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### Viewing cable 08STATE63686, U.S.-ICELAND SECURITY DIALOGUE MEETING, APRIL 30

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08STATE63686 | 2008-06-12 20:43 | 2011-01-13 05:37 | CONFIDENTIAL | Secretary of State

`

    VZCZCXYZ0002
    RR RUEHWEB

    DE RUEHC #3686 1642053
    ZNY CCCCC ZZH
    R 122043Z JUN 08
    FM SECSTATE WASHDC
    TO RUEHRK/AMEMBASSY REYKJAVIK 0000
    INFO RHMCSUU/FBI WASHINGTON DC 0000
    RUEHNO/USMISSION USNATO 0000
    RUEKJCS/SECDEF WASHINGTON DC
    RHMFISS/CDR USEUCOM VAIHINGEN GE

` `

    C O N F I D E N T I A L STATE 063686

    SIPDIS

    E.O. 12958: DECL: 06/12/2018
    TAGS: IC NATO PGOV PREL
    SUBJECT: U.S.-ICELAND SECURITY DIALOGUE MEETING, APRIL 30

    Classified By: Kurt Volker, Acting, EUR, Department of State.
    Reason 1.4 (b) and (d)

    ¶1. (C) Summary.  U.S. and Icelandic officials April 30
    reviewed Iceland,s defense developments and bilateral
    security cooperation at working-level Security Dialogue
    meetings in Washington, D.C.  Iceland previewed creation of
    the Icelandic Defense Agency this year, its plan to host a
    high-level NATO seminar on the High North in January 2009,
    and NATO air policing, just begun with a French deployment at
    Keflavik.  Representatives from the Department of Defense,
    Department of State, FBI, and U.S. Coast Guard (USCG)
    discussed ongoing and potential areas for cooperation with
    Icelandic representatives from the Ministry of Foreign
    Affairs, Ministry of Justice and from the Prime Minister,s
    Office.  Iceland offered to host follow-on discussions in
    Reykjavik next year. End Summary.

    Iceland,s New Defense Agency
    ----------------------------

    ¶2. (C) Delegation Head, Ambassador and Director of the
    Icelandic MFA Defense Department Ambassador Thorir Ibsen said
    that the June launch of the Icelandic Defense Agency was
    intended to consolidate all defense-related matters formerly
    found in offices throughout the MFA into a single agency.
    The Defense Agency will be subordinate to the MFA's Defense
    Department and will execute Iceland,s defense activities
    while the Defense Department continues in its policy role.
    The Agency will serve as a framework for approaching issues
    related to security changes in the High North and will be
    responsible for operation of the Icelandic Air Defense System
    (IADS) radars and Iceland,s participation in NATO.

    ¶3. (C) Foreign Policy Advisor to the Prime Minister Sturla
    Sigurjonsson said the government will spend the next 3-4
    years on coordination of the Defense Agency and after that on
    its evolution.  Prior to the establishment of the Agency,
    there was no legal basis for the Icelandic government to
    perform any defense-related operations.  Director of Police
    and Judicial Affairs at the Ministry of Justice Thorunn
    Hafstein said that creation of the Defense Agency was an
    important legal step that would offer the MOJ greater
    opportunities than ever before for coordination on Police,
    Coast Guard and search and rescue.

    Air Policing Cooperation
    ------------------------

    ¶4. (C) Ibsen welcomed the upcoming U.S. deployment for
    Northern Viking air policing exercises set for September.
    Norway recently sent a team to provide air traffic control
    training in advance of the exercises.  OSD Policy Office
    Director Todd Harvey said the United States is looking
    forward to the Northern Viking deployment and said DOD wants
    to foster closer cooperation and to enhance interoperability
    with a focus on IADS radar, air policing, and exercises.  DOD
    noted that the final planning conference for Northern Viking
    will take place in Keflavik June 25-26.

    Radar Upgrades and Spare Parts Pricing
    --------------------------------------

    ¶5. (C) Ibsen reported that FM Gisladottir had discussed IADS
    upgrades with DOD U/S Edelman when she met with him during
    her April 11 visit to Washington.  OSD Todd Harvey said that
    U/S Edelman had recommended that Iceland seek NATO funding
    for upgrades through its security and investment program.
    Ibsen said that Iceland would support such an effort but was
    not willing to lead it, instead asking that the U.S. lead.
    Regarding pricing for spare parts Iceland wants to purchase
    to maintain existing IADS radar, Harvey noted that the
    overriding goal is to preserve the radars as fully
    functioning and able to serve their purpose.  He said OSD was
    nearing the end of a pricing review for spare parts and hoped
    soon to have a final price.  Ibsen emphasized the importance
    of coming to a conclusion as quickly as possible.

    Coast Guard Cooperation
    -------------------------

    ¶6. (C) MOJ,s Hafstein pointed to the rapid increase in
    vessels transiting the region combined with dangerous sea
    conditions as a strong motivation for Iceland to pursue
    cooperation with the USCG.  The traffic increase heightens
    the need for search and rescue (SAR) capabilities, maritime
    domain awareness, and &command of sea lanes.8  Hafstein
    said Iceland,s Coast Guard (ICG) enjoys a 24/7 link with
    USCG Boston and that cooperation is outstanding.

    ¶7. (C) Hafstein reported Iceland will chair the North
    Atlantic Coast Guard Forum (NACGF) beginning in September,
    calling it the most important maritime forum in which her
    agency participates.  She said Iceland also supports creating
    Regional Maritime Security Operations Centers in the North
    Atlantic, separate from the NACGF.  Iceland is willing to
    host such a center and would welcome USCG participation.

    ¶8. (C)  USCG presented a draft MOU for Cooperation (a
    counterproposal in response to a draft presented by the ICG
    to the USCG last year).  Hafstein welcomed the draft and
    reiterated Iceland,s desire to join the trilateral (Canada,
    UK, US) SAR MOU -- a request currently under review.

