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

C O N F I D E N T I A L SECTION 01 OF 02 THE HAGUE 001797 
 
SIPDIS 
 
 
STATE FOR D, T, P, EUR, PM, EUR/RPM, EUR/UBI 
OSD FOR ISA/NATO, ASD GANSLER, DASD VOLKMAN, PASS DSCA 
JCS FOR J-5 EUR 
 
 
E.O. 12958: DECL: 06/15/2010 
TAGS: MASS ETTC MCAP ETRD KSEP PREL NL NATO
SUBJECT: DUTCH INITIAL REACTIONS TO DTSI, MORE ON F-16 MNCP 
POSS PURCHASE OF PGM'S 
 
REF: A. SECSTATE 97186 
     ¶B. BERLIN 2441 
     ¶C. SECSTATE 101175 
     ¶D. USNATO 1315 
 
 
CLASSIFIED BY A/POLCOUNS E. LUNDBERG; REASONS 1.5 (B,D). 
 
 
1.(U)  ACTION REQUEST - SEE PARA. 4. 
 
 
2.(C)  SUMMARY:  AT FIRST GLANCE, THE DUTCH "WELCOME" THE 
DTSI AND SEE IT AS A "POSITIVE STEP IN TRANSATLANTIC DEFENSE 
TRADE."  NEVERTHELESS, THEY ARE RESERVING OVERALL JUDGMENT ON 
THE PROPOSALS UNTIL THEY LEARN MORE ABOUT THEM. THEY ARE ALSO 
EAGER TO LEARN MORE ABOUT HOW THE DTSI AND THE EXISTING 
GLOBALIZATION TALKS RELATE TO EACH OTHER. END SUMMARY. 
 
 
3.(C)  EMBASSY POLITICAL AND ODC REPS MET ON 6/13 WITH MFA 
AND MOD OFFICIALS TO DISCUSS INITIAL DUTCH REACTIONS TO THE 
DEFENSE TRADE SECURITY INITIATIVE.  DUTCH ECONOMICS MINISTRY 
OFFICIALS PREVIOUSLY HAD ATTENDED A DUTCH INTERNAL MEETING 
AND THEIR COMMENTS WERE PASSED ON BY MFA OFFICIALS. 
CAVEATING THAT THEIR REACTIONS WERE ONLY "INITIAL AND NOT YET 
AUTHORITATIVE," DUTCH DEPUTY SECURITY POLICY PDAS GAIUS 
SCHELTEMA AND DAS FOR EXPORT CONTROLS JOHAN COERT "WELCOMED 
THE DTSI" AS AN IMPORTANT STEP FORWARD IN THE TRANSATLANTIC 
TRADE MARKETPLACE. SCHELTEMA SAID THAT THE "SPECIFIC LINK TO 
THE DCI IS ALSO POSITIVE AND IMPORTANT."  COERT ADDED THE 
DUTCH RECOGNIZED THAT MANY OF THE DTSI ELEMENTS WERE KEYED TO 
MOU GROUP LONG-STANDING TOPICS.  ASKED BY POLOFF, COERT ADDED 
THAT INFORMAL DISCUSSION AMONG MOU GROUP MEMBERS IN 
WASHINGTON WAS ALSO "POSITIVE AND DEEMED A REAL STEP FORWARD." 
COERT ALSO ADDED THAT THE DUTCH ECONOMICS MINISTRY AEROSPACE 
DEPARTMENT DIRECTOR HAD JUST REPORTED TO HIS MFA AND MOD 
COLLEAGUES THAT DUTCH DEFENSE-RELATED COMPANIES WERE 
IMPRESSED BY THE INITIATIVE AND GENUINELY SENSED NEW 
POTENTIAL MARKET ACCESS AND TEAMING OPPORTUNITIES AS A RESULT 
OF THE DTSI. 
 
 
4.(C)  DUTCH MOD REP H.J. JANSEN EXPRESSED A KEEN INTEREST, 
SECONDED BY THE MFA, IN LEARNING HOW THE EXISTING OSD-LED 
GLOBALIZATION DIALOGUE RELATED TO THE DTSI.  POLOFF EXPLAINED 
THAT DTSI PRIMARILY RELATED TO THE EXPORT-CONTROL AND 
SENSITIVE TECHNOLOGY/INFORMATION SAFEGUARDING ELEMENTS ON THE 
GLOBALIZATION PILLAR STRUCTURE, BUT THAT THE TWO PROCESSES 
WERE STILL DIFFERENT.  THE DUTCH NOTED THAT DASD VOLKMAN 
ALREADY HAD INVITED MOD'S DIRECTOR FOR PLANS AND 
INTERNATIONAL MATERIEL RELATIONS, BGEN TEUSSINK, TO JULY 11 
TALKS IN WASHINGTON TO FURTHER EXPLORE A POSSIBLE 
U.S.-NETHERLANDS DECLARATION OF PRINCIPLES FOR DEFENSE 
EQUIPMENT AND INDUSTRIAL COOPERATION (DOP).  THEY SAID THAT 
THEY HOPED TO HEAR MORE DETAILS THEN ON WHEN INDIVIDUAL 
ELEMENTS OF THE DTSI WOULD BECOME OFFICIAL, HOW THEY WOULD 
RELATE TO THE DOP PROCESS AND WHAT SPECIFICALLY WAS EXPECTED 
OF DUTCH TO COMPLY WITH ASPECTS OF THE OPPORTUNITIES OUTLINED 
IN THE DOP AND DTSI DIALOGUES. (EMBASSY COMMENT;  THIS WOULD 
BE AN EXCELLENT OPPORTUNITY FOR PM PDAS SUCHAN TO BRIEF DUTCH 
OFFICIALS ON THE DTSI, AS NOTED IN REF.B. END COMMENT.)  BOTH 
MOD AND MFA INTERLOCUTORS ALSO SUGGESTED THE U.S. USE 
COMBINATIONS OF A WEBSITE, REGULAR MOU GROUP BRIEFINGS, AND 
BOTH BACKGROUND NATO COMMITTEE AND POLITICAL LEVEL GATHERINGS 
TO REPORT PROGRESS. THEREBY, THEY INDICATED, THE ALLIANCE 
COULD USE PEER PRESSURE AS A CATALYST FOR BUILDING AND 
MAINTAINING MOMENTUM FOR THE PROGRAM. 
 
