JPRS-SEA-86-185 10 OCTOBER 1986

southeast Asia Report



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JPRS-SEA-86-185 10 OCTOBER 1986


CONTENTS LAOS Overview of USSR Aid Since 1975 (VIENTIANE MAI, 28 Jun 86) .....cceeceeccccees eeecccccce ee 1 Teachers’ Low Pay, Poor Performance Discussed (VIENTIANE MAI, 16, 17 Jul 86) eeeeoeeeeeeeeeeeeeeneeee eeeee#es: 6 Briefs Export Trade Figures 8 District Youth Union Growth 8 MALAYSIA Briefs UMNO Official on Malay Dominance 9 THAILAND Finance Ministry Deliberates on Taxation, Budget (NAEO NA, 1 Sep 86) ...c.ceeeeeeeees TYTTTTITITTTT TY seeeeees 10 Snoh Unakun Comments on Economic Development Strategy (NAEO NA, 8 Sep 86) ...ceeecccceccccees TYTTITiTT eeecccces 13 Poor Conditions Described, Minimum Wage Hike Asked (NAEO NA, 1 Sep 86) e*eenees eeeeeoeeeeeeee eeeeeeaeneeeeneeneeee eeenees 15 Speculation on Activism Against Regime; ISOC Splits (KHAO PHISET, 18-24 Aug 86) eeeer eeeeesreeeeeereeeereeeeeeeee 17 Chawalit's National Operations Center Idea Reviewed (KHAO PHISET, 18-24 Aug 86) eeeeree eeoeeeeeeeeeeeee eeeeeveeve 21 Editorial Fears Resurgence of Share Funds (NAEO NA, 7 Sep 86) .uccccecccevecees WwTTTTT TTT TTT TTT TTT 26

Further Reportage on Crown Prince Interview (NAEO NA, 28 Jui 86) ......... oeoecocesecececcece cocccees

Commentary Continues Over Lese Majeste Issue (Various sources, various dates) ....cccccccccccccccccecs

Editorial: No Use of Monarchy as Political Tool Bunchu Comments on Monarchy,

Bunchu Rotchnasathian Interview Editorial Quotes Wira's Buriram Speech


VOK Blames Government Mismanagement for Famine (Voice of the Khmer, 15 Sep 86) ......cccccecccccscces eee

Commentary Views Nonaligned Summit (Voice of Democratic Kampuchea, 11 Sep 86) ........eee00s

VONADK Battle Reports for 5-11 Sep (Voice of the National Army of Democratic Kampuchea, 3-11 Sep 86) eeereeeeeeeeeeen eeoeeeeeeeseeseeeeeeeeeeee eeeee VONADK Battle Reports for 12-18 Sep (Voice of the National Army of Democratic Kampuchea, 12-18 Sep 86) eeeveveveecer eeerevereeeeereeeeseeeeeeeeeeneeeeeees ee VIETNAM MILITARY AFFAIRS AND PUBLIC SECURITY

First Precinct Illegal Traders, Hoarders Apprehended (SAIGON GIAI PHONG, 24 Jul 86) ......... TETTTTITTIT TTT

Briefs Ho Chi Minh City Crackdown


Excessive Red Tape Adversely Affects People (SAIGON GIAI PHONG, 25 Jul 86) ..ccecccccccsccccvveevves °

Reader Calls for Administrative Judgement Organization (SAIGON GIAI PHONG, 5 Aug 86) ..ccccccccccsenceserevvvens

Tran Van Luong Provides His Public Self-Criticism (SAIGON GIAI PHONG, 26 Jul 86) ........ eoccce TETTTELIT TY

Party Cell Conducts Meeting To Criticize Tran Van Luong (Mai Van; SAIGON GIAI PHONG, 26 Jul 86) .....seeeeee Tritt




32 33












Lack of Autonomy Restricts Enterprise Operations (SAIGON GIAI PHONG, 5 Aug 86) eeeese#ees: eeeeoeeeeeeeeneeeeeeeeeee

Sidewalk Stands Conduct Covert Western Medicine Sales (Phuong Thao; SAIGON GIAI PHONG, 5 Aug 86) ..... senssaneet

Only Few Economic Associations Succeeding (SAIGON GIAI PHONG, 24 Jul 86) ..... TTTTTITI TTT cccccece

