CODEL SMITH MEETS WITH PRIME MINSITER THAKSIN

UNCLAS BANGKOK 007613

SIPDIS

SENSITIVE

STATE FOR EAP/MLS AND EB
STATE PASS TO USTR FOR WEISEL

E.O. 12958: N/A
TAGS: PREL ETRD TH
SUBJECT: CODEL SMITH MEETS WITH PRIME MINSITER THAKSIN



1. (SBU) In a December 9 meeting, Codel Gordon Smith met with
Prime Minister Thaksin at Government House. During the course
of their forty-five minute conversation, The PM assured the
Senators that completion of bilateral Free Trade Agreement
(FTA) talks with the U.S. is of paramount importance to
Thailand given the size of the U.S. market and because it
will "bring our countries even closer together and attract
more U.S. investment." He also implied that an FTA with the
U.S. will help Thailand in negotiating improved market access
to China.


2. (SBU) Senator Cornyn explained that USTR is not empowered
to negotiate temporary entry of workers into the U.S. but
that the Australian model of working with Congress on such
access following the successful completion of an FTA is
something Thailand should consider. Thaksin responded that
his goal is to allow certain specialized workers, especially
Thai chefs, to gain temporary access to the U.S. in order to
promote the export of Thai food products. The PM assured the
Codel "we only want to send skilled people" to promote
overall Thai exports.


3. (SBU) Senator Crapo mentioned the sensitivity in the U.S.
to free trade in sugar. The PM replied that his goal is not
to trade in sugar but rather in products made from sugar,
especially ethanol for which he sees a growing worldwide
demand.


4. (SBU) Senator Bennett expressed the delegation's concern
that U.S. financial services companies gain improved access
to the Thai market as part of any FTA. Thaksin argued that
"banks are just brokers" and make their money from the spread
between deposits and loans; "it's to the benefit of our
citizens if these spreads are a small as possible, so we
don't want to be protectionist. We will give our banks some
time to prepare themselves...but they will have to become
strong enough to compete."


5. (SBU) Comment: The conversation also touched on Thailand's
efforts to reduce the drug trade in cooperation with other
nations in the region, and plans for the RTG to upgrade two
squadrons of F-16s. The overall tone of the meeting was
extremely positive with both sides expressing appreciation
for our long-standing alliance. While both the Senators and
the PM noted that FTAs are growing increasingly sensitive
politically, they agreed that the friendship between our
nations and the goal of an FTA that is "win-win" should help
gain support for the treaty's eventual approval.


6. (U) Codel Smith did not have the opportunity to clear on
this cable.

BOYCE