CHILE: A UTILITARIAN RELATIONSHIP WITH ISRAEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP04T00990R000100390001-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 23, 2016
• Document Release Date: April 10, 2013
• Sequence Number: 1
• Publication Date: February 5, 1988
• Content Type: REPORT

I/ Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8 25X1
Central Intelligence Agency
Washington. . 20505
DIRECTORATE OF INTELLIGENCE
5 February 1988
Chile: A Utilitarian Relationship with Israel
Summary
Ties between Chile and Israel have grown rapidly
since the mid-1970s. Although there is limited
political, diplomatic, and intelligence cooperation
between the two countries, the relationship centers on
arms transfers and related service and training
matters. Israel--which is now Santiago's most
important weapons supplier after the United Kingdom--
has sold Chile a wide variety of hardware, including
air-to-air missiles, patrol boats, tanks, jet aircraft
and advanced elctronics gear. We believe that Santiago
will maintain--and possibly increase--its contacts_w441r
Tel Aviv over the near termAstnue it-V-a.lues Israel's
battle-tested equipment and calculates that a discrete
relationship will not jeopardize its commercial
equities in the Arab world. Israel's main interest in
Chile is retaining its lucrative arms market, and Tel
Aviv is highly unlikely to jeopardize its military
relationship to support political goals such as a
return to civilian rule in Santiago.
25X1
25X1
25X1
This type'script was prepared by South American_ 25X1
Division, Office of African and Latin American Analysis.
Comments and queries are welcome and may be directed to the
Chief, South American Division, ALA, 25X1
ALA M 88-20010
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8
25X1
Declassified in Part - Sanitized Copy Approved for Release /05/16 : CIA-RDP04T00990R000100390001-8 25X1
Background
Until the late 1960s relations between Chile and Israel were
limited and of low priority. During the first two decades of
Israel's existence, for example, Tel Aviv did not maintain a
diplomatic presence in Santiago, accrediting its ambassador to
Argentina as nonresident minister to Chile and several other
capitals. Following the 1973 Arab-Israeli war and Arab success
in spurring black African nations to break relations with Israel,
however, Tel Aviv began to devote more attention to Latin
America. During the past decade Israel has attempted to broaden
its diplomatic, cultural, and economic contacts throughout the
region, using them effectively to expand into the arms trade.
Since Washington instituted the arms embargo against the Pinochet
regime in 1976, Chile has become a prime target of Israeli arms
sales--we estimate that Santiago is now Tel Aviv's second or
third largest weapons customer in ,Latin America, after Argentina
and Venezuela.
While Santiago appreciates the arms link with Israel, it is
careful to protect its growing economic ties to the Arab world,
which we believe Santiago views as more important over the longer
term. Non-military Chilean trade with the Arab bloc from 1977 to
1986 amounted to about $1.2 billion--with a huge surplus in
Santiago's favor--as compared to $30.2 million with Israel over
the same time frame. In particular, Chile is anxious to nurture
its growing arms trade with Iraq, now the leading export market
for Chile's fledgling defense industries. Because of the need
not to offend Arab sensitivities and to protect its commercial
equities, Santiago has kept its relationship with Israel low key
and focused on military and security matters, while seeking to
avoid a clear cut stand on contentious Middle East political
issues.
Military Sales
We believe that in most cases Chile has opted for Israeli
arms and equipment because of availability--Tel Aviv attaches no
political strings to its transfers--and high quality. Sales have
been dominated by advanced electronics, upgrade packages, and
sophisticated end-items such as air-to-air missiles. In
addition, Tel Aviv also provides excellent maintenance and
modification services for several of the different foreign arms
systems used by the Chilean armed forces. We have no indications
that Israel has charged Santiago anything but market price or has
provided concessionary financing for its transfers. Some of the
more important transfers and services include:
Shafrir Air-to-Air Missiles: Israel sold the Chilean Air
Force 100 missiles in 1976 and 50 more in 1980. The
Shafrir is a modern infra-red homing missile for use
against high performance aircraft.
