US embassy cable - 02ANKARA8717

C O N F I D E N T I A L SECTION 01 OF 04 ANKARA 008717 
 
SIPDIS 
 
 
OSD FOR DASD BRZEZINSKI AND CAPT WILKINS; DSCA FOR J. 
FARMER AND LT. COL BUCHHOLTZ; STATE FOR EUR/SE AND PM/RSAT 
 
 
E.O. 12958: DECL: 08/04/2012 
TAGS: MASS, MARR, PREL, TU 
SUBJECT: US-TURKEY HIGH-LEVEL DEFENSE GROUP MEETING FOLLOW 
UP:  REQUEST TO CLOSE OUT PENDING ACTION ITEMS BEFORE 
DECEMBER 16-18 WORKING GROUP MEETINGS. 
 
REF: A) ANKARA 6286 B) ANKARA 5767 C)ANKARA 3828 
 
 
Classified by Deputy Chief of Mission Robert Deutsch. 
Reasons:  1.5 (B and D). 
 
 
1. (U) This is an action request.  See para 4. 
 
 
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BACKGROUND 
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2. (C) On April 16-17, the USG and GOT convened the 17th 
annual US-Turkey High-Level Defense Group (HLDG) meeting in 
Istanbul.  The HLDG's two working groups--the 
Political-Military Working Group (PMWG) and the Security 
Assistance Work Group (SAWG)-- agreed on a number of action 
items (ref c).  Since the 17th HLDG meeting, the USG has 
initiated and, in some instances, completed action on a 
number of items.  In early September, the USG submitted its 
first quarterly written status report to the Turkish General 
Staff (TGS) and the MFA (refs a-b). 
 
 
3. (C) In October 2002, OSD and TGS agreed to convene 
PMWG/SAWG meetings December 16-18 in Garmisch, Germany.  The 
primary purpose of the PMWG/SAWG meetings will be to exchange 
views on pol-mil/security assistance-related issues, review 
the status of the action items from the 17th HLDG meeting, 
and discuss the agenda for the 18th HLDG meeting in the US in 
2003.  OSD DASD Brzezinski and TGS Deputy J5 for Agreements 
MG Acar will co-chair the PMWG; DSCA Director for European 
Affairs Jeanne Farmer and TGS Deputy J5 BG Dumanli will 
co-chair the SAWG. 
 
 
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ACTION REQUEST 
-------------- 
 
 
4. (C) Embassy/ODC recommend that the USG present its second 
quarterly written status report to TGS at the December 16-18 
PMWG/SAWG meetings.  The more action items we can cross off 
our list prior to the PMWG/SAWG meetings, the more persuasive 
we will be in demonstrating to TGS leadership (which 
questioned our commitment to the HLDG since the last HLDG 
meeting in Istanbul) that we attach great importance to the 
US-Turkish bilateral military relationship and the HLDG as a 
forum to discuss issues of mutual concern to both countries. 
Embassy/ODC therefore recommend that DOD, in coordination 
with other agencies, complete action on as many of the 
outstanding PMWG/SAWG action items listed in para 5 as 
possible.  The Embassy recognizes that there may be some 
instances where Washington may have taken action on issues 
since the USG submitted its first quarterly status report in 
September.  In these instances, Embassy/ODC would appreciate 
any updated information that will assist us in drafting the 
second quarterly action items status report.  Embassy/ODC 
intends to submit for Washington's review a text of the 
second quarterly report in early December. 
 
 
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OUTSTANDING PMWG/SAWG ACTION ITEMS 
---------------------------------- 
 
 
5. (C) Below is a list of the outstanding action items from 
the PMWG/SAWG that Embassy/ODC believe require action prior 
to the PMWG/SAWG meetings.  There are other action items that 
are technically "outstanding" (i.e. facilitate smooth ISAF II 
to ISAF III transition) but where the USG has and will 
continue to take action well beyond the December meetings. 
We have elected not to focus on these items here, but intend 
to record the actions taken the by USG in our second 
quarterly status report. 
 
