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### Viewing cable 06REYKJAVIK357, Iceland Defense Talks: PM Unveils Agreements for the

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06REYKJAVIK357 | 2006-09-27 07:07 | 2011-01-13 05:05 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Reykjavik

`

    VZCZCXRO1579
    OO RUEHAST
    DE RUEHRK #0357/01 2700733
    ZNR UUUUU ZZH
    O 270733Z SEP 06
    FM AMEMBASSY REYKJAVIK
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 2979
    INFO RUEKJCS/SECDEF WASHDC IMMEDIATE
    RUEHNY/AMEMBASSY OSLO IMMEDIATE 0257
    RUEHNO/USMISSION USNATO PRIORITY 0229
    RHMFISS/HQ USEUCOM VAIHINGEN GE PRIORITY 0032
    RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY

` `

    UNCLAS SECTION 01 OF 02 REYKJAVIK 000357

    SIPDIS

    SENSITIVE

    C O R R E C T E D  C O P Y  (PARA NUMBERING)

    SIPDIS

    DEPT FOR P (BAME), EUR/NB (MIDDLETON, MAHER), EUR/PPD
    SECDEF FOR OSD/RA (COSTA), OSD/P (KELSO, HURSCH)
    OSLO FOR DATT

    E.O. 12958: N/A
    TAGS: MARR PREL PTER KPAO NATO IC
    SUBJECT:  Iceland Defense Talks: PM Unveils Agreements for the
    Public

    REYKJAVIK 00000357  001.4 OF 002

    ¶1. (SBU) Summary:  Iceland's Prime Minister Haarde presented the
    results of the last six months of U.S.-Iceland defense talks to his
    political opposition, the parliamentary foreign affairs committee,
    and the nation in meetings and an hour-long televised press
    conference September 26.  Haarde - with the leader of the minority
    party in the coalition government by his side - described the
    provisions of the "Technical Agreement" to close Naval Air Station
    Keflavik and the "Joint Understanding" describing the way ahead in
    the bilateral security relationship, as well as a list of new
    Icelandic government initiatives on security issues.  The opposition
    has yet to respond forcefully, perhaps intimidated by the breadth
    and depth of the defense framework Haarde has presented.

    ¶2. (SBU) Following the PM's announcement, Ambassador gave interviews
    to key Icelandic media, the first step in a rollout campaign to
    affirm America's continuing commitment to Icelandic security and our
    intention to help Iceland develop (through, e.g., exercises,
    training, and defense industrial cooperation) the capability to
    contribute more to its own security.  That the GOI also unveiled
    some initiatives of its own - including a strategic studies think
    tank - reinforces our view that Haarde's government is now ready to
    break with Cold War-think and look seriously at how it can do its
    part to protect its people from contemporary threats.  End summary.

    ¶3.  (SBU) During the last round of U.S.-Iceland defense talks in
    Washington September 14, both sides were able to reach agreement on
    a technical agreement for the closure of Naval Air Station Keflavik
    (NASKEF), a political "Joint Understanding" on the way forward for
    defense relations, and amendments to certain classified annexes to
    the original 1951 Defense Agreement between the U.S. and Iceland.
    Prime Minister and Independence Party head Geir Haarde met with
    opposition party members and the Althingi (parliament) foreign
    affairs committee on 26 September to brief on the substance of the
    agreements.  Haarde followed this at the end of the day with a
    pre-announced, nationally-broadcast press conference.

    ¶4.  (U) In his hour-long press conference, Haarde - joined as in the
    other meetings by his junior coalition partner, Minister of Commerce
    Jon Sigurdsson of the Progressive Party, stepping in for the absent
    Foreign Minister - proclaimed himself satisfied with the results of
    the negotiations and affirmed that there was no fundamental change
    to the terms of the 1951 Agreement.  He noted that he had spoken to
    U/S Burns earlier in the day to confirm that all the details were
    taken care of on the U.S. side, and said Foreign Minister
    Sverisdottir and an appropriate official on the USG side would sign
    the Technical Agreement within the next few days.  Haarde said he
    and the Foreign Minister will travel to Washington to sign the Joint
    Understanding in the next month.

