Government Policy

Unofficial Translation

Policy Statement of
The Council of Ministers
of Prime Minister M.R. Kukrit Pramoja
Delivered to Parliament
on Wednesday, 19 March 1975

Policy Announcement*

Mr. President,
Distinguished Members,

Persuant to His Majesty the King's gracious appointment of myself as Prime Minister, per Royal Command dated 14 March 1975, and the subsequent appointment of the Council of Ministers, per Royal Command dated 17 March 1975. At the moment, the Council of Ministers has formulated the formal policies, as for the state administration, upon the current situation. The government would like, then, to inform the Parliament that we, Coalition Government, are aware of and shall boast the national stability and preserve the democratic system.

Therefore, please be informed that the Coalition Government has been called upon to attempt to resolve the national problems, by political strategy. The government is not composed of one party, hence, shall not work for any individual or any party, but for all. The main idea is the policy and practice, which we shall declare to the House for the approval within today.

This Coalition Government is fully aware of the current situation, which we are all facing. Thailand is living the stress, is encountering the separatism, is experimenting the "They" instead of the "We". Nowadays, we have heard of the diffentiation and the fight between the social classes and are expecting the social clashes, more than ever. These appeals are not senseless. We have to admit that there exist the social injustice, which is a result of the previous administrative malfunctions, which we shall suppress. The government shall make it disappear at once, for not to be a long-term problem. The government shall also carefully consider if our nation really needs the violence and persecution, as some groups provide the information. "Why don't we avoid all injustice with peace?", which is the traditional character of the Thai people, who are peaceful and united, as for the whole union of the nation. Finally, the government believes the successful economic advancement and social justice need not overthrow or eliminate the social classes.

Economic Goal

The government believes strongly that the people do not exist to serve the government, but vice versa, hence, shall establish the ecomomic policy, as first priority, because the standard of living of the people must be in the most concern.

In brief, the economic policy is composed of the 3 main parts, which are:

1.	Suppress and eradicate the poverty, by encouraging the mature citizen to work and earn, at least, a thousand Baht of monthly revenue.
2.	Increase the employment for all Thai citizen within 4 years.
3.	Resist the inflation situation.

1. Suppress the Poverty
The poverty suppression is a long-term project. Indeed, the objective of the economic development is to suppress the poverty, or, in case the poverty is eliminated, to raise the standard of living and social justice. As for the current national situation, the poverty shall be surely eliminated if the mature citizen work and earn, at least, a thousand Baht of monthly revenue. As to acheive this goal, the government shall follow these steps:
Operational Plans for Rural Missions
a. Urgent Project

Most of our agriculturists are suffering from the distress of insufficient productivities, as from drought, flood, disastrous insect, and huge amount of debt. The government shall, then, provide the immediate financial assistance to poor agriculturists, by subsidizing the municipal council to hire the local labour, as for canals, water channels, and reservoirs, as such. In addition, the government decides to provide the special assistance to the area, affected by the natural disaster, i.e., Northeast, South, and Central Plain, with at least 2.5 billion bahts of the special budget, through the Emergency Fund. The action must be prior to the cultivation season, when the agriculturist are free from the routine jobs. This fund shall be cut from the non-emergency or unnecessary expense from the budget of the year 1975.

b. Future Project

Within the first 6 months, the government shall draft the new National Economic Development Plans, which shall consider the need of the people in all districts, as the first priority. Besides, the government shall acknowledge the districts, when the local administration use the budget, as for the objectives described in a., as to create the great expectation of the national employment and standard of living.

The government believes strongly that the local strategy can suppress the poverty, crimes, and delinquences. When the plan is, henceforth, set, each community shall be granted the budget, as seen appropriate for the local employment. Furthermore, the local strategy must be ruled, in accordance with the national plans, e.g., irrigation, and water shipment.

c. Relocate the Financial Fund to the Agriculture

During the cultivation period of the years 1975/1976, the government shall relocate the financial fund, from all kinds of financial institutions, especially commercial banks, to the agricultural sector, as to stimulate the manufacturing productivity, at the amount of 4 billion bahts, and continuously increase, as to meet the manufacturing requirements, with the objective to reduce the private financial loan, the interest of which is far more expensive, through the financial institutions.

