/pub/history/military/a-weu/documents File: 1359iepg.rep 1359IEPG.REP Activities of the IEPG Document 1359 4th February 1993 Activities of the IEPG Letter from Mr. van Eekelen, Secretary-General of WEU, to Mr. Soell, President of the Assembly ______ 4th February 1993 Dear President, I am pleased to forward to you an information letter from the IEPG concerning its activities since September 1992. Yours sincerely, Willem van EEKELEN Mr. Hartmut SOELL President of the Assembly of WEU * * * Information letter to the WEU Assembly concerning the Independent European Programme Group (IEPG) 18th December 1992 ______ Introduction 1. Since the last information letter to the WEU Assembly in September 1992, the defence ministers of the thirteen IEPG nationsmet in Bonn on 4th December 1992. On this occasion, ministersmainly discussed the IEPG's future in the evolving Europeansecurity order. The Bonn communique is attached at Annex A. The IEPG structure is attached at Annex B. 2. At the Bonn meeting, ministers first touched upon the IEPG's regular activities and the transatlantic dialogue. In continuation of the work that was started in March in Oslo, they then concentrated in particular on the national armaments directors' (NADs') work since Oslo regarding the possible transfer of the IEPG functions into WEU. IEPG's future role, notably the incorporation of the IEPG into WEU NADs' findings / conclusions 3. On this highly important issue, an IEPG NADs' report, finalised though before the WEU Council meeting of 20th November 1992, was presented to ministers. 4. In it, NADs have reflected on the future of the IEPG in the light of an initial analysis of the question. They took note in particular of the following considerations: (a) There remains a need for a forum in which European members of NATO may consider all aspects of armaments co-operation. (b) WEU is identified as the focus for a European defence identity. Following decisions at Maastricht and Petersberg, WEU is developing a wider role. (c) WEU is a body based on an international treaty and has its own legal personality. This could provide a more solid and visible framework for European armaments co-operation thus opening new possibilities for its development, including the eventual establishment of a European armaments agency, if nations so choose. On the other hand, the possibility exists for European armaments co-operation to continue under WEU in virtually the same form and with the same policies as under the IEPG. Transfer of the IEPG's functions to WEU would not therefore pre-empt decisions by nations on the future nature of European armaments co-operation. (d) A transfer of the IEPG's functions to WEU would reduce the number of European bodies dealing with defence matters. It would therefore help rationalise efforts to improve co-ordination between European nations on these issues. 5. The report also stated that, although there are a number of uncertainties about the direction and pace of greater cohesion in Europe in the security and defence areas, NADs believe that the trend of events broadly justifies the consideration of new arrangements in the armaments co-operation area, subject always to the continued participation of all IEPG members with equal rights and responsibilities. WEU as a destination for the functions of the IEPG offers a number of advantages as an umbrella organisation for a comprehensive armaments co-operation forum which NADs consider should continue as a specific activity within WEU. Some nations in particular also believe that while the IEPG has a number of achievements to its name, the business of armaments co-operation would benefit from the possibility of more formal arrangements under WEU. 6. Eventually the report concluded that, subject to a satisfactory resolution of WEU - IEPG membership and to agreement on the issue of principle, there were no obstacles to incorporate the IEPG functions into WEU without delay. Further work might be required on a number of organisational issues but this needed not delay the incorporation of the IEPG into WEU. Ministerial decision Bonn 7. On 20th November 1992, the WEU Council successfully concluded WEU's enlargement process and welcomed a possible transfer of the IEPG's functions to WEU. Taking into account these positive results and on the basis of the above NADs' report, ministers in Bonn formally agreed to incorporate the IEPG into WEU with immediate effect. They acknowledged that, in WEU, the thirteen nations will be entitled to participate fully and with the same rights and responsibilities in matters related to European armaments co-operation and that the linkage with NATO will be maintained. They underlined the need to maintain the momentum of the activities currently being taken forward by the IEPG. Follow-on Bonn decision 8. The practical realisation of this merger might require a certain number of organisational/procedural issues to be looked into in depth. Ministers therefore tasked NADs to take the suitable measures to resolve practical details possibly remaining harmoniously and with due