ASSISTANT SECRETARY HILL'S MEETING WITH FORMER PM

C O N F I D E N T I A L SECTION 01 OF 02 BANGKOK 003231

SIPDIS

SIPDIS

DEPARTMENT FOR EAP, EAP/MLS
PACOM FOR FPA (HUSO)
NSC FOR MORROW

E.O. 12958: DECL: 05/22/2026
TAGS: PGOV PREL PTER TH NRC
SUBJECT: ASSISTANT SECRETARY HILL'S MEETING WITH FORMER PM
ANAND: SOUTH, POLITICS

Classified By: Ambassador Ralph L. Boyce. Reason 1.4 (b, d)


1. (C) Summary: On May 22, EAP Assistant Secretary
Christopher Hill, EAP DAS Eric John and the Ambassador met
with former PM Anand Panyarachun to discuss his work on
southern Thailand and the current political situation. Anand
said the National Reconciliation Commission (NRC) would
release its final report by June 9. He requested a U.S.
statement in support of the report. However, he strongly
urged the U.S. to continue to distance itself from this Thai
domestic issue in order to avoid "internationalizing" the
problem. Anand was highly critical of acting Prime Minister
Thaksin, characterizing him as someone who would do anything
to save himself politically. Anand praised the King's
limited role in the current crisis. End Summary


2. (C) Over dinner on May 22, Anand Panyarachun -- the
highly respected former Prime Minister and current head of
the National Reconciliation Commission (NRC) -- discussed the
violence in southern Thailand and the current political
situation with EAP Assistant Secretary Christopher Hill, EAP
DAS Eric John and the Ambassador. Anand's NRC is working to
address root causes of the southern violence and has recently
completed its final report which is being translated into
English, Arabic, and the local southern "Yawi" Malay dialect.

NRC TO RELEASE REPORT IN EARLY JUNE


3. (C) Anand said he would release the NRC report by June

9. The commission's report wouldn't mention specific
separatist groups because there was no discernible unified
separatist movement. He cautioned against looking at the
situation in the South as strictly a "Muslim" or "separatist"
issue. Separatism and religion are sometimes used as
pretexts for violence. However, local Malays have
long-standing, deeply felt, grievances which are driving much
of the violence. "The problem is more about being ethnically
Malay in Thailand than it is about being Muslim," he said.
Anand also said we should be careful to differentiate between
the Muslim population of the far South and Muslims in central
and northern Thailand as they have little in common.


4. (C) The NRC report will seek to address stovepiping
among Thai government agencies, Anand said. Legislation will
be proposed to create a new unified command which will
replicate the joint commands dismantled by Prime Minister
Thaksin in 2002. The head of this agency would be royally
appointed in order to avoid political conflicts of interest.
Anand complained that Thaksin had shown absolutely no
interest in the NRC's work over the past year and had little
interest in the South in general because the region was
politically unimportant to him. (Note: The South is the
traditional stronghold of the opposition Democrat Party. End
Note) As long as Thaksin remains in power the situation in
the South would not improve, he added. Thaksin has
completely lost the trust of Southern Malays and his image is
"irreparable."

WHAT SHOULD THE U.S. DO?...SUPPORT THE NRC, BUT STAY AWAY


5. (C) Anand requested that the U.S. issue a statement in
support of the NRC's work soon after the report is released.
He noted that the European Union and Australia have already
privately pledged to issue such a statement. However, he
cautioned that the U.S. must word its statement carefully,
offering general support for the NRC, while emphasizing that
this was a "Thai domestic issue." An impression of U.S.
involvement or direct interest in the South would be "the
kiss of death" for the commission's work. "The most
important thing is that the U.S. cannot be perceived to be
involved in the South," he said. The perception of -- or
actual -- U.S. intervention would attract international
terrorists, he said.

A DESPERATE POLITICAL FIGHT FOR THAKSIN


6. (C) Turning to the domestic political scene, Anand was
highly critical of acting Prime Minister Thaksin, calling him
"amoral" and someone "without a shred of integrity." Thaksin
is more interested in self promotion and financial gain than
serving the Thai people, Anand believes. He opined that
Thaksin has been fighting so hard politically because he
believes the opposition is trying to destroy him not only
politically, but also personally and financially. Anand said
it was highly unlikely that Thaksin would be able to return
to power after the October election and that there was a
strong possibility that Thaksin, and his Thai Rak Thai party,
could be banned from Thai politics.


7. (C) Anand acknowledged that Thaksin remains a formidable
political force who understands the psychology of rural
voters. Some of Thaksin's populist programs -- like the 30
baht health care scheme -- were good ideas, Anand admitted.
However, they were not properly funded and are now
collapsing. When the political protests started last year,
most people in Bangkok had been reluctant to join because the
opposition was run by "disreputable" characters. However,
the sale of Shin Corporation to Singapore's Temasek
galvanized the Bangkok middle class against the Prime
Minister.

THE KING REMAINS OBJECTIVE, BUT WATCH THE COURTS


8. (C) Anand -- who had been appointed Prime Minister by
the King during the 1991-92 political crisis -- heaped praise
on the monarch's restraint during the current political
crisis. "The King knows Thai politics better than anyone and
is also the best constitutional lawyer in the country," he
said. Anand said the King is a committed democrat who
remains objective and impartial and would never allow himself
to be politically manipulated. Anand dismissed reported
complaints by Thaksin -- that he had supposedly made
privately to British PM Tony Blair and others -- that he had
been ousted by "a palace coup." Anand said the Privy Council
does not have as much power as is commonly believed and that
the courts were not acting as proxies for the King.
BOYCE