 
Outstanding Political-Military Working Group Action Items 
 
 
Action Item 2:  In order to complete the Space Cooperation 
MOU prior to MOU negotiations the Statement of Intent between 
the US and Turkish General Staff will be signed by the proper 
authorities at the level of US Assistant Secretary of Defense 
and Commander of the Turkish Air Force (TUAF). 
 
 
Recommendation:  DOD and TUAF signed the Statement of Intent 
on July 12, 2002.  Embassy/ODC understand that DOD 
subsequently initiated the inter-agency review/approval 
process to grant OSD permission to enter into MOU 
negotiations with the GOT, and that process is still 
underway.  Embassy/ODC recommend that appropriate Washington 
agencies complete the review process and authorize DOD 
(preferably prior to the PMWG December 16-18 meeting) to 
begin MOU negotiations with the GOT. 
Action Item 3: For space training courses, the US will 
investigate ways to find financing solutions (e.g. IMET, FMS). 
 
 
Recommendation:  During a November 20 meeting with visiting 
DSCA's Lt. Gen. Walters, the Turkish Air Force (TUAF) 
delivered a brief titled "Topics of Special Importance to the 
Turkish Air Force."  One of the items on the list was Space 
Training.  TUAF BG Yilmaz requested that the USG respond to 
TUAF's request to receive the 45-day training course 
(150C-200T) and also agree to provide military (as opposed to 
civilian contractor-provided) courses to Turkish officers. 
BG Yilmaz said that TUAF would raise the issue again at the 
PMWG meeting in December.  Embassy/ODC recommend that OSD and 
other appropriate USG agencies complete their review of 
TUAF's request and, if possible, deliver a favorable response 
to the TUAF at the PMWG meeting in December. 
 
 
Action Item 4:  The USG will provide a briefing on the way 
ahead for the Global War on Terrorism (GWOT) and Operation 
Enduring Freedom (OEF). 
 
 
Recommendation:  While the USG provided GOT civilian and 
military officials a number of briefings on the GWOT and OEF 
earlier this year (ref c), Embassy recommends that the USG 
provide the PMWG an updated briefing in December (with a 
recommendation for a power-point presentation) on our current 
GWOT/OEF activites as well as our current thinking for future 
activities. 
 
 
Action Item 5: Bilateral Working Groups (Partnership in Space 
Cooperation, Technical Experts Group, and the Caucasus 
Working Group) will meet separately and report to the 
HLDG/PMWG. 
 
 
Recommendation:  Embassy understands that all of the 
bilateral working groups have met since the HLDG meeting in 
April.  Embassy recommends that all three working groups 
brief the PMWG in December on the results of these meetings 
and outline future activities. 
 
 
Outstanding Security Assistance Working Group (SAWG) Action 
Items 
 
 
Action Item 1: The US agreed to look into the status of 
Turkey's third-country transfer requests of US-origin 
equipment to Bosnia-Herzegovina and Pakistan and report back 
to Turkey. 
 
 
Recommendation: Embassy/ODC recommend that the State 
Department, in conjunction with other appropriate agencies, 
complete review of the GOT's requests and provide GOT 
officials responses by NLT than the PMWG meeting.  If 
Washington requires additional information from the GOT in 
order to process the requests, we ask that Washington provide 
us the details prior to the December meetings and the Embassy 
will forward them to the GOT. 
 
 
Action Item 2: Turkey agreed to provide the US a list of open 
third-country transfer requests and to encourage other 
countries to sign the "blanket assurance" agreements with the 
US. 
 
 
Action Taken: Embassy/ODC have not received such a list, but 
understand that DSCA and/or the State Department (PM/RSAT) 
may have received one.  If Washington agencies have received 
such a list, we recommend that Washington initiate (and where 
possible complete) the inter-agency review process in time 
for the SAWG meeting and inform the Embassy of any action 
taken so it can be included in the second written quarterly 
status report. 
 
