Setback in Thai deal hurts ties: Australia

Setback in Thai deal hurts ties: Australia

CANBERRA (Reuter): Australia said yesterday its defense links
with Thailand would be damaged if the Thai army stopped an
Australian firm bidding for a major rifle contract because of
criticism from human rights groups.

Canberra announced last week it supported a bid by a
government-owned arms maker to sell rifles to the Thai army,
despite concerns from some Australian human rights groups that
the guns could be re-sold to Khmer Rouge guerrillas in
neighboring Cambodia.

Thailand's army chief Gen. Wimol Wongwanich said on Thursday
his country would not buy defense equipment from Australia
because of the complaints.

"This shows that Canberra cannot control its people from
making speeches (against Thailand)," Wimol told reporters.

"It would be a major setback in our defense relationship if we
were excluded on what we would regard as peripheral grounds,"
Defense Minister Robert Ray said in a television interview.

Australia would accept losing the contract if the rifles were
seen as unsuitable or too expensive, Ray told Channel Nine's
Sunday program.

"But if it's just on the basis that there has been criticism,
not even by the government, but by certain groups in Australia of
Thailand's attitude to Cambodia, then we would be a little
upset," Ray said.

Disappointed

The Australian government had yet to confirm that it was going
to be shut out of bidding for the contract, Ray said. "We would
be very disappointed if that was the case."

The government-owned armsmaker Australian Defense Industries
(ADI), which supplies the Australian and New Zealand armies with
its Austrian-designed Steyr rifle, had planned to bid for the
contract against firms from several other countries.

Ray said he believed the Steyr rifle was the best in the
region and the Thai contract meant a lot to workers at ADI.
Defense sources have estimated the contract to be worth A$130
million (US$96 million).

The Cambodian government and United Nations officials have in
the past accused the Thai military of helping Khmer Rouge
guerrillas waging a limited campaign against the Phnom Penh
government. The Thai government has denied giving the guerrillas
any support.

Ray said Australia accepted that Thailand was trying to stop
any aid, either private or government, getting to the Khmer
Rouge.

"Also you should remember there is a heap of weapons in
Cambodia. They hardly need to go over the border to get them
right now," he said.