PDASD Shivers, Ambassador Mulford, Foreign Secretary Menon, and Defense Secretary Singh initialed on May 29 a text for End-Use Monitoring for self-protection suites (including LAIRCM), clearing away the largest obstacle to finalization of the sale of head of state aircraft to India.

155930, 5/29/2008 13:24,08 NEWDELHI 1457, Embassy New Delhi, CONFIDENTIAL,, "VZCZCXYZ0025OO RUEHWEBDE RUEHNE #1457/01 1501324ZNY CCCCC ZZHO 291324Z MAY 08FM AM EMBASSY NEW DELHI TO RUEKJCS/SECDEF WASHDC IMMEDIATERUEHC/SECSTATE WASHDC IMMEDIATE 1925RHMFISS/SAF WASHINGTON DC IMMEDIATEINFO RUCPDOC/DEPT OF COMMERCE WASHDCRHEHAAA/WHITE HOUSE WASHDCRHEFDIA/DIA WASHDCRUEAIIA/CIA WASHDCRHEHNSC/NSC WASHDCRUEIDN/DNI WASHINGTON DCRHMFISS/HQ USCENTCOM MACDILL AFB FLRHHMUNA/HQ USPACOM HONOLULU HIRUEKJCS/JOINT STAFF WASHDC","C O N F I D E N T I A L NEW DELHI 001457

SIPDIS

E.O. 12958: DECL: 05/29/2018 TAGS: MARR, PGOV, PREL, ETRD, IN SUBJECT: INDIA, U.S. INITIAL END-USE MONITORING AGREEMENT FOR VVIP AIRCRAFT

Classified By: Ambassador David C. Mulford for Reasons 1.4 (B, D)

1. (C) Summary. PDASD Shivers, Ambassador Mulford, Foreign Secretary Menon, and Defense Secretary Singh initialed on May 29 a text for End-Use Monitoring for self-protection suites (including LAIRCM), clearing away the largest obstacle to finalization of the sale of head of state aircraft to India. India requested that U.S. Air Force review LAIRCM specific provisions to take into account Indian security procedures and concerns; resolution of this issue will be required prior to delivery of the aircraft. End Summary.

2. (C) Principal Deputy Assistant Secretary of Defense Mitchell Shivers and Ambassador reached agreement with Indian National Security Advisor MK Narayanan on text for End-Use Monitoring (EUM) to be included in the amended Letter of Offer and Acceptance (LOA) for the deal to sell self-protection suites -- including the Large Aircraft Infrared Counter Measures (LAIRCM) -- for three Indian head of state aircraft. Indian Foreign Secretary Shivshankar Menon, Defense Secretary Vijay Singh and PDASD Shivers initialed the agreed text on May 29 in the presence of Narayanan. Head of Prime Minister's VVIP security Mr. Wanchu was also present at the meeting.

3. (C) Accepting without any changes the proposed text PDASD Shivers had provided, Narayanan said the Indian government is quite mindful of the need to protect the technology which protects several heads of state, and said India had no problem with the security requirements for the equipment. Narayanan did note that political sensitivities remain over the principle of on-site inspections, and expressed appreciation for the text's creative wording, such as using ""joint consultation to include an on-site review"" in lieu of ""on-site inspection."" Following PDAS Shivers' expression of empathy for India's perception that the U.S. had added the EUM requirement after an initial LOA had been signed in 2005, Foreign Secretary Menon noted his appreciation but asked that there be no future reference to any ""shifting of the goalposts,"" rather that the entire deal had just been a continuum of discussions. Both sides also agreed that the EUM initialed today stood on its own and would neither be a precedent for future deals nor apply to other weapons systems. Text of the EUM which was initialed is given in paragraph five.

4. (C) At the Indian request, subsequent to the Shivers-Narayanan meeting, technical experts from both sides met to discuss Indian concerns over U.S. Air Force Enhanced End-Use Monitoring (EEUM) requirements for the LAIRCM system. The Indian side provided a copy of a briefing describing their security procedures for the head of state aircraft, which they had presented to the technical team on May 28. The U.S. side agreed to pass the Indian presentation and Indian concerns to the U.S. Air Force for expeditious review and response. The Indian side repeatedly requested that ongoing negotiations on EEUM not delay delivery of the aircraft. The U.S. side made it clear that agreement on EEUM was necessary prior to delivery of the aircraft, and the LOA Amendment had to be signed prior to start of the flight tests.

5. (C Text of EUM initialed on May 29, 2008. Begin text:

May 28, 2008

Proposed EUM Note for Indian VVIP Aircraft

""Pursuant to section 40A of the Arms Export Control Act (AECA), as amended, the USG will accomplish end-use monitoring for the defense articles and defense services transferred in this Letter of Offer and Acceptance (LOA) as set forth in this note and the specific Enhanced EUM physical security and accountability requirements annotated in the note to this LOA titled ""Unclassified AN/AAQ-24(V), Large Aircraft Infrared Counter-Measures (LAIRCM) System (Revised).""

""At least annually, at the request of either party, at a mutually acceptable date, India and the USG will execute joint consultations, to include an on-site security review of the transferred articles and related security and custody procedures. India agrees to make available inventory and accountability records it maintains to U.S. personnel conducting end-use monitoring. The provisions of this note apply only to LOA IN-D-QJD and to no other transfers with the Purchaser or any other country or international organization.""

End text.

6. (C) PDASD Shivers has cleared this message.

MULFORD