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