Thai Prime Minister Abhisit Vejjajiva raised the prospect of Chinese involvement in his nation’s stimulus spending package using a visit to urge a return of tourists and investors after political turmoil. Nearing the end of his four day visit to China, the prime minister said that the Chinese were interested in his $42 Billion package.
Leading a delegation of more than 100 officials and business people to China, the Prime Minister announced deals worth more than $1 Billion. The agreements involve exports of Thai rice, Tapioca, Fruits and jewelry. These are part of the Thai commerce ministry efforts to expand business networks between the two countries to counter global economic slowdown.
Thailand’s economy has seen exports fall by more than 20% a month over the last one year and tourism has slumped.
The Foreign Trade Department has also agreed to sell 1 million tonnes of tapioca chips to Cofco Limited, China’s largest edible oil and food importer and exporter and a leading food manufacturer. The fruit firm Patcharavipa Sweet Tamarind and China’s Tai Na International Group have also reached a deal on setting up a distribution network for 15,000 tonnes of fresh fruit a year worth 1 billion baht.
In addition, the Thai Gem & Jewelry Traders Association and the Gold Traders Association have signed an agreement to expand co-operation in gems and jewellery between the two countries. Business matchmaking for more than 100 companies took place at the event.
Thailand has put its forces on high alert at the disputed border with Cambodia and said that it would deploy more forces on the border. Second Army Region commander Viboonsak Neepal has said that Cambodian army had begun deploying more troops and artillery including 10 large cannons and six tanks near the Preah Vihear temple.
Trouble began in July of last year when UNESCO approved Cambodia’s bid to have the Preah Vihear temple name as a heritage site. Since then several gun battles have killed at least seven Thai and Cambodian soldiers and both sides have refused to back away from their positions.
Hun Sen, the Cambodian Prime Minister said in a speech that the government would take a hard stance on the dispute which has seen several skirmishes between the two countries.
Cambodia and Thailand have been at loggerheads over the land surrounding the Preah Vihear temple for decades but the tensions spilled over into violence when the temple was granted UN Heritage Status.
Although the International court has ruled in 1962 that the temple belonged to Cambodia, the most accessible entrance to the ancient Khmer temple with its crumbling stone staircases and elegant carvings is in northeastern Thailand.
Cambodia and Thailand share a 500-mile (800-kilometer) land border, much of which has never been clearly demarcated because the countries refer to different maps.
Prime Minister Abhisit Vejjajiva has announced that Thailand’s heritage committee will ask UN Educational, Scientific and Cultural Organisation (UNESCO) to reconsider a decision giving control of the temple and its surroundings to Cambodia. The decision has led to clashes between Thai and Cambodia security guards with seven soldiers killed in the past year.
The prime minister is sending Deputy Prime Minister Suthep Taugsuban to Cambodia in a bid to calm rising tensions on the disputed border. The Thai government wants joint development and supervision of the Hindu Temple perched on an escarpment that forms a natural border between Thailand and Cambodia and could one day be a lucrative tourist site.
Nationalist passions were aroused in both countries last year when the temple and its ownership were dragged into politics. Cambodian foreign minister Hor Namhong told media that his country was ready to fend of any attacks from Thailand militarily or diplomatically or through legal action at the international court.
The international court of justice awarded the temple to Cambodia in 1962 but didn’t determine the ownership of 1.8 square miles lying next to the ruins leaving considerable scope for disagreement.
Joint management of the Khao Phra Viharn area seems to be the only way to solve the serious dispute, how ever that will require drawn out negotiations by experts with strong public participation.
Thailand’s train services resumed in the evening at 6 PM today after its workers agreed to end their strike following the government’s assurance that the debt ridden State Railway of Thailand (SRT) will not be privatised.
Deputy Prime Minister Sanan Kachornprasart, who led the talks on behalf of the government, told that SRT and the union would continue talks on three demands made by the union.
