P 251117Z JAN 09
FM AMEMBASSY CAIRO
TO SECSTATE WASHDC PRIORITY 1451
INFO HQ USCENTCOM MACDILL AFB FL PRIORITY
JOINT STAFF WASHINGTON DC PRIORITY
SECDEF WASHINGTON DC PRIORITY
CDRUSASAC FT BELVOIR VA PRIORITY

UNCLAS CAIRO 000125 
 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL MASS MARR EG
 
SUBJECT: EGYPT: COUNTRY TEAM ASSESSMENT FOR THE PROCUREMENT 
OF TWELVE (12) AH-64D APACHE HELICOPTER (BLOCK II) WITH 
MTADS TO SUPPORT THE GOVERNMENT OF EGYPT,S (GOE) 
RECONNAISSANCE AND BORDER SECURITY MISSIONS. 
 
REF: A. A. GOE MINISTRY OF DEFENSE LETTER OF REQUEST 
        (LOR) 08-135 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 twelve (12) 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-terQsustainability 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 twelve (12) aircraft will increase the EAF, 
stateside training requirements by more then twnty-six (26) 
AQCs, three (3) IPCs, three (3) MTPcourses and fourteen (14) 
aircraft maintenance rlated courses.  There is no 
requirement for an aditional Mobile Training Team (MTT). 
The continue presence of the Apache Technical Assistance and 
Fielding Team (TAFT) is required to support the flet 
throughout the duration of aircraft delivery. The presence 
of U.S. trainers in country will hae 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 twelve 
(12) 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 
more than $650 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 
twelve (12) 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.  The purchase of additional airframes should in no 
way diminish the amount of follow-on support for the current 
fleet.  Also, there will be funding lines in the Letter of 
Acceptance for training, to include pilot and English 
language and infrastructure for overall base improvements. 
Particulars for the infrastructure and training are contained 
as an attachment to the Letter of Request.  This is a 
coordinated mission position. 
SCOBEY 
 
 
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