consideration of the interests of the bodies involved. The IEPG NADs' report on the subject, as presented to and agreed by ministers in Bonn, will form the basis for the finalisation of the required practical arrangements and has been transmitted to the appropriate WEU's instances. In addition, the European armaments agency question should now as well be further developed. Its initial analysis, as attached to the above report but considered not yet sufficiently elaborated for discussion in Bonn, could serve as a basis. The work on the above issues will be taken forward under a new chairmanship as Denmark is taking over the Chair in European armaments co-operation matters from Belgium as from 1st January 1993. Regular activities Panel I: harmonisation of requirements and equipment co-operation 9. IEPG continues to place great emphasis on equipment requirements and programmes and Panel I continues to refine its new practical methods for identifying more quickly viable programmes for co-operation. As a result, seven new subgroups have been charged with tasks that encompass command air defence frigate low frequency active variable depth sonar, low frequency deeping sonar for helicopters, air defence command and control, short range anti radiation missile, advanced short range air to air missile and HF radio. On the other hand, it must be mentioned that five subgroups (vehicle robotics, maritime patrol aircraft, 155 mm artillery system, submarine advanced propulsion and meteorological equipment) have been disbanded mainly because of budgetary constraints. The list of current projects overseen by Panel I is at Annex C. 10. Of particular interest is the progress made on the future large aircraft (FLA) and the microwave landing system (MLS) programmes. Eight nations are now involved in the FLA programme which is of particular importance in the light of the Gulf war. The work on a memorandum of understanding (MOU) for the feasibility study is progressing well and, according to the latest time schedule, production might start early next decade. Regarding the MLS programme, a general procurement strategy has been agreed with the aim of signing a MOU on common procurement in due course. Panel II: research and technology, notably EUCLID 11. EUCLID has now reached its cruising speed and most common European priority areas (CEPAs) are making good progress. The list of current CEPAs/RTPs approved for entering the definition phase is at Annex D. So far, 39 research and technology projects (RTPs), involving 280 million Ecus, have been approved and 23 implementing arrangements for RTPs, involving 150 million Ecus, have been signed by the participating nations. Moreover, the corresponding requests for proposals have been issued and the first contracts with industry have now been signed. In order to keep up the present pace in EUCLID, Panel II is actively seeking new research priority areas and new technology projects within the existing CEPAs. 12. Besides, and in parallel with EUCLID, a certain number of activities regarding common technology projects in technical areas continue to progress satisfactorily. Panel III: defence economics, notably European defence equipment market (EDEM) 13. The guiding principles for the operation of the open EDEM are laid down in the IEPG action plan 1988 and in the policy document approved by ministers in November 1990. The permanent Secretariat is responsible for collecting data to monitor their correct application. It is obvious that no organisation should be closed to the implication of new circumstances and conditions. In this light and given the changes in the international security and defence environment, the EDEM principles are subject to a continuing review. An interim report on the issue has been presented in Bonn. It acknowledges that significant changes in the security and defence environment with potential consequences for the policy areas of juste retour and developing defence industries (DDIs) support have occurred, especially since 1990. It states however that representative information on cross border trade of at least three years (1990-1991-1992) EDEM experience is needed to make a fuller assessment. A final report, taking into account those market data will be presented to NADs as soon as possible. Meanwhile, marked differences of views on those policy areas have already emerged. 14. Panel III is also devoting attention and support to the reactivation of the working group on DDIs matters currently chaired by Portugal. This should facilitate the involvement of the DDIs in collaborative programmes and encourage the DDIs to play a full rewarding part in the European defence equipment scene. 15. On the opening up of the EDEM, the permanent Secretariat reported that, in 1991, a clear majority of the placed defence equipment contracts followed the IEPG rules set out in the policy document. Data collected on contracts covered by the IEPG cross-border competition policy showed that no cases were raised by industries under the agreed dispute settlement procedures. 