US embassy cable - 05BANGKOK1819

C O N F I D E N T I A L SECTION 01 OF 04 BANGKOK 001819 
 
SIPDIS 
 
E.O. 12958: DECL: 03/11/2015 
TAGS: PGOV, PREL, TH, Cabinet Reshuffle 
SUBJECT: THAILAND:  THAKSIN'S NEW CABINET FAMILIAR, BUT 
WITH SOME SURPRISES 
 
Classified By: Political Counselor Robert Clarke.  Reason:  1.4 (d) 
 
1. (C) Summary:  Prime Minister Thaksin unveiled the first 
cabinet lineup in his new administration on March 11.  Many 
faces are familiar, but there were some surprises.  This 
cabinet may only last until next June.  If the list is 
approved by the King (as is likely), Foreign Minister 
Surikiart Sathirachai will be kicked upstairs to a Deputy 
Prime Minister position and replaced at MFA by Dr. Kanthathee 
Suphamongkol, the relatively unknown Thai Trade 
Representative to the Americas, Europe, Australia and New 
Zealand. As expected, Finance Minister Somkid Jatursripitak 
will retain the Finance portfolio but with the additional 
authority of serving concurrently as a Deputy Prime Minister. 
 Deputy Police Chief Chidchai Wannasathit will be elevated to 
Interior Minister and will also serve as a Deputy Prime 
Minister.  General Thammarak Isaragkura na Ayudhaya will 
become Defense Minister again as General Sumphon Boonyanan, 
the incumbent, leaves the cabinet.  In a switch she resisted 
(despite it being widely regarded as a promotion), Ms. 
Sudarat Keyuraphan, the Public Health Minister and Thai Rak 
Thai (TRT) Bangkok faction leader, will become Agriculture 
Minister, probably charged with cleaning it up.  Commerce 
Minister Watana Muangsook, who had been strongly rumored to 
be out, will move to the Industry Ministry.  He will be 
replaced at Commerce by Thanong Bidaya, a former banker, 
finance minister, and major TRT financier who is Thaksin's 
personal financial advisor. 
 
2.  (C) Among other nominees, Education Minister Adisai 
Bhodaramik is slated to retain his job (which is not being 
received well by the academic community), as is Transport 
Minister Suriya Jungrungreangkit (who is TRT 
secretary-general).  Other ministers are merely being 
 
SIPDIS 
reshuffled within the cabinet.  Labor Minister Uraiwan 
Thienthong, the spouse of powerful TRT faction leader Sanoh 
Thienthong, will take over the Social Development and Human 
Security Ministry.  Uraiwan is exchanging ministerial 
responsibilities with Sora-at Klinpratoom, who will take the 
helm at the Labor Ministry.  Deputy Prime Minister and TRT 
Chart Pattana faction leader Suwat Liptapanlop is slated to 
replace Pongthep Thepkanjana as Justice Minister.  Somsak 
Thepsuthin, now a Deputy Prime Minister, will become Tourism 
and Sports Minister.  Deputy Interior Minister Pracha 
Maleenont will become Culture Minister. 
 
3.  (SBU) First-time cabinet members include Natural 
Resources and Environment Minister Yongyuth Tiyapairat and 
Suranand Vejajjiva, who will fill a re-opened cabinet slot as 
Minister of the Prime Minister's Office.  Other Ministerial 
appointments forwarded to the King include former Petroleum 
Authority of Thailand executive Wiset Jupiban for the Energy 
Ministry, and Suvit Khunkitti for the Information and 
Technology Ministry.  The other Deputy Prime Ministers -- 
besides (soon-to-be former) Foreign Minister Surikiart, 
retained Finance Minister Somkid and new Interior Minister 
Chidchai -- will be Visanu Kruengarm, Chaturon Chaisaeng and 
Phinij Jarusombat, all holdovers. 
 
4.  (SBU) Familiar ministers who will not be returning to the 
cabinet are Deputy Prime Minister Chavalit Yongchaiyut, who 
claims to be retiring (but recently hinted at a Senate run in 
2006) and Agriculture Minister Wan Mohammed Nur Matha.  Wan 
Nur is clearly tagged with responsibility for the TRT's 
electoral debacle last month in his supposed stronghold in 
the majority Muslim southern border provinces.  Deputy Prime 
Minister Purachai Piumsombun (long regarded as one of the 
"cleanest" ministers), Science Minister Korn Dabbaransi, 
Justice Minister Pongthep Thepkanjana, and Information and 
Communications Technology Minister Surapong Suebwonglee are 
also missing from the new cabinet.  The two Chart Thai Party 
ministers from the last "coalition" cabinet, Sontaya Kunplome 
(Tourism and Sports) and Anurak Jureemas (Culture) have also 
been removed, as has Energy Minister Prommin Lertsuridej, who 
may yet get an important non-cabinet post.  Thumbnail 
sketches on some major ministers begin at para 5.  End 
Summary. 
 