Poor Management Stymies Chicken, Egg Production (Pham Khanh Toan; SAIGON GIAI PHONG, 25 Jul 86) .........-

Negative Aspects of Ho Chi Minh City Restaurants, Pubs (Le Tien Tuyen;SAIGON GIAI PHONG, 5 Aug 86) ......eeceeees


Ho Chi Minh City Promotes Shrimp, Fish Raising ! (SAIGON GIAI PHONG, 24 Jul 86) ......cceccececcccees oecces

Tea Plantation Holds Party Organization Congress (Hanoi Domestic Service, 17 Sep 86) ..cccccecccccccccecs ee



Hue Wired-Radio Network









JPRSSEA1864185 10 October 1986


OVERVIEW OF USSR AID SINCE 1975 Vientiane VIENTIANE MAI in Lao 28 Jun 86 pp 2, 4 [Column: "Ten Years of Productive Trade and Economic Relations" ]

[Text] Trade and economic relations between the USSR and the new LPDR have been developed and promoted since 1976, right after the proclamation of the formation of the LPDR in December 1975. In January 1976, economic and trade expansion agreements and others involving relations with the USSR to aid Laos were signed in Moscow. With these agreements, Laos, which had been the target of exploitation by imperialists for many years, took a first step in having fair relations with foreign countries. The USSR and the LPDR established

their trade and economic treaties based on the principles of proletarian inter- nationalism and mutual and fraternal cooperation.

To implement these agreements, the USSR started by sending needed materials to Laos for stabilizing the country's industry and improving the living standard of its people, without thinking profitability or anything in return.

In this early period, Laos received aid worth 10.6 million rubles from the USSR. More than 70 percent of USSR exports to Laos were machinery, equipment and means of transportation. Shipments to Laos, which has no railroads nor outlets to the sea, were especially difficult. Supplies sent by the USSR also solved the supply problems for food and other consumer goods for the people and served to improve public health.

The 3rd LPRP Congress was organized in April 1982. It was stated that among

the major tasks in the economic area were expanding agricultural work, industry, forestry and railway construction suppliers, agricultural machinery, chemical fertilizers and heavy machinery. In addition, the tasks that the 3rd Congress laid out were accomplished quickly. Along with establishing all wood working enterprises, the USSR gave aid for surveys of forests and forest preserves so that we could proceed to grow trees in tree nurseries, which would increase precious tropical tree varieties.

Soviet-Lao trade has been growing quickly and constantly so that during the past 10 years the volume of materials thai the USSR has supplied to Laos has increased more than 7 times. To the present, more than 4,500 trucks have been sent from the USSR. In 1985, diesel trucks constituted 75 percent of the goods sent from the USSR to Laos.

Soviet aircraft have become the backbone of the Lao civil airline and guarantee routine domestic flights, especially in mountainous areas where it is very difficult for other means of communication. These aircraft also have guaranteed transportation between neighboring countries.

Housing construction and other industrial construction inside the country have been growing because of cement compound supplies from the USSR.

During the past 10 years, the USSR has sent 30 million meters of fabrics and thousands of wool covers and other consumer goods that Laos had been buying from capitalist countries. Beside these products, there are household electri- cal appliances, such as refrigerators, electric fans, electric stoves, electric irons, sewing machines and motorcycles, bicycles, canned foods, light bulbs, electricity generators and materials for generating electricity.

Since liberation ended, many teams of qualified Soviet advisors have been sent to work in Laos. They have come from factories for autos, plowing machinery, agricultural equipment, aircraft and other equipment. Their duty is to trans- mit their knowledge and their knowhow to inexperienced workers and technocrats in the LPDR. They teach all the advanced technology for using the latest modern equipment to its fullest capabilities.

Economic aid for Laos is primarily intended to expand the transportation system, industry, construction, agriculture, surveys of and research on natural resources, public health work, education and the training of technocrats.

Based on all the economic aid and technical agreements, all Soviet organizations have designated construction projects and supplies of materials and machinery, and they have sent experts and trained Lao cadres. And the USSR is responsible for ail expenses for students training in the USSR and for all loans to the LPDR, which are made with very flexible conditions.