16. Panel III is finally trying to reconcile diverging views of nations on the systematic extension of competition in collaborative projects to industries of non-participating nations. European Defence Industries Group (EDIG) 17. EDIG, as the European single defence industrial entity which, from a coherent industrial policy base, is an invaluable discussion partner, has been involved in the regular IEPG activities when and as appropriate. Transatlantic dialogue including NATO defence trade 18. The importance of the transatlantic dialogue, of which the defence trade is an essential element, has been confirmed. In the light ofthe value of the European contribution in the field of armaments co-operation between both sides of the Atlantic, and of the potential benefits that would arise from a lowering of trade barriers and an increase in technologytransfer on a NATO-wide basis, work on the NATO defence trade initiative is proceeding in parallel with the development of the EDEM. IEPG Chairmanship 19. At the end of the year, Belgium will have completed two years as IEPG Chair nation and will hand over this responsibility to Denmark. Ministers agreed to meet again in 1993 in the WEU framework under the chairmanship of Denmark. ANNEX A Bonn communique Bonn, 4th December 1992 The defence ministers of the thirteen IEPG nations met in Bonn on 4th December 1992. Noting that arrangements for a new security architecture in Western Europe were progressing, they supported the trend towards a rationalisation of the European fora dealing with defence matters. In particular, they took note of the role envisaged for Western European Union and welcomed the successful conclusion of the process of enlarging that body. They confirmed that the need remains for European members of NATO to consider together all aspects of armaments co-operation. Against this background, they focused their discussions on the future of IEPG activities. Recalling their decision at their last meeting in Oslo to task the national armaments directors (NADs) to examine the IEPG's futurerole in depth, ministers noted with satisfaction the work done. This workhas concentrated on the possible incorporation of the IEPG into WEU based on six key principles developed for and approved by IEPG ministers (see annex). Ministers also noted the positive results of the WEU Council on 20th November and agreed that a transfer of IEPG functions to WEU would represent an important step towards enhanced European armaments co-operation. Based on the work undertaken by the NADs, IEPG ministers have therefore decided today that this transfer would take place forthwith. They invited the Belgian Minister of Defence, in his capacity of Chairman of the IEPG, to inform WEU accordingly. In reaching this fundamental decision, they confirmed that thethirteen nations will continue to haveequal rights and responsibilities in the field of armaments co-operation and that the links with NATO will be maintained. They also emphasised the need to maintain the momentum of the activities currently being taken forward bythe IEPG. Ministers noted the status of activities to develop the European Defence Equipment Market (EDEM). They supported the requirement for further work on collecting data on IEPG cross border contracts to enable, in due time, a review of the EDEM principles taking into account the changes in the international security and defence environment. They noted that the question of a further extension of competition in collaborative projects to industries of non-participating nations was being studied. Ministers reiterated their support for developing defence industry (DDI) countries and that the areas of training, scholarship, and transfer of technology and know-how would be fully explored. Welcoming the fact that the first contracts with industry had been signed, ministers noted with satisfaction that the EUCLID research and technology programme was now well underway. They acknowledged the progress nations were making in the identification of further areas of possible research. Ministers reemphasised that harmonisation of requirements and equipment replacement schedules should be actively pursued in order to optimise the use of resources and to promote standardisation and in particular interoperability. Ministers endorsed the ongoing activities in equipment collaboration taking into account the concerns, particularly among DDI nations, to find solutions affordable to all participating nations. They welcomed the progress regarding common procurement for the microwave landing system and the work underway aimed at a feasibility study for the future large aircraft programme. Ministers underlined their belief that enhancing the European defence industrial and technological capabilities would facilitate transatlantic co-operation and reiterated the importance of NATO-wide defence equipment co-operation. They discussed the transatlantic defence trade issue from a European perspective. Bearing in mind the advantages to be gained from improving the conditions of defence equipment trade alliance-wide, they expressed the hope that the few remaining issues on NATO defence trade would be resolved rapidly. This would enable the NATO code of conduct in defence trade to be applied. Ministers expressed their gratitude to Belgium for chairing the IEPG in 1991/1992 and agreed to meet again in 1993 in the WEU framework under the Chairmanship of Denmark. Basic principles which have guided the discussions on the incorporation of the IEPG into WEU ===================================================== 1. All IEPG members should be entitled to participate fully, and with the same rights and responsibilities, in any armaments co-operation forum. 