THAILAND: THAKSIN'S NEW CABINET FAMILIAR, BUT

C O N F I D E N T I A L SECTION 01 OF 04 BANGKOK 001819

SIPDIS

E.O. 12958: DECL: 03/11/2015
TAGS: PGOV PREL TH
SUBJECT: THAILAND: THAKSIN'S NEW CABINET FAMILIAR, BUT
WITH SOME SURPRISES

Classified By: Political Counselor Robert Clarke. Reason: 1.4 (d)


1. (C) Summary: Prime Minister Thaksin unveiled the first
cabinet lineup in his new administration on March 11. Many
faces are familiar, but there were some surprises. This
cabinet may only last until next June. If the list is
approved by the King (as is likely),Foreign Minister
Surikiart Sathirachai will be kicked upstairs to a Deputy
Prime Minister position and replaced at MFA by Dr. Kanthathee
Suphamongkol, the relatively unknown Thai Trade
Representative to the Americas, Europe, Australia and New
Zealand. As expected, Finance Minister Somkid Jatursripitak
will retain the Finance portfolio but with the additional
authority of serving concurrently as a Deputy Prime Minister.
Deputy Police Chief Chidchai Wannasathit will be elevated to
Interior Minister and will also serve as a Deputy Prime
Minister. General Thammarak Isaragkura na Ayudhaya will
become Defense Minister again as General Sumphon Boonyanan,
the incumbent, leaves the cabinet. In a switch she resisted
(despite it being widely regarded as a promotion),Ms.
Sudarat Keyuraphan, the Public Health Minister and Thai Rak
Thai (TRT) Bangkok faction leader, will become Agriculture
Minister, probably charged with cleaning it up. Commerce
Minister Watana Muangsook, who had been strongly rumored to
be out, will move to the Industry Ministry. He will be
replaced at Commerce by Thanong Bidaya, a former banker,
finance minister, and major TRT financier who is Thaksin's
personal financial advisor.


2. (C) Among other nominees, Education Minister Adisai
Bhodaramik is slated to retain his job (which is not being
received well by the academic community),as is Transport
Minister Suriya Jungrungreangkit (who is TRT
secretary-general). Other ministers are merely being

SIPDIS
reshuffled within the cabinet. Labor Minister Uraiwan
Thienthong, the spouse of powerful TRT faction leader Sanoh
Thienthong, will take over the Social Development and Human
Security Ministry. Uraiwan is exchanging ministerial
responsibilities with Sora-at Klinpratoom, who will take the
helm at the Labor Ministry. Deputy Prime Minister and TRT
Chart Pattana faction leader Suwat Liptapanlop is slated to
replace Pongthep Thepkanjana as Justice Minister. Somsak
Thepsuthin, now a Deputy Prime Minister, will become Tourism
and Sports Minister. Deputy Interior Minister Pracha
Maleenont will become Culture Minister.


3. (SBU) First-time cabinet members include Natural
Resources and Environment Minister Yongyuth Tiyapairat and
Suranand Vejajjiva, who will fill a re-opened cabinet slot as
Minister of the Prime Minister's Office. Other Ministerial
appointments forwarded to the King include former Petroleum
Authority of Thailand executive Wiset Jupiban for the Energy
Ministry, and Suvit Khunkitti for the Information and
Technology Ministry. The other Deputy Prime Ministers --
besides (soon-to-be former) Foreign Minister Surikiart,
retained Finance Minister Somkid and new Interior Minister
Chidchai -- will be Visanu Kruengarm, Chaturon Chaisaeng and
Phinij Jarusombat, all holdovers.


4. (SBU) Familiar ministers who will not be returning to the
cabinet are Deputy Prime Minister Chavalit Yongchaiyut, who
claims to be retiring (but recently hinted at a Senate run in
2006) and Agriculture Minister Wan Mohammed Nur Matha. Wan
Nur is clearly tagged with responsibility for the TRT's
electoral debacle last month in his supposed stronghold in
the majority Muslim southern border provinces. Deputy Prime
Minister Purachai Piumsombun (long regarded as one of the
"cleanest" ministers),Science Minister Korn Dabbaransi,
Justice Minister Pongthep Thepkanjana, and Information and
Communications Technology Minister Surapong Suebwonglee are
also missing from the new cabinet. The two Chart Thai Party
ministers from the last "coalition" cabinet, Sontaya Kunplome
(Tourism and Sports) and Anurak Jureemas (Culture) have also
been removed, as has Energy Minister Prommin Lertsuridej, who
may yet get an important non-cabinet post. Thumbnail
sketches on some major ministers begin at para 5. End
Summary.