Recently our cooperation has stepped up to new levels with a new quality. This shows mutual understanding in technical cooperation for carry ng out the projects, establishing special systems and supplying the means for transporta- tion parts, gasoline and other materials through international trade organiza- tions. Mutual understanding has made the various projects proceed more quickly and reach the projected figures faster than before.

In Laos, deciding to expand the transportation and communications system was an especially critical decision. The USSR has given aid to Laos in setting up a state transportation system and putting together modern means of transportation. Some projects to develop a foundation in materials and technology for communi- cations and transportation are under way. With aid from the USSR, Vietnam and other socialist countries, Route 9 connecting Laos to Danang Port is under construction.

In 1984, a 254 m long bridge was opened for traffic and the Nam Ka Ding Bridge (370 m long) on Route 13 was completed. Comp/eting these projects has helped solve most of the major problems in the year round transportation of goods coming from the USSR and other countries through Da Nang Port. In addition,

these projects also facilitate the transportation of exports from Laos to other countries.

The Soviet Union has given aid in setting up housing projects in Laos. The USSR provides good materials and a technical foundation for applying new industrial methods in housing construction and carrying out industrial projects. This has made Soviet-Lao cooperative projects proceed faster than before.

Recently, the Lad Senh Commune (in Xieng Khouang Province) was opened for operations. Technocrats and workers there were prepared in every way to raise the quality of their work, to study and research and to improve their living standard.

At present, a 150-bed hospital that can accommodate 350 patients is under construction in Vientiane Capital, which will improve public health. Construc- tion of a mid-level polytechnical school for training technocrats in energy, soil science and minerals is almost complete. The USSR is continuing to help Laos in restoring its tin mines and in setting up timbering enterprises. Completed projects funded by the Soviets are gasoline farms, garages to repair trucks and cars, garages to repair agricultural machinery, ground Intersputnik satellite stations, etc...

The training of Lao technocrats and workers is playing an important role in economic and technical relations between the USSR and Laos. Thousands of Lao are studying in the USSR in high and middle level schools and vocational schools. In addition, other Soviet advisors are also widely transmitting their knowhow to Lao cadres in school training institutes and various domestic cooperative projects.

As pointed out at the Congress of Economic and Scientific Cooperation (January 1985) by a committee of Soviets and Lao, economic and technical cooperation between these two countries during the last 5-year plan helped solve some important economic problems, promoted and improved the state's economy, increased the power of the working class and promoted the abilities of local technocrats.

Recently, restoring and maintaining the machinery and equipment given by the Soviet Union to Laos have been the major tasks emphasized and planned. An agreement for restoring and maintaining Soviet equipment for 1984-85 was signed in Vientiane in February 1984. To implement that plan, some auto and plowing equipment service stations were opened in response to needs for maintaining and distributing parts and training Lao technocrats to carry out necessary servicing of Soviet machinery and equipment. Many tasks under the plan have been completed, such as contracts for free parts for repairs in Soviet auto service stations in Vientiane. In 1984 and 1985, many groups of auto and tractor and agricultural repair technicians were trained in the USSR, and a network of stores was set up with the aid of Soviet advisors.

There is still a lot of work involved to establish a repair system for Soviet machinery and equipment in Laos.

Even though there is still a trade deficit with the USSR, trade between the USSR and Laos has been growing steadily since the beginning of the 5-year trade plan (1981-1985). The USSR has been receiving increasingly higher volumes of wooden products and plywood made from good quality wood, concen- trated minerals and metals, coffee, etc... Over the last 4 years, the total volume of goods from Laos has increased 4 times.

Loas is rich in natural resources, which is good for expanding export industries. The Lao government has paid a great deal of interest to this all along. Recently, Laos laid down some important measures that aim to increase the economic activity of export enterprises and which have made these enter- prises more independent economically and financially than before.

The management lessons that have been accumulated will help the LPDR in setting directions for developing the economy more efficiently, guaranteeing secure

and appropriate uses of natural resources and increasing energy sources for exporting goods and improving international trade.

Supplies of Soviet books, periodicals and stamps to Laos have steadily increased during the past 5 years. Supplies of Soviet books to Laos have increased by

1.5 times because more and more Lao people are interested in the heritage of Marxist-Leninist ideology and doctrine. This includes literature about history, the party, society and politics, which has played an important role in the sale of books in Laos, particularly since 1979, Laos has received thousands and thousands of books that have been translated into the Lao language. Prepara- tions for printing 12 selected volumes of Lenin's works will be completed very soon.

