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

UNCLAS STATE 078948 SIPDIS BANGKOK FOR TOM HINES E.O. 12958: N/A TAGS: ETTC KOMC TH SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 050181625 REF: A. 07 BANGKOK 6129 ¶B. 09 BANGKOK 672 ¶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 license 050181625 for the export of firearms 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 licenses involving parties to this license. ¶3. Reason for Request: Previous Blue Lanterns have shown irregular procurement practices on behalf of Thai Government agencies that make it difficult to verify the ultimate end-use and ultimate end-users of defense articles exported from the United States. In some cases, though the end-user is listed as a Thai Government entity, the firearms are sold to individuals (REFTEL A and B). In a recent case, it was found that the listed government end-user did not have sufficient controls over who received the firearms (REFTEL B). This request is to establish the bona fides of the foreign consignee and the transactions as well as to determine who the ultimate end-users will be and in what capacity these recipients are receiving these firearms. ¶4. Action Request: Post is requested to establish the bona fides of foreign consignee Krungthai Firearm and this transactions by making inquiries to representatives of the company and appropriate authorities of the Thai government. Specifically, Post is requested to determine if the firearms on these licenses are for official government use and to verify who the ultimate end-users will be. Post is also requested to establish the size of the Investigation and Legal Affairs Bureau and verify the quantity of firearms needed by the government entity. Finally, Post is requested to determine through what means these firearms will be distributed and what entity is responsible for maintaining inventories and security of these items. In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities, end-use, and concerns about the entities involved. ¶5. Details of license applications: DTC Case: 050181625 QUANTITY/COMMODITY: 336 Colt Defender Pistols, .45 Caliber 41 Colt New Agent Pistols, .45 Caliber 60 Colt Government Pistols, .38 Caliber 508 Colt Gold Cup Trophy Pistols, .45 Caliber License Value: USD $734,563 SELLER: Colt Manufacturing Co. LLC 545 New Park Avenue West Hartford, CT 06110 FOREIGN INTERMEDIATE CONSIGNEE: Fixtech Company LTD Two Pacific Pl 21st Floor #2107 142 Sukhumvit Road Bangkok, Thailand Tel: 02 653 2137 to 9 FOREIGN CONSIGNEE: Krungthai Firearms L.P. 2/45 Burapha Road, Wangburaphirom Bangkok Phranakom, Thailand Tel: 662 623 8100 FOREIGN END-USER: Investigation and Legal Affairs Bureau Ministry of Interior Wangchaiya, Nanglerng, Nakornsawan Road Bangkok, Thailand PURPOSE: For use by the Investigation and Legal Affairs Bureau. ¶6. Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Post upon request): DSP-83 signed by Richard Churchill (Colt) dated 22 June 2009, Sanit Khowsaard (Investigation and Legal Affairs Bureau) dated 11 June 2009, and Amornthep Sachdev (Krungthai) dated 11 June 2009; End-Use Certificate issued by the Investigation and Legal Affairs Bureau (Document No MOI 0307.5/75) signed by Sanit Khowsaard dated 11 June 2009; Purchase Order No. 12 from Fixtech Company Ltd dated 18 June 2009; Purchase Order No. K5205 from Krungthai Firearms Ltd signed by Amornthep Sachdev dated 11 June 2009; Import Authorizations Nos. 466/2552 - 483/2552 (Receipt Nos 21 - 38 in Book 566564) signed by Somkid Chaiyim dated 27 May 2009; Import Authorizations No. 357/2552 (Receipt No 30 in Book 566555) signed by Somkid Chaiyim dated 14 May 2009; Letter from Colt Manufacturing Company explaining that Fixtech is a representative of Colt in Thailand and received $110,184.45 in commissions for this transaction. Dated 14 July 2009. ¶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 Kyle M. Ballard, Phone: 202-663-1929; Email: BallardKM@state.gov; SIPRNET: BallardKM@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file on Intellipedia: http://www.intelink.gov/wiki/ Blue Lantern End-Use Monitoring Program. ¶8. Department is grateful for Post's assistance in this matter. CLINTON