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P 261616Z JUN 08
FM USMISSION USOSCE
TO RUEHC/SECSTATE WASHDC PRIORITY 5798
INFO RUCNOSC/ORG FOR SECURITY CO OP IN EUR COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 0545
RUEAIIA/CIA WASHDC
RUEHUNV/USMISSION UNVIE VIENNA 1099
RUEKJCS/DIA WASHDC
RUEHGV/USMISSION GENEVA 1044
RUEKJCS/SECDEF WASHDC
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RHMFISS/CDRUSAREUR HEIDELBERG GE
RHMFISS/CDR USEUCOM VAIHINGEN GE//ECJ5-T/ECPLAD/ECCS//
RHMFISS/CDR USCENTCOM MACDILL AFB FL
RUEASWA/DTRA ALEX WASHINGTON DC//OSAE
RUESDT/DTRA-OSES DARMSTADT GE
RUEKJCS/JOINT STAFF WASHDC//J5-DDPMA-E/DDPMA-IN/CAC//
RUEADWD/DA WASHINGTON DC

UNCLAS SECTION 01 OF 05 USOSCE 000166 
 
SENSITIVE 
SIPDIS 
 
STATE FOR VCI/CCA, VCI/NRRC, EUR/RPM, EUR/PRA, EUR/CARC, 
SCA/CEN, SCA/RA, PM/WRA 
JCS FOR J5 
OSD FOR ISA (PERENYI) 
NSC FOR DOWLEY 
USUN FOR LEGAL, POL 
CENTCOM FOR CCJ5-C, POLAD 
UNVIE FOR AC 
GENEVA FOR CD 
 
E.O. 12958: N/A 
TAGS: PARM PREL OSCE KCFE MCAP MOPS XG
SUBJECT: FSC JUNE 25: LITTLE CONTROVERSY IN PRIVATE 
MILITARY COMPANIES SECURITY DIALOGUE 
 
¶1. (SBU) Summary:  Austrian Brigadier Feichtinger described 
the increasing importance of private military/security 
companies as a "worrisome development" that challenges the 
democratic control of the armed forces and the state's 
monopoly on the legitimate use of violence.  The U.S., in 
response, noted recent U.S. initiatives to enhance the 
discipline and accountability of contractor personnel in war 
zones.  The FSC adopted a decision endorsing for publication 
Best Practices Guides on the destruction and physical 
security of stockpiles of conventional ammunition. 
 
¶2. (SBU) In the working groups, discussion continued on the 
draft decision on updating the OSCE conventional arms 
transfers reporting categories, although there was no 
objection to the latest version's deletion of both automatic 
updates and the provision of information to the UN on arms 
transfers with non-participating States.  Several delegations 
endorsed the Belarusian proposal for an information exchange 
and Conflict Prevention Center analysis on end-user 
certificates.  After discussion of the latest version of the 
Franco-Belgian proposal for an information exchange and "Best 
Practices" on transfer of small arms and light weapons by air 
the chair announced she would reissue the paper as a draft 
decision.  The proposed update of the Code of Conduct 
Questionnaire was partially redrafted and another version 
will soon be issued.  End summary. 
 
Security Dialogue: Private Military Companies 
--------------------------------------------- 
 
¶3. (SBU) Brigadier Walter Feichtinger of the Austrian Defense 
Forces Academy described the growing role of private military 
or security companies (PMCs) as a "worrisome development." 
Feichtinger said he was not describing the private security 
guard at the front door to the Hofburg, but for-profit 
enterprises that function "like military units" and undertake 
"external missions."  These contractors perform military 
missions like piloting UAVs, collecting intelligence, 
providing force protection, detaining and interrogating 
prisoners, and escorting convoys. Feichtinger asserted there 
were 20,000 to 40,000 military contractors "wearing weapons" 
in Iraq, out of as many as 180,000 contractors.  Their 
services, he said, cost almost 150 billion dollars a year. 
 
PMCs Appeal to "Post-Heroic Age" 
-------------------------------- 
 
¶4. (SBU) Feichtinger ascribed the growth of PMCs to the 
simultaneous draw-down of regular forces after the Cold War 
and the explosion in the number of crisis management 
missions.  In a "post-heroic age," he posited, electorates do 
not want to see body bags.  Instead, some of these new 
missions have been given to PMCs, which are not of great 
interest to the media or the larger population.  He cited the 
"little-noted" 1,000 "private soldiers," killed in Iraq 
during the same time that the U.S. lost 4,000 of its regular 
forces. 
 