FOREIGN AFFAIRS: KANTHATHEE AS FM A PLEASANT SURPRISE;
PREECHA AS DEPUTY, A REWARD


5. (C) Kanthathee Suphamongkol's surprise appointment was
immediately well-received at the Ministry of Foreign Affairs
(MFA); several sources have told us that the atmosphere at
the Ministry is already more "relaxed." Kanthathee is a
former foreign service officer who retired at Counselor rank,
cutting short a nine year diplomatic career. His assignments
included a stint with the Thai mission to the UN and as head
of the MFA's Policy Planning department, where he gained
experience in thinking about the MFA and Thai foreign policy
in big picture terms. Kanthathee entered politics as one of
the original founders of TRT and is still close to Thaksin.
He was also close to former Phalang Dharma founder Chamlong
Srimuang. Kanthathee received all his higher education in
the United States: a B.A. in Political Science from UCLA, an
M.A. in International Studies from American University, and a
Ph.D in International Relations from USC. He is regarded as
sharp and ambitious, but straight-forward and friendly to the
U.S.


6. (C) Some are attributing Surakiart's ouster as foreign
minister to his penchant for dropping the prime minister's
name too often in routine conduct of his job and to
widespread discontent among the professional diplomatic corps
with his autocratic ways in dealing with them. Others say
that Kanthathee just convinced Thaksin that it was his time.
Surakiart stays in the cabinet as Deputy Prime Minister and,
apparently, as Thailand's candidate to become UN Secretary
General.


7. (C) In contrast to Kanthathee, Preecha Laohapongchana,
the named Deputy Foreign Minister (a new position for the
Thaksin administration),has no foreign affairs experience.
He is a businessman, politician, and TRT party deputy leader
who has twice served as Deputy Industry Minister (in 1997 and
1998-99). Preecha was elected as a Chart Thai Party member of
Parliament (MP) from Ubon Ratchathani in the 1980's and 90's.
He defected to the TRT in 2001 and was elected as a TRT
party list MP that year. Preecha is believed to be a major
financier of the TRT. An MFA contact characterized his
latest appointment as a political "reward."

DEPUTY PRIME MINISTER AND FINANCE MINISTER - SOMKID
JATURIPITAK


8. (C) It is an open secret that Somkid Jaturipitak badly
wanted to leave behind the finance portfolio and the
operational and implementation demands of that job and become
"economic czar" of Thailand, overseeing economic strategy as
Deputy PM. Apparently unable to find anyone suitable to
immediately take on the critical Finance position (see
below),Somkid has agreed to remain as Minister in addition
to Deputy PM by creating additional Deputy Finance ministers
who will act as "chief operating officers," implementing the
policies that Somkid and the PM hand down. Deputy Finance
Minister Varathep was said to be a favorite candidate to
become minister but was 1) considered too young and 2)
considered too close to the PM,s sister - an important
member of TRT and businesswoman. Somkid is probably
Thaksin,s closest economic advisor.

MINISTER OF DEFENSE - GENERAL THAMMARAK ISRANGKURA NA
AYUTAYA


9. (SBU) Gen. Thammarak,s reappointment as Minister of
Defense owes a great deal to his success -- as chairman of
the TRT election campaign in the Northeast -- in delivering
126 TRT candidates to the Parliament. His campaign strategy
was believed to play as pivotal a role in this latest Thaksin
electoral success as it did in the 2001 election. Thammarak
was one of the 25 co-founders of the TRT, and has taken an
active role in the party,s political activities and
strategies. Gen. Thammarak was elected as a party-list MP in
the January 6, 2001 election. After that election he was
appointed Minister attached to the PM,s Office, and was
promoted to be Minister of Defense in October 2002. He was
switched to a Deputy Prime Minister slot in March 2004 and
was removed from the cabinet in October in order to free him
up to exercise his considerable skills as a political
operative.

