EGYPT: ASPIRATIONS FOR MISSILE PRODUCTION

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CIA-RDP89S01450R000200210001-2
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RIPPUB
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S
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25
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December 27, 2016
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August 6, 2012
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1
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Publication Date: 
April 1, 1988
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REPORT
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Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Intelligence 'Directorate of Secret Egypt: Aspirations for Missile Production . An Intelligence Assessment PRa7DC.`r NUMBER, /UJ 31g a 4)WM.JK PAGE NUMBERS 0 TOTAL NU R OF COPIES _ ` ~~ DISSEM DATE jf 2' 'S fr EXTRA COPIES RECORD CENTER ~f 'vl '7- JOB NUMBER ' S 4 -3B - Secret NESA 88-10024 April 1988 Copy 3 9 8 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Directorate of Secret I tH. I n e n ~ge ce U I~~I Egypt: Aspirations for Missile Production This paper was prepared byl Office of Near Eastern and South Asian Analysis, with a contribution from Office of Scientific and Weapons Research. It was coordinated with the Directorate of Operations. Comments and queries are welcome and may be directed to the Chief, Arab-Israeli Division, NESA, 25X1 25X1 25X1 25X1 Secret NESA 88-10024 April 1988 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Secret Egypt: Aspirations for Missile Production Key Judgments Cairo has made the development and production of ballistic missiles a high litformation available as of 13 April 1988 was used in this report. priority in its defense planning. The missile program encompasses at least two surface-to-surface ballistic missile projects: ? The Egyptians are working on a Scud-like missile, most likely based on a North Korean-engineered copy of a 300-kilometer-range Soviet Scud. They have test-fired this missile and, with North Korean assistance, could begin series production next year. The military may be attempting to modify some of the Scud-like missiles to extend their maximum range. begin series production of Vector missiles in the early 1990s. ? The Ministry of Defense is trying, as part of a joint program with Argentina, to produce a new missile, which it will call the Vector. This missile is similar or identical to Argentina's Condor II missile and probably will have a range of some 750 to 1,000 kilometers. Egypt could ment and production projects. Egypt's current surface-to-surface missile capabilities are extremely limit- ed. Cairo appears to be focusing on its missile program to boost its military's prestige and to keep pace with other states in the region- especially Libya and Israel-that are pursuing their own missile develop- defense industries. It will try to export missiles. The Ministry of Defense wants the technology to produce ballistic missiles, rather than simply buy them, to avoid dependence on foreign suppliers and because it believes the technological expertise acquired through the ballistic missile program will contribute to Egypt's effort to expand its The Iraqis probably are providing most of the funding for Egypt's Condor II/Vector development program and may be involved in the Scud project as well. Secret NESA 88-10024 April 1988 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Secret The Egyptians are slowly building their development and production capabilities, but the missile program will continue to depend on foreign expertise and foreign funding. Restrictions in the transfer of Western technology to Argentina and Egypt or, less likely, from North Korea to Egypt or a reduction in Iraqi financing probably would set back but not halt Cairo's missile program. Additional Scud and Condor II/Vector missiles will substantially enhance Cairo's deterrent and retaliatory capabilities. Cairo probably would use the missiles during another war to try to achieve tactical goals. It also might use the missiles to strike strategic targets but would do so, particularly in the case of Israel, only in retaliation for attacks or to avoid defeat. Egypt's acquisition of the Scuds and Condor II/Vectors and related missile production technology will contribute to missile proliferation in the region and spur other countries with less advanced missile capabilities-Libya, for example-to keep up with Cairo b lerating their own missile procure- ment and development program Ithe Egyptians, with the Condor II Vector, will have the second-longest-range system of any Arab state in the Middle East. The Israelis will continue to be concerned about Saudi and Egyptian capabilities and the likely spread of missiles to other Arab countries, especially Iraq. Tel Aviv could respond to Egyptian progress in missile production by speeding its own ballistic missile research and development efforts and urging the United States to increase pressure on Arab states to halt the proliferation of missiles. A direct US confrontation of Egypt with evidence of its involvement in missile development probably would result in Egyptian denials, temporarily strained relations with Cairo, and a brief slowing of the program to tighten access to information on the program's progress. 