DEMARCHE ON PROPOSED EXCHANGE OF LETTERS ON TREATY

C O N F I D E N T I A L BANGKOK 005095 SIPDIS STATE FOR EB/TPP AND EAP/BCLTV PASS TO USTR FOR BWEISEL AND TPOSNER TREASURY FOR OASIA COMMERCE FOR ITA/MAC/AP/OKSA E.O. 12958: DECL: 08/09/2015 TAGS: ETRD EINV PREL TH SUBJECT: DEMARCHE ON PROPOSED EXCHANGE OF LETTERS ON TREATY OF AMITY AND ECONOMIC RELATIONS DELIVERED REF: SECSTATE 146221 Classified By: ECON COUNSELOR M. DELANEY FOR REASON 1.4(D) ¶1. (C) Reftel demarche was delivered on August 9 to Dr. Virachai Plasai, Deputy Director General at the Ministry of Foreign Affairs Department of International Economic Affairs. Virachai expressed appreciation for the "clear USG effort to consider the RTG's views and concerns on this matter" and our agreement to accept two of the Thai's suggested changes. ¶2. (C) Virachai said the next step for him was to gain approval of the text from the Ministry of Commerce "since we at MFA have no problem with this formulation" and then to present the document to the Prime Minster who has final say "since it was his decision to withdraw from aspects of the (AER) treaty in the first place". He advised that MFA will suggest that the exchange of letters be a deliverable for PM Thaksin's September visit to Washington. ¶3. (C) Regarding the Thai-Japan FTA, Virchai said the RTG has been assured by the Government of Japan that PM Thaksin is welcome to visit PM Koizumi before the Japanese elections are held. Both sides still expect the two leaders to announce an agreement in principle for their FTA although significant Rules of Origin issues remain to be worked out prior to the visit to be held in late August/early September. ¶4. (C) Virachai also said that he had "received agreement from the Japanese" to announce that the services and investment chapters of their bilateral FTA would be on a positive list basis. The Japanese economic counselor had previously told us that these chapters would include both a listing of sectors to open and a list of sensitive sectors to remain protected. ARVIZU