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Cablegate: Portugal: Recent Commercial Success Stories

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DE RUEHLI #0433 0511105
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R 201105Z FEB 08
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC 6632
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

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SIPDIS

SIPDIS

STATE PASS TO DOC/ITA/MAC DON CALVERT

E.O. 12958: N/A
TAGS: BEXP ETRD ECON EINV PO
SUBJECT: PORTUGAL: RECENT COMMERCIAL SUCCESS STORIES

REF: STATE 13169

1. Per reftel, post reports the following commercial success
story:

DATE: September 16, 2007

POST/DEPARTMENT OFFICE: FCS, ODC, Pol/Econ

COUNTRY: Portugal

COMPANY: Lockheed Martin MS2 Tactical Systems

COMPANY/HEADQUARTERS (state/zip): MN/55121-2034

ISSUE/PROJECT: In early 2007, Embassy Senior Commercial
Officer (SCO) and Office of Defense Cooperation (ODC) Chief
met with MS2's International Business Development Director,
Michael Meyer, at the Embassy in Lisbon to discuss the
company's bid on a $135 million contract to upgrade the
avionics on five Portuguese Ministry of Defense (MOD) P-3C
maritime patrol aircraft. MS2 had been trying to secure the
contract for years, but problems with GOP defense budget
allocations and holds on federal tenders during the
changeover from the Social Democratic administration to the
Socialist administration in 2005, had kept the proposal in
limbo. In addition, Lockheed had received indications that
their European competitor, CASA EADS of Spain, was exerting
back-channel pressure on the MOD to win the award. Embassy
recommended that MS2 seek formal U.S. advocacy, with a goal
of securing a support letter signed by the Ambassador and
sent directly to the Minister of Defense.

SPECIFIC ACTIONS TAKEN: On April 12, MS2 submitted its
Advocacy Questionnaire through the SCO, who proceeded to
communicate with John Isbell in DOC/BIS, Pat Nugent in the
Advocacy Center, and Donald Calvert in MAC. An Ambassadorial
advocacy support letter was subsequently drafted and
circulated among DOC, DOD, and DOS counterparts in Washington
and DOS and ODC office chiefs in Lisbon. On May 2, the final
version of the letter was signed by the U.S. Ambassador to
Portugal, Alfred Hoffman, Jr., and transmitted to Defense
Minister Severiano Teixeira from the Embassy.

COMMENT: On September 6, 2007, Lockheed was awarded the $135
million contract with the Portuguese MOD for the P-3C
upgrade. Meyer expressed his appreciation to SCO and ODC
Chief for the advocacy assistance provided, noting that the
contract was both a substantive and symbolic victory for
Lockheed in Portugal.

NOTE: This export success is not cleared for public use.

Stephenson

© Scoop Media

 
 
 
 
 
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