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| Sunday, 19 February 2006 |
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Business talks by two leaders BANGKOK, Feb 18, 2006 (AFP) Thailand's Prime Minister opened talks Saturday with French President Jacques Chirac as the two sides sought to hammer out lucrative contracts following an evening of pomp and royal finery. Chirac's Ministers for Foreign Affairs, Defence, the Economy, Foreign Trade and Tourism were meeting with their counterparts on the sidelines of the French leader's discussion with Prime Minister Thaksin Shinawatra. The president arrived Friday for his first visit to Thailand as head of state, bringing with him top industry leaders as Paris seeks greater involvement in the region. "Chirac's state visit confirms what the Thai and French people have known for some time. They can build friendly relations, profitable economic cooperation and a partnership in development ... that has been put on the back burner for too long," Thai newspaper The Nation said in a Saturday editorial. He was welcomed by King Bhumibol Adulyadej and Queen Sirikit, who held a state banquet in his honour where Chirac announced the first of what are expected to be several agreements signed during his stay. France will join an Association of Southeast Asian Nations (ASEAN) treaty banning violence to settle disputes in the region, Chirac said, becoming the first Western nuclear power to join other non-ASEAN members Australia, India, China, Japan and New Zealand as signatories to the treaty. Also travelling with Chirac are about 30 business leaders keen to help expand bilateral trade, which grew 37 percent year-on-year to 2.8 billion euros (3.3 billion dollars) in 2005. France is Thailand's third-biggest European trading partner, and one of Europe's largest investors in the kingdom. Chirac has told Thaksin that he wants to see more French businesses set up shop in Thailand, and in 2004 the two countries signed an action plan to boost business and political cooperation. Thaksin has also called for more French investment in the country. "Thailand has a great potential for French companies to invest here, not just for the domestic or the neighbouring markets, but for the region as well," he said. There was also room for French automotive companies to expand their presence in Thailand, which was the 14th largest carmaker in 2005 with 1.14 million autos produced, Thaksin said. Thaksin said he welcomed a proposal by French retail giant Carrefour to distribute high-quality Thai agricultural products at its stores worldwide, and intended to discuss it with the company's chairman on Saturday. The deal hinges on Thailand easing zoning restrictions for the retail sector, French diplomats and Carrefour officials have said. French companies are also on the hunt for contracts in Thailand's massive 44-billion-dollar public works programme -- especially for mass transit, water and defence, diplomats said. But some analysts say recent political upheaval in Thailand could scare investors off the mega-projects. Thaksin has been faced by repeated calls for his resignation, and anger
over conflict of interest allegations tied to his management of the telecoms
giant Shin Corp have sparked two mass rallies in Bangkok in recent weeks. |
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