Thailand approved the new constitution

Thai voters approved the new constitution promoted by the military junta that ousted former Prime Minister Thaksin Shinawatra almost one year ago. Some 45 million Thais were eligible to vote for this first-ever referendum.
Nationwide, nearly 57% of voters approved the draft constitution, compared to about 41% against it, according to the state election commission's count.
Prime Minister Surayud announced to national television: "We consider that this constitution has been approved by the people, and by the end of august the constitution will be submitted to the king Bhumibol Adulyadej for endorsement". And he added: "We promised general elections later this year. The exact date still under consideration, it could be after the King's birthday on December 5".
With the adoption of the charter, the election will take place in a significantly changed political context after the banning of the party of former Prime Minister Thaksin Shinawatra, who was ousted in the september coup and remains in self-exile in London.
Prime Minister Surayud Chulanont said about this referendum "this is the first step in moving forward to full democracy". Then he added:"If people see that there are some flaws in the constitution, then the next government will be the one to amend the constitution".
A voter, Tumee Kahnaym, 33 years old declared:"I’m voting yes, because it’s the only way the country will survive this crisis. I’m fed up with all these political deadlocks and crises".
In fact, many voters said they simply wanted an end to political turmoil and military rule, and that voting for the constitution was the best way to achieve this swiftly. Indeed, according a political scientist at Bangkok's Chulalongkorn University, Thitinan Pongsudhirak, "a lot of people voted 'yes', not completely because they backed the charter, but just because they wanted new election on december".
Futhermore, the vote shows the country remains largely divided between Bangkok residents, who staged months of protests calling for deposed Prime Minister Thaksin Shinawatra to step down, and those in the poor, rural northeastern provinces where support for Thaksin runs high, only 37% of voters approved the draft, with almost 63% opposed.
Most of the votes for the new constitution came from the central and southern regions as well as the capital, while most of the votes against the charter came from the northern and northeastern regions.
A northeast farmer in Buriram province, Nanit Chandee, said: "I don't think this constitution will do anything for the poor. It will only benefit the rich".
In this context, Thitinan Pongsudhirak think: "The divisiveness is deep-seated and the referendum has done nothing to change it".

First Thai referendum tomorrow

The government faces a test of credibility when it holds a referendum tomorrow on a new constitution that will limit the powers of politicians but lead to elections by the end of the year.
Thailand's 19 million voters have had four weeks to study the 186 pages document proposed as the country's 18th constitution.
The population expects for a return to political stability, but many opponents warn that it is “the military junta’s constitution”.
A political science professor at Bangkok's Chulalongkorn University said last week: "I think this constitution will be able to solve lot of problems that we have had faced in the past, so definitely in terms of various clauses. I think it is going to be appropriate for Thai culture and politics".
Prime Minister Surayud Chulanont said: "This is a critical transition for Thailand, so i would like to ask people to go out and vote". Then he added:"This is another test for democracy and I hope we will pass this test".
Security will be tight for the upcoming referendum about 190.000 policemen and military soldiers will be deployed to guard 88,936 polling booths throughout the country.

Thai Prime Minister reaffirmed the policy of one China

The Thai Prime Minister Surayud Chulanont repeated the Thai Senate's adherence to the "one-China Policy" on thursday afternoon. Then he expressed opposition to any action which could "affect the stability and peace of the Asian region" to answer to the latest endeavour by Taiwan authorities make accept for a United Nations membership under the name of "Taiwan". This step has induced disapproval from all the international community.
The Thai ministry of foreign affairs declared yesterday : "Thailand has fully respected and always adhered to the 'one-China Policy' and views that the Taiwan issue is China's internal affair. Thailand hopes that no action which would jeopardize the situation across the Taiwan Straits and affect the stability and peace of the Asian region will be taken".

New cut interest rate against strong baht

Thailand's army-backed government wednesdey asked the central bank to cut it’s key interest rate by 25 basis points to 3.25% the fifth consecutive rate cut this year to boost economy.
The bank’s assistant governor Suchada Kirakul said in an interview: “We decided to cut the rate after our latest figures showed that domestic consumption has declined while inflationary pressure has declined”. And she added: “The rate cut will help stimulate the economy in the longer-term and as well decrease pressure on the Thai baht”.
Despite lot of official warnings against the rising baht, the Thai currency has jumped 8% against the dollar since january 2007, following a 13% appreciation last year.
The baht on 11 july hit a fresh 10 years high of 33.18 baht against the U.S. dollar, rising from around 36 baht per dollar of the end of 2006.
At the same time Thai Prime Minister Surayud Chulanont said wednesday that the government has prepared measures to prevent the baht from appreciating to the level of 30 baht per dollar as earlier predicted by some economists.
The finance minister, Chalongphob Sussangkarn declared: “Boosting demand for the dollar will help reduce the BoT's burden to buy the dollar” then he said: We are hoping to create a flexible system to manage currency fluctuations in order to react fast to not only huge capital inflows but also possible outflows in the future”.
Another minister announced : “It's time for the central bank and the government to choose between inflation and the fact that more factories are being closed down due to falling export competitiveness amid the strong bath”.
However the Bank of Thailand governor Tarisa Watanagase declared on friday : “even though the Fiscal Policy Committee will decide to cut the one-day repurchase rate again when it meets next week there will be no guarantee that the baht value will weaken against the dollar”.