VZCZCXRO6843
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #2355/01 2591036
ZNR UUUUU ZZH
P 161036Z SEP 09
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC PRIORITY 8281
RUEHC/DEPT OF LABOR WASHINGTON DC PRIORITY
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUEHCHI/AMCONSUL CHIANG MAI PRIORITY 6983
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHMFIUU/DEPT OF HOMELAND SECURITY IA WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 02 BANGKOK 002355 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS, DRL/ILSCR, AND GTIP 
LABOR FOR ILAB 
 
E.O. 12958: N/A 
TAGS: ELAB ETRD PREL KTIP TH
SUBJECT: THAI REACTION (GOVERNMENT AND BUSINESS) TO DOL 
LISTS ON FORCED AND CHILD LABOR 
 
REF: SECSTATE 92560 
 
BANGKOK 00002355  001.2 OF 002 
 
 
¶1.  (SBU) Summary and Comment: A senior Thai Foreign Ministry 
(MFA) representative negatively reacted September 10 to 
reftel talking points regarding the release of the Department 
of Labor's (DOL) list of goods believed to be produced by 
forced labor or child labor (mandated by the Trafficking 
Victims Protection Reauthorization Act (TVPRA)), and the 
proposed update to the E.O. 13126 list of products.  The 
representative noted her "deep disappointment" that Thailand 
is being penalized for being an open society and pointedly 
stated, &This is not the way to work with friends.8  She 
also reaffirmed that the Thai government takes seriously the 
problem of forced and child labor.  Later conversations with 
other MFA representatives confirmed the Thai government's 
concern that the DOL lists will be used to restrict the 
export of shrimp from Thailand to the United States.  On 
September 14, the Secretary General of the Thai Frozen Food 
Association (TFFA) also expressed concern over the potential 
impact on his association's member companies, echoing the 
Foreign Ministry's concern.  He noted activities undertaken 
over the last year to help manage the supply chain of TFFA 
member companies and to ensure that TFFA members do not use 
forced labor themselves.  Both the MFA and the TFFA indicated 
they will make use of the public comment period associated 
with the E.O. 12136 list. 
 
¶2.  (SBU) Summary and Comment (continued): Based on the 
reaction of our MFA colleague, the tone of partnership that 
we have worked so hard to develop with the Thai government 
took a half-step backward with the publication of these 
lists.  Nonetheless, we have no doubt that we will continue 
to find a partner in the Thai government to combat 
exploitative labor in all its forms in Thailand.  In 
addition, we intend to deepen our contact with the shrimp 
industry's TFFA with the goal of strengthening our private 
sector partnerships.  Our work so far has made strides in 
that direction.  End summary and comment. 
 
Thai Government Reaction 
------------------------ 
 
¶3.  (SBU)  Post delivered reftel talking points on September 
10 to Kanchana Patarachoke, Director of the Foreign 
Ministry's North America Division, regarding the pending 
release of the Department of Labor's (DOL) list of goods from 
countries that it has reason to believe are produced by 
forced labor or child labor in violation of international 
standards; the proposed update to the 2001 list of products 
that might have been mined, produced, or manufactured by 
forced or indentured child labor; and the 2008 Findings on 
the Worst Forms of Child Labor.  Econoff emphasized that the 
TVPRA list is an awareness-raising tool and not punitive in 
nature, and that the listing of the Thai goods in question on 
the TVPRA and E.O. 13126 lists does not mean that all such 
goods are made with forced or child labor (or 
forced/indentured child labor). 
 
¶4.  (SBU) Director Kanchana repeatedly expressed her &deep 
disappointment8 and pointedly stated, &This is not the way 
to work with friends.8  She explained her view that Thailand 
is being penalized for being an open society as evidenced by 
the listing of Thai goods and not those from many other 
nations.  She opined that while a nuanced understanding of 
the lists may help observers to understand the USG's intent 
in publishing them, the reality is that most observers will 
simply see goods from Thailand listed and chose to make 
purchases from elsewhere.  As such, the Foreign Ministry has 
serious concerns over the commercial impact of the lists. 
She felt this especially true given the E.O. 13126 list's 
requirement of certifications by federal suppliers prior to 
their providing goods to USG agencies ) another 
disadvantage, in her opinion, for Thailand exporters. 
Understanding the E.O. list to be only a preliminary 
determination, Kanchana noted the Thai government would take 
advantage of the 90-day public comment period prior to the 
final determination. 
 
