VZCZCXYZ0004
OO RUEHWEB

DE RUEHBK #2985/01 3281026
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O 241026Z NOV 09
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9068
INFO RUETIAA/DIRNSA FORT GEORGE G MEADE MD IMMEDIATE
RUEAIIA/CIA WASHINGTON DC IMMEDIATE
RHMCSUU/FBI WASHINGTON DC IMMEDIATE
RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
RUCPDOC/USDOC WASHINGTON DC IMMEDIATE

UNCLAS BANGKOK 002985 
 
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 LICENSES 
050190040, 050190045, 050190058, 050190070, AND 050190074 
 
REF: STATE 98729 
 
¶1. (U) According to the Thai Ministry of Commerce, Raja 
Firearms Partnership, Ltd. was listed. 
 
Registration No. 0103508008460 
Registered Date: October 12, 1965 
Status: Limited Partnership 
Capital Registration: 5,000,000 baht 
Partners: Vijay Sachdev, with an investment of 2,200,000 baht 
and Kurada San Singh, with an investment of 2,800,000 baht 
The managing partner is Vijay Sachdev. 
Company Location: 45, Burapha Rd., Wang Burapha Phirom 
Sub-District, Phra Nakhon, Bangkok 
The company has submitted annual financial reports for 
1999-2008. 
Purpose of Company: To manufacture and sell of weapon 
detection equipment and hand grenades. 
 
¶2. (U) Raja Firearms was listed in the Phone Directory with 
the phone numbers as stated reftel. However, the house number 
registered in the directory was 41, not 45 as stated reftel. 
 
¶3. (U) We visited Raja Firearms twice; first on October 9, at 
the shop in Wang Burapha Phirom, and second on October 19, at 
its administrative office on Sukhumvit road.  The shop was 
located as addressed (Note: house no. 45), in an area known 
for firearm shops.  The shop was two-connecting shophouses 
with the upper floors used as living quarters.  The shop was 
busy with many customers.  Five employees were present but 
they referred us to meet with Vijay Sachdev, who primarily 
works at the administrative office on Sukhumvit Road. 
Sachdev met with us at his office on the ninth floor of a 
condominium building called Grand Mercure.  This building was 
part of the family business, and was located at No. 50, 
Sukhumvit Road, Soi 19, North Khlong Toei Sub District, 
Wattana District, Bangkok. 
 
¶4. (U) Cable inquiries: 
 
- When was your company established and who are its 
principals? 
 
Response: Raja Firearms was established in December, 1965 
with two principals as stated in the business registration. 
The shop at Wang Burapha Phirom area is the sales office and 
the Sukhumvit office is for administration.  Raja Firearms 
has 8 other branches/networks, namely: Chan Firearms; Nakhon 
Luang Firearms; GP Inter Arms; Thai Union Firearms; Kampanat 
Firearms; Nanthaphon Firearms; Kurada San Singh Firearms; and 
Pistol Master Co., Ltd. (Each branch has a firearm permit, 
one permit allows an import and sale of not more than fifty 
rifles, thirty pistols, and a portion of ammunition per 
year). 
 
- What is your role in these transactions? 
 
Response: Raja Firearms has signed two contracts with the 
Bureau of Investigation and Legal Affairs for the 
order/import of firearms: Sig Sauer - numbering 43 pieces for 
the first contract (No. 19 Part 1) and 1,178 pieces for the 
second contract (No. 19 Part 2), on behalf of the Bureau, for 
domestic sale and use by Thai government officials under the 
Welfare Project of the Department of Provincial 
Administration.  These lots of firearms must be delivered to 
the Bureau for distribution to buyers by July 22, 2012.  Some 
ten to twenty other firearm companies have also obtained this 
type of contract with the Bureau with varies of quotas. 
These contracts are special firearm quotas, specifically 
approved by the Interior Minister. 
 
- Is your company receiving any fees or commission for your 
services in this transaction? 
 
