VZCZCXYZ0000
OO RUEHWEB

DE RUEHEG #2492/01 3461739
ZNR UUUUU ZZH
O 111739Z DEC 08
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1034
INFO RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL IMMEDIATE
RHMFISS/JOINT STAFF WASHINGTON DC IMMEDIATE
RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
RHMFIUU/CDRUSASAC FT BELVOIR VA IMMEDIATE

UNCLAS CAIRO 002492 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ELA (IRWIN) AND PM (ARCHETTO) 
 
E.O. 12958: N/A 
TAGS: PREL MASS MARR EG
SUBJECT: EGYPT: COUNTRY TEAM ASSESSMENT FOR THE PROCUREMENT 
OF TWENTY-FOUR (24) AH-64D APACHE HELICOPTER (BLOCK II) 
WITH MTADS TO SUPPORT THE GOVERNMENT OF EGYPT'S (GOE) 
RECONNAISSANCE AND BORDER SECURITY MISSIONS 
 
REF: A. GOE MINISTRY OF DEFENSE LETTER OF REQUEST (LOR) 
        8-135 FOR LETTER OF OFFER AND ACCEPTANCE 
        (LOA) DATED 15 JUL 08. 
     ¶B. ATTACHMENT 1 TO LOR 08-135 TOTAL PACKAGE 
        REQUIREMENTS FOR CASE DEVELOPMENT DATED 
        15 OCT 08. 
     ¶C. USASAC LETTER FOR BLOCK II APACHE PROCUREMENT 
        TIMELINE DATED 16 JUL 08. 
 
¶1. (SBU) Description.  In REF A, The GOE submitted a request 
to procure twenty-four (24) AH-64D Helicopters (BLK II) with 
the Modernized Target Acquisition and Designation System 
(MTADS), the required infrastructure/facility upgrades, 
logistical and technical support requirements.  This case 
will include an additional (36) MTADS kits to modernize 
current fleet of aircraft with spares and software upgrade 
for Longbow Crew Trainer (LCT).  These aircraft will perform 
Reconnaissance and Security missions for the EAF, as well as 
support the Ministry of Defense (MOD).  These aircraft will 
perform tasks associated with Airborne Reconnaissance, Border 
Security and Defense, as well as night Search and Rescue 
missions with the MTADS.  All missions will be in compliance 
with the standards and regulations outlined within current 
international and regional agreements.  Additional 
information is available at www.mmc.gov.eg. 
 
¶2. (SBU) Reason the purchaser desires the articles or 
services.  Recent events throughout Egypt and the region with 
regard to border security, as well as the Egyptian Air 
Force,s efforts to modernize their existing Apache 
Helicopter fleet support the GOE initiative.  These 
additional aircraft will replace combat capability due to the 
loss or retiring of older airframes.  This procurement is in 
concert with the GOE 2025 Plan to increase the Apache force 
structure to a preplanned level to perform all required 
missions.  The AH-64D (Apache) helicopter with MTADS and 
improved mission equipment was identified by the U.S. Army 
and Apache Program Manager more than a year ago, as a 
suitable rotary-wing platform to support the GOE specific 
mission requirements.  The procurement of additional Block II 
Apaches is the next logical step to ensure the continued 
modernization of the EAF fleet, long-term sustainability with 
the U.S. Army and interoperability with other GOE allies. 
This action will greatly increase the overall capability of 
the EAF to support attack helicopter operations across 
multiple mission profiles.  In addition, this new case will 
incorporate the total package requirements to address much 
needed program improvements in the areas of training, 
infrastructure and airfield operations.  An increase in 
aircraft availability will enhance the overall readiness of 
the fleet and individual aviator proficiency. 
 
¶3. (SBU) How the articles or services would affect the 
recipient,s force structure.  The EAF originally procured 36 
AH-64A Helicopters in 1994 and contracted the remanufacturing 
of 35 aircraft from A to D model for $440 million from 
2001-2006.  Since the inception of the program, the EAF have 
had two incidents that resulted in the total loss of both 
aircraft.  The EAF completed the D Model aircraft upgrade in 
2006 and currently operate and maintain 34 AH-64D aircraft at 
Abu Hammad and Katamaya Air Bases.  There will be no change 
to the existing mission and primary roles of the AH-64D. 
These additional aircraft would substantially assist the MOD 
and EAF with allocating additional resources to the various 
missions. 
 
