On April 10, 1994, at 0830 local ship time, a Schweizer 300C helicopter, N60718, sustained substantial damage during an autorotative forced water landing in international waters near Chuuk Island in the Federated States of Micronesia. The helicopter was owned by Trans Global Products, Inc., and was operated by the Fong Seong Fishing Group. The pilot and his observer were on an aerial observation flight under 14 CFR Part 91 of Federal Aviation Regulations. Visual meteorological conditions were prevalent at the time and no flight plan had been filed for the operation. Neither the certificated commercial pilot nor his observer were injured. The flight originated from the deck of the ship Fong Seong No. 777 at 0755 on the day of the mishap as a local fish spotting mission. In a written statement, the pilot reported that he was 35 minutes into the flight at an altitude of 1,600 msl and 70 knots airspeed when he "heard something wrong with the engine." He then turned his helicopter in the direction of his ship and began an approach to the water. The pilot radioed his mechanic on board the ship to inform him of the emergency. At the same time, the observer radioed the ship's captain giving him the same information. The pilot stated that the engine performance continued to deteriorate during the descent. At an altitude between 350 and 400 feet at an airspeed of 50-to- 60 knots, the engine failed completely and the nose of the helicopter yawed left. At that point in the descent, the pilot initiated an autorotation and turned left into the wind. Approximately 30 seconds after the first indication of an engine problem, the pilot autorotated into the water and touched down hard. The pilot stated that he landed hard because of the "high density altitude conditions, no wind conditions, low altitude where the engine actually failed and quit." The pilot also stated that the sun's reflection on the water "created some illusions which made it difficult to visually establish the distance from the water, the speed, and the rate of descent." The nature of the engine problem was not reported by the operator.