Identifier
Created
Classification
Origin
09BANGKOK534
2009-03-04 01:12:00
UNCLASSIFIED
Embassy Bangkok
Cable title:  

THAILAND FOR ASEAN -- INFORMATION IN ADVANCE OF G-20 MEETINGS

Tags:  ASEAN ECON EFIN TH 
pdf how-to read a cable
VZCZCXRO8564
RR RUEHCHI RUEHDT RUEHFK RUEHHM RUEHKSO RUEHNAG RUEHNH RUEHPB
DE RUEHBK #0534 0630112
ZNR UUUUU ZZH
R 040112Z MAR 09
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 6256
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION
RUEAIIA/CIA WASHINGTON DC
RHEHNSC/NSC WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEFDIA/DIA WASHDC
UNCLAS BANGKOK 000534 

SIPDIS

STATE FOR EAP/EP AND EEB/OMA A. WHITTINGTON
TREASURY FOR IMB B. MURDEN, W. MONROE, AND M. BEASLEY

E.O. 12958: DECL: 03/03/2024
TAGS: ASEAN ECON EFIN TH
SUBJECT: THAILAND FOR ASEAN -- INFORMATION IN ADVANCE OF G-20 MEETINGS

REFS: A) SECSTATE 17502 B) BANGKOK 384 C) 08 SINGAPORE 947 D) BANGKOK
370

UNCLAS BANGKOK 000534

SIPDIS

STATE FOR EAP/EP AND EEB/OMA A. WHITTINGTON
TREASURY FOR IMB B. MURDEN, W. MONROE, AND M. BEASLEY

E.O. 12958: DECL: 03/03/2024
TAGS: ASEAN ECON EFIN TH
SUBJECT: THAILAND FOR ASEAN -- INFORMATION IN ADVANCE OF G-20 MEETINGS

REFS: A) SECSTATE 17502 B) BANGKOK 384 C) 08 SINGAPORE 947 D) BANGKOK
370


1. (SBU) In response to ref A, we believe there are four issues that
Thai Prime Minister Abhisit Vejjaviva, speaking on behalf of ASEAN,
may raise at the G-20 Summit. (Note: For information regarding how
the financial crisis has affected Thailand specifically, and how the
Royal Thai Government (RTG) has responded, see ref B.)

Fight Against Protectionism
--------------

2. (SBU) Thai press has reported that Prime Minister Abhisit will
raise the issue of protectionism at the G-20 London Summit. Thai
authorities (echoing those of other ASEAN nations) have expressed
concern over the potential for trade protectionism represented by the
"Buy American" provision in the recently-passed U.S. stimulus bill.
Facing protectionist tendencies back home, PM Abhisit may feel that
anything short of a strong repudiation of protectionism by the G-20
could lead to a justification for protectionism in Thailand and
elsewhere within ASEAN (ref. D).

Capital Increase for the ADB
--------------

3. (SBU) At a meeting of the ASEAN Plus Three (Japan, China, and
South Korea) Finance Ministers in Phuket, Thailand, on February 22,
the Ministers agreed that, to assist nations dealing with the
economic crisis, the Asian Development Bank (ADB) should receive a
capital increase.

Regional Financial Mechanism
--------------

4. (SBU) The Finance Ministers on February 22 also agreed to increase
the overall size of the existing currency pool arrangement known as
the Chiang Mai Initiative (CMI) from approximately USD 80 billion to
USD 120 billion, with the Plus Three nations contributing 80 percent
of the funds and the ASEAN nations contributing 20 percent. (Note:
The CMI is an effort, still fledgling, to give the Asian region an
alternative to having to go to traditional international financial
institutions for forex assistance in time of financial crisis. For
background information on the CMI, see ref. D. End Note). The
Ministers also agreed to support the multilateralization of the fund,
transforming it from a series of bilateral currency swap
arrangements, and to set up a surveillance unit for the
multilateralized fund, although no decision on where to house the
unit was taken.

Reform of Financial Institutions
--------------


5. (SBU) Judging from his public remarks at the ASEAN summit on
February 28 in Bangkok, PM Abhisit may also raise the need to reform
existing international financial institutions in light of the
deficiencies demonstrated by the current crisis. However, there was
no indication that he would go beyond a general call for reform and
make specific recommendations.


6. (SBU) Comment: While no doubt appreciating the invitation to
attend the G-20, ASEAN is a consensus-based organization that arrives
at decisions slowly. The economic circumstances of the member
countries vary widely and each has dealt with the crisis in a variety
of ways. PM Abhisit is an eloquent and effective speaker, but he is
unlikely to get too far in front of what little ASEAN members have
formally agreed upon. Both the need for consensus and the different
needs of the member states make it difficult for ASEAN to implement
specific bold initiatives among themselves, let alone call for such
at the G-20.

JOHN