BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK

UNCLAS BANGKOK 001003

SIPDIS

SIPDIS

PM/DTTC FOR BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC TH
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK
ON LICENSE 05050091433

REF: STATE 21872


1. (U) According to the Thai Ministry of Commerce, Yip In
Tsoi & Jacks Co., Ltd. was registered as follows:

SIPDIS

Registration: 0105510002718
Registered Date: June 27, 1967
Status: Company Limited
Capital Registration: 100,000,000 baht
Executives: Thienchai Lailoet, Morakot Yip In Tsoi, Aphichai
Anukun-amphal, Phayom Chiraphutthirak, Suwit Chienprasoetkun,
Sit Achalakun, Sukri Kaewcharoen, Yupphathat Yip In Tsoi,
Suphak Lailoet, and Sutharat Phoemsap.
Authorized executive members for legal commitments: Thienchai
Lailoet, Morakot Yip In Tsoi, Phayom Chiraphutthirak, Mr.
Yupphathat Yip In Tsoi, Suphak Lailoet, and Sutharat
Phoemsap.
Company Location: 523 Maha Phruttharam Rd., Maha Phruttharam
Sub-District, Bang Rak, Bangkok.
The company has submitted annual financial reports for
1999-2007.
Purpose of Company: To produce fertilizer.


2. (U) The company's phone number 02-353-8600 was registered
under the name of its parent company, Yip In Tsoi Co., Ltd.
The company's fax number 02-353-8686 was working, but there
is no subscriber information for that number.


3. (U) POL FSN March 25 met with Thawatchal Akaradechdecha,
Assistant Vice President for Marketing, Engineering Division.
Thawatchal provided End-Use/End-User Statement No. 603851
and YIT & J Indent No. 603851-2007. The company was located
on the compound of the Yip In Tsoi Co., Ltd. as it was a
sub-company of the YIT Group of Companies. The YIT compound
consisted of two to three story buildings in a busy business
area of Bangkok. Security was provided by unarmed guards,
closed-circuit television (CCTV),and a fire prevention
detection system. YIT & J had over two hundred employees
with thirty in the Engineering Division. The company's
warehouse where the equipment would be stored was located on
the ground floor of one the buildings. It appeared
well-protected with CCTV, a fire prevention system, and
multiple doors with locks.


4. (U) Thawatchal confirmed that the purchase of the reftel
equipment would be used to test the communication systems of
the airplanes.

Question: How long has your company been in the business of
importing and selling defense articles?

Response: The company was established in 1967 but its parent
company has been in Thailand for 80 years. YIT has been in
business of importing and selling defense articles for over
20 years.

Question: What other products are sold by your company?

Response: Communications, electronics, electronic software,
gauges and relays, CCTV, avionic equipment, and other
equipment from United Kingdom, German, France, and the U.S.

Question: Are you familiar with the restrictions against the
unauthorized re-export or retransfer of US-origin defense
articles?

Response: Yes. Thawatchal committed to repeating this
restriction at the company's next executive meeting.

Question: Who are your regular customers and where are they
located?

Response: The Royal Thai Armed Forces - particularly the
Communication Corps, private companies, the Airports
Authority of Thailand, and the Aeronautical Radio of
Thailand. Customers are located nationwide, primarily in
Bangkok.


5. (U) According to the Thai Ministry of Commerce,
Aerotechnic Aviation Services (Thailand) Co., Ltd. was
registered as follows:

Registration: 0105546034245
Registered Date: March 18, 2003
Status: Company Limited
Capital Registration: 20,000,000 baht
Executives: Kajohnsak Watanangura and Manfred Maximilian
Gerhard Karge, a German national. Either executive can make
legal commitments with the company's seal.

Company Location: 174/60-61, Moo 9, Viphawadi Rangsit Rd.,
Sikan Sub-District, Don Muang, Bangkok.
The company has submitted annual financial reports for
1999-2006.
Purpose of Company: To rent all types of airplanes.


6. (U) The company was listed in the telephone directory
under the location of Tambon Bung, Amphoe Siracha, Chonburi.
The phone numbers are: 038-484-062 and 038-482-913. The
phone number 02-996-7060 was listed as a confidential number.
The company's fax number 02-996-7327 worked.


7. (U) POL FSN met March 25 with Kajohnsak Watanangura,
Managing-Director, Aerotechnic Aviation Services (Thailand)
Co., Ltd. The company was located in a four-story shop house
along a main highway. There was no security guard or CCTV.
The building was accessed via a key card and combination lock
system. It shared space with its sister company, AVIA Satcom
Co., Ltd. Another sister company, APAC Solutions Co., Ltd.,
was located nearby. The company had approximately ten
employees, two of which are German engineers.


8. (U) Kajohnsak provided reftel End-Use/End-User Statement
No. 603851 and YIT & J Indent No. 603851-2007. Kajohnsak
also provided the Aerotechnic's Purchase Order to Yip In Tsoi
& Jacks, No. A-2007-043, dated December 4, 2007, and a
receipt from YIT & J to his company, No. 1N08-005694, dated
January 1, 2008, on 30 percent of down payment for this
equipment.
All equipment would be stored at the company's field
office/air hangar at the Sahaphat Industrial Park, Tambon
Bung, Amphoe Siracha, Chonburi.


9. (U) (U) Kajohnsak confirmed the purchase of reftel
equipment that would be used at the company's field office in
Chonburi for aero communication system's testing and
inspection

Question: How long has your company been in the business of
importing and selling defense articles?

Response: Approximately three years, after the company was
contracted to repair or install the communication and avionic
system of airplanes using U.S. equipment. The company had
received operational privileges from Thailand's Board of
Investment since December 2003 and has had a DCA Repair
Station Certificate from the Department of Civil Aviation,
Thailand's Ministry of Transportation, since December 2003,
renewable every three years. Beside products from the US,
the company also purchases equipment from European countries.

Question: Are you familiar with the restrictions against the
unauthorized re-export or retransfer of US-origin defense
articles?

Response: Yes.

Question: How long has your company done business with Yip In
Tsoi & Jacks Ltd.? In what capacity?

SIPDIS

Response: For approximately three years after the company
started to purchase U.S. products. YIT & J was one of the
U.S. product representatives that the company utilizes.

Question: What business relationship, if any, does your
company have with the Royal Thai Government?

Response: The company has done business with the RTG as a
bidder on government or armed forces aero maintenance or
installation projects. State customers include the Royal
Thai Navy, Ministry of Agriculture and Cooperatives, the
Bureau of Royal Rain-Making, and the Agricultural Aviation
Division.
JOHN