In this issue:

China and North Korea announced new six-party talks

The U.S. Senate shot itself in the foot again, with a vote to cut aid to Malaysia

Malaysia is the leading economic supporter for East Timor and Papua New Guinea

Thai/Myanmar military-to-military exchange

Thailand may withdraw its troops from Iraq

Thailand considers huge rail and urban rapid transit project

From Volume 2, Issue Number 44 of Electronic Intelligence Weekly, Published Nov. 4, 2003
Asia News Digest

China and North Korea announced new six-party talks

Without setting a time frame, Chinese legislative head Wu Bangguo, on a three-day visit to North Korea, and his hosts, announced Oct. 30 that they were in agreement "in principle" to call a new round of the six-party talks. The agreement comes as the U.S. proposal for a five-party security guarantee for North Korea, and the setting of a mutually agreed schedule for dismantling North Korea's nuclear weapons capacities, has been accepted as the basis for discussions by Pyongyang. China's role in moving this forward is acknowledged as crucial by all parties.

In Washington, President Bush did a "drop-by" on a meeting between the visiting Chinese Defense Minister, Gen. Cao Gangchuan, and NSC Chief Condi Rice, thanking China for its role in the Korea crisis.

The U.S. Senate shot itself in the foot again, with a vote to cut aid to Malaysia

The U.S. Senate voted without dissent on Oct. 28 to cut $1.2 million in military aid to Malaysia, until the Secretary of State determines that Malaysia "supports and promotes religious freedom, including tolerance for people of the Jewish faith." Malaysia is known as one of the world's most religiously tolerant nations. Malaysian Prime Minister Dr. Mahathir responded (with memories of Suharto's "Go to hell with your aid" still fresh in the minds of all Asians): "It doesn't make any difference to us. We don't really need that money."

The action was taken ostensibly in response to outgoing Prime Minister Mahathir Mohammed's speech to the Organization of the Islamic Conference on Oct. 16, where he included in his attack on Muslim irrationality and support for suicide bombing, a comment on "Jews running the world." This erroneous statement was then used as an excuse for an outpouring of the hostility which certain Western circles have toward the Prime Minister, due to his implementation of currency controls, and attacks on bloody speculator George Soros. (see last week's EIW)

In response to the vote, Dr. Mahathir joked about the hysteria: "They want to dictate to the world. We are all being run by the US Senate! It's no good having our own elections. We'd better vote in the US elections, and then we can be sure we get the right representatives."

Malaysia is the leading economic supporter for East Timor and Papua New Guinea

Some 18 months after East Timor (Timor L'este) celebrated its independence, Malaysian Prime Minister Dr. Mahathir bin Mohamad was the first head of government to visit the newest independent state, and to pledge support for the struggling nation's success. In the course of a 60-hour visit Oct. 24, Dr. Mahathir laid the foundation stone for the future site of the Malaysian Embassy, held talks with his counterpart Mari Alkatiri, paid a courtesy call and had lunch with President Xanana Gusmao, addressed the Timor Leste Parliament, met the 200-odd Malaysians living and working here, held a dialogue with Malaysian and local businessmen, and launched a Malaysian initiated youth website.

President Gusmao, who has repeatedly said that Malaysia is the best model for its development, broke protocol to spend more time than planned with Dr. Mahathir.

Referring to Timor's potential petroleum resources, Dr. Mahathir cautioned: "Most developing countries do not have the means to extract their natural resources." Historically, he said, oil majors had cheated the poor countries by paying them less than $1 for a barrel of oil. When a foreign reporter asked whether he was making a veiled reference to difficulties between the Timor Leste government and Australia over oil and gas reserves, Dr. Mahathir's immediate response was: "We say in Malay, he who bites the chile, will feel its heat. So if you feel the heat, maybe it's because you are involved. As far as Malaysia and its national petroleum company Petronas, I've given assurance that it is not Petronas' intention to come here and take the oil for itself. We have come here to provide some advice, based on our experience in dealing with multinationals who enter into production sharing agreements."

From East Timor, Dr. Mahathir travelled to Papua New Guinea, his third trip to this "Land of Paradise" where Malaysian firms are the leading Asian investor.

Thai/Myanmar military-to-military exchange

In apparent defiance of U.S. demands for isolating and confronting Myanmar, fifty Thai Army generals holding inactive posts planned to tour Myanmar between Oct. 28-30, to get to know the top brass. Army advisory chairman Gen. Vichit Yathip was expected to lead the group of 50 major-generals, lieutenant-generals, and full generals holding advisory and specialist posts, in one of the largest official foreign trips involving generals.

Myanmar's director of strategic intelligence, Major-General Kyaw Win, was to be in charge of the visitors. The intent, Gen. Vichit said, was for Thai and Myanmarese military leaders to get to know one another better, and to forge closer military ties and improve bilateral links. Gen. Vichit said Prime Minister Thaksin Shinawatra would pay a visit to Myanmar next month to meet his counterpart, Gen. Khin Nyunt, to follow up on progress on cooperation against illicit drugs.

Thailand may withdraw its troops from Iraq

Defense Minister Thammarak Isarangkura na Ayudhya told the Thai Senate foreign affairs panel Oct 29 that, "We won't risk the lives of our forces if the security situation in Iraq gets worse." Most of the 447 Thai troops in Iraq are in Karbala, where Thammarak says they are safe. The Thai units are mostly engineers and medics.

Col. Boonchu Kerdchok, commander of the Thai troops in Iraq, remained yesterday about the situation in Karbala, but admitted the situation was tense after last week's killing of three U.S. and Polish soldiers in Karbala. He said local Iraqis were friendly and cooperating with the Thai troops, who were receiving cooperation from local religious leaders, in areas otherwise deemed unsafe. The Thai unit is launching a school-building project.

Thailand considers huge rail and urban rapid transit project

The infrastructure projects are estimated to cost $25-50 billion, which could be funded in part through the creation of mutual funds, one of which might be called the Rail Mass Transit Fund, according to Thai officials. The immediate infrastructure targets are a nationwide double-track rail system, integrated mass transit for vehicle-clogged Bangkok, along with coastal roads and bridges in southern Thailand.

The Finance Ministry said Oct. 29 it could raise enough money from private investment and state and local budgets, to finance massive infrastructure projects worth almost $25 billion over the next six years. The ministry was responding to questions following the announcement by Prime Minister Thaksin Shinawatra Oct. 28 that the government was planning to set up mutual funds worth between $2.5-$5 billion, to partly fund these infrastructure projects.

Prime Minister Thaksin was also asked if the government would pursue legalizing gambling, which has been a long-standing political hot potato in the country. Thaksin answered firmly, not now.

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