China rail deal to be inked today

China rail deal to be inked today

Thailand and China will sign two memorandums of understanding (MoU) on the joint development of dual track railways in Thailand and trade in agricultural products on Friday.

Prime Minister Prayut Chan-o-cha and his Chinese counterpart Li Keqiang will witness the contract signing ceremony on Friday afternoon at Government House in Bangkok.

Observers say the deals underline a growing warming of ties between the countries.

Once the MoU on cooperation to develop the Thai railways is signed, China will be responsible for the construction of a 734km standard-gauge dual track railway stretching from Nong Khai, Nakhon Ratchasima and Kaeng Khoi to the Map Ta Phut deep-sea port in Rayong's Eastern Seaboard.

China will also develop another 133 kilometre route, which will link Kaeng Khoi in Saraburi to Bangkok.

This will be Thailand's first standard gauge railway project, with tracks that are 1.435 metres wide.

Under the government-to-government deal, the two countries have agreed to establish a joint committee to oversee construction of the route in accordance with the MoU, said Deputy Transport Minister Arkhom Termpittayapaisith.

Transport Minister Prajin Juntong will represent Thailand as co-chairman of the joint committee, alongside the president of the National Development and Reform Council of China.

ACM Prajin will sign the railway construction contract on behalf of Thailand.

The Chinese minister of railways will sign the contract for Beijing.

Meanwhile, the MoU for cooperation on agricultural trading will also give a boost to Thai and Chinese diplomatic relations, which have been ongoing for almost 40 years, Mr Akhom said.

Both parties will convene once more to decide on the exact quantity of products that China wishes to purchase from Thailand, particularly rubber and rice.

China has initially agreed to buy 2 million tonnes of rice, including one million tonnes of newly harvested grains and another million tonnes from state stockpiles.

It has also agreed to buy 200,000 tonnes of rubber but additional details need to be discussed, Mr Arkhom said.

Commerce Minister Chatchai Sarikulya will ink the agricultural deal on behalf of Thailand.

The signing of the agreements is the result of Gen Prayut's meetings with Chinese leaders at international summits.

The meetings took place at the Asia-Europe meeting (Asem) in Milan, the 22nd Asia-Pacific Economic Cooperation (Apec) summit in Beijing and the 25th Asean Summit in Nay Pyi Taw, according to the Prime Minister's Office.

The office said the two MoUs underline China's wish to extend cooperation with Thailand in various fields, making Thailand the core of China-Asean relations, and boosting the economy and tourism industry in both countries.

Government spokesman Yongyuth Mayalarp added that Cambodian Prime Minister Hun Sen will pay a visit to Gen Prayut at Government House today, after the signing ceremony with China. The Cambodian PM will hold bilateral discussions with the premier.

Vietnamese Prime Minister Nguyen Tan Dung also will meet Gen Prayut for talks tomorrow.

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