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 OCL:u CL Contents , Key Judgments Desire for Missile Production Technology 5 Production Capabilities Development Program Condor II/Vector Project 14 Iraqi Involvement in Egyptian Missile Projects 16 Dependence on Foreign Assistance 18 Implications for the Region and the United States 19 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 LYV _1VL Scope Note This assessment focuses on Egypt's surface-to-surface ballistic missile development and production program and on related questions concerning technology transfer and Egyptian goals. Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89S01450R000200210001-2 secret Egypt: Aspirations for Missile Production Despite unsuccessful efforts in the 1960s, Cairo re- newed its search for technology to develop short-range ballistic missiles in the late 1970s and has again made development and production of surface-to-surface missiles a high priority in its defense planning. A new program calls for Egyptian production of several types of surface-to-surface missiles by the mid-1990s countries. Israeli efforts to develop longer range sur- face-to-surface missile systems also trouble Cairo. The Israelis have flight-tested two new surface-to- surface missiles, both with ranges of at least 600 kilometers. The Egyptians undoubtedly worry about Israeli conflicts with other Arab states and, though Cairo wants to abide by its peace treaty with Tel We suspect Cairo's primary aim is to obtain a powerful deterrent against other states in the region-particularly Libya and Israel- that are pursuing their own missile development and production projects. Egypt's current surface-to-surface missile capabilities are extremely limited. ::::]it acquired about 70 Scud-Bs and 40 FROGs from the Soviets before Cairo broke relations with Moscow in the early 1970s. Some of these missiles were used in the Arab-Israeli war in 1973, and a small number probably have been sold to Iraq over the past eight years. The number of missiles remaining operational probably is less than 50, Cairo probably worries about missile proliferation in the Middle East and sees its missile capabilities shrinking when compared with those of other military forces in the region. In addition to fielding missiles with shorter ranges, Syria, Iraq, Iran, Libya, and South Yemen already have Scuds.' The Egyptians are especially concerned about Libya's missile develop- ment program and anticipate Soviet deliveries of new, more capable missiles to Libya, Syria, and other Arab Aviv, the potential for Egyptian involvement. 25X1 25X1 25X1 The Egyptians probably view the acquisition of addi- 25X1 tional Scuds, FROGs, and more capable missiles as a feasible deterrent to aggression by Egypt's neighbors and as necessary to counter the development of missiles by other regional states. In our judgment, 25X1 countries in the Middle East would find it nearly impossible to defend against missiles once they were launched, and the Ministry of Defense probably be- lieves the threat of possible Egyptian retaliation would make other countries reluctant to strike Egypt. In particular, the Egyptian military appears to be seek- ing a way to discourage possible Israeli aggression and to respond to Libyan operations without committing large numbers of forces. Nonetheless, Egypt would act cautiously in using such weapons to strike enemy strategic targets, especially in the case of Israel. Even though the missiles Cairo acquires are likely to be inaccurate, the military will count on them to weaken the military and civilian morale of their enemies as well as to disrupt military activity behind enemy lines. The Egyptians probably are convinced of the value of surface-to-surface missiles as psychological weapons the Iran-Iraq war. its neighbors in securing new technology. The military may also regard acquisition of new surface-to-surface missiles as essential to maintain its prestige in the region. We believe it sees itself as a leading force there-especially after regaining its honor in the 1973 war-and is reluctant to fall behind 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89S01450R000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89S01450R000200210001-2 We believe the Egyptians want to obtain a variety of surface-to-surface missiles to meet the military's re- quirements. Short-range tactical missiles like FROGs and Scuds most likely would be fielded with artillery brigades, perhaps even in battalions, to supplement longer range artillery. The Egyptians probably believe such weapons would be especially useful in defending against another Israeli attack through the Sinai. The military will probably continue to want missiles with longer ranges to expand its capabilities to strike deep into enemy territory without endangering air assets the military considers the Scud's In general, the Egyptians appeared to be looking for missiles that would have a range of at least 700 kilometers, could carry a 400-kilogram or larger payload, and have an accuracy of about 700 meters CEP.2 Such longer range missiles would give the