Cablegate: Blue Lantern Pre-License End Use Check On Licenses

VZCZCXYZ0005
OO RUEHWEB

DE RUEHBK #3256/01 3630649
ZNR UUUUU ZZH
O 290649Z DEC 09 ZDK
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9413
INFO RUEHBD/AMEMBASSY BANDAR SERI BEGAWAN IMMEDIATE 3498
RUEHHK/AMCONSUL HONG KONG IMMEDIATE 5353
RUEHIN/AIT TAIPEI IMMEDIATE 9095
RUETIAA/DIRNSA FORT GEORGE G MEADE MD IMMEDIATE
RUEAIIA/CIA WASHINGTON DC IMMEDIATE
RHMCSUU/FBI WASHINGTON DC IMMEDIATE
RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
RUCPDOC/USDOC WASHINGTON DC IMMEDIATE

UNCLAS BANGKOK 003256

SIPDIS

FOR PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC TH
SUBJECT: BLUE LANTERN PRE-LICENSE END USE CHECK ON LICENSES
050198982

REF: STATE 119190

1. (U) According to the Thai Ministry of Commerce, Itthiporn
Import Company, Ltd. was listed as follows:

Registration No. 0105528040905
Registered Date: November 25, 1985
Status: Limited Partnership
Capital Registration: 100,000,000 baht
Partners: Chirachai Techa-itthiporn, Saman Techa-itthiporn,
and Wirachai Techa-itthiporn
Company Location: 96/11-12, 102-103, Moo 3, Vipavadee Rangsit
Rd., Talad Bangkhen Sub-District, Lak Si, Bangkok
The company has submitted annual financial reports for
1999-2008.
Purpose of Company: To buy and sell motor cars

2. (U) The company was listed in the telephone directory with
three branches in Bangkok: on Vipavadee Rangsit Road, on Rom
Klao Road in Minburi District, and on Chaeng Wattana Road of
Lak Si District. The phone number of the Vipavadee Rangsit
Office is 02-551-1047(8 and 9).

4. (U) We visited December 17 the office on Vipavadee Rangsit
Road, but were asked to visit the head office on the Chaeng
Wattana Road as the Vipavadee Rangsit office is for sales and
stock only. We met Khomsan Praphathammarak, Sales Manager
and Project Manager for the Armed Forces Security Center
(AFSC) contract.

Reftel inquiries:

1) Please confirm an order for the item listed on license
050198982.

Response: Khomsan confirmed the order by showing a letter
from AFSC and a procurement contract signed by Itthiporn and
AFSC with all details concurring to those stated reftel.

2) Does the company understand the restrictions against the
unauthorized re-export or re-transfer of US-origin defense
articles?

Response: Yes. This item is for AFSC, and the company has
the commitment to deliver it to the agency, not to
re-export/re-transfer elsewhere. Khomsan acknowledged that
in case the product must be fixed it must be done either in
Thailand or in the U.S., not in a third country.

3) Does this company serve as a broker of USML articles with
any countries besides Thailand? If so, where?

Response: No, the company's clients are Thai companies or
government agencies. No foreign entities have contracted
with Itthiporn to purchase/import USML articles. Itthiporn
is primarily an importer of vehicles, as well as engines,
autos, and machinery spare parts. The import of USML
articles is a small part of its business.

4) If the company has offices abroad, where are they located?

Response: No.

- Has this company ever used any other names?

Response: No.

5) How long has the company been in the business of importing
and selling defense articles?

Response: The company was established in 1985 as an importer
of the commercial vehicles, general machinery, and various
kinds of spare parts. As far as Khomsan recalled that in his
five years of experience with the company, Itthiporn had
never imported USML articles.

6) What other products are sold by this company?

Response: As stated above.

7) How long has this company been involved in business
operations with the Government of Thailand?

Response: The company has been selling vehicles, automobiles,
engines, and spare parts to various Thai government agencies
since it was established.

