Synopsis of the Cabinet Meeting On March 10th, 1998, the Cabinet meeting came up with the following resolutions: ** Acknowledgment of the 16th progress report on the solutions of the child prostitutes in Thailand, as proposed by the Ministry of Industry as follows ; 1) organised the 74 courses of career training among the 1,188 young children, aged between 13 - 18 years-old, as the main target. 2) offered the loans to 251 people, at the amount of 5,005,000 baht for operating their businesses. 3) encouraged the market activities to 614 people. 4) organised the business management courses for the entrepreneurs 5) provided the knowledge of models of products to the entrepreneurs 6) provide further assistance to the trainees to be enable to concentrate on their career such as the house-hold industry and handicrafts. ** Acknowledgment of the result of negotiation between the Ministry of Finance and the Asia Development Bank /ADB to borrow fund for carrying out the social safety net programme, as proposed by the Ministry of Finance. The Cabinet also had the following endorsement ; 1) to assign the government agencies concerned; comprises of the NESDB, Office of the Budget Bureau, the Ministry of Labour and Social Welfare, the Ministry of Education, the Ministry of University Affairs, the Ministry of Public Health and the Ministry of Interior etc, to conduct the measures based on the Policy Matrix to be completed on time. 2) to assign the Ministry of Finance, on behalf of the Thai Government, to borrow the ADB’s fund, at the amount of US$ 500 Million, and to assign the Minister of Finance or his representative to sign the loan contract and other document concerned on behalf of the Thai government. (*****The details of this resolution is in the last section of the synopsis****) ** Edorsement of the draft Agreement between Thailand and Myanmar on the Double Taxation Avoidance, as proposed by the Ministry of Finance. In this regard, the Cabinet also assigned the Ministry of Foreign Affairs to continue the diplomatic procedure officially. Based on the Agreement, it will be beneficial to the two countries in various aspects as 1) to abolish or relief the double taxation problem between the two countries 2) to guarantee the fair and accurate tax payment in order to boost the investment atmosphere and confidence 3) to promote the capital and technology movement across countries and 4) to enhance Thailand’s competitive advantage in this region ** Acknowledgment of the result of negotiation between the Ministry of Finance and the EXIM Bank of Japan to borrow fund for supporting the financial liquidity of the export sector, as proposed by the Ministry of Finance. Moreover, the Cabinet agreed as follows; 1) to endorse the Ministry of Finance, on behalf of the Thai Government, to guarantee loans of the IFCT and the EXIM Bank of Thailand, at least US$ 300 million each. 2) to include the loan of the EXIM Bank in the Annual Debt Performance in the year 1998. However, the loan of IFCT is excluded from this Annual Debt Performance. 3) to assign the Minister of Finance or his representative to sign the contract of guarantee and other document concerned. ** Endorsement of the Draft Regulation of the Office of the Prime Minister regarding the National Committee on Debt Management for the Agricultural Sector, as proposed by the Ministry of Finance. The regulation aims to solve the financial problem of the agricultural sector continuously and systematically, both in short and long terms. Most of all, it will help design the guideline of agricultural development to be relevant with the economic, social and political changes. ** Endorsement in principle of the Draft Ministerial Regulation regarding the Act on Epidemic in Animals of B.E. 2499 in order to declare a nutria (known as a myocastor coypus) as the prohibit import-animal. The regulation aims to protect and control the epidemic in both animals and humans such as bubonic plague, foot and mouth disease, tuberculosis and rabies, of which a nutria is a carrier. *****The additional details of the 2nd resolution****** The Finance Ministry’s proposal regarding the Asia Development Bank (ADB)’s loan for the social safety net. Ministry of Finance was designated to sign the US$500 million loan contract and agencies concerned was assigned to complete the task as planned in the policy matrix. For the 1st withdrawn of US$300 million which can be made immediately after the contract comes into force, will be allocated to the following agencies. However, some conditions are required before the withdrawn. 1. Ministry of Labour and Social Welfare: it requires the letter of the Permanent Secretary confirming the extension of health protection and services, including the disability, maternity and death. 2. The Budget Bureau: it requires the letter of confirmation on the following measures : - the need of 17,100 million baht for the Educational Fund in the 1998, the criteria on budget allocation to various fields such as sciences, mathematics, foreign language as well as teacher training. - the control plan on the employment of primary teachers. - the maintaining of budget in 1997 and 1998 for primary and secondary school and for the primary and secondary school outside Bangkok. - the letter of confirmation on the maintaining of budget in 1998 for the Public Assistance Scheme, which will increase to 7,029 million baht. - the budget in 1997 for mother protection will be maintained. - budget for EPI will increase by 80 million baht. - budget for HIV/Aids infection will increase by 105 million baht. For the 2nd withdrawn of US$200 million which will be completely made within March 1999. (The Finance Ministry expects to complete the withdrawn by the end of 1998). The required conditions are as follows: 1.The NESDB : it requires the criteria of the Poverty Benchmark to be used as guidelines for agencies concerned. 2.Ministries of Interior, Education, Public Health and Agriculture and Cooperatives. - it requires the letter of recommendation that budget allocated to solve the poverty problems is based on the fact and in line with the Poverty Benchmark of NESDB. 3. The Secretariat of the Cabinet : it requires the following task: ** Approval of the draft Bill on the training promotion in order to draw private participation in the Skill Development Fund by the end of the fiscal year of 1999 (February 1992) ** Approval of the promotion plan of labour competitiveness. ** Approval of the draft law regarding the personnel administration and salary of the teacher in primary and secondary school. ** Approval of the draft law regarding the general administration and plan to downsize the personnel of the Educational Ministry by at least 25 per cent as well as the decentralization to province. 4. The Government : it requires the following task: - Sufficient budget must be allocated for the project as follows: 4.1 Public Assistance Scheme of which about 25.7 million people will benefit from and also another 3 millions who have been affected from the economic crisis. 4.2 Voluntary Health Card of which about 2 million cards will be issued and covering 9 million people approximately. 4.3 The Corporatization process of which private sector will be invited to participate in state hospitals will be strengthened. By at least one pilot project must be started in rural area. --------------------------------------------------------------------------------------------------------------------------------- Government Spokesman Bureau.