COMMERCE MINISTER PLEDGES SUPPORT, BUT FOR HOW LONG?

UNCLAS BANGKOK 000904 SIPDIS SENSITIVE SIPDIS STATE PASS USTR USDOC FOR 4430/EAP/MAC/OKSA E.O. 12958:N/A TAGS: ECON ETRD KIPR EINV TH SUBJECT: COMMERCE MINISTER PLEDGES SUPPORT, BUT FOR HOW LONG? ¶1. (SBU) Summary: In a March 17 courtesy call on Deputy Prime Minister and Minister of Commerce Mingkwan Sangsuwan, Ambassador John, accompanied by A/USTR Weisel, expressed the importance the U.S. held for its economic relationship with Thailand and the continued interest of U.S. companies in investing in Thailand, but noted particular problems with intellectual property protection. Mingkwan described his vision of Thailand as a regional hub for manufacturing and trade and encouraged greater U.S. investment. Mingkwan offered his assistance on investment and trade issues, but repeatedly questioned just how long he would remain in office to do so. End Summary. ¶2. (SBU) The Ambassador pointed out to Minister Mingkwan that this year marked the 175th anniversary of the Treaty of Amity and Commerce which had formed the foundation for the bilateral economic relationship. He noted that trade was beneficial not only as a driver of economic growth but also that the use of each other's products, including movies, food and autos, helped build relationships and bind countries together. Mingkwan responded that he had long been a movie buff (and spoke fondly of Tom Cruise's role in "Born on the Fourth of July") and had been influenced by American movies. He said that Thailand had always welcomed foreign investment. ¶3. (SBU) In a bit of stream of consciousness, Mingkwan laid out his economic plan for Thailand as a hub in the region. Thailand would act as a gateway to the ASEAN region for trade and investment by capitalizing on its central location in ASEAN and its array of trade agreements that had lowered trade barriers with the region's top trading partners. As a fan of Italian silk ties, he said he would try to attract top fashion brands to produce in Thailand for export. The Ambassador responded that U.S. business was beginning to view ASEAN as a single economic entity and continued to show interest in investing in Thailand. ¶4. (SBU) The Ambassador said, however, that Thailand needed a level playing field for business, particularly in the area of intellectual property protection. Assistant USTR Barbara Weisel asked Mingkwan for his assistance in resolving the controversy over the compulsory licensing of pharmaceutical products. The Ambassador added that the compulsory licenses have been like a billboard advertising to investors that Thailand has inadequate intellectual property protection. Mingkwan replied that he would be meeting with other Ministers the following week to discuss the issue. He added that he considered that the issue belonged to the Ministry of Public Health, but promised that his staff would study the issue and that he would meet with pharmaceutical companies. ¶5. (SBU) Throughout the meeting, Mingkwan offered his assistance on any issue that the U.S. requested help, particularly on investments which he thought would be streaming in to Thailand over the next three years. However, he frequently mentioned that he did not know how long he would be in office to work on those issues, and asked the Ambassador at one point how long he thought he (Mingkwan) would be around. Although he took office in February with a long and well-regarded resume of business experience, Mingkwan obviously felt that even after such a short time that his days were already numbered. Mingkwan may not be alone in his concern. Political commentators have been gauging the fractiousness of the six-party governing coalition and speculating how long the current government will remain intact, although so far it shows no sign of serious weakness. JOHN