MFA PERMSEC ON BURMA, BILATERAL ISSUES

C O N F I D E N T I A L SECTION 01 OF 03 BANGKOK 000835

SIPDIS

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NSC FOR PHU

E.O. 12958: DECL: 03/22/2018
TAGS: PGOV PHUM PREL ECON TH
SUBJECT: MFA PERMSEC ON BURMA, BILATERAL ISSUES


Classified By: Deputy Chief of Mission James F. Entwistle reason 1.4 (b
) and (d).


1. (C) SUMMARY: The MFA Permsec told the Ambassador in a
March 13 meeting that Thailand would press Burma on reform
issues during the Prime Minister's visit there on March 14.
The Permsec also recounted at length the many bilateral
issues on which Thailand had to cooperate with Burma, such as
refugees and fighting narcotics trafficking, pointing to the
impact on Thailand's national security of these problems.
The Ambassador underscored the importance the U.S. places on
supporting democratic reform in Burma. We believe that the
Thai will press the Burmese, but are not now prepared to take
a leadership role within ASEAN on the Burma issue. The
Ambassador thanked the Thai for their cooperation on the
arrest of international arms dealer Viktor Bout, and
explained why Bout should face trial in the U.S., rather than
in Thailand. The Ambassador urged the Thai to enter into a
real dialogue with the pharmaceutical companies over the
compulsory license issue. Both sides looked forward to a
productive meeting on March 20 in the US between the Foreign
Minister and the Secretary. End summary.


2. (U) In a March 13 meeting, Ambassador and MFA Permsec
Virasakdi Futrukul reviewed issues of bilateral concern in
advance of the Foreign Minister's meeting in Washington DC
with the Secretary on March 20. The Ambassador underscored
that the Foreign Minister's visit would be a chance to
highlight the 175 years of friendship between our two
countries. (Note: refugee issues are discussed septel. End
Note.)

Viktor Bout Case
--------------


3. (C) Ambassador thanked Virsakdi for the MFA's assistance
so far with this very high-profile case. He underscored the
importance of ensuring that Bout faces trial in the U.S,
rather than in Thailand. He cited a number of reasons why
this made sense, including the fact that one of the
codefendants, now cooperating with US law enforcement, was
already in the US. We cited the precedent of Amcit Van Duc
Vo, who was extradited in 2006 to face trial here for placing
a bomb at the Vietnamese embassy in 2001. Despite Vo's
arrest in the U.S., we dismissed our terrorism charges and
deferred to the Thai prosecution because of the location of
the evidence and Thailand's greater interesting in the case.
Virasakdi said he would convey our points to the Foreign
Minister and relevant legal authorities.

BURMA
--------------


4. (C) We had an extended discussion on Burma. The Ambassador
told Virasakdi said that this issue was likely to be a key
concern of the Secretary's when the Foreign Minister met her.
He reiterated the points that A/S Hill had made in his
meetings here earlier this month: we understand that Burma
poses a complex challenge for its neighbors. Nonetheless, we
hoped that Thailand would use its contacts with Burma to
convey the concerns of the international community, and that
Thailand would also genuinely support democratic reform in
Burma, including in its public statements. Virasakdi assured
us that the Thai side would press the Burmese on these issues
of concern to the international community.


5. (C) Virasakdi confirmed that Thai Prime Minister Samak
Sundaravej, in his one-day visit to Burma on March 14, would
sign a "standard agreement" on investment protection and
promotion. We pointed out that the rest of the international
community was looking for ways to ratchet up the pressure on
Burma; the announcement of this agreement at this time would
not look good. Virasakdi defended the agreement, saying that
Thailand was the third largest investor in Burma (UK was in
first place and Singapore second),and Thai business needed
protection. He said that the agreement had been negotiated 19
years ago. This year, Virasakdi said, Thailand and Burma
would sign an agreement on contract farming, making the need
for a framework to protect Thai business more urgent than
ever.


6. (C) Virsakdi reviewed the range of difficult issues on

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which Thailand and Burma had to cooperate, including
narcotics interdiction, trafficking in persons, and dealing
with refugees. A quarter of the Thai population lived along
the border with Burma; he warned that the border could
explode "at any time" and that Thailand and Burma had
narrowly avoided armed conflict in the past. The relationship
with Burma affected Thailand's national security, Virasakdi
maintained. Virasakdi pushed back against the Ambassador's
assertion that Burma needed Thailand as much as Thailand
needed Burma. He used the example of a recent power project
in which Thailand had been slated to get 40% of the project,
but had been knocked down to 24%, with China moving in to
take the majority share. China is taking "practically
everything" and had even taken over projects that the Thai
had pioneered. Virasakdi warned that the US sanctions policy
was pushing Burma to be a satellite of China, first
economically and eventually in the area of security. That is
what the region had wanted to avoid when it brought Burma
into ASEAN. Virasakdi said the Burmese had taken a hard line
during the Gambari visit because the junta has the backing of
China. "China told us they will never let Burma be like
Iraq," Virasakdi said, explaining that the Chinese were not
worried about US military action, but about Western-forced
"regime change."


7. (C) Virasakdi said that the recent announcement of the
timetable for the referendum and election could in some ways
be seen as positive. He noted that "just like last time" the
voting may not turn out the way the junta expected. Virasakdi
said the Thai will tell the Burmese that the referendum
should be transparent and credible during their upcoming
meetings.


8. (C) We made clear that we understood Thailand's
difficulties regarding Burma, but we hope to be reassured
that Thailand was on the same side as we were in wanting
democratization in Burma; this was a very important issue for
us. Virasakdi said he understood, but pointed out that it was
the US, not Thailand, that had "set up Burma as a condition
of our relationship." Virasaksi reiterated, however, the Thai
delegation to Burma would certainly press the concerns raised
by the international community.

Strategic Dialogue
--------------


9. (C) The Ambassador again raised our hope that Virasakdi
would be able to lead a delegation to the US soon to hold the
second round of the Strategic Dialogue. Virasaksi agreed,
and asked us to propose a date. (Note: He also joked that he
might not be around long enough to participate -- a
reference to the rumors of some imminent personnel changes at
the MFA. There is speculation that Virasaksi, perhaps
tarnished by his service to the coup-backed government, might
be replaced soon. End note.)

Business Climate
--------------


10. (C) The Ambassador raised two issues that affected the
business climate. On compulsory licensing. the Ambassador
reiterated the US position, urging the RTG to engage in a
genuine dialogue with the pharmaceutical companies. The
Ambassador also asked the MFA to look into recent changes in
Thai law that required international schools to have a Thai
citizen as manager. Depending on how this was implemented,
it could have a negative impact on the families of foreign
investors and businesspeople living here, and thus make
Thailand a less attractive destination for foreign business
and investment. The Permsec said he would look into the
matter and encouraged those concerned to meet with the
Minister of Education.

COMMENT
--------------


11. (C) Talking about Burma, the Thai MFA's new buzzword is
"neighborly engagement." The Thai appear to want to keep to
a middle course, In a statement to the press published
today, the Foreign Minister said Thailand wanted to see
"inclusiveness in Burma's political process," but, like other
ASEAN members, would not interfere in Burma's internal

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affairs. He talked about neighborly engagement as a policy
falling between Western-backed sanctions and full engagement.
The Thai seem to understand the need for Burma to make some
kind of progress, and we think that they will find a way to
press that point during the Friday PM visit. But the new
Thai government so far shows no inclination to take a
leadership position within ASEAN on the Burma issue. The
Foreign Minister's March 20 call on Secretary Rice will be a
good opportunity to clarify the new Thai government's policy
on Burma.

JOHN