¶5. (SBU) The long-term commitments required by post-Cold War 
conflicts such as Sudan/Darfur will increasingly be met by 
reliance on PMCs, he concluded, citing the recent example of 
the EU police mission to Afghanistan that required 500 police 
officers but got only 50 and filled the balance with PMC 
contractors. PMCs help fill gaps, Feichtinger explained, and 
improve capabilities, accelerate response times, and may even 
 
USOSCE 00000166  002 OF 005 
 
 
be more economical than regular forces, although on the last 
he was skeptical as there was still insufficient evidence. 
Could PMCs Threaten Democratic Control of Armed Forces? 
--------------------------------------------- ---------- 
 
¶6. (SBU) Feichtinger said the challenge for states is 
retaining effective control over the use of force.  This 
means ensuring PMCs uphold international humanitarian law. 
States need to investigate and prosecute violations of these 
laws, as well as ordinary crimes, wherever PMCs operate. 
Regular armed forces need to establish command and control 
over PMCs to avoid friendly fire incidents. 
 
¶7. (SBU) Feichtinger fears that growing reliance on PMCs in 
the absence of sufficient controls may threaten established 
principles of democratic control over armed forces and the 
state's monopoly over the legitimate use of force.  PMCs, if 
they become too powerful, may improperly influence foreign 
policymaking, even operate at cross-purposes to their nominal 
masters in a government.  Feichtinger speculated a PMC could 
be tempted to prolong a conflict in order to increase its 
earnings. 
 
Montreux Conference 
------------------- 
 
¶8. (SBU) Feichtinger said the OSCE and other international 
organizations could play an important role in setting 
international standards for PMCs.  National legislation was 
not enough.  He described the ongoing work of experts from 
several countries, including the U.S., on establishing norms 
for PMCs. 
 
¶9. (SBU) Switzerland (von Arx) said it was co-hosting, with 
the International Committee of the Red Cross, the work of the 
experts, who will meet again September 15-17 in Montreux.  A 
report, focused on legal issues, will be prepared at the 
meeting and will be made available to the OSCE. 
 
U.S. Responses to Contractors in War Zone 
----------------------------------------- 
 
¶10. (SBU) The U.S. (Neighbor) concurred that the topic was 
timely, noting that the U.S. Department of Defense reported 
to Congress in April 2008 that it had some 163,000 persons 
working for contractors in Iraq, of whom about 10,000 were 
with private security firms.  Neighbour reported on U.S. 
efforts to ensure the accountability and discipline of 
contractors, including the Military Extraterritorial 
Jurisdiction Act and the extension of Uniform Code of 
Military Justice jurisdiction to defense contractors in Iraq. 
 Feichtinger later said, in response to a question from 
Spain, that the U.S. had decreed its contractors were immune 
from Iraq's criminal law. 
 
¶11. (SBU) Germany (Kantorczyk) noted with approval that this 
was the first discussion of PMCs at the OSCE.  Germany did 
not want PMCs to perform "core" military tasks as this would 
erode the state's monopoly on the use of force.  Germany had 
great expectations for the results of the Montreux 
conference.  Feichtinger agreed that core tasks should not be 
delegated, but said there was "creeping" engagement by PMCs 
in these areas, e.g., shooting at the enemy and piloting 
military aircraft. 
 
 
USOSCE 00000166  003 OF 005 
 
 
Ammunition Best Practices Guides 
-------------------------------- 
 
¶12. (SBU) The Forum adopted without discussion the decision 
to endorse the Best Practices Guides on the destruction and 
physical security of stockpiles of conventional ammunition 
(FSC.DEC/7/08). 
 
Chair's Response to CiO on April 20 UAV Incident 
--------------------------------------------- --- 
 
¶13. (SBU) Estonia, the chair, announced it would distribute a 
draft of its response to the CiO on the April 20 UAV incident 
in Georgia (FSC.DEL/115/08).  Parts noted her response was 
not a consensus document.  Her intent is to submit it before 
the Annual Security Review Conference, July 1-2. 
 
Conventional Arms Transfers 
--------------------------- 
 
¶14. (SBU) Germany (Schweizer) explained that the revised 
version of the draft decision to update the OSCE conventional 
arms transfer reporting categories included bracketed 
language in operative paragraph (OP) 3 that would eliminate 
automatic updates and require FSC action on any future 
changes to the UN Register on Conventional Arms 
(FSC.DD/7/08/Rev.1).  Additional language from UN General 
Assembly Resolution 61/77 has been added to OP 4 to clarify 
that information on SALW arms transfers within the OSCE can 
be provided to the UN in any format.  Schweizer also 
recommended deleting OP 5 that would have encouraged 
provision of information to the UN on arms trades with 
non-OSCE states. 
 
