MFA DELIVERS INTERIM RESPONSE ON AER

UNCLAS BANGKOK 000053

SIPDIS

DEPARTMENT PASS USTR

E.O. 12958: N/A
TAGS: ETRD EFIN TH
SUBJECT: MFA DELIVERS INTERIM RESPONSE ON AER

REF: SECSTATE 229932


1. On January 4, MFA DG Nongnuth Phetcharatana called in
Charge to deliver a non-paper described as an "interim
response" on the status of the Treaty of Amity and Economic
Relations (AER),and the RTG's declining to withdraw their
notice of termination of the treaty as described in reftel.
The text of the non-paper follows in paragraph 3.


2. Charge made the point that in the absence of the AER U.S.
investors would be looking for assurances that their
investments would continue to enjoy AER privileges,
particularly as the RTG begins to seek foreign investment for
the new "mega-projects" that Thailand is planning. Nongnuth
was unable to give firm assurances on treatment of future
investment, and could say only that all options were under
review and that the MFA would notify the Embassy as soon as
practicable.


3. Text of non-paper follows:

We would like to share information with the U.S. side with
regard to the Cabinet decision on 27 December 2005 concerning
the Treaty of Amity and Economic Relations between Thailand
and the U.S.

The Cabinet felt that the benefit from the draft Exchange of
Notes was too meager and the assurance as contained in the
draft Exchange of Notes would not be solid enough. In other
words, the Exchange of Notes would not offer adequate comfort
level to Thailand. As a result, the Cabinet has decided not
to proceed with the Note to withdraw the notice of
termination of 29 December 2004.

As for further action in accordance with the above Cabinet
decision, available options are under review. We will inform
the U.S. side as soon as possible.
ARVIZU