 
5.(C)  EMBASSY OFFICIALS THEN REVIEWED THE DTSI ELEMENTS, WIT 
THE DUTCH PROBING TO DETERMINE WHAT WOULD BE REQUIRED OF THE 
DUTCH GOVERNMENT, EITHER IN POLITICAL COMMITMENTS, REGULATORY 
ADJUSTMENTS OR NEW LEGISLATION, TO RESPOND TO THE U.S. 
OVERTURES.  WE EXPLAINED THAT THEY SHOULD RECONSIDER THEIR 
PAST REFUSAL TO SIGN ONTO A BLANKET ASSURANCES AND ADVANCE 
CONSENT FOR THIRD COUNTRY TRANSFER OF USG-SOLD OR GRANTED 
DEFENSE ARTICLES STATEMENT.  THE MFA SECURITY POLICY LAWYERS 
WERE NON-COMMITTAL IN RESPONSE, BUT HEARD OUT OUR ARGUMENTS 
ABOUT HOW IT WOULD STREAMLINE LICENSING, REDUCE RISKS FOR 
CAPITAL INVESTORS IN DEFENSE PROGRAMS AND BE A CATALYST FOR 
MORE PREDICTABLE TRANSATLANTIC MARKETING ARRANGEMENTS, ALL 
CATALYSTS TO BETTER NATO DEFENSE INDUSTRIAL COOPERATION. 
(NOTE:  THE DUTCH CHAMPIONED MOU GROUP REVIEW OF THIS MEASURE 
SEVERAL YEARS AGO ONLY TO REFUSE TO SIGN ONTO SUCH LANGUAGE 
AT THE CONCLUSION OF THE DIALOGUE WITH THE USG. END NOTE). 
WE ALSO NOTED THAT THEY ALREADY OPERATE A SPECIAL EMBASSY 
LICENSING PROGRAM.  THE DUTCH SEEMED MOST INTERESTED IN 
LEARNING MORE ABOUT THE MAJOR PROJECT AND GLOBAL COOPERATIVE 
PROGRAM AUTHORIZATIONS AS WELL AS WHAT ROLE THEY MIGHT PLAY 
IN FACILITATING DUTCH BUSINESSES PARTICIPATING IN THE TECH 
DATA EXPORT AUTHORIZATION. 
 
 
6.(C)  SEPARATELY, DUTCH DEPUTY CHOD VAN BAAL DISCUSSED THE 
F-16 MNCP POSSIBLE JOINT ACQUISITION OF U.S. PGMS WITH POLOFF 
ON 6/14, NOTING IT COULD BE WORTH UP TO USD 400 MILLION IN 
EVENTUAL PURCHASES. HE SOUGHT ASSURANCES THAT THE DTSI COULD 
ACCOMMODATE THE LIKELY NECESSARY WAREHOUSING AND DISTRIBUTION 
PERMISSIONS AND MULTIPLE DESTINATION LICENSES.  POLOFF 
EXPLAINED THAT THE ITEMS WERE HLSG-LISTED PRIORITIES AND THUS 
A KEY FOCUS OF THE DTSI. WHILE OFFERING NO SPECIFIC, BINDING 
ASSURANCE, POLOFF NOTED THE SORT OF "JOINT BUY" PROPOSED ON 
THE NATO DEFMIN MARGINS WOULD BE THOSE WE HOPE TO EXPEDITE 
WITH THE FMS REFORMS.  VAN BAAL SEEMED CONTENT WITH ANSWER 
AND INDICATED THAT HE MIGHT SUGGEST TO BGEN TEUSSINK THAT 
THIS ISSUE BE ADDRESSED IN THE JULY 11 MEETINGS WITH DASD 
VOLKMAN.  VAN BAAL ALSO NOTED THAT, WHILE THE DANES STILL 
NEEDED MORE TIME TO EXAMINE SOME OF THE "VIRTUAL WAREHOUSING" 
PROPOSALS AND COST FIGURES, HE FORESAW AN EARLY FALL 2000 
TIMEFRAME FOR THE MNCP COUNTRIES TO FINALIZE THEIR PROPOSAL 
FOR THE JOINT PGM ACQUISITION.  HE ADDED THAT THE FIRST 
WORKING GROUP IMPLEMENTATION MEETING WOULD BE "NEXT WEEK" IN 
LEUVEN BELGIUM.  HE ALSO ELABORATED THAT THE MNCP COUNTRIES 
WERE ALL SEEKING LANTIRN AND WOULD FOCUS THEIR VIRTUAL 
WAREHOUSING ACQUISITIONS ALMOST EXCLUSIVELY ON THE NEW 
GPS-GUIDED FAMILY OF PGM'S.  "THIS WAY WE CAN BUY INTO THE 
U.S. WAR STOCKS FOR CRISIS SITUATIONS," HE SUMMARIZED," AND 
YOU CAN BE REASSURED THAT WE WILL NOT BUY THESE SORTS OF 
BOMBS ELSEWHERE." 
 
 
SCHNEIDER