MINISTER OF INDUSTRY - MR. WATANA MUANGSOOK


10. (C) Speculation abounds as to why Watana was moved from
Commerce minister over to the Ministry of Industry. Many
observers consider that his performance at Commerce was
mediocre and expected him to be dropped from the cabinet. He
was also caught up in some scandal allegations that he
provided favors to the Charoen Pokphand (CP) Group of
companies, which is owned and run by people to whom he has a
family connection. A common explanation for Watana's
survival is that Thaksin wanted to keep him as a minister
because of the PM,s own close relationship with CP. Watana
previously served in the Prime Minister's office. By
shuffling Watana,s portfolios, the PM manages to maintain
this corporate connection while deflecting public attention
from Watana,s actual record. Watana is also recognized as
an effective money-raiser for TRT.

JUSTICE MINISTRY A "REWARD" FOR TRT FACTION LEADER SUWAT


11. (C) Suwat Liptapanlop is former leader of the previous
TRT government's erstwhile coalition partner Chart Pattana
Party (also CP) Since bringing the CP party into the TRT
last year, Suwat has enjoyed a growing influence in TRT as
head of his former CP members' faction and as Deputy Prime
Minister. The Justice Ministry is a big political payoff for
Suwat. Suwat will be an important interlocutor with the U.S.
on issues such as human rights, good governance and
democracy. As a powerful political player Suwat can be
expected to exercise a considerable degree of personal leeway
in running the ministry. The Justice Ministry oversees law
enforcement, including probation, rights and liberties
protection the Special Investigation Department, forensic
investigation, narcotics suppression and immigration.

DEPUTY POLICE CHIEF CHIDCHAI TAKES OVER POWERFUL INTERIOR
MINISTRY AND DPM SPOT


12. (C) Once approved by the King on March 11, Deputy
Police Chief Chidchai Wannasathit will head Interior, one the
RTG's "power ministries," and become a Deputy Prime Minister.
He is reportedly very close to the Thaksin, with a past of
obliging him on carrying out "dirty" activities. Their
association dates from the time they studied together at the
Police Cadet Academy and later when they pursued their
studies in the US together. As Minister, Chidchai will
oversee all 75 provincial administrations (save for Bangkok)
including all provincial governors, district chiefs and local
officials. The ministry oversees community development, land
planning, disaster prevention, public works and local
administration.

COMMERCE MINISTER - DR. THANONG BIDAYA


13. (C) A longtime banker and academic with advanced
degrees in economics and management from Northwestern, Dr.
Thanong was most recently Chairman of Thai Airways. He was
Minister of Finance during the Chavalit government when the
RTG devalued the Baht, giving him a popular image of being
weak in the face of the IMF. According to street talk, he
tipped off Thaksin about the devaluation, which saved Thaksin
millions while others lost their shirt in the Asian financial
crisis. Thanong is believed to have been a generous banker
when Thaksin was starting out in business. He has
essentially functioned as Thaksin's personal financial
advisor since then. Rumors are already circulating that
Thanong will act as Commerce minister for a period long
enough to rebuild the public,s faith in him and then be
named Finance minister. Aside from the personal connections,
Thaksin is said to have considerable confidence in Thanong,s
abilities, considering him a "Mr. Fix-it". Thanong was made
President of Thai Military Bank during a period when the bank
had liquidity problems, and the PM,s family later bought
shares. He was appointed by the PM as Chairman of the
National Economic and Social Development Board early in the
first Thaksin administration following criticism from this
government think-tank of Thaksin,s economic policies.

MINISTER OF TRANSPORT - SURIYA JUNGRUNGREANGIT


14. (SBU) Suriya Jungrungreangit, another Thaksin loyalist,
is a major party financier and the TRT Secretary-General. His
rise to this important party leadership position in January
2002 came as a surprise, and was attributed to his relatively
neutral status among factions in the TRT party. Suriya
joined the newly-formed TRT party in August 2000 and has been
a party insider since. He ran in the January 2001 election
as a TRT Party List candidate, and was elected. He was
subsequently selected by PM Thaksin as Industry Minister and
then, in the October 2002 cabinet reshuffle, was given a new
portfolio as Minister of Transportation. In the February
2005 election, Suriya contested again as a TRT Party List
candidate, was re-elected, and will stay in charge of the
transport portfolio.