FOREIGN AFFAIRS:  KANTHATHEE AS FM A PLEASANT SURPRISE; 
PREECHA AS DEPUTY, A REWARD 
 
5.  (C)  Kanthathee Suphamongkol's surprise appointment was 
immediately well-received at the Ministry of Foreign Affairs 
(MFA); several sources have told us that the atmosphere at 
the Ministry is already more "relaxed."  Kanthathee is a 
former foreign service officer who retired at Counselor rank, 
cutting short a nine year diplomatic career.  His assignments 
included a stint with the Thai mission to the UN and as head 
of the MFA's Policy Planning department, where he gained 
experience in thinking about the MFA and Thai foreign policy 
in big picture terms.  Kanthathee entered politics as one of 
the original founders of TRT and is still close to Thaksin. 
He was also close to former Phalang Dharma founder Chamlong 
Srimuang.  Kanthathee received all his higher education in 
the United States:  a B.A. in Political Science from UCLA, an 
M.A. in International Studies from American University, and a 
Ph.D in International Relations from USC. He is regarded as 
sharp and ambitious, but straight-forward and friendly to the 
U.S. 
 
6.  (C)  Some are attributing Surakiart's ouster as foreign 
minister to his penchant for dropping the prime minister's 
name too often in routine conduct of his job and to 
widespread discontent among the professional diplomatic corps 
with his autocratic ways in dealing with them.  Others say 
that Kanthathee just convinced Thaksin that it was his time. 
Surakiart stays in the cabinet as Deputy Prime Minister and, 
apparently, as Thailand's candidate to become UN Secretary 
General. 
 
7.  (C)  In contrast to Kanthathee, Preecha Laohapongchana, 
the named Deputy Foreign Minister (a new position for the 
Thaksin administration), has no foreign affairs experience. 
He is a businessman, politician, and TRT party deputy leader 
who has twice served as Deputy Industry Minister (in 1997 and 
1998-99). Preecha was elected as a Chart Thai Party member of 
Parliament (MP) from Ubon Ratchathani in the 1980's and 90's. 
 He defected to the TRT in 2001 and was elected as a TRT 
party list MP that year.  Preecha is believed to be a major 
financier of the TRT.  An MFA contact characterized his 
latest appointment as a political "reward." 
 
DEPUTY PRIME MINISTER AND FINANCE MINISTER - SOMKID 
JATURIPITAK 
 
8.  (C)  It is an open secret that Somkid Jaturipitak badly 
wanted to leave behind the finance portfolio and the 
operational and implementation demands of that job and become 
"economic czar" of Thailand, overseeing economic strategy as 
Deputy PM.  Apparently unable to find anyone suitable to 
immediately take on the critical Finance position (see 
below), Somkid has agreed to remain as Minister in addition 
to Deputy PM by creating additional Deputy Finance ministers 
who will act as "chief operating officers," implementing the 
policies that Somkid and the PM hand down.  Deputy Finance 
Minister Varathep was said to be a favorite candidate to 
become minister but was 1) considered too young and 2) 
considered too close to the PM,s sister - an important 
member of TRT and businesswoman. Somkid is probably 
Thaksin,s closest economic advisor. 
 
MINISTER OF DEFENSE -  GENERAL THAMMARAK ISRANGKURA NA 
AYUTAYA 
 
9.  (SBU)  Gen. Thammarak,s reappointment as Minister of 
Defense owes a great deal to his success -- as chairman of 
the TRT election campaign in the Northeast -- in delivering 
126 TRT candidates to the Parliament.  His campaign strategy 
was believed to play as pivotal a role in this latest Thaksin 
electoral success as it did in the 2001 election.  Thammarak 
was one of the 25 co-founders of the TRT, and has taken an 
active role in the party,s political activities and 
strategies.  Gen. Thammarak was elected as a party-list MP in 
the January 6, 2001 election.  After that election he was 
appointed Minister attached to the PM,s Office, and was 
promoted to be Minister of Defense in October 2002.  He was 
switched to a Deputy Prime Minister slot in March 2004 and 
was removed from the cabinet in October in order to free him 
up to exercise his considerable skills as a political 
operative. 
 