Response: Yes, like other business, Raja receives the gains 
from selling these firearms.  Firearms under this Welfare 
Project are cheaper than those purchased in the regular 
market (roughly 30 - 40 percent cheaper).  The sales price 
was determined by the Bureau prior to the signing of 
contracts, not by the firearms shops. 
 
- Are you familiar with the regulations governing the import 
of US-origin defense articles, including restrictions on 
re-transfer or re-export? 
 
Response: Yes, Raja Firearms imports and sells many U.S. and 
 
European-origin firearms, such as Sig Sauer, Remington, 
Walther, Fiocchi, and Mannlicher-Steyr.  The company complies 
with both foreign and Thai laws regarding firearms.  The 
company signs DSP-83s: End-User Certificate to present to the 
US authority to acknowledge and certify the said regulations. 
 Import, sales, and buyer information records will be kept by 
both the Bureau and Raja, both in hard copy and in a computer 
system.  Per the Welfare Project's regulations, a gun 
purchased under this project cannot be transferred to other 
person within 5 years after delivered to the origin buyer. 
 
- What is the ultimate end-use for the firearms you will 
provide to Bureau of Investigation and Legal Affairs? 
 
Response: This is the Department of Provincial Administration 
Welfare Project, organized by the Department Bureau of 
Investigation and Legal Affairs, to supply firearms to 
government officials of all state agencies/ministries 
nationwide who are qualified and willing to purchase firearms 
on their own.  Potential buyers must register and pay for 
their firearms in advance at the Bureau or at Raja Firearms. 
What Raja has written in its purchase orders to the US 
manufacturers with copy to the Bureau is: "We, Raja Firearms 
Ltd., Part., certify that the products in this order will be 
used to serve duty of Welfare Project of Investigation and 
Legal Affairs Bureau Department of Provincial Administration 
use within Thailand only." 
 
- Does your company have any input or involvement in the 
process by which the Bureau determines who will receive a 
firearms? 
 
Response: No, it is solely the Bureau's determination and 
regulations.  As stated above, the potential buyers must be 
state officials and register in advance with the Bureau. 
Ordinary citizens are not allowed in the project.  Most of 
buyers (approximately 80 percent are police, military, and 
territorial defense personnel.  Others are civilian law 
enforcement personnel, such as drug suppression officials, 
Ministry of Interior officials, Ministry of Justice 
officials, park and forestry officials, and lastly state 
education personnel in the Deep South who are affected by the 
southern insurgency.  They buy their own personal weapons 
since state-issued firearms are inadequate and some are 
relatively old and unreliable, or some officials are not 
subjected to the government-issued firearms (such as 
teachers).  These firearms will be used in their government 
capacity and personal protection. 
 
- How did the Bureau describe the ultimate end-use of these 
firearms to your company? Please provide any documentation 
you received from Bureau of Investigation and Legal Affairs 
that describes the ultimate end-user of these firearms. 
 
Response: The documents from the Bureau to Raja Firearms 
stated: We further confirm that the above goods will be 
supplied to and used in the service of the Investigation and 
Legal Affairs Bureau Department of Provincial Administration 
and will not be transferred nor re-exported to any other 
country out of Thailand without the prior written 
authorization of the Government of USA. 
 
- How did you describe the ultimate end-use of these firearms 
to the U.S. vendor? Please provide any documentation you sent 
to the U.S. vendor that describes the ultimate end-use of 
these firearms. 
 
Response: The documents from Raja Firearms to the U.S. vendor 
certifying the ultimate end-user of these firearms stated: 
"We, Raja Firearms Ltd., Part., certify that the products in 
this order will be used to serve duty of Welfare Project of 
Investigation and Legal Affairs Bureau Department of 
Provincial Administration use within Thailand only." 
 
- Please explain why these firearms were ordered via five 
separate purchase orders instead of one. 
 
Response: There are three main reasons. 
 
