Cohen pledges help for old ally Thailand

Cohen pledges help for old ally Thailand

BANGKOK (Reuters): U.S. Defense Secretary William Cohen pledged assistance to old ally Thailand yesterday, now financially strapped and facing problems paying for military equipment from the United States.

Cohen, on the fourth leg of a 12-day seven-nation trip that includes China, went into talks with top Thai officials immediately after flying in from Singapore.

"You are one of our oldest friends. We have a strong treaty relationship with you. We know that you are currently experiencing difficulties but we hope that we can provide assistance and support in a variety of different ways," Cohen told Foreign Minister Surin Pitsuwan.

"Thailand is very important for the security of the region, very important to the U.S., and we intend to explore ways during my very brief visit in which we can be helpful.

"We intend to maintain our very strong relationship and friendship with Thailand," he said as he went into the meeting with the foreign minister.

Cohen also had a meeting planned later yesterday with Prime Minister Chuan Leekpai.

The Thai baht has lost more than half its value since it was floated last July, and Chuan said this week that Thailand would ask if it could delay payment for U.S. military equipment it has already purchased.

Last month Bangkok announced it would delay by three years until 2003 its planned $392.2 million purchase of eight U.S. F/A- 18 Hornet jet fighters from Boeing Co.

U.S. officials said they did not know whether any agreements would be made during Cohen's brief Bangkok visit. He flies to Beijing today.

Arms

Several other Asian countries, including South Korea, have also said they would be forced to delay arms purchases because of the regional economic crisis that has forced many markets and currencies sharply lower.

Air Chief Marshal Thananit Niamchan, commander of the Royal Thai Air Force, said in December that Thailand would negotiate with Boeing on the F-18 sale.

He said Boeing was expected to charge Thailand about 9 percent of the project value, or $26 million, for delaying payment and delivery.

But Cohen and U.S. defense officials traveling with him have stressed to reporters that they were asking U.S. defense firms to work with financially strapped Asian countries to ease the strain on their coffers.

Cohen said both the U.S. government and American arms makers realized how important it was to show allies in the region that they were dependable supporters in good times and in bad.

While U.S.-Thai military ties have been close, Washington angered Thai officials in 1996 by again turning down their latest request for advanced air-to-air missiles.

Thailand has been pressing for Aim-120 advanced medium-range air-to-air missiles (AMRAAM) for the F-18s it has ordered.

Washington has refused, fearing such equipment could start an arms race in Southeast Asia.

The United States finessed the issue in the fall of 1996 by promising in a letter that such a sale could eventually be made upon "mutual assessment" that another country in the region had a comparable missile.