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### Viewing cable 06REYKJAVIK119, ICELAND: COAST GUARD DIRECTOR SHUT OUT OF

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06REYKJAVIK119 | 2006-04-03 18:00 | 2011-01-13 05:37 | CONFIDENTIAL | Embassy Reykjavik

`

    VZCZCXYZ0001
    PP RUEHWEB

    DE RUEHRK #0119/01 0931800
    ZNY CCCCC ZZH
    P 031800Z APR 06
    FM AMEMBASSY REYKJAVIK
    TO RUEHC/SECSTATE WASHDC PRIORITY 2679
    INFO RUEHNY/AMEMBASSY OSLO PRIORITY 0226
    RUEHNO/USMISSION USNATO PRIORITY 0201
    RUEKJCS/SECDEF WASHDC PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY
    RUEAHLC/HOMELAND SECURITY CENTER WASHDC PRIORITY

` `

    C O N F I D E N T I A L REYKJAVIK 000119

    SIPDIS

    SIPDIS

    OSLO FOR DATT

    E.O. 12958: DECL: 04/02/2016
    TAGS: PGOV PREL MARR PINR IC
    SUBJECT: ICELAND:  COAST GUARD DIRECTOR SHUT OUT OF
    POST-NASKEF PLANNING

    REF: REYKJAVIK 118

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

    ¶1. (C) Summary:  In informal conversation 3/31 Icelandic
    Ministry of Justice Deputy Permanent Secretary disclosed to
    Embassy that Coast Guard Director Georg Larusson has lost the
    confidence of Minister of Justice Bjarnason because he is not
    seen as a team player.  This explains why decisions about
    search and rescue (SAR) provisions to follow on from the
    planned departure of the 56th RQS from Naval Air Station
    Keflavik (NASKEF) are being handled in Bjarnason's private
    office, which has hired a consultant to vet helicopter sales
    offers, with the ICG largely cut out of the action.  Embassy
    advises U.S. officials for now to work directly with
    Icelandic Justice Ministry officials on Coast Guard issues as
    Larusson's tenure appears increasingly troubled.  End summary.

    ¶2. (C) On the margins of the March 31 bilateral defense talks
    (reftel), poloff discussed with Iceland Ministry of Justice
    and Ecclesiastical Affairs Deputy Permanent Secretary Stefan
    Eiriksson (strictly protect) the ministry's planning for
    near-term replacement of the SAR assets Iceland will lose
    when the 56th RQS departs Iceland shortly as part of NASKEF
    downsizing..  Eiriksson, a 36-year-old lawyer, is also his
    ministry's head of police and judicial affairs, in which role
    he has oversight of the Iceland Coast Guard (ICG).  Poloff
    inquired into how Eiriksson's boss, Justice Minister Bjorn
    Bjarnason, has given him only until Easter to come up with an
    interim plan.  Asked if he was working all hours or felt he
    had things under control, Eiriksson answered, "A bit of
    both."  He explained that the Ministry had contracted for the
    services of a 72-year-old former Icelandair Director of
    Operations and Chairman of the Association of European
    Airlines Committee on Technology and Operations, engineer
    Leifur Magnusson, to evaluate the sales offers that have been
    pouring into the Ministry from helicopter manufacturers
    (note: including Sikorsky; end note).  Magnusson contributed
    much-needed technical expertise to Ministry deliberations.

    ¶3. (C) Poloff asked why the decision-making on SAR assets was
    being handled in this way by Ministry principals rather than
    delegated to the presumed subject-matter experts at the ICG.
    Eiriksson confided that Bjarnason is fed up with leaks and
    public complaints from the ICG and is tempted to privatize
    some of its functions.  Icelandic law enforcement functions
    that have been partially privatized, such as the call center
    service on the country's 112 (equivalent to U.S. 911) line,
    have worked well, Eiriksson observed.  The contractors seem
    happy to have the work and get on with their job without any
    whining.  In contrast, ICG officials are frequently heard in
    the press complaining that they do not have enough resources
    properly to carry out their responsibilities -- thus creating
    a public relations headache for the Minister.

    ¶4. (C) Poloff then asked why, indeed, the ICG found itself in
    the position of making public pleas for greater funding.  ICG
    Director Larusson, in the job since January 2005 following a
    successful stint as Immigration Director (also under the
    Justice Ministry) was believed to be Bjarnason's personal
    pick for his job, as someone who understood 21st-century
    security challenges and shared Bjarnason's hard line on law
    enforcement.  Eiriksson offered that Larusson's management of
    the ICG has been somewhat of a disappointment.  Unlike the
    National Commissioner of Police (NCP), for example, Larusson
    has not been willing to make tough choices about where to use
    the resources he has been given.  Larusson will get more
    resources when he has demonstrated the capacity effectively
    to husband what he has -- and not before, Eiriksson declared.

    ¶5. (C) Comment:  While the motivation for Eiriksson's
    surprising candor is unclear, the accuracy of what he said
    appears to be supported by recent observations of Larusson
    and his top policy deputy, Commander Asgrimur Asgrimsson
    (note:  a U.S. Coast Guard Academy graduate; end note).  At a
    meeting with U.S. Coast Guard Commandant Thomas Collins March
    28 that Eiriksson also attended, Larusson seemed unusually
    taciturn and distracted.  Asgrimsson pointedly asked Collins
    whether the USCG saw any advantage in privatizing some rescue
    services and visibly welcomed the Commandant's answer that he
    did not.  He afterwards complained to poloff that the people
    making decisions for the ICG these days were not consulting
    with the professionals there, resulting in lowered morale at
    the organization.  Under the circumstances, potential U.S.
    interlocutors may be wise to route their proposals for ICG
    reforms through Eiriksson, whose political star seems to be

    on the rise -- or at least not imploding.  End comment.
    van Voorst

`