Obuchi aims to boost Thai ties, recovery

Obuchi aims to boost Thai ties, recovery

BANGKOK (Reuters): Japanese Prime Minister Keizo Obuchi began a two-day visit to Thailand on Thursday aimed at enhancing a close bilateral relationship and putting Asia's economic recovery on a more solid footing, officials said.

Obuchi arrived in Bangkok from Vientiane for the last stop on a tour of Southeast Asia that has taken him to Cambodia and Laos, the first visits to those countries by a Japanese premier in several decades.

Obuchi was to start the Thai leg of the tour with an hour of talks with counterpart Chuan Leekpai, followed by a dinner hosted by Chuan at Government House.

Japanese officials said the two would discuss ways to boost Japanese investment in Thailand, which slipped during the Asian economic crisis that began with the devaluation of the Thai baht in 1997.

"The Asian economic crisis is about over, but the recovery needs to be put on a more solid basis," said a Japanese government official who declined to be identified. "We need to enhance our cooperation and deal with the question of economic disparities within the region."

Since the crisis broke, Japan has slipped from number one foreign investor in Thailand.

However, 40 percent of foreign direct investment in Thailand still comes from Japan and there are about 1,100 Japanese firms operating in the country.

Thailand is also the fourth-largest recipient of Japanese development assistance and Tokyo provided it more than $14 billion under different schemes to help it pull out of crisis.

Through Obuchi's visit, Japan aimed to boost Japanese investment in both small and medium-sized enterprises in Thailand, the Japanese official said.

It would also discuss Japan's efforts to foster human resource skills, including the establishment of a regional network for development of higher education in engineering.

The investment push would be backed up with visits by delegations from the Japan External Trade Organization (JETRO) and the Federation of Economic Organizations, or Keidanren, in February and March respectively, he said.

Thai and Japanese officials said the two sides would also address regional security issues, such as newly independent East Timor and military-ruled Myanmar, as well as efforts to open a new world trade round.

Thai government spokesman Akapol Sorasuchart said Thailand hoped to secure better access to Japan for its farm products.

"Opening up of the markets -- increased market share -- will probably be the main targets Thailand is aiming for. I think in some areas we are quite hopeful," Akapol said, adding that these included fruit, rice and rubber.

He said Japan wanted to hear Thailand's views as current head of the 10-member Association of Southeast Asian Nations (ASEAN) ahead of a meeting of the group of eight industrial nations Japan is due to host this year.

Obuchi has said he hopes G8 will give voice to Asian views. Japan is also lobbying for support for its former top financial diplomat Eisuke Sakakibara's bid to become the next head of the International Monetary Fund.

Obuchi is to hold a news conference at 11 a.m. (11 a.m. Jakarta time) on Friday. Later he will have an audience with Thai King Bhumibol Adulyadej and is due to leave Thailand on Saturday morning.