MINISTER OF INDUSTRY - MR. WATANA MUANGSOOK 
 
10.  (C)  Speculation abounds as to why Watana was moved from 
Commerce minister over to the Ministry of Industry.  Many 
observers consider that his performance at Commerce was 
mediocre and expected him to be dropped from the cabinet. He 
was also caught up in some scandal allegations that he 
provided favors to the Charoen Pokphand (CP) Group of 
companies, which is owned and run by people to whom he has a 
family connection.  A common explanation for Watana's 
survival is that Thaksin wanted to keep him as a minister 
because of the PM,s own close relationship with CP.  Watana 
previously served in the Prime Minister's office.  By 
shuffling Watana,s portfolios, the PM manages to maintain 
this corporate connection while deflecting public attention 
from Watana,s actual record.  Watana is also recognized as 
an effective money-raiser for TRT. 
 
JUSTICE MINISTRY A "REWARD" FOR TRT FACTION LEADER SUWAT 
 
11.  (C)  Suwat Liptapanlop is former leader of the previous 
TRT government's erstwhile coalition partner Chart Pattana 
Party (also CP)  Since bringing the CP party into the TRT 
last year, Suwat has enjoyed a growing influence in TRT as 
head of his former CP members' faction and as Deputy Prime 
Minister.  The Justice Ministry is a big political payoff for 
Suwat.  Suwat will be an important interlocutor with the U.S. 
on issues such as human rights, good governance and 
democracy.  As a powerful political player Suwat can be 
expected to exercise a considerable degree of personal leeway 
in running the ministry.  The Justice Ministry oversees law 
enforcement, including probation, rights and liberties 
protection the Special Investigation Department, forensic 
investigation, narcotics suppression and immigration. 
 
DEPUTY POLICE CHIEF CHIDCHAI TAKES OVER POWERFUL INTERIOR 
MINISTRY AND DPM SPOT 
 
12.  (C)  Once approved by the King on March 11, Deputy 
Police Chief Chidchai Wannasathit will head Interior, one the 
RTG's "power ministries," and become a Deputy Prime Minister. 
 He is reportedly very close to the Thaksin, with a past of 
obliging him on carrying out "dirty" activities.  Their 
association dates from the time they studied together at the 
Police Cadet Academy and later when they pursued their 
studies in the US together.  As Minister, Chidchai will 
oversee all 75 provincial administrations (save for Bangkok) 
including all provincial governors, district chiefs and local 
officials.  The ministry oversees community development, land 
planning, disaster prevention, public works and local 
administration. 
 
COMMERCE MINISTER - DR. THANONG BIDAYA 
 
13.  (C)  A longtime banker and academic with advanced 
degrees in economics and management from Northwestern, Dr. 
Thanong was most recently Chairman of Thai Airways.  He was 
Minister of Finance during the Chavalit government when the 
RTG devalued the Baht, giving him a popular image of being 
weak in the face of the IMF.  According to street talk, he 
tipped off Thaksin about the devaluation, which saved Thaksin 
millions while others lost their shirt in the Asian financial 
crisis.  Thanong is believed to have been a generous banker 
when Thaksin was starting out in business.  He has 
essentially functioned as Thaksin's personal financial 
advisor since then.  Rumors are already circulating that 
Thanong will act as Commerce minister for a period long 
enough to rebuild the public,s faith in him and then be 
named Finance minister.  Aside from the personal connections, 
Thaksin is said to have considerable confidence in Thanong,s 
abilities, considering him a "Mr. Fix-it". Thanong was made 
President of Thai Military Bank during a period when the bank 
had liquidity problems, and the PM,s family later bought 
shares. He was appointed by the PM as Chairman of the 
National Economic and Social Development Board early in the 
first Thaksin administration following criticism from this 
government think-tank of Thaksin,s economic policies. 
 
MINISTER OF TRANSPORT - SURIYA JUNGRUNGREANGIT 
 
14.  (SBU)  Suriya Jungrungreangit, another Thaksin loyalist, 
is a major party financier and the TRT Secretary-General. His 
rise to this important party leadership position in January 
2002 came as a surprise, and was attributed to his relatively 
neutral status among factions in the TRT party.  Suriya 
joined the newly-formed TRT party in August 2000 and has been 
a party insider since.  He ran in the January 2001 election 
as a TRT Party List candidate, and was elected.  He was 
subsequently selected by PM Thaksin as Industry Minister and 
then, in the October 2002 cabinet reshuffle, was given a new 
portfolio as Minister of Transportation.  In the February 
2005 election, Suriya contested again as a TRT Party List 
candidate, was re-elected, and will stay in charge of the 
transport portfolio. 
 
