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