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.