MINISTER OF NATURAL RESOURCES AND ENVIRONMENT - MR. YONGYUTH 
TIYAPAIRAT 
 
15.  (SBU)  Yongyuth Tiyapairat, a first time minister coming 
in as Minister of Natural Resources and Environment, is a 
Thai Rak Thai party list MP.  Like the Prime Minister, he 
comes from the northern part of Thailand, the area around 
Chiang Rai, and is considered one of the closest political 
advisors to Thaksin.  Yongyuth served as Government Spokesman 
for the first half of Thaksin,s first administration and as 
the PM,s secretary-general for the second half. Attentive 
observers believe Yongyuth,s elevation to a ministry is a 
result of his electoral efforts this past year that resulted 
in Thai Rak Thai winning all eight seats in Chiang Rai and 
three seats in Phayao districts. His particular environmental 
interests include forest conservation, addressing illegal 
logging and conserving water resources. 
 
AGRICULTURE MINISTER SUDARAT -  AN UNWILLING APPOINTEE? 
 
16.  (C)  Agriculture Minister Sudarat Keyuraphan was 
reported by some of the media on March 11 to be disappointed 
that she will not remain at the Ministry of Public Health 
(MOPH), even though Agriculture is considered by most to be a 
more important ministry.  Sudarat has no real agriculture 
background but has supposedly been chosen because Thaksin 
needs someone he can trust in this scandal-ridden portfolio. 
He insisted that she take the job.  Sudarat, a TRT faction 
leader (in Bangkok) in her own right, is the polite, smart 
face of TRT.  Under her ministership, the MOPH had a good and 
open relationship with the USG.  Hopefully, Sudarat will 
bring a fresh awareness of the need for transparency and 
dialogue with Thailand's trading partners to the Agriculture 
Ministry.  Sudarat has had experience in her former Ministry 
of Public Health portfolio in dealing with institutional 
corruption somewhat effectively, but the Ministry of 
Agriculture is a bigger portfolio in terms of money and 
power, and has a long history as a playpen for the venal.  An 
immediate question is how well she will work with her Deputy, 
Newin Chidchob.  Newin has been almost continually involved 
in scandals, and as a political operative been accused of 
vote buying and worse, including in the recent general 
elections.  Newin's bad reputation, plus his generally 
abrasive personality, could quickly lead to tensions between 
the two. 
 
ADISAI STAYS AS EDUCATION MINISTER 
 
14.  (C)  Many academics and educators are disappointed with 
the retention of Adisai Bhodaramik as Education Minister. 
They regarded him as not being interested in this portfolio 
and slow to make decisions, even those necessary for the 
day-to-day running of the ministry.  His selection is 
particularly unfortunate as Thailand in general badly needs 
comprehensive educational reform, and revision of the 
curriculum in the South in particular has taken on special 
urgency.  The choice of Adisai seems at odds with Thaksin's 
recent declaration that overall education reform will 
highlight his second term.  The bright spot at Education is 
the naming of Rung Kaewdaeng, a well-known and respected 
educator, as Adisai's deputy. 
 
LONGTIME TRT SPOKESPERSON GETS MINISTRY OF THE PRIME 
MINISTER'S OFFICE 
 
15.  (C)  Suranand Vejajjiva has been Thaksin's principal 
spokesperson and flak catcher over the past several years. 
He has been handed another difficult job.  Suranand told the 
Embassy on March 11 that he has been asked by Thaksin to be 
in charge of the "human rights issue" as the Minister of the 
Office of the Prime Minister.  This could involve the public 
relations savvy and very glib Suranand putting the best face 
on bad human rights policies.   On the plus side, Suranand is 
close to Thaksin and has been a regular contact of the 
Embassy.  He could prove to be a good channel to the PM on 
our human rights concerns.  Suranand, who is a cousin of 
opposition Democrat Party (DP) Leader Abhisit Vejajjiva, was 
considered too junior for a Deputy Prime Minister position so 
the Minister of the Prime Minister's Office, previously 
abolished in the wake of state sector reforms, was 
"recreated" for him. 
BOYCE