VZCZCXYZ0000
PP RUEHWEB

DE RUEHZP #0467 1571422
ZNY CCCCC ZZH
P 051422Z JUN 08
FM AMEMBASSY PANAMA
TO RUEKJCS/OSD WASHDC PRIORITY
RHMFISS/CDR USSOUTHCOM MIAMI FL PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY 2140
INFO RUEHBO/AMEMBASSY BOGOTA 2690
RHEHAAA/NSC WASHDC
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC

C O N F I D E N T I A L PANAMA 000467 
 
SIPDIS 
 
STATE FOR INL A/S JOHNSON 
OSD FOR DASD JOHNSON 
SOUTHCOM FOR ADM STAVRIDIS 
 
E.O. 12958: DECL: 06/05/2018 
TAGS: EAIR SNAR PARM MASS PREL PM
SUBJECT: IMPORTANCE OF USG AVIATION ASSISTANCE TO PANAMA 
 
REF: A. PANAMA 462 
     ¶B. PANAMA 445 
 
Classified By: Charge Luis Arreaga, Reasons: 1.5 B & D. 
 
¶1.  (C)  In the wake of the deadly crash of Panama's sole 
operational National Air Service (SAN) helicopter (see 
reftels), and following on President Torrijos' visit to 
Washington in early May, the time is now for consideration of 
greater USG aviation assistance to Panama.  As a major 
logistics center and transshipment point for the movement of 
cocaine to the U.S., Panama desperately needs to count on 
aviation support to assist with USG-led interdiction efforts. 
 It also requires aerial transport capability for security 
forces to the remote Darien region that has experienced a 
marked increase in FARC presence and activity in recent 
months. 
 
¶2.  (C) Panama's current rotary wing fleet consists of four 
Bell 212 helicopters, inadequate to meet counter-narcotics 
and counter-terrorism challenges.  Three helicopters were 
originally purchased from Israel.  None are currently 
operational, and all require major updating/refurbishing.  A 
current SAN proposal, reportedly pending final Presidential 
authorization, is a roughly $8 million contract (GOP funded) 
to refurbish the four helicopters with a Canadian firm. 
 
¶3.  (C) While Panama enjoys a budget surplus and should be 
able to dedicate significant resources to refurbish and/or 
purchase new helicopters, it requires a reliable, ongoing 
partner for training, support, and key maintenance.  In the 
absence of USG-donated new helicopters, we believe the USG 
should attempt to provide support and financing for 
Panamanian-funded acquisitions.  Panama received no FY 08 FMF 
funding and projected FMF/other security assistance funding 
levels for FY 09 remain insufficient to support any 
refurbishment of the SAN's inventory nor the purchase of any 
new helicopters. 
 
¶4.  (SBU) In late 2007, NAS proposed a major air readiness 
program (training on maintenance and operational procedures) 
for rotary wing SAN aircraft, in close coordination with 
INL/Air Wing and U.S. partner Bristow Air Academy.  The 
program counts on a strong buy-in from the senior levels of 
the GOP.  We look forward to the completion of the 
contracting of this long-awaited program. 
 
¶5.  (C) State and DOD aviation assistance would help meet a 
critical need for Panama as it continues to work closely with 
us on counter-narcotics and begins to take a more active 
posture vis-a-vis the FARC.  The early July visit of Daniel 
Delgado, Minister of Government and Justice, will provide an 
additional opportunity for senior-level engagement with the 
GOP on this critical need area. 
ARREAGA