Testimony of Congressman Mark Steven Kirk

Subcommittee on Asia, the Pacific, and the Global Environment

August 1, 2007

Mr. Chairman:

Thank you for giving me the opportunity to testify today before the Subcommittee on an issue of great importance to our country and, in particular, the Tenth District of Illinois.

On September 19, 2006, the Thai military and police overthrew the elected government of Prime Minister Thaksin Shinawatra. At the time, the popularly-elected premier was in New York City for a meeting of the United Nations General Assembly.

General Sonthi Boonyaratkalin, leader of the military coup, suspended the constitution and dissolved the Cabinet, both houses of Parliament, and the Constitutional Court.

The Department of State immediately issued a statement saying, "There's no justification for a military coup in Thailand or in anyplace else… we certainly are extremely disappointed by this action. It's a step backward for democracy in Thailand.”

As the coup was unfolding, I joined several colleagues in expressing my concern on the floor of the House of Representatives.

Madam Speaker, news reports indicate that there may be an ongoing military coup under way in Thailand against the democratically elected government.

As a new member of the National Endowment for Democracy's board, I think we should take all threats to new democracies very seriously and lay out a clear policy for the United States to follow. We should support the democratic Prime Minister of Thailand. And if military forces succeed, it should be the policy of our State Department to terminate all U.S. assistance to Thailand.

It should be the policy of our Treasury Department to undermine the Bot, the Thai currency; it should be the policy of the Department of Defense to cease all military contact with the Thai military; and it should be the policy of our government in general to undermine military rulers in Thailand and return a democratically elected Prime Minister to office.

Following the military coup, the United States suspended $24 million in bilateral assistance to the Thai government.

Under Section 508 of the Foreign Operations Appropriations Act, when a country undergoes a military coup, the United States is restricted from providing aid such as foreign military financing, International Military Education and Training grants, peacekeeping operations, and military aid.

Nearly 10 months after the military coup, despite promises by the military leaders to the contrary, the military-installed government of Thailand continues to move in the wrong direction.

Since seizing power, Thai military leaders gave themselves a $9 million pay raise, increased the military budget by over $1 billion, and cut health care spending by at least $12 million.

Human Rights

On January 29, 2007, the United Nations High Commissioner for Refugees blasted Thailand’s decision to deport 16 Lao Hmong to the Lao People’s Democratic Republic without screening them to see if they needed international protection

“We cannot keep silent where we witness persons, among whom may be asylum seekers, being forcibly returned without having their cases formally assessed. This is not in line with international standards,” said a UNHCR spokesperson.

On March 20, 2007, Human Rights Watch reported that the Thai army and police were "disappearing" ethnic Malay Muslims in the far south.

“The Thai security forces are using ‘disappearances’ as a way to weaken the militants and instill fear in the Malay Muslim community,” said Brad Adams, Asia director at Human Rights Watch. “These ‘disappearances’ appear to be a matter of policy, not simply the work of rogue elements in the security services.”

Censorship

On September 21, 2006, AFP reported that the Thai Administrative Reform Council ordered media executives to army headquarters to tell them to stop carrying expressions of public opinion following the military takeover.

The move came one day after the military imposed strict controls on the media and said they would block "disinformation" deemed harmful to the provisional military council.

"The council asks for cooperation from all types of media and media operators, as well as reporters, to report their stories accurately and constructively in order to swiftly restore normalcy to the country," the official announcement said.

On April 4, 2007, Sitthichai Pookaiyaudom, the telecommunications minister in Thailand's military-appointed government, blocked access to YouTube, the popular video-sharing Web site. "YouTube is not a very essential Web site, is it?" he quipped to the International Herald Tribune.

On May 27, 2007, “The Nation” reported that the Thai Information and Communications Technology Ministry has shut down as many as 17 websites for their support of ousted Prime Minister Thaksin Shinawatra

On June 28, 2007, the Thai Criminal Court filed a complaint with police against a website criticizing the Court’s verdict in a defamation case against Maj. Gen. Khattiya Sawasdipol.

IPR Infringement

The 2007 Special 301 Report from the United States Trade Representative elevated Thailand to the Priority Watch List for intellectual property rights.

Thailand will be elevated to the Priority Watch List in 2007, reflecting a concern that the past year has been characterized by an overall deterioration in the protection and enforcement of IPR in Thailand…

... in late 2006 and early 2007, there were further indications of a weakening of respect for patents, as the Thai Government announced decisions to issue compulsory licenses for several patented pharmaceutical products.

While the United States acknowledges a country’s ability to issue such licenses in accordance with WTO rules, the lack of transparency and due process exhibited in Thailand represents a serious concern. These actions have compounded previously expressed concerns such as delay in the granting of patents and weak protection against unfair commercial use for data generated to obtain marketing approval.

