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.