VZCZCXYZ0016
OO RUEHWEB

DE RUEHTC #0997/01 1240946
ZNY CCCCC ZZH
O 040946Z MAY 06
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5616
INFO RUEHZG/NATO EU COLLECTIVE PRIORITY
RUEKJCS/CJCS WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY

C O N F I D E N T I A L THE HAGUE 000997 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EUR/UBI 
 
E.O. 12958: DECL: 05/03/2016 
TAGS: MARR PREL PGOV NL
SUBJECT: NETHERLANDS/JSF: OPPOSITION GETTING VOCAL, WHILE 
GOVERNMENT STILL ON TRACK 
 
 
Classified By: A...



62779,5/4/2006 9:46,06THEHAGUE997,"Embassy The
Hague",CONFIDENTIAL,,"VZCZCXYZ0016
OO RUEHWEB
DE RUEHTC #0997/01 1240946
ZNY CCCCC ZZH
O 040946Z MAY 06
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5616
INFO RUEHZG/NATO EU COLLECTIVE PRIORITY
RUEKJCS/CJCS WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY","C O N F I D E N T I A L THE HAGUE
000997
SIPDIS
SIPDIS
STATE FOR EUR/UBI
E.O. 12958: DECL: 05/03/2016
TAGS: MARR PREL PGOV NL
SUBJECT: NETHERLANDS/JSF: OPPOSITION GETTING VOCAL, WHILE
GOVERNMENT STILL ON TRACK
Classified By: Ambassador Roland Arnall, reasons 1.4 (b,d)

¶1. (C) Summary: Dutch opponents of the Joint Strike Fighter
(JSF) fired the opening salvo in their efforts to perusade
Cabinet not to sign the JSF follow-on MOU by the end of the
year. A member of the main opposition Labor Party (PvdA)
claimed Labor would cancel a signed MOU should Labor come to
power following the 2007 national elections. Meanwhile, the
Dutch MOD remains confident the MOU will be signed --
assuming the Dutch are allowed to participate in the
operational test and evaluation phase. End summary.

Opposition Tips Its Hand?
-------------------------

¶2. (C) The Dutch press reported May 3 extensively on comments
made by Labor (PvdA) Defense Acquisitions spokesperson Luuk
Blom, who called on the Dutch Cabinet not to sign the JSF
follow-on MOU at the end of the year. Blom said during an
interview in the Dutch weekly ""Intermediair"" that the Labor
Party did not want to inherit JSF when it comes to power
following the 2007 national elections. He said a
Labor-dominated government would cancel a signed MOU -- ""not
a single JSF will be bought under Labor."" Blom argued that
the JSF business plan is ""based on quicksand,"" and that there
was no guarantee that the Dutch would see a return on their
investment. He also said all contracts awarded to the Dutch
to date have been granted to Stork, representing ""covert
government support"" for a single company.
¶3. (C) The Dutch newspaper ""Telegraaf"" (center-right) carried
an editorial May 3 arguing that the Labor Party should ""come
to its senses"" because JSF is the best and cheapest option.
According to Telegraaf, canceling JSF will cost the Dutch
hundreds of jobs and its international credibility. Instead,
the Dutch Cabinet should make a decision of JSF in the fall.

Government on Track
------------------

¶4. (C) The Ambassador met with MOD State Secretary Cees van
der Knaap and MOD Director for Defense procurement Dirk van
Dord May 2. Also in attendance were MOD Advisor to the State
Secretary Marleijn van Diepen, and Office of Defense
SIPDIS
Cooperation Chief COL David Kelly, LTC Ralph King, and
polmiloff Jason Grubb.

¶5. (C) Van der Knaap and van Dord said the GONL remains
positive on JSF; the defense procurement aspect of JSF has
been staffed at the MOD working level. Van Dord said the
Dutch Cabinet will soon become more involved in preparation
for the planned JSF follow-on MOU signing at the end of the
year. He noted that Norway's recent reservations may
slightly complicate matters, as the GONL will then be forced
to explain to Cabinet why a JSF partner chose to abandon the
program. The ambassador noted that Norway's possible
departure may result in more contracts for Dutch industry,
while COL Kelly said any departure might result in more
expensive planes and questions of confidence.

¶6. (C) Van der Knaap raised the Dutch request to be included
in the operational test and evaluation phase of JSF, and
noted Dutch plans to buy three planes in advance for just
such a reason. If the Dutch cannot participate in the
testing phase, then there is no reason to buy the advance
planes -- or even make a purchase order for the rest, van der
Knaap said. The ambassador noted the Dutch position was
clear. COL Kelly said Washington principals were well aware
of the Dutch request, as indicated by a letter from Dutch
CHOD Gen. Berlijn to Gen. Myers. He added that Washington
was currently examining details that might allow the Dutch to
participate in the testing phase.


¶7. (C) Van der Knaap and van Dord also raised possible plans
for a ""European footprint"" through a JSF sustainment and
support center. They said the Dutch and Italians had agreed
Italy would provide the final assembly line for the aircraft
built in Europe, while the Netherlands would be responsible
for engine maintenance. Van Dord said Denmark, Turkey and
Norway have agreed to this approach, and were currently
discussing further details. COL Kelly noted the JSF
Executive Committee in Oslo in mid-May would present an ideal
opportunity for the Dutch and Italians to present their
proposal; van Dord replied they were considering such a
presentation.

¶8. (C) From the political side of things, van der Knaap said
the Dutch government already possessed a majority in
Parliament to support the signing of the follow-on MOU,
despite the apparent opposition of the Labor Party as made
known by Blom's comments. Van der Knaap said Labor was
""crazy -- and crazy about JSF"" and now seemed committed to
making it an election issue. He said Labor's objections are
purely political -- JSF was the best plane for the best
price, and would bolster Dutch employment. As such, he had a
difficult time believing Blom's remarks represent Labor's
true position. The ambassador said labor unions play a key
role; van der Knaap agreed, and noted Lockheed Martin VP Tom
Burbage's meeting with Dutch labor unions on May 12. The
ambassador said he would attend the meeting.

¶9. (C) The ambassador asked for van der Knaap's bottom line:
was he worried, especially as Labor appeared poised to
control the government coalition following the elections in
2007? Van der Knaap said Labor leaders had indicated during
negotiations of the latest Balkenende government that JSF
would not be an issue; he still believes that is the case,
and that recent Labor opposition is nothing more than
political posturing. He added that recent news of yet
another contract award by Dutch industry -- to be announced
during Burbage's meeting with union leaders -- would be very
helpful in undermining critics who claim the Dutch will not
see a return on their investment.

Comment
-------

¶10. (C) Blom's remarks likely represent a trial-balloon from
Labor to determine if JSF will play well in the elections --
it is hard to believe Blom's bluster that Labor would
""cancel"" an MOU signed by the previous government, especially
if Labor looks to form a coalition with several parties from
the current coalition. Nevertheless, we take Labor's
opposition seriously -- if this is the hand they are playing,
we will work on the labor unions to mitigate Labor's message.
Meanwhile, the Dutch MOD continues to proceed as though JSF
will happen -- as long as the Dutch are included in the
testing phase.
ARNALL