US embassy cable - 05BANGKOK5095

C O N F I D E N T I A L BANGKOK 005095 
 
SIPDIS 
 
STATE FOR EB/TPP AND EAP/BCLTV 
PASS TO USTR FOR BWEISEL AND TPOSNER 
TREASURY FOR OASIA 
COMMERCE FOR ITA/MAC/AP/OKSA 
 
E.O. 12958: DECL: 08/09/2015 
TAGS: ETRD, EINV, PREL, TH 
SUBJECT: DEMARCHE ON PROPOSED EXCHANGE OF LETTERS ON TREATY 
OF AMITY AND ECONOMIC RELATIONS DELIVERED 
 
REF: SECSTATE 146221 
 
Classified By: ECON COUNSELOR M. DELANEY FOR REASON 1.4(D) 
 
 
1. (C) Reftel demarche was delivered on August 9 to Dr. 
Virachai Plasai, Deputy Director General at the Ministry of 
Foreign Affairs Department of International Economic Affairs. 
 Virachai expressed appreciation for the "clear USG effort to 
consider the RTG's views and concerns on this matter" and our 
agreement to accept two of the Thai's suggested changes. 
 
2. (C) Virachai said the next step for him was to gain 
approval of the text from the Ministry of Commerce "since we 
at MFA have no problem with this formulation" and then to 
present the document to the Prime Minster who has final say 
"since it was his decision to withdraw from aspects of the 
(AER) treaty in the first place". He advised that MFA will 
suggest that the exchange of letters be a deliverable for PM 
Thaksin's September visit to Washington. 
 
3. (C) Regarding the Thai-Japan FTA, Virchai said the RTG has 
been assured by the Government of Japan that PM Thaksin is 
welcome to visit PM Koizumi before the Japanese elections are 
held. Both sides still expect the two leaders to announce an 
agreement in principle for their FTA although significant 
Rules of Origin issues remain to be worked out prior to the 
visit to be held in late August/early September. 
 
4. (C) Virachai also said that he had "received agreement 
from the Japanese" to announce that the services and 
investment chapters of their bilateral FTA would be on a 
positive list basis. The Japanese economic counselor had 
previously told us that these chapters would include both a 
listing of sectors to open and a list of sensitive sectors to 
remain protected. 
ARVIZU