Mr. President,

Excellencies,

Distinguished Members and Guests

of the Foreign Correspondents' Club of Thailand,

One measure of a functioning democracy is a free and informed media environment. For the last five years the Thai people suffered from an increasingly deformed media environment. Broadcast media were muzzled, news coverage was state-directed. I believe that is called propaganda. As for the print media, although they were never completely silenced, they were certainly victims of the "carrot and stick" approach to media management. Report positively and you will be rewarded, report negatively and suffer the consequences.

The victim, of course, was the truth, and the people's right to know.

This Club and some of your members were also on the receiving end of that stick. So, the FCCT is an organisation after my own heart and I am very pleased to talk with you this evening. I should also add that I think it is to Thailand's credit that we are host to the largest foreign press club in Southeast Asia and that it is to our great advantage to have so many foreign correspondents based here, acting as the world's informed window into Thailand. We may not always agree with how you report what you see but any disagreement this Interim Government might have will be addressed by transparent, rational debate, not emotion, and certainly not the stick.

This evening I intend to address the four major challenges facing the Interim Government over the next 12 months, namely, successful political reform, the restoration of national unity, addressing income inequality and reestablishing the rule of law.

By any measure this is a daunting agenda, especially considering the limited time available, but we have one advantage, which some of you might contest, and that is we are an appointed government, not an elected one. In my own view, history will judge the validity of the military intervention on 19 September by how successful this Interim Government is in addressing these four major challenges.

But before I address these challenges in more detail, I would like to voice my disagreement with some foreign correspondents' reporting of the military intervention on 19 September.

As you are aware, the Council for Democratic Reform, now the Council for National Security, will shortly be issuing a White Paper, their report to the Thai people explaining why they felt compelled to act as they did. So I do not intend to attempt to justify their actions, rather just to give you my own personal view.

Firstly, what Thailand experienced over the last five years may have had the form of democracy, but certainly not the content. It was the camouflage of electoral politics subverting the true democratic principles of the rule of law, justice for all, honesty and transparency in government, and respect for human rights. This subversion of democratic principles was not the mandate given to the government by the people; rather, it was a mandate unilaterally shaped by a political party that pulled together unprecedented political and financial power, power so great that all the checks and balances so carefully built into the 1997 Constitution were neutralised.

So I regard this one year transition period as a breathing space for Thailand's continuing political democratic development, a time for adjustment, a time for healing disunity and conflict, a time to strengthen the democratic process, and, most importantly, a time to educate and inform the people about the choices we face as a nation, so that they can make these choices from a more informed basis.

Secondly, I wish to tell you that I would not have accepted the heavy burden of becoming Thailand's Prime Minister during this transitionary period unless I was absolutely sure that the motives for the Council for Democratic Reform's military intervention in the governance of this country were entirely honourable and in the public interest, and that their actions were taken only with the greatest reluctance. I am sure.

Thirdly, I think it's fair to add that the majority of Thai citizens are in general agreement with the reasons given for the military intervention, at least as reported by public opinion polls, and that they trust their appointed government and the Council for National Security to honour the timeline commitments that have been made.

So much for my gentle disagreement with those foreign correspondents who I believe have misread the events of the last six weeks.

Turning now to the four major tasks ahead: successful political reform, restoring national unity, reducing income inequality and reestablishing the rule of law. It will be obvious to all of you that these four tasks are all closely interrelated and that they are all structural in nature.

Driven by the expectations of the Thai people, successful political reform is our top priority. By successful political reform I mean that in one year's time we will have a new Constitution, ratified by the people in a national referendum, which will form the basis for a more just, more egalitarian and more democratic society.

To arrive at this goal, in addition to the constitutional drafting process specified in the Interim Constitution, this Government intends to stimulate a broad, inclusive national debate about the choices 64 million Thai citizens face. These are the basic choices every society has to make, choices about what sort of society we wish to live in and what sort of society we wish our children to inherit.

The best choices can only be made by an informed citizenship. This means not only initiating and stimulating this national debate but also supplying the appropriate facts and information to inform this debate. It also means including all voices in this debate.

Toward this goal, the 1997 Constitution, also known as "the people's constitution", whatever its flaws, will prove most instructive.

In addition, we will establish a Political Development Council to stimulate this national debate and accelerate the pace of political reform and utilise our national communications resources for political education.

Let me emphasise at this time that I am not talking about government-directed political reform. This Interim Government does not have the moral authority to impose its ideas concerning political reform on our citizens. It will be their choices, hopefully made from a more informed view point.

The second, closely related major challenge for this Interim Government, is the restoration of national unity. By this I mean a reduction in social and political tensions, the inclusion of all segments of society, especially the poorest and most disadvantaged, both in the political arena and in our drive toward greater national prosperity, a rejection of a growing culture of violence in our society and, perhaps surprisingly, a celebration and tolerance of our diversity as a large nation.

Nowhere is the need for national unity and understanding more critical than in our three southernmost provinces where violent death has become a daily tragedy. Every citizen of Thailand must share the burden of this situation which is why, during my visit there last week to meet with the local people, religious leaders and officials, I started the healing process by expressing an unreserved apology and by admitting that the Government cannot deny its responsibilities for previous state actions.

The following day, the Attorney-General's Office announced that it had agreed to drop all charges against the 92 Tak Bai protestors, to help boost the reconciliation process. Another concrete step already undertaken is the reinstatement of the Southern Border Provinces Administrative Centre to help sensitise local officials and facilitate coordinated responses to local needs.

But apart from these initial actions, based upon the belief that the vast majority of Thai citizens in the three Deep South provinces wish to live in peace and harmony, the Interim Government's approach will be as follows:

-- To establish a constructive dialogue with all concerned parties.

