BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON

UNCLAS BANGKOK 000290 SIPDIS SIPDIS PM/DTTC FOR MROMERO E.O. 12958: N/A TAGS: ETTC KOMC TH SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 05-0500022543 REF: SECSTATE 198160 ¶1. According to the Ministry of Commerce, Department of Business Development, Paisith Firearms Ltd, Partnership is registered as follows: Registration Number 0103514004691 Registered on 23 March 1971 as a limited Partnership Name: Paisith Firearms Ltd., Partnership Capital Registration: 60,000 baht Business partners: Ms. Vassana Tiprak, Mr. Sattha Nucharoenkul, Mr. Suphot Chamraschai. Location: 26 Subsin Road, Wang Burapha Phirom Sub-District, Phra Nakhon District, Bangkok. The company has submitted annual financial reports for 1999-2005. ¶2. According to the Telephone Directory Center, Paisith Firearms Ltd., Partnership is listed as outlined in reftel. ¶3. On December 19, 2006, POL FSN made an unannounced visit to the firm. It is located in a four story concrete building in a section of Bangkok where many other gun shops can be found. POL FSN met with Mr. Sattha Nucharoenkul and Ms. Vassana Tiprak, manager of the firm. Ms Vassana answered the questions contained in reftel as follows: Can you confirm the order under license 05-050022543? Yes, although Mr. Sattha denied that the guns in question are called "M 40." According to him, they are Model 700 bolt action rifles using .308 and .223 bullets. Our interlocutors confirmed an order of 15 rifles, 4 using .223 bullets and 11 using .308. Mr. Sattha presented a Permit for Import of Firearms issued by Mr. Withaya Kamom, the Registrar of Muang Nakhon Ratchasima District of Nakhon Ratchasima Province -- a state located in NE Thailand. The permit is numbered 10/2549, dated October 5, 2006, valid until October 4, 2007, allowing the import of "11 rifles, size 308 and 4 rifles size 223 from the USA." However, the original licensee named in this permit is "Mr. Thaweesak Limprayoonsawat," a Thai national, age 69, residing at 3/3-3/4 Nai Muang Sub-District, Mittraphap Road, Muang Nakhon Ratchasima District, Nakhon Ratchasima Province. According to our sources, Mr. Thaweesak owns his own gun shop but authorized Paisith to import this lot of weapons on his behalf. This authorization was approved by Mr. Withaya, the Registrar mentioned above. The employees also presented copies of the English translation of the Import Permit, signed by the District Registrar, dated October 5, 2006 together with the Paisith Firearms Purchase Order signed by Ms. Vassana, Ref. D 102/06 - RM, dated October 30, 2006. They could not produce a copy of the DSP-83, non-transfer and use certificate, signed by Ms. Vassana and Ms. Karen Johnson of ICSR, dated November 30, 2006 described in reftel. Who will be the specific end-users of these commercial sniper rifles? Mostly private gun collectors -- in rare cases they are sold to law enforcement officials. In Thailand, a person wishing to procure a gun must obtain a permit from the Department of Provincial Administration (in Bangkok) or from the District Office Chief (outside Bangkok). Foreign nationals are not allowed to purchase a firearm in Thailand without a special permit issued by the Department of Provincial Administration. Does Paisith maintain detailed records of all customers? Yes. They maintain a hard-cover ledger with customers' names, addresses, ID card numbers and descriptions of the guns purchased. This ledger is subject to inspection by government officials. The customer's data is also maintained by the Department of Provincial Administration. Where will the rifles be stored prior to resale? The lot will be stored at Paisith's office in Bangkok -- not transported to the licensee in Nakhon Ratchasima. Paisith has steel safes on the ground floor and second floor of it's office in Bangkok. The shop does not have CCTV or a guard. The shop's front glass window does not have bars. Can you confirm the security of the items in your inventory? Yes. Mr. Sattha presented a copy of his ledger containing the gun inventory outlined in reftel. How long has Paisith been in business and who are the principal officers? It has been in business since March 1971. Mr. Sattha and Ms. Vassana are the principal officers. Paisith has no branch facilities. Who are your regular customers and where do they reside? Most clients are private citizens who live upcountry, outside Bangkok. Some civil servants and law enforcement officials occasionally procure weapons from Paisith. Are you familiar with the restrictions governing the import of U.S.-origin defense articles, in particular, the prohibition of unauthorized re-export? Yes. In addition, Thai law prohibits any gun shop from re-exporting imported firearms. Paisith does not sell to foreign nationals. ¶4. On December 19, POL FSN met with Chief Kittiphong Yot-aphikun of the Department of Provincial Administration's section of Firearms and Explosive Devices who addressed other questions raised in reftel: Can you confirm that Paisith carries all necessary permits to import and sell firearms. Yes. DPA has licensed Paisith (Permit number 229/2548) to import and sell firearms. The current permit is valid until January 22, 2007. Does the Government of Thailand have concerns regarding the import of the commercial version of the M40 Sniper Rifle, as ordered by Paisith Firearms under license 05-050022543? No. Interior Ministry Regulation No. 11 (issued in 1979),a part of the Firearm, Ammunition, Explosive Articles, Fireworks, and Firearm Imitation Article Act of 1947 provides that a rifle with an unrifled barrel of not greater than 20 mm is legal. However, the officials interviewed looked uncertain when asked how large the caliber of these rifles was or their power. They noted that these types of weapons are imported regularly into Thailand and are used for hunting. The regulation mentioned above does not mention or prohibit a specific size of ammunition to be used, it simply prohibits the importation of bullets containing dangerous chemical, poisonous, biological or radioactive substances or armor piercing ammunition. Is this a legal import under Thai law? Yes. ¶5. On January 4-5, POL FSN contacted Ms. Phanthip of Muang Nakhon Ratchasima's Registration section who confirmed the accuracy of the gun import permit issued to Mr. Thaweesak's gun shop doing business as "Suthin Firearms Ltd." She confirmed Mr. Thaweesak's gun shop has a valid shop permit (No 312/2549) and Sales Permit (No. 2/2549) both dated July 17, 2006 and valid until July 16, 2007. Her office also approved the authorization allowing Paisith to import the weapons on behalf of Mr. Thaweesak. Phone calls to the Nakhon Ratchasima Provincial Administration Section's Organization Registration Section confirmed the commercial registration of "Suthin Firearms, Ltd" number O.6683 and commercial registration No. 6714/2533 dated September 13, ¶1990. BOYCE