BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON

UNCLAS BANGKOK 001896 SIPDIS PM/DTTC FOR BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC TH SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050101174 REF: STATE 50053 ¶1. (U) According to the Thai Ministry of Commerce, Laser Research Co., Ltd. was listed. Registration No. 0105536079904 Registered Date: July 12, 1993 Status: Company Limited Capital Registration: 2,000,000 baht Executives: Kriangdech Prasong and Duangsamon Thongsidaeng. Authorized executive members for legal commitments: Any executive. Company Location: 159/12, Muban Phromsuk, Soi Trai Rattanaram, Ramintra Rd., Anusaowari Sub-District, Bangkhen, Bangkok. The company has submitted annual financial reports for 1999-2007. Purpose of Company: To service and maintain computer equipment. ¶2. (U) The company's phone number as stated reftel was confirmed by phone directory. The fax number was registered under a private name of Phirasak Khruaphet, under the same address. The company's address was confirmed as 159/12, the Phrom Suk Housing Estate, Soi Trai Rattanaram, Ramintra Rd. (Soi 8),Anusaowari Sub-District, Bang Khen, Bangkok 10220 ¶3. (U) When POL FSN first visited the address provided reftel and discovered it to be an ordinary residential house in a housing estate project without any business operation. No one answered at the address. POL FSN visited again in a pre-arranged meeting and met Kriangdech Prasong and Phirasak Khruaphet, a part-time staff. ¶4. (U) Questions per Reftel: Question: Does the company have proper supporting documentation, from the National Science Agency of Thailand for this proposed transaction? Response: Yes. Kriangdech presented copies of - The proposed price quote for Laser Rangefinder Receiver Module 759 to Capt. Sahaphong Khruaphet, Royal Thai Navy (RTN),Military Research and Development Center, No. LR211/51, dated April 1, 2008. This was on a plain sheet of paper without a signature or the company seal. - The purchase order for the said Laser Rangefinder Receiver, No. RBD-1-2551, dated Apr. 10, 2008, from Laser Research, with signature and company seal but without the addressee company. - Genetron Engineering Corporation Pte. Ltd.'s price quotation No. QS/23/0408, dated April 10, 2008, to Laser Research and Capt. Sahaphong, RTN. - The Laser Research's statement, dated April 11, 2008, with signature and company's seal, with intention in lieu of �00A;end-user statement. Kriangdech admitted that he did not know of the DSP-83 End-User Form and had not signed one. He said the items would be used in a laser research project at the National Science Agency of Thailand that would be led by Capt. Sahaphong Khruaphet of the Royal Thai Navy. Question: When did it first establish a relationship with the Agency? Response: In 2002 or 2003. The company trades, imports, and provides service. It sought to purchase and service orders from state agencies. For this purchase, the company contracted with Capt. Sahaphong directly, not with the Agency. Kriangdech and Phirasak admitted that Sahaphong was their relative. Question: Does the company have relationships with any other Thai government agencies? Response: Yes, with the Army Engineering Corp - Ratchaburi, Asian University - Pathumthani, and Ubon Ratchathani University. Question: Will the company be handling or storing the items listed on the application? If so, does it have secure facility and proper accounting and security procedures for handling these sensitive USML items? Response: The items would be shipped to the company by FedEx. They may be stored at the company for a short period (not more than 7 days) pending delivery to the research team. Kriangdech added that only the Hybrid Eyesafe Laser Rangefinder Receiver Model 759 was equipment. The Application Note for Model 759 and Test Data Sheet for Model 759 are the accompanying paper documents. Since the company was located in an ordinary small living house, there was no security guard. There was no fire or security system. The items would be stored in a locked iron cabinet in the living room of the house. Question: When was the company established and who are its principals? Response: The company has been set up since 1993. All company info were confirmed as stated in Para 1. Question: What is the nature of its business? Response: A trading and service provider company. It purchases things as contracted by state agencies and provides maintenance services on computer, electronic, and laser equipment as contracted. It was a small family-run business. Question: What types of items does it handle? Response: Computers, lasers, electronics, and fiber optic equipment. Question: Does it serve as a broker? Response: No, the company conducts its own bids, imports, purchases, and service. Question: What types of organizations are among its typical customers and where are the customers located? Response: All are state and academic agencies; there were no private or business sector clients. 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: Kriangdech and Phirasak admitted they did not know about this U.S. law. After learning of the law they promised to abide by it. They said they will study the law from the internet and load the DSP-83 Form for their future use if it was on the website. They promised to buy an iron safe to store the items purchased. ¶5. (U) POL FSN visited the National Science Agency of Thailand (NSAT). NSAT was located in Amphoe Khlong Luang, Pathumthani which is approximately 40 kms north of Bangkok. The official name was "the National Science and Technology Development Agency (NSTDA)". POL FSN met Dr. Saran Samritdetkhachon, Acting Lab Director of the Photonics Technology Laboratory, and Dr. Uthai Charoenwong, Director of Strategy and Organization Development Division, of the National Electronics and Computer Technology Center, an agency under NSTDA. They both said they had heard about this project, as proposed by a group