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FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2873
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RHMFISS/JOINT STAFF WASHINGTON DC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY

C O N F I D E N T I A L CAIRO 001114 
 
SIPDIS 
 
E.O. 12958: DECL: 05/25/2019 
TAGS: PREL PARM MASS ETTC EG
SUBJECT: EGYPT RESPONDS POSITIVELY TO END-USE TRAINING 
 
REF: A. CAIRO 478 
     ¶B. CAIRO 458 
 
Classified By: Ambassador Margaret Scobey per 1.4 (b) and (d).
1.(SBU) This is an action request. Please see paragraph four.

¶2. (SBU) Key Points: -- Since December 2008, several potential end-use violations by the Egyptian military have illustrated a lack of awareness among mid-level officials of Egypt's obligations to protect U.S.-origin defense articles, technology, and equipment. -- The Office of Military Cooperation (OMC) created an end-use training program to educate military personnel responsible for handling U.S.-origin equipment. MOD officials responded favorably to the course and have supported OMC efforts to train working-level officials. -- On May 21, OMC trained around 20 employees of Factory 200, which houses the U.S.-Egypt M1A1 co-production project. Following the training, factory officials canceled a scheduled tour for the Iraqi Minister of Defense, thus avoiding a potential end-use violation. -- OMC will deliver the same course training to other mid-level leaders over the next six weeks, beginning with other co-production sites, followed by the various military departments who handle U.S. equipment. -- End-use issue has also been added as a permanent agenda item to the annual Military Cooperation Committee meetings, which will next be held in Cairo in November 2009. ------- Comment -------

¶3. (C) OMC created the training course based on concerns with recent potential end-use violations by the Egyptian military (ref A), which indicated that while high-level MOD leadership understood Egypt's obligations to protect U.S. technology and equipment, the message had not been effectively transmitted to working-level officials. Given the questions posed by the factory employees, it appears that OMC's course provided Factory 200 officials with their first exposure to end-use regulations.

¶4. (C) The training has already improved Egypt's adherence to end-use obligations, as the Egyptians canceled a planned tour for Iraqi military officials of the M1A1 co-production facility upon learning that approval was first needed for a third-party transfer. Additionally, the Egyptians requested U.S. approval for a visiting Tunisian delegation to tour tank and vehicle repair facilities on June 22 and 23. ACTION REQUEST: We thank the Department in advance for a prompt response to Egypt's request, which will help re-enforce the adherence to end-use procedures. ---------- Background ----------

¶5. (C) Since 2006, the Department has reported six separate potential end-use violations to Congress of Egypt's end-use, re-transfer, and security obligations covering U.S. defense articles, technology, and information. The most recent case in December 2008, involved the reverse engineering of a 155mm gun tube of a M109 self-propelled howitzer. OMC discovered the potential violation during a routine visit to the 120mm cannon production line, when the engineer reportedly responsible for the violation approached an OMC official and proudly displayed technical blueprints for the gun tube. Once OMC raised the issue with senior-level officials (ref B), the Egyptian military took immediate corrective action and fired the civilian engineer, who MOD said had acted "independently." ----------------- Targeted Training -----------------

¶6. (SBU) The 155mm gun tube case illustrated that end-use obligations were not well understood by the officials responsible for the day-to-day protection of U.S.-origin equipment and technology. To remedy this problem, OMC created an end-use obligations awareness briefing, aimed at officials outside of the Ministry of Defense headquarters who handle U.S. equipment at military bases and production facilities around the country.

¶7. (C) During a March 29 meeting, Major General Fouad al-Helmi, Advisor to the Minister of Defense, expressed support for an end-use awareness course, saying MOD wants a "clean" and "transparent" dialogue on end-use issues. Al-Helmi offered to provide assistance in setting up briefings for "everyone in the field" who handled U.S. equipment. Major General Mohammed al-Assar said that Egypt was "ready to cooperate" to ensure that Egypt met its end-use obligations. -------------------------- Factory 200 and M1A1 Tanks --------------------------

¶8. (SBU) On May 21, the Office of Military Cooperation (OMC) delivered the first installment of training to around 20 employees of Factory 200. Factory 200, which the Egyptians refer to as "the largest building in Africa and the Middle East," is the site of the U.S.- Egypt M1A1 co-production project. OMC briefed the audience, who consisted of the factory's vice chairman, plant manager, line managers, and engineers, on end-use obligations regarding the protection of sensitive U.S. equipment and technology.

¶9. (SBU) OMC highlighted the importance of adhering to end-use obligations, especially in regards to not allowing any unauthorized individuals to access the U.S.-provided technology used to manufacture M1A1 tanks. The course also covered Egypt's responsibility to protect equipment from theft, intangible transfer, other accountability obligations, and restriction of use to military (not commercial) purposes. The factory employees expressed appreciation for the briefing and peppered the instructor with questions.

¶10. (SBU) Following the briefing, Factory 200 officials informed OMC that they planned to give the Iraqi Minister of Defense a tour of the tank factory and asked for the proper approvals for the third-party transfer. Tank officials canceled the tour when they learned that the approval process could not be completed in time. The Egyptians have since requested permission to give a group of Tunisian military officials a tour of the M60A3 and HMMWV repair workshops. --------------- Future Training ---------------

¶11. (SBU) Building upon the successful Factory 200 training, OMC plans on briefing officials at the tank barrel co-production site (Factory 100), in addition to the various ammunition co-production sites (Factory 99, Factory 81, Factory 18, and Factory 45). OMC will then brief the various military departments, including the Artillery Department, Armor Department, Vehicle Department, Armament and Ammunition Department, Air Defense Command, Air Force Armament Authority, and Navy Armament Authority. SCOBEY