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Thai jet impounded in Germany

Alfie · 34 · 977

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Offline Alfie

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I came across a couple of articles about this topic. Interesting writing that might fill in a few blanks for us. I will just post a small part of each article as they are quite long and quite detailed. Click the links to read more. The first one it titled: A Possible Solution to the Arbitration Row with Walter Bau?



A Possible Solution to the Arbitration Row with Walter Bau?

But there is a solution: why doesn’t the Thai government simply propose – unilaterally, on its own – to put up a bond for the full award amount plus a bit on top to cover costs to the U.S. court in return for a stay on all efforts to enforce the award, including the seizure of the jet in Munich?  In other words, the jet is released and no other assets of anyone are seized to enforce this arbitration award.

This is what large companies do to avoid a prevailing claimant from interfering in their operations while an appeal is pending on what they firmly believe to be an unjustified award or judgment.  If they can’t get the judgment stayed – and its very hard to stay a judgment on an arbitration award – they bond around it to avoid unexpected levies that will interfere with business operations and tarnish their reputation.  No matter how strongly a company may disagree with an award or judgment, this simply makes good business sense.

The current prime minister says he is confident Thailand will win on appeal.  Thailand certainly has enough money to bond around this award.  Why don’t they do so?  They don’t stand much to lose if, as Khun Abbhisit says, they expect to win on appeal.

If the Thai government wins, they get the money back. If not, Walter Bau gets paid.  While the bond is in place, Walter Bau would agree to be stayed from seizing any other assets from the Thai government or anyone else to enforce the award.  No one is harassed with surprise levies by Walter Bau and the Thai government can go about its business without worrying about getting blind-sided with a boat, plane or bank account getting seized in some foreign jurisdiction.


http://thailawandpolicy.wordpress.com/2011/07/23/a-possible-solution-to-the-arbitration-row-with-walter-bau  
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Offline Alfie

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The second article from the same site is called: Is Thailand Really Appealing Walter Bau’s Arbitration Award in a US Court?


Is Thailand Really Appealing Walter Bau’s Arbitration Award in a US Court?

No.  But reading some of the reports in the Thai press you might get that impression.  “once the legal dispute was decided by the [US] court, the Thai government would live up to its responsibility”  “it was inappropriate for the German government to make such a demand when the legal dispute had not yet been settled [on appeal in the US].  “This is being appealed.”  So this appeal challenges the merits of the arbitration award, right?

That’s is not what Thailand’s own appellate brief says.  In fact, it says the exact opposite.  On page six: “The New York Convention affords the district court no power to vacate the Final Award [the arbitration award that is supposedly on appeal], and Thailand did not ask the district court to do so.”

While quotes from Thai politicians in the Thai press seem to suggest otherwise (maybe something got lost in the translation?), Thailand’s own appellate brief get’s it right: Thailand cannot challenge the arbitration award and it is not trying to do so.  U.S. law does not allow it do so and the New York Convention – a treaty that governs the recognition and enforcement of international arbitration awards – also does not permit a U.S. court to overturn the arbitral award in favor of Walter Bau and against the Thai government.  This is about as basic as it gets.

http://thailawandpolicy.wordpress.com/2011/07/30/is-thailand-really-appealing-walter-bau%E2%80%99s-arbitration-award-in-a-us-court
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Offline Alfie

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It has been reported that the Crown Prince will pay a sum of his personal money to Walter Bau to end the dispute. The amount of money was not stated.
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Offline Alfie

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Thai crown prince offers to settle plane dispute


Thailand's crown prince is offering to use his personal assets to settle a dispute with a German company that had a plane he uses impounded as part of a long-running battle with the Thai government.


Thailand's crown prince is offering to use his personal assets to settle a dispute with a German company that had a plane he uses impounded as part of a long-running battle with the Thai government.

A statement issued late Sunday by the crown prince's office said he did not want relations between the two nations to suffer, so "has granted his personal assets to be used in solving the dispute."

German authorities seized the Boeing 737 used by Crown Prince Maha Vajiralongkorn this month as part of an ongoing dispute over payments between German construction company Walter Bau AG and the Thai government. The company says the plane belongs to the government. Thailand says it is the property of Crown Prince Maha Vajiralongkorn.


http://seattletimes.nwsource.com/html/nationworld/2015787624_apasthailandgermanyroyalplane.html
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Offline Newshound

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Thai govt to pay on impounded jet in Germany : FM


The government will pay a 20-million-euro bond to secure the release of a royal jet that was impounded at a German airport last month, Foreign Minister Kasit Piromya said Tuesday. "The government will pay the 20-million-euro bond itself, to make clear that the crown prince has no involvement in the case which is between the government and a private company," Foreign Minister Kasit Piromya said.

The Thai government previously argued that creditors had no right to seize the plane because it belonged to the prince, rather than to the government.

