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