Books written by Gorki, Ostrovski, Polevoy and Soviet and Russian writers have been translated into the Lao language and now are ready for people to read.

School books for people who are learning the Russian language are important exports from the USSR. Learning elementary Russian is very popular among students and teachers of that language. The Lao language book "Russian Language for Everyone" was completed in 1985.

Soviet editors everywhere have begun to send more complete sets of scientific and technical books to Lao editors. They have ordered that the first set of medical science books, which has now been translated into Lao, and other medical books be prepared for publishing.

The fraternal visit in August 1985 of Comrade Kaysone Phomviharn, the secretary general of the Central LPRP and chairman of the Council of Ministers of the LPDR, showed clearly the fraternal friendliness and strong solidarity between the Communist parties of the USSR and the LPRP and between the Soviet

and Lao peoples.

During this visit he met with Comrade Mikhail Gorbachev, the Secretary General of the Soviet Communist Party, for talks about economic, scientific and technical cooperation between Laos and the Soviet Union. Both sides strongly emphasized expanding cooperation. They recognized that this issue is important to improving efficiency and making the long term obligations of both sides be based on equality and mutual interests.

During the new 5-year plan, the Soviet Union will increase economic and technical aid to the LPDR with the objectives of expanding the key economic sectors of industry, forestry, transportation and communications, restoring natural resources, developing cadres and supplying needed goods for the growth of the nation's economy.

The LPDR is increasingly emphasizing very heavily exports to the Soviet Union, which will aid the expansion and maintenance of trade and the economies of the Soviet Union and Laos.

The Soviet Union and Laos are currently completing planning for expanding economic relations for 1986-1990, which will improve the economy of the LPDR and cooperation with the USSR, and serve the interests of both countries.

12597/13045 CSO: 4206/125

JPRS+SEA 5867185 10 October 1986



[Excerpts] Dear Editor,

I have some questions to ask you about salaries for the teaching profession. These are the questions:

1. Why is the teaching profession paid so low? What are the reasons for this?

2. If a teacher and his family rely solely on his salary for living, would it be enough?

Dear Ka Chong,

The salary problem has been discussed many times. If you follow VIENTIANE MAI or other newspapers regularly, I believe that you have come across these questions before. But in order not to disappoint you today, I will give my opinion concerning salary levels, as follows:

A state salary policy has been implemented around the country. It is very detailed, very clear, very fair and suitable for the present situation.

The party and state have always stated that the policy is fair. But those who implement the policy have done it incorrectly. Weak points come from cadres, state employees and people who still have not absorbed and understood the policy and its planning. If we want to solve this weak point successfully and succeed as planned, we must make an effort to research and study the plan, assess the orders and, in general, understand the policies of the party and the state thoroughly before we can follow them and perform the work that is delegated to us.

[17 Jul 86 pp 2, 4]

[Text] The same goes for your second question. In reality, no one thoroughly understands the orders so there are violent conflicts of interest, which make some people despair and lack morale. For example, you gave the example of

teaching professionals having low salaries. Concerning this question, I do not know whether you have seen the policy concerning the salary system or perhaps

you have not researched it.

Our party and state have laid out many salary levels according to the education, abilities, qualifications, conditions of work and duties and position that one has. Therefore, teachers are like other professionals in that they receive an equivalent and fair salary level in accordance with principles that state, "Whoever works more can eat more; whoever works less eats less; whoever does not work cannot eat."

Ka Chong, you may see only one side cf the story so that you do not understand your own salary level thoroughly. Some persons look at salary levels this way: "You and I started work at the same time and with the same rank, but our salaries are different." Why? What is the cause? The state has set up broad measures for determining each individual's salary and uses realistic reasons to adjust that individual's salary. Briefly, for example: It is true that you and and I started working at the same time with the same rank, but you have more ability than I, you work better than I do without complaining, you have a good, hard work spirit, you study and research and you have the correct ideals. Therefore, compared to me, you are better. Therefore, following the principle that states that whoever works more can eat more, your salary is higher thar mine.

