Thai PM to make convertible curren

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Subject: Thai  PM to make convertible currency plea in Burma 


The Nation

Date: 13 May 1997 

PM to make convertible currency plea in Burma 

BY NITSARA SRIHANAM 

PRIME Minister Chavalit Yongchaiyudh will urge his Burmese counterpart during 
his visit this weekend to move towards introducing convertible currency to 
remove foreign exchange risks for Thai traders. 

Chavalit plans to raise the foreign exchange problem during his Friday and 
Saturday visit to Burma. According to Dr Virachai Techavichit, an adviser to 
the premier, Thai traders have complained about the foreign exchange risk 
because they have to deal with double currency exchange rates: an official 
rate of 6 kyat, and the more realistic rate of 170 kyat per dollar. The 
foreign exchange risk causes exporters to face an exchange rate loss. 

The US administration has announced sanctions on Burma, out of concerns over 
human rights abuses in that country. Virachai said Thailand will not follow 
the hard core attitude adopted by the US government. Thailand will instead 
talk to the SLORC and see what Thailand could do to help Burma revive the 
economy. 

''Thailand and Burma are close friends sharing a long boundary. The US 
sanctions cannot change the relationship between Thailand and Burma," Virachai 
said. 

''Because of this, I think the US understands well that it is not possible to 
urge Thailand to suddenly stop connections with Burma due to geographical 
factors. Moreover, the US does not seem to be serious about Burma. 

''It has to announce sanctions to respond to public pressure. Chavalit's trip 
is to promote investment in Burma, therefore, nothing should impede the 
objective of the trip." 

Chavalit will ask Burma to help Thai investors supervise not only the big 
projects, but the small and medium projects in which Thai investors 
participate in Burma. He will also urge the SLORC to liberalise foreign 
exchange to make the exchange rate more realistic. 

Thailand will ask Burma to support projects such as port construction and 
industrial area projects. Thailand will suggest Burma develop a plan to 
promote foreign investment by offering the model of Thailand's Board of 
Investment. 

''Now Burma has no specific organisation to watch over investments in the way 
the BoI does in Thailand," Virachai said. 

''If foreign investors want to invest they must contact nearly all SLORC 
ministries. 

Thailand will show the BoI system as an example to persuade Burma to set up an 
office to support foreign investment."