 
Action Item 3: Turkey and the US agreed that issues related 
to potential joint research and development and co-production 
opportunities should be discussed at the Defense Industrial 
Cooperation (DIC) Meeting. 
 
 
Recommendation:  Embassy/ODC believe this action item has 
been overtaken by events.  On November 11, 2002, ODC received 
a letter from TGS J5 Lt. Gen. Turgut advising that, as a 
result of an inter-governmental study (including TGS and 
MND), the GOT has decided to cancel the Turkish-US Defense 
Industrial Cooperation (DIC) and fold discussion of 
DIC-related issues into the HLDG's SAWG.  Given that the DIC 
has not met since March 1998, and senior MND leadership have 
resisted USG efforts to convene a meeting (they do not 
believe it is necessary), we concur with TGS's decision and 
recommend that Washington endorse it.  In our view, folding 
DIC issues into the SAWG (which is controlled by TGS) offers 
us the best chance to make progress on DIC-related issues. 
If Washington concurs, we recommend that Washington agencies 
come to the SAWG with a list of possible DIC-related areas of 
cooperation to present to TGS to demonstrate our commitment 
to furthering US-GOT defense industrial cooperation. 
 
 
Action Item 4: Turkey expressed a desire for the USG to 
continue to review Ankara's request to forgive FMS debts and 
interest due. 
 
 
Recommendation:  This issue remains a top TGS priority. 
Discussion of the issue within MFA and military circles has 
increased recently as a result of press reports that the USG 
is considering providing Turkey a large assistance package. 
Embassy/ODC understand the difficulties associated with debt 
forgiveness.  We also understand that the larger issue of 
assistance to Turkey is being discussed in other fora.  That 
said, we do not believe the USG can unilaterally drop the 
issue of FMF debt relief from the HLDG agenda.   The key here 
is to be honest and upfront with the Turks about the 
possibility of debt relief.  Therefore, we recommend that 
during the SAWG meeting in December, the USG brief TGS on our 
current thinking on the possibility of providing Turkey debt 
relief and inform them that assistance for Turkey in general 
is being discussed in other fora. 
 
 
Action Item 6:  The US will update Turkey on AEW&C Source 
Code availability as soon as the USAF completes the 
evaluation. 
 
 
Recommendation:  This is a high-priority and front-burner 
issue for TUAF and TGS.  Senior TUAF officers most recently 
raised this issue with Lt. Gen. Walters during his November 
19-22 visit to Ankara.  Embassy/ODC understand Washington is 
reviewing Boeing's request to reconsider some of the provisos 
placed on its export license, and that the review process is 
not likely to be complete until after December 4 -- the date 
of contract effectivity for the AEW&C.  While TGS and TUAF 
have told us they can "slightly" extend the contract 
effectivity date while the USG completes its review (we 
expect the same holds true for Boeing), they asked that the 
USG complete its review and notify the GOT of the results as 
soon as possible.  Embassy/ODC therefore recommend that the 
relevant Washington agencies complete their review advise the 
Turks of the decision, if possible before December 4, but NLT 
the SAWG meeting in December. 
 
 
Action Item 7: The US will continue to monitor the status of 
the EX-IM Bank Helicopter Guarantee Facility (HGF) loan 
request for SEA Hawk Helicopters project and provide support 
where possible. 
 
