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