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Viewing cable 06DAMASCUS1510, UNDP AGREES TO HELP SARG LEASE AIRPLANES

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Reference ID Created Released Classification Origin
06DAMASCUS1510 2006-04-04 14:17 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Damascus
VZCZCXRO1770
OO RUEHAG RUEHBC RUEHDE RUEHDF RUEHIK RUEHKUK RUEHLZ RUEHMOS
DE RUEHDM #1510 0941417
ZNR UUUUU ZZH
O 041417Z APR 06
FM AMEMBASSY DAMASCUS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8112
INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY
RUEHTV/AMEMBASSY TEL AVIV PRIORITY 0878
RHEHNSC/NSC WASHDC PRIORITY
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHEHAAA/WHITE HOUSE WASHDC PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0070
RUCNMEM/EU MEMBER STATES COLLECTIVE
UNCLAS DAMASCUS 001510 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA/ELA 
NSC FOR ABRAMS/DORAN/SINGH 
TREASURY FOR GLASER/LEBENSON 
EB/ESC/TFS FOR SALOOM 
 
E.O. 12958: N/A 
TAGS: EAIR ECON ETTC SY SANC
SUBJECT: UNDP AGREES TO HELP SARG LEASE AIRPLANES 
 
REF: 04 DAMASCUS 5979 
 
1. (U) On April 4, local press reported that a UNDP expert 
was consulting with Syrian officials from the Ministry of 
Transportation, the Civil Aviation Establishment, and Syrian 
Arab Airlines regarding SyrianAir's desire to lease 
commercial airplanes.  The UNDP expert's visit is part of a 
project that began on January 17, when representatives of the 
UNDP signed a preliminary agreement with the SARG to fund a 
report to help  SyrianAir negotiate a lease of airplanes. 
The cost of the entire project is projected to be USD 258,000 
of which UNDP committed to fund USD 120,000.  Specifically, 
the report is intended to help SyrianAir identify the types 
and number of aircraft it should lease and the probable 
costs.  The International Civil Aviation Organization (ICAO) 
is reportedly also involved in the project though its level 
of funding or technical support is currently unclear. 
 
2.  (U) SyrianAir has been trying unsuccessfully to update 
its aging, mixed fleet of Boeing and Airbus aircraft for 
years.  On October 17, 2004, the state-owned SyrianAir issued 
a tender for seven new aircraft (reftel).  Airbus was the 
only company to submit a bid on the tender.  According to 
Syrian law, a tender cannot be awarded on the first round 
unless more than one bid is submitted, though it can be 
awarded to a sole bidder on the second round.  Airbus 
declined to resubmit its bid when the tender was reissued 
citing its potential inability to meet the requirement under 
the Syria Accountability Act that any aircraft it sold to the 
Syrians have less than ten percent US content.  In the fall 
of 2005, the SARG decided to pursue leasing as a short term 
solution to its purchasing problems. 
 
3.  (SBU) Comment.  The UNDP's support of SyrianAir's efforts 
to lease aircraft appears limited to compiling the above 
report and not to involve actual financing of the lease.  The 
local office of the UNDP has, however, slow-rolled our 
previous requests to meet to discuss this, as well as other, 
projects.  The UNDP's reticence to meet is a relatively 
recent phenomenon and may reflect its uneasiness after it was 
subjected to a series of protests last fall following the 
publication of the first Mehlis report and UNSCR 1636, and 
concern that our goal in discussing its support for 
SyrianAir, in this instance, will be to pressure it to 
desist. 
SECHE