Chile's long-term modernisation strategy for its armed forces - highlighted by last year's fighter deal for Lockheed Martin F-16s - is stoking new warnings of an arms race in the region.
By the end of the decade, Chile plans to boost dramatically its military capability. A planned inventory of 10 F-16s to be delivered from 2006 could be expanded to more than 20 a few years later. The Chilean army's transport helicopters are due to be replaced within 10 years, and new requirements for gunships and search-and-rescue aircraft are emerging. The navy, meanwhile, plans to buy a former UK dest- royer and two ex-Dutch frigates.
But several neighbours, particularly Peru, are wary of the Chilean modernisation. In January, Peruvian defence minister Roberto Chiabra, citing the F-16 fleet as an example, said Chile's weapons purchases were creating an imbalance in regional military capabilities. Peru's own modernisation plan failed after a fleet of RSK MiG MiG-29s and Sukhoi Su-25s purchased from Belarus in 2000 became inoperable due to a lack of spare parts and sustainment support.
But Chiabra's statements have reopened a debate in the region about Chile's strategic aims. A summit meeting between Chilean and Peruvian diplomats is planned for mid-April.
Lockheed Martin is "well into production" of the first Chilean Block 50 F-16, says programme director John Balderston. Assembly is under way, mating together the aircraft's forward, centre and aft sections. The company is writing the software code for the mission computer, which is adapted to incorporate the Rafael Python 4 air-to-air missile. Chile had opted for General Electric F110-129 engine instead of the Pratt & Whitney F100.
Lockheed Martin finalised a $320 million foreign military sales contract for the new F-16 fleet last May. An offset package dispute delayed the final contract award for nearly 15 months.
Production is on track to begin the first aircraft deliveries for operational testing at Edwards AFB in California at the end of this year, says Balderston. Chile is due to begin receiving theF-16s in 2006 after a flight-test programme running from mid-August 2005 to February 2006.
The air force's original plan was to buy 24 fighters, but follow-on orders are unlikely to proceed for several years without a major reform of the so-called "Copper Law". Each year, a portion of the country's copper revenues are evenly distributed among the three armed services and used to finance weapons spending.
The law allows the army, navy and air force to count on a steady annual cashflow, but prevents the military from allocating its arms budget strictly according to needed capabilities. Thus, large spending programmes like the F-16 can consume one service's weapons budget for several years.
Proposed reforms that would increase flexibility are not expected to be seriously considered for at least a few years, or perhaps when a follow-on F-16 order is needed in 2006. "The issue comes up every time there's a new arms programme," notes an industry source. Until then, defence industry observers are focusing on emerging needs for F-16-carried weapons, such as the Boeing Joint Direct Attack Munition and the AGM-84 Harpoon anti-ship missile.
The defence sector is tracking a potential modernisation plan for the Chilean armed service's helicopters. An air force procurement for a medium-lift transport has so far led to purchases of six used Bell UH-1Hs from the USA and four used Bell 412s, which needed a major overhaul. The army is considering buying up to 20 Mil Mi-17s. A long-term modernisation plan for attack and transport helicopters is expected to be launched in 2010. The gunship has attracted interest in the Bell AH-1W Cobra, or the Eurocopter AS555 Fennec as a combined gunship/transport. The navy is looking to replace its Bell 206s with four used Bell 412EPs for patrol duties.
STEPHEN TRIMBLE / WASHINGTON DC
Source: Flight International
