VZCZCXYZ0010
RR RUEHWEB

DE RUEHBK #4984/01 2280720
ZNR UUUUU ZZH
R 160720Z AUG 06
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 0954
INFO RUEHTV/AMEMBASSY TEL AVIV 1007

UNCLAS BANGKOK 004984 
 
SIPDIS 
 
SIPDIS 
 
PM/DTCC FRO BLUE LANTERN COORDINATOR TWATKINS 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC IS TH
SUBJECT: BLUE LANTERN CHECK ON POSSIBLE F100 ENGINE 
TRANSFER FROM THAILAND TO ISRAEL 
 
REF: SECSTATE 127228 
 
¶1.  On August 3 and 10, POL FSN met with Thai Aviation 
Industries (TAI) Logistics Department Director, Air Vice 
Marshall Thawon Mailson to discuss this Blue Lantern case. 
On August 10, POL FSN also met with Mr. Phonchet 
Likhitthanasombat, Director of the Government Policy 
Promotion Section, Office of Small and Medium Enterprises 
Promotion, Ministry of Industry.  On August 3 and 15, POL FSN 
met with Group Captain Santichai Phatklap, Director of 
Engineering Supply Division at the Royal Thai Air Force's 
(RTAF) Directorate of Aeronautical Engineering. 
 
¶2.  Answers to Reftel questions follow: 
 
¶Q.  How did the RTAF acquire these F-16 aircraft and F-100 
engines? 
 
¶A.  The RTAF has procured 59 F-16 in five separate shipments. 
 58 of these planes are deemed airworthy.  The first four 
shipments were procured via FMS in 1988, 1991, and the mid 
1990's.  Shipment 5, which included 7 aircraft, was arranged 
via FMS as a transfer of aircraft from the Singaporean Air 
Force in 2004.  RTAF has never procured F-16s commercially. 
RTAF contracts engine repair work through TAI. 
 
¶Q.  Have any F-100 engines been transferred to BSEL in Israel 
for repair?  If so, when and under what authority? 
 
¶A.  Yes, as follows: 
 
¶1.  Fan Drive P/N 4067223-800 
--S/N L010405 
--S/N L011169 
--S/N L010420 
--S/N L001594 
 
¶2.  Inlet P/N 4081821-800 
--S/N F010419 
--S/N F010442 
 
All six modules were sent to BSEL in July 2004 and all, 
except S/N L011169 have already been returned to Thailand. 
The latter part is scheduled to return in late August 2004. 
 
Representatives from DSCA and JUSMAGTHAI visited TAI in 2004 
to investigate this matter.  At that time, TAI and RTAF were 
fully cooperative.  RTAF and TAI acknowledged their mistake 
in permitting this repair work to be undertaken without USG 
approval in letters dated September 20, 2005. 
 
¶Q.  What is the precise role of TAI in this transaction? 
Please elaborate on the relationship between TAI and the RTAF. 
 
¶A.  TAI was set up in 2003 under the authority of a Royal 
Thai Government Cabinet Resolution dated September 23, 2003 
to separate, privatize and modernize the RTAF's maintenance 
and logistics capabilities.  TAI is a joint investment 
between the RTAF (owner of 49 percent of shares) and the 
Office of Small and Medium Enterprises Promotion, Ministry of 
Industry (owner of 51 percent of shares).  Approximately one 
half of the company executives are RTAF officers seconded to 
TAI.  The others are from the Ministry of Transport.  The 
company plans to be listed on the Thailand Securities 
Exchange soon and might be tasked by the Royal Thai 
Government to supervise civilian aircraft maintenance at 
Bangkok's soon-to-be-opened Suwannaphum Airport.  TAI is 
listed with the Ministry of Commerce: 
 
Registration Number 0105546131801 
Registered Date 31 October 2003 
Company Executives; 
--Air Chief Marshal Chalit Phukphasuk (RTAF CINC) 
--Air Marshal Sitthiphon Chaiyalak (Retired RTAF) 
--Air Marshal Manit Saphanthuphong (Deputy Commander of Air 
Support Command, RTAF) 
--Air Vice Marshal Supphason Kesonmala (Director of 
Aeronautical Engineering, RTAF) 
--Mr. Chalo Kotcharat (Deputy Permanent Secretary, Ministry 
of Transport) 
--Mr. Prasong Thiennu (DDG, Ministry of Transport) 
--Mrs. Chittraphon Techachan (DG Ministry of Industry) 
--Mr. Phonchet Likhitthanasombat (Director, Ministry of 
Industry) 
--Mr. Wanchai Phalothaithakoeng (Member of the Executive 
Committee of the Ministry of Industry) 
Capital Registration:  100 million baht 
Location 171, Building No. 4465, Equipment Maintenance 
Division, Phaholyothin Road, Sikan SubDistrict, Don Muang 
District, Bangkok 
 
 
(NOTE:  Our interlocutors pointed out that Former Defense 
Ministry Sumpan Boonyanan had sent a letter dated March 10, 
2005 to PM/RSAT requesting the USG recognize TAI as a legal 
representative of the Royal Thai Armed Forces.  TAI itself 
sent a second letter to PM/RSAT dated September 20, 2005 
apologizing for its unintentional violation of U.S. 
regulations and again requesting TAI be recognized as a legal 
representative of the Royal Thai Armed Forces.  Neither 
letter has been answered.  END NOTE). 
 
¶Q.  What is the background of Thailand's relationship with 
BSEL.  How did TAI end up seeking BSEL's services for repair 
of its F-100 engines? 
 
¶A.  RTAF has used BSEL to perform maintenance work for over 
ten years.  In the past, RTAF maintenance contracts were 
conducted via FMS.  However, after the privatization of RTAF 
maintenance and logistics work, the maintenance contract has 
been performed on a private company (TAI) to private company 
(BSEL) basis.  BSEL services were selected based on cost and 
proven reliability. 
BOYCE