U.S. confident of Thai recovery

U.S. confident of Thai recovery

BANGKOK (Reuters): U.S. President Bill Clinton told the Thai
prime minister he was confident of the success of international
efforts to help solve Thailand's economic problems.

In a letter to premier Chavalit Yongchaiyudh, Clinton said the
United States would continue to work with Thailand and
international financial institutions to try to help the economy
which facing its worst downturn in decades.

"I want to assure you that the United States will continue to
work with you and the international financial institutions to
address Thailand's current financial difficulties," the letter
said.

"I am confident that this effort, combined with the dynamism
and energy of Thailand and its people, will ensure the success of
this mutual endeavor," it said.

The letter, which was released by the Thai government on
Monday, was written in response to one sent by Chavalit to
Clinton explaining the Thai government's determination to take
the necessary steps to turn its economy around.

Thailand in August was forced to negotiate a $17.2 billion
international bailout package brokered by the International
Monetary Fund (IMF).

The United States did not contribute any funds to the package,
which drew some criticism in the region.

But Thailand's deputy prime minister Virabongsa Ramangkura on
Monday welcomed the U.S. offer of assistance to Indonesia, which
just worked out an IMF-led rescue package which could be worth up
to $40 billion.

The United States said it was ready to contribute $3.0 billion
to Indonesia if needed, but a senior U.S. treasury official said
he did not expect Jakarta to take up the money.

Virabongsa was quoted on Saturday by The Nation newspaper as
saying the United States needed to take a more direct role to
bring stability to battered Southeast Asian economies.

Clinton visited Bangkok last November on the first U.S.
presidential visit to Thailand since 1969. He was the first head
of state to meet Chavalit who was elected just before Clinton's
visit.

Chavalit is now fighting for his political life as members of
his six-party coalition, opposition politicians and businessman
on Monday renewed calls for him to step down, claiming he was
unable to solve the country's economic crisis.