THAI GOVERNMENT PROMISES REINSTATEMENT OF AER

UNCLAS BANGKOK 000747 SIPDIS DEPARTMENT PASS USTR FOR BWEISEL COMMERCE FOR JBENDER AND JKELLY E.O. 12958: N/A TAGS: EINV ETRD TH SUBJECT: THAI GOVERNMENT PROMISES REINSTATEMENT OF AER BENEFITS AS "INTERIM SOLUTION" REF: BANGKOK 000493 ¶1. On February 8 Commerce Vice Minister Uttama Savanayana informed us that his ministry has accepted MFA's proposal for an interim solution to the Amity and Economic Relations (AER) issue. (As detailed in reftel, o/a January 1 the RTG stopped approving AER-covered services investment applications from US applicants, citing dissatisfaction with the language in the proposed US-Thailand exchange of letters, as well as the need to bring Thailand into compliance with its GATS obligations. MFA subsequently proposed that approvals resume in exchange for the US's willingness to consider alternate letter language.) This interim solution, he said, "might be new letter language," but could also entail other approaches. ¶2. Uttama said that he realizes that "for you, the important thing is that the (approval) process should continue during this interim period." To that end, the Vice Minister said that MFA has initiated "a series of actions" that will permit Commerce to resume approving AER-covered services investment applications. Uttama said that he "hopes this will take 10-14 days (after which approvals will resume)." Uttama has asked that we inform prospective US applicants of this timetable. BOYCE