Identifier
Created
Classification
Origin
08STATE92567
2008-08-28 16:28:00
CONFIDENTIAL
Secretary of State
Cable title:  

DEMARCHE REQUEST: POSSIBLE UNAUTHORIZED

Tags:  ETTC KOMC SW 
pdf how-to read a cable
VZCZCXYZ0016
RR RUEHWEB

DE RUEHC #2567 2411630
ZNY CCCCC ZZH
R 281628Z AUG 08
FM SECSTATE WASHDC
TO RUEHSM/AMEMBASSY STOCKHOLM 0000
INFO RUEHRL/AMEMBASSY BERLIN 0000
RUEHTV/AMEMBASSY TEL AVIV 0000
RHMCSUU/FBI WASHINGTON DC 0000
RUEAIIA/CIA WASHINGTON DC 0000
RUCPDOC/USDOC WASHINGTON DC 0000
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC
C O N F I D E N T I A L STATE 092567 

SIPDIS
STOCKHOLM FOR RICHARD LAROCHE
ECON

E.O. 12958: DECL: 08/26/2016
TAGS: ETTC KOMC SW
SUBJECT: DEMARCHE REQUEST: POSSIBLE UNAUTHORIZED
RETRANSFER OF BELL 212 HELICOPTERS

REF: A. WATKINS-MCDOWELL-LAROCHE EMAILS JULY 2008 B.
STOCKHOLM 423 C. 2006 STOCKHOLM 243 D. 2005
STOCKHOLM 1867 E. 2005 STATE 184935

Classified By: PM/DTCC Director David Trimble, Reasons 1.4(B)(D)

C O N F I D E N T I A L STATE 092567

SIPDIS
STOCKHOLM FOR RICHARD LAROCHE
ECON

E.O. 12958: DECL: 08/26/2016
TAGS: ETTC KOMC SW
SUBJECT: DEMARCHE REQUEST: POSSIBLE UNAUTHORIZED
RETRANSFER OF BELL 212 HELICOPTERS

REF: A. WATKINS-MCDOWELL-LAROCHE EMAILS JULY 2008 B.
STOCKHOLM 423 C. 2006 STOCKHOLM 243 D. 2005
STOCKHOLM 1867 E. 2005 STATE 184935

Classified By: PM/DTCC Director David Trimble, Reasons 1.4(B)(D)


1. (U) This is an Action Request for Embassy Stockholm.
Please see paragraph 5.

--------------
SUMMARY
--------------


2. (U) Post recently obtained information that European
Helicopter Service (EHS) Sweden may be planning to retransfer
four Bell 212 helicopters to a third country without prior
approval from the Department. EHS Sweden is in possession of
four Bell 212 helicopters originally purchased from the
Government of Israel in 2005. The retransfer was approved by
Department via direct commercial sales (DCS),which limited
EHS Sweden's geographic operation of the helicopters and end
use for fire protection services. Department requests post
notify appropriate Government of Sweden (GOS) agencies about
the reported plans to transfer these helicopters and remind
the GOS of the requirement for EHS Sweden to receive
authorization from USG before any potential retransfer.

--------------
BACKGROUND
--------------


3. (U) In 2005, the Government of Israel (GOI) requested to
retransfer 16 Bell 212 helicopters; they were originally
purchased by the GOI in the 1970s via direct commercial sale
(DCS). In October 2005, the Department approved the
retransfer of the helicopters to EHS Sweden via European
Petrol Station GmbH (EPS) Germany with an approved end use
limited to fire protection operations in Sweden, Norway,
Denmark, and Germany in October 2005. Any leasing of these
helicopters beyond these established parameters, or
retransfer to different end-users, must be authorized by the
Department, via a written request from EHS Sweden or EPS
Germany.


4. (C) After approving the retransfer of 16 Bell 212
helicopters, Department received information from Embassy
Stockholm in February 2006 (Ref C) raising questions
regarding the final end use of the helicopters. As a result,
Department halted the additional retransfer of helicopters
from Israel to EHS Sweden via EPS Germany. According to the
GOI, three helicopters were physically transferred to EPS
Germany before the transactions stopped. New information
from post in July 2008 from a confidential and apparently
reliable source (Ref B) raises the level of concern that the
retransfer of helicopters to an unauthorized third party may
be imminent.

5. (C/REL to Sweden) Action request for Embassy Stockholm:

- Request the GOS to investigate the current status and end
use of the EHS Sweden Bell 212 helicopters; does EHS Sweden
plan to sell the helicopters to a third party?

- Remind EHS that the 2005 licensing approval limits
helicopter use to Sweden, Norway, Finland, Denmark and
Germany. (Note: EHS Sweden must receive authorization from
the Department before retransferring such defense articles to
a third party, per International Traffic in Arms Regulations
(ITAR),Section 123.9 (a): "The written approval of the
Directorate of Defense Trade Controls must be obtained before
reselling, transferring, transshipping, or disposing of a
defense article to any end user, end use or destination other
than as stated on the export license." End Note.)

- Prior information indicated that only three helicopters
were transferred to EHS Sweden; however, recent data (Ref B)
indicates four may have been retransferred. Can the GOS
verify the exact number of Bell 212 helicopters, including
serial numbers, that EHS Sweden received from Israel via EPS
Germany?

- The GOS should notify the appropriate domestic agencies
(e.g. SAPO, Swedish Export Control Council, etc.) of the
presence and status of these helicopters so they can be
appropriately monitored and safeguarded against unauthorized
retransfer.

- Please remind GOS to notify USG should a retransfer appear
imminent.

END ACTION REQUEST



6. (U) Please slug reply for PM/DTCC Tim Watkins and EUR/NB

H. Martin McDowell.
RICE