Furthermore, as to prevent the private capital to be used freely in the extravagent or disadvantageous ways, which shall affect the economic system, without control, the government shall ask for the cooperation from the financial institutions and millionaires, and use the existing and new measures, as to suspend the non-profit spending of the precious fund. These measures shall also suspend the investment on the city luxury, and divert the investment to the provinces.

d. Control the Price of Agricultural Products

As to increase the confidence of the agriculturist, on the minimal revenue from the harvest in the years 1975/1976, the government shall set the floor price for the rice, corn, sugar cane, tapioca, soy bean, jute and other economic plants, and reduce the agricultural drawbacks, as for the fluctuation of the world markets. As for rubber, the government shall consider the special assistance, in the production and marketing, as for the social justice.

e. Support the Fishery and Pasture

The government believes strongly that all types of the main careers must be encouraged and supported, in terms of the production and marketing, especially the fishery and pasture, which are the main sources of revenue, involved with many of the citizens. In addition, the government shall diminish all burdens, which can, in any way, reduce the nation revenue.

Operation Plans for Urban Missions
In order to suppress the poverty in the urban areas or major cities, the government shall follow these steps:

a.	The government shall provide 20,000 decent accommodation units annually for the low-income and homeless, which shall, in turn, create the national employment.
b.	The government shall guarantee 1,000 Baht minimum salary for all mature workforce, with the promise of 6 months from now, as follows:

(1)	Free transportation in all bus lines. In this respect, the government shall remedy the bus line concession and rule the concessionaire to provide the special and free transportation to students, descendents of the low-income, as stated before.
(2)	Free education, textbooks, and other educational fees, as for the compulsory education, to all children.
(3)	Free health care system.

2. Generate the Employment for all Thai Citizens
The government agrees that the premise of revenue shall be met only when the people get a job, which shall lead to the high purchasing power and, in turn, to the investment of all types of business and national employment. Therefore, the government has formulated the policy, as to create the suficient work positions, for all Thai citizens, which shall complete within 5 years. The steps are as follows:

a.	The government shall establish the Export Promotion Department, as to co-ordinate in all aspects of the export procedures, clear all competitive burdens and disadvantages in the world markets, expand the export opportunity to the foreign markets, which shall increase the work positions. In the first hand, the Prime Minister, chairman of the said agency, shall be responsible for the economic coordination and, as a result, the flow of investment, as from the local and foreign sources, as to meet the job requirements, which have continuously increased every year. The Export Promotion Department shall be set up within 1 month, after the date of approval. Furthermore, another objective of the said agency is to reduce the balance deficit.
b.	The government shall generate 100,000 direct and 250,000 indirect work positions, by financing 20,000 accommodation units.
c.	The government shall seriously promote the tourism industry, by upgrading and enhancing the role and responsibility of the Tourism Authourity of Thailand, similar to that of the ministry, and emphasizing on the local employment.
d.	The government shall upgrade the service and revive the provincial tourist attractions. The objective is not only to increase the work positions, but also to draw the foreign currency, as for the equilibium of the account balance. Also, the government shall encourage the provincial investment, by exempting the tax collection for the specific business, set up and operating in the provinces.
e.	The government shall facilitate the investment procedures, which shall increase more work positions, and authorize the Bank of Thailand to implement the efficient measures, as to increase the money volume in the markets, reduce the interest rate, support the foreign investment, especially in employment-oriented business. However, the government shall formulate the efficient measures, as to preserve the national benefits and persuade the investors. Beside, the government shall implement the condition on the pollution control, as for the natural resources and environment.

3. Suppress the Inflation
The government does not aspire to eliminate the inflation from our country, as of the fact the inflation cannot yet be suppressed, but mitigated or, at least, slowed down. However, the fiscal policy is necessary, as to mitigate the severe inflation and provide the assistance to the low-income, who are suffering from the inflation. The government shall proceed when necessary.
Furthermore, the monopoly, state and private, in the trade and manufacturing systems is one of the main reasons that increase the cost of living, hence, the government shall set up a department, responsible for the consideration and investigation of the monopolistic businesses, under the Office of the Prime Minister, with the Prime Minister in full charge, and command the reform, in order to discard the public oppression immediately.