5. (U) The company had approximately 250 employees. The head
office was a four story office building. The reftel item
would not be stored at the company. After arrival at the
port of entry, it would be transported directly to AFSC.
Advisor Shipping Co., Ltd. is the Itthiporn's regular contact
to handle the import and customs clearance and procedure on
the items imported by the Itthiporn. Khomsan was not aware
and could not answer why there are many 'Foreign Consignees'.
Upon winning the AFSC contract, Itthiporn contacted General
Dynamics Corp in Virginia to the purchase of the item, but
was instructed by General Dynamics to contact its Asia's
sales office, Sino Technology Co., Ltd., in Brunei.
Itthiporn then made a purchase contract with Sino Tech and
did not know how Sino Tech proceeded with the contract after
that. When the item arrived in Thailand, Advisor Shipping
will be assigned by Itthiporn to handle import and customs
clearance and to deliver the item to AFSC.

6. (U) According to the Thai Ministry of Commerce, Advisor
Shipping Company, Ltd. was listed as follows:

Registration No. 0105537119381
Registered Date: October 5, 1994
Status: Limited Partnership
Capital Registration: 1,000,000
Partners: Kittiphong Angsawaphimon, Sirirat Angsawaphimon,
Banchop Chaowai, and Issari Imsombun
Company Location: 36/3, Soi Pracha Songkhro 33 (Thawi
Choetchu), Pracha Songkhro Rd., Din Daeng Sub-District, Din
Daeng, Bangkok
The company has submitted annual financial reports for
1999-2008.
Purpose of Company: To provide sea and air import services.

7. (U) The company was listed in the telephone directory and
the phone numbers are 02-692-0883 (4 and 5) was confirmed per
reftel.

8. (U) We visited Advisor Shipping December 17 and met
Kittiphong Angsawaphimon Executives.

1) Please confirm an order for the item listed on license
050198982.

Response: Kittiphong could not confirm the order as his
company has not yet been assigned by the Itthiporn to handle
it. His office is a shipping company that is contracted by
Itthiporn to perform import and customs clearance.

2) Does the company understand the restrictions against the
unauthorized re-export or re-transfer of US-origin defense
articles?

Response: Kittiphong was not aware of this regulation since
his company only performs shipping procedures and customs
clearance. However, according to Kittiphong, products
imported by Itthiporn are always for use inside Thailand.

3) Does this company serve as a broker of USML articles with
any countries besides Thailand? If so, where?

Response: No. Advisor Shipping only does business with Thai
companies. It had never been contracted by foreign companies
or agencies to handle the shipping tasks or the USML.

4) If the company has offices abroad, where are they located?

Response: No offices abroad.

5) Has this company ever used any other names?

Response: No.

6) How long has the company been in the business of importing
and selling defense articles? What other products are sold by
this company?

Response: Not applicable.

7) How long has this company been involved in business
operations with the Government of Thailand?

Response: All of clients are private companies.

9. (U) We visited AFSC December 17 and met Wing Commander
Sunisa Thongchia of the AFSC's Division 6, which is
responsible for this project.

1) Please confirm an order for the item listed on license
050198982.

Response: Sunisa confirmed the order as AFSC had contracted
Itthiporn to purchase and import the listed equipment for the
AFSC's official mission.

2) Does the agency understand the restrictions against the
unauthorized re-export or re-transfer of US-origin defense
articles?

Response: Yes, AFSC Division 6 will be the end user of this
item.

3) What is the purpose of use of this USML articles? Where
will it be located/installed?

Response: The item will be used for the Thai military's
nationwide communications via satellite. It will be
installed at the AFSC compound in Bangkok.

4) Why does this purchase of USML articles pass through many
foreign consignees (Brunei, Hong Kong, Taiwan, and Thailand)?
Please verify/explain the role (s of all foreign parties
involved in this transaction.

Response: Sunisa could not explain as it was a matter between
the Itthiporn and the foreign manufacturer and sales office.
AFSC only deals with Itthiporn.

5) Is there any other Thailand-based firm involved in the
procurement of this item?

Response: No.

6) How long this agency has been in business with all listed
companies?

Response: This was the first time AFSC Division 6 had
contracted with Itthiporn.
JOHN

© Scoop Media