24-10-2023 (BANGKOK) Thailand has taken a firm stance with China, requesting either a reduction in the price of the frigate that the Royal Thai Navy (RTN) intends to purchase in lieu of a submarine, or the inclusion of weapons on the ship, according to Defence Minister Sutin Klungsang. Prime Minister Srettha Thavisin has tasked Sutin with addressing the situation, which arose after China was unable to provide an S26T Yuan-class submarine equipped with a German-made engine, as stipulated in the 2017 contract signed with the RTN. Due to European Union sanctions that prohibit Germany from supplying equipment for potential use in Chinese military hardware, Beijing suggested a Chinese-manufactured engine as an alternative, a proposal that the RTN ultimately rejected.
Consequently, the Thai navy has decided to purchase a frigate from China. However, the price tag for the frigate is set at 17 billion baht, which exceeds the original budget allocated for the submarine procurement by 1 billion baht.
Following a Cabinet meeting on Tuesday, Sutin clarified that Thailand will engage in negotiations with China in an attempt to bring the price of the frigate back to the initial 17-billion-baht cost.
“If Beijing declines the price reduction, they will be expected to supply the ship with weapons installed, rather than delivering a barebones frigate,” asserted Sutin.
Sutin emphasized that the change should not be seen as a violation of the contract by the Chinese shipbuilder; rather, it is a means of addressing non-compliance with the original agreement.
“This issue goes beyond a simple purchasing contract. We must also consider our broader relationship and strategic cooperation with China,” he pointed out.