Egyptians the capability to hit targets throughout the Middle East, possibly an important consideration for Cairo if its enemies- in the region change during the next decade. The Ministry of Defense in the short term probably intends to use conventional warheads on its surface- to-surface missiles, but defense planners expect them eventually to carry a variety of Cairo is expanding its chemical industries, and Egypt's use of chemicals in the mid- 1960s in the Yemen war suggest that the Egyptians would consider using chemical warheads in a future conflict. Although the surface-to-surface missiles Egypt is seeking could accommodate nuclear war- heads, Egypt will lack the capability to produce such warheads for the foreseeable future ' The circular error probable (CEP) is the radius of a circle centered on the target into which half the missiles fired could be expected to Egypt's Chemical Warfare Capability Egypt's chemical warfare capability is one of the oldest and best among the Arab states. The Egyptian military began developing its chemical capability, including training, materiel, and indoctrination, in the late 1950s with Soviet assistance. It used chemi- cal agents probably tear gas, mustard, and phos- gene-against Yemeni tribesmen in 1963. After Sovi- et assistance ended in the 1970s, Cairo continued to enhance its chemical warfare capabilities. attempting to acquire technology and precursor chemicals for indigenous production of chemical agents, probably to be carried out in their Abu Za'bal the Egyptians have been 25X1 25X1 2bAl 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89S01450R000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012111105: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012111105: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 secret Figure 1. Sakr-80 rocket. The Egyptians exhibited this FROG-like system at their de- fense show in Cairo in Novem- ber 1987. The Sakr-80 is an unguided rocket with a range of Desire for Missile Production Technology Cairo wants the technology to produce ballistic mis- siles rather than buy them, As is the case with other weapons, the Egyptians probably fear dependence on foreign suppliers and are willing to pay high initial costs to produce their own missiles. We suspect the scarcity of reliable suppliers of surface-to-surface missiles and Western efforts to restrict transfers of missiles and related technology are reinforcing the Egyptians' commitment to indigenous production. Moreover, Cairo probably hopes technology acquired through the missile program will help establish a technological and industrial base that will benefit other parts of the Arab Organization for Industrialization offered the prospect of increased funding and cooperation A series of joint ventures and contracts with Western firms has enabled the Egyptians to make gradual progress in building their missile production capabili- ties since the late 1970s, but theiroutnut is limited to smaller scale rockets and missiles. is producing, RPG-7 antitank rockets, 122-mm light artillery rockets, tar- get rockets, smoke-generating rockets, and Sakr-eye surface-to-air missiles (reverse-engineered SA=7s). The Egyptians also have developed a prototype of a FROG-like weapon, called the Sakr-80. E needed foreign exchange by selling missiles and possi- bly guidance and other missile technolog Egypt has been seeking to produce surface-to-surface missiles since the 1950s. Financial difficulties, higher priorities for other projects, and interruptions of re- search by war have caused temporary setbacks. Sever- al missile programs begun in the 1960s-the Victor, Conqueror, and Pioneer-met with little success and were canceled after the Arab-Israeli war. in 1967. . Nonetheless, Cairo's interest in missile development and production intensified in the late 1970s, when peace with Israel enabled it to redirect resources and 'The Arab Organization for Industrialization (AOl) was formally established in 1975 when Saudi Arabia, Kuwait, Qatar, and the, United Arab Emirates provided about $2 billion to start an Arab military industry based in Egypt. Cairo contributed manpower and four arms factories that could produce aircraft, armor, munitions, and engines. Egypt's peace treaty with Israel resulted in the withdrawal of Arab funding from AOI, but Cairo has been operating the AOI on its own, relying on,foreign credits and money from arms exports. With the gradual warming of relations with the Gulf states, Cairo has been trying to rekindle interest in renewed 25X1 25X1 25X1 25X1 25X1 25X1 25X1 9X1' 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Secret but the Ministry of Defense is working to extend its range to at least 60 kilometers. gained the capability to manufacture composite propellants that could be used in rocket motors. in August 1987, Cairo While expanding its capabilities to produce small missiles and rockets, we believe Egypt has been gradually acquiring some of the technology, expertise, and facilities it will need to manufacture surface-to- surface ballistic missiles: and the work force to increase production of bal- listic missiles at their Sakr Factory (and the nearby development, is well equipped with modern Western machinery and is generally