IV.  POLITICAL ENVIRONMENT

Political System

     Thailand is a constitutional monarchy with a Westminister-
style parliament. Elections must be held every four years, but
may be called more frequently. The prime minister must be an
elected member of parliament. Ten political parties are
represented in Parliament; another 18 are registered. Political
parties are usually not ideologically oriented. In nearly every
case, they are formed around a key figure, usually the party
leader. Thailand's political orientation is moderate to
conservative, and all political parties support a free market
system.

     At present, Thailand's government is ruled by a five-party
coalition led by Prime Minister Chuan Leekpai. In May 1992, pro-
democracy political parties and non-governmental organizations
initiated peaceful demonstrations that turned violent when the
military suppressed them. After six months of political
uncertainty, free and fair elections took place in September
1992. PM Chuan formed a coalition which was reshuffled in
September 1993 when a new partner replaced one of the original
five parties. The ruling coalition has succeeded in restoring
domestic and foreign economic  confidence in Thailand through its
pro-democracy and pro-market stance.


Major Political Issues

     The Chuan government has devoted much effort to nurturing
democratic institutions, including working with the military,
long a force in Thai politics, to identify an appropriate role in
the post-Cold War world. Policy priorities of the Chuan
government include meeting basic needs and development of rural
areas. Although criticized for the slowness of its
decisionmaking, the present government is generally regarded as
honest and, with key economic ministers recruited from the
private sector, friendly to business.

     The U.S. government has sought improvements in Thai policies
for the protection of intellectual property rights, particularly
copyright protection of computer software, enforcement generally,
and bringing effective property protection up to international
levels. A law increasing copyright protection has been introduced
into Parliament and is expected to pass this year. Enforcement of
existing laws and regulations has improved. Progress on IPR
issues was sufficient for Thailand to be removed from USTR's
priority foreign country (PFC) list. However, this issue is
likely to be an area of continued discussion between the Thai
government and the United States. The U.S. also has sought
improvements in Thailand's protection of internationally
recognized worker rights. Other key concerns include child labor
abuse, workplace safety, and restrictions on public sector
employees' freedom of association and collective bargaining
rights.


Nature of Bilateral Relationship

     U.S.-Thai relations are excellent. Thailand is one of five
U.S. treaty allies in Asia. The U.S.' strong support for
democracy, especially after the May 1992 demonstrations, has been
well-received. Trade issues, ranging from protection of
copyrights to worker rights, dominate the bilateral agenda.