Thailand seeks to boost clout with regional pact<\/p>\n
Reuters
\nBagan, Myanmar<\/p>\n
Thailand, seeking to boost its regional influence and improve
\nprickly relations with its neighbors, pledged on Wednesday to
\noffer soft loans to Laos, Cambodia and Myanmar and waive import
\nduties on their goods.<\/p>\n
"The summit is an auspicious start for four countries which
\nused to be suspicious of one another," Thai Prime Minister
\nThaksin Shinawatra told reporters after signing an economic
\nagreement with his three counterparts at a summit in Myanmar.<\/p>\n
"Soon we will have four nations, one economy in which our
\nneighbors will supply us farm land and raw materials and we will
\nbe their producer and seller of their goods."<\/p>\n
In their final communique, the leaders pledged to work
\ntogether to accelerate economic growth and resolve differences
\nthrough "mutual understanding, confidence and good
\nneighborliness".<\/p>\n
Wealthier Thailand's big-brother-on-the-block image has often
\nled to strained relations in the region.<\/p>\n
Thaksin sparked a war of words with Myanmar in August when he
\nordered Thai troops to kill Myanmar drug smugglers and hinted
\nThailand may go after drug factories across the border.<\/p>\n
Thailand's relations with Cambodia were damaged severely in
\nJanuary when mobs torched the Thai embassy and several Thai
\nbusinesses in Phnom Penh.<\/p>\n
Diplomatic ties, downgraded in the aftermath of the riots,
\nhave been restored, but damaged Thai businesses are still arguing
\nabout compensation from Cambodia.<\/p>\n
Thailand, with an economy eight times the combined size of its
\nthree neighbors, is pushing for a new trade zone it says would
\nuplift their economies and strengthen regional stability.<\/p>\n
Bangkok sees economic development as the best way to deal with
\nthe flow of migrant labor, refugees and drugs from its
\nimpoverished neighbors.<\/p>\n
Military-ruled Myanmar, Communist-led Laos and newly
\ndemocratic Cambodia, still recovering from the "Killing Fields"
\nof the 1970s, will be offered about 11 billion baht ($275
\nmillion) in grants and soft loans for development projects.<\/p>\n
Analysts say the so-called Economic Cooperation Strategy will
\npry open doors for Thai companies, particularly in Myanmar where
\nvast energy reserves are coveted by Thailand to power its auto,
\nelectronics and textiles factories.<\/p>\n
Myanmar awarded two offshore blocks to Thailand's PTT
\nExploration and Production PCL on Wednesday. Thailand also agreed
\nto help Myanmar develop its downstream gas sector, everything
\nfrom pipelines to petrochemical plants.<\/p>\n
"The zone reportedly will foster a high degree of economic
\ndependence on Thailand for the three countries, solidifying
\nBangkok as the preeminent political power in peninsular Southeast
\nAsia," Strategic Forecasting said in a report.<\/p>\n
Thaksin has been touted as Southeast Asia's next leader
\nfollowing the retirement of Malaysian Prime Minister Mahathir
\nMohamad last month.<\/p>\n
While Thailand stands to gain the most, closer ties will
\nrelieve pressure on neighbors shunned by the West.<\/p>\n
"Myanmar and Laos will benefit greatly from being able to
\ncircumvent current or future trade sanctions imposed by the
\nUnited States and Europe by running its commodities and finished
\ngoods through Thailand," said Strategic Forecasting.<\/p>\n
The promise of loans to Myanmar is a practical example of
\nThaksin's "constructive engagement" policy he says will draw the
\nonce wealthy, now poor country towards democracy.<\/p>\n
Thaksin scorns U.S. and European sanctions on Myanmar as an
\nnon-Asian way of dealing with an Asian problem.<\/p>\n
The United States and the EU have tightened sanctions since
\nMyanmar's generals detained democracy icon Aung San Suu Kyi after
\na violent clash between her supports and government backers on
\nMay 30.<\/p>",
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"sponsor": "Okusi Associates",
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