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Cablegate: Egypt: Country Team Assessment for the Procurement

VZCZCXYZ0000
OO RUEHWEB

DE RUEHEG #2492/01 3461739
ZNR UUUUU ZZH
O 111739Z DEC 08
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1034
INFO RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL IMMEDIATE
RHMFISS/JOINT STAFF WASHINGTON DC IMMEDIATE
RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
RHMFIUU/CDRUSASAC FT BELVOIR VA IMMEDIATE

UNCLAS CAIRO 002492

SENSITIVE
SIPDIS

STATE FOR NEA/ELA (IRWIN) AND PM (ARCHETTO)

E.O. 12958: N/A
TAGS: PREL MASS MARR EG
SUBJECT: EGYPT: COUNTRY TEAM ASSESSMENT FOR THE PROCUREMENT
OF TWENTY-FOUR (24) AH-64D APACHE HELICOPTER (BLOCK II)
WITH MTADS TO SUPPORT THE GOVERNMENT OF EGYPT'S (GOE)
RECONNAISSANCE AND BORDER SECURITY MISSIONS

REF: A. GOE MINISTRY OF DEFENSE LETTER OF REQUEST (LOR)
8-135 FOR LETTER OF OFFER AND ACCEPTANCE
(LOA) DATED 15 JUL 08.
B. ATTACHMENT 1 TO LOR 08-135 TOTAL PACKAGE
REQUIREMENTS FOR CASE DEVELOPMENT DATED
15 OCT 08.
C. USASAC LETTER FOR BLOCK II APACHE PROCUREMENT
TIMELINE DATED 16 JUL 08.

1. (SBU) Description. In REF A, The GOE submitted a request
to procure twenty-four (24) AH-64D Helicopters (BLK II) with
the Modernized Target Acquisition and Designation System
(MTADS), the required infrastructure/facility upgrades,
logistical and technical support requirements. This case
will include an additional (36) MTADS kits to modernize
current fleet of aircraft with spares and software upgrade
for Longbow Crew Trainer (LCT). These aircraft will perform
Reconnaissance and Security missions for the EAF, as well as
support the Ministry of Defense (MOD). These aircraft will
perform tasks associated with Airborne Reconnaissance, Border
Security and Defense, as well as night Search and Rescue
missions with the MTADS. All missions will be in compliance
with the standards and regulations outlined within current
international and regional agreements. Additional
information is available at www.mmc.gov.eg.

2. (SBU) Reason the purchaser desires the articles or
services. Recent events throughout Egypt and the region with
regard to border security, as well as the Egyptian Air
Force,s efforts to modernize their existing Apache
Helicopter fleet support the GOE initiative. These
additional aircraft will replace combat capability due to the
loss or retiring of older airframes. This procurement is in
concert with the GOE 2025 Plan to increase the Apache force
structure to a preplanned level to perform all required
missions. The AH-64D (Apache) helicopter with MTADS and
improved mission equipment was identified by the U.S. Army
and Apache Program Manager more than a year ago, as a
suitable rotary-wing platform to support the GOE specific
mission requirements. The procurement of additional Block II
Apaches is the next logical step to ensure the continued
modernization of the EAF fleet, long-term sustainability with
the U.S. Army and interoperability with other GOE allies.
This action will greatly increase the overall capability of
the EAF to support attack helicopter operations across
multiple mission profiles. In addition, this new case will
incorporate the total package requirements to address much
needed program improvements in the areas of training,
infrastructure and airfield operations. An increase in
aircraft availability will enhance the overall readiness of
the fleet and individual aviator proficiency.

3. (SBU) How the articles or services would affect the
recipient,s force structure. The EAF originally procured 36
AH-64A Helicopters in 1994 and contracted the remanufacturing
of 35 aircraft from A to D model for $440 million from
2001-2006. Since the inception of the program, the EAF have
had two incidents that resulted in the total loss of both
aircraft. The EAF completed the D Model aircraft upgrade in
2006 and currently operate and maintain 34 AH-64D aircraft at
Abu Hammad and Katamaya Air Bases. There will be no change
to the existing mission and primary roles of the AH-64D.
These additional aircraft would substantially assist the MOD
and EAF with allocating additional resources to the various
missions.

