US embassy cable - 05BANGKOK4998

C O N F I D E N T I A L SECTION 01 OF 03 BANGKOK 004998 
 
SIPDIS 
 
E.O. 12958: DECL: 08/03/2015 
TAGS: PGOV, TH, Cabinet Reshuffle 
SUBJECT: THAILAND:  THAKSIN'S FIRST CABINET RESHUFFLE 
BRINGS FEW NEW FACES 
 
REF: BANGKOK 4238 
 
Classified By: AMBASSADOR RALPH L. BOYCE.  REASON: 1.4 (D) 
 
1.  (C)  Summary:  Prime Minister Thaksin unveiled the first 
reshuffled cabinet of his second administration on August 2. 
Though Thaksin made a significant number of changes within 
his cabinet, there were few new faces.  Ostensibly, the 
reshuffle sought to demonstrate Thaksin's resolve to confront 
a slowing economy, corruption allegations and continuing 
violence in the country's deep south.  In fact, it had more 
to do with juggling political concerns among factions in his 
Thai Rak Thai party.  For the time being, policy changes and 
implementation are likely to be slower as ministers learn 
their new portfolios and juggled reporting lines and 
responsibilities are settled.  The majority of the Thai 
public is unlikely to be convinced that real changes in 
government policy or performance are afoot.  The latest 
Thaksin Cabinet follows in para. 2.  End Summary. 
 
2.  (U) 
 
New Cabinet members: 
 
Air Chief Marshal Kongsak Vantana - Minister of Interior 
 
Pongsak Ruktapongpisal  - Minister of Transport 
 
Prawit Rattanaphien - Minister of Science 
 
Gen. Chaiyanan Charoensiri - Deputy Minister of Transport 
 
Ministers with new portfolios (13): 
 
Somkid Jatusripithak - Deputy PM & Minister of Commerce 
(Previously Deputy PM & Minister of Finance) 
 
Pol. Gen. Chidchai Vanasatidya - Deputy PM & Minister of 
Justice 
(Previously Deputy PM & Minister of Interior) 
 
Suwat Liptapanlop - Deputy PM 
(Previously Minister of Justice) 
 
Suriya Jungrungreankit - Deputy PM & Minister of Industry 
(Previously Minister of Transport) 
 
Newin Chidchob - Minister attached to the PM,s Office 
(Previously Deputy Minister of Agriculture & Cooperatives) 
 
Pracha Maleenont - Minister of Tourism & Sports 
(Previously Minister of Social Development and Human Security) 
 
Somsak Thepsutin - Minister of Labor 
(Previously Minister of Tourism & Sports) 
 
Adisorn Piangket - Deputy Minister of Agriculture & 
Cooperatives 
(Previously Deputy Minister of Transport) 
 
Preecha Laohapongchana - Deputy Minister of Commerce 
(Previously Deputy Minister of Foreign Affairs) 
 
Thanong Bidaya - Minister of Finance 
(Previously Minister of Commerce) 
 
Sora-at Klinpratoom - Minister of Information and 
Communications Technology 
(Previously Minister of labor) 
 
Wattana Muangsook - Minister of Social Development & Human 
Security 
(Previously Minister of Industry) 
 
Chaturon Chaisang - Minister of Education 
(Previously Deputy Prime Minister) 
 
Ministers removed (3): 
 
Suwit Khunkitti - Minister of Information & Communications 
Technology 
Korn Dabbaransi - Minister of Science and Technology 
Adisai Bhodaramik - Minister of Education 
 
A SOP TO FACTIONAL POWER IN THE TRT 
 
3.  (C)  The reshuffle appears to be a boost for the Wang Nam 
Yom faction in the Thai Rak Thai (TRT) party.  Faction leader 
and former Transport Minister Suriya Jungrungreankit, under 
fire over the CSX airport corruption scandal, was not only 
moved sideways to the "A-list" Industry Ministry, but was 
also appointed Deputy Prime Minister.  This appears to be 
designed to help shield Suriya (and Thaksin) from continuing 
accusations of irregularities committed during his watch in 
the award of construction bids (including accusations by the 
opposition against Thaksin's sister Yaowaret) for the new 
airport.  It should also satisfy the powerful Wang Nam Yom 
faction, which consists of about over 100 MPs mainly from the 
TRT stronghold in the country's Northeast.  Suriya's fellow 
faction leader Somsak Thepsutin also did well in his switch 
from Tourism to Labor Minister. 
 