So many people who have not weighed out things just look at you and me, so they see the problem too narrowly. If you look at only one side of the story, than you always see it that way. Nevertheless, the economic situation in our country is such that even though we demand higher salaries, it cannot be responded to. It is no different from a situation in which we have one rice field but we want a lot of rice like other people who have fields double the size of ours; it is impossible. Therefore, J would like to urge everyone to understand the policies of the party and che state, and that together we should strive to improve and strengthen our economy, so that when national revenues are greater, we will have the materials and means to meet our needs. If we do not have patience and lack ambition and the spirit to struggle to overcome difficulties and confusion, then our country's status is like ours and it will not improve ard progress. You should compare the situations during the recent liberation and the present to see the difference between them. What has been reviewed and improved? Or is

it still the same? It's been only 10 years that we have been liberated and although we have improved in many areas, we have to continue to struggle.

Since we have been revived, I believe that victory will be ours with no problem at all.

12597/13045 CSO: 4206/125

JPRS¢SEA+86+185 10 October 1986



EXPORT TRADE FIGURES--Vientiane Capital exports and imports for the past 6 months between its twin cities Hanoi and Ho Chi Minh City in the SRV and with other socialist countries has constantly improved. Specifically, over the past 6 months, Vientiane has exported goods worth US$200,000 to its twin cities and other socialist countries, which is 15 percent of the trade for the annual plan, and only US$100,000 to capitalist countries. Along with improving and expanding exports and its relations with socialist countries, particularly with its twin cities, the export-import companies and partnership companies

of Vientiane Capital have also built facilities for producing goods for domestic use and for investing in the private sector to produce consumer goods, such as toothpaste, plastic bags, animal feed and other goods. These goods are widely aviilable in the market. [Text] [Vientiane VIENTIANE MAI

in Lao 16 Jul 86 p 1] 12597/13045

DISTRICT YOUTH UNION GROWTH--The LPRYU of Sai Settha, Vientiane City, has performed its duties with great interest over the past 6 months. Over these last 6 months in particular it has been able to expand its membership to 999 comrades, of whom 417 are female. [Excerpts] [Vientiane VIENTIANE MAT in Lao 16 Jul 86 p 1j 12597/13045

CSO: 4206/125

JPRS#SEAr86r185 10 October 1986



UMNO OFFICIAL ON MALAY DOMINANCE--Secretary General of United Malays National Organization [UMNO] Datuk Sri Sanusi Junid says it is important for all UMNO members to foster unity. Commenting on the recent controversial remarks by Kok Lanas MP Datuk Abdullah Ahmad, Datuk Sanusi said the remarks should be viewed objectively, taking into consideration namely when and where the MP was speaking. He added that everybody should consider the fact that Datuk Abdullah was speaking to an audience of intellectuals at a university in Singapore.

The remarks should not be viewed in an emotional manner. Datuk Sanusi stressed that Datuk Abdullah was speaking on his own behalf and there was nothing wrong in doing so in that forum. The MP should be treated the same

as other non-Malay personalities who express their views on sensitive issues at such forums. Datuk Sanusi said the issue might be raised at the upcoming UMNO General Assembly and people should take a serious view of the MP's remarks without resorting to emotion. [Excerpts] [Kuala Lumpur Domestic Service in Malay 1230 GMT 16 Sep 86] /9365

CSO: 4213/1

JPRSrSEAr86%185 10 October 1986



(Unattributed report: "Little Hope of Increasing the 1987 Investment Budget, Finance and Budget Bureau Can't Find Any More Money for This"]

[Text] The effort to increase next year's investment budget by 2 billion baht has created conflicts between two important units. The Ministry of Finance can't find additional revenues above the targeted budget of 184 billion baht. Funds must be found somewhere. Targets must be lowered. The Bureau of the Budget has been asked to find a way to cut regular expenditures. Budget Bureau Claims that it has already cut expenditures to the bone and that Finance should find additional revenues for the investment budget. An impasse has been reached. The cabinet must review the matter.

A news source from the Ministry of Finance stated that the committee to consider the 1986/1987 budget held a meeting on 29 August. The meeting was chaired by Mr Phanat Simasathian, the under secretary of finance. Those attending the meeting included Mr Kosit Panpiamrat, the deputy secretary general of the Office of the National Economic and Social Development Board, Mr Bodi Chunyanon, the director of the Bureau of the Budget, Mr Banthit Bunyapana, the comptroller-general, and Mr Kowit Posayanon, the deputy director of the Fiscal Policy Office.