Social Goal

The goals are as follows:

1.	Narrow the social gap between the rich and the poor and manage the social welfare.
2.	Provide the fair educational system.
3.	Reform the values of the Thai society.
4.	Facilitate the social order

1. Narrow the Social Gap between the Rich and the Poor
The government shall narrow the social gap between the rich and the poor, by reforming the direct taxation system, which shall become the main revenue of the government and, in the meantime, abating the indirect taxation system, as for the objective of, at least, 10 percent annual increment and control the direct tax collection system. In order to accomplish the objective, the government shall not only utilize the computer, as for the collection, but also the absolute penalty.
The government can promise the non-increment on the revenue tax in the first 2 years of the administration, and abate the tax burdens to low-income, by providing the special further tax reduction.
Moreover, the government shall mitigate the distress of the civil servants, military, police, and low-level staff, by providing the accommodation units.
The government shall establish the Labor Welfare fund, derived from both the employers and employees, at reasonal rate. This fund shall pay the providence to the unemployed, dead, or affected, as for the indispensable activity, i.e., accommodation loan.
When people have secured the job, the pay must be on the higher rate and the salary must also be upgraded.
When the rural developments, as stated before, are tangible, the raise in the standard of living is guaranteed.
2. Provide the Fair Educational Opportunity
The establishment of the fairer educational opportunity is based upon the educational equality, mainly on the personal aptitude. The government has formulated the operational plans, as follows:

(1)	Extend the national compulsory education network, within 4 years, and provide the free education of the same quality in all provinces.
(2)	Implement the efficient measures, as to guarantee the educational equality for the non-formal study and further the study, in accordance with the public requirements. The high schools and universities shall be adequately established and scholarships provided for the poor students.
(3)	Provide the educational oppotunity to the provinces, with the focus on the vocational education, as for the professional sake after the graduation.
(4)	Reduce the academic administration redundancy, through the educational decentralization to the provinces, responsible for the local curriculum and study, in accordance with the local economicl and social needs.
(5)	Encourage the non-formal education, in form of the adult study, with the focus on the productivity, distribution, and management of the plantation and cooperative, as well as, marketing.
(6)	Implement the tele-education, broadcast 2 hours a day, 6 days a week, with the focus on the agriculture and professions, as well as, the ethics and general knowledge, in accordance with the idea of the national "Open University".

3. Reform the Values of the Thai Society
Some of the social values, retarding the progress of the national development, are set for the change, following these steps:

(1)	Encourage the national awareness, through the mass media, that all rights and authorities come from the people, and not others.
(2)	Denounce the intransparency and corruption.
(3)	Cherish the religious institutions and reduce the superstitutions and animism.
(4)	Reduce the luxurious activities and institute the national savings.

4. Preserve the Social Order
The government believes strongly that the peaceful administration is the result of the discipline, efficient laws, legal enforcement, and social justice. Therefore, the government shall establish the social order, for the people to get a tranquil and calm society, both to work and live, use the absolute legal measures, as to suppress the crimes and delinquences, and respect legal solemnity. In order to retain the social order, the justice system needs the effective procedure, which the government shall set an urgent objective, as of the adequate police force. Meanwhile, the government shall establish the local justice courts, as soon as possible. Furthermore, as for the tranquil society, the government has to use an absolute force in some ways. Kindly understand that the government does it for the whole society, and not for any beneficial groups.

Administrative Goal

The government considers the revision of the public standard of living in the provinces, as the urgent mission, which cannot be accomplished without the resolved or reformed administration in all levels. Therefore, the government shall proceed this urgent mission, along with other problem resolutions, as to resolve and reform the local administration. The main administrative policy is for the better economic system and standard of living, in no time, hence, the administrative reform is indispensable, The government shall set 2 basics procedures for the reform:

1.	Decentralize the administrative power to the provinces.
2.	Support the local administration and municipal council.

1.	The government considers that the previous governments had opted for the centralized administration, an obstacle for the local development and local people. As to provide the optimal benefits to the nation, the government shall:

The government shall decentralize the administrative power, as of the operational plan and policy, to the provinces, and authorize the governors of the responsibility, as to keep all works done, according to the said plan and policy. In addition, the government shall consider to reform the laws, rules, and regulations, including the commands, that could become a problem in the decentralization process, within 6 months.