well managed. Center" in the Cairo area with assistance and technology from a West German firm, Messer- schmitt-Boelkow-Blohm, The center will be used to improve guidance systems for surface-to-air mis- siles, but we believe some facilities within the center or nearby will support work on inertial navigation systems and components used in ballistic missile production. ? Egypt is continuing efforts to expand its solid- rocket-propellant manufacturing capacity at its Abu Za'bal chemical factory. With assistance from a West German firm in 1979, the factory probably expected to obtain a 300-gallon propellant mixer from a West German firm that will enhance Egypt's propellant production capabilities (the mix- er will enable Egypt to produce at one time enough propellant to load a 2,000-kilogram solid-rocket motor or several smaller motors). The Egyptians also are seeking West European assistance to ex- pand their facilities for producing ammonium per- chlorate, a key solid-propellant ingredient, and to improve their ammonium perchlorate grinding technology in order to reduce Egypt's dependence on external suppliers of solid-propellant ingredients. 2.5X1 25X1 25X1 ? Between 1984 and 1985, Egypt acquired a static- firing rocket test facility and calibration laboratory from a French company and, with French assis- tance, gained the capability to manufacture large rocket motors. 25X1 25X1 25X1 25X1 25X1 We believe responsibility for surface-to-surface mis- sile development continues to rest with the military, 25X1 1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89S01450R000200210001-2 aCCfCL the following facilities are in some way related to surface-to-surface ballistic mis- sile development and production in Egypt: ? Sakr Factory for Developed Industries (formerly Factory 333). The Egyptians carry out most of their missile development and production at this factory, located in the Almaza section of northeast Cairo. clean and well equipped with machines from West Germany, France, the United Kingdom, the United States, and Switzerland and has a work force of about 5,000 people. The Sakr Factory produces a variety of rockets and missiles including RPG-7 antitank rockets, Hosam antitank handgrenades, 122-mm artillery rockets, trainer flying target rockets, smoke generating rockets, 122-mm illumi- nating rockets, Sakr-eye surface-to-air missiles (re- verse-engineered SA-7s), and the Sakr-80 rocket (FROG-like weapon). We believe development of Egypt's Condor II/Vector also is under way at the Sakr Factory, probably in one of the newer buildings. ? Arab-British Dynamics Company. This facility is also part of the Arab Organization for Industrial- ization and is located in the Sakr Factory com- pound adjacent to Sakr facilities. The Egyptians have used the factory to produce British-designed, 1960s-generation Swingfire antitank guided mis- siles. ? Abu Za'bal Company for Specialized Chemicals. We believe the Egyptians are manufacturing solid fuel for rocket motors at this facility and testing ? Jabal al Hamzah Range. The Egyptians probably conduct most of their surface-to-surface ballistic missile tests at this range. It is located northwest of Cairo. The Sakr Factory also uses the range to test other munitions. ? Egyptian Space Research Center. We believe part of the center may house surface-to-surface ballistic missile-related equipment. 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89S01450R000200210001-2 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Next 1 Page(s) In Document Denied Iq Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 agreement in December 1987 for the transfer of missile technology-probably for Scuds-to Egypt. the North Koreans expect royalty payments on Egyptian-produced Scuds. to receive some of the Egyptian missiles as part of the agreement, but the deal may only call for additional Many of the details of Egypt's missile development program are unclear, but, we believe the Ministry of Defense is developing at least two surface-to- surface ballistic missiles for Egyptian forces and to sell abroad. In the next one to five years we expect Egypt to produce versions of Scud missiles and a longer range missile system similar to Argentina's Condor II missile currently under development. The Egyptians cannot manufacture entire Scud or Condor systems independently, however, and are involved in coproduction projects with North Korea and Argenti- Egypt was to conduct a range test of a missile assembled in North Korea. The intermediate stage involves moving to Egyptian assembly and testing of Scud-"kits" provided by North Korea and developing the tooling and infrastructure that would enable Egypt to manufacture all components. During the last part of the program, Egypt is to begin series produc- tion of the missiles with little or no North Korean na, respectively. Scud Project The Ministry of Defense, we believe, has been work- ing with North Korea since the early 1980s on a project to produce in Egypt missiles similar to Soviet Scuds. Cairo provided Scuds to North Korea in 1983 for reverse- engineering, most likely in exchange for North Korean promises to assist in production of Scuds in Egypt. We believe the Egyptians are paying P'yong- yang a considerable sum