Thailand's military dictatorship is breaking patents on HIV and heart disease drugs. The move to seize American patents will save the government an estimated $24 million—incredibly, the same amount as the bilateral assistance suspended under Section 508 of the Foreign Operations Appropriations Act.

The military installed government seized IPR from Sanofi-Aventis, the maker of a heart disease drug called Plavix, and Abbott Laboratories, the maker of an HIV treatment called Kaletra.

Under World Trade Organization rules, countries can issue compulsory licenses for certain drugs in cases of “national emergency.” But under Article 31, Section B of the 1994 TRIPS Agreement, “such use may only be permitted if, prior to such use, the proposed user has made effort to obtain authorization from the right holder on reasonable commercial terms and that such efforts have not been successful within a reasonable period of time.”

As the Wall Street Journal wrote on February 10, 2007, “Thailand did not bother to consult prior to issuing the compulsory licenses, and the drug companies woke up to read about it in the papers.”

Furthermore, in its “White Paper” entitled “Fact and Evidences on the 10 Burning Issues Related to the Government Use of Patents on Three Patented Essential Drugs,” the Thai military government states: “…there is no need for prior negotiation with the patent holders before announcing and implementing the Government Use of Patent…”

Thailand’s effort to seize American patents stands in contradiction to established international principles. Perhaps the military government’s true intent was revealed on January 27, 2007, Thailand’s Public Health Minister Mongkol Na Songkhla. “We are willing to negotiate with the companies if they are willing to give some discount for the import of their originals.” Using American patents as blackmail should not be tolerated.

As Roger Bate of the American Enterprise Institute put it, Thailand “is exhibiting all the unsavory characteristics of a military regime--censorship, brutality, and infringement of property rights.”

Restoring Democracy

Last month, the Thai military government’s Constitution Drafting Assembly approved a final draft of a new constitution, paving the way for an August 19^th constitutional referendum and possible general elections in December. Unfortunately, we may not see democracy restored for a long time.

The new constitution is part of an effort by the ruling Council for National Security to decrease populist influence by reducing the impact of elections. Under the proposal, the Thai House of Representatives would be reduced from 500 seats to 400 seats, 320 of which will be directly elected and 80 appointed from the party list. A multi-seat constituency system will also replace single-member districts. The draft constitution eliminates direct elections for members of the Senate, who would instead be appointed by national and provisional committees composed of bureaucrats and judicial officials.

According to the Bangkok Post on July 2, 2007, Interim Prime Minister Surayud Chulanont ordered government officials to promote support for the draft, and the military-controlled parliament is expected to pass a bill later this month to penalize obstruction or opposition to the referendum. The draft constitution faces heavy opposition from Buddhist activist groups, democracy activists and supporters for the deposed democratic government.

Military-appointed Defense Minister Boonrawd said he wants people to accept the constitution draft in order to move forward to the general election. “The constitution can be amended later, after the election,” he added.

If voters reject the draft constitution, the military and government have 30 days to pick one of the nation's past 17 constitutions to stand in, according to a clause in the interim charter promulgated after the Sept 19 coup.

This is hardly a process moving in a democratic direction.

Keeping Democracy at the Forefront

At this critical juncture in Thai history, lifting the sanctions against Thailand under Section 508 of the Foreign Operations Appropriations Act would send a clear message to the Thai military government: We endorse human rights abuses, we endorse media censorship, we endorse the theft of American intellectual property and we endorse the overthrow of freely elected democratic governments.

The military-installed government of Thailand can offer excuses and explanations. Its Embassy in Washington can publish colorful booklets and distribute optimistic talking points to members of Congress. But one fact remains—the government is illegitimate, having overthrown a freely elected democracy.

Rather than debating the application of 508 sanctions, we should be having a discussion on Thailand’s continued designation as a major non-NATO ally of the United States—a status that gives Thailand a range of benefits, including preferred American lending, participation in military exercises and preferential bidding on Department of Defense contracts.

A military dictatorship that deposes an elected government, seizes American intellectual property, censors national media and expands brutality should not be considered a major non-NATO ally.

I recently introduced H.R. 2382, the Thailand Democracy Act of 2007, to push Thailand’s military government to hold democratic elections. Under this legislation, the President is required to terminate Thailand’s status as a major non-NATO ally until he can certify to the Congress that democracy has been restored to the Thai people.

I would urge the Subcommittee to examine Thailand’s status as a major non-NATO ally instead as soon as possible.

Mr. Chairman, thank you again for granting me this opportunity to testify on an issue that impacts the lives of millions of innocent, democratic people in Thailand.