The government shall relocate the administrative power to the people, revise the Local Development Act, along with the Constitution, as for the free local administration, and encourage the real democracy.

The government considers that 85 percent of the population live in provinces and earn the living from the agricultural sector, normally a very small amount of revenue. In order to level up the standard of living and income, the government shall have the perfect measures to operate, which we believe that the National Economic and Social Development Plans shall lead us to the goal, by caring on the local plan by a local, in other word, the plan shall start from the sub-districts, to districts and provinces, then, merge together to form the National Economic and Social Development Plans, not the current centralized set plan. In this respect, the government shall establish the policy, which supports the municipal council administrative power, as an urgent matter.The government shall let the municipal council to play a key role, provided the authorization and responsibility, as for the greater democratic system and economic prosperity.

a.	The government shall improve the municipal development plan, both short and long-term, with the efficient budget and follow-up systems.
b.	The government shall reform the land taxation and local taxation systems.
c.	The government shall better the public health care system and local health centers.
d.	The government shall control, survey, and mark the land, as for the documentation process for the agricultural land, which must be done within 4 years. When the document registry on land is released, the municipal council shall be immediately assigned to perform the land reform, according to the central policy.
e.	The government shall restore the municipal stability and security.

The government shall consider that the municipal council is the sector, closest to the problem, hence, truly understand the need of the people and resolution to local problems. The government believes that the authorization, given to the municipal council is a start. All the government has to do is to provide the sufficient budget of municipal councils, as seen appropriate and necessary, which shall be used to implement the resolution to the key problem, i.e., cost of living. The budget was granted away for the local employment, higher revenue, and labor reflux.

Defensive Goal

The government considers the national independence and sovereignty, as first priorities, safe from the invasion, hence, shall follow these steps:

1.	The government shall maintain the royal armed force adequately, as to enhance the efficiency in the force and equipment, ready to preserve the national independence and sovereignty, on land with our legs, and nationalize the royal army.
2.	The government shall improve the military morale, will, and welfare, provide the lavy force with the vocational study, as for the living after the discharge.
3.	The government shall establish the good understanding between the army, civil servants, and people, as for the true national unity. In the meantime, the government shall encourage the army participation in the national developments, as appropriate, as to enhance the national attitude. In addition, the government shall encourage the public participation in the country protection, as voluntary force.

Foreign Goal

The foreign policy is for the national benefits, and the steps are as follows:

The government shall run the foreign affairs freely, in order to achieve the national independence, sovereignty, liberty, benefit, security and honour.

The government shall establish the close diplomatic and economic ties with friendly nations, regardless of ideological, economic, social differences, and administrative system, upon the justice, equality, and non-interference in internal affairs, as for the balanced relations with the superpowers. In addition, the government shall affirm the diplomatic relations with the People's Republic of China, and expatriate the foreign troops from the kingdom, within 1 year, in accordance with the current situation.

The government shall intend to tighten the relations with neighbor nations and support the cooperations with all ASEAN member countries, in all activity. The government shall not stop the attempt, as to establish the relationship with the People's Republic of North Vietnam. As for foreign aids, the government shall consider upon the condition and accept no disadvantage, because the government desires to create the economic and military self-dependence.

Mr. President,
Distinguished Members,

With respect, I have declared all government policies. Should you have any question in whatsoever topic, please do not hesitate to inquire, and the government shall explain in details. In addition, I do feel that some of you are most interested in the Communist Activity Prevention Act, which you might want to know our attitude on th act, hence, I would like to inform, with respect, to Mr. President that the government shall not oppose, if the distinguished members do not grant an approval on this Act, or do not need the concept. The government shall be willing to propose for the cancellation of this Act.

Thank you.

*Parliament Assembly Report of 4/1975, 19 March 1975, Pages 237-250

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