US embassy cable - 05BANGKOK3045

UNCLAS BANGKOK 003045 
 
SIPDIS 
 
DEPARTMENT FOR PM/DTCC (JSTITZIEL) 
 
E.O. 12958: N/A 
TAGS: ETTC, KOMC, TH, BLUE LANTERN 
SUBJECT: BLUE LATERN LEVEL 3:  PRE-LICENSE END-USE CHECK ON 
APPLICATION 05-955010 
 
REF: STATE 68288 
 
1.  Pol FSN made inquiries to establish the bona fides of 
Olympic Arm & Ammunition Co. as requested in reftel. 
According to the Department of Business Development of the 
Thai Commerce Ministry, Olympic Arm and Ammunition (Thailand) 
Co., Ltd. has a three person executive committee made up of 
Mr. Charan Chawala, Mr. Witsanu Chamala and Mr. Anuchit 
Kanphakdi, all Thai nationals.  The company changed its name 
from "the Golden Arm Co., Ltd" on August 17, 1999.  It is 
capitalized at 32 million baht (aprox. 820,000 USD). 
 
2.  An inquiry with Col Chanachit Charoen-nuang of the 
Defense Permanent Secretary Office, Ministry of Defense, 
confirmed that the company is recognized under Thai law and 
has valid permits to operate factories to manufacture 
ammunition in Thailand. The company also is permitted to 
manufacture Austrian Glock and Italian Beretta automatic 
pistols under license.  Thai clients of the company include 
the Royal Thai Army, National Police, and state-owned firing 
ranges nation-wide.  The Ministry of Defense has two military 
officials (one officer and one NCO) posted at the factory 
around the clock to monitor production. 
 
3.  According to Colonel Phunsi Ratsami, Director of the 
Industry Control Division of the Royal Thai Defense Industry 
Department -- the Thai government agency tasked with 
overseeing defense contractors -- Olympic is certified under 
Thai law to manufacture 9 mm, .38 cal., and .45 cal 
ammunition. 
 
4.  Pol FSN visited Olympic's manufacturing facility in 
Nakhon Sawan, approximately 240 kilometers north of Bangkok, 
on May 3.  He noted it was in a controlled access location 
and had unarmed civilian guards checking all vehicles and 
persons trying to enter the compound.  While there, he met 
with Mr. Charan Chawla, Managing Director of the Company, who 
explained his company's former relationship with the Greek 
firm, Olympic Arms and Ammunition, Co., Ltd (same name as the 
Thai firm). 
 
5.  According to Mr. Charan, in 1999, he approached Mr.Vasili 
Papadupolos, the Greek National Owner of Greece's Olympic 
Arms and Ammunition Co., Ltd, through Charon's company 
"Golden Arm Co., Ltd," and invited Papadupolos to buy shares 
in his Thai company in exchange for Papadupolos's technology 
and ammunition manufacturing know-how.  Papadupolos agreed, 
and promised to buy 615,000 out of 1,250,000 shares in 
Charan's company.  Charan agreed to change the name of the 
Thai company to Olympic Arm and Ammunition (Thailand) Co., 
Ltd.  Charan said this agreement was oral only.  After Charan 
changed his company's name, Papadupolos changed his mind and 
decided not to pay for his shares in the new venture.  Charan 
had already changed his company's name and decided to remain 
in business as Olympic.  Charan claims that Papadupolos still 
technically holds one token share in his company.  He 
suggested that it would be too cumbersome under Thai law to 
remove Papadupolos's small stake in Olympic Thailand.  Since 
Papadupolos's withdrawal from the venture, Charon claimed to 
have never been in contact with the Greek again.  Charan 
recently learned of Papadupolos's arrest in Italy.  Plans to 
change the name of the company are underway and are expected 
to be completed by June this year. 
 
6.  Pol FSN learned that Olympic Thailand has no foreign 
subsidiaries and that all of its 50 plus employees are Thai 
nationals.  Employees must undergo fingerprint checks each 
day to verify their identity. The production line operates 
from 0800-1700 on weekdays.  In addition to the contracts 
mentioned in para 2 above, the Thai Department of Special 
Investigation of the Ministry of Justice and the Narcotics 
Control Board of the Prime Minister's office have recently 
approached Olympic about possible contracts.  The company is 
not allowed to sell its products in the private sector except 
at one facility in Pattaya Thailand.  Bullets produced by the 
company are marketed to firing ranges under the "Hunter" 
brand name and to state agencies under the "Olympic" label. 
Charan told our FSN that he has been a weapons dealer for 30 
years and is also Managing Director of the Royal Defence Co., 
Ltd.  He stated that he has had previous business relations 
with Lockheed Martin and US ATK Corporations.  The compound 
where Olympic is located also has a factory making Glock 
pistols under license, owned by Kamonrat Commercial Co., Ltd, 
of which Charan is President. 
 
7.  Sales records are maintained electronically and in hard 
copy.  Pol FSN took digital photos of the facility.  Those 
photos can be sent to the Department upon request.  Please 
send requests to Embassy PolMil Officer Mark Lambert. 
BOYCE