VZCZCXRO0473
RR RUEHAST
DE RUEHLI #2266/01 2851421
ZNR UUUUU ZZH
R 121421Z OCT 06
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC 5248
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHPD/AMCONSUL PONTA DELGADA 0268
RUEKJCS/JOINT STAFF WASHDC
RUVACEA/65 CES LAJES FIELD PO
RHFQAAA/USAFE RAMSTEIN AB GE
RUEKJCS/SECDEF WASHDC

UNCLAS LISBON 002266 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL MARR ETRD PO
SUBJECT: US-PORTUGAL BILATERAL COMMISSION HIGHLIGHTS 
 
¶1. (U) Summary: Portugal hosted the semi-annual meeting of 
the U.S.-Portugal Bilateral Commission on October 3 to 
discuss ongoing bilateral cooperation items as well as 
coordination on international military engagements.  The U.S. 
delegation noted Portugal's military contributions worldwide, 
including to UNIFIL, Afghanistan, the Balkans, East Timor, 
and Iraq; welcomed Portugal's upcoming EU Presidency in 2007; 
reported on the status of joint projects in the Azores and 
military training programs; and detailed our robust 
scientific exchange cooperation.  Portugal's delegation 
thanked us for securing additional pilot training slots; 
reported on the status of updating bilateral MOUs; and 
focused on the disputed 2006 wage increase at Lajes Air Base. 
 Both delegations agreed to seek a long-term solution to the 
wage increase impasse.  On the margins, EUR PDAS Kurt Volker 
and representatives from AF, ISN, and WHA had productive 
discussions with their counterparts on policy issues of 
mutual interest (septels).  End summary. 
 
¶2. (U) Participating Delegation Members: 
 
United States 
------------- 
Ambassador Alfred Hoffman Jr. 
EUR Principal Deputy Assistant Secretary Kurt Volker 
Deputy Under Secretary for Defense Patricia Bradshaw 
DCM Adrienne O'Neal 
Lajes Air Base Col. Robert Winston 
Office of Defense Cooperation Cdr. Ted Bradfield 
Consul to Ponta Delgada Jean Manes 
Embassy Science and Technology Officer Inga Heemink 
 
Portugal 
-------- 
DG for Political Affairs Amb. Manuel Tomas Fernandes Pereira 
Portuguese Embassy Political Counselor Jose Costa Pereira 
Azores Regional Government Representative Andre Bradford 
Lajes Commander General Pereira da Cruz 
Ministry of Higher Education Jose Garcia 
 
MEETING HIGHLIGHTS 
------------------ 
 
¶3. (U) POLITICAL AND POLITICAL-MILITARY ISSUES: Both 
delegations stressed our close cooperation on promoting 
democracy, combating terrorism, and in supporting nation 
building efforts.  They further noted the importance of the 
consultations on Africa, non-proliferation, and Latin America 
held on the margins of the Commission meeting. 
 
- Ambassador Hoffman reported that, in FY 2007, the U.S. 
International Military Education and Training (IMET) budget 
for Portugal would be increased by 16 percent, Portugal would 
train 22 new pilots through the Specialized Undergraduate 
Pilot Training (SUPT), and nine senior officials from the 
Portuguese government had attended courses or seminars at the 
George C. Marshall Center.  PDAS Volker recognized Portugal's 
military deployments to global trouble spots, including 
Afghanistan, Iraq, East Timor, and Lebanon.  He also noted 
our support for Portugal's EU Presidency and its active 
involvement in NATO. 
 
- Ambassador Fernandes Pereira highlighted Portugal's 
willingness to participate in international engagements 
"without strings attached," referring to caveats that several 
nations impose on their armed forces.  He praised the 
U.S.-Portuguese-Angolan cooperation on establishing a 
computer system for Angola's legal system.  He inquired about 
the status of the U.S. embargo towards Libya because the 
Portuguese aeronautics company OGMA seeks to repair Libyan 
C-130 aircraft as soon as U.S. policy allows. 
 
¶4. (U) DIPLOMATIC EXCHANGE: Both delegations announced plans 
to have diplomats work in exchanges at State or in Portugal's 
MFA in November.  The Portuguese also announced plans to send 
an additional diplomat to State in January 2007 for 
approximately one month.  Embassy Lisbon is awaiting 
confirmation that our exchange will be with Portugal's EU 
coordination office. 
 
