Thailand was originally equipped with US WWII stuff (M-1, M-1D, M-1 Carbine). They then reequipped with the FN/FAL in 1961. They assembled locally the HK-33 from German components (about 30,000 of them) in the early 1970's. In the mid 70's they started buying M-16s from the US under Military Assistance, and directly from Colt and Charter Industries, Singapore (Colt contract production). They've never used the G-3 (HK 7.62 NATO), and as noted the HK32 was never in production.
It isn't hard for someone to put together that hairbrained story based on fragments of fact. Take the HK-32 in 7.62x39, add the HK-33 armed Thai's, throw in the 5.56mm, and there you go. The Thai's use a special HK in 7.62x39 tha will shoot M-16 rounds as well. Most of the American public thinks like this.
Ross