-- To utilise the report of the National Reconciliation Commission as the basic guidelines for our actions.

-- To address the grievances of the people with fairness and justice.

-- To reestablish warm, cordial relations with neighbouring countries which may have some positive influence in this matter.

With regard to this last point, during my recent visit to Malaysia, I explained to Prime Minister Abdullah Badawi our new strategy. He expressed understanding and offered his sincere cooperation. In my recent meetings with the Presidents of Indonesia and the Philippines I also explained our new strategy and discussed how we could usefully learn from each other's experiences in addressing conflict situations.

Please be assured that I am under no illusions as to the difficulty of this particular challenge. Decades of neglect and injustice followed, most recently, by five years of politically motivated, ill-conceived meddling and strong-arm tactics cannot be erased overnight. But I firmly believe that with understanding, compassion and right actions, justice, peace and harmony can be achieved.

The third great challenge this Interim Government faces is to address the issue of income inequality. In spite of 40 years of rapid economic development, which by many measures has been among the fastest in the world, Thailand today still has far too many poor people who have not benefited from this economic development to the extent that they should have.

This great divide between the rich and the poor is also a divide in terms of opportunity. In a fair, just and democratic society each citizen should have equal opportunities for education, health, a productive working life and a graceful retirement. This is not the situation today.

So, in the coming months you can expect this Government to actively pursue a range of pro-poor, anti-poverty policies designed to correct over time this cancerous income inequality. Some policies from the previous government will be continued, if they are proved to be effective, as long as they can be made transparent and sustainable, while other new policies will be introduced.

Finally, the fourth great challenge we face is restoring the rule of law. Over the last five years, there has been a rapid deterioration in the rule of law. Lawlessness protects the corrupt and hurts the poor.

Without the rule of law nothing else matters. Until every citizen stands equal in the eyes of the law, and is treated equally, there can be no real justice for all, no end to the corruption which has become a national disease.

Thus, restoring the rule of law is fundamental to our overall goal of becoming a just, democratic and compassionate society.

To address this most serious of challenges, the Interim Government intends to undertake far-reaching and drastic reforms in the administration of justice, in the police and in the permanent strengthening of our anti-corruption agencies. I understand that between such good intentions and their effective implementation many politicians' promises have been lost. But I am not a politician and I am not bound by special interests. Moreover, I have the authority and the power that comes with being an appointed Prime Minister to act quickly and decisively.

Distinguished Guests and Friends,

I have briefly outlined the four major structural challenges this Interim Government has accepted as its top priorities. Action in each of these areas is long overdue. To make progress toward each of these goals, the Council of Ministers has agreed that everything we do will be guided by four overarching principles, namely, transparency, justice, the economical and sustainable use of resources, and efficiency.

But I can hear you thinking, "What about the ordinary business of government? What about energy policy? What about price controls? What about the Mega Projects?"

So, I would like to take this opportunity to reassure those of you who have any doubts about the orientation of this Administration's economic policy. Thailand is and will continue to be an open market economy.

The Kingdom will continue to enhance trade and investment partnerships as we move and interact with the flow of regional and global economic integration. There is no sense to the interpretation which suggests that Thailand would disengage. Such a policy simply does not serve our interests.

Thus economic growth will be pursued, based on our strong fundamentals. However, our progress will not be measured simply in terms of quantity, but also in terms of quality. The meaning of growth should be broader, embracing not only competitiveness but also sustainable development, social justice and contentment. Growth must come with good governance in relation to how the government operates and how business is conducted. The way rules and regulations governing commercial and investment practices are implemented will be improved through greater transparency, and hence predictability. We will do away with double standards.

I would also like to see greater balance given to the social and ethical side of our economic development. That is why I emphasise the importance of the people's sense of contentment and the application of His Majesty the King's philosophy of "Sufficiency Economy" as underlying the thinking of this administration. "Sufficiency Economy" is not new, and has been implemented in various aspects by previous governments. We will now ensure that it is integrated within the overall framework of policy, with the essential element of balance as it relates to how Thais conduct their daily lives.

So, economically, we will not turn inward. Neither will we do so when it comes to foreign policy. The current domestic imperative will not make us shy away from our commitments as a responsible member of the international community. We have an open economy and society and will maintain our progressive outlook. I therefore hope that our friends will maintain their confidence in us and in the resilience of our country.

We intend to be proactive in bilateral and multilateral frameworks, promoting partnership with neighbouring countries and our friends in the region and beyond. We will work with our colleagues to strengthen ASEAN, as our region is moving towards the establishment of an ASEAN Community, and looking beyond to East Asian integration. This I stressed to my ASEAN colleagues when I attended the ASEAN-China Commemorative Summit last week. We will also continue to play a constructive role in the framework of the United Nations and other multilateral fora, and to contribute to the promotion of shared ideals.

Distinguished Guests,

The average age of the Council of Ministers not withstanding, Thailand's Interim Government is in a hurry. Since the military intervention on 19 September, everything has been done in accordance with the timeline for political transition announced by the Council for Democratic Reform. We have an Interim Constitution, a new Prime Minister, a new Cabinet and a new, 242-member National Legislative Assembly which convened its inaugural session on the 20th of October. Also, last Friday I presented the Government's policy statement.

In the meantime, I have made day trips to six ASEAN neighbours to reassure, and in some cases, restore friendly relations, attended the ASEAN-China Summit and thought deeply about how to launch a reconciliation campaign in the deep South.

I know that there are many good friends of Thailand in the audience this evening and I invite you to work with us as we navigate this difficult transition. I do not expect to be able to complete all the strategic adjustments I have outlined this evening in the time available, but with unprecedented participation from the Thai people I do believe firm foundations will be established upon which we will be able to build a more just, democratic and compassionate society.

Thank you very much for your kind attention.