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

UNCLAS BANGKOK 001654 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 050098466 REF: STATE 41098 ¶1. (U) According to the Thai Ministry of Commerce, Hollywood International Co., Ltd. is listed: Registration No. 0105525023104 Registered Date: June 30, 1982 Status: Company Limited Capital Registration: 81,000,000 baht Executives: Thirawut Tantiwongsakit, Arunee Tantiwongsakit, Atchara Rinchokechai, Anirut Tantiwongsakit, and Anuwat Tantiwongsakit. Authorized executive members for legal commitments: Any executive. Company Location: 501/4-8 2nd Floor, Phetchaburi Road, Phaya Thai Sub-District, Ratchatewi, Bangkok. The company has submitted annual financial reports for 1999-2006. Purpose of Company: Sales and service of equipment and scientific instruments and materials. ¶2. (U) The company's phone number as stated reftel was confirmed by the phone directory. ¶3. (U) POL FSN May 14 met Songchai Chipprakit, Senior Product Manager, Hollywood International Co., Ltd., also the principal administrator of Defentec Ltd, the Hollywood International Co. Ltd. subsidiary that is responsible for this purchase. The location of the company was confirmed as stated in the cable. It is four-story, shop house building located on a busy street in Bangkok. ¶4. (U) Questions per reftel: Questions: Does the company have proper supporting documentation, including purchase orders from the Thailand MOD, for this proposed transaction? Response: Yes; however, Songchai was unable to provide the related documents on the day of visit, citing the absence of the responsible manager for this contract. Hollywood International May 28 provided: - Purchase Order No. EL-08-01 from Atchara Tang, Hollywood International to Electrophysics dated March 18, 2008. - Non-transfer and end-use certificate (DSP 83) signed by Atchara Rinchokechai, Hollywood International, dated April 2, 2008 and counter signed by Lt. Gen. Tanasak Patimapragorn, dated April 9, 2008. - End-use Application and Security Statement from Counter Terrorist Operations Center (CTOC),Royal Thai Supreme Command Headquarters, signed by Lt. Gen. Tanasak Dated April 9, 2008. - Procurement Contract signed between CTOC and Hollywood International. All documents appear legitimate. Question: Will the company be handling or storing the items listed on the application? If so, does it have secure facilities and proper accounting and security procedures for handling these sensitive USML items? Response: The company will be handling the equipment's import and customs documentation and clearance. The equipment will not be stored at the company, but be delivered directly from the airport to CTOC. Question: Will the company deliver simply these image intensifier tubes to the Royal Thai Supreme Command Headquarters Counter Terrorist Operations Center, or will the tubes first be integrated into a night vision system? If so, who will perform the integration? Response: The company will simply deliver the equipment to the CTOC as it is. The equipment will later be integrated/assembled with the VDO system 'Canon XL 2' imported from Japan, at CTOC, by CTOC and the Hollywood International technicians. Hollywood International will also purchase and import the VDO system. Question: When was the company established and who are its principals? Response: The company was established in 1967, originally as the Hollywood Optical Co., Ltd. It later expanded the scope of business and became Hollywood International Co., Ltd, in June 1982. Songchai confirmed the accuracy of information in the Commercial/Business Registration listed above. Question: What is the nature of its business--what types of items does it handle, does it serve as a broker? Response: It is trading company with 200 some employees. The primary businesses is the import and export of various products, business consulting, and sales. Hollywood International Co., Ltd. has three subsidiary companies: - Global Instech Co., Ltd, - Defentec Co., Ltd., and - Hollywood Optical Co., Ltd. Lines of business include: - Spectacles Division (since 1967) - Medical/Ophthalmic Instruments Division (since 1975) - Scientific Instruments Division (since 1979) - Industrial Instruments Division (since 1985) - Surveying Instruments Division (since 1987) - Business Development Division (since 1995, supervised by Global Instech),and - Military and Police Products Division (since 1996, supervised by Defentec) The company's counterpart trading countries are in Japan, U.S., France, England, Singapore, Italy, Germany, and Canada. Question: What types of organizations are among its typical customers and where are the customers located? Response: The company's customers include civil government agencies, private companies, individuals, hospitals, education institutions, industry factories, computer factories, airlines, airports, police and military agencies, the Bangkok Metropolitan government, and more. They are located throughout Thailand. Question: Does the company understand the restrictions on United States Munitions List (USML) items, especially the prohibition against unauthorized re-transfers and re-exports? Response: Yes. ¶5. (U) POL FSN May 20 visited the Royal Thai Supreme Command Headquarters' Counter Terrorist Operations Center. CTOC is a newly established coordinating military agency under supervision of the Supreme Command. It was established in 2006 and 2007. POL FSN met Col. Prasoet, Chief of Procurement and General Services Question: Are you familiar with Hollywood International Ltd.? Response: Yes, it is a trading company that routinely bids on the procurement programs of the Royal Thai Armed Forces. Question: Did you order from Hollywood International Ltd., the exact type and quantity of items listed on this application? Response: Yes, Contract No. 27/2551, dated February 29, 2008, signed between the CTOC and the Hollywood International. Prasoet presented the contract, labeled top secret, which indicated that two sets of night vision, Astroscope TM were ordered. Attached details describe the order 9350C1U-3F, as stated reftel. Prasoet also presented copies of Form DSP-83, signed by Lt. Gen. Tanasak and Atchara from Hollywood International, and the End-Use Application and Security Statement, signed by Tanasak. Question: Will these image intensifier tubes be integrated into a large night vision system? If so, which system, and who will perform the integration? Response: Yes, the tubes will be integrated into the larger camera system, to be purchased separately, namely, "Nikon Field Scope ED 82-Japan", "Canon EOS5D-Japan", and "Night Vision System, Eyeball, ODS-Israel". Prasoet stated that Hollywood International would complete integration. Question: Is Hollywood International, Ltd., an official supplier/contractor for the Thailand MoD? Response: Yes. Question: Does the Thailand MOD have any other contracts with the company? Response: Yes, per CTOC Contract Control Logbook, at least ten other contracts with CTOC. JOHN