SWEDES TO TRANSFER THREE BELL HELICOPTERS TO SPAIN

SECRET S E C R E T STOCKHOLM 000772 SIPDIS E.O. 12958: DECL: 11/17/2018 TAGS: ETRD, ETTC, MCAP, PARM, KOMC, IR, SW, SP SUBJECT: SWEDES TO TRANSFER THREE BELL HELICOPTERS TO SPAIN REF: A. KOEHLER-PEARTREE TELCON 11/17/08 B. STOCKHOLM 744 C. STOCKHOLM 609 AND PREVIOUS D. STATE 92567 E. 06 STOCKHOLM 243 Classified By: DCM Robert J. Silverman for reasons 1.4 (b) and (d) 1. (S) Summary: A Swedish firm in possession of three Bell 212 helicopters plans to transfer the helicopters to Spain tomorrow, November 18, without obtaining export authorization from the USG. Sweden's Inspectorate for Strategic Products say they lack any legal basis to stop the transfer. There are reasons to suspect that the helicopters or their components could be re-exported from Spain to Iran. Please see action request in para 5. End Summary. 2. (S) On November 14, Jan-Erik Lovgren, Deputy Director, the Swedish Inspectorate of Strategic Products (ISP), told Econoff that the Head of European Helicopter Services (EHS), Mrs. Helena Pariza, informed him that she intends to transfer the three Bell 212 helicopters that are the subjects of reftels to Spain on Tuesday, November 18. He added that under Swedish legislation the three helicopters are not considered military equipment and therefore do not require export licenses. Lovgren commented that because the proposed transfer will be to Spain, another EU state, the Swedish Customs Authority will not get involved. 3. (S) POL Counselor contacted Lovgren on November 17 to remind him that EHS must seek written authorization from the USG before exporting the helicopters. Recalling earlier reports that several Iranian nationals had visited Sweden and inspected the helicopters, he reiterated concerns that once the helicopters have been decommissioned, key components could be re-exported to Iran. Lovgren did not disagree, but claimed that he was powerless under Swedish law to take any steps to block the transfer. 4. (S) Separately, Lovgren informed us by email that Mr. Arnie Sundquist, whose company is responsible for storing the helicopters in Sweden, is currently abroad and expects to return to Sweden November 18. Sundquist reportedly instructed the airport where the helicopters are stored not/not "to open the gates" until he has returned. 5. (S) Action request: Per Ref A, Post requests Department guidance for use with ISP and EHS, as appropriate. WOOD