Letter from Vitalii Kataev to General Director S. V. Mikheyev of the Kamov Firm regarding South Korean Purchase of Helicopters

K-192

20 December 1995

Fax [Nr.]: 700 30 71

TO S. V. MIKHEYEV,

GENERAL DESIGNER [AND]

PRESIDENT OF THE KAMOV FIRM

Dear Sergey Viktorovich!

I am sending you the proposals of the South Korean firm (attached). I think they will interest you.

1. The following information was given in conversation in addition:

The discussion is about a 4-6 seat helicopter for local communications in mountainous terrain and for communication between islands - what an air microbus.

The question of a tropical version [ispolnenie] has not been raised for the time being.

The Koreans are forecasting the sale of a minimum of 200 craft.

Begin in Korea with the assembly from components supplied from Russia at a plant adapted for these purposes. To begin with, the avionics are ours.

They hope that our helicopter will be cheaper than the American alternative in prime cost and operating expenses.

If it works out they intend to build a new plant for our development as a 50 x 50 joint venture [na pravakh SP, presumably sovmestnoe predpriyatie] (a SP [was] already possible from the very beginning).

The firm is not large, but sufficiently solvent; they are planning to demonstrate this, inviting pool participants to the site (all the large firms are under US control, and in this case the Americans will throw a monkey wrench into the works).

I sent this proposal of the Korean side to B. Ye. Malyshev for study on 16 December 1995 after prior agreement with him. This proposal has not yet been discussed with other Russian enterprises.

2. The representative of the Koreans plans to fly to Korea on 24 December of this year and is asking he be given advertising material for the helicopter for discussion (and also for a/the [fixed-wing] aircraft [samolet] if it is available) and also to phrase our counter-offers in broad terms.

I am ready to meet for a conversation in case you are interested.

Sincerely, V. L. Katayev

General Director