4. (SBU) How the articles or services would contribute to
both the U.S. and the recipient,s defense/security goals.
Aircraft sales are consistent with DOD's Security Cooperation
Guidance as it enhances the territorial security and crisis
response capabilities of regional states. It assists the
U.S. in enabling allies and partners, while also protecting
U.S. and partner interests. It supports the modernization
and transformation of allies or partners to reduce their
vulnerability to external military sales. Finally, it
improves their ability to operate independently without
significant reliance on U.S. or coalition Forces. These
additional aircraft will significantly increase the amount of
OCONUS-US based training; joint training exercises and may
possibly influence the frequency of coalition operations with
the US and its other allies.

5. (SBU) Justification for the type and quantity of articles
or services requested. The EAF completed a detailed analysis

and review of several suitable airframes with input from the
Apache Program Management Office and the Apache Program
Manager at the Security Assistance Management Directorate
(SAMD). Their findings revealed that the AH-64D with MTADS
is an excellent airframe to support the various GOE missions.
The procurement of these aircraft is a natural progression
to modernize assets and significantly improve an existing
capability while closely mirroring the U.S. force structure.

6. (SBU) Combatant Commander's concurrence to the
introduction of a new warfighting capability to the nation or
region. Combatant Commander's concurrence will be provided
separately.

7. (SBU) Anticipated reactions of the neighboring nations.
The procurement of these additional attack helicopters should
not influence the regional balance of power or cause negative
reactions from any of Egypt's neighbors. This procurement
introduces an increase in capability for Egypt, but does not
introduce new technology region or international customers.
Several international customers have recently purchased
similar airframes through the Foreign Military Sales (FMS) or
Direct Commercial Sales (DCS) programs, with U.S.
concurrence. These assets will greatly enhance Egypt,s
ability to participate in combined regional training
exercises, as well night search and rescue missions. This
procurement will not impact Israel's qualitative military
edge.

8. (SBU) Assessment of the nation's ability to account for,
safeguard, operate, maintain, and support the articles. The
GOE has demonstrated the intent and ability to protect
sensitive, classified military technology over an extended
period. Egypt signed a General Security of Information
Agreement with the U.S. and as a customer, has purchased and
protected the sensitive technology of other U.S. weapons
systems. Egypt has procured similar rotary-wing aircraft in
the past to include thirty)four (34) AH-64D Helicopters that
currently provide support to the EAF and MOD. The
preponderance of Apache helicopters are located at Abu Hammad
Air Base, with approximately a third of the fleet located at
Katamaya Air Base for training. The EAF has met all previous
security and End Use monitoring (EUM) requirements.

9. (SBU) Training required either in-country or in the United
States and anticipated reactions resulting from the presence
of U.S. trainers in country. The EAF already maintains a
Wing of thirty-four (34) AH-64D Helicopters. The majority of
EAF pilots and maintenance personnel currently complete all
AH-64D Apache Aviator Qualification Courses (AQC), Instructor
Pilot Courses (IPC), Maintenance Test Pilot (MTP) Courses,
Flight Engineer and maintenance related courses in the U.S.
The addition of twenty-four (24) aircraft will increase the
EAF,s stateside training requirements by more then forty
(40) AQCs, six (6) IPCs, four (4) MTP courses and twenty-six
(26) aircraft maintenance related courses. There is no
requirement for an additional Mobile Training Team (MTT).
The continued presence of the Apache Technical Assistance and
Fielding Team (TAFT) is required to support the fleet
throughout the duration of aircraft delivery. The presence
of U.S. trainers in country will have little anticipated
reaction because of the long-term existence of Security
Assistance Teams (SATs) already assigned in country.