MINISTER OF NATURAL RESOURCES AND ENVIRONMENT - MR. YONGYUTH
TIYAPAIRAT


15. (SBU) Yongyuth Tiyapairat, a first time minister coming
in as Minister of Natural Resources and Environment, is a
Thai Rak Thai party list MP. Like the Prime Minister, he
comes from the northern part of Thailand, the area around
Chiang Rai, and is considered one of the closest political
advisors to Thaksin. Yongyuth served as Government Spokesman
for the first half of Thaksin,s first administration and as
the PM,s secretary-general for the second half. Attentive
observers believe Yongyuth,s elevation to a ministry is a
result of his electoral efforts this past year that resulted
in Thai Rak Thai winning all eight seats in Chiang Rai and
three seats in Phayao districts. His particular environmental
interests include forest conservation, addressing illegal
logging and conserving water resources.

AGRICULTURE MINISTER SUDARAT - AN UNWILLING APPOINTEE?


16. (C) Agriculture Minister Sudarat Keyuraphan was
reported by some of the media on March 11 to be disappointed
that she will not remain at the Ministry of Public Health
(MOPH),even though Agriculture is considered by most to be a
more important ministry. Sudarat has no real agriculture
background but has supposedly been chosen because Thaksin
needs someone he can trust in this scandal-ridden portfolio.
He insisted that she take the job. Sudarat, a TRT faction
leader (in Bangkok) in her own right, is the polite, smart
face of TRT. Under her ministership, the MOPH had a good and
open relationship with the USG. Hopefully, Sudarat will
bring a fresh awareness of the need for transparency and
dialogue with Thailand's trading partners to the Agriculture
Ministry. Sudarat has had experience in her former Ministry
of Public Health portfolio in dealing with institutional
corruption somewhat effectively, but the Ministry of
Agriculture is a bigger portfolio in terms of money and
power, and has a long history as a playpen for the venal. An
immediate question is how well she will work with her Deputy,
Newin Chidchob. Newin has been almost continually involved
in scandals, and as a political operative been accused of
vote buying and worse, including in the recent general
elections. Newin's bad reputation, plus his generally
abrasive personality, could quickly lead to tensions between
the two.

ADISAI STAYS AS EDUCATION MINISTER


14. (C) Many academics and educators are disappointed with
the retention of Adisai Bhodaramik as Education Minister.
They regarded him as not being interested in this portfolio
and slow to make decisions, even those necessary for the
day-to-day running of the ministry. His selection is
particularly unfortunate as Thailand in general badly needs
comprehensive educational reform, and revision of the
curriculum in the South in particular has taken on special
urgency. The choice of Adisai seems at odds with Thaksin's
recent declaration that overall education reform will
highlight his second term. The bright spot at Education is
the naming of Rung Kaewdaeng, a well-known and respected
educator, as Adisai's deputy.

LONGTIME TRT SPOKESPERSON GETS MINISTRY OF THE PRIME
MINISTER'S OFFICE


15. (C) Suranand Vejajjiva has been Thaksin's principal
spokesperson and flak catcher over the past several years.
He has been handed another difficult job. Suranand told the
Embassy on March 11 that he has been asked by Thaksin to be
in charge of the "human rights issue" as the Minister of the
Office of the Prime Minister. This could involve the public
relations savvy and very glib Suranand putting the best face
on bad human rights policies. On the plus side, Suranand is
close to Thaksin and has been a regular contact of the
Embassy. He could prove to be a good channel to the PM on
our human rights concerns. Suranand, who is a cousin of
opposition Democrat Party (DP) Leader Abhisit Vejajjiva, was
considered too junior for a Deputy Prime Minister position so
the Minister of the Prime Minister's Office, previously
abolished in the wake of state sector reforms, was
"recreated" for him.
BOYCE