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Cablegate: Response to Blue Lantern Check On Unauthorized

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ATHENS 002841

SIPDIS

PASS TO PETER DADE PM/DTCC

E.O. 12958: N/A
TAGS: ETTC KOMC RS GR
SUBJECT: RESPONSE TO BLUE LANTERN CHECK ON UNAUTHORIZED
MODIFICATIONS TO U.S. ARMORED VEHICLES IN GREECE

REF: STATE 154415

1. (SBU) Post and ODC have completed the above referenced
investigation into the modification of A.M. General HMMWV's
with the Russian Kornet E ATGM missle system. The
information collected has indicated that in 2001, AM General
Corporation signed contract No 2001-173 with the Greek State
owned Hellenic Vehicle Industry S.A. (ELBO) for the
procurement of 98 incomplete vehicles, HMMWV, M1113. Said
contract is titled M1113 Incomplete Vehicles for KORNET-E
phase-1 Co-production program. An option to this contract was
exercised in 2003 for an additional 98 each, total number
procured being 196 ea.

2. (SBU) Articles 7.2 and 7.3 of the contract clearly
indicate that the seller (AM General) will obtain all
necessary USG licenses, permits and authorizations and/or
clearances and is subject to all US laws and regulations
relating to exports. The contract specifies the Buyer (ELBO)
provide and sign the end-user certification and Form BXA-711
required by the US Department of Commerce. Consequently, all
pertinent licenses, to include Export License No D311979 and
a US Department of State export license for the KORNET
ancillary parts contract were secured and the 196 each
incomplete vehicles were shipped to Greece.

3. (SBU) It should be noted that Article 7.5 indicates that
the defense articles procured with this contract will not be
transferred to a person in a third country unless the prior
written approval of the Seller and the US Department of
Commerce has been obtained.

4. (SBU) In the meantime, the Hellenic MOD had signed a
contract with the Israeli firm PLASAN SASA to procure 196
each HMMWV heavy armor protection kits of level 2, Stanag
4569 and a separate contract with the Russian MOD for the
procurement of an equal number of KORNET-E anti-tank systems.
At ELBO facility, the HMMWV vehicles were heavily armored
with the PLASAN SASA kit and the KORNET-E system was mounted
on a pedestal on the roof of the vehicle. Storage for
additional missiles has been accommodated within the vehicle.

5. (SBU) It appears that no major modifications were made to
the armored HMMWV vehicles since the KORNET-E missile
launcher has been mounted on an ordinary and existing roof
pedestal. The three extra KORNET containerized missiles are
stored in the vehicle,s rear storage compartment.

6. (SBU) Comment. This Blue Lantern investigation was
conducted with sensitivity, particularly in view of the
ongoing contract negotiations between GOG and AM General for
the procurement of 691 each HMMWV vehicles (301 Grenade
Machine Gun Carriers and 390 Light Armored Recon).
Competition from major European countries (Germany, France,
and Spain) is fierce on this project and any negative comment
on the HMMWV program might jeopardize the efforts of the US
firm to win the contract. It took many years of hard and
persistent efforts to establish the HMMWV family of vehicles
in the Greek military and the future looks very promising for
increased requirements. End Comment.

RIES

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