Thailand Turns To A Tried And Trusted Recipe In Dealing With China

[Flashermac]

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Thailand Turns To A Tried And Trusted Recipe In Dealing With China

 

 

 

While Sri Lanka is wondering whether or not to distance itself from China, Thailand is asking itself the same question. However, it is going about this in a much more straightforward way.

 

Since the Second World War, Thailand has been one of the staunchest American allies in Southeast, receiving from the US protection against communist threats to its security, along with substantial investment and development assistance. But the May 2014 coup fundamentally changed this relationship. The Obama administration has strongly demanded that Thailand quickly reinstitute democratic rule and that the military return to its barracks. However, this is something Thai generals are in no hurry to do.

 

This has set Washington and Bangkok on a collision course, with the US freezing a $4.7 million defense loan, a key part of Thai-American defense cooperation, at the start of this month. In addition to this move, the traditional annual ‘Cobra Gold’ exercises between the Thai and US Armies were considerably scaled down this year. In response to these American actions, the ruling junta, which wants to keep control for ‘another year at least’, accused the State department of interfering in internal Thai affairs.

 

China is very astute when it comes to spotting new opportunities in foreign policy and quickly put its foot in this newly opened door. General Chang Wanquan, Chinese Minister of Defense, went to Bangkok on February 6^th to sign a home security agreement. To be sure, the document had very little real substance.

 

China promised to deliver “defense technology advice†and data against transnational crime, particularly against cooperation between Sino-Thai triad gangs, drug trafficking and racketeering, all of which are rife on the Mekong River. The Thai air-force announced that it would hold joint exercises with the PLA “within 2-3 yearsâ€.

 

But how far and how sincere is this “rapprochement� Some very good light on this matter is being cast by the financial negotiations that have been occurring regarding big Chinese infrastructure deliveries. Not fortuitously, negotiators of the two countries have met three times in the last 10 days to try and finalize their most ambitious deal ever, the bullet train line from Kunming (Yunnan) to Bangkok, on two routes via Chiang Rai (Western leg, 878km) and Nong Khai (Eastern leg), at an estimated price tag of $10.5 billion. A Memorandum of Understanding has been signed between the two countries, but the junta is balking at China’s loan proposal. Beijing’s ExIm-bank is offering a four-year grace period, followed by a 16-year loan repayment period at an interest rate of between 2 and 4%. Bangkok, however, is threatening to self-finance the project by issuing $12.2 billion worth of bonds on its own market, so the debt would be internal with the interest revenue remaining in Thailand.

 

Another point of contention is China’s demand, in exchange for its loan, to manage the trunk line. The junta strongly wishes to show that it can uphold its sovereignty, even on a Chinese core-project aiming at exerting the Middle Kingdom’s influence over the whole of South-East Asia. Will Thailand succeed? It is still too early to say. But whatever result, its deal with China will be a much better than one Sri Lanka has forged with Beijing. In the case of the latter, Sri Lanka seemed to have no choice other than taking what China offered and lost control over some of its most precious assets into the bargain.

 

By contrast, Thailand has taken a more subtle approach in negotiating with China. Its current strategy reminds one of how the Old kingdom was able, at the end of the 19th century, to keep both Britain and France at bay as the two imperial powers tried to colonize it. How did Thailand pull off that hat trick? By establishing non-binding friendships with those dangerously powerful nations,sending its children to universities in Paris and London, and even offering some British and French individuals top-brass positions in its ministries. What is happening now in both the military and economic arenas of Sino-Thai relations strongly resembles this old Thai gambit for preserving national sovereignty. There is nothing new under the Asian sun!

 

http://www.forbes.com/sites/ericrmeyer/2015/02/23/thailand-turns-to-a-tried-and-trusted-recipe-in-dealing-with-china/

[Coss]

Interesting stuff

 

" the US freezing a $4.7 million defense loan" a piffling amount, Yingy spends more on white foundation cream.

 

"particularly against cooperation between Sino-Thai triad gangs, drug trafficking and racketeering, all of which are rife on the Mekong River."

 

Shouldn't that read "...which are the life of the Mekong River."

 

"Another point of contention is China’s demand, in exchange for its loan, to manage the trunk line."

 

This is worth noting, in the Glorious People's Republic, China are demanding a 1 km wide corridor, 500m each side of the line for that leg. Thats a lot of land.

[Flashermac]

That's how the railways got so rich in the American west in the 19th and early 20th centuries. They got a big stretch of land along the railway, in which they then developed towns and sold lots.

[Guest]

I have every faith in the military goverments abiliy, to forge a deal with China, where the country will not loose out.

[Coss]

:rotl: :rotl: :rotl: :rotl:

 

I'd forgotten you were a Comediene

[Flashermac]

China is our friend.

 

China has territorial claims to nearly 20 countries

 

 

Burma, Laos, Northern India, Vietnam, Nepal, Bhutan, Thailand, Malaysia, Singapore, the Ryukyu Islands, 300 islands of the South China, East China and Yellow Seas, as well as Kyrgyzstan, Mongolia, Taiwan, South Kazakhstan, the Afghan province of Bahdashan, Transbaikalia and the Far East to South Okhotsk - here is the complete list of areas that, according to Mao Zedong, were lost due to the fall of the Qing empire. All of these countries and regions combined exceed the territory of modern China. Not all complaints are voiced by the Government of China in the international arena, but within the country the imperialist ambitions have not been lost, but rather, are actively promoted.

 

...

 

http://english.pravd...orial_claims-0/