BLUE LANTERN PRE-LICENSE END-USE CHECK ON

UNCLAS BANGKOK 001202

SIPDIS

FOR PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC TH
SUBJECT: BLUE LANTERN PRE-LICENSE END-USE CHECK ON
APPLICATION 050153898

REF: STATE 34590


1. (U) According to the Ministry of Commerce NR Automotive
Co., Ltd. was listed as follows:

Registration Number: 0105550128261
Registration Date: December 12, 2007
Status: Company Limited
Executive: Supat Chansilp
Capital Registration: 1,000,000 Baht
Location: 1729 Soi Lat Phrao 94 (Panjamit),Siwara Rd., Wang
Thong Lang Sub-District, Wang Thong Lang District, Bangkok
Purpose: To sell all types and models of tanks, armor
carriers, and military vehicles
The company has submitted a financial report for 2007.


2. (U) NR Automotive was not listed in the telephone
directory. Reftel phone number belonged to On-uma
Sirachaisi, with a given address of 55/96, Muban Klang Muang,
Soi Yothin Pattana, Pradit Manutham Rd., Lat Phrao District,
Bangkok. When we called the number the person who answered
directed inquiries to the reftel address.


3. (U) We visited the reftel address for NR Automotive Co.,
Ltd. May 7 but the business appeared empty and abandoned.
The address was a three-story concrete residence in a private
housing estate. A sign at the residence said "The Far East
Group Co., Ltd." NR Automotive executive Supat Chansilp
called us the same day and arranged for us to visit another
location in Muban Klang Muang. Supat said he had not yet
changed the address in the commercial registration.


4. (U) We visited Supat and business partner Athit Kaewpralom
May 14. The business location was a three-story house in a
private housing estate. Six employees were at the location.
No security or fire systems were observed, but two guards
were at the entrance to the building. Supat and Athit stated
that they had been with the business for almost thirty years
and that sister companies called the Army Supply Co., Ltd.
and NK Industries Co., Ltd., shared the same site. The
Ministry of Commerce lists these companies as located at the
same address.


5. (U) Reftel questions answered by Supat and Athit:

Does the company have supporting documentation for this
proposed transaction?

Response: Yes, it is a contract between the Director of the
Military Equipment Maintenance Center (Ordnance Line) of the
Royal Thai Army's (RTA) Ordnance Department and the NR
Automotive Co., Ltd., Ref. 11/2552, dated January 15, 2009.
The original contract, a copy of End Use Certification Letter
signed by the Ordnance Dir-Gen. on Feb 6, 2009, and a copy of
the NR Purchase Order, Ref NR 02/09, dated Jan 27, 2009, were
presented for our examination. They concur as stated reftel.

Did the Royal Thai Army order the exact type and quantify of
items listed on this application?

Response: Yes, Supat and Athit provided a list of the items
ordered by the RTA.

What is the exact end-use for this USML items?

Response: For maintenance of the transmission system of ten
Stingray Tanks.

What is the nature of NR Automotive Company Limited's
business?

Response: To bid on contracts for equipment for the Thai
armed forces.

What type of items does it handle?

Response: Only military equipment related to tanks and
armored vehicles.

Does it serve as a broker?

Response: No, NR Automotive was appointed in December, 2007,
as an authorized dealer of Tecmotiv Corporation. It orders,
purchases, imports, and sells products.


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

Response: At the moment, the sole client is Department of
Ordnance of the RTA, which is the agency for procuring,
preparing, and maintaining tanks and armored vehicles for
RTA.

Does NR Automotive Company Limited have a firm purchase order
from the proposed end-user the Royal Thai Army?

Response: Yes, as stated above.

Does the company understand the restrictions on United States
Munitions List (USML) items, particularly those that prohibit
the unauthorized stockpiling of the US defense articles?

Response: Yes, this order was for immediate use by the RTA
Department of Ordnance, not for stockpiling for future use.
Once the items arrive at Bangkok port/airport, they would be
cleared and transferred to Department of Ordnance's
warehouse. None will be stored at the company.

Does the company understand the ITAR prohibitions against the
unauthorized re-transfer and reexport of USML items?

Response: Yes, they have to comply with all related U.S. and
Thai laws.


6. (U) On visits to the RTA Military Equipment Maintenance
(MEM) Center (Ordnance Line) in Pathumthani and the Ordnance
Department in Bangkok May 7 and May 14 we met with the Deputy
Chief of the Procurement Division of the Ordnance Department
and the Chief of the Procurement Section of the MEM Center.
They confirmed the orders of the reftel equipment via NR
Automotive Co., Ltd. and the End Use Certification Letter
signed by their Director-General. The procurement was for
the maintenance of Stingray tanks, which were imported from
the U.S. and have been in use by the RTA since 1989. The
Ordnance Department conducts its own maintenance on the
tanks.


7. (U) We compared the order for the equipment provided by
Ordnance Department and NR Automotive with the commodity list
provided by PM/DTCC. The majority of the items match, except
the following discrepancies:

Item #1 - Gasket and Seal Kit P/N 211370 was not found on
order provided by the Department of Ordnance or by NR
Automotive

Item #17 - Manual Selector Valve was only listed as P/N
211294 by both the Department of Ordnance or by NR Automotive
Item #24 - Steel valve stem, was listed as P/N 211272
Item #83 - Oil screen, listed as P/N 211017
Item #88 - Pump: quantity 88, was listed as quantity 5
Item #99 - Ball bearing: quantity 99, was listed as quantity
10
JOHN