for its assistance. We believe the Egyptians have reached the intermedi- ate phase of the project-building missiles from kits and testing them. Egyptian military officers spent some 18 months in North Korea during the period 1984-85 conducting research and receiving training on the Scud system. by September 1986, the Egyptians and made more progress in 1987. North Koreans were assembling missiles-probably prototypes-in Egypt.6 The Egyptians apparently license to manufacture North Korean Scuds in 1986, and North Korean and Egyptian officials signed an Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Oecrei probably manufactured with North Korean assistance from kits, at their Jabal al Hamzah test range. We do not know the specifications of the North Korean=Egyptian Scud-like missile, but the North Koreans probably have made few if any modifications Argentina's Condor II project-an effort to develop a two-stage, short-range ballistic missile system-as early as 1983.' We do not know the specifics of the Argentine-Egyptian cooperation agreement, but we believe Cairo is helping to fund the program and is assisting directly in coproducing the system. Egyptian military technicians have been working with Argen- tine engineers at Argentina's Cordoba facility since to the Soviet system the missiles tested in Egypt were similar in .maximum range-about 300 kilometers Nonetheless, we cannot rue out Egyptian attempts to alter the missile, possibly using technology acquired from the West or from Iraq, to achieve greater range and accuracy and perhaps to carry a different payload. Egypt in 1986 was exploring possibilities that might lead to production of a 600-kilometer-range are are working closely wit European firms from which they are receiving technology for the-missile subsystems similar or identical to Argentina's Condor II.E:: of special projects is sponsoring a separate develop- ment and production program in Egypt for a missile Cairo may buy a small number of missiles and key components in the short term, but the Ministry of Defense probably expects to gain full production technology for the Condor II system by the early 1990s through cooperation with Argentina. The office Condor II/Vector Project The office of special projects is working with Argenti- na and West European firms to develop a new surface-to-surface missile. the Egyptians began participating in 25X1 25X1 25X1 :25X1 2bA] 25X1 25X1 2bAl 25X1 25X1 2.5X1 25X1 25X1 ILLEGIB1 25XI 25X1 LOA1 2.5X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 ILLEGIB Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Iq Next 2 Page(s) In Document Denied 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Secret Figure 9 Estimated Maximum Ranges of Egyptian Missiles Z f Sardinia Foreign technology and material assistance are criti- cal to Egypt's missile program. Cairo, in our view, lacks sufficient technical expertise-especially in pro- pulsion systems, rocket-motor production, and guid- ance and control-to produce surface-to-surface mis- siles like the Scud and the Condor independently. In particular, the Egyptians cannot manufacture in suffi- cient quality and quantity many of the materials needed for Condor production, including ammonium perchlorate for solid propellants and probably the special steel needed for motor cases. Cairo has ac- quired or will soon obtain most of the equipment, technology, and materials to produce Scuds, but, Caspian' Sea-, I Boundary representation Is not necessarily authoritative. ~KU1w KUWAIT Persia Gvll MANAMA . DOHA ON~Bf Unl ed Arab Emirates j Yemen People's Dem. Arab Rep. Rep. of Yemen SANAA/ (S.Y Scud range (300 kilometers) Condor II/Vector range (1,000 kilometers) 0 1000 Kilometers 1000 Miles Bar acele accurate at ngttMcr only given Egypt's poor performance in other military production efforts, we suspect that assembly of such missiles would quickly stop without North Korean technical assistance. The North Koreans must help the Egyptians overcome even minor difficulties and assure quality control. Cairo also depends on foreign financial assistance to continue its missile program. Even though the Minis- try of Defense pays for part of the program it probably cannot cover all costs, especially with other military programs competing for funds. We suspect that most of the missile program is 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 secret supported by Iraqi payments and perhaps transfers from Saudi Arabia either directly or through Iraq. Cairo is likely to continue making surface-to-surface ballistic missile development a high priority. The military's progress with the Scud and Condor II/Vec- tor projects will sustain high-level support for missile development, in our view. Moreover, the acquisition of new or more missiles by other Middle Eastern states-such as the Saudis' purchase of CSS-2 inter- mediate-range ballistic missiles from China-may cause the Egyptians to try to accelerate or expand their program, though they probably would need additional foreign support. The military appears more likely to succeed in the near term with its Scud production efforts than with its Condor II/Vector project. Series production of Scud-like missiles in Egypt could begin late next year if North Korea