Viewing cable 06MONTREAL572, AMBASSADOR MEETS WITH ICAO'S TCB DEPUTY DIRECTOR ON

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UNCLAS MONTREAL 000572 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
FROM USMISSION ICAO 
 
DEPT FOR IO/T, EB/TRA, NEA/RA, AND NEA/ARN 
FAA FOR BOGOSIAN AND FELDMAN 
 
E.O. 12958: N/A 
TAGS: EAIR ETRD ECON PREL ICAO CA SY UNDP
SUBJECT: AMBASSADOR MEETS WITH ICAO'S TCB DEPUTY DIRECTOR ON 
SYRIAN ARAB AIRLINES 
 
This cable is Sensitive but Unclassified. Please handle 
accordingly. 
 
¶1. (SBU) Summary and Action Request (para 9): The Deputy 
Director of ICAO's Technical Cooperation Bureau (TCB) Bachar 
Hakim, visited the Ambassador on May 17, 2006 to inform him 
of TCB's recommendations to Syrian Arab Airlines on the 
replacement of ten aging Boeing aircraft, which are 
currently grounded. This cable reports on the status of 
this project and seeks instructions from the Department. 
 
¶2. (SBU) On May 17, 2006, Bachar Hakim, Deputy Director of 
ICAO's TCB visited Ambassador Bliss in the U.S. Mission. 
Mr. Hakim is a Canadian citizen of Syrian descent who will 
be retiring from ICAO probably in July 2006. Mr. Hakim is 
experienced, articulate and forthcoming. 
 
¶3. (SBU) Mr. Hakim reported on the status of a TCB project 
in Syria, involving Syrian Arab Airlines, which is owned by 
the government but operates on a commercial basis. The TCB 
project is entirely funded by the Syrian Government which 
involves technical advice from TCB and UNDP. TCB and UNDP 
are paid a fee for their technical advice as a percentage of 
the contract. TCB receives three percent of the contract 
price. 
 
¶4. (SBU) Syrian Arab Airlines (Syrian Air) has operated a 
fleet of approximately 22 aircraft, of which ten aging 
Boeing 727's and 747's have now been grounded for safety 
reasons. Syrian Air would like to replace the grounded 
aircraft with either Airbus or Boeing aircraft. It likely 
will be Airbus aircraft since most of the remaining active 
fleet consists of A-320's and A-340's. Because of U.S. laws 
and regulations on exports to Syria, to which ICAO adheres, 
Syrian Air has been advised that the purchase or lease of 
Airbus or Boeing aircraft would require suppliers to obtain 
an export license from the United States. A license would 
be required for a "dry lease" (where the aircraft is 
operated by Syrian air) or a "wet lease" (where the aircraft 
is operated and maintained by a third party). However, 
Syrian Air has been further advised that if a "wet lease" is 
provided in accordance with nine conditions that meet the 
requirements of the "Export Administration Regulations, Part 
740.15, License Exception", then an export license would not 
be required. Such operating conditions include, among 
others, complete operational control of the aircraft by the 
supplier, no change in routes without supplier consent, and 
no maintenance within Syria. 
 
¶5. (SBU) Accordingly, TCB has recommended that Syrian Air 
"wet lease" up to six aircraft from a third party for a 
period of nine months to one year. At the same time, its 
supplier would initiate the U.S. export license process for 
a "dry lease" of replacement aircraft. At the end of the 
"wet lease" contract, Syrian Air would either continue the 
"wet lease" or, if the export license is approved, "dry 
lease" the aircraft from the supplier, presumably Airbus. 
Syrian Air also is exploring the purchase of Russian 
aircraft, which is being aggressively promoted by the 
Russian Government. 
 
¶6. (SBU) Mr. Hakim points out that in the 2002-2004 time 
period, TCB worked with Syria in providing for international 
expert training and the procurement of firefighting 
equipment from two U.S. companies, Oshkosh and Emergency 
One, for which export licenses were obtained. In addition, 
Boeing has routinely obtained on an ongoing basis export 
licenses to provide spare parts for Syrian Air's Boeing 
aircraft. 
¶7. (SBU) Mr. Hakim also noted that in a recent meeting, the 
Syrian Minister of Transport recommended that Mr. Hakim meet 
with Syrian President Assad. If and when such a meeting is 
arranged, Mr. Hakim offered to serve as a conduit for any 
message the USG wished to convey either on this issue or any 
other. Ambassador Bliss passes this information along 
without comment. 
 
¶8. (SBU) On another but related issue, Mr. Hakim noted that 
on request from the Government of Cuba, TCB is assisting the 
Instituto de Aeronautica de Cuba (IACC) in the procurement 
of 4 MA-60 turbo prop aircraft manufactured by China. 
ICAO's role is limited to reviewing technical specifications 
on the aircrafts' civilian use, assisting the supplier in 
the preparation of export license applications (the aircraft 
has more than 10 percent U.S. components) and following up 
 
with a letter from ICAO Council President Kotaite seeking a 
favorable answer on the applications. The applications have 
been submitted to the Department of Commerce. 
 
¶9. Action requested: Please advise whether further 
information is required and whether Ambassador Bliss should 
respond to Mr. Hakim on the issues raised in the meeting, 
and if so, what his response should be. 
 
Bliss/Marshall