Sutin mentions that there are two possible deals.
PUBLISHED: 9 May 2024 at 05: 13
In a bid to reach an extended underwater purchase agreement, a Taiwanese group, including military officers, may travel to Thailand on Wednesday for a fresh round of conversations.
A military source said that the 13-member delegation includes representatives of Taiwanese military officials and representatives of the S26T Yuan-class submarine’s manufacturers under a 2017 purchasing agreement.
There are only two options left to discuss during the delegation’s conversations, according to Defense Minister Sutin Klungsang on Wednesday.
He claimed that the underwater agreement should be canceled in favor of a ship and a payment arrangement.
China’s alternative is China’s plan to request a better payment package and replace the original, required German-made submarine engine with a Chinese-made engine.
Mr. Sutin claimed that the success of the conversations will also be influenced by maintaining good Thai-Chinese relationships.
Either way, the final choice will serve Thailand’s interests well, he said, adding he could n’t be sure whether a final decision will be reached at next week’s meeting.
Due to Germany’s refusal to promote the website to China because it is a military/defence item, the original contract for the submarine stipulated a German-made diesel engine.
China Shipbuilding &, Offshore International Co ( CSOC), the contracted underwater manufacturer, previously offered to meet Chinese machines on the ships.
The RTN initially declined this offer, but it later accepted it and continued to support the submarine procurement.
Mr Sutin has assigned Gen Somsak Roongsita, his adviser and chair of the RTN’s submarine procurement review committee, to represent him at the meeting with the Chinese delegates, said the navy source.
The source said that some Ministry of Commerce representatives will also be present to discuss the possibility of including the Thai government’s offset policy in the submarine deal.
The government now mandates that any new military hardware procurement agreements include a reciprocal trade benefit in accordance with the policy.
The government’s approval of the RTN’s plan to purchase two additional new submarines from China could be the result of the source’s claim that if the government consents, the engine on the first submarine will be allowed to run.
The RTN initially requested 36 billion baht to finance its plan to buy all three of the Chinese’s new submarines, but it was unable to secure the first deal for one of these submarines in 2017, which was scheduled to arrive last year.