THAILAND TO DIVERSIFY FIGHTER JET INVENTORY

C O N F I D E N T I A L BANGKOK 005504

SIPDIS

SIPDIS

E.O. 12958: DECL: 10/19/2017
TAGS: MARR MCAP PGOV PREL TH
SUBJECT: THAILAND TO DIVERSIFY FIGHTER JET INVENTORY

Classified By: Ambassador Ralph L. Boyce, reasons 1.4 (b)
and (d)


1. (C) Summary. The Royal Thai Air Force (RTAF) this week
decided to purchase SAAB Gripen fighter planes to replace
aging F-5 aircraft. The decision to purchase the Gripens,
and not F-16s, was publicly justified by the RTAF due to an
urgent need to replace the F-5s and by pointing to U.S.
post-coup sanctions as prohibiting F-16 purchases by the RTG.
The Ambassador called Ministry of Foreign Affairs (MFA)
Permanent Secretary Virasakdi Futrakul to clarify U.S.
policy. End Summary.

THAI TO FLY GRIPEN
--------------


2. (U) The Royal Thai Air Force (RTAF) Commander-in-Chief Air
Chief Marshall (ACM) Chalit Phukphasuk October 17 publicly
announced plans to buy twelve JAS-39 Gripen fighter jets from
Sweden's SAAB to replace aging F-5E aircraft. Chalit said
the RTAF would purchase the first lot of six Gripens and a
SAAB S-1000 Erieye Airborne Early Warning aircraft by 2011,
with a second lot of the same composition of aircraft by

2017. The projected purchase price is 34.4 billion baht or
approximately one billion US dollars. The RTAF has been
seeking a replacement for F-5 aircraft since 2004 with the
Lockheed F-16 and the Sukhoi Su-30 also in consideration.

RTAF FUTURE PLANS
--------------


3. (C) Post understands that the Gripen can carry several
U.S. munitions currently in the RTAF inventory including
air-to-air missiles and precision guided munitions. The
Gripen can also utilize weapons from Israel, South Africa and
Europe. We anticipate future RTAF purchases of new fighter
jets or a Mid-Life Update (MLU) update of existing F-16s.


4. (C) We understand that the USAF will soon deliver updated
MLU pricing for F-16s but Post has received indications from
the RTAF that, after the decision to purchase Gripens, there
will likely be less money available for a MLU or other
purchases. We have also heard that the RTAF may seek an
inexpensive upgrade for their F-16s, which could include
offers by Israeli firms.

RTAF PERCEPTIONS
--------------


5. (C) After the decision to purchase Gripens, Thai press
reported RTAF sources as saying post-coup sanctions
prohibited Thailand from purchasing F-16s. The Ambassador
called Ministry of Foreign Affairs (MFA) Permanent Secretary
Virasakdi Futrakul October 18 to clarify that the U.S. had
not imposed sanctions specifically targeting F-16s and to
push the RTG to rectify these reports. Virasakdi committed
to devise a plan for the RTG to correct the inaccurate
reports. We have also provided correct information to
journalists who have queried us.


6. (C) Press reports quote ACM Chalit as defending the deal
by saying that Thailand urgently needs to replace F-5
fighters and by depicting a time consuming process to
purchase F-16s. In discussion with Post, RTAF sources have
alluded to a delay in an avionics upgrade for Thai C-130s and
frustration with slow turnaround on third party transfers for
U.S.-sourced defense articles as contributing factors to the
perception that purchasing from the U.S. is a slow process.

COMMENT
--------------


7. (C) We believe the best response to the decision is to
focus on future RTAF modernization requirements in order to
encourage consideration of U.S. military equipment, including
for the Gripen. In addition, there is a possibility that the
deal might not go through. The Royal Thai Army's recent
decision to purchase Ukrainian armored personnel carriers has
been blocked by the Defense Ministry due to questions raised
within the Ministry and by the Office of the Auditor-General
about the bidding process and suitability of the vehicles.
We believe that attempting to overturn the RTAF decision
would backfire; a less confrontational approach will keep us
better positioned for the long term.
BOYCE