THAILAND CANCELS OIL AND GAS PACT WITH CAMBODIA

By D. Arul Rajoo

BANGKOK, Nov 6 (Bernama) -- Thailand has cancelled an eight-year-old
memorandum of understanding (MoU) with Cambodia on the oil and gas-rich
overlapping area in the Gulf of Thailand as it continues its feud with its
neighbour.

Foreign Minister Kasit Piromya said the MoU was signed in June, 2001, when
Thaksin Shinawatra was the Prime Minister.

"The MoU was pushed by Thaksin and he knew the details of the negotiations.
We cannot negotiate anymore based on this MoU as it will affect our economy and
security," said Kasit, who is currently attending the two-day Mekong sub-region
summit in Japan, in a telephone interview with the media here.

Kasit said as there was not much progress made since the MoU was signed, the
government felt that it should be scrapped so that it can find new ways to start
afresh in dealing with the Cambodian side.

Tension between the two neighbours rose again Thursday when Bangkok recalled
its ambassador to Phnom Penh as a form of retaliation over Cambodia's decision
to appoint the fugitive Thaksin as its economic advisor.

Cambodia immediately followed suit by pulling back its ambassador to
Thailand.

Under the agreement signed in 2001, Thailand and Cambodia, which share
26,000 square kilometres of overlapping area, agreed to delimit and develop as a
joint development area for oil and gas exploration.

Cambodian Prime Minister Hun Sen caused stir during the recent 15th Asean
Summit in Hua Hin, Thailand, when he first announced his intention to appoint
Thaksin and to allow him to stay in Cambodia.

Both countries have been on loggerhead since last year when Thailand
protested Cambodia's move to list the ancient Preah Vihear temple as a World
Heritage site. Soldiers from sides had clashed on several occasions.

Both Thai Prime Minister Abhisit vejjajiva and Hun Sen are expected to hold
talks over the latest dispute in Tokyo on the sidelines of the Mekong Summit.

Kasit's secretary, Chawanon Intarakomalyasut, told reporters here that so
far there was no decision to close borders between the two countries, adding
that it was up to the security forces to monitor the situation and take
necessary measures.
-- BERNAMA