VZCZCXRO9671
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #1634/01 0790157
ZNR UUUUU ZZH
P 200157Z MAR 07
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC PRIORITY 5683
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUCPDOC/USDOC WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 02 BANGKOK 001634 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO USTR 
 
E.O. 12958: N/A 
TAGS: ECON ENIV ETRD TH
SUBJECT: PRIDIYATHORN REVEALS A CABINET IN CONFUSION 
 
REF: A. A. BANGKOK 1036 
     ¶B. B. BANGKOK 1520 
 
SENSTIVE BUT UNCLASSIFIED HANDLE ACCORDINGLY 
 
¶1.  (SBU) Summary. Recently-resigned government economic czar 
Pridiyathorn told the Ambassador that the current government 
is weakly led, faction-ridden, and under threat of being 
replaced. While mindful of the self-serving nature, and some 
contradictions, in his remarks, this is more evidence of the 
internal problems the current government is experiencing. End 
Summary. 
 
¶2.  (SBU) On March 15, Ambassador Boyce hosted 
recently-resigned former Deputy Prime Minister Pridiyathorn 
Devakula to lunch. Pridiyathorn was extremely frank in his 
assessment of his former cabinet colleagues and the Byzantine 
politics which he claims required him to resign on February 
28 (reftels). 
 
Can,t Anyone But Me Do This Job? 
-------------------------------- 
 
¶3. (SBU) He began by relating the dysfunctional nature of the 
cabinet, due largely to PM Surayud,s reluctance to stamp his 
authority on issues except those related to problems in the 
South or police reform. On all other issues, Pridiyathorn 
says, he left each minister to decide for himself how to 
proceed, resulting in fragmented overall policy, including 
the issuing of compulsory licenses by the Health Minister 
without consulting the rest of the cabinet. (Comment: This 
corresponds to what other insiders have told us. These 
sources cited Pridiyathorn as one of the worst offenders of 
non-coordination. End comment.) &I would have been more 
dictatorial8 as PM, Pridiyathorn exclaimed, &we needed 
complete peace of mind for a year.8 
 
¶4.  (SBU) When Pridiyathorn was asked to join the cabinet, he 
apparently expected to be able to appoint all the other 
economic ministers in his role as overall coordinator of 
government economic policy. Instead, he claims that he was 
able to name only the ministers of commerce and energy, with 
others apparently named directly by Surayud at the direction 
of Privy Council President Prem. This lack of a 
well-coordinated and crafted team, the majority of whom 
Pridiyathorn believes were not up to the tasks at hand, is a 
major factor in the ineffectiveness of this government, a 
description Pridiyathorn readily accepted. 
 
¶5.  (SBU) From the earliest stages of his time in office, 
Pridiyathorn said, he saw signs of weakness in the appointed 
government.  Specifically, he mentioned that once the 
National Legislative Assembly (NLA) voted against passage of 
a new lottery law (presented by Pridiyathorn) it was evidence 
that the NLA &had an opposition party.8 This grouping was 
led by Prasong Sonsiri, who had lost out in the race to 
become President of the NLA.  Pridiyathorn blamed Surayud for 
not trying to stifle this opposition and for not attempting 
to play politics. Pridiyathorn noted that &politics were 
never discussed in cabinet.8 
 
The Resignation 
--------------- 
 
¶6. (SBU) When asked about the events that led to his 
resignation, Pridiyathorn said he had &facts and 
assumptions8 but seemed fairly certain he knew what had 
happened. As he related the story, a group led by media 
personality Sondhi Limthongkul, CNS General Saprang and 
former owner of Thai Petrochemical Industries Prachai decided 
to replace the current appointed government with the PM slot 
going to the head of the CNS, General Sonthi. Pridiyathorn 
described Sonthi as having been a modest soldier when the 
coup occurred, but with the power of his new position and 
with the cabal &whispering in his ear,8 he began to believe 
that perhaps he should replace Surayud. This cabal organized 
the entire Somkid affair (reftels) to create sufficient 
political turmoil to set the stage for a new government. This 
goal was furthered by Sondhi,s on-air tirades against 
Pridiyathorn. Pridiyathorn was chosen as the scapegoat by the 
cabal because of the controversy surrounding his decisions on 
capital controls and Foreign Business Act amendments. In the 
end, the plot failed because Somkid resigned too soon for the 
plotters to act.  Despite Somkid leaving, Pridiyathorn 
resigned because he felt that Surayud had not properly 
supported him and went back on a promise to keep Sondhi off 
the airwaves. 
 
Capital Controls 
 
BANGKOK 00001634  002 OF 002 
 
 
---------------- 
 
¶7. (SBU) Pridiyathorn related his reasons for imposing harsh 
capital controls:  a baht rising uncontrollably threatening 
the ability of exporters to maintain markets at a time when 
other policy instruments would not work. 
 
¶8. (SBU) Looking to the future, Pridiyathorn believes a 
successful referendum on the constitution is dependent on 
ensuring the PM post is an elected, not appointed, position. 
He believes there is no other issue that will compel people 
to vote against a new constitution. As for his future, 
Pridiyathorn says he plans to run his boutique hotel in 
Chiang Rai. While he still admires PM Surayud, he believes 
that his weak leadership has upset even the King, and as a 
result Surayud will never become Privy Council President as 
had been expected prior to the coup. 
 
¶9. (SBU) Comment:  We take everything Pridiyathorn says with 
a generous serving of salt. It is not just that it is mostly 
self-serving but at times does not correspond to what he told 
us before. A small example:  shortly after he took office he 
said that the coup leaders had asked him to be, first, PM, 
then when he declined because he felt he was not up to the 
national security aspects of the job, the generals offered 
and he accepted the post of Deputy PM. This time he said that 
Surayud was the one who invited him to join the cabinet. 
 
¶10. (SBU) Comment continued. Despite this caveat, the picture 
he paints of a weak, politically confused government riven 
with factions in cabinet, in the CNS, and in the NLA 
corresponds to what is evident in the lack of results. 
Pridiyathorn several times expressed longing for a leader 
like former (appointed) PM Anand, &someone with brains to 
unite the people.8 He clearly does not see any of the 
current government as fitting that description.  End Comment. 
BOYCE