Srettha lays out defence buy plans
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Srettha lays out defence buy plans

barter and counter-trades back in vogue

Prime Minister Srettha Thavisin is pressing ahead with a proposal to reform the armed forces, starting with a major change to how weapons procurements are conducted, according to an armed forces source.

Some armed forces leaders met the new premier last week when they discussed how the new government will implement its policies regarding military and security affairs.

At the meeting, the armed forces chiefs were informed that deputy Pheu Thai leader Sutin Klungsang, a civilian, would be the defence minister.

Mr Sutin said he met former defence minister Gen Thammarak Isarangkura na Ayudhaya and asked him for advice on his role. He also plans to seek advice from other former defence ministers on how to do the job.

Mr Srettha assured the armed forces leaders that the Pheu Thai-led government didn't aim to "hurt" them as it sees their importance in providing the country's defence.

"Mr Srettha said although reform is necessary, it will be gradual,'' the source quoted Mr Srettha as saying.

As for weapons procurement, Mr Srettha pledged the government will continue supporting the goal, but says procurement plans will have to be supported by potential economic benefits which Thailand will gain in return from buying weapons.

"Any weapons procurement plan will have to be accompanied by a deal to import products from Thailand,'' said the source.

A plan to procure new weapons for 80 billion baht, for instance, will have to be sealed along with a deal with that country to import agricultural and other products from Thailand in return for a total value of 100 to 200 billion baht.

So, the armed forces will have to consult the Ministry of Commerce about such trade deals, to ensure the country benefits at large from any new weapons procurement plans.

This weapons procurement policy appears similar to the barter- and counter-trade system adopted for weapons procurements in the past, although this policy might sound a little more flexible, the source said.

The downside was that Thailand may need to buy weapons from a specific country but that country's needs to buy goods from Thailand might vary.

The barter- and counter-trade system was applied by the Thaksin Shinawatra administration to an air force plan to buy fighter jets.

Thaksin at that time wanted the air force to buy fighter jets from Russia which was to import chicken from Thailand in return; however, the air force wanted to purchase either F-16 jets from the US or Gripen jets from Sweden.

In the end, a military coup was staged and the air force ended up buying the Gripen, not the Russian-made fighter jets.

Mr Srettha will take his cabinet to swear themselves in before His Majesty the King on Tuesday before the policies of the 11-member coalition are declared in parliament, possibly next Monday.

The first cabinet meeting will follow on Sept 12 when various proposals to cut energy prices and a proposal to push to elect a new constitution drafting assembly will be discussed.

The policy statement is being drafted after talks which Pheu Thai had with coalition partners in the past week.

On Friday, the United Thai Nation Party (UTN), for instance, proposed during a meeting with Prommin Lertsuridej, chief of Pheu Thai's team working on the party's policies and economic affairs committee, to incorporate the UTN's policies into the coalition's energy, industrial and financial policies, said a source.

Among the policies proposed by the UTN include a proposal to free up oil imports as an ideal way to tackle high oil prices and an associated proposal to free up imports of natural gas to help curb electricity costs.

The policy statement which will be delivered during a two-day presentation in parliament is almost ready, said Mr Srettha.

Mr Srettha said he will leave Thailand on Sept 18 for the 78th session of the UN General Assembly (UNGA 78) in New York City, though it would not be possible to join the 43rd Asean Summit in Jakarta on Sept 5-8.

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