The Royal Thai Navy (RTN) is prepared to pull out of the submarine deal with China if the conditions for the procurement are not met, RTN commander-in-chief Choengchai Chomchoengpaet said yesterday.
Adm Choengchai said the Thai navy wanted the Chinese navy to guarantee the Chinese-made CHD620 engine that China Shipbuilding & Offshore International Co (CSOC) wants to use in the S26T Yuan-class submarine it had ordered back in 2017.
The original contract called for the installation of the well-proven German-made MTU 396 diesel engine, but Berlin will not allow its sale to China, as the engines are considered a military and/or defence item.
The navy will discuss the submarine procurement with CSOC early next month, he said.
The company will be asked to provide a clear timeframe for submarine construction because the navy needs to prepare its budget ahead of time, Adm Choengchai said, noting there were several delays in responding to RTN's queries about the engines.
The navy chief also said it would be ideal if the Chinese navy would guarantee the engine's suitability for the submarine.
"Without a guarantee, we cannot be confident of its quality," he said.
Asked whether the navy could terminate the procurement project if its conditions are not met, Adm Choengchai said: "Yes. It can be terminated anytime."
"But there should be negotiations and they should present their arguments. There will be negotiations and the Chinese armed forces will take part in the matter," the navy chief said. Asked if he was concerned about bilateral relations, the navy chief said good ties should be protected.
When asked if he discussed the matter with Chinese President Xi Jinping at last week's Asia-Pacific Economic Cooperation summit in Bangkok, Adm Choengchai said the matter was not discussed.