defense in times of peace, crisis, or war. 
 
--Restructure the Armenian armed forces by 2015 to include 
approximately 20,500 active and reserve military personnel 
and 500 civilian personnel. 
 
--Organize land forces into three main elements: 1) One 
peacekeeping force that includes by the mid-term two light 
infantry battalions (peacekeeping) - with the possibility to 
add a third peacekeeping battalion in the future; 2) Two 
infantry brigade combat teams of two motorized light infantry 
battalions, one mechanized infantry battalion, combat 
support, and combat service support units; and 3) one reserve 
motorized infantry brigade combat team. 
 
--Organize the Aviation and Air Defense Forces into three 
main elements:  1) one rotary-wing aviation wing; 2) one 
fixed-wing aviation wing; and 3) one integrated air 
surveillance/air defense brigade. 
 
--Establish a reserve system based on units able to mobilize 
rapidly. 
 
--Training is an area that should receive considerable 
emphasis within the Armenian armed forces starting in the 
immediate near-term. 
 
--Develop a professional Non-Commissioned Officer corps (NCO) 
and train NCOs as junior leaders based on Euro-Atlantic 
models and doctrine. 
 
--Consolidate basic training and sequential education for 
Armenian armed forces officers and NCOs. 
 
--Design, develop, and implement a comprehensive program to 
improve English language ability in its officer corps. 
 
--Consolidate all existing modernization and procurement 
programs into a prioritized, procurement and modernization 
plan. 
 
--Improving operational readiness does not require the 
Ministry of Defense to procure increased numbers of tanks, 
ACVs, and aircraft to meet Conventional Forces in Europe 
Treaty allocations. 
 
--Implement centralized logistics planning and decentralized 
logistics execution. 
 
--Designate the General Staff the principal logistics 
directorate for the Armenian armed forces. 
 
--Continue consolidation of Ministry of Defense facilities. 
 
--Prioritize infrastructure projects that will improve 
readiness and quality of life. 
 
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BILATERAL DEFENSE CONSULTATIONS SUMMARY OF CONCLUSIONS 
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9. (SBU) USG and Armenian delegations to the September 28-29 
Bilateral Defense Consultations (BDC) agreed on the following 
conclusions: 
Defense Assessment: 
--The Ministry of Defense agrees to provide comments on the 
defense assessment by November 7, 2005. 
 
--The final defense assessment will be used to develop 
Armenia's Individual Partnership Action Plan (IPAP). 
 
--The United States and Armenia agree to review progress on 
defense assessment implementation annually at the BDC. 
 
National Security Strategy/Individual Partnership Action Plan 
(IPAP): 
 
--The United States will provide assistance to the Government 
of Armenia in the development of the Armenian National 
Security Strategy. 
 
--The United States will assist Armenia in the implementation 
of the Individual Partnership Action Plan. 
 
--The United States and Armenia will work to ensure bilateral 
and multi-lateral programs are not redundant. 
 
--Armenia will participate in the next South Caucasus 
Clearinghouse in November 2005, in Riga, Latvia. 
 
Peacekeeping: 
 
--The United States will utilize State Partnership Program 
(SPP), Joint Contact Team Program (JCTP), International 
Military Education and Training (IMET), and Foreign Military 
Financing (FMF) to support development of Armenian 
peacekeeping capabilities. 
 
--Armenian lessons learned from Iraq will be shared with 
Allied Command Transformation. 
 
--The United States will send a survey team to Armenia in 
order to determine requirements for peacekeeping battalion. 
 
Non-Commissioned Officer Corps Development: 
 
--The Kansas National Guard will provide information on 
Non-Commissioned Officer (NCO) Corps development. 
 
--Joint Contact Team Program events to support 
familiarization with USNCO training and education facilities. 
 
--Armenia will identify officer and enlisted candidates for 
US events. 
 
Disaster Response: 
 
--EUCOM will support Armenian disaster response through 
seminars and exercises. 
 
--Armenia will host RESCUER exercise in 2006. 
 
--The Kansas National Guard will continue its efforts to 
enhance Armenia's interagency coordination in disaster 
response. 
 
Foreign Military Financing/International Military Education 
and Training: 
 
--US will continue to support enhancement of interoperability 
with NATO forces and peacekeeping capability through Foreign 
Military Financing. 
 
--Armenia will use in-country English language training 
program to prepare International Military Education and 
Training (IMET) candidates. 
 
--In accordance with defense assessment recommendation, use 
E-IMET for training of Ministry of Defense civilians. 
 
--ODC and Armenian Ministry of Defense will fully utilize 
IMET funds for FY06. 
 
State Partnership Program: 
 
--The Kansas National Guard will conduct a civic visit in 
spring 2006. 
 
--Kansas will host the Armenian Minister of Defense in the 
last week of October 2005. 
--Armenia will identify participants for all State Partner 
events. 
 
--The United States and Armenia will develop an annual 
cooperation plan for the State Partnership Program. 
 
Deployable Medical Capability: 
 
- The United States will continue to follow-up on Armenia's 
Letter of Request submitted for Expeditionary Medical Support 
System (EMEDS). 
 
- Kansas National Guard will provide training/assistance on 
deployment maintenance, and operation of medical response 
capability. 
 
- Armenia will identify personnel to train and operate this 
deployable capability. 
 
10. (U) Office of Secretary of Defense (OSD) Principal 
Director for Eurasia Scott Schless has cleared on this 
message. 
EVANS