UPDATE - SWEDES WILL PROHIBIT TRANSFER OF

S E C R E T STOCKHOLM 000778 SIPDIS E.O. 12958: DECL: 11/19/2018 TAGS: ETRD ETTC MCAP PARM KOMC IR SW SP SUBJECT: UPDATE - SWEDES WILL PROHIBIT TRANSFER OF HELICOPTERS TO SPAIN REF: A. STOCKHOLM 772 ¶B. KOEHLER-PEARTREE TELCON 11/17/08 ¶C. STOCKHOLM 744 ¶D. STOCKHOLM 609 ¶E. STATE 92567 ¶F. 06 STOCKHOLM 243 Classified By: POL Counselor Marc Koehler for reasons 1.4 (b) and (d) ¶1. (S) Summary: Sweden's Inspectorate for Strategic Products (ISP) has determined that three helicopters that were to be shipped to Spain are, in fact, military equipment. Therefore, ISP will not allow them to be exported until and unless the USG approves. This information has been communicated to the owner of the helicopters. End Summary. ¶2. (S) On November 19, Jan-Erik Lovgren, Deputy Director, the Swedish Inspectorate of Strategic Products (ISP),called POL Counselor to say that he had been informed that the three Bell 212 helicopters that are subjects of reftels did, in fact, have military content related to "countermeasures" and "defensive wiring." Therefore, he continued, they are considered military equipment under Sweden's Military Equipment Ordinance and ISP would block their transfer until and unless the owner, European Helicopter Services (EHS), obtained all required authorizations from the U.S. Government. Lovgren stated he would inform EHS owner Helena Pariza of this development. ¶3. (S) Econoff subsequently followed up with Pariza, who confirmed that Lovgren had been in contact and had informed her that the helicopters are, in fact, classified as military equipment and therefore require a license and permission from the USG before they can be exported. She told Econoff that she "wants to do this correctly" and had visited the DDTC website the embassy provided her. She admitted that she had planned to ship them by truck Thursday, November 20, but said she would now wait until she has applied for and received a re-export license. She has sent the website to her Swedish attorneys, so that they can review the information and ensure that all forms are completed properly. Pariza stated also that she plans to decommission the helicopters, but since her company owns a hangar in Spain, it is much cheaper to store them there until they have been decommissioned. Econoff asked what she planned to do once she had decommissioned the helos, and she replied that she did not know at this point. She continued to emphasize that she would not move the helos until she had received the proper license from the USG. ¶4. (S) Comment: We note the apparent interest in the helicopters by Iranian visitors to Sweden (reftels),and Ms. Pariza's lack of clarity on what might happen to the helicopter parts once they are decommissioned in Spain. Absent any other explanation, then, we assume she would still like to conclude a deal with Iran for the helicopter parts. End Comment. WOOD