¶1. The Bureau's limited storage space. If thousands of 
firearms were to arrive at the same time, the Bureau would 
not have enough space to store them.  They must be gradually 
ordered and imported, temporarily stored at the Bureau 
pending documentation and distribution, and then gradually 
distributed to the buyers.  Raja would not store these 
weapons since it does not have enough space.  The imported 
 
weapons would be transported directly from Thailand's port of 
entry to the Bureau's storage facility. 
 
¶2. Costs to the company: This is about financial and risk 
management.  To order a larger number of firearms at one 
time, the company has to advance money for purchase, 
transport, and tax.  In the case of loss, it would cause 
significant damage. With a smaller number of purchases, the 
company is better able to manage money and items. 
 
¶3. Manufacturer capacity:  With a larger purchase order at 
one time, the manufacturer may not be able to produce and 
deliver as contracted.  The purchase order would be based on 
the manufacturer's capability.  In addition, according to 
Thai law, the firearms ordered/imported each time must arrive 
Thailand altogether in one lot.  If ordered in a larger lot 
and the manufacturer was unable to complete it, the whole lot 
of that order would be put on hold, which will consequently 
damage the company's business flow. 
 
¶5. (U) Inquiry to Bureau of Investigation and Legal Affairs: 
 
The Bureau is a governmental agency under Department of 
Provincial Administration, Ministry of Interior.  We visited 
on October 30 and met officials in charge of firearm shop 
registration, firearm registration, and the Welfare Project's 
contracts. 
 
- Can the Bureau confirm the order of the firearms listed on 
these license applications? 
 
Response: They all confirmed the orders of all firearms 
listed in the Cable. It is Department of Provincial 
Administration Welfare Project, organized by their Bureau. 
 
- For what will these firearms be used? 
 
Response: They will be principally used for protection of the 
buyers.  Additionally, for many, they are also for their 
function as government officials and law enforcement 
officers. 
 
- Who will be the ultimate end-users? 
 
Response: They are all kinds of government and state 
officials from agencies nationwide, as well as those holding 
political and local administrative positions.  Approximately 
80 - 90 percent of the end-users are police and military 
officers.  The remaining are civilian anti- crime and 
narcotic officers, Ministry of Interior officers, elected 
village/sub-district heads and their security-duty personnel, 
elected provincial and sub-district organization 
administrators, Members of Parliament and Senators, 
territorial defense personnel, and teachers in the 
violent-plagued Southern region; etc. 
 
- Will these firearms be used in the official duty of the 
Bureau or any other agency of the Government of Thailand? 
 
Response: As all buyers are the government officials, with 
majority of them in the security and law enforcement careers, 
these firearms will be used in their official duties.  For 
those not in that field, the firearms will be privately used 
for their personal safety and protection.  These firearms are 
privately purchased by the buyers.  These firearms are 
regarded as the private property, not government-funded 
procurement and not regarded as state property. 
 
- Please describe the process by which the Bureau determines 
who will receive one of these firearms. 
 
Response: The buyers or the participants in this Welfare 
Project must be the government officials with additional 
qualifications provided by the 1947 Firearms Act, Section 13. 
 They have to register their order with the Bureau or Raja 
Firearms in advance and pay for their firearms by 
installments or in full at one time.  After the qualification 
examinations and the arrival of the firearms, they will have 
to present at the Bureau with all related documents to pick 
up their weapons.  Originally, this Welfare Project was 
solely for Interior officials of Ministry of Interior.  It 
was later expanded to police and military personnel, then to 
government officials as approved by the Director-General of 
the Provincial Administration Department. 
 
- How many firearms have you distributed via the welfare 
 
program this year? Please provide detailed records on who 
received firearms via this program. 
 
Response: The Welfare Project started in February, 2009 with 
the first shipment and firearms distribution to the buyers in 
May, 2009.  On average, approximately one hundred firearms 
are distributed to the buyers each week.  They estimated 
that, by the end of October, 2009, over 6,000 firearms of all 
brands/types had been distributed. 
 
- How many firearms have been distributed via the welfare 
program in the past year? 
 
