Japan approves Yen 63 billion loan to Thailand for mass transit rail system

TOKYO, Feb 7 (TNA) -- The Japanese government has given the green light on providing Yen 63 billion to Thailand to help finance constructing a mass transit rail system designed to improve urban communication and ease traffic congestion in the Thai capital, Prime Minister Abhisit Vejjajiva said on Saturday.

Mr. Abhisit, who is now on a three-day official visit to Thailand aimed at encouraging Japanese businessmen to invest more in Thailand and boosting trade between the two countries, said the approval was made during his talks with his Japanese counterpart Taro Aso on Friday.

The loan will be used for financing the long-delayed construction of the 66.8-kilometre 'Red Route' from Rangsit in Pathum Thani province, passing through Bang Sue and Hua Lampong to Mahachai in Samut Sakhon province.

Mr. Abhisit said he had also discussed bilateral relations wwith Mr. Aso, while the Japanese leader expressed his wish to see countries in the Asian region respond to deal with the global economic meltdown as Japan also wanted the Association of Southeast Asian Nations (ASEAN) to support it in playing a significant role in the Greater Mekong Subregion (GMS) project.

Cambodia, China, Laos, Myanmar, Thailand, and Vietnam are members of the GMS development project which involves comprehensive cooperation in many areas – trade, tourism, telecomnunications, transportation, energy, and the environment.

Mr. Abhisit said Thailand and Japan will again cooperate on battling the world economic slump as they did before during the 1997 Asian financial crisis, which originated from Thailand.

Touching on Thailand's political changes, Mr. Aso told Mr. Abhisit that he expected Thailand could overcome political obstacles and the problem would not become a hindrance to cooperation between the two countries. (TNA)