Mr Phanat Simasathian said that the meeting was held in order to review receipts and expenditures during fiscal year 1986 and find a way to increase the investment budget for fiscal 1987.

The 1986 budget showed a budget deficit. The policy of the Ministry of Finance is not to borrow any more money. Other methods will be used to increase revenues in order to match expenditures. The departments have been charged with implementing this policy in the time remaining in this fiscal yeear.

The Revenue Department has been ordered to collect unpaid taxes totaling approximately 12 billion baht. The Customs Department is to seize contraband and collect unpaid taxes. The Excise Department is to suppress moonshine and negotiate with the Hong Thong Liquor Group to get them to pay back franchise fees totaling approximately 3 billion baht.


The Comptroller-General's Department must consider transferring non-budget funds from the state enterprises to the Ministry of Finance and make preparations for drawing foreign loan funds for deposit with the Ministry of Finance before distribution to the projects. It is thought that 2hout $200 million will be drawn this time.

The news report from the Ministry of Finance stated that those at the meeting reviewed revenue collection targets based on the 1987 budget to determine whether the targets could be hit. Total revenues have been set at approximately 184 billion baht. The Ministry of Finance may not be able to hit this target. How great the shortfall will be is under discussion.

One thing that was discussed in detail was increasing the investment budget. Several sectors want the government to increase investment expenditures ancther 2 billion baht in order to stimulate the economy. The problem is where to get the revenues for this. No one knows where to get the money for this.

The Ministry of Finance has asked the Bureau of the Budget to discuss the possibility of further cutting regular expenditures, particularly the oil expenditures of government units. It feels that in the wake of the drop in oil prices, it should be possible to cut oil expenditures by approximately 300-400 million baht. And it feels that expenditures in other sectors can be cut, too.

Actually, the Bureau of the Budget has been very strict in setting budgets and drawing funds for the various government units. The Bureau of the Budget does not allow units to draw funds or allot money for anything not considered absolutely essential.

The news report stated that at present, the Ministry of Finance and the Bureau of the Budget are at loggerheads over the issue of the Ministry of Finance's ability to collect revenues and the Budget Bureau's ability to cut expenditures. "They argued about two things during the meeting. On side said that the Ministry of Finance must collect more revenues. The other said that the Bureau of the Budget must cut expenditures. They could not reach an agreement on this. Each side must reconsider its capabilities tc see if it can do what the other side wants."

The meeting just reviewed the 1986/1987 budget in order to see what problems must be solved. Those at the meeting agreed that the economy must be stimulated by increasing government spending. But they did not agree on where to obtain the money for this. As for borrowing more money, both sides agreed that Thailand can't increase either its foreign or domestic debt. However, if there is a budget deficit problem, some money can be borrowed from domestic sources. But the amount must be kept to a minimum.


The news source said that the results of the meeting will be submitted to the minister of finance, who will submit a report to the cabinet on 2 September. Those who attended the meeting want to know the government's policy on stimulting the economy. They will then discuss this again to see where money can be obtained to increase regular expenditures.

11943 CSO: 4207/343

JPRS+SEAs86+185 10 October 1986



[Unattributed report: "Japan Can't Wait for the Eastarn Seaboard Project, Sends Representative To Accelerate Things; Cabinet To Hold Special Meeting"]

[Text] Mr Snoh Unakun, the secretary general of the Office of the National Economic and Social Development Board [NESDB], said that the cabinet will hold a special meeting on 15 September in order to discuss adjusting the economic structure. On the industrial front, production, marketing, and job creation will be improved. In the agricultural sector, adjusting the production system will be discussed. The target is to achieve self-sufficiency.

"It will take Thailand another 5-10 years to become a new industrial country," said the secretary general of the NESDB. He added that the fact that industrialized countries such as Japan, Korea, and Taiwan are having trade problems with the United States has presented Thailand with a good opportunity. The United States has implemented various measures in order to reduce its deficit. As a result, these countries must increase foreign investments.

Mr Snoh said that at present, Thailand enjoys an advantage in view of the fact that these industrialized countries must increase investments. Next week, a representative from Japan will arrive here to discuss Thailand's Sixth National Economic and Social Development Plan, the Eastern Seaboard Project, and the problems raised in the White Paper. Also, the role of the private sector in investing in Thailand will be reviewed. This is a good chance to invite Japan to increase investments here. Besides this, a representative from Taiwan will come ‘to discuss matters, too.

