Prayut govt must heed warning lights over rail deal

The Prayut Chan-o-cha government should not rush into an agreement with China over a high-speed rail system across Thailand. Why?

First, the Prayut government is not an elected government. A 

project as big as this rail system should be left for a democratically elected government to initiate and handle.

Second, China needs a rail system across Thailand more than do we, the Thai people. Remember, China needs to find a way to get its merchandise to Asean countries and Australia, apart from the available sea route that runs past Vietnam. China is eager to find an alternate route in case the conflict over islands in the South China Sea escalates and it has to cease using that route.

Third, although China has agreed to offer Thailand a low-interest-rate loan for this project, the currency to be used in the loan deal is not yet clear.

The Prayut government must realise that if the loan is in yuan, which is expected to appreciate in value at least twofold over the loan period, Thailand’s investment in this project is likely to be at least doubled.

Hence, more negotiations should be on the agenda before we commit to this proposed rail project.

Vint Chavala