¶5. (U) MILITARY COOPERATION: DUSD Bradshaw offered more 
detailed information on International Military Education and 
Training (IMET) and pilot training funding, and recognized 
Portugal's plans to decline the U.S. offer of two Oliver 
Hazard Perry class frigates.  She raised the issue of two 
Memoranda of Understanding (MOU), one on scientific exchange, 
the other on procurement policy, slated to be amended or 
renegotiated shortly.  She said military representatives on 
both sides were working to expedite the changes.  Bradshaw 
recognized Portugal's formal request to establish drug 
intercept training programs with the U.S. Coast Guard and 
promised a response soon.  Col. Winston at Lajes Air Base 
praised our close mil-to-mil relationship on the base and 
cited examples of successful training programs, space shuttle 
launch support, and refueling missions.  Winston also 
acknowledged that the U.S. 2005 manpower survey results for 
Lajes had not been finalized and offered to share them once 
they become available. 
 
- MOD's Bernando Calheiros underscored Portugal's 
appreciation for the pilot training slots and noted that 
Portugal will probably request 12-16 slots a year until FY10 
to make up for their current shortfall.  He requested four 
operational course slots to train F-16 pilots and reported 
that Portugal would like to participate in operational 
training exercises, particularly in pre-deployment training 
in Germany.  Commander Mario Marques from MOD Naval Armaments 
Directorate announced that the new Portuguese military 
procurement law came into effect on August 29 and provided 
the U.S. delegation with an overview of the legislation. 
 
¶6. (U) SCIENTIFIC AND TECHNOLOGICAL COOPERATION: DCM Adrienne 
O'Neal mentioned the strong science and technology component 
of Ambassador Hoffman's recent delegation trip to Florida and 
offered to distribute follow-up information and notes to 
encourage an ongoing dialogue.  Science and Technology 
Officer Inga Heemink introduced the Embassy Science fellow 
and listed three other scientists slated to work in Portugal 
over the next six months. She also reported on the USDA 
Forest Service's cooperation with Portuguese officials to 
fight forest fires, on bilateral cooperation for alternative 
energy technology, and on the ongoing Department of Homeland 
Security review of proposed language to update our 1994 
bilateral customs agreement. 
 
- Jose Garcia of the Ministry for Higher Education stated 
that Portugal had signed protocols with Massachusetts 
Institute of Technology (MIT), Carnegie Mellon, and the 
University of Texas - Austin for scientific exchange and 
cooperation.  Prime Minister Socrates will attend the MIT 
project's launch on October 11.  He then asked the U.S. to 
reconsider its decision regarding meteorological confirmation 
through radio signals.  Luso-American Foundation Director Rui 
Vallera mentioned the joint projects with U.S. universities 
to do research on cancer and biotechnology.  He also noted an 
interest in beginning a grant program with Combined Language 
Centers and Rhode Island College to offer Portuguese language 
classes. 
 
¶7. (U) AZORES COOPERATION: DUSD Bradshaw reviewed our key 
endeavors with the Azores including sustainable fishing, 
English language training, emergency response training, dairy 
production improvement, and blueberry production. 
Newly-arrived Consul Jean Manes, offered remarks on her 
consultations with the Regional Autonomous Government of the 
Azores, and with Azorean-American Congressmen in the United 
States.  Col. Winston highlighted the economy-boosting 
housing renovation underway at Lajes, a boom reel to prevent 
or contain an oil spill into the bay on Terceira, and the 
U.S. efforts to use local labor and contractors when 
possible. 
 
- Andre Bradford praised the successful fire fighting 
cooperation, the transfer of the Pico-Nare station over to 
Portuguese control, and the Azores' developing tourism and 
investment plan made in consultation with U.S. experts. 
 
¶8. (U) LABOR AND TECHNICAL COMMITTEE MEETINGS: During a recap 
of the labor and technical committee meetings, both 
delegations explained their distinct positions regarding the 
wage increase for local workers at Lajes.  The United States 
did a wage survey and found that the employees should receive 
a 2.7 percent pay increase as of July 1 but U.S. law 
prohibits an increase beyond the U.S. national standard -- 
currently at 2.1 percent.  Portugal argued that the employees 
deserved the full 2.7 percent increase, even if it meant 
getting an exception to the standard cap.  Portugal agreed to 
approve the 2.1 percent raise with reservations and both 
sides agreed to discuss a long-term solution to the impasse. 
 
- Cdr. Ted Bradfield then recapped the technical committee's 
work which included two construction projects, an amendment 
to one approved project, and a land transfer discussion. 
¶9. (U) In addition to the Commission meeting, PDAS Volker had 
several meetings with Portuguese interlocutors in the Prime 
Minister's office, the Ministry of Defense, and the Ministry 
of Foreign Affairs (septel).  AF/RSA Director Jerry Lanier, 
ISN/RA Director Robert Witajewski, and WHA Special 
Coordinator for Venezuela Deborah McCarthy also had 
substantive meetings with interlocutors on the margins 
(septels).  The next Bilateral Commission meeting will be 
held in Washington DC sometime in March 2007. 
Hoffman