As for promoting investment, Mr Snoh said that on 9 September, the government will try to stimulate investment by reducing taxes on loan bonds to the same level as taxes on government deposits. Also, the structure of other sectors will be adjusted, too, in order to promote investments.

As for the results of the Thai-U.S. trade conference held at the Monthian Phathaya Hotel on 6 and 7 September, the secretary general of the NESDB said that this was a successful meeting. The two sides submitted correct data to


each other. This will help reduce the conflict and enable the two countries to coordinate their interests.

U.S. officials stationed in Thailand have taken a sympathetic position on the rice problem, particularly the problems caused by the promulgation of the Farm Act. They want clear data that they can submit to the U.S. government in order to prevent this from having an adverse effect on Thailand's rice markets.

Mr Snoh said that the sugar problem is the immediate problem today. The United States is s* '.ng sugar to China at prices below world market prices. This has driven sugar - 0s down, and the trend is for prices to continue to decline. This is having a great effect on [Thailand's sugar industry. At the meeting, Thailand asked the United States to announce a clear position. The United States stated that it will stop selling sugar at low prices. If the United States actually does this, the sugar situation should improve.

"There may be a corn problem," said Mr Snoh. He then mentioned the negotiations on industrial problems. He said that the situation in the industrial sector has improved greatly. Thailand has been on the offensive. At the meeting, the United States raised the point that Thailand enjoys a trade surplus of approximately 20 billion baht. Thailand said that when considering the balance of trade issue, the United States shouldn't look just at the numbers. It should also look at the service sector, which is a sector in which the United States makes large profits from Thailand.

The secretary general of the NESDB said that as far as the trade balance problem is concerned, Thailand must be very careful about exports that have increased rapidly in order to prevent them from using this as an excuse to implement protectionist measures. Thailand must make adjustments in exchange for special rights. For example, concerning service businesses, a law will be promulgated guaranteeing the interests of foreign businessmen. But this will not be allowed to have too great an effect on domestic businesses.

Mr Snoh also talked about solving the problem of trade protectionism. He said that this problem will be solved through the GATT. There will be an international meeting in Uruguay on 15 September. Through ASEAN, Thailand will raise the issue of agricultural products. We have been affected seriously by the measures implemented by the EEC to support their exports.

11943 CSO: 4207/343


JPRS+SEAr86+185 10 October 1986



(Unattributed report: "Prem 5 Government Encounters Major Storm on Minimum Wage Issue; Workers Threaten To Strike Unless Minimum Wage Is Increased"]

[Text] At the Bangkok Palace Hotel at 0900 hours on 31 August, the Labor Federation of Thailand held a debate on the minimum wage. Those participating in the debate included Mr Chira Hongladarom, a member of the Wage Committee, Mr Nikhom Chantharawithun, the chairman of the Labor Council advisory committee, Mr Nikhom Tengyai, a member of the Employees Faction, and Mr Suphaichai Manatphaibun. Mr Phaisan Thawatchaiyanan, the president of the Labor Federation, moderated the debate.

Mr Nikhom Chantharawithun said that today, half of the work places don't pay they employees in accord with the labor law. Employers should inform the Employees Faction about their business receipts and expenditures so that the Employees Faction can discuss whether the minimum wage should be increased. The Employees Faction shoul! give greater consideration to the incomes_ of farmers and private-sector employees.

Mr Chira Hongladarom said that the minimum wage should be raised, because it hasn't been raised in 2 years. And this year, the economy will expand approximately 5 percent. Also, the yen has increased in value. The price of agricultural products is good. If the minimum wage is increased, the farmers will feel better, because the farmers now see little hope of increasing their incomes. Besides this, there is an unemployment problem in the provinces. This will reduce the data of the Employee's Faction.

Mr Suphachai Manatphaibun said that if the employees want to increase the minimum wage, there must be solidarity among the four employees councils. They must cooperate with each other sincerely. There can't be any splits. Besides this, laborers can't rely on the students, who once supported the laborers. What is important is that in making demands, people shouldn't attack Gen Prem Tinsulanon, the prime minister. This will reduce their bargaining power. Little will be achieved. This is because Gen Prem does not like to be threatened. If people want to criticize him, they should do so indirectly. People should look for the blind spots and weaknesses of the political parties and find ways to discuss things with them in a reasonable manner.