Response: None, the Bureau had organized the project in 
February 2009.  Weapons purchased previously may have been 
through the Department of Provincial Administration Welfare 
Project which was organized by Bureau of the Territorial 
Defense Volunteers Administration, which is another agency 
under Department of Provincial Administration, Ministry of 
Interior. 
 
- Please explain the large quantity of firearms the Bureau 
has received from the U.S. manufacturers since May 1, 2009 
(approximately 10,506 firearms). Are all of these firearms 
for the welfare program? 
 
Response: During February to October, 2009, the Bureau has 
ordered 38 lots, totaling 77,441 pieces of all brands. 
Approximately 10-15 percent are U.S.-origin.  All firearms 
are for the Welfare Program. 
 
- Have there been any other major procurement efforts for 
firearms during the past six months? 
 
Response: Yes, as stated above. 
 
- Please provide any documentation that you provided Raja 
Firearms in these transactions. 
 
Response: Documents presented for my examination and filing, 
see below. 
 
- How did you describe the ultimate end-use of these firearms 
to Raja Firearms? 
 
Response: As to the Bureau's official letters, titled 'End 
User Certificate', sent to the Raja Firearms (Ref. MOI 
0307.5/243, 244, 245, 246, and 247, dated August 13, 2009): 
"We further confirm that the above goods will be supplied to 
and used in the service of the Investigation and Legal 
Affairs Bureau Department of Provincial Administration and 
will not be transferred nor re-exported to any other country 
out of Thailand without the prior written authorization of 
the Government of USA." 
 
- What role does Raja Firearms in these transactions? 
 
Response: Raja has obtained firearms contracts from the 
Bureau. It then made the orders of these firearms on behalf 
of the Bureau. 
 
- Will the company receive any fees or commissions from the 
Bureau for its services in these transactions? 
 
Response: Raja Firearms will receive its gains from selling 
these firearms. It may also receive, they assumed, some 
incentive or reward from the foreign manufacturers for 
arranging a large sale in Thailand.  The firearms in this 
Welfare Project are roughly 50 percent cheaper than the 
normal market prices. The sale prices are based on the 
negotiation between the Bureau and the Raja Firearms prior to 
signing the contracts.  The Bureau does not pay any fees or 
commissions to the Raja. 
 
- Please explain why these firearms were ordered via five 
separate purchase orders instead of one. 
 
Response: 1. By the 1947 Firearms Act, Section 60, a Permit 
for Order/Import of Firearms can be used only once, and the 
firearms ordered under that Permit must arrive in Thailand in 
one lot at one time.  With one larger order, if the firearms 
do not arrive together in one time for whatever reasons, that 
Permit will be put on hold or void, and it will cause damages 
to the persons/companies involved. It is better to order in 
smaller numbers. 
 
¶2. An order/import will normally be made when the company has 
received a practical number of purchase applications and 
amount of money paid for the firearms at a certain period of 
time. It is impractical to wait until all purchase 
applications have been received, and the order/import shall 
then be made. 
 
¶3. With a larger order at a time, the foreign manufacturers 
may be unable to produce and deliver the products as 
contracted.  Among the above-mentioned 38 lots of purchases, 
1,000 - 3,000 pieces of firearms are ordered/imported at a 
time. 
 
- Have any of previously imported firearms been re-exported 
out of Thailand? 
 
Response: Not that they are aware of. 
 
- Will any of the firearms in the five licenses listed be 
re-exported out of Thailand? 
 
Response: No, Thai law also prohibits as such. 
 
- By what means these firearms will be distributed? 
 
Response: The Bureau will distribute these firearms to the 
buyers.  They have to be present personally, or authorize a 
representative, together with all related documents, to pick 
up their firearms at the Bureau. 
 
- What entity is responsible for maintaining inventories and 
security of these items? 
 
Response: This Bureau, as the state agency overseeing 
firearms registration in Thailand, is responsible for 
maintaining the inventories and movement of these firearms, 
assisted by district offices nationwide.  For security, it is 
the direct responsibility of the buyers since these firearms 
are private property.  In case of the loss of firearms, the 
buyers have to report to the Bureau for record and to the 
police for investigation.  In case of unauthorized re-export 
or re-transfer, it is police responsibility to investigate 
when a case comes up. 
 