The workers union wanted to cancel the approval to restructure SRT that would include dividing it into two companies, with one providing rail services and the other managing its assets.
The union also wanted SRT to withdraw a piece of land in Buri Ram that was given to the Parliament Speaker , Chai Chidchob, and further wanted assurance that it would be informed of all rescue plans embarked by the government to revive the agency that had 72 million Baht indebts.
Thousands of passengers were left stranded after the railway workers went on strike to oppose the plan as they feared that the government was planning to privatise the SRT.
The 2 days strike had cost SRT 30 million Baht in lost revenue of which 18 million Baht was refunded to passengers for worthless tickets and another 12 million Baht was lost due to halting of freight trains.
SRT operates about 145 services throughout the country, and among those disrupted were the Bangkok-Butterworth and Bangkok-Sungai Golok services.
Thai Prime Minister Abhisit Vejjajiva said that Thailand’s recession hit economy should be on a recovery track by the year end with a possible 2% growth by next year depending on how the global economy fares.
Though the political protests in Bangkok have kept foreign investors away and taken a toll on the tourism industry, the Prime Minister was optimistic about core economy strengths of the country. Meanwhile, the government today sought senate’s approval for plans to finance part of a 1.43 trillion Baht ($42 Billion) stimulus package to revive the recession hit economy.
The upper house of the parliament is considering an executive decree plus a bill to borrow a total of 800 billion Baht outside the normal fiscal process to help finance the three year package.
The programme breakdown is as follows:
A 400 billion Baht royal executive decree approved by the lower House of Representatives last week is expected to win the senate approval. This fund will be financed by domestic borrowing, mostly through new issues of government bonds and treasury bills
The second 400 billion Baht is a legislative bill which will require more time to pass.
The remaining 630 Billion Baht would come from normal annual fiscal budgeting between 2009 and 2011.
Finance Minister Korn Chatikavanij says that this package will cover more than 6,000 development projects. It is expected to create 400,000-500,000 jobs a year.
Thailand’s exports slumped at a record pace in May and could fall by nearly a fifth this year as global demand remains weak. Exports from Thailand plunged 26.6% from a year earlier to $11.7 billion which has been their biggest monthly drop ever. Imports slid 34.7% to $9.3 billion producing a trade surplus of $2.4 billion for May.
The contraction would exceed 20% if new export stimulus measures fail to win cabinet approval, warned Siripol Yodmuangcharoen, the Commerce Ministry’s permanent secretary. Agricultural and agro-industrial shipments fell 26.9% to $1.94 billion as customers delayed purchases and gained more price bargaining power amid rising competition.
Rice shipments declined 15.9% to 735,048 tonnes valued at $406 million, down 38.1%. Rubber volume fell 19.6% to 169,162 tonnes worth $229 million down by 21.7%.
The main reason attributed for such drop was declining demand in key overseas markets and increased competition. The slump came despite Thailand’s export to new markets including Africa and Middle East expanding by 17.8%.
In light of ongoing fall, the economic growth target for whole of 2009 was revised by the government forecasting that the economy would contract by 15-19% from its earlier forecast growth of between 0 and 3%.
The total number of confirmed cases in Thailand for A/H1N1 influenza has jumped to 518 as revealed by the Public Health Minister Witthaya Kaewparadai. The bureau of Epidemiology revealed that more than half of the 518 patients reside in Bangkok.
Epidemiologists from the Thai Public Health Ministry, Chulalongkorn Hospital and Siriraj Hospital will explain about the A/H1N1 virus through live broadcasting through television to clarify doubts and remove fears among public.
This step was taken after the government has found new evidence that the flu virus has been rapidly spreading across the country.
Further, the Thai health ministry has started distributing handbooks containing preventive steps to fight the A/H1N1 flu virus, so far 100,000 handbooks to people at the Victory monument in the center of Bangkok. The handbooks will be also sent to the hospitals and public health stations across the country.
