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### Viewing cable 06THEHAGUE1787, NETHERLANDS/JSF: OPEN-MINDED PARLIAMENTARY

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06THEHAGUE1787 | 2006-08-15 08:08 | 2011-01-17 00:12 | CONFIDENTIAL | Embassy The Hague

`

    VZCZCXYZ0001
    OO RUEHWEB

    DE RUEHTC #1787/01 2270821
    ZNY CCCCC ZZH
    O 150821Z AUG 06
    FM AMEMBASSY THE HAGUE
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 6548
    INFO RUEHZG/NATO EU COLLECTIVE PRIORITY
    RUEKJCS/CJCS WASHDC PRIORITY
    RUEKJCS/SECDEF WASHDC PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY

` `

    C O N F I D E N T I A L THE HAGUE 001787

    SIPDIS

    SIPDIS

    STATE FOR EUR/UBI; OSD FOR FRANK KENLON, MARY MILLER

    E.O. 12958: DECL: 08/14/2016
    TAGS: MARR PGOV PREL NL
    SUBJECT: NETHERLANDS/JSF: OPEN-MINDED PARLIAMENTARY
    DELEGATION EXPECTS...

    74884,8/15/2006 8:21,06THEHAGUE1787,"Embassy The
    Hague",CONFIDENTIAL,,"VZCZCXYZ0001
    OO RUEHWEB
    DE RUEHTC #1787/01 2270821
    ZNY CCCCC ZZH
    O 150821Z AUG 06
    FM AMEMBASSY THE HAGUE
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 6548
    INFO RUEHZG/NATO EU COLLECTIVE PRIORITY
    RUEKJCS/CJCS WASHDC PRIORITY
    RUEKJCS/SECDEF WASHDC PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY","C O N F I D E N T I A L THE HAGUE
    001787
    SIPDIS
    SIPDIS
    STATE FOR EUR/UBI; OSD FOR FRANK KENLON, MARY MILLER
    E.O. 12958: DECL: 08/14/2016
    TAGS: MARR PGOV PREL NL
    SUBJECT: NETHERLANDS/JSF: OPEN-MINDED PARLIAMENTARY
    DELEGATION EXPECTS ANSWERS DURING UPCOMING VISIT
    Classified By: Ambassador Roland Arnall, reasons 1.4 (b,d)

    ¶1. (C) Summary: A delegation of Dutch parliamentary Defense
    Committee members intends to keep an ""open mind"" during their
    upcoming ""fact-finding"" trip to Washington and Ft. Worth to
    discuss the Joint Strike Fighter (JSF) program.
    Parliamentary supporters and critics alike voiced concerns
    during an August 14 lunch with the Ambassador, including the
    U.S. political commitment to the program and affiliated
    budget discussions, technology transfer issues, prospects for
    Dutch business, defense acquisition priorities, the unit
    price of the aircraft, other technology advances such as
    unmanned aerial vehicles, and the creation of a ""maintenance
    valley"" in the Netherlands. End summary.

    ¶2. (U) Ambassador Arnall met August 14 for lunch with members
    of the Parliamentary Defense Committee delegation traveling
    to Washington and Ft. Worth on Aug. 27-30 to discuss the
    Joint Strike Fighter (JSF) program. In attendance for the
    Dutch were Parliamentary Defense Committee Chair Nebahat
    Albayrak (Labor Party), Luk Blom (Labor), Mat Herben (List
    Pim Fortuyn), and Gonnie de Boer (Defense Committee staffer).
    Roland Kortenhorst (Christian Democrats), and Willibrord van
    Beek and Zsolt Szabo (VVD) also will participate in the trip,
    but were not able to attend the lunch. U.S. attendees
    included ODC Chief COL David Kelly and polmiloff Jason Grubb.

    ¶3. (C) Amb. Arnall stressed that the purpose of the lunch was
    to sound out parliamentary concerns in order to ensure
    Washington and Lockheed Martin were prepared to answer their
    questions during their upcoming trip. Albayrak noted that
    the delegation was maintaining an ""open-mind,"" and hoped to
    use the trip as a fact-finding mission in order to arrive at
    ""well-informed "" positions on the program. She explained
    that JSF is a somewhat controversial issue, as it will be
    discussed in the campaign leading up to the parliamentary
    elections scheduled for November 22. She added that while
    delegation members Kortenhorst, Szabo, and van Beek could not
    attend the meeting, the two extremes of those supporting and
    opposing the mission were represented in the attendance of
    Herben and Blom. (Note: Szabo, van Beek, and Kortenhorst
    support the JSF program. End note.)

