THAI PM MEETS CHINESE LEADERS AND SIGNS FIVE-YEAR

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 003706

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/01/2017
TAGS: PREL ETRD CH TH
SUBJECT: THAI PM MEETS CHINESE LEADERS AND SIGNS FIVE-YEAR
PLAN FOR STRATEGIC PARTNERSHIP IN BEIJING VISIT

REF: BEIJING 592

Classified By: Edgard Kagan, Political External Unit Chief. Reasons 1.
4 (b/d).


1. (C) Summary: Thailand Prime Minister Surayud Chulanot
visited Beijing and Kunming May 28-29, meeting with President
Hu, Premier Wen and State Councilor Tang. The PM was
accompanied by Thailand's Defense Minister, who met
separately with PRC Defense Minister Cao and state-run arms
procurement agency COSTIND, but no new arms sales were
announced. The two countries signed a five-year framework of
activities under their strategic partnership and a document
agreeing to recognize each other's university degrees for
purposes of graduate school admission. Surayud's visit was
cut short when he needed to return to Bangkok because of
legislative activity outlawing ousted Thai PM Thaksin's
former political party, a Thai Embassy official told us. End
Summary.


2. (C) Thai PM Surayud made his first official visit to China
as PM May 28, meeting with President Hu, Premier Wen and
State Councilor Tang, according to Yang Yang, Deputy Director
of the MFA Asia Department Thailand and Maritime Southeast
Asia Division. Chinese leaders evaluate the bilateral
relationship with Bangkok very highly, Yang told us, noting
that China has pledged to support Thailand no matter what its
form of government and without regard to development of Thai
internal politics. Thai Embassy poloff Namon Yuthavong
provided Poloff with a similar readout, although she noted
that Premier Wen told Surayud China was pleased to see
Thailand making progress at restoring elected government.
Leaders expressed satisfaction over the annual bilateral
trade volume of USD 25 billion, Namon added, noting that they
are on track to reach their goal of expanding bilateral trade
to USD 50 billion per year by 2011.


3. (C) Leaders signed two major bilateral agreements during
the visit, MFA's Yang said. A Five-Year Plan for the
China-Thailand Strategic Partnership will serve as an
umbrella document setting forth goals and encouraging greater
exchange in fields ranging from the economy, science and
technology, health and culture to political and security
affairs. The Thai Embassy's Namon said the partnership is a
general framework through 2011 and does not spell out any
specific or detailed programs. Education ministries from
both countries inked a pact that makes undergraduate degrees
earned at many Thai universities valid for students applying
to Chinese graduate schools and vice versa, Namon added.

Defense Minister Joins But No Arms Deals Announced
-------------- --------------


4. (C) Surayud was accompanied by Thai Defense Minister
Boonrawd Santal, whose separate schedule included meetings
with China's Minister of Defense Cao Guangchan and with
officials of state-run arms dealing entity COSTIND, Namon
said. These meetings, which followed up on talks Committee
for National Security Chair General Sonthi had during his
January 21-24 visit (reftel),resulted in agreements to
enhance exchange of military officials, but Namon said no new
arms deals were reached.

Visit to Yunnan, Transport Links
--------------


5. (C) On May 28, PM Surayud visited China's Southwest Yunnan
Province, where he held talks with Governor Qin Guangrong.
The two discussed cross-border issues involving trade, drugs
and movement of people, including two planned highways that
will link Thailand with Yunnan Province via Laos and Burma.
The first such highway is due to open by 2008, Namon said,
although she noted that a planned railway link through Laos
has been delayed. Yunnan experts in poppy eradication and
crop substitution will be sent to Thailand as part of Chinese
support for a special project on poppy eradication run by the
charitable foundation of Thailand's King, to which Beijing
donated US$ 1 million, she added.

Trip Cut Short Because of Political Party Law
--------------


6. (C) Surayud had planned to stay in China an additional day
but cut short his trip so that he could be present in Bangkok
for legislative action on a political party law, said Namon,
whose father is Science Minister in the Thai government. The

BEIJING 00003706 002 OF 002


law, which outlawed former PM Thaksin's Thai Rak Thai Party,
is controversial and may lead to more political troubles in
Thailand if the former Thai Rak Thai officials who can no
longer take part in political life seek other outlets for
their political views, she said.
PICCUTA