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Cablegate: Blue Lantern Level 3: Pre-License End-Use Check On

VZCZCXYZ0004
PP RUEHWEB

DE RUEHBK #1896/01 1711108
ZNR UUUUU ZZH
P 191108Z JUN 08
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC PRIORITY 3442
INFO RUEAIIA/CIA WASHINGTON DC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RUCPDOC/USDOC WASHINGTON DC PRIORITY

UNCLAS BANGKOK 001896

SIPDIS

PM/DTTC FOR BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC TH
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON
APPLICATION 050101174

REF: STATE 50053

1. (U) According to the Thai Ministry of Commerce, Laser
Research Co., Ltd. was listed.

Registration No. 0105536079904
Registered Date: July 12, 1993
Status: Company Limited
Capital Registration: 2,000,000 baht
Executives: Kriangdech Prasong and Duangsamon Thongsidaeng.
Authorized executive members for legal commitments: Any
executive.
Company Location: 159/12, Muban Phromsuk, Soi Trai
Rattanaram, Ramintra Rd., Anusaowari Sub-District, Bangkhen,
Bangkok.
The company has submitted annual financial reports for
1999-2007.
Purpose of Company: To service and maintain computer
equipment.

2. (U) The company's phone number as stated reftel was
confirmed by phone directory. The fax number was registered
under a private name of Phirasak Khruaphet, under the same
address. The company's address was confirmed as 159/12, the
Phrom Suk Housing Estate, Soi Trai Rattanaram, Ramintra Rd.
(Soi 8), Anusaowari Sub-District, Bang Khen, Bangkok 10220

3. (U) When POL FSN first visited the address provided reftel
and discovered it to be an ordinary residential house in a
housing estate project without any business operation. No
one answered at the address. POL FSN visited again in a
pre-arranged meeting and met Kriangdech Prasong and Phirasak
Khruaphet, a part-time staff.

4. (U) Questions per Reftel:

Question: Does the company have proper supporting
documentation, from the National Science Agency of Thailand
for this proposed transaction?

Response: Yes. Kriangdech presented copies of

- The proposed price quote for Laser Rangefinder Receiver
Module 759 to Capt. Sahaphong Khruaphet, Royal Thai Navy
(RTN), Military Research and Development Center, No.
LR211/51, dated April 1, 2008. This was on a plain sheet of
paper without a signature or the company seal.

- The purchase order for the said Laser Rangefinder Receiver,
No. RBD-1-2551, dated Apr. 10, 2008, from Laser Research,
with signature and company seal but without the addressee
company.

- Genetron Engineering Corporation Pte. Ltd.'s price
quotation No. QS/23/0408, dated April 10, 2008, to Laser
Research and Capt. Sahaphong, RTN.

- The Laser Research's statement, dated April 11, 2008, with
signature and company's seal, with intention in lieu of
end-user statement. Kriangdech admitted that he did not know
of the DSP-83 End-User Form and had not signed one. He said
the items would be used in a laser research project at the
National Science Agency of Thailand that would be led by
Capt. Sahaphong Khruaphet of the Royal Thai Navy.

Question: When did it first establish a relationship with the
Agency?

Response: In 2002 or 2003. The company trades, imports, and
provides service. It sought to purchase and service orders
from state agencies. For this purchase, the company
contracted with Capt. Sahaphong directly, not with the
Agency. Kriangdech and Phirasak admitted that Sahaphong was
their relative.

Question: Does the company have relationships with any other
Thai government agencies?

Response: Yes, with the Army Engineering Corp - Ratchaburi,
Asian University - Pathumthani, and Ubon Ratchathani
University.

Question: Will the company be handling or storing the items
listed on the application? If so, does it have secure
facility and proper accounting and security procedures for
handling these sensitive USML items?

Response: The items would be shipped to the company by FedEx.

They may be stored at the company for a short period (not
more than 7 days) pending delivery to the research team.
Kriangdech added that only the Hybrid Eyesafe Laser
Rangefinder Receiver Model 759 was equipment. The
Application Note for Model 759 and Test Data Sheet for Model
759 are the accompanying paper documents. Since the company
was located in an ordinary small living house, there was no
security guard. There was no fire or security system. The
items would be stored in a locked iron cabinet in the living
room of the house.

Question: When was the company established and who are its
principals?

Response: The company has been set up since 1993. All company
info were confirmed as stated in Para 1.

Question: What is the nature of its business?

Response: A trading and service provider company. It
purchases things as contracted by state agencies and provides
maintenance services on computer, electronic, and laser
equipment as contracted. It was a small family-run business.

Question: What types of items does it handle?

Response: Computers, lasers, electronics, and fiber optic
equipment.

Question: Does it serve as a broker?

Response: No, the company conducts its own bids, imports,
purchases, and service.

Question: What types of organizations are among its typical
customers and where are the customers located?

Response: All are state and academic agencies; there were no
private or business sector clients.

Question: Does the company understand the restrictions on
United States Munitions List (USML) items, especially the
prohibition against unauthorized re-transfers and re-exports?

Response: Kriangdech and Phirasak admitted they did not know
about this U.S. law. After learning of the law they promised
to abide by it. They said they will study the law from the
internet and load the DSP-83 Form for their future use if it
was on the website. They promised to buy an iron safe to
store the items purchased.

