In a highly sensitive area, Chilean Defence and Armed Forces, rich in resources from copper windfall prices, have a political and strategic problem in their hands with the decommissioning of 200 Leopard 1 tanks to be replaced by 140 Leopard 2, purchased from Germany.
The decommissioned equipment could be resold in the area to allies, kept mothballed or dismantled for repairs, among other options. However whatever is decided in the coming months political and strategic considerations will have the most weight. But Chilean Armed Forces still have 3 billion US dollars in funds, from copper windfall earnings (established in Chilean law for re-equipment), and have plans for some extra shopping, possibly naval aircrafts for patrolling the country's long coastline, anti submarine aircrafts, deep sea sonar, early warning naval radar systems, helicopters and possibly infantry light armoured vehicles. According to Sweden's International Peace Research Institute from Stockholm, Chile is the second importer of weapons in Latinamerica having spent last year 615 million US dollars, which obviously generates unease among neighbours. In the last ten years Chile purchased two new Scorpion submarines from France and Spain; 350 Leopard 1 and Leopard 2 tanks; 28 F-16 new and refurbished fighter bombers from the US and Holland and eight refurbished frigates from Holland and UK. More recently Chile acquired 100 Marder combat vehicles from Germany; 12 Bell 412 helicopters from the US; three maritime patrol aircrafts CASA C-295 from Spain; ten Super Puma AS535 helicopters and 12 turbo attack and training aircrafts, Super Tucano from Brazil. Summing up since the return of democracy, between 1990 and 2010, Chile would have gone through one of its major arms and equipment appropriations periods, having spent billions of US dollars.
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