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### Viewing cable 07REYKJAVIK99, Iceland: Pressing for movement on air defense radar issues

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07REYKJAVIK99 | 2007-04-04 16:04 | 2011-01-13 05:05 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Reykjavik

`

    VZCZCXRO4730
    OO RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
    RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
    DE RUEHRK #0099/01 0941632
    ZNR UUUUU ZZH
    O 041632Z APR 07
    FM AMEMBASSY REYKJAVIK
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 3241
    INFO RUEKJCS/SECDEF WASHDC IMMEDIATE
    RUEHNY/AMEMBASSY OSLO IMMEDIATE 0294
    RUEHNO/USMISSION USNATO IMMEDIATE 0246
    RHMFISS/HQ USEUCOM VAIHINGEN GE IMMEDIATE 0051
    RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY

` `

    UNCLAS SECTION 01 OF 02 REYKJAVIK 000099

    SIPDIS

    SENSITIVE

    SIPDIS

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

    E.O. 12958: N/A
    TAGS: MARR PREL NATO IC
    SUBJECT: Iceland: Pressing for movement on air defense radar issues

    Refs: A) 06 Reykjavik 357
      B) J. Hursch email 23 February 2007
      C) Hursch-Stevens-Evans emails 21 March 2007

    Sensitive but Unclassified -- entire text.  Not for internet
    distribution.

    ¶1.  (SBU) Summary:  The Icelandic Government is sending ever-clearer
    messages that it wants visible progress in U.S.-Iceland discussions
    on the NATO-owned Iceland Air Defense System (IADS) radar sites, for
    which U.S. funding expires in August 2007.  In a March 30 meeting
    with the Ambassador, Jon Egil Egilsson, Head of the Ministry for
    Foreign Affairs Defense Department, pressed hard for another round
    of bilateral U.S.-Iceland talks on the system -- and specifically,
    the possibility of U.S.-funded upgrades to the system -- as soon as
    possible this month.  Egilsson noted that February 23 talks in
    Brussels between the two sides were a fruitful start, but argued
    that clarity regarding U.S. intentions was necessary before Iceland
    could properly approach NATO about the future of the system (i.e.,
    ask NATO to foot the rest of the bill).  Post is highly appreciative
    of Washington efforts on this issue, which will be an extremely
    sensitive point for the host government up to and beyond the August
    15, 2007 date when current U.S. obligations to fund IADS expires.
    End Summary.

    ¶2.  (SBU) Background:  In October 2006, concurrent with the closure
    of Naval Air Station Keflavik, Secretary Rice and Icelandic Prime
    Minister Haarde signed a "Joint Understanding" to set the future
    course for U.S.-Iceland security cooperation (Ref A).  Among other
    things, the agreement called for the cessation of US funding for the
    Iceland Air Defense System (IADS) -- a NATO-owned network of four
    radar sites used for air traffic control and airspace monitoring
    purposes -- effective 15 August 2007.  The Joint Understanding
    further expressed the intent to discuss bilaterally and with NATO
    the funding and disposition of IADS and how future operations of
    IADS might support NATO requirements.  The first bilateral
    discussion on the future of IADS took place 23 February 2007 in
    Brussels between a DOD-led U.S. delegation and an Icelandic
    delegation (Ref B).  Head of the Ministry for Foreign Affairs
    Defense Department Egilsson requested a meeting with the Ambassador
    on 30 March to discuss the state of play and push for the next round
    of talks as soon as possible.

    ¶3.  (SBU) According to Egilsson, the critical issue for the GOI is
    upgrades to the system.  The U.S. initiated various upgrades to IADS
    prior to the closure of NAS Keflavik, but terminated these projects
    when the base closed on 30 September 2006.  Egilsson stated that it
    is Iceland's intention to maintain IADS and to integrate it into the
    NATO Integrated Air Defense System (NATINADS) with long range
    support coming from NATO.  He further stated that there are certain
    functions that Iceland cannot provide on its own, which are critical
    to the continued operation of IADS and its interoperability with
    NATO.  He considers these upgrades vital to the sustainability of
    IADS and requests feedback as to USG intent to complete the
    upgrades. Egilsson passed three documents to the Ambassador, which
    he noted were already passed to the US delegation in Brussels during
    the February discussions (copies provided via email to EUR/NB and
    OSD Hursch).

    ¶4.  (SBU) Pressing the point, Egilsson made it clear that the GOI is
    eager to continue discussions on IADS.  Its concern is that the 15
    August 2007 cutoff date for US funding is fast approaching and that
    in the MFA's view, many issues must be resolved bilaterally with the
    U.S. before GOI can adequately express its intentions to NATO.
    Egilsson allowed, however, that not every issue arising from the
    February discussions needs to be resolved in order to make the next
    move.  For example, he stated that the cryptographic upgrades are
    not an issue that would impede GOI discussions with NATO.  In
    addition, while the GOI expressed its desire for the second round of
    discussions to take place in Reykjavik (comment:  a sure sign of the
    pressure Egilsson is under to show visible progress on IADS ahead of
    May's parliamentary elections), it did not object to another
    location if required to facilitate the discussion.

    ¶5.  (SBU) Comment:  Egilsson is reflecting the pinch the GOI as a
    whole feels to tie up loose ends on IADS, the most prominent
    "legacy" issue remaining from the NASKEF closure last year.  This is
    particularly true given comments by the Prime Minister and Foreign
    Minister in NATO fora equating continued IADS operations with the
    importance of air policing for the Baltics.  Post is deeply
    appreciative of Washington and EUCOM efforts to bring technical and
    policy expertise to bear in resolving this issue (Ref C), which is a
    critical one for the GOI and a recurring theme in every conversation

    REYKJAVIK 00000099  002 OF 002

    Ambassador has on security affairs here.

    van Voorst

`