¶4. (SBU) How the articles or services would contribute to 
both the U.S. and the recipient,s defense/security goals. 
Aircraft sales are consistent with DOD's Security Cooperation 
Guidance as it enhances the territorial security and crisis 
response capabilities of regional states.  It assists the 
U.S. in enabling allies and partners, while also protecting 
U.S. and partner interests.  It supports the modernization 
and transformation of allies or partners to reduce their 
vulnerability to external military sales.  Finally, it 
improves their ability to operate independently without 
significant reliance on U.S. or coalition Forces.  These 
additional aircraft will significantly increase the amount of 
OCONUS-US based training; joint training exercises and may 
possibly influence the frequency of coalition operations with 
the US and its other allies. 
 
¶5. (SBU) Justification for the type and quantity of articles 
or services requested.  The EAF completed a detailed analysis 
 
 
 
and review of several suitable airframes with input from the 
Apache Program Management Office and the Apache Program 
Manager at the Security Assistance Management Directorate 
(SAMD).  Their findings revealed that the AH-64D with MTADS 
is an excellent airframe to support the various GOE missions. 
 The procurement of these aircraft is a natural progression 
to modernize assets and significantly improve an existing 
capability while closely mirroring the U.S. force structure. 
 
¶6. (SBU) Combatant Commander's concurrence to the 
introduction of a new warfighting capability to the nation or 
region.  Combatant Commander's concurrence will be provided 
separately. 
 
¶7. (SBU) Anticipated reactions of the neighboring nations. 
The procurement of these additional attack helicopters should 
not influence the regional balance of power or cause negative 
reactions from any of Egypt's neighbors.  This procurement 
introduces an increase in capability for Egypt, but does not 
introduce new technology region or international customers. 
Several international customers have recently purchased 
similar airframes through the Foreign Military Sales (FMS) or 
Direct Commercial Sales (DCS) programs, with U.S. 
concurrence.  These assets will greatly enhance Egypt,s 
ability to participate in combined regional training 
exercises, as well night search and rescue missions.  This 
procurement will not impact Israel's qualitative military 
edge. 
 
¶8. (SBU) Assessment of the nation's ability to account for, 
safeguard, operate, maintain, and support the articles.  The 
GOE has demonstrated the intent and ability to protect 
sensitive, classified military technology over an extended 
period.  Egypt signed a General Security of Information 
Agreement with the U.S. and as a customer, has purchased and 
protected the sensitive technology of other U.S. weapons 
systems.  Egypt has procured similar rotary-wing aircraft in 
the past to include thirty)four (34) AH-64D Helicopters that 
currently provide support to the EAF and MOD.  The 
preponderance of Apache helicopters are located at Abu Hammad 
Air Base, with approximately a third of the fleet located at 
Katamaya Air Base for training.  The EAF has met all previous 
security and End Use monitoring (EUM) requirements. 
 
¶9. (SBU) Training required either in-country or in the United 
States and anticipated reactions resulting from the presence 
of U.S. trainers in country.  The EAF already maintains a 
Wing of thirty-four (34) AH-64D Helicopters.  The majority of 
EAF pilots and maintenance personnel currently complete all 
AH-64D Apache Aviator Qualification Courses (AQC), Instructor 
Pilot Courses (IPC), Maintenance Test Pilot (MTP) Courses, 
Flight Engineer and maintenance related courses in the U.S. 
The addition of twenty-four (24) aircraft will increase the 
EAF,s stateside training requirements by more then forty 
(40) AQCs, six (6) IPCs, four (4) MTP courses and twenty-six 
(26) aircraft maintenance related courses.  There is no 
requirement for an additional Mobile Training Team (MTT). 
The continued presence of the Apache Technical Assistance and 
Fielding Team (TAFT) is required to support the fleet 
throughout the duration of aircraft delivery.  The presence 
of U.S. trainers in country will have little anticipated 
reaction because of the long-term existence of Security 
Assistance Teams (SATs) already assigned in country. 
 