provides assistance and kits or most of the parts for assembly. Egypt probably cannot pro- duce the entire missile independently before the earl believe Cairo could receive the necessary assistance from Western firms involved in Egypt's other missile projects or possibly from Iraq. We believe Egypt could begin series production of Vector missiles by the early to middle 1990s. Access to Western technology and systems, such as the thrust-vector control for guidance, has advanced Ar- gentine and Egyptian progress over the past 18 months on the Condor II. Full-scale production of that system in Argentina may begin by 1990, and we would expect to see additional technology and compo- nent transfers to Egypt shortly thereafter that would enable Cairo to begin producing Vector missiles with- in two years. Argentina's and Egypt's continued uncertainty about the missile's second stage and reliance on Western firms for parts and technology may slow development and production efforts Implications for the Region and the United States Possession of more Scuds and of Condor II/Vector 25X1 surface-to-surface missiles, in our view, will substan- tially enhance Egypt's capability to deter and retaliate against enemy attacks: ? Additional secure supplies of Scud missiles-partic- ularly if Egypt's inventory is larger than that of its opponent-may increase Cairo's willingness to use the weapons in response to military threats. Larger numbers of the missiles would increase the Egyp- tians' chances of hitting specific targets, since many missiles often must be used to compensate for their inaccuracy. The range of the Scud would allow Cairo to hit targets in Israel as well as Israeli troop concentrations in the Sinai. Most important targets in Libya and Sudan, however, would remain out of 25X1 range. ? If Cairo obtains the Condor II/Vector, it will have a longer range surface-to-surface missile than those held by other Arab states The Condor II/Vector would put many targets in the Middle East and Africa within range, including those in northern Chad, northern Sudan (including Khartoum), southern Syria (including Damascus), and western Libya (including about half of Libya's ground forces and some Libyan oilfields). 25X1 25X1 Cairo almost certainly would use the missiles in the event of another war to try to achieve tactical aims. It 25X1 also might use such weapons against enemy strategic targets-civilian and economic facilities-but proba- bly only in retaliation for similar attacks against Egypt or to avoid defeat. In the case of another war with Israel, Cairo probably would be especially reluc- tant to escalate the conflict by initiating missile strikes against strategic targets for fear of devastating Israeli reprisals. Egypt's acquisition of additional Scuds and Condor II/Vectors will contribute to and probably accelerate the proliferation of surface-to-surface missiles and missile production efforts in the region 2525X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Iraq's acquisition-probably by altering a Scud-of the Al-Husayn missile already have weakened con- straints on the proliferation of missiles with ranges greater than 300 kilometers. Libya and Syria, in particular, would want to hasten their missile develop- ment programs to keep pace with other states in the Middle East. Meanwhile, Cairo eventually will sell Scuds and Condor II/Vectors to Baghdad while Iraq completes its own missile-production facilities. We cannot rule out sales of the Egyptian missiles to other countries, including the Arab Gulf states and Paki- stan, possibly giving Islamabad a delivery vehicle for nuclear weapons. wi continue to be concerne about Egyptian capabilities and the likely spread of missile systems and production technology to other Arab countries, especially Iraq. to Egyptian advances in missile production by speed- ing its own ballistic missile research and development efforts as well as urging the United States to increase its efforts to help halt the proliferation of such Arab missiles. US efforts to curtail transfers of missile-related tech- nology and raw materials to Egypt probably would slow but not halt Cairo's missile program. Unless more countries support the Missile Technology Con- trol Regime and those countries in the Regime en- force its restrictions more rigorously, Cairo will con- tinue to find firms or countries-such as North Korea and possibly China-that will be willing to provide support! A direct US confrontation of Egypt with evidence of its involvement in missile development probably would result in Egyptian denials, temporar- ily strained relations with Cairo, and a brief slowing of the program to increase security and tighten access to information on the program's progress 25X1 25X1 25X1 L~.)A I 2.5X1 25X1 Tel Aviv could respond 'The Missile Technology Control Regime was announced by the United States and Canada, France, West Germany, Italy, Japan, and the United Kingdom in April 1987. It attempts to halt the transfer of ballistic missile technology to potential nuclear prolifer- Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/11/05: CIA-RDP89SO145OR000200210001-2 Secret Secret Declassified in Part - Sanitized Copy Approved for Release 2012/11/05 : CIA-RDP89SO145OR000200210001-2