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