US embassy cable - 05ANKARA6507

UNCLAS SECTION 01 OF 02 ANKARA 006507 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT FOR PM/RSAT, PM/DTTC 
 
E.O. 12958: N/A 
TAGS: MARR, MASS, PGOV 
SUBJECT: TURKEY CONVINCED THAT PRELIMINARY USG LICENSE 
APPROVAL A NON-STARTER 
 
 
SENSITIVE BUT UNCLASSIFIED 
 
1. (SBU) SUMMARY: U/S for Defense Industries Bayar advised PM 
DAS Suchan that an Advisory Opinion issued by the USG to a US 
firm on a license request related to a Turkish defense tender 
meets the requirement for "preliminary government approval" 
contained in two recent Requests for Proposal (RFP) and 
agreed to revise the RFP wording to reflect that.   Major 
General Inak, head of the MND Economic and Technical 
Division, raised in a separate meeting his standard complaint 
that the US isn't doing enough to support the Turkish defense 
industry and pressed the USG to encourage US firms to invest 
in Turkey.  Suchan advised Inak of the USG policy change 
regarding re-transfer of curios and relics granted to foreign 
countries.  ACTION REQUEST: On Sept. 15, SSM submitted to us 
a one-word revision to the ATAK Helo RFP which SSM says is 
intended to recognize that a US Advisory Opinion meets SSM's 
requirement for preliminary government approval.  Post 
requests Department determination whether the language 
contained in paragraph 6 is acceptable to describe an 
Advisory Opinion.  END SUMMARY. 
 
2. (U)  Responding to a challenge issued to the Charge by 
Under Secretary for Defense Industries (Savunma Sanayi 
Mustesarligi - SSM) Murad Bayar for the US to send an expert 
to Turkey to discuss how Turkey could work with US firms 
within US export control policy to achieve its procurement 
goals (see reftel), PM DAS Greg Suchan and PolMilOff Kristin 
Dowley met with SSM and Ministry of National Defense (MND) 
officials in Ankara on Sept. 12 and 13.  Suchan raised USG 
concerns with wording contained in RFPs issued for the ATAK 
Helicopter (2/05) and utility helicopter (8/05) programs 
which states that "The Bidder shall provide preliminary 
government authorizations and/or licenses which depict that 
there exists no government or administrative policy or action 
which is inconsistent with any and all of the Program 
Objectives and the requirements of the Program as described 
under the RFP." 
 
3. (U) In a Sept. 12 meeting with Bayar and the SSM Aviation 
Department ATAK Helicopter project team, Suchan stated 
categorically that the USG cannot provide preliminary 
government approval of a license application.  He explained 
that the US Congress will not accept a license notification 
request without a signed contract.  This is true both in the 
case of US platforms and foreign platforms with US content. 
The most the USG could offer is an Advisory Opinion, which is 
submitted by a US firm and goes through the standard 
licensing review in DOS and DOD, but is not notified to 
Congress, and therefore does not/not constitute preliminary 
government authorization.  Advisory Opinions, like license 
applications, said Suchan, can take several months or more 
for approval.  Suchan also described a US Marketing License 
but suggested that it was not detailed enough to meet SSM's 
requirements.  (Note: Complete participant list at para. 11. 
End Note.) 
 
4. (SBU) According to Bayar, SSM wants to find a way to 
achieve its goals for the ATAK program -- integration of 
Turkish and other components onto a foreign platform as they 
come on-line -- that is consistent with US law and 
regulation.  Saying that it is in Turkey's best interest to 
have US firms in the competition, Bayer commented that he's 
"not concerned with the language contained in the tender if 
he can find a way to work with the US."  Bayar pronounced the 
Advisory Opinion as "something we can live with" and 
dismissed US congressional holds on license applications as 
rare occurrences, despite Suchan's reminders of past 
problems.  Suchan advised Bayer that the current ATAK RFP 
wording was inconsistent with the definition of a US Advisory 
Opinion and Bayar agreed to change the contract wording. 
 
