(AFP) Thailand agreed today to push ahead with a stalled gas pipeline venture, officials said following "warm" talks between Thai Prime Minister Thaksin Shinawatra and his Malaysian counterpart Mahathir Mohamad.
Thaksin, heading a high-powered 71-member delegation, was greeted by a military honour guard when he arrived in Kuala Lumpur to start his first overseas visit since taking office in January.
Asked if his government was still committed to the pipeline, Thaksin said: "Yes, any contract even in the previous government, the following government has to honour (it)."
But he added: "We have to get the understanding of the people residing in that area that the project is not harmful. It takes time. We will try to accommodate them, we'll try our best."
His government was awaiting an environmental assessment, he told a press conference after meeting Mahathir in the administrative capital Putrajaya, south of Kuala Lumpur.
Thaksin said he touched on border issues during talks with Mahathir. Two bombings rocked Thailand's southern provinces near Malaysia this month, killing one child and injuring nearly 50 people.
"The problem we faced is the dual citizenship, those who escape from Thailand and reside in Malaysia. We will cooperate closely. It shouldn't be any problem, we don't have much of the bandits left," he said.
Thai authorities would have to trace the culprits before seeking Malaysia's help, he added.
Joint venture
After talks between the two premiers and delegations from both sides, Malaysian Foreign Minister Syed Hamid Albar said Thailand was committed to the pipeline.
The pipeline will transport gas from the Malaysia-Thailand Joint Development Area along their maritime border. It has been stalled by strong opposition from Thai environmental groups.
Syed Hamid said the Thais had promised to try to resolve the problems within three months.
"Our understanding is that the project will go ahead ... they are not going to stop the project," he told reporters.
The project is a joint venture between Malaysia's state energy firm Petronas and the Petroleum Authority of Thailand.
Syed Hamid said Malaysia wants work to start as soon as possible since costs were accumulating daily and most were borne by Petronas.
Talks, which Syed Hamid described as "very very friendly and warm", also covered a variety of economic issues.
Syed Hamid said Malaysia agreed to lift its ban on Thai beef imports which was imposed following a "mad cow" disease scare.
It would consider a request to raise import of Thai rice after imports fell by 90 percent to about 30,000 tonnes annually.
Deep-sea fishermen from the two countries are encouraged to form joint ventures but catches must be processed in Malaysian ports. Joint ventures in manufacturing rubber by-products would be considered.
Both leaders agreed to intensify trade but Malaysia was cautious on a Thai request to keep several border checkpoints open longer.
'Prohibitive' tariffs
Syed Hamid said Malaysia asked its neighbour to cut "prohibitive" tariffs on Malaysian palmoil and raise its quota. The Thais said this needed further discussions.
The two sides agreed to ease transit rules for Thai truckers taking perishables to Singapore and for Malaysian truckers passing through Thailand en route to Indochina.
The foreign minister said the two premiers exchanged views on military-ruled Burma, and Mahathir told Thaksin that Malaysia's "philosophy is to prosper thy neighbour."
They also discussed regional economic issues and proposed global financial reforms.
Thaksin was accompanied by one of his deputy premiers, Pitak Intharavittayanan; Foreign Minister Surakiart Sathirathai; Commerce Minister Adisai Bhotharamik; Finance Minister Somkid Jatusripitak; Interior Minister Purachai Piemsomboon; and Deputy Defence Minister Yuthasak Sasiprapa.
He later visited Putrajaya's sister city of Cyberjaya, the heart of Malaysia's Multimedia Super Corridor - a zone for information technology firms stretching south from Kuala Lumpur to the international airport.
Thaksin leaves for Vietnam on Wednesday morning.