    ¶5.  (SBU) Haarde also unveiled a list (some not previously raised
    with the USG) of additional GOI initiatives for both the base
    transition and defense planning tracks, including:

    --creation of a publicly-owned development corporation to manage the
    conversion of the former NASKEF site to civilian use;

    --creation of a cabinet-level body similar to a national security
    council, with its first task the review of all public security
    legislation;

    --increased interagency cooperation between police, Icelandic Coast
    Guard (ICG), and emergency services;

    --purchase of new fixed-wing aircraft and ships for the ICG after
    new ICG helicopter acquisition is completed; and

    --creation of a think tank on security issues to include
    representatives from all political parties.

    ¶6.  (U) At the press conference, Haarde described at some length the
    substance of the Joint Understanding and Technical Agreement, noting
    at several points the government's satisfaction at the outcome of
    the negotiations.  In particular, he described the USG's ongoing
    commitment to defend Iceland, which he noted goes beyond the
    guarantees offered by NATO membership.  The PM pointed to the Joint
    Understanding's provisions on the intent to hold annual exercises in
    Iceland, and expressed his confidence that such exercises would
    underline the U.S. military's ability to defend Iceland with mobile,
    agile forces.  He also described the GOI's hopes for further
    engagement with U.S. law enforcement agencies as well as the U.S.
    Coast Guard, as set out in the Joint Understanding.

    REYKJAVIK 00000357  002.4 OF 002

    ¶7.  (U) Haarde also devoted considerable time to the issue of
    environmental mitigation at the NASKEF site, noting that the two
    governments had expended considerable effort on the matter.
    Commenting that it is simply not possible to run an airport without
    pollution, Haarde outlined U.S. military efforts at environmental
    cleanup over the years and emphasized that of the known 60 sites
    with some form of pollution, none are known to pose a danger to
    human health.  The PM said the GOI was pleased with the information
    it had received from the U.S. military on environmental issues and
    said this information and further plans for environmental mitigation
    efforts would be made public.

    ¶8.  (U) For his part, Minister of Commerce Jon Sigurdsson (standing
    in for Foreign Minister and fellow Progressive Party member
    Valgerdur Sverrisdottir, in New York for the UN General Assembly)
    affirmed his party's support for the agreements, and was even more
    direct than the PM on the need for Iceland to take a bigger
    responsibility for its own security.  "We need to develop an
    independent capability so we can have a serious discussion about
    defense issues," Sigurdsson noted during the Q&A period following
    the PM's presentation.

    ¶9.  (U) Initial reaction from opposition politicians was muted, as
    they sought to absorb and interpret the broad program Haarde had
    outlined:

    -- The leading opposition Alliance party deployed parliamentary whip
    Ossur Skarphedinsson, who welcomed the government's proposals for a
    multi-party security think tank and increased law enforcement and
    security agency cooperation.  At the same time, Skarphedinsson
    complained that the talks' outcome still left Icelanders in doubt as
    to their security, as "no Icelander except for two ministers has
    seen" the EUCOM defense plan for Iceland.

    -- Left-Green Chairman Steingrimur Sigfusson, a declared pacifist,
    welcomed the departure of U.S. forces but criticized the GOI for
    permitting the U.S. to leave without bearing full responsibility for
    environmental issues on the base.  He stated his opposition to
    future exercises and defense cooperation as outlined in the
    agreements, saying he had hoped Iceland would take the opportunity
    to abrogate the 1951 bilateral agreement and establish an
    independent foreign policy.

    ¶10.  (SBU) Following the PM's announcement, Ambassador gave
    interviews to several of Iceland's leading media outlets.  We plan
    to continue our outreach efforts in the media and with contacts from
    numerous affinity groups (e.g. parliamentarians, business leaders,
    students) over the days ahead.

    ¶11.  (SBU) Comment:  The PM played it straight during his press
    conference outlining the defense agreements, delving into the finer
    details of the agreements with confidence.  His comprehensive
    overview of the documents will likely help to counter some criticism
    - already being voiced by opposition party members seemingly too
    overwhelmed by  the sheer volume of information they received today
    to mount a nuanced riposte - that the GOI could have "gotten a
    better deal" if it had been better prepared for the talks.
    Similarly, Haarde's efforts to keep the focus on future bilateral
    cooperation in defense and security affairs, as well as the
    unveiling of a list of domestic GOI initiatives in this area, will
    be to our benefit as we seek to expand on this message in the weeks
    and months ahead.   One indication of how far the conversation on
    security affairs has come in six months was the PM's use of the
    phrase "a new chapter" in Iceland-U.S. relations, the same metaphor
    that Icelandic media - convinced the base closure would bring to an
    end the U.S.-Iceland security saga - excoriated U.S. officials for
    using back in March.

    VAN VOORST

`