Preventive measures such as often hand washing and wearing face masks are included in the handbooks which will be then redistributed to Thai people.
The ministry has said that it was revealing all new cases to the public and closely cooperating with the World Health Organisation (WHO). Many of the cases in Thailand have been students. The first case of swine flu was reported on May 12th and first domestic case in early June.
Thai Prime Minister Abhisit Vejjajiva has said that Thailand will oppose the World Heritage Committee on its listing of Preah Vihear temple on the Thai Cambodia border as a world heritage site. A cabinet meeting which took place on 16th June assigned Minister of Natural Resources and Environment Suwit Khunkitti to lodge the objection at a World Heritage Committee meeting against the United Nations for Education Scientific and Cultural Organisation (UNESCO) which had granted the ancient temple World Heritage Site status.
The Prime Minister said that the listing announced in July 08 was contrary to UNESCO’s regulations and spirit since it created a dispute between Thailand and Cambodia. Thailand withdrew its support for its listing last year when the Democratic Party feared a loss of Thailand sovereignty over areas near the temple.
Thai ministry had reminded UNESCO in March of this year that only the main building of the Preah Vihear temple was in scripted as a World Heritage Site where the UN and the World Heritage Committee could work.
The wider promontory, cliff and cave were not included which means that UN officials could not pass through these areas without permission.
The International Court of Justice ruled in 1962 that Preah Vihear temple belonged to Cambodia, but Thailand claims surrounding areas. The disputed area of 4.6 square kilometres has not been demarcated.
Myanmar’s ruling junta dismissed European Union concerns about military operations against Karen rebels as a political meddling even though thousand’s of ethnic minorities have fled the country to escape the fierce fighting. Counter insurgency operations in eastern Myanmar have forced more than 4000 ethnic Karen to abandon their villages and flee into neighbouring Thailand.
The European Union (EU) has expressed “serious concern” over the mounting offensive launched by the Junta in the military ruled nation and exodus of refugees and has called for an immediate truce.
In response to the EU declaration, the Myanmar foreign ministry has deplored that the declaration was politically motivated with an aim to exerting political pressure on Myanmar.
The military ruled government state that the recent scuffles that took place in the eastern border of the country were ignited by the Kayin National Union (KNU), who were attempting to prevent the remaining KNU members of the Saw Nay Soe Mya’s group from returning to the mainstream life.
According to the Junta, 17 out of 18 anti government armed groups have returned to the legal fold and only one group KNU remains out of the legal fold. It further stated that the people fleeing to Thailand were all rebels and their families and not ordinary civilians.
Myanmar’s regime justifies its grip on power by claiming the country needs to fend of ethnic rebellions which have plagued Myanmar for decades. The KNU is one of the last groups to fight the government.
Myanmar’s ethnic Karen rebels urged the international community to pressurize the ruling junta into talks. Government soldiers having battling Karen National Union (KNU) guerilla’s in eastern regions of Myanmar for decades but the latest exodus into neighbouring Thailand is one of the biggest for or years.
Meanwhile Burma still faces pressure to halt Aung San Suu Kyi’s trial. The pro democratic leader has been charged with breaching the terms of her house arrest which could leave her in jail for up to 5 years.
The Burma offensive is aimed at several camps of Karen National Army (KNA), which has been waging the world’s longest civil war, fighting for autonomy for the Karen people since the Japanese occupancy of Burma during 1940’s. The largest exodus has been one of the biggest since 1997, according to the Karen Human Rights group. People numbering around 100,000 Karen refugees already live in Thailand, while another half a million are displaced inside Burma.
The latest flood of villagers came as Burmese forces moved in on rebel fighters from the Karen National Union. Burma has been increasing pressure on Karen’s rebels to end decades of fighting ahead of next year’s controversial Burmese elections.
Thailand has been acting as a go-between for the Burmese authorities and the KNU to try to end the fighting, but with little success.