4.  (C)  Another major, though waning faction within the TRT, 
the Wang Nam Yen, retained its Culture Ministry seat, held by 
faction leader Sanoh Thienthong's wife, Uraiwan, despite 
Sanoh having skirmished with Thaksin earlier this year. 
Sanoh's open defiance of Thaksin, ostensibly over his 
spending policies but actually over Sanoh's unhappiness over 
what he considered shabby treatment in the award of 
government positions by the Prime Minister, was the first 
open factional revolt within the TRT.  But Sanoh's supporters 
largely backed away from Sanoh when called upon to support 
Transport Minister Suriya in last June's censure debate. 
Sanoh has been quiet since, and Thaksin wanted to keep him 
that way. 
 
5.  (SBU)  Sudarat Keyuraphan, close to Thaksin and head of 
the strong TRT Bangkok faction, retained her important 
Agriculture Ministry.  Deputy Agriculture Minister Newin 
Chidchob, head of the "Buriram faction" of former Chart Thai 
party defectors to the TRT, became Minister attached to the 
PM,s Office.  There had been rumors of tension between Newin 
and Sudarat. 
 
6.  (C)  Factional politics probably also played a role in 
the appointments of Preecha (financier of Wang Phatanak 
faction -- allied with the Wang Bua ban faction headed by 
Thaksin's sister Yaowapa) and Sora-at (defector from Wang Nam 
Yen).  Pracha is a major TRT financier, Watana represents the 
CP Company (another major contributor to the TRT), ACM 
Kongsak recently married the personal secretary of Thaksin's 
wife, Gen. Chaiyanan is a close friend of Gen. Chaiyasit 
Shinawatra (Thaksin,s cousin), and Pongsak was the Prime 
Minister's close advisor. 
 
7.  (C)  Military class politics may have played a role in 
General Chaiyanan's entry into the cabinet.  He was the 
commanding general of the Royal Thai Supreme Command's Armed 
Forces Development Command, an organization that does not 
have a counterpart in the U.S. military.  The AFDC primarily 
oversees nation-building and construction projects, among 
other things, administered by the Supreme Command. 
Historically, it affords offers many opportunities for 
feathering ones nest.  Chaiyanan is from the same military 
academy class as Chaiyasit Shinawatra.  By resigning his 
post, he allows his deputy, LTG Pornchai Kranlert, to serve 
as the acting head of the AFDC.  Pornchai was the President 
of Class 10 (Thaksin,s class) and will likely be promoted to 
four star and made permanent head of the AFDC in October. 
Thus continues the phonomenum of Thaksin's Class 10 taking 
powerful positions within the Thai military and police. 
 
FINANCE AND COMMERCE PORTFOLIOS SWAPPED 
 
8. (C) The swapping of the Finance and Commerce portfolios 
was an effort to put Dr. Thanong Bidaya, a former Governor of 
the Central Bank, into a portfolio more appropriate to his 
background, especially as the RTG plans to move bank 
regulatory functions from the Bank of Thailand to a new 
regulatory structure under the Finance Ministry. In moving 
over to head the Commerce Ministry, Dr. Somkid Jatsusripitak 
failed to remove himself from operational responsibility of a 
ministry, a goal of his for the past several months. Somkid 
had sought to confine himself to overseeing macroeconomic 
issues, including FTAs. Sources tell us that his "failure" to 
do so is a combination of Thaksin's confidence in Somkid's 
abilities, as well as an inability to attract new people of 
sufficiently high caliber to important positions. It is not 
yet clear whether, with Suriya now Minister for Industry as 
well as a Deputy Prime Minister, the economic-related 
ministers (Finance, Commerce and Industry) will continue to 
report to Somkid as Deputy Prime Minister for Economic 
issues. Also unanswered is which minister will lose his 
position when the Commerce and Industry ministries complete 
their planned merger. 
 
OLD WINE IN OLD BOTTLES 
 
9.  (C)  Comment:  The first Cabinet of Thaksin's second 
administration (unveiled in March, 2005) failed to generate 
much enthusiasm.  This one won't fare much better.  Of 
primary interest to U.S. interests will be the government's 
approach to dealing with southern unrest as well as its 
efforts to cope with slowing economic growth (not to mention 
the U.S.-Thai FTA).  Although key ministries bear watching 
(Chidchai, Somkid and Thanong come to mind), Thaksin will 
continue to call all the important shots.  End Comment. 
BOYCE