A Change of Guard

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Wednesday 27 July 2011

Thailand's warning to Germany on dispute over unpaid debt

In mid July, Germany seized a plane belonging to Thai crown Prince Vajiralongkorn over this unpaid debt.

Warning to Germany on tollway row

Published: 26/07/2011
Bangkok Post

The Thai government spokesman has warned the German Foreign Ministry to be cautious in demanding that Thailand compensate a German company that invested in the Don Muang Tollway.

Panitan Wattanayagorn, deputy secretary-general to the Thai prime minister and acting government spokeman, said Tuesday that the German Foreign Ministry should get its facts right, to protect bilateral relations.

He was responding to the German Foreign Ministry's statement through the German embassy in Bangkok that the Thai government should pay 36 million euros to Walter Bau Co because an international arbitration process had been finalised with its ruling that the Thai government must pay this amount in compensation for past contractual violations that damaged Don Muang Tollway Co, of which Walter Bau is a now bankrupt shareholder.

Mr Panitan said he had understood that the German Foreign Ministry recognised the separation of the executive and the judiciary, and he was surprised that the German Foreign Ministry that seen fit to comment on the justice system.

Mr Panitan insisted that the legal dispute between the Thai government and Walter Bau was in the process of an appeal and many legal aspects of the case had yet to be considered. He said the Thai Foregn Ministry was about to explain the issue to its German counterpart right away.

Bilateral relations had been good at the levels of their governments and their people, the present issue was sensitive and the German Foreign Ministry had to be careful and ensure it has the correct information, Mr Panitan said.

The acting government spokeman said the Thai government expected good cooperation from the German government in the matter of the application to extradite fugitve former prime minister Thaksin Shinawatra, as it was reported that Germany had granted entry to Thaksin.

Mr Panitan said Thaksin had to face justice in Thailand.

Thaksin has evaded a two-year jail term that the Thai Supreme Court handed down in 2008 for his abuse of authority in facilitating his then-wife's purchase of state-owned land in inner Bangkok in 2003, when Thaksin was prime minister, at a discounted price.

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