Japan to provide 63 bil. yen loan to Thailand for subway system

TOKYO, Feb. 6 Kyodo -
Prime Minister Taro Aso told Thai Prime Minister Abhisit Vejjajiva on Friday
that Japan will provide a fresh yen loan of 63 billion yen to Thailand to
assist infrastructure development for the subway system in Bangkok, a Japanese
Foreign Ministry official said.

In their summit talks at the Japanese prime minister's office in Tokyo, the two
leaders agreed that the two countries will sign a criminal extradition treaty
following a recent accord reached in bilateral working-level negotiations on
the pact, the official said.
Abhisit commended Aso on Japan's pledge to provide more than $17 billion to
foster Asian countries' growth potential, while the Japanese prime minister
emphasized the need to send out a ''strong message that Asia is the world's
center of growth,'' according to the official.
On the political turmoil in Thailand, Aso was quoted as telling Abhisit, ''It
is important to regain the trust of Japanese tourists and the appetite of
Japanese companies for business in Thailand which were undermined'' by the
airport occupations late last year.
Speaking at a press conference earlier in the day, Abhisit sought to reassure
Japanese investors and tourists that stability has returned to Thailand and
that ''considerable progress'' has been made since last year's turmoil.
The Thai prime minister said he hopes his meetings with Japanese leaders and
business representatives during his three-day visit will help to expand
opportunities for trade and investment as well as cooperation to overcome the
financial crisis.
Describing Japan, Thailand's biggest investor, as the ''most important trade
and investment partner,'' Abhisit expressed his hope to explore areas for
cooperation and investment with Japan such as Thailand's agricultural and
industrial sectors.
''One of the reasons why we chose Japan as our first destination is because you
already have a strong production base in Thailand and with the current
situation of a strong yen, and also your need for high-quality food, as well as
(a) production base for alternative-fuel cars, Thailand can become a very
important partner in the future,'' he said.
Abhisit emphasized that his government's priority is to ''restore confidence in
the country,'' given that Japan is a major source of tourists for Thailand.
''When I assumed office, I gave a speech to the rest of the world that I wanted
Thailand to continue to be known as the land of smiles, the land of opportunity
and land of the free,'' said Abhisit, who became prime minister last December.
''Obviously our reputation was affected by the political incidents,
particularly the airport occupations last year, which we regret,'' he added.
''But we are very serious in addressing those concerns through the
reconciliation program (and) strengthening our measures concerning airport
security.''
With regard to the global financial crisis, which is also hitting the region,
the Thai prime minister called for cooperation both on a bilateral basis with
Japan as well as on a multilateral framework with other nations in the region.
''The way that Thailand and Japan worked together in the past to get us through
the financial crisis in 1997 is an important lesson of how we might get through
the current crisis as well as look for new opportunities,'' he said.
Abhisit, who arrived in Japan on Thursday and is accompanied by a delegation of
key economic ministers, met with Japanese business executives and
parliamentarians earlier Friday.
The leader of the Democrat Party came to power on Dec. 15 following the
collapse of the government of Prime Minister Somchai Wongsawat after months of
political chaos.
The political unrest, which culminated in the seizure of Bangkok's key airports
by antigovernment protesters, had a severe impact on the Thai economy, along
with the global financial crisis.
==Kyodo