 
Recommendation:  This issue continues to be one of TGS's 
highest priorities (and the number one priority for the 
Turkish Navy).  TGS CHOD Ozkok raised it during his November 
5 meetings in Washington.  Embassy/ODC understand that 
Washington has not re-engaged Congress on this issue since 
Congress expressed its opposition to an extension some months 
ago.  Sikorsky's President/CEO recently told DCM that 
Sikorsky did not have alternative financing ideas.  He 
expressed hope that, if the EX-IM HGF program could not be 
extended, terms (especially the high exposure fee) of the 
Defense Excess Loan Guarantee (DELG) program could be eased. 
From our vantage point, we see two options: (1) re-engage 
relevant members of Congress and make the case for an 
extension or (2) not press for an extension, let the issue 
die and examine alternative financing mechanisms to assist 
the Turks acquire the helicopters.   In our view, maintaining 
the current position -- "DOD supports an extension" -- is not 
sustainable and in many ways is misleading the Turks.  We 
understand that the extension of the HGF is one of the issues 
that is under consideration as part of a larger assistance 
package to Turkey.  We therefore recommend that Washington 
agencies reach a consensus position on whether the 
Administration intends to press for an extension of the HGF 
and brief the Turks on our position during the PMWG/SAWG 
meetings in December. 
Action Item 10: The US agreed to provide status updates of 
export license requests on specific licenses when requested 
by the Turkish Embassy in Washington. 
Action Taken: Embassy/ODC is not aware of specific requests 
made by the Turkish Embassy in Washington.  That said, we 
know TUAF, MFA and TGS are concerned about the status of 
Washington's review of Boeing's request for proviso waivers 
on its export license for the AEW&C program.  We therefore 
recommend that Washington agencies provide the Turkish 
Embassy in Washington regular updates on the inter-agency 
review related to the AEW&C program, as well as respond to 
any other outstanding requests from the Turkish Embassy that 
may exist. 
Action Item 11: The US agreed to investigate further to 
determine the best forum for the C4ISR system, software radio 
development and frequency management projects and inform 
Turkey. 
 
 
Recommendation: Embassy/ODC are unaware of any action taken 
on this issue.  We recommend that the appropriate Washington 
agencies undertake the necessary review and, if possible, 
provide the GOT a formal response NLT the SAWG meeting. 
 
 
Action Item 14:  The US recognizes late apportionment of IMET 
funds results in cancellation and loss of courses in January 
and February and will make every effort to provide funding in 
a timely manner.  This process is largely impacted 
by the USG budget process. 
 
 
Recommendation:  Embassy/ODC recommend that Washington brief 
the Turks at the SAWG meeting on the IMET funding and 
disbursement process, including those factors that may impact 
the timing of the disbursement of IMET funding.  We also 
recommend that Washington explain to TGS the reason for any 
delays that we may envision and, where possible, any steps 
the USG intends to take to expedite the delivery of IMET 
funding. 
 
 
Action Item 15:  For the pilot exchange program, a reply is 
expected from the USG about the revised GOT proposal on UH-60 
utility helicopter pilot exchange program. 
 
 
Recommendation:  In our first quarterly written report, we 
advised the GOT that the USG intended to provide the GOT a 
response to its revised proposal on UH-60 utility helicopter 
by September/October 2002.  It is our understanding that the 
USG has not yet provided a response.  We recommend that the 
USG provide the Turks a response NLT the SAWG meeting. 
 
 
Action Item 16:  The following HLDG will be hosted by the US 
next year. 
 
 
Recommendation: Embassy/ODC understand that OSD intends to 
host the 18th HLDG meeting in the US in spring 2003.  We 
recommend that OSD deliver at the December 16-18 PMWG/SAWG 
meetings a formal invitation from ASD Crouch to TGS D/CHOD 
Gen Buyukanit (with a specific date and venue to be determine 
later) offering to host the 18th HLDG in the US in spring 
2003.  We believe that such a gesture will demonstrate the 
importance we attach to the HLDG and our intention to follow 
through on our commitment to host the 18th HLDG meeting. 
 
 
Action Item 17:  Turkey and the US agreed to provide a 
quarterly written update (on the status of the action items). 
 The two sides agreed to meet in six months for another 
update and discussion. 
 
 
Recommendation:  Embassy/ODC recommend that the USG side 
provide its second quarterly written update at the PMWG/SAWG 
meeting in December. 
 
 
DEUTSCH