New economic focus in Thai-Burma relations
By Jon Fernquest |
Sunday's Bangkok Post reported on Foreign Minister Noppadon Pattama's reinstatement of a loan from Thailand's Exim Bank granted during the Thaksin adminstration.
Part of the loan had been put on hold after the coup appointed Assets Scrutiny Committee (ASC) pressed criminal charges against Thaksin in August 2007 for allegedly "ordering a one-billion-baht increase in the amount of the loan...for the benefit of his family's satellite and broadband businesses."
Thailand has also pledged to move forward on other joint projects with Burma including the Ta Sang hydropower dam on the Salween river.
A deep sea port at Tavoy [Burmese: Dawei] on the Isthmus of Kra that would provide quicker access to India for Thai goods is also slated for the future:
"...the shipping route from southern India to Myanmar's deepsea port at Dawei would help reduce the travel time of cargo between India and Thailand that now goes through the Malacca Strait and around the southern tip of the Malay Peninsula to reach Bangkok" (Source).
(See photo on right of artist's depiction of the even more controversial Kra Canal from Thailand to Tavoy or thereabouts)
Here is the article in full:
Exim bank to complete Burma loan
Govt to boost economic ties with junta
By Post reporters
Sunday March 16, 2008
The Export-Import Bank of Thailand is cleared to hand Burma any remaining funds from a four-billion-baht soft loan to the junta that had been suspended due to alleged irregularities, Foreign Minister Noppadon Pattama said yesterday.
(Map on right shows where Dawei or Tavoy is located)
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Thailand will also push ahead with construction of the Tasang hydropower dam and other infrastructure projects in Burma, he added.
The fresh move came as Thailand tried to foster closer economic ties with Burma following the first official visit to the country on Friday by Prime Minister Samak Sundaravej since he took office last month.
The issue of outstanding money from the loan was not tabled for discussion when Mr Samak and other Thai officials met with Burma's junta leaders including Sen Gen Than Shwe on Friday in the country's new capital of Naypyidaw.
Asked in Bangkok about the future of the loan meant to help improve Burma's infrastructure facilities, Mr Noppadon said the government will not allow political wrangles in Thailand to obstruct attempts to strengthen relations with Burma and other neighbours. Thailand's internal problems "have no effect on the right of Burma to get the money," he told a press conference.
It remains unclear how much of the four-billion-baht loan has yet to be handed to the ruling junta in Burma.
Mr Noppadon said yesterday that only one billion baht had been given to Burma so far; however, the bank said in a statement released in September last year that all but 341 million baht of the loan had already been handed over.
The loan was signed between the Export-Import Bank of Thailand and the Myanmar Foreign Trade Bank in June 2004, when then premier Thaksin Shinawatra was in power.
However, the military-appointed Assets Scrutiny Committee (ASC), set up by the coup makers after ousting Thaksin's government from power in 2006, agreed in August last year to press criminal charges against the former premier for alleged abuse of his position in ordering a one-billion-baht increase in the amount of the loan, allegedly for the benefit of his family's satellite and broadband businesses.
The additional money was approved for the Burmese government to develop telecommunications facilities, including buying goods and services from the satellite broadband and fibre-optic firm Shin Satellite Co, according to the ASC.
The panel has not yet forwarded the charges on the loan to prosecutors.
The Burmese junta also raised the issue of the 7,110-megawatt Tasang dam, which Thailand won a concession to build 10 years ago. There has been little progress since then however.
Mr Noppadon said the government would urge the private sector to go ahead with the project, which would boost energy security for the kingdom.
The Tasang dam is the largest of the proposed hydroelectric projects on the Salween River in Burma's Shan State, about 130 kilometres from the Thai-Burmese border.
The 228-metre-high dam is slated to be the tallest dam in all of Southeast Asia. The reservoir will flood hundreds of square kilometres of land, according to Salween Watch, a coalition of NGOs based in Chiang Mai which monitors the issue.
Thai firm MDX signed an agreement with the Burmese junta in 2002 to develop the project. However, the planned dam has met with stiff opposition from environmentalists and other activists because it could force several thousand people to leave their homes and land and move elsewhere.
Thailand has also pledged to develop the Tavoy deep-sea port in Burma to open trade and investment links with western Thailand, Mr Noppadon said.
Thailand is one of Burma's biggest investors and trading partners, spending billions of dollars annually to tap into the country's natural gas and hydropower resources.
The kingdom is at odds with the West over ways to deal with Burma's military regime, which sparked global outrage following its deadly crackdown on peaceful protests in September 2007. The United States and the European Union tightened sanctions against Burma's ruling generals after the suppression.
(Source: Bangkok Post, front page, 16-03-08, temp-link)
Vocabulary:
reinstatement of Y - causing Y to exist again
X put on hold - wait to do X
allegedly Y - people claim that Y is true but not proven yet
move forward on Y - start working on project Y and make progress on project Y
artist's depiction - not real, a drawing based on an artist's imagination
boost economic ties - increase the business end economic projects that the two countries do together
a junta - a military government (maintaining power through force rather than elections)
Export-Import Bank of Thailand, Exim bank - government bank established in 1993 to support both Thai investors overseas as well as local investors in business relating to export or business which earns or saves foreign exchange (See website)
X cleared to Y - X is given permission to do Y by authorities
soft loan - a loan with generous terms such as lower than usual or no interest, or a long payback period
(Source: Google definitions)
alleged Y - claims that Y exists have been made but not proven
irregularities - actions not following the rules, perhaps dishonest
push ahead with Y - make an effort to make progress on project Y
Tasang hydropower dam - a proposed dam project on the Salween river with both Thailand and Burma participating (See Wikipedia on Salween dams)
a fresh move - a new policy, different from old policies
foster X - help X develop
foster closer economic ties between X and Y - help countries X and Y work together on business and economic projects
outstanding - remaining, still existing, has not been settled and closed yet (See glossary)
outstanding money from the loan - money that was loaned but not yet given
tabled for discussion - present at a meeting for discussion
political wrangles - angry political arguments
a press conference - a media event in which newsmakers invite journalists to hear them speak and, most often, ask questions (See Wikipedia on news conference)
a concession - a special right or privilege to run a certain kind of business for a certain period of time, usually given by the government (See glossary)
won a concession to build Y - win from the government the contract to build Y
security - all the actions taken to protect a place, person, or thing
boost energy security - take action to make sure that the country has wnough affordable energy in the future
slated to be Y - planned to be Y
Y met with stiff opposition - Y happened and then many people opposed Y and would not stop opposing Y
pledged to - promised to do in the future
Tavoy [Burmese: Dawei] - a small Burmese city on the thin Isthmus of Kra shared by Thailand and Burma (See Wikipedia on Dawei)
Isthmus of Kra - the narrow land bridge connecting Malaysia with the rest of Asia (See Wikipedia and the Kra Canal)
deep-sea port - any port that can handle a full ship that large enough pass through the Panama canal (a Panamax ship) (See Wikipedia's list of deep water ports and Panamax ship)
tap into Y - start using resource Y
spark Y - start Y suddenly
outrage - anger at something that happened
Y sparked global outrage - Y happened and then around the world many people were very angry that Y happened
