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HEADLINES [click on headline to view story]:: Thai-Cambodian border trade lively after PM’s pledge to improve relations; International reserves surge in September; Finance minister admits aborted 3G auction affects investment climate

Thai-Cambodian border trade lively after PM’s pledge to improve relations

Cambodian Prime Minister Hun Sen has agreed to improve bilateral relations with Thailand - relations which have been impeded by a border dispute near an ancient temple, according to his Thai counterpart Abhisit Vejjajiva.

Speaking Sunday during his weekly TV and radio address, Abhisit said his meeting with Hun Sen on the sidelines of the annual UN General Assembly in New York on Friday produced fruitful results as both agreed that relations between the two countries should become lively.

He said he will meet several times with Hun Sen during upcoming sessions of the Association of Southeast Asian Nations to which both countries belong.

Friday’s meeting of the two leaders was the first time after UNESCO’s World Heritage Commission acted in late July to postpone its decision over Cambodian’s unilateral plan to manage the Preah Vihear temple complex following an objection by the Thai government.

Their cordial discussions in New York caused cross-border trade in the Thai border district of Phu Sing district in Si Sa Ket province to become lively again early Sunday, said Hattachai Pengchaem, who heads the trade and tourism operators association in Chong Sa-ngam.

Residents from both sides of the border crossed over and exchanged consumer goods, Hattachai said.

Cross border trade will again become lively, traders said, in response to seeing pictures of Prime Minister Hun Sen and Prime Minister Abhisit being cordial to one another.

“Seeing both men shaking hands during the [New York] meeting in local newspapers,” Hattachai said, was creating an improved spirit on the border.

“This is a good sign. Our peoples will gain more confidence and [the meeting] will help boost tourism, especially for Cambodia,” Hattachai added. (MCOT online news)

International reserves surge in September

Thailand’s international reserves as of Sept 17 stood at US$159.1 billion or some Bt4.9 trillion, up $1.5 billion or Bt46 billion from the $157.6 billion / Bt4.86 trillion registered the week before, according to the Bank of Thailand (BoT).

The reserve amount is calculated based on the current baht value standing at Bt30.7 to the US dollar.

The net forward contract position amounted to $12.5 billion, up $800 million from $11.7 billion listed in the previous week.

A commercial bank source said the fact that Thailand’s international reserves this week increased rather considerably from the week before was likely to have stemmed from the central bank giving more weight to possible intervention in managing the stronger baht by purchasing more US dollars in the market and keeping them in the reserve.

Last week, the Bank of Thailand experienced strong criticism in the market that it had paid little attention to overseeing the stability of the baht.

According to the central bank’s report, the cash flow circulating in the system this week totaled Bt1,008 trillion, down Bt30.8 billion from Bt1.039 trillion the week before. The cash amount had decreased despite the country’s economic recovery. (MCOT online news)

Finance minister admits aborted 3G auction affects investment climate

Finance Minister Korn Chatikavanij on Friday allowed that the Supreme Administrative Court’s decision to uphold the lower court injunction suspending the planned auction for the third generation (3G) network telecom service would have a negative impact on the country’s economy in terms of investment opportunities.

It would also deprive the public of access to an alternative choice for the use of telecom technology.

Korn said the government had two approaches to addressing the 3G development stalemate.

One is to accelerate amending the law governing establishment of a National Broadcasting and Telecommunications Commission (NBTC) to ensure it becomes effective this year.

Then, the NBTC could be set up within 180 days.

It is expected that the commission will be able to allocate frequencies and issue licenses to operate the 3G network on the 2,100 megahertz frequency.

Another option is to upgrade existing second generation (2G) wireless systems into the 3G network system on the existing frequency as many countries had already developed the 850 and 1,900 MHz frequencies into the 3G system.

However, he said, concession terms and conditions that require operators to operate the 2G network only are a key obstacle to that path of development.

The government will consider revising the concession agreement to allow the private sector to provide the 3G network service, said Korn. (MCOT online news)