    Energy
    ------

    ¶9. (C) Foreign Policy Advisor to the Prime Minister Sturla
    Sigurjonsson expressed concerns over developments in the High
    North affecting transport of energy resources and indicated
    uncertainty as to the degree to which NATO should focus on
    energy.  EEB Stephen Gallogly said there is ongoing
    discussion in the USG, but the focus for energy discussions
    is still within IAEA rather than NATO.  Iceland,s Ambassador
    to Washington Albert Jonsson commented on the considerable
    geothermal resources in the United States and noted Icelandic
    investment and cooperation in developing such projects in
    California.

    Russia
    ------

    ¶10. (C) Sigurjonsson referred to Iceland,s longstanding good
    relations with Russia, calling it a neighbor.  He reminded
    that &Iceland is a very small country that must take care in
    its approach to Russia.8  He nevertheless expressed some
    concern about the recent, more aggressive posture Russia has
    taken, in particular citing Russian long range aviation
    activity that has encroached on Iceland,s civil aviation
    space.

    ¶11.  (C) Sigurjonsson said it was no coincidence that one of
    the initial Russian flights took place the day after NAS
    Keflavik closed and stated that the current situation is very
    different than that during the Cold War.  Now flights are
    much closer to Iceland, and there is far denser civil
    aviation activity in the area than in the past.  Sigurjonsson
    said Russian flights have come as close as 35 miles to
    Reykjavik and showed a graphic demonstrating a recent flight
    that had circumnavigated the country.  While concerned that
    Russian motivations could include claiming a stake to the
    North Atlantic, he said that Iceland,s main worry is for the
    safety of civil aviation.  Iceland does not see increased
    Russian LRA activity as a military threat.

    Committed to Afghanistan
    ------------------------

    ¶12. (C) Ibsen said Iceland needs to better focus its
    contribution in Afghanistan, which currently comprises 14
    non-combat troops supporting a PRT, ISAF HQ and Kabul airport
    operations, and added that that &funding is not yet clear.8
     Ibsen said Iceland was glad to be joining Norway at the PRT
    in Meymaneh and indicated that it was also interested in
    assisting with police training.  The government plans to
    unveil a three-year strategy for Afghanistan in June, which
    will spell out a longer term, more focused commitment.
    Iceland was pleased with the choice of Kai Eide as UN envoy
    in Afghanistan.  Sigurjonsson noted that Iceland had
    previously pledged $1 million to the UK for heavy airlift
    which had not yet been used.  Consequently, Iceland plans to
    transfer $500,000 to a UK-sponsored NATO helicopter fund.

    NATO Seminar on High North
    --------------------------

    ¶13. (C) Sigurjonsson said Iceland is planning a NATO seminar
    for January 2009 and it wants to &make the High North a NATO
    issue.8  He reported that the NATO Secretary General will
    attend and Iceland is expecting high level participation from
    countries including Denmark, Norway and Canada.  Iceland
    hopes also for good representation by the United States,
    though Sigurjonsson acknowledged that timing would be
    problematic.  Planning for the meeting is being coordinated
    through staff at NATO HQ.  Sigurjonsson asked for a POC at
    State with whom Iceland can work on developing the program.
    Sigurjonsson said Iceland plans to limit attendance to the
    NATO 26 because the &discussion would be different8 if
    broadened to include NATO partners (which would necessarily
    include Russia).

    Police Cooperation
    -------------------

    ¶14. (C) MOJ Hafstein said a National Police Security Unit was
    created in January of 2007 and has since produced threat
    assessments on domestic terrorism -- which not surprisingly
    have been unalarming.

    ¶15.  Hafstein asked for an assessment of the organized crime
    threat posed by increased Chinese and Russian immigration.
    FBI Eurasian Organized Crime Unit Chief Barry Braun cautioned
    that Russian money laundering could become a serious problem
    and that securing cooperation from the Russian government on
    information sharing could be challenging.  Hafstein welcomed
    the possibility of sending staff to receive training from the
    FBI.

    ¶16. Participants in the Strategic Dialogue included:

    Iceland
    Amb. Thorir Ibsen, Director Defense Department, Ministry of
    Foreign Affairs- Head of Delegation
    Amb. Sturla Sigurjonsson, Foreign Policy Adviser to the Prime
    Minister
    Ms. Thorunn J. Hafstein, Director of Police and Judicial
    Affairs, Ministry of Justice
    Amb. Albert Jonsson, Embassy of Iceland
    Mr. Fridrik Jonsson, Counselor, Defense Department, Ministry
    of Foreign Affairs
    Mr. Finnur Thor Birgisson, First Secretary, Embassy

    United States

    DOD
    Todd Harvey OSD/Policy Office Director
    Andrew Winternitz OSD/Policy Desk Officer

    DOS
    Judy Garber       Deputy Assistant Secretary
    Bob Gilchrist           Director, Office of Nordic and
    Baltic Affairs
    Marc Norman       S/CT
    Mary Nash         EUR/PRA
    Howard Solomon          EUR/RUS
    Stephen Gallogly        EEB/ESC/IEC
    Peter Shea        EUR/RPM
    Paul Harrison           EUR/RPM
    Cdr. Mark Skolnicki           OES/OA (USCG Liaison)
    Capt. Mark Cawthorn           INL/LP (USCG Liaison)

    Embassy Reykjavik
    Cdr. Patrick Geraghty         A/DATT

    FBI
    Barry Braun             Chief, Eurasian Organized     Crime
    Unit
    USCG
    Sally Netter            Office of International Affairs
    Lt. Tamara Wallen       Legal Advisor, Office of Maritime
    and International Law
    RICE

`