¶5.  (SBU) Director Kanchana noted that she understands the 
DOL lists to be part of a noble effort by the U.S. government 
to raise awareness on issues of mutual importance (to both 
Thailand and the United States) and to promote American 
values.  "No one pays more attention to USG Reports than 
Thailand, and we take seriously the problem of forced and 
 
BANGKOK 00002355  002.2 OF 002 
 
 
child labor."  Nonetheless, intentions aside, she opined that 
our efforts through the lists will be counter-productive, 
causing consternation and potentially causing some nations to 
stop trying to meet our seemingly un-meetable standards. 
 
¶6.  (SBU) Driving home the Foreign Ministry's concern over 
the commercial impact of the DOL lists, MFA North America 
Division officials placed numerous calls to Econoffs 
September 14 and 16 to inquire whether section 308 of the 
draft U.S. Senate bill "The Customs Facilitation and Trade 
Enforcement Reauthorization Act of 2009" will be used to 
prevent Thai shrimp from entering the U.S. market.  Using 
reftel talking points and information provided to post by the 
U.S. Department of Labor, Econoff explained that the USG's 
intent is not to restrict trade, but to raise awareness on an 
area of great concern and to enforce existing U.S. law with 
regard to forced or indentured child labor. 
 
Private Sector Reaction - Shrimp 
-------------------------------- 
 
¶7.  (SBU) Econoff and DHS/ICE Deputy Attache sat down late 
September 14 with the Secretary General of the Thai Frozen 
Food Association (TFFA) and Assistant Managing Director of 
the Narong Seafood Company, Arthon Piboonthanapatana. 
Arthon, not surprisingly, expressed concern over the 
implications for TFFA members of the listing of Thai shrimp 
(a key export product for TFFA members) on both the TVPRA and 
E.O. 13126 lists.  We provided Arthon with background 
material from the DOL/ILAB webpage, briefed him on the 
reasons for and scope of the lists, and informed him of the 
public comment period for the E.O. 13126 list.  Like the MFA, 
Arthon indicated that the TFFA would also provide comment to 
DOL, specifically to explain its supply-chain management 
activities undertaken over the past year.  He also stated 
that the TFFA established a rule that any member found to 
employ forced child labor would be expelled from the 
association. 
 
¶8.  (SBU) NOTE: In June 2008, Embassy Bangkok DHS/ICE and 
Economic Section officers accompanied Thai government labor 
inspectors (as well as TFFA, civil society and Foreign 
Ministry representatives) on visits to sixteen member 
companies of the TFFA to investigate the use of forced child 
labor in the Thai shrimp industry, as alleged in the December 
2008 publication of the Solidarity Center publication "The 
True Cost of Shrimp," and as confirmed by Thai law 
enforcement raids on shrimp-processing facilities in 
September 2006 and March 2008 that uncovered such practices. 
The site visits included interviews with employees, a review 
of financial records by forensic auditors, and an inspection 
of some employee living quarters.  While the site visits did 
not uncover the use of forced child labor in the companies 
visited, they helped raised awareness within Thailand on the 
issue of exploitative labor in the shrimp industry, and put 
the industry on notice that illegal activity by some actors 
within the sector was of growing concern to many in the 
international community. 
 
¶9.  (SBU) NOTE (continued): Since that time, DHS/ICE has 
maintained regular contact with the TFFA.  According to the 
TFFA, as an outgrowth of the June 2008 activity, it has begun 
weekly, random inspections of shrimp peeling facilities that 
supply TFFA members.  On August 28, DHS/ICE officials 
accompanied TFFA representatives on an inspection of two 
facilities in Samut Sakhon province.  DHS/ICE observed the 
inspection process that included a review of the cleanliness 
of shrimp peeling areas, potential safety hazards, financial 
records, and copies of identification and work permit 
documents).  No forced child labor was found on these August 
28 TFFA inspections, and none has been reported to post from 
any TFFA inspections that it may have conducted prior.  End 
Note. 
JOHN