2. There should be a single European armaments co-operation forum, there should be no duplication in this field. 3. The IEPG should continue to operate until any replacement forum was to be operational. 4. Any armaments co-operation forum should take over, as starting point, the agreed policies of the IEPG and maintain existing links with NATO. 5. Armaments co-operation activities in Europe should be managed by the national armaments directors of all current IEPG members, who will be accountable to the defence ministers of those member governments. 6. The existing basic structure of the IEPG should, initially,be incorporated into any future armaments co-operation structure and the existing linkage between the IEPG and EDIG should be maintained. ANNEX B ANNEX C Panel I Sub-group overview (* observer) 1. Future large aircraft Belgium, France, Germany, Italy, Portugal, Spain, Turkey, United Kingdom* 2. Armoured bridgelayer interoperability Belgium, France, Netherlands, Spain, United Kingdom* 3. Aimed control effect-antitank mine France, Germany, United Kingdom 4. Third generation antitank weapon Belgium, France, Germany, Netherlands, United Kingdom 5. Microwave landing system Belgium, Denmark, France, Germany, Norway, Netherlands, Turkey, United Kingdom 6. STINGER Germany, Greece, Netherlands, Turkey 7. Coastal minesweeper Belgium, Netherlands, Portugal, Norway* 8. Mistral Belgum, France, Italy, Spain, Norway 9. Low caliber/individual/support weapon Belgium, France, Germany, Italy, Netherlands, Spain, United Kingdom 10. M483/M864 155 mm arti ammunition dual Netherlands, Turkey, United Kingdom 11. Armoured recce vehicles Belgium, France, Germany, Spain, United Kingdom 12. Simulation Netherlands, Spain, United Kingdom 13. Combat support ship 2000 Netherlands, United Kingdom 14. New logistic vehicles Belgium, France, Italy, Netherlands, United Kingdom 15. Short-range antitank weapon Belgium, Italy, Netherlands, Norway, United Kingdom, France* 16. Stand off air to ground weapons France, Germany, Greece, Italy, United Kingdom 17. Command A/D frigate Germany, Netherlands 18. Low frequency active variable depth sonar France, Netherlands, United Kingdom 19. Low frequency active dipping sonar for EH101 and NH90 Italy, United Kingdom 20. Air defence command and control France, Netherlands 21. Short range anti-radiation missile France, Germany, Greece 22. Advanced short range air to air missile Greece, Netherlands, Spain 23. HF radio France, Netherlands ANNEX D EUCLID: CEPA/RTP overview (Underlined CTPs: IA signed) CEPA 1. Modern radar technology RTP - 1.1 Mission related aspects CEPA 2. Silicon microelectronics - 2.2 SOI technology - 2.2 Interconnection assembly - 2.3 Military qualifications - 2.5 SOI cell library - 2.7 Mixed analog digital design - 2.8 Very high speed A/D converters - 2.9 User programmable integrated circuits - 2.13 Interconnections and packaging for MMIC CEPA 3. Composite structures - 3.1 Application technology - 3.2 Light ballistic optimisation - 3.4 Optimised polymer matrix composites for aerospace structures - 3.5 Development of technology for high temperature composites - 3.6 Composites for electromagnetic windows - 3.8 Naval application technology CEPA 4. Modular avionics - 4.1 Modular avionics harmonisation study CEPA 5. Electric gun (dormant) CEPA 6. Artificial intelligence - 6.1 Advanced work station for command and control systems - 6.2 High speed pattern recognition environment - 6.3 Knowledge engineering - 6.4 Combinatorial algorithms for military applications - 6.5 Crew assistant CEPA 7. Signature manipulation - 7.3 Improvement of RCS prediction codes - 7.8 Optimum shape design in electromagnetics CEPA 8. Optoelectronic devices - 8.1 Affordable lightweight IR sensors - 8.2 Intelligent sensors - 8.3 Solid state laser sources CEPA 9. Satellite surveillance technology, including verification aspects - 9.1 Technology concepts and harmonisation - 9.2 High resolution optical sensor technology - 9.3 Advanced space synthetic aperture radar - 9.4 Real time processing and data handling - 9.5 Ground segment technology CEPA 10. Underwater detection and related technologies - 10.1 Low frequency underwater sound propagation - 10.2 Towed array heading sensors - 10.3 Hydrodynamic noise study CEPA 11. Technology in the field of human factors including simulation for training purposes - 11.1 Training system concepts - 11.2 Simulation techniques - 11.3 Mission and/or battle simulation - 11.8 Low cost simulators