5. (SBU) Suchan underscored that, based on his discussions 
with US defense firms and the American-Turkish Council (ATC), 
resolution of this issue would not necessarily satisfy US 
companies, many of whom had expressed significant concerns 
with other Terms and Conditions contained the helo tenders. 
Bayar claimed those concerns were being addressed directly 
with the participating companies. 
 
6. (SBU) On Sept. 15, SSM Aviation Department head Sedat 
Guldogan and ATAK Program Manager Demir ? called in Acting 
PolMilCouns and Office of Defense Cooperation Defense 
Cooperation in Armaments (ODC/DCA) Manager to pass a one-word 
revision to paragraph 12.2 of administrative section of the 
ATAK Helicopter RFP (provided in para. 2 above) to reflect 
SSM's acceptance of a US Advisory Opinion as meeting the 12.2 
requirement.  SSM asked us to submit the revised wording to 
Washington to determine whether it would meet the USG 
definition of an Advisory Opinion.  In response to Deputy 
PolMilCouns' suggestion that the continued use of the wording 
"government authorization" could still be problematic, 
Guldogan said that SSM wants to minimize the changes in order 
to avoid confusing the meaning for non-US bidders. 
 
7. (U) Begin text of revised paragraph 12.2 of he ATAK 
Helicopter tender: 
 
The Bidder shall provide preliminary (advisory) Government 
authorizations and/or licenses which depicts that there 
exists no government or administrative policy or action which 
is inconsistent with any and all of the Program Objectives 
and the requirements of the Program as described under the 
RFP. 
 
End Text. 
 
8.  (SBU) COMMENT: In our view, the addition of the word 
"advisory" to paragraph 12.2 of the ATAK Helo RFP, without 
the removal of the phrase "...Government authorization..." or 
any other revision to the language, would not appear to 
adequately describe a US Advisory Opinion.  However, we defer 
to Washington for a final analysis and for any suggested 
alternative language.  END COMMENT. 
 
9. (SBU) MG Omer Inak, in a separate meeting at MND on Sept. 
13, expressed annoyance with the US refusal to provide 
preliminary government approval, saying the RFPs should 
contain enough information for the US to give an approval. 
He then launched into his perennial mantra of inadequate USG 
support for the Turkish defense industry.  According to Inak, 
the US is not living up to its commitments under the 
bilateral Defense Economic Cooperation Agreement (DECA) to 
support the development of Turkey's national defense 
industry.  Bilateral trade is inadequate and consists 
primarily of Turkish purchases from US firms, and the USG 
must do more to convince private US industry to partner with 
Turkish firms as it has with companies in Europe.  Suchan and 
ODC Chief MG Sutton pointed out existing partnerships between 
US and Turkish firms; described Sikorsky's proposal to move 
its global Blackhawk production to Turkey; and noted Turkey's 
participation in the Joint Strike Fighter program.  Both 
emphasized that, in a free market society, it is up to 
Turkish companies to provide their merits to potential 
partners around the world, and noted the importance of a fair 
and impartial judicial system. 
 
9. (U) Suchan outlined for Inak a recent revision to US 
policy that will allow the review, on a case-by-case basis, 
of foreign requests to re-transfer US origin curio and relic 
items to a third party.  He noted US understanding that the 
Turkish General Staff (TGS) is considering the re-transfer of 
some WW II-era weapons.  Inak welcomed the news and promised 
to look further into the matter. 
 
10. (U) Bayar Meeting Participants: PM DAS Greg Suchan, 
PM/DTTC Officer Kristin Dowley, Charge d'Affaires Nancy 
McEldowney, A/DCM Tim Betts, ODC Chief, MG Peter Sutton, 
A/PolMilCouns Maggie Nardi, ODC/DCA Manager LTC Doug Kiser, 
SSM U/S Murad Bayar, SSM Deputy Under Secretary Faruk Ozlu, 
SSM Aviation Department Head Sedat Guldogan, SSM ATAK 
Helicopter Project Manager Demir ?, SSM Foriegn Relations 
Chief Asuman Vangolu, SSM Foreign Relations Officer Necati 
Subasi, other members of SSM ATAK Helicopter project team. 
MCELDOWNEY