US embassy cable - 03ANKARA4016

C O N F I D E N T I A L ANKARA 004016 
 
SIPDIS 
 
 
STATE PM (DAS MAGGI) AND EUR/SE; DSCA FOR LT. GEN. WALTERS 
AND LTCOL BUCHHOLZ; DTSA FOR S. SEVIER; SAF/IA FOR W. 
MITCHELL; OSD FOR DUSD BRONSON; DTSA FOR S. SEVIER 
 
 
E.O. 12958: DECL: 03/19/2013 
TAGS: MASS, TU, PREL 
SUBJECT: TURKEY, BAE SYSTEMS AND SPEWS II:  FURTHER DELAY 
IN USG POSITION ON MLA RISKS LOSING DEAL ALTOGETHER 
 
(U) Classified by Ambassador W. Robert Pearson.  Reasons: 
1.5 (B and D). 
 
 
1. (U) This is an action request.  See para 5. 
 
 
2. (C) BAE Systems and the Turkish government have been 
trying to secure an amendment to an existing Manufacturing 
License Agreement (MLA) that re-hosts Turkish software and 
jamming routines on the new SPEWS II hardware since early 
2003.  Turkey's F-16 defensive system is based on the SPEWS 
"type" of program.  We understand the MLA amendment is 
currently with DOD and that while a number of offices there 
support the amendment, the US Air Force appears to have 
reservations.  The Turks have agreed to extend their contract 
with BAE until July 15 in the hope the USG will approve the 
amendment to the MLA.  If the MLA amendment is not approved 
by July 15, the Turks have indicated they may cancel the 
program and reactivate negotiations with the French or the 
Israelis. 
 
 
3. (C) We recognize possible concerns regarding release of 
sensitive technology to NATO Allies including Turkey.  We 
understand the proposed MLA amendment covers technology 
similar to that released to Turkey for earlier versions of 
the F-16 with the SPEWS I program in 1997.  The Country Team 
is not aware of any information that suggests that Turkey has 
not followed through on its commitments to safeguard and 
protect the technology it received under SPEWS I.  Turkey has 
a strong track record of safeguarding US technology. 
 
 
4. (C) If a positive decision is not reached by July 15 or if 
the USG disapproves the MLA amendment, there could be 
negative repercussions and this would be a setback for 
efforts to put the US-Turkish bilateral relationship back on 
track.  In the aftermath of OIF, we have been suggesting 
Turkey define its cooperation with the US to give renewed 
confidence to our work together.  Refusing to release 
technology that we would make available to other NATO Allies 
would raise concerns and questions about our sincerity. 
There are also sound business and policy reasons to approve 
the MLA amendment, including support for US defense industry 
in an important market and increased interoperability between 
Turkish and US systems.  Turkey,s 58 Block 50 F-16 aircraft 
do not have any electronic warfare capability, severely 
inhibiting their ability to support NATO and US-Turkey 
bilateral operations. 
 
 
5. (C) Action request:  The Embassy and ODC request that DOD 
agencies work to reach a consensus position in support of the 
MLA amendment and forward the MLA amendment to the State 
Department for final approval before the contract between BAE 
and the GOT expires on July 15.  If DOD is leaning toward 
opposing the MLA amendment, before Washington reaches a final 
inter-agency position, we suggest that Washington consider 
having SAF/IA and the Turkish Air Force meet in person to 
give SAF/IA an opportunity to explain to the Turks its 
concerns and give the Turks the same opportunity to assuage 
SAF/IA,s concerns. 
PEARSON