Mr Nikhom Tengyai said that a survey conducted by the Employees Faction found that the average monthly income of employees in industrial factories was 1,864 baht. At the same time, 13.4 percent were in debt. Those who work in hotels and other service businesses had an average monthly income of 2,252 baht. Of these, 27.6 percent were in debt. The incomes of state enterprise employees averaged 2,936 baht per month, and 51.16 had debts.

As for assets, 71-75 percent of the employees did not own their own home; 74 percent did not own any land; 96 percent did not own a car; 60 percent did not have a television; and 50 percent did not have a fan. These data show that the incomes of employees, particularly employees in the private sector, are very low. In this economic situation, the minimum wage must be increased.

Mr Phaisan Thawatchaiyanan told reporters that if the minimum wage is not increased, there may be widespread strikes.

At the club of the State Railway of Thailand, Mr Bunchu Kaisit, a labor leader, arranged to meet with representatives of the railway employees to discuss wages. But only 10 representatives came. As a result, they just held an informal meeting to discuss establishing a committee to negotiate the wage problem with the State Railway of Thailand.

11943 CSO: 4207/343

JPRSrSEA+86+185 19 October 1986



(Unattributed report: "The Movement Against Prem-Chawalit; Hawks and Doves in the ISOC; a Split Within the Military")

[Text] "They are doing everything they can to wreak havoc. The ones involved are those whose interests were affected after Big Chiu cut the number of slots for ISOC [Internal Security Operations Command] experts," said a retired major general to KHAO PHISET.

At a time when the political situation cerning the formation of the Prem 5 government is at a turning point, only a few power groups have held dmonstrations against the "non-elected prime minister." But at the same time, a number of illegal leaflets have been distributed. These are an important tool to make the movement seem more resolute and vigorous.

The People's Coordinating Committee for Democracy, a Spear Aimed at Whom?

"The students are not united. The Siudent Federation of Thailand doesn't dare demonstrate, because it is afraid of interference from other groups. However, the Ramkhamhaeng University Student Association, through the Thoetram Party, which is led by Mr Bancha Saeso and Mr Surin Sukkua, is taking resolute action,” said a news source in a state intelligence unit.

Besides this, in evaluating the situation, this same news source said that the Ramkhamhaeng students don't pose any threat because they lack a mass base. And this mass demonstration was not carried out with the intention of upholding principles. Certain student leaders have contacted and received money from a political party that won fewer than 10 seats in the election.

"As can be seen, their only objective is to destroy the present military leader. The line of the Ramkhamhaeng Student Association is similar to that of the People's Coordinating Committee for Democracy [PCCD], which is headed by former members of the Krasae Tham Party," said the news source to KHAO PHISET.

A student leader who belongs to the PCCD told KHAO PHISET that the purpose of the PCCD's activities is not to attack Gen Prem Tinsulanon, the prime minister. Rather, they want to expose the senior powerholders in the military


who are using their power and influence to determine the composition of the Prem 5 government.

Before they held their demonstration, a PCCD expert told members that a group of senior military officers formed a work committee to formulate a plan of action and make preparations. They also prepared the formula for the new government in order to ask Gen Prem to serve as prime minister again.

"As for what has happened, the PCCD feels that the political parties had to give in out of fear that the military would stage a coup. The so-called brains of the army took the action that he did in order to protect the interests of his friends. The PCDD has opposed things with pure intentions. It has carried on activities on its own. We have long held to the ideas advanced by Dr Somchai Ratwichit. This line is in harmony with developing Thailand's democratic system."

The Major Operation on the ISOC, an Injury That Must be Revenged

On 28 June, Lt Gen Wanchai Ruangtrakun, the deputy chief of staff of the army and acting army chief of staff, issued an official statement to the mass media. He said that in his capacity as the director of anti-communist activities, Gen Chawalit Yongchaiyut, the RTA CINC, had ordered a major reorganization of the ISOC.

The ISOC has been made responsible for "administrative" matters only, meaning formulating plans, coordinating and supervising matters, and controlling the budget. The ISOC will no longer engage in "operations." Instead, the officials in the ministries, bureaus, and departments concerned will be directly responsible.