APPENDIX V
Memorandum from the Foreign and Commonwealth
Office: Thailand
The Clerk of the Quadripartite Committee, has
requested, on behalf of his chairman, a memorandum from the Foreign
and Commonwealth Office on the agreement between the UK and Thailand
referred to in an Observer newspaper article of 10 November.
The Observer article in question is referring
to a Joint Minute on Defence Co-operation signed on 18 October
by the British Ambassador, Mr Barney Smith, and the Thai Deputy
Prime Minister, General Chavalit Yongchaiyudh. This was not a
secret deal. Details of the Joint Minute were passed to the press
on signature. A copy of the Joint Minute has been placed in the
libraries of both Houses of Parliament.
The Joint Minute takes forward the modernisation
of the Royal Thai armed forces, a significant element of the bilateral
co-operation envisaged in a Joint (UK/Thai) Statement made public
after the meeting in London in May 2002 between Thai Prime Minister
Thaksin Shinawatra and the British Prime Minister. The Joint Minute
expresses the views of the two Governments on a specific element
of the proposed defence co-operation, namely a commercial agreement
between BAe Systems and the Royal Thai Government, the details
of which are a matter for BAe Systems and the Royal Thai Government.
Riot control equipment and second hand frigates
from the Royal Navy form no part of any discussions between BAe
Systems and the Royal Thai Government. As yet no export licences
related to the agreement have been sought or issued.
The agreement centres on the concept of economic
compensation which it is hoped will stimulate new economic activity
in a number of sectors in Thailand, including agriculture, education,
manufacturing industry and new research and development.
The Observer article reports that the
British Government has concluded a deal, which involves the British
Government facilitating Thai agricultural exports to the UK. The
British Government has concluded no such deal. BAe Systems' proposals
involve increasing Thailand's capacity to produce goods, including
agricultural goods, and market them world-wide. But any Thai exports
to the UK would need to meet all normal import requirements. There
is no suggestion of "lowering our standards" to accommodate
Thai goods.
2 December 2002
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