2
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8 25X1
M-51 Sherman Tanks: The Israelis sold 150 of these
tanks--which had been almost completely rehabilitated,
including a more powerful 105 mm gun and a new engine--to
the Chilean Army in 1980.
Tank Refurbishment: The Nimda company of Israel signed
three separate contracts in 1984 to install new engines
and fire control systems on the Chilean Army's
American-made 1940s and 1950s vintage tanks.
Naval Tactical Training Center: An advanced computerized
training system that allows on-shore simulation of naval
exercises. The system was sold to Chile in 1985 and is
used at the Naval War College at Valparaiso.
Westwind 2 Aircraft: Israel sold one of these two-engine
commuter jet aircraft, used by the Israeli navy for
maritime reconnaissance, to Santiago in 198g.
Chilean
Modification of Mirage Vs:
Israel Aircraft Industries
electrical, and armament
Air Force's 15 Mirage Vs.
so far have been limited to
25X1
has modified the navigational,
control systems of the Chilean
arms exports to Israel
an undetermined
number of cluster bombs manufactured by Cardoen
Industries.
25X1
was highly
impressed with the Chilean bombs and ordered a large
shipment to be staggered over a five year period beginning in
1984. More recently, the Chief of Staff of the Chilean Air Force
queried the US Embassy in Santiago on our willingness to allow it
to sell
sixteen US produced F-5 aircraft to Israel, possibly for
retransfer
to a third party.
25X1
Recent Reports
In addition to these confirmed sales, there have been
large Chilean military 25X1
purchases from Israel. For example, it is rumored that Chile had
purchased $500 million worth of Israeli military equipment in
1987, including Sherman tanks, Pioneer remotely piloted vehicles
(RPVs), and 500 laser-guided anti-tank missiles. In November
1987, Argentine Foreign Minister Caputo provided Washington with
a list of recent Chilean acquisitions from. Israel, including
Sherman tanks, Pioneer RPVs, sundry communication and sigint
equipment, Gabriel missile launchers, and Dabur class patrol
boats. Although we doubt that many of these sales will be
consumated in the future, almost certainly reflect a 25X1
continued Chilean desire for additional and more sophisticated
Israeli material. Chile, in our view, is particularly interested
in acquiring sigint equipment and RPVs to provide better
strategic and tactical warning and reconnaissance capabilities
against Peru and Argentina. 25X1
3
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8
Other Bilateral Contacts
The bulk of the contacts between the two countries' armed
forces center around promoting sales of military equipment and
services. The Chilean military attache to Israel stated in 1986,
for example, that Israel had provided extensive tours of most of
the country's defense industries and airbases in an effort to
enlist his suipport for further arms sales to Santiago.
moreover, a second
Israeli military attache was assigned to the Israeli embassy in
Santiago in 1984 specifically to assist in military transfers.
Finally, a senior officer of the Chilean Navy visited Israel in
mid-1987, and a senior Israeli Navy officer came to Santiago in
late 1987--both were reportedly on arms transfer-related
missions.
Chile and Israel also have developed officer training
exchanges,
Israeli and
Chilean pilots occasionally fly "aggressor" missions in each
others' training exercises. According to US Defense Attache
reporting, for example, the commander of an Israeli interceptor
squadron stated in 1984 he had recently returned from three weeks
of flying with the Chilean Air Force.
Israel offered a familiarization course for three Chilean
Army officers in mechanized infantry training and doctrine in
1987.
Although the political dimension to the Chilean-Israeli
relationship is fairly limited, the countries have lent some
diplomatic support to each other in international organizations.
In 1986, for example, the Israeli Foreign Ministry assured Chile
that Tel Aviv would not back a challenge to the credentials of
the Chilean delegation to the 72nd International Labor
Organization Conference. In another show of support, the
Israelis supported Chile's World Bank Structural Adjustment Loan
in 1986. Chile, in turn, has supported Israel on a number of
votes in the UN that Tel Aviv considered vital, such as
acceptance of the Israeli delegation's credentials for the UN
General Assembly.