¶10. (SBU) Possible impact of any in-country U.S. presence 
that might be required as a result of providing the article. 
U.S. Government civilian personnel and U.S. contractors are 
permanently assigned to Egypt to support the current EAF 
AH-64D program.  Those US positions have been filled for over 
ten years.  There is an expected increase of US personnel in 
country that would be necessary to support the arrival, 
bed-down and sustainment of the additional aircraft 
maintained at two locations resulting from this procurement. 
A majority of the personnel will be on temporary duty status 
and very few positions will require additional personnel to 
remain in Egypt for more than one year.  Additionally, U.S. 
Government teams and U.S. contractor teams routinely travel 
to Egypt to support the various weapon systems procured 
through the U.S. FMS programs.  There is no anticipated 
negative impact that would result from the continued presence 
of these Americans in Egypt. 
 
¶11. (SBU) Source of financing and the economic impact of the 
proposed acquisition.  Egypt plans to procure these 
 
 
 
twenty-four (24) aircraft utilizing Foreign Military 
Financing and has already allocated sufficient funds within 
their FY09-FY15 budget.  This acquisition is essential for 
the GOE to conduct Airborne Reconnaissance, Border Security 
and Defense, as well as night Search and Rescue missions. 
This requirement is on both the FY09 JAVITS Report and the 
Egyptian Armament Authority (EAA) Priority List.  Egypt is 
not planning to use national funds to pay for any portion of 
this procurement.  The economic impact of the proposed 
acquisition will generate an estimated $900 million dollars 
for the U.S. Army,s Program and the U.S. economy.  The 
immediate sale of these Block II aircraft is critical as the 
Apache manufacturing line converts to Block III aircraft in 
2011 to support the total U.S. Army fleet conversion over the 
next seven years.  The International Apache Program office 
and U.S. Army Security Assistance Command (USASAC) have 
advised the EAF in formal correspondence (REF C) that in 
order for Egypt to secure its position in the aircraft build 
line and delivery schedule, an LOR must be submitted to 
USASAC NLT DEC 08, with LOA implementation NLT 30 JUL 09. 
 
 
¶12. (SBU) Human rights considerations relevant to the 
proposed acquisition. None. 
 
¶13. (SBU) A plan for end-use monitoring for sensitive and 
advanced war fighting technology and the SAO,s plan for 
compliance verification.  The Office of Military Cooperation 
(OMC) Egypt has a robust Golden Sentry Program.  The Golden 
Sentry Program representative and Security Assistance Officer 
(SAO) responsible for the program, will coordinate for the 
review and maintenance of required documentation.  All 
parties will maintain serial number lists of all components 
within the inventory or transferred, and will conduct the 
mandated inspections as required.  This coordination will 
ensure that historical copies of all EUM Inspection results 
and customer,s physical security and accountability control 
plans remain on file.  The Egyptian military currently has 
over 100 helicopters (FMS) of various configurations in 
country.  Egypt has maintained accountability and security of 
these aircraft without unauthorized loss, theft, or access to 
date.  The GOE has indicated a willingness to meet U.S. 
guidelines for accountability and security of these advanced 
aircraft, and the Office of Military Cooperation will conduct 
End Use Monitoring (EUM) of all required components if this 
request is approved. 
 
¶14. (SBU) Recommendation whether the USG should approve 
transfer of the article and justification.  The country team 
supports the USG approval of the GOE procurement of up to 
twenty-four (24) additional AH-64D helicopters.  This 
purchase will increase combat capability, replace 
aging/obsolete aircraft and address major shortfalls in the 
current AH-64D program.  It will give the USG an opportunity 
to promote better interoperability by encouraging increased 
joint and/or combined operations.  Funds from this case will 
be utilized to address current shortfalls in 
operational/maintenance formal training, base support 
infrastructure and English language training.  However, this 
request is the lowest priority of the EAF,s four current 
aircraft procurement requests (C-130J, CH-47D, F-16 and 
AH-64D.  The EAF under utilizes their current AH-64Ds and 
does not face an immediate threat.  Increased airlift for 
potential coalition operations and humanitarian assistance is 
more important to the USG.  The country team also supports a 
split or reduced buy because it will significantly help 
facilitate cash flow payments for this and other programs 
over the next eight fiscal years.  We recommend an initial 
purchase of 14 airframes.  That will allow the EAF to field 
two complete Wings similar to U.S. Army units.  The last 10 
aircraft will be at risk due to closure of the AH-64D Block 
II assembly line.  This is a suitable alternative due to 
funding restraints because the first phase of this 
procurement will incorporate much need program improvements 
and the EAF possesses adequate combat capability without the 
additional aircraft.  This is a coordinated mission position. 
 
 
 
SCOBEY