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.