CHILE: BLUE LANTERN LEVEL THREE, POST CLEARS ON

UNCLAS SANTIAGO 000287

SIPDIS

SIPDIS

STATE FOR PM/DTCC BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: KOMC ETTC CI
SUBJECT: CHILE: BLUE LANTERN LEVEL THREE, POST CLEARS ON
APPLICATION 05-984045

REF: STATE 09494


1. Reftel requested a Blue Lantern Level Three pre-license
end-use check on application 05-984045 for the export of two
Bell UH1H helicopter engines to Chilean company Helicopteros
del Pacifico.


2. Helicopteros del Pacifico (HdP) is a privately-owned
company, incorporated August 10, 1990. HdP is located in
Temuco, which is 417 miles from Santiago and a nine-hour
drive from the Embassy. It is 98 percent owned by Carlos E
Berrie, Chilean citizen, who acts as general manager.
Berrie's wife owns the remaining two percent. HdP has
fire-fighting contracts with two major forestry concerns,
Forestal Mininco and Forestal Arauco, as well as with CONAF,
the GOC's national forestry agency. HdP currently owns and
operates six Bell UH1H helicopters; operates an additional
three Bell UH1H helicoptors owned by Inversiones Aereas
Patagonia Limitada; and, as required, operates an additional
eight Bell UH1H helicoptors owned by Consorcio Patagonia del
Pacifico. Berrie informed Poloff that four of the UH1H
helicopters owned by HdP were purchased from the Federal
Republic of Germany, but had never been "militarized." All
of the remaining helicopters operated by HdP are
demilitarized models purchased locally from other Chilean
entities. Berrie said that in each case, the proper end-use
transfer permissions had been sought and received from the
U.S., with the possible exception of Bell UH1H 65-09858, tail
number CC-CNM, purchased by HdP from Servicio Aereo Agricola
Limitada in 2005. As of February 7, 2006, Berrie was
attempting to verify whether Servicio Aereo Agricola Limitada
had obtained transfer permission for this transfer.


3. All of the UH1H helicopters operated by HdP are
registered and licensed as civilian aircraft. They are
certified in a restricted category, authorized for external
load operations, agricultural operations, forestry and
wildlife conservation operations and fire patrolling. HdP
helicopters are authorized only to carry personnel
legitimately engaged in the above activities, and cannot be
operated for commercial transportation or tourism. In
firefighting operations they deploy fire crews and conduct
water and flame retardent drops.


4. Berrie noted that the two engines identified in
application 05-984045 are currently under impound in Miami
Customs, apparently due to a mistake by the freight
forwarding company. Berrie was conversant with the
restrictions in regard to United States Munitions List (USML)
items, noting that he was required to obtain transfer
approval even when shipping engines back to the US for
maintanence or overhaul.


5. Reftel also requested Post perform a site visit to assess
the operations of Helicopteros del Pacifico and its on-site
security. Poloff was not able to conduct a site visit, given
HdP's distance from Santiago and insufficient Post travel
funds. However, Post finds that HdP is likely a reliable
recipient of USML items. HdP appears to be a legitimate
firefighting operation based out of Temuco, in mid-southern
Chile. HdP is in the FCS database, and owner Berrie met with
FCS at the Embassy in 1999. Berrie was very responsive to
Post's requests for information, and speaks fluent English.
KELLY