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### Viewing cable 06REYKJAVIK118, ICELAND: 3/30-3/31 TALKS SET STAGE FOR NEW

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06REYKJAVIK118 | 2006-03-31 18:06 | 2011-01-13 05:05 | CONFIDENTIAL | Embassy Reykjavik

`

    VZCZCXYZ0000
    OO RUEHWEB

    DE RUEHRK #0118/01 0901822
    ZNY CCCCC ZZH
    O 311822Z MAR 06
    FM AMEMBASSY REYKJAVIK
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 2676
    INFO RUEKJCS/SECDEF WASHDC IMMEDIATE
    RUEHNO/USMISSION USNATO IMMEDIATE 0198
    RHEHNSC/NSC WASHDC IMMEDIATE
    RUEKJCS/JOINT STAFF WASHDC IMMEDIATE
    RUEHZG/NATO EU COLLECTIVE PRIORITY
    RUEAHLC/HOMELAND SECURITY CENTER WASHDC PRIORITY

` `

    C O N F I D E N T I A L REYKJAVIK 000118

    SIPDIS

    SIPDIS

    OSLO FOR DATT AND ODC

    E.O. 12958: DECL: 03/30/2016
    TAGS: PREL MARR MASS IC
    SUBJECT: ICELAND: 3/30-3/31 TALKS SET STAGE FOR NEW
    DEFENSE RELATIONSHIP

    REF: REYKJAVIK 107

    Classified By: AMBASSADOR CAROL VAN VOORST, REASONS 1.4 (B) AND (D)

    ¶1. (C) Summary:  A U.S. interagency delegation met in
    Reykjavik 3/30-31 with senior Icelandic officials to describe
    the operational framework for the defense of Iceland
    following the upcoming realignment of Naval Air Station
    Keflavik (NASKEF).  The Icelandic delegation expressed keen
    interest in U.S. proposals for enhanced security cooperation
    and pressed for additional details in the interest of
    generating a defense plan that could shortly be explained to
    the Icelandic people.  The U.S. promised a EUCOM briefing in
    April on a new plan for the defense of Iceland, and assured
    the Icelanders that the departure of fighter jets would not
    create a gap in coverage.  Although the Icelanders reiterated
    their disappointment at the U.S. pullout, the tone  was
    essentially cordial and cooperative, with no indication that
    the Icelanders  would seriously consider abrogation of the
    1951 Defense Agreement. That said, the Icelandic trust that
    the U.S. team sought to shore up is fragile, and maintaining
    a collaborative atmosphere will depend on our ability to come
    through with a reassuring and detailed EUCOM plan.   As the
    Icelanders pointed out, we have yet to delve into the murky
    depths of base closure issues - another challenge State and
    DOD must come to grips with shortly. End summary.

    --------------
    U.S. proposals
    --------------
    ¶2. (C) The Ambassador led a team from the Departments of
    State and Defense that briefed senior Icelandic foreign
    affairs and public safety officials in meetings held in
    Reykjavik March 30-31, two weeks after the U.S. announcement
    that NASKEF would close at the end of the fiscal year.
    Assuring the Icelanders that the U.S. commitment to Icelandic
    defense under the 55-year-old bilateral Defense Agreement
    remained solid, the U.S. briefers discussed concrete ways in
    which the U.S. would counter 21st century threats minus a
    permanent on-island presence:

    --  Acting Deputy Assistant Secretary of Defense James
    Townsend provided the historical context for the shift in
    force posture as the U.S. in Iceland
    seeks to replace "a one-dimensional response to a threat that
    no longer exists."

     -- Defense Intelligence Agency Senior Intelligence Officer
    James Danoy enumerated mechanisms available for bilateral
    intelligence sharing and offered to help Reykjavik "plug in"
    to the NATO intelligence structure.

    -- Brigadier General Richard Mills, EUCOM Deputy Director for
    Plans and Operations, described European Command's
    contemporary mission and
    capabilities, laying out the ability of an expeditionary
    EUCOM to respond rapidly and decisively to threats to
    Iceland.

    -- Brigadier General Thomas Coon, Mobilizations Assistant to
    the Director, Operational Plans and Joint Matters, HQ USAF,
    discussed how the Air
    Force can support EUCOM and NATO in providing warfighting
    capabilities for Iceland appropriate to the changing
    strategic environment.

