Thailand threatens to scrap treaty

[Mentors]

Thailand’s cabinet on Tuesday recommended that parliament scrap a proposal to jointly develop hydrocarbon resources along a disputed maritime border with Cambodia in a further escalation of a diplomatic spat between the countries.

 

Cambodia and Thailand have been locked in a dispute since last week when Hun Sen, the Cambodian prime minister, asked Thaksin Shinawatra, Thailand’s self-exiled former prime minister and de facto opposition leader, to become an economic advisor.

 

The tensions escalated on Tuesday morning when Mr Thaksin arrived in Cambodia to take on the role. Bangkok responded angrily to the original offer by accusing Cambodia of interfering in its internal affairs. A Thai court last year handed a Mr Thaksin two-year jail sentence for abuse of office.

 

“When you have someone with a conflict of interest in the other camp, you have to review treaties like this,†said Panitan Wattanayagorn, spokesman for Abhisit Vejjajiva, the Thai prime minister. “There is nothing emotional about this, nothing personal.â€Â

 

Thailand and Cambodia signed a memorandum of understanding in 2001 that covers a 27,000 sq km zone known as the Overlapping Claims Area. The move represented a significant step forward towards opening up what some in the oil and gas industry believe could be one of the most productive unexplored areas in southeast Asia.

 

The escalating dispute comes at awkward time for Cambodia and Thailand, which are members of the 10-member Association of South East Asian Nations. The leaders of those nations will meet US President Barack Obama this weekend in Singapore following the Asia-Pacific Economic Co-operation forum meeting. The clash will only reinforce accusations that the differences between Asean members are more significant than the similarities.

 

In the absence of a more comprehensive deal, however, progress has stalled. The tough stance taken by Mr Abhisit has given him a boost in opinion polls.

While the Thai parliament is unlikely to oppose the cancellation of the agreement, politicians appear to have backed away from earlier threats to close the border between the two countries, which would hurt Thailand more than Cambodia.

 

Thailand exported $1bn worth of goods to Cambodia in the first eight months of this year, compared with Cambodian exports of just $39m to Thailand.

 

Thailand wants Cambodia to extradite Mr Thaksin, the controversial telecommunications billionaire who has been living mostly in the Gulf since his British visa was revoked last year,

 

While the two countries have an extradition treaty, there is an exclusion clause for people who have been victims of political persecution. [color:red]Mr Hun Sen, a long-standing friend of Mr Thaksin, has already made speeches claiming that the case against the former Thai prime minister was politically motivated[/color].

 

Mr Thaksin went into self-imposed exile after being removed from office in a military coup in 2006. Despite being convicted for breaching conflict of interest laws and sentenced in absentia to prison, the former prime minister still commands substantial support among the Thai electorate, especially among the rural poor in the northeast.

 

[color:red]Political analysts say Mr Thaksin or his appointees would have a good chance of winning if the government were to call a general election[/color].

 

http://www.ft.com/cms/s/0/e7041c42-cdc1-11de-95e7-00144feabdc0.html