Fireman try to reach a crashed helicopter in Panama City May 29, 2008. (Xinhua/Reuters Photo)
Paramedics have been assisting an unspecified number of injured people, who were shopping nearby when the crash happened.
The authorities have cordoned off the affected area which extends to about three blocks.
The Chilean government has decreed three days of national mourning and lowered flags to half-mast.
"The government deeply laments the death of a loyal collaborator in the combat against crime and in keeping the security of the country," said Chilean Interior Minister Edmundo Perez Yoma.
Chilean President Michelle Bachelete had decided to suspend her tour of northern Chile and return to Santiago to join the mourning.
(Xinhua News Agency May 30, 2008)
