22-5-2024 (BANGKOK) In a move that has garnered significant attention, Thailand’s Defence Minister, Sutin Klungsang, has revealed that the long-awaited negotiations between the Royal Thai Navy and its Chinese counterpart regarding the procurement of an S26T Yuan-class submarine from China are nearing their final stages. However, he has urged the public and stakeholders to exercise patience as the intricate details are being meticulously ironed out.
According to Minister Sutin, the negotiations, which have been ongoing for an extended period, are expected to conclude within the next one or two months. During this crucial phase, any loose ends will be addressed, and a comprehensive agreement will be finalized.
While acknowledging the public’s curiosity and desire for transparency, Minister Sutin emphasized the need for confidentiality at this juncture. He stated that the latest results from the negotiating table must be treated as classified information, as mutually agreed upon by both parties involved.
“We’re not intending to hide anything from the public, but we should never say anything much as to do so may cost us some negotiating power,” Minister Sutin cautioned. “I strongly believe this will end well.”
The minister specifically appealed to the opposition parties, urging them to exercise patience until the government deems it appropriate to address all the questions and concerns raised regarding the submarine procurement.
Adding a layer of complexity to the negotiations is the introduction of a potential trade exchange component, which has contributed to the prolonged timeline. Minister Sutin acknowledged that the Pheu Thai-led government has set a new requirement for any new military hardware procurement projects to be accompanied by a barter trade deal.
This development has necessitated additional deliberations and negotiations, further extending the process. However, the minister remained optimistic about the outcome, expressing his belief that a satisfactory resolution would be reached.
The submarine procurement deal dates back to 2017 when China Shipbuilding & Offshore International Co (CSOC) was contracted to build the submarine for 13.5 billion baht under a government-to-government agreement with Thailand.
The construction process, which was reportedly halfway finished, faced delays due to the COVID-19 pandemic and was subsequently put on hold due to an issue regarding the engine. The original deal stipulated the use of a German-made diesel engine, but Germany refused to sell the engine to China, citing its designation as a military/defense item.