    -- Responding to Iceland,s request for information, Lt.
    Colonel Troy Edgell, Country Program Director, Defense
    Security Cooperation Agency, explained search and rescue
    (SAR) procurement options via direct commercial sale and
    Foreign Military Sale as well as estimated Icelandic
    requirements and costs.

    -- State Department Iceland Desk Officer John Maher reviewed
    the recent history and potential growth of U.S.-Iceland
    non-defense security
    cooperation.

    ¶3. (C) At the conclusion of the 3/31 session, EUR DAS Mark
    Pekala presented a 32-point distillation of concrete offers
    of strengthened cooperation made by the briefers, including:

    -- strategic intelligence partnership (including through
    Icelandic access to NATO intel networks;  bilateral expert

    talks; joint intelligence assessments; intelligence officer
    training; and a formal bilateral intelligence exchange
    agreement);

    -- exercises, ship visits, short-term deployments, and combat
    air patrols from bases outside Iceland;

    -- Icelandic orientation visits to U.S. and NATO defense
    headquarters and installations;

    -- Icelandic participation in the Foreign Military Sales
    program to enable cost-effective procurement of SAR assets;

    -- non-military security training, e.g. on contraband
    enforcement, Internet forensic investigations, transnational
    money laundering, natural disaster
    response, and emerging and pandemic disease response;

    -- enhanced Coast Guard exchanges and training, and
    partnering the U.S. Coast Guard's New England region with
    Iceland.  (Note:  This point amplified a presentation by U.S.
    Coast Guard Commandant ADM Thomas Collins, who had met with
    Iceland Coast Guard Director Georg Larusson and Ministry of
    Justice Deputy Permanent Secretary Stefan Eiriksson at
    Keflavik March 28.  End note.)

    ------------------
    Icelandic concerns
    ------------------
    ¶4. (C) The Icelandic side was noncommittal on specific U.S.
    suggestions and made none of its own.  It did affirm its
    willingness to review an umbrella defense plan for Iceland
    that European Command expects to have ready by the end of
    April.  Ambassador Albert Jonsson, Advisor to Iceland's
    Minister for Foreign Affairs and chair of the Icelandic
    delegation, urged the U.S. side to provide substantive and
    readily understandable proposals that the GOI could put
    forward to the Icelandic public as evidence that Washington
    continues to guarantee Iceland's security.  He also requested
    that the U.S. provide, in the course of upcoming follow-up
    meetings:

    -- a clear picture of the size and shape of the U.S. military
    footprint that will remain on the Agreed Area at the end of
    September (adding that some U.S. presence would be important
    both practically and politically);

    -- a timetable for bilateral discussions between now and the
    base closure;

    -- information on how the U.S. intends to maintain and
    monitor its military infrastructure on the Agreed Area after
    September 30;

    -- information on how the U.S. intends to carry out its
    responsibilities as host nation for the NATO infrastructure
    on the base;

    -- an answer as to whether the Navy special communications
    facility at Grindavik will remain.  (The U.S. side responded
    that the tentative plan is to
    convert to a contractor-run facility.)

    ¶5. (C) Icelandic MFA Defense Department Director Jon Egill
    Egilsson asked the U.S. to establish a mechanism for
    resolving base transition issues, including the timing of the
    handover of facilities on the Agreed Area.  The U.S.
    delegation promised responses to these Icelandic concerns at
    the next round of consultations.

    ¶6. (C) Comment:  Over the course of two days of discussion,
    Jonsson went from complaints of Iceland,s abandonment by the
    U.S. to a more constructive acknowledgement that the U.S.
    takes its responsibilities for Iceland,s defense seriously
    and is deliberately working through the issues of responding
    decisively and quickly to potential threats.  This counts as
    a significant step forward insofar as it clears the air for
    discussion of specific ways in which the U.S. and Iceland can
    work together as modern strategic partners.  That said, the
    Icelandic trust has been bruised, and maintaining a
    collaborative atmosphere will depend on our ability to come
    through with a reassuring and detailed EUCOM plan.  We will
    also have to keep the pressure on the Icelanders to become
    active partners in the areas of cooperation that the team

    outlined for them.  Moreover, as Jonsson,s questions
    underscore, we have yet to delve into the murky depths of
    base closure issues - another challenge State and DOD must
    come to grips with shortly.  End comment.

    van Voorst

`