    Supporter's Concerns
    --------------------

    ¶4. (C) Herben stressed that he was a strong supporter of the
    JSF program, noting that he had voted in favor of it twice --
    ""no one doubts that JSF is the best bang for the buck,"" he
    said. He believed that the program was ""healthy,"" and would
    benefit the Dutch. He added that he was in favor of signing
    the follow-on MOU in the near future. However, Herben said
    he did have some concerns -- most of them related to the U.S
    political process. He described various JSF budget
    discussions in Congress and the deliberation over the second,
    back-up engine as vexing -- he hoped to receive a strong
    indication during meetings in Washington that the USG was
    strongly committed to the program. He also raised the issue
    of technology transfer -- like the United Kingdom, the
    Netherlands would like access to technology such as strategic
    software, Herben said.

    Critic's Questions
    ------------------

    ¶5. (C) Blom presented a critical assessment of the program.
    While he agrees JSF is the ""best plane for the best price,""
    he said his Labor Party would prefer to buy the plane off the
    shelf rather than participate further in the program. In his
    mind, he sees ""too many red stop lights"" in the program --
    these concerns could be turned to ""orange or even green,"" but
    for now, he advocates leaving the program. Several concerns
    that he hoped would be addressed during the trip included:
    -- Prospects for Dutch business: Blom argued that Dutch
    industry had not received enough contracts to warrant further
    participation in the program. He dismissed claims that
    non-participation in the program would signify the demise of
    the Dutch aerospace industry, and noted that most contracts
    were going to Dutch industrial giant Stork rather than Dutch
    small- and medium-sized businesses. Amb. Arnall and COL
    Kelly noted that Stork had subcontracted out to 40 Dutch
    industries, laboratories, and technical universities.
    Nevertheless, Blom said ""if you want to change my mind, then
    give us more contracts,"" and claimed that participation in
    the program thus far has not generated any new additional
    jobs for Dutch industry.
    -- Strategic Defense: Blom noted that the Labor Party
    supported Dutch military deployments to Iraq and Afghanistan,
    and will likely support future deployments overseas to places
    like Africa. He questioned, however whether the JSF was the
    weapons system needed for such missions, or whether it made
    more sense to continue to upgrade the Dutch F-16s for a
    number of years, and spend money now on transport and armored
    vehicles. He reiterated that he supports buying JSF
    aircraft, but said the GONL must prioritize, and other needs
    should come first at the expense of JSF.
    -- Technology transfer issues: Blom repeated arguments made
    by Herben that the Dutch should be granted access to critical
    program technologies like strategic software.
    -- Aircraft Unit Price: Blom said he has repeatedly asked USG
    and Lockheed Martin representatives for the unit price of the
    plane, and has been told ""not to worry"" as the price of the
    plane will be approximately 40-50 million euros. Blom
    questioned whether this was accurate, especially as earlier
    line versions of the aircraft are estimated to be three times
    more expensive, and pointed to similar conclusions in a
    General Accounting Office (GAO) report. He has asked
    frequently for the ""end of the road,"" ""not to exceed"" (NTE)
    cost of the plane -- ""just tell me the ceiling,"" Blom said.
    -- Other technological advances: Blom noted new advances in
    unmanned aerial vehicles (UAVs) might suggest that the Dutch
    delay or even forego purchasing JSF. Polmiloff said the
    delegation would receive a brief in Washington making clear
    that UAVs were complimentary to -- but could not replace --
    manned systems.

    Maintenance Valley; Grippen Fighter?
    ------------------------------------

    ¶6. (C) Albayrak suggested that the program was more
    complicated than just a Dutch-U.S. bilateral issue, and
    pointed to Dutch discussions with other European partners to
    potentially form a European footprint ""maintenance valley"" in
    the Netherlands. Blom and Albayrak acknowledged that a
    maintenance valley could be a factor in determining whether
    the Labor Party could support the JSF program. However, Blom
    questioned what the maintenance valley would entail. He
    argued that a facility focused on just engine maintenance and
    sustainment might mean an additional 300 new jobs for the
    Netherlands, and therefore not worth continued Dutch
    participation in the program. However, if the facility were
    to involve development and production of the second back-up
    engine, then this might mean an additional 1,500-2,000 jobs
    -- this would be hard to ignore. Albayrak also said that
    Dutch parliamentarians are interested in discussions with
    Norway regarding a new Grippen ""Nordic"" fighter, and asked if
    the technical air optimization report would be released by
    the end of 2006.

    Transatlantic Ties
    ------------------

    ¶7. (C) While Herben agreed that JSF program participation
    exceeded just the U.S.-Dutch relationship, he nevertheless
    pointed to the program's significance to the transatlantic
    relationship. Blom stressed that he was a strong proponent
    of transatlantic ties, and said his opposition to the JSF
    program should not cast any doubts in that regard.

    Interpreter Requested
    ---------------------

    ¶8. (U) Blom noted that his English was perhaps not as strong
    as other delegation members. Given the importance of the
    trip, he asked if it might be possible for an interpreter to
    be available during the delegation's meetings.
    BLAKEMAN

`