HONDURAS SENT C-130 ENGINES ABROAD FOR

S E C R E T SECTION 01 OF 03 TEGUCIGALPA 002576

SIPDIS

STATE FOR PM/RSAT, PM/DDTC, EAP/TC, AND EB/TRA
STATE FOR WHA/PPC, WHA/BSC, WHA/CAR, AND WHA/CEN

E.O. 12958: DECL: 12/23/2035
TAGS: KOMC ETTC PARM PREL PGOV MOPS PINS PINR HO CI
SUBJECT: HONDURAS SENT C-130 ENGINES ABROAD FOR
MAINTENANCE; SOURCES SAY F-5 AND OTHER ENGINES SENT TO CHILE

REF: HOT WASHINGTON DC//USDAO TEGUCIGALPA HO 061415Z

OCT 05

Classified By: Ambassador Charles A. Ford;
Reasons 1.4 (B) and (D).


1. (U) This is an action request. Please see paragraph 8.


2. (S) Post has received confirmation from the Honduran Air
Force that Honduras has shipped at least three C-130 engines
to an unnamed facility and country for repair/maintenance
without prior Department of State approval. Although in and
of itself this appears to Post to be a violation of the
Foreign Assistance Act of 1961, Section 505, the Arms Export
Control Act, and bilateral Letters of Agreement governing the
program, Post has reason to believe that this may not be the
first or only offense of this nature by the Minister of
Defense Federico Breve and the Maduro Administration.
Indications are that the C-130 engines, as well as engines
for F-5s and other aircraft, were sent to Chile for
maintenance by a private company. It is not clear how the
Government of Honduras (GOH) is paying for this work, if the
Government of Chile (GOC) knows this work is occurring, and
who, if anyone, may be benefiting on the side from such a
deal. Investigations initiated by Post have produced a great
deal of circumstantial evidence and verbal hearsay, but
little in the way of concrete evidence and proof.


3. (S) In September, Taiwan requested USG permission for a
third party transfer to repair F-5 engines and other F-5
non-lethal systems for Honduras. At the same time, the
Taiwanese told DAO that Chile was repairing three F-5 engines
from Honduras. (Note: DAO drafted a cable that they
attempted to send on October 6 reporting this information,
but due to technical glitches it appears that the IIR was not
fully disseminated. DAO rectified that situation with DIA
and the cable was re-disseminated December 21 with DTG of
October 6 - see reftel. End Note.) In late October, MILGP
was given a copy of an unsigned letter drafted for the
signature of the Honduran Air Force Commander and Chief of
Logistics stating that in March 2005, 16 engines and four
turbines were sent to Chile for repair. The engines sent
were supposedly:
- six J85-21B engines (F-5)
- four J85-17A engines (A-37)
- two T53-L13B engines (UH1-H - helicopter)
- four T-56A9D engines and four turbines for these motors
(C-130)
One rumor is that the engines were shipped via Jamaica, to
avoid detection in Miami. Post has neither independent
verification of this nor concrete evidence that, in fact, all
these engines were sent to Chile for maintenance.


4. (S) MILGP Commander raised the general question of foreign
maintenance of aircraft engines with MOD Breve in November,
and MOD Breve stated that Honduras had used foreign
maintenance in years past with no adverse consequences. He
acknowledged that there were C-130 engines in Chile, but
claimed there were no F-5 engines there. (Note: DAO, MILGP,
and POL searched but could not find any
reporting/documentation about past possible shipments of
C-130 engines abroad for foreign maintenance, which would
have taken place prior to the beginning of the tours of
current EmbOffs in these three sections/agencies. POL's
subject files from 2002 and previous years have been retired.
End Note.) MILGP received a letter dated November 29 signed
by the Honduran Air Force Commander and Chief of Logistics
stating that three T-56A9D C-130 engines would be returning
(from an unstated location) to Honduras in December. MILGP
does not believe the three C-130 engines have returned to
Honduras yet.