¶15. (SBU) Canada, the UK, Sweden, Luxembourg, Finland, and 
Switzerland supported the revisions as recommended by 
Germany.  Russia also supported, in principle, the revisions 
but needs instructions from Moscow.  The chair will issue 
another revision for consideration at the July 9 working 
group. 
 
End-User Certificates 
--------------------- 
 
¶16. (SBU) Greece, Germany, Switzerland, and the UK  support 
the Belarusian proposal for an information exchange and 
Conflict Prevention Center overview of replies 
(FSC.DEL/108/08), although all prefer the later reporting 
date, i.e., September 30, 2008.  The chair will issue the 
paper as a draft decision with the later date. 
 
Illicit, Rather, "Destabilizing" Air Trafficking 
--------------------------------------------- --- 
 
¶17. (SBU) The revised version of the Franco-Belgian proposal 
for an information exchange and list of best practices on 
measures to prevent the trafficking of SALW by air 
(FSC.DEL/62/08/Rev.2) now addresses "destabilizing" vice 
"illicit" transfers.  Canada (Gosal) objected to this change 
as providing a loophole for traders to argue that a transfer 
is not destabilizing.  Croatia, Sweden, and Russia support 
the latest version.  Russia (Ulyanov), noting all its arms 
transfers were under exclusive state control, said only 
military or government-chartered aircraft were used to 
transport SALW.  Italy confirmed its support, and suggested 
 
USOSCE 00000166  004 OF 005 
 
 
that the title of the decision could retain "illicit" as 
"destabilizing" appears in preamble paragraph 1: "excessive 
and destabilizing accumulation."  Germany and the UK 
announced they had provided edits to the co-sponsors and 
"could live with 'illicit.'"  Turkey and Romania announced 
they lacked instructions.  Belgium, a co-sponsor, (Pauwels) 
said consensus was close and urged delegations to recognize 
"the good was the enemy of the best." 
 
Code of Conduct 
--------------- 
 
¶18. (SBU) Review by the working group of the latest draft 
update of the Code of Conduct Questionnaire 
(FSC.DEL/98/08/Rev.2) led to deletion of several bracketed 
sub-sections containing new material (I.3.2, I.3.3, I.3.4, 
II.5.5, and II.5.6).  There was broad support for the most of 
the remaining text, although Turkey (Begec) reported its 
capital is still studying some passages (I.1.4, I.2.1, 
II.4.3) and, like Germany, objects to the bracketed question 
on national measures to ensure the "legitimate security 
concerns of other States" are taken into account" (II.1.2) as 
it would require divulgence of sensitive information. 
 
¶19. (SBU) Several delegations objected to the requirement to 
show their military forces "act solely within . . . OSCE 
regulations" (II.2.3), preferring deletion of the reference 
to the regulations or substitution of "OSCE norms" or "OSCE 
principles."  Germany (Schweizer) wants to insert 
"deployable" before "forces" in the same sub-section to 
emphasize that the OSCE is concerned with the behavior of 
operational forces, "not headquarters or training 
establishments." 
 
¶20. (SBU) Sweden, supported by Canada and the UK, repeated 
its long-standing demand that reference to the UN Security 
Council Resolution 1325 on women in conflict resolution 
(II.5.1) be retained. 
¶21. (SBU) The FSC Code of Conduct coordinator (Eischer, 
Austria) will issue a new revision for discussion at the July 
9 working group. 
 
Ukraine Melange Project 
----------------------- 
 
¶22. (SBU) Germany (Schweizer) urged "all participating 
States" to move the melange project in Ukraine forward so 
that work could begin by the autumn, noting the Secretariat's 
ongoing efforts to resolve some legal issues remaining in its 
MOU with the government of Ukraine. 
 
¶23. (SBU) Sweden (Nilsson) announced a donation of about 1.1 
million euros for the Ukraine melange project for this year, 
and estimated that they would provide about  600,000 euros in 
¶2009. 
 
Tajikistan SALW Project 
----------------------- 
 
¶24. (SBU) Austria (Waestfelt), noting 370,000 euros are still 
needed for the OSCE SALW and conventional ammunition project 
in Tajikistan, announced a donation of 30,000 euros. 
 
Next Meeting 
------------ 
 
USOSCE 00000166  005 OF 005 
 
 
 
¶25. (SBU) The next FSC meeting will be on July 9 and feature 
a Security Dialogue presentation by U.S. Assistant Secretary 
of Defense for Homeland Security Paul McHale; the Annual 
Security Review Conference will be held July 1 and 2. 
FINLEY