- Please estimate an appropriate quantity of firearms to be 
imported by the Bureau. 
 
Response: They estimate approximately 100,000 pieces of 
firearms, with about 10-15 percent of U.S. origin.  There are 
several million government officials in total. 
 
- Is Raja Firearms properly authorized to import and sell 
defense articles in Thailand? 
 
Response: Affirmative, this Bureau is supervising its 
registration, licensing, and operations. 
 
- Do you have any information on Raja Firearms that would 
question their reliability as a recipient of US defense 
articles? 
 
Response: None, as to the Bureau's records.  They were also 
personally not aware of any derogatory information toward 
Raja Firearms. 
 
¶6. (U) Documentation Review: 
 
Based on reftel list of documents and request for review, 
both Raja Firearms and the Bureau provided documents.  All 
documents presented by both sides are in consistent to those 
listed in the Cable. 
 
¶A. DTC Case - 050190040: Sig Sauer, Model P239, 9 mm, 248 
pieces.  Permit No. PK 110 1/2552, Raja Firearms Purchase 
Order No. 090930, and Department of Provincial Administration 
End User Certificate to the Raja and the U.S. manufacturer 
(Ref. MOI 0307.5/245, dated 08/13/2009). 
 
¶B. DTC Case - 050190045: Sig Sauer, Model SP2022 PRO, 9 mm, 
259 pieces. Permit No. PK 1103/2552, Raja Firearms Purchase 
Order No. 090920, and Department of Provincial Administration 
End User Certificate to the Raja and the U.S. manufacturer 
(Ref. MOI 0307.5/247, dated 08/13/2009). 
 
¶C. DTC Case - 050190058: Sig Sauer, totally 87 pieces. There 
are actually three separate permits for this case. 
 
- Model Mosquito, .22 Caliber, 42 pieces, under Permit PK 
1097/2552 
- Model P220, .45 Caliber, 8 pieces, and Model P250, .45 
Caliber, 3 pieces, under Permit PK 1098/2552 
- Model P232, .380 Caliber, 27 pieces, and Model P238, .380 
Caliber, 7 pieces, under Permit PK 1099/2552 
 
The above Permits, Raja Firearms Purchase Order No. 090950, 
and Department of Provincial Administration End User 
Certificate to the Raja and the U.S. manufacturer/authority 
(Ref. MOI 0307.5/243, dated 08/13/2009). 
 
 
¶D. DTC Case -050190070: Sig Sauer, Model P226, 9mm, 34 
pieces, and Model P229, 9mm, 351 pieces, totaling 385 pieces. 
 Permit No. PK 1102/2552, Raja Firearms Purchase Order No. 
090910, and Dept of Provincial Administration End User 
Certificate to the Raja and the US manufacturer/authority 
(Ref. MOI 0307.5/246, dated 08/13/2009). 
 
¶E. DTC Case -050190074: Sig Sauer, Model P250, 9mm, 62 
pieces, and Model P229, 9 mm, 180 pieces, totaling 242 
pieces.  Permit No. PK 1100/2552, Raja Firearms Purchase 
Order No. 090940, and Department of Provincial Administration 
End User Certificate to the Raja and the U.S. 
manufacturer/authority (Ref. MOI 0307.5/244, dated 
08/13/2009).  Total of 1,221 pieces. 
 
Raja Firearms and the Bureau additionally supplied copies of 
two contracts signed between them regarding the purchases of 
firearms listed reftel. The first one is Contract No. 19 Part 
1, dated July 22, 2009, for the order/import of 690 firearms, 
which, in its Appendix, 43 of them will be the 'Sig Sauer'. 
The second one is Contract No. 19 Part 2, dated July 22, 
2009, for the order/import of 2,500 firearms, which, in its 
Appendix, 1,178 of them will be the 'Sig Sauer'.  Grand Total 
of the firearms contracted above: 1,221 pieces. 
JOHN