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

UNCLAS STATE 041098

SIPDIS

SIPDIS
BANGKOK FOR THOMAS HINES
POLMIL

E.O. 12958: N/A
TAGS: ETTC KOMC TH
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON APPLICATION 050098466

REF: BLUE LANTERN GUIDEBOOK 2006


1. This is an Action Request. See paragraphs 2-4.


2. The Department's Office of Defense Trade Controls
Compliance (PM/DTCC) requests post's assistance in conducting
a pre-license check on application 050098466 for the export
of night vision equipment to Thailand. Post is requested to
complete this Blue Lantern check within 30 days. Lack of
response to a Blue Lantern check will affect pending and
future applications involving parties to this license.


3. Reason for request: unfamiliar foreign intermediate
consignee. Foreign intermediate consignee Hollywood
International Ltd. has appeared on only one previous license
application, and its bona fides have never been verified by a
Blue Lantern check. Post should make appropriate inquiries
to verify the bona fides of Hollywood International Ltd. and
confirm that the Royal Thai Supreme Command Headquarters
Counter Terrorist Operations Center in fact ordered the exact
type and quantity of items listed on the application. The
following questions are provided as suggested guidance:

For the Royal Thai Supreme Command Headquarters Counter
Terrorist Operations Center:

--Are you familiar with Hollywood International Ltd.?

--Did you order from Hollywood International Ltd. the exact
type and quantity of items listed on this application?

--Will these image intensifier tubes be integrated into a
large night vision system? If so, which system, and who will
perform the integration?

--Is Hollywood International Ltd. an official
supplier/contractor for the Thailand MOD? Does the Thailand
MOD have any other contracts with the company?

For Hollywood International Ltd.:

--Does the company have proper supporting documentation,
including purchase orders from the Thailand MOD, for this
proposed transaction?

--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?

--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?

--When was the company established and who are its principals?

--What is the nature of its business -- what types of items
does it handle, does it serve as a broker?

--What types of organizations are among its typical customers
and where are the customers located?

--Does the company understand the restrictions on United
States Munitions List (USML) items, especially the
prohibition against unauthorized re-transfers and re-exports?


4. Department requests that post conduct a site visit to
Hollywood International Ltd. in order to provide Department
with an assessment of its business operations and on-site
security. If a site visit is not possible, please inform
PM/DTCC case officer. Finally, post is asked to assess
whether the company appears to be a reliable recipient of
USML items. End action.


5. For background, the following details of the license in
question are provided:

DTC Case: 050098466

QUANTITY/COMMODITY:

2 9350CIU-3F-1250 Gen II FOM 1250 image intensifier
without auto-gated power supply

License Value: USD 8,200.00

SELLER:

Electrophysics Corp.
373 Route 46 West
Fairfield, NJ 07004
Company contact: Michelle Intiso, tel. 973-882-0211, ext. 212

FOREIGN INTERMEDIATE CONSIGNEE:

Hollywood International Ltd.
501/4-8 Phetburi Road, Kwang Thanonphayathai
Khet Rajtaywee
Bangkok 10400
Thailand
Tel.: (662) 2516032-7, (662) 6538255-66
Fax: (662) 2539485, 6538267, 6538569
(Hollywood International is allegedly the acting distributor
for Electrophysics Corp.)

FOREIGN CONSIGNEE:

Royal Thai Supreme Command Headquarters Counter Terrorist
Operations Center
Srongprapa Road Seegun, Donmuang
Bangkok
Thailand

FOREIGN END-USER:

Same as foreign consignee

PURPOSE:

Low light surveillance applications for anti-drug trafficking
and counter-terrorism activities within Thailand only.


6. Submitted in support of the license application were the
following documents (PM/DTCC can fax documentation to post
upon request):

--Purchase order no. EL-08-01 from Atchara Tang, Hollywood
International Ltd., to Electrophysics, dated 18 March 2008

--Nontransfer and Use Certificate (Form DSP-83),signed by
Ms. Atchara Rinchokechai, Vice President, Hollywood
International Ltd., dated 2 April 2008; and signed by
Lieutenant General Tanasak Patinapragorn, dated 9 April 2008

--End-use Application and Security Statement from the Counter
Terrorist Operations Center, Royal Thai Supreme Command
Headquarters, signed by Lieutenant General Tanasak
Patimapragorn, dated 9 April 2008

--Product brochure, including technical drawings and
specifications


7. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR
and include the words "Blue Lantern" and the case number in
the subject line. POC is Judd Stitziel, PM/DTCC, Phone:
202-663-3455; email: StitzielJD@state.gov; SIPRNET:
StitzielJD@state.sgov.gov. The Blue Lantern Guidebook (ref)
is available as a PDF file in the Bunche Library's Electronic
Library collection on the DOS Intranet:
http://virtuallibrary.state.gov/
BlueLanternGuidebook2006%2520 final .pdf


8. Department is grateful for post's assistance in this
matter.
RICE