4
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8 25X1
Outlook
We believe that Chile will continue to maintain a close
military relationship with Israel over the near to medium term.
Chile values Israel's willingnessnd ability to sell
battle-test d military equipment,4$1odify and modernize older
items, andukovide service and training. Although the Chilean
military would prefer major Western suppliers--particularly the
UK or the US--for major weapon systems, lack of alternatives
could, in our view, eventually spur Santiago to increase its
military purchases from Israel to include big-ticket items such
as fighter aircraft and naval vessels. Santiago probably sees
little risk of angering the Arab states as long as it keeps its
ties with Tel Aviv low-key and avoids public endorsement of
Israeli policies.
Israel's primary interest in Chile is maintaining a market
for its military goods and services, and it will continue to try
to minimize the political aspects of its relationship with
Santiago. Although Israel has publicly stated its support for a
return to civilian government in Chile, Tel Aviv does not believe
that foreign pressure on the Pinochet regime is effective. In
our view, Israel--even under a Labor government--is unlikely to
jeopardize its military relationship with Santiago to support a
restoration of democracy in Chile.
5
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2'073/05/16 : CIA-RDP04T00990R000100390001-8 25X1
Israeli Arms Sales to Chile, 1975-1988
1975
1 Radar System
1976
100 Shafrir Air-to-Air Missiles
1979
2 Reshef class patrol boats with Gabriel surface to surface
missiles
Naval electronic equipment
50 KG bombs and .30 cal ammo
Electronic equipment
36 155-mm howitzers and ammo
1980
50 Shafrir air to air missiles and training
150 Super Sherman tanks
Gabriel missile launchers
Electronic equipment
1981
1 Air Search/Early Warning radar
Scan radars
Electronic equipment
5,000 Galil assault rifles
1983
Maintenance agreement for Shafrir air to air missiles
1985
Naval Tactical Training Center
Refurbishment of M-51, M-41, M-21 tanks
1986
1 Westwind-2 aircraft possibly configured for maritime
surveillance
Computer Equipment and Radar parts
Joint modifications of Mirage aircraft
1987
2 NS-9034 Electronic Support Measure (ESM) systems for submarines
Modification work on Mirage Vs
Training course on Mechanized Infantry Training and Doctrine
1988
Barak point defense antiaircraft missile system*
*
The Chileans are reported to be considering this system
for their County class destroyers.
6
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8
25X1
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8 25X1
SUBJECT: Chile: A Utilitarian Relationship with Israel
05 February 1988
Distribution:
External:
Original - Robert S. Gelbard, Deputy Assistant Secretary of State
for South American Affairs, Department of State
1 - Richard Howard, Director, Office of Southern Cone
Affairs, Department of State
1 - Robert Pastorino, Deputy Assistant Secretary of
Defense for Inter-American Affairs, Department of
Defense
1 Ludlow Flower, Director of Latin American Affairs,
National Security Council
1 - James Buchanan, Chief, South America Division,
State Department
1 - Len Kusnitz, INR/IAA, State Department
Internal:
1 - D/DCI-DDCI
1 - DDI
1 - 0/DDI,
1 - NIO/LA
1 - NIO/NESA
1 - NIC/AG
1 - PDB Staff
1 - C/PES
1 - DDI/CPAS/ILS
1 - D/ALA
2 - ALA/PS
1 - ALA Research Director
5 - CPAS/IMC/CB
1 - C/ALA/SAD
1 - DC/ALA/SAD
1 - ALA/SAD Files
1 - C/ALA/SAD/SC
2 - ALA/SAD/SC
Executive Staff
DI/ALA/SAD/SC,
25X1
25X1
(5 Feb 88) 25X1
7
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2013/05/16: CIA-RDP04T00990R000100390001-8