5. (SBU) MILGP requested guidance on this issue from
DOD/Defense Institute of Security Assistance Management
(DISAM),DOD/Defense Security Cooperation Agency DSCA),and
the PolMil representative in WHA/PPC. DISAM informed MILGP
(and PM/RSAT) that a transfer of any engines for maintenance
is a violation because Department of State written
authorization was not requested or obtained prior to the
transfer. At MILGP's request, a DOD Golden Sentry inspection
team is scheduled to arrive in March 2006 to investigate this
matter and other issues. In addition, POL has raised this
overall issue with the PolMil representative in WHA/PPC.


6. (S) Since this issue occurred and continues under MOD
Breve and the Maduro Administration (as well as current and
past Honduran Armed Forces/Honduran Air Force leadership),
Post believes the Maduro Administration, and not the incoming
Zelaya Administration (to be inaugurated January 27, 2006),
should be demarched to try to rectify this situation as soon
as possible. (Note: The Honduran Air Force Commander changed
from COL Manuel Caceres to COL Venancio Cervantes on August

9. Post has requested the revocation of COL Caceres
nonimmigrant visa for unrelated wrongdoing. End Note.)
Country Team feels that although the violations are serious
and wrong, the USG response should take into account the full
range of bilateral/regional interests. The GOH has been a
strong U.S. ally: in the Global War on Terror, having sent
troops to Iraq under Operation Iraqi Freedom, on regional
security/stability issues, including the Global Peacekeeping
Operations Initiative (GPOI),by hosting two Joint Chiefs of
Staff training exercises, and on regional air and maritime
counternarcotics operations. Given the impending
inauguration of a new, non-culpable Zelaya Administration,
regional stability concerns, and the possible involvement of
the GOC, a close partner of the USG, Post believes that a
strong, high-level demarche to the current administration
(and possibly the GOC) demanding cooperation with our ongoing
investigation, full disclosure, and prosecution of Honduran
officials if any Honduran criminal wrongdoing is uncovered,
would be sufficient at this time. In addition, in future
discussions with the incoming Zelaya transition team, this
matter would be briefed in full so that the new MOD
leadership would understand the importance of these
requirements.


7. (SBU) Post proposes delivering the following demarche by
the DCM, MILGP commander, DATT, and PolMilOff to Minister of
Defense Breve and perhaps the Joint Chief of the Honduran
Military (CHOD) and Air Force Commander.

It has come to the attention of the United States Government
(USG) that various aircraft engines of designation J85-21B,
J85-17A, T53-L13B, and T-56A9D were transferred from Honduras
to another government without prior consent of the USG. The
Department of State has a statutory obligation under Section
3 of the U.S. Arms Export Control Act (AECA) to inform the
U.S. Congress of any unauthorized re-transfer or re-export of
military items that were sold under the Foreign Military
Sales (FMS) program anywhere in the world.

The Foreign Assistance Act of 1961, Section 505; Arms Export
Control Act, Section 3; and Letters of Agreement Terms and
Conditions, specify foreign Governments may not transfer
title to or POSSESSION of any defense articles or services to
anyone not an officer, employee, or agent of that country
until the country receives prior written consent from the
USG. The word possession covers temporary transfers for
third country contractor maintenance.

The United States values its close, strong relationship with
Honduras. We expect your full cooperation in immediately
providing specific information as to the types and quantities
of engines that have been transferred for maintenance, when
they were shipped out of Honduras, their destination, and
your plans for immediately returning these engines to
Honduras.

Prior to any further transfers of equipment, you must direct
any requests to the Department of State via the U.S. Military
Group. Transfers cannot proceed prior to receiving written
authorization from the Department of State.


8. (S) Action request for:
- Embassies Santiago and Kingston (DAO, MILGP, and POL): to
investigate and track this issue. Post has information that
suggests the work is being done by a private company in Chile
named Chile Enaer, phone: (562) 383-2086 or fax: (562)
383-1855.
- PM/RSAT: to provide guidance on suggested demarche.
PM/RSAT and/or PM/DDTC may also wish to check (perhaps via
CBP/Miami) for any record of transfer of C-130 engine(s) via
Miami in 2001/2002, as allegedly occurred.


9. (SBU) Pending Department guidance, Post plans to deliver
the above demarche on this issue as soon as possible and seek
immediate action by the GOH to rectify the situation.
Ford