VZCZCXYZ0000
RR RUEHWEB

DE RUEHBK #0070/01 0081034
ZNR UUUUUZZH
R 081034Z JAN 08
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 1346
INFO RUEKJCS/SECDEF WAHINGTON DC
RUCPDOC/USDOC WASHINGTON DC

UNCLAS BANGKOK 000070 
 
SIPDIS 
 
SIPDIS 
 
PM/DTCC FOR BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC TH
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON 
LICENSE 610001321 
 
REF: SECSTATE 158200 
 
¶1. (U) Post's pre-license check on Chaiseri Metal & Rubber 
Co. raised significant concerns about the company's 
understanding of USG regulations pertaining to United States 
Munitions List (USML) items. The company appears to be 
producing USML defense articles without a manufacturing 
license and transferring U.S. origin items to other 
countries. 
 
¶2. (U) According to the Thai Ministry of Commerce, Aekphatt 
Firearms Ltd Partnership is registered as follows: 
 
Registration No. 0135533001424 
Registered Date: November 14, 1990 
Status: Limited Partnership 
Name: Chaiseri Metal & Rubber Co., Ltd. 
Capital Registration: 150,000,000 Baht 
Business partners: Hiran Koolhiran and Kitti Koolhiran 
Authorized executives for legal commitments are Mr. Hiran 
Koolhiran to co-sign with Mr. Kitti Koolhiran and the 
Company's stamp. 
 
Company Location: 41/1 Moo 1, Phaholyotin Rd., Tambon Khlong 
Nueng, Amphoe Khlong Luang, Pathumthani 
 
The company has submitted annual financial reports for 
1999-2006. 
 
Purpose of Company: To produce and manufacture wheeled 
vehicles, belt-powered vehicles, belt joints, belted wheels, 
and gears. 
 
¶3. (U) According to the Telephone Directory Center, the phone 
numbers for Chaiseri are 02-516-8374 and 02-516-4990. 
The registered location for the company is 41/1 Moo 1, 
Phaholyotin Rd., Tambon Khlong Nueng, Amphoe Khlong Luang, 
Pathumthani. 
 
¶4. (U) POL FSN December 19 made an unannounced visit to 
Chaiseri's registered location and met with Prasit Koolhiran. 
 Prasit, Chaiseri's production manager, was unwilling to 
discuss company's legal documents and management procedures 
and suggested that Hiran Koolhiran could better answer 
questions.  This location is a large tract of land along a 
main highway in an urban area.  The two structures on the 
property are a four-story office building and a 
warehouse/factory building at the rear of the property. 
Prasit declined a request to visit the warehouse/factory 
building.  One security guard and several office staff were 
at the office building. 
 
¶5. (U) POL FSN visited Hiran Koolhiran at the location 
indicated reftel, 59 Moo 6, Pathum - Banglen Rd., Kubang 
Luang, Lad Lum Kaew, Pathumthani.  This location is another 
large tract of land along a main road with an office building 
and several production buildings.  Hiran would not permit a 
visit to the production area.  Hiran said he was busy with 
the preparation for a December 20 inspection by 
representatives of the Thai armed forces and declined to 
provide detailed answers.  Hiran said the company complies 
with the U.S. regulations and was willing to provide 
necessary documents.  He explained that the factory 
manufactures spare parts for armored vehicles for both export 
and domestic use.  Parts imported from the U.S. are for 
domestic use only and would not be transferred to a third 
country, Hiran said.  Chaiseri notifies the Thai Ministry of 
Defense's Department of Defense Industry Sales of all sales, 
imports, and exports. 
 
¶6. (U) POL FSN met Hiran Koolhiran January 3 and Hiran 
confirmed the purchase order for items listed in reftel but 
attempted to avoid providing details of the purchase.  Hiran 
initially was ambiguous about the origin of the items in the 
order and later claimed that he had designed these items but 
had not yet copyrighted them.  After further inquiries, Hiran 
admitted that Chaiseri had imported items of U.S. origin to 
repair armored vehicles in Thailand and that the company had 
manufactured the items ordered by IPS by copying the items of 
U.S. origin.  Chaiseri had also transferred items of U.S. 
origin to customers in other countries in the past, Hiran 
admitted. 
 
¶7. (U) Regarding restrictions on arms sales, Hiran said he 
had no knowledge of International Traffic in Arms Regulations 
and was unable to demonstrate an understanding of 
restrictions placed on USML items; particularly prohibitions 
against unauthorized re-transfers or manufacturing of USML 
items.  Post was unable to verify Chaiseri's record-keeping 
procedures for transactions ivolving M113 parts and other 
USML items because iran refused to explain these procedures. 
 
 
¶8. () Hiran claimed that he manufactured the items inquestion under the authorization of the Thai Minisry of 
Defense but he refused to provide a copy o such 
authorization.  POL FSN was able to view te production floor 
at this location but Hiran deied access to the warehouse. 
Hiran claimed his copany never maintained stocks of M113 
parts or oter USML items.  Ten production workers were in 
te factory but no security guards were present. 
JOHN