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RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHINGTON DC

C O N F I D E N T I A L CAIRO 002801 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 09/15/2012 
TAGS: PREL EAID KPAL EG IS
SUBJECT: DEFENSE MINISTER TANTAWI ON MIL-TO-MIL RELATIONS 
 
 
Classified By: Ambassador Francis J. Ricciardone for reasons 
1.4(b) and (d). 
 
Summary 
-------- 
 
¶1.  (C)  On September 16, Minister of Defense Field Marshal 
Tantawi and the Ambassador discussed the impact of the FMF 
debates on the overall relationship, the state of mil-to-mil 
relations, border security, the under-disbursement of FMF in 
FY07, and the peace process.  Tantawi said that the U.S. and 
Egypt must work to strengthen the mil-to-mil relationship 
despite occasional differences on individual issues.  He also 
warned that Egypt's history with colonialism, occupation and 
war still impacts Egypt's foreign relations.  On border 
security, Tantawi reiterated his long-standing request to 
deploy and equip another unit of Border Guard Forces (BGF) to 
counter smuggling on the Gaza border.  Assistant Minister of 
Defense MG Fouad abd el Halim said that factors out of 
Egypt's control led to the under-disbursement of FMF this 
year, but predicted that Egypt would spend all available 
funding in FY08.  The Ambassador encouraged Egypt to play a 
strong and supportive role as the U.S. works to advance the 
peace process.  (Note:  Just two hours after the meeting, MG 
Fouad advised us that the Minister has ordered that all 
border security-related procurement be placed at the top of 
Egypt's prioritized list of cases for FY08.  End note.)  End 
summary. 
 
FMF: The Ten-year Package and Conditioning FMF 
--------------------------------------------- - 
 
¶2.  (C)  Minister of Defense Field Marshal Tantawi told the 
Ambassador on September 16 that the mil-to-mil relationship 
had always been the leading component of the broader 
bilateral relationship and said, with some lament, "I don't 
know what happened."  The Ambassador highlighted BRIGHT STAR 
and the MCC as opportunities for positive engagement and 
reaffirmed the Administration's commitment to sustaining FMF 
at USD 1.3 billion for another ten years beginning in FY09. 
The Ambassador also reminded Tantawi that Senate 
Appropriations staff member Paul Grove told the Minister in 
July 2007 that the FMF amount is not sacred -- it is not 
guaranteed and could be adjusted up or down -- and that there 
must be a solid annual justification for the assistance. 
Commenting on the decision to increase FMF for Israel, 
Tantawi said "my advice is that the U.S. should maintain a 
balance;" the "main job of the Embassy," in his view, is to 
convince Congress of the importance and uniqueness of the 
relationship with Egypt.  Assistant Minister of Defense for 
Armament MG Fouad abd el Halim also said the U.S. should 
maintain the traditional 3-to-2 assistance ratio between 
Israel and Egypt. 
 
¶3.  (C) Tantawi said that the assistance debates impact not 
only the military and other government officials, but also 
the Egyptian people, who are "intelligent and sensitive." 
Referring to the 2007 amendment by Representative Obey, 
Tantawi said that "those in Congress who would try to 
pressure Egypt through the military on issues regarding the 
judiciary, police or borders should know this will not work." 
 President Mubarak was very angry about this development, 
Tantawi explained -- it was carried out as though Egypt is 
weak and can be ordered to do things.  "It could have been 
handled another way," he said, again highlighting the 
sensitivity of the Egyptian people to what they perceive as 
foreign interference.  Tantawi then recounted that when he 
was a boy, a British officer ordered him to leave the public 
sidewalk in central Cairo and to cross the street so as to be 
out of the way.  "This was in my own country," Tantwai said; 
"I was not doing anything wrong."  "Colonialism, the wars and 
Israeli occupation of Sinai are historic issues that we can't 
leave behind." 
 
Mil-to-Mil Cooperation 
---------------------- 
 
¶4.  (C) The Ambassador and Tantawi acknowledged that there 
are issues in the mil-to-mil relationship on which the U.S. 
and Egypt differ.  Tantawi said that at times "circumstances 
will not allow us to be flexible," but he urged the 
Ambassador to advise him of issues in which the U.S. would 
like more cooperation.  Tantawi recalled a 1977 incident in 
which he was the Defense Attache in Islamabad when Egypt's 
Minister of Defense, who was passing through Islamabad, 
learned that China claimed not to have MIG parts that Egypt's 
Minister of Defense had requested.  Tantawi approached his 
U.S. counterpart for guidance on how to handle the 
"impossible" explanation by the Chinese, and said that 
"within hours" the U.S. contact had provided him a full list 
of all of the parts the U.S. knew the Chinese would have. 
 
¶5.  (C)  Border security, the Ambassador said, remains a high 
priority for the USG, and asked the Minister to increase to 
750 the number of Border Guard Forces (BGF) on the border 
with Gaza and to do everything else possible to stem 
smuggling.  Tantawi repeated his long-standing request that 
Israel agree to allow Egypt to deploy another border guard 
unit (with equipment), noting that the current number of 
troops is insufficient to patrol the 14 kilometer border with 
Gaza, and even less the 28 kilometer Mediterranean Sea coast 
of Zone C.  "Israeli PM Olmert promised me last year that he 
would work on this," Tantawi said, but nothing came of it. 
"Instead of tying our hands behind our backs and then 
demanding that we do something," Tantawi said that the 
Israelis should explain how they would do a better job on the 
border.  (Note:  MG Fouad called poloff after the meeting to 
report that the Minister had ordered that all border 
security-related procurement cases be ranked as the highest 
priority cases for FY08.  End note). 
 
 
FMF Management 
-------------- 
 
¶6.  (C)  The Ambassador cautioned that the FY07 
under-disbursement of FMF must be addressed quickly.  MG 
Fouad explained that he is confident that with a Financial 
Management Review (FMR) in early 2008, the U.S. and Egypt 
will succeed in scheduling disbursement of over USD 2 billion 
in FY08 to make up for the shortfall in FY07.  Egypt cannot 
control most of the factors that cause the problem, Fouad 
said.  Poorly performing cases, State's slow processing of 
36b congressional notifications for the Beechcraft, Stingers, 
APCs and M1A1, and the fact that the services have held over 
"200 Letters of Request" (all still requiring Letters of 
Acceptance) have all led to a shortfall in FY07 spending. 
Although Egypt has only spent 900 million thus far in FY07, 
Fouad said, MoD expects nonetheless to spend USD 1.1 billion 
by Oct. 1.  Fouad promised to present at the FMR a complete 
list of prioritized cases (already approved by the Field 
Marshal) for FY08. 
 
Peace Process 
------------- 
 
¶7.  (C) The Ambassador stressed the importance of Egypt's 
support for the U.S. efforts to advance the peace process, 
always a matter at the core of the U.S.-Egyptian partnership. 
 Lately, however, Egypt's role has appeared more passive than 
that of other Arabs, including the Palestinians themselves. 
RICCIARDONE