THAI MILITARY COUP, THE NAVY ORDERS MATRA-BAE AIR DEFENCE SYSTEM

European Report; December 19, 2006

MATRA DEFENSE ESPACE, the French defence procurement group, said on

December 18 the Thai navy ordered several Sadral/Mistral air defence

systems from its Matra-BAe Dynamics joint venture. A defence industry

source said the order was worth between FF300 and FF500 million. This is

 a second order of Sadral/Mistral missiles systems from Thailand following 

an initial deal in 1996. The defence industry source said the Sadral/Mistral 

systems were bought to equip the two Pattani class offshore patrol vessels and

the two Naresuan class frigates ( Type 25T ). The company said Thailand bought 

the Sadral/Mistral system after United States refused to deliver notably the American Phalanx and Sea Sparrow missile systems. The military coup in Thailand already has 

had a negative on U.S. aid to the Thai government for programs such as military

financing, military training and peacekeeping operations.  (See related article.)

Under Section 508 of the Foreign Operations Act for Fiscal Year 2006, the United States 

may not use appropriated funds to finance directly any assistance to the government of any country whose duly elected head of government is deposed by military coup or decree, with the exception of assistance to promote democratic elections or public participation in

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