of outsiders and soldiers seeking funds from NSTDA. However, they did not know about the progress of the study or the responsible persons. POL FSN June 16 spoke with Supachari Wichairot, coordinator of the NSTDA's Reverse Brain Drain Project, the unit that has approved and funded the inquired laser project. She originally agreed to meet with POL FSN June 17 but later declined after she reported the inquiry to her superior ASTDA Asst. Director Dr. Siriroek Songsiwilai. Siriroek would not be available to meet until June 23-27. ¶6. (U) POL FSN met with Capt. Sahaphong, Lead Researcher to the Develop of Eyesafe Laser Rangefinder Project, at Kasetsart University in Bangkok. Sahaphong was a special lecturer at this school in addition to his regular career as a military researcher to the Military Research and Development Center of the Royal Thai Armed Forces. Question: Are you familiar with Laser Research Company? Response: Yes. The company was tasked to purchase the reftel equipment for his research project. This was the second time this company purchased laser equipment for him. The first purchase was in 2003 or 2004. Question: Is Laser Research Company an official participant in the "Development of Eyesafe Laser Rangefinder" project sponsored by the National Science Agency of Thailand with a project period of 2003 - 2008? Response: No. It was just a company contracted to purchase a set of laser equipment for the project. This project, under his supervision and leadership, comprised of four other researchers: - Prof. Sukanda Iutamuia, an Indonesian national and lecturer at Northern California University, - Mr. Kanokphot Arikun, a lecturer at the Faculty of Sciences, Kasetsart University, - Capt. Kiatkun Chaisangwon, Royal Thai Navy Academy, and - Capt. Phaisan Kaewket, a researcher at the Military Research and Development Center, the Royal Thai Armed Forces. Sahaphong himself was a graduate of the Royal Thai Navy Academy in 1985 with his MS.EE. in Digital Signal Processing from University of Pittsburgh. His team proposed the project to NSTDA's Reverse Brain Drain Project for funding and was granted 2,500,000 Baht. The research period was 2003 to 2006 with an extension through 2008. The project was to produce the prototype of an eyesafe laser rangefinder with various Original Equipment Manufacturers for the NSTDA. If successful, it could be contracted to the private sector or state agencies to reproduce for internal or international use. Question: What is the nature and scope of the company's work for your Agency? When did Laser Research first establish a relationship with the Agency? Response: The company did not directly work for the NSTDA, but contracted with him and his research team directly as the company assigned to purchase the laser equipment for his project. He was the one who ordered the purchase and paid the money. The NSTDA had provided research funds but was involved with the project's administration. His team first contracted with the company in 2003 or 2004. Question: Does the company have relationships with any other Thai government agencies? Response: As far as he knows, the company also imports and purchases scientific equipment for Kasetsart University, Ubon Ratchathani University, Asian University, and the Royal Thai Navy. Question: Does the company need the eyesafe laser rangefinder receiver listed on this application in order to perform its work for your Agency? Response: The company does not need the items for its work for the NSTDA. It would purchase the items for his research project. Question: Will Laser Research Company's relationship with the National Science Agency continue after the "Development of Eyesafe Laser Rangefinder" project ends this year? If so, in what capacity? Response: No. It was just a company contracted to occasionally purchase items for research. It was not a single-source purchaser and it was not a research assistant or co-researcher of any kind. The relationship will end if there was no project or purchase order. ¶7. (U) Capt. Sahaphong provided an additional written statement. Begin Statement: We have bought one unit of 759 LRF module before (2004) for the purpose of laser light detection and processing. This unit just malfunctioned while experiment in the lab in February 08. We want this unit to replace the first one that broken. Currently there are about 550 units of handheld LRFs deployed in Thai military. These LRFs were purchased from SIMRAD, UK, more than a decade ago. These LRFs are getting old and wearing out, and the spare parts are expensive and hard to find. These LRFs are not eyesafe, thus military personnel are exposed to the danger of blindness when they operate the LRF in practice or real battle field. In near future eyesafe LRFs will be required to replace the non-eyesafe ones. To save the country's spending budget and to reduce dependence on other countries, the research on eyesafe LRF is proposed. The research will include the basic theory of laser rangefinder, the theory of laser as applied to the eyesafe LRF, the optical, electronic, and mechanical parts of the LRF, and the field test of the completed system. The system employs Time of flight (TOF) technique by sending a laser pulse to the target and detects the returned pulse. Time of flight was converted to distance by equation R=c.t/2. The system consists of three main parts: laser transmitter, receiver and time to range converter. Every parts of the system was built and integrated. Unfortunately during the laboratory experiment the LRF receiver module was broken (the one that I already purchased). Expected result: Handheld laser rangefinder that can measure the distance up to 3 km or better with /-5 m resolution. I've asked Laser research Co., Ltd. to process the procurement for me because this company has experience purchased the first one. The End User letter (EUL) to assure that 759 LRF module will not resold to third country was signed by LR. End statement. JOHN