Crown Prince Vajiralongkorn had announced plans on Monday to use his personal funds to pay the bond for his personal Boeing 737 that was impounded at Munich airport on July 11 as part of a compensation conflict between Thailand and a German construction company.

Although the payment of the bond will end court procedures in Landshut, the Thai government will continue to fight the case in Berlin, where Werner Schneider has asked a court to enforce the arbitration ruling, Kasit said.


Read more: =http://www.nationmultimedia.com/2011/08/02/national/Thai-govt-to-pay-on-impounded-jet-in-Germany-FM-30161758.html


Offline Newshound

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Government will not pay the surety for the release of the jet, says Abhisit

Walter Bau fight still on, says Abhisit

The government has vowed to continue fighting the commercial dispute with Walter Bau AG to save His Royal Highness Crown Prince Maha Vajiralongkorn the trouble of paying the surety for the release of his private jet impounded in Germany. Outgoing Prime Minister Abhisit Vejjajiva made the statement yesterday after an audience with the Crown Prince.

He said the Crown Prince had not yet made any payment to secure the release of his private jet because the government had asked to press ahead with the case. "The government will try to resolve the problem in a manner that will not cause the Crown Prince any trouble," Mr Abhisit said.

He said the government will ensure the dispute does not hurt bilateral ties between the two countries and does not affect the royal institution, according to the wishes of the Crown Prince.

Mr Abhisit said a Thai legal team will travel to Berlin today and will try to ensure the dispute is resolved this month. He stressed that the government will not pay the surety for the release of the jet and at the same time will take steps to prevent any adverse repercussions stemming from the issue.

A highly-placed source at Government House said the government has decided to further pursue the matter because it wanted to save the Crown Prince the trouble of paying for the return of his jet. The Crown Prince has offered to pay from his own pocket to secure the release of his private jet impounded in Germany as a result of a commercial dispute between the Thai government and German contractor Walter Bau.


http://www.bangkokpost.com/news/local/250000/walter-bau-fight-still-on-says-abhisit


Offline Alfie

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Abhisit and Kasit not on the same page? I wish they'd get their act together and consult before making statements on important topics.
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Derek

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Thai Attorney-General leaving for Germany to settle dispute

Outgoing Thai Prime Minister Abhisit Vejjajiva on Tuesday said the government is speeding up its efforts to settle a long-running dispute with German firm Walter Bau AG with the Attorney-General leaving for Berlin on Wednesday, and progress is expected within three days.

Speaking to reporters after chairing a meeting with concerned agencies and officials including Attorney-General Julasing Wasantasing and senior foreign ministry officials, Mr Abhisit said his government wanted the dispute to come to an end quickly.

The outgoing prime minister added that the German firm has periodically sought to make a settlement with the government, but the government stood firm that it would fight the case to the end.

http://www.mcot.net/cfcustom/cache_page/246865.html


Progress in 3 days, quick end to dispute desired, but will fight to the end.

I'm confused.  ???     ???


Offline Alfie

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Progress in 3 days, quick end to dispute desired, but will fight to the end.

I'm confused.  ???     ???



In Thai politics it's all or nothing, winner takes all. Abhisit and his regime want a quick win but will fight forever and ever if they lose any decision.

On the other hand, progress in three days could be a reference to Abisit and his henchmen being out of a job in three days - when the new government takes charge.  ;) Let's hope the Shinawatra government solve the issue quickly.
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Offline Newshound

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Thai government to pay 38 million euros debt


The Thai government has provided a bank guarantee letter to a German court for 38 million euros ($54 million) so a plane impounded in Germany can be released, a foreign ministry official said on Tuesday.

"We put up 38 million euros that the Berlin court requested as a bond in the main case, so they cannot seize the aircraft," Chavanond Intarakomalyasut, secretary to Foreign Minister Kasit Piromya, told Reuters. "We have put up a letter of guarantee in this case," he said, adding that Thai state-run Krung Thai Bank had provided the letter. It was not immediately clear whether the court had accepted the bank guarantee and had released the plane, or if the Thai government had deposited any money or not.

The issue has been highly contentious and outraged Kasit, who said the plane was not the property of the Thai government and should therefore never have been impounded.

The court had requested the deposit because it had not yet determined whether the jet was owned by the prince, or the Thai air force.


Full article: http://www.reuters.com/article/2011/08/09/us-thailand-germany-plane-idUSTRE7783WM20110809



Offline Alfie

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:D  :D  :D  :D  :D  :D

What next?

Let me take a guess:
1. The German court will announce who the owner is which will be at odds with what Abhisit and Kasit have claimed
2. The old Thai government (Abhisit and Kasit) will disagree but then claim that was what they said all along
3. The old government will blame the new government for everything. When that argument is seen to be silly...
4. The old government will then blame Thaksin
'You're only supposed to blow the bloody doors off!'