10. (SBU) Possible impact of any in-country U.S. presence
that might be required as a result of providing the article.
U.S. Government civilian personnel and U.S. contractors are
permanently assigned to Egypt to support the current EAF
AH-64D program. Those US positions have been filled for over
ten years. There is an expected increase of US personnel in
country that would be necessary to support the arrival,
bed-down and sustainment of the additional aircraft
maintained at two locations resulting from this procurement.
A majority of the personnel will be on temporary duty status
and very few positions will require additional personnel to
remain in Egypt for more than one year. Additionally, U.S.
Government teams and U.S. contractor teams routinely travel
to Egypt to support the various weapon systems procured
through the U.S. FMS programs. There is no anticipated
negative impact that would result from the continued presence
of these Americans in Egypt.

11. (SBU) Source of financing and the economic impact of the
proposed acquisition. Egypt plans to procure these

twenty-four (24) aircraft utilizing Foreign Military
Financing and has already allocated sufficient funds within
their FY09-FY15 budget. This acquisition is essential for
the GOE to conduct Airborne Reconnaissance, Border Security
and Defense, as well as night Search and Rescue missions.
This requirement is on both the FY09 JAVITS Report and the
Egyptian Armament Authority (EAA) Priority List. Egypt is
not planning to use national funds to pay for any portion of
this procurement. The economic impact of the proposed
acquisition will generate an estimated $900 million dollars
for the U.S. Army,s Program and the U.S. economy. The
immediate sale of these Block II aircraft is critical as the
Apache manufacturing line converts to Block III aircraft in
2011 to support the total U.S. Army fleet conversion over the
next seven years. The International Apache Program office
and U.S. Army Security Assistance Command (USASAC) have
advised the EAF in formal correspondence (REF C) that in
order for Egypt to secure its position in the aircraft build
line and delivery schedule, an LOR must be submitted to
USASAC NLT DEC 08, with LOA implementation NLT 30 JUL 09.


12. (SBU) Human rights considerations relevant to the
proposed acquisition. None.

13. (SBU) A plan for end-use monitoring for sensitive and
advanced war fighting technology and the SAO,s plan for
compliance verification. The Office of Military Cooperation
(OMC) Egypt has a robust Golden Sentry Program. The Golden
Sentry Program representative and Security Assistance Officer
(SAO) responsible for the program, will coordinate for the
review and maintenance of required documentation. All
parties will maintain serial number lists of all components
within the inventory or transferred, and will conduct the
mandated inspections as required. This coordination will
ensure that historical copies of all EUM Inspection results
and customer,s physical security and accountability control
plans remain on file. The Egyptian military currently has
over 100 helicopters (FMS) of various configurations in
country. Egypt has maintained accountability and security of
these aircraft without unauthorized loss, theft, or access to
date. The GOE has indicated a willingness to meet U.S.
guidelines for accountability and security of these advanced
aircraft, and the Office of Military Cooperation will conduct
End Use Monitoring (EUM) of all required components if this
request is approved.

14. (SBU) Recommendation whether the USG should approve
transfer of the article and justification. The country team
supports the USG approval of the GOE procurement of up to
twenty-four (24) additional AH-64D helicopters. This
purchase will increase combat capability, replace
aging/obsolete aircraft and address major shortfalls in the
current AH-64D program. It will give the USG an opportunity
to promote better interoperability by encouraging increased
joint and/or combined operations. Funds from this case will
be utilized to address current shortfalls in
operational/maintenance formal training, base support
infrastructure and English language training. However, this
request is the lowest priority of the EAF,s four current
aircraft procurement requests (C-130J, CH-47D, F-16 and
AH-64D. The EAF under utilizes their current AH-64Ds and
does not face an immediate threat. Increased airlift for
potential coalition operations and humanitarian assistance is
more important to the USG. The country team also supports a
split or reduced buy because it will significantly help
facilitate cash flow payments for this and other programs
over the next eight fiscal years. We recommend an initial
purchase of 14 airframes. That will allow the EAF to field
two complete Wings similar to U.S. Army units. The last 10
aircraft will be at risk due to closure of the AH-64D Block
II assembly line. This is a suitable alternative due to
funding restraints because the first phase of this
procurement will incorporate much need program improvements
and the EAF possesses adequate combat capability without the
additional aircraft. This is a coordinated mission position.

SCOBEY

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