5. (U) POL FSN visited the National Science Agency of
Thailand (NSAT). NSAT was located in Amphoe Khlong Luang,
Pathumthani which is approximately 40 kms north of Bangkok.
The official name was "the National Science and Technology
Development Agency (NSTDA)". POL FSN met Dr. Saran
Samritdetkhachon, Acting Lab Director of the Photonics
Technology Laboratory, and Dr. Uthai Charoenwong, Director of
Strategy and Organization Development Division, of the
National Electronics and Computer Technology Center, an
agency under NSTDA. They both said they had heard about this
project, as proposed by a group of outsiders and soldiers
seeking funds from NSTDA. However, they did not know about
the progress of the study or the responsible persons. POL
FSN June 16 spoke with Supachari Wichairot, coordinator of
the NSTDA's Reverse Brain Drain Project, the unit that has
approved and funded the inquired laser project. She
originally agreed to meet with POL FSN June 17 but later
declined after she reported the inquiry to her superior ASTDA
Asst. Director Dr. Siriroek Songsiwilai. Siriroek would not
be available to meet until June 23-27.

6. (U) POL FSN met with Capt. Sahaphong, Lead Researcher to
the Develop of Eyesafe Laser Rangefinder Project, at
Kasetsart University in Bangkok. Sahaphong was a special
lecturer at this school in addition to his regular career as
a military researcher to the Military Research and
Development Center of the Royal Thai Armed Forces.

Question: Are you familiar with Laser Research Company?

Response: Yes. The company was tasked to purchase the reftel
equipment for his research project. This was the second time
this company purchased laser equipment for him. The first
purchase was in 2003 or 2004.

Question: Is Laser Research Company an official participant
in the "Development of Eyesafe Laser Rangefinder" project


sponsored by the National Science Agency of Thailand with a
project period of 2003 - 2008?

Response: No. It was just a company contracted to purchase a
set of laser equipment for the project. This project, under
his supervision and leadership, comprised of four other
researchers:
- Prof. Sukanda Iutamuia, an Indonesian national and lecturer
at Northern California University,
- Mr. Kanokphot Arikun, a lecturer at the Faculty of
Sciences, Kasetsart University,
- Capt. Kiatkun Chaisangwon, Royal Thai Navy Academy, and
- Capt. Phaisan Kaewket, a researcher at the Military
Research and Development Center, the Royal Thai Armed Forces.

Sahaphong himself was a graduate of the Royal Thai Navy
Academy in 1985 with his MS.EE. in Digital Signal
Processing from University of Pittsburgh. His team proposed
the project to NSTDA's Reverse Brain Drain Project for
funding and was granted 2,500,000 Baht. The research period
was 2003 to 2006 with an extension through 2008. The project
was to produce the prototype of an eyesafe laser rangefinder
with various Original Equipment Manufacturers for the NSTDA.
If successful, it could be contracted to the private sector
or state agencies to reproduce for internal or international
use.

Question: What is the nature and scope of the company's work
for your Agency? When did Laser Research first establish a
relationship with the Agency?

Response: The company did not directly work for the NSTDA,
but contracted with him and his research team directly as the
company assigned to purchase the laser equipment for his
project. He was the one who ordered the purchase and paid
the money. The NSTDA had provided research funds but was
involved with the project's administration. His team first
contracted with the company in 2003 or 2004.

Question: Does the company have relationships with any other
Thai government agencies?

Response: As far as he knows, the company also imports and
purchases scientific equipment for Kasetsart University, Ubon
Ratchathani University, Asian University, and the Royal Thai
Navy.

Question: Does the company need the eyesafe laser rangefinder
receiver listed on this application in order to perform its
work for your Agency?

Response: The company does not need the items for its work
for the NSTDA. It would purchase the items for his research
project.

Question: Will Laser Research Company's relationship with the
National Science Agency continue after the "Development of
Eyesafe Laser Rangefinder" project ends this year? If so, in
what capacity?

Response: No. It was just a company contracted to
occasionally purchase items for research. It was not a
single-source purchaser and it was not a research assistant
or co-researcher of any kind. The relationship will end if
there was no project or purchase order.

7. (U) Capt. Sahaphong provided an additional written
statement.

Begin Statement: We have bought one unit of 759 LRF module
before (2004) for the purpose of laser light detection and
processing. This unit just malfunctioned while experiment in
the lab in February 08. We want this unit to replace the
first one that broken.

Currently there are about 550 units of handheld LRFs deployed
in Thai military. These LRFs were purchased from SIMRAD, UK,
more than a decade ago. These LRFs are getting old and
wearing out, and the spare parts are expensive and hard to
find. These LRFs are not eyesafe, thus military personnel
are exposed to the danger of blindness when they operate the
LRF in practice or real battle field. In near future eyesafe
LRFs will be required to replace the non-eyesafe ones. To
save the country's spending budget and to reduce dependence
on other countries, the research on eyesafe LRF is proposed.
The research will include the basic theory of laser
rangefinder, the theory of laser as applied to the eyesafe
LRF, the optical, electronic, and mechanical parts of the

LRF, and the field test of the completed system.

The system employs Time of flight (TOF) technique by sending
a laser pulse to the target and detects the returned pulse.
Time of flight was converted to distance by equation R=c.t/2.
The system consists of three main parts: laser transmitter,
receiver and time to range converter.

Every parts of the system was built and integrated.
Unfortunately during the laboratory experiment the LRF
receiver module was broken (the one that I already
purchased).

Expected result:
Handheld laser rangefinder that can measure the distance up
to 3 km or better with /-5 m resolution.

I've asked Laser research Co., Ltd. to process the
procurement for me because this company has experience
purchased the first one. The End User letter (EUL) to assure
that 759 LRF module will not resold to third country was
signed by LR. End statement.
JOHN

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