CROP TRADE OFFER TO CUT DRUGS

Khin Nyunt Supports Proposal For Summit

Prime Minister Thaksin Shinawatra yesterday offered Burma preferential
trade terms for crops cultivated as substitutes for drug derivatives.

The premier made the offer after Lt-Gen Khin Nyunt, the visiting first
secretary of Burma's State Peace and Development Council, said the Wa had
promised to stamp out drugs by 2005 and turn to other cash crops.

Foreign Minister Surakiart Sathirathai said Lt-Gen Khin Nyunt also
confirmed Rangoon's intention to realise agreements earlier reached with
Thailand on the exchange of intelligence, and for diplomats of the two
countries to play a bigger role in curbing drugs.

Lt-Gen Khin Nyunt also confirmed Rangoon's support for a Thai proposal for
heads of state of Burma, China, Laos and Thailand to convene in a summit to
signal their serious intent to wipe out the trade in illegal drugs.

He held separate talks with Mr Thaksin, Defence Minister Chavalit
Yongchaiyudh and Mr Surakiart, who will host lunch for the Burmese guest
today..

Mr Thaksin briefed Lt-Gen Khin Nyunt on Thai plans for foreign labour in
the next few months since military measures might be needed occasionally.

The prime minister also spoke about repatriation plans for displaced
persons, making it clear Thailand would not push them back against their
will. Thailand would co-operate with international agencies to build
settlements in safe areas inside Burma that would provide voluntary
returnees with vocational training.

Lt-Gen Khin Nyunt agreed to the idea in principle and would leave the
matter for further discussions in a meeting of the Thai-Burmese Joint
Commission roughly planned for December in Phuket.

It will be the first time the issue of displaced people will appear on the
agenda.

He also proposed in talks with the foreign minister the creation of a joint
task force to manage Burmese workers. The new body, which would comprise
foreign affairs, and labour and social welfare officials on the Thai side,
could be ready for inclusion in a memorandum of understanding on
cross-border labour for the two foreign ministers to sign at the yearend
meeting in Phuket.

Burma also wanted Thailand to send a team to negotiate a joint fishery
venture, promising to give the matter special consideration, Mr Surakiart
said. Burma was asked to ease financial conditions for Thai investors so
they could form joint fishery ventures with Burmese partners.

Burma closed its waters to Thailand after the October 1999 seizure of its
embassy in Bangkok by Burmese exiles.

On other issues, the two sides agreed to convene at an early date the Joint
Boundary Committee co-chaired by Win Aung, the Burmese foreign minister,
and Pracha Gunakasem, adviser to the Thai foreign minister.

The two countries' commerce ministers would meet soon to realise an earlier
agreement for co-operation in agricultural and account trade.

Rangoon will reconsider lifting a ban on 15 Thai imports imposed since 1998
on a case-by-case basis after Thailand forwards the list for consideration.
But Lt-Gen Khin Nyunt indicated that products affecting consumers' health
would not be allowed into Burma. He urged Thailand to expedite a draft on
co-operation between investment authorities.

Mr Thaksin will have experts study the feasibility of two routes to the
Andaman Sea proposed by Burma, and consider investment sources for them.

The routes will link Kanchanaburi province with Tavoy in Burma, and Bang
Saphan in Prachuap Khiri Khan with Pokpien, located further south. Thailand
would provide funding for a second bridge linking Mae Sai with Tachilek, Mr
Surakiart said.

Mr Thaksin reiterated Thailand's willingness to support national
reconciliation in Burma without interfering in any related events.

As a goodwill gesture, Burma would release 60 Thai prisoners held on
charges unrelated to drugs.

Col Chongsak Panichkul, the Defence Ministry spokesman, said Gen Chavalit
urged that problems along the Thai-Burmese border be solved in a
transparent manner. Gen Chavalit called for the settting up of a general
border committee, co-chaired by the Burmese and Thai defence ministers,
along the lines of similar ones set up with Laos, Vietnam and Cambodia.

Lt-Gen Khin Nyunt agreed to make an urgent study of these issues, both of
which are expected to be revisited during the Regional Border Committee
meeting on Sept 6-7 in Chon Buri.

Gen Chavalit and Lt-Gen Khin Nyunt agreed to set up a Thai-Burmese cultural
and economic association.