THE THAI defence ministry plans to shelve its controversial Star of Siam satellite programme, in an effort to counter calls for large cuts to be made in the military's equipment budget.
According to Thai defence minister Chavalit Yongchaiyudh, the 28 billion baht ($1.1 billion) project will be pulled from the military's 1997 budget request. It has been heavily criticised as too expensive.
The proposed Star of Siam programme consists of a constellation of two geostationary communications satellites, each equipped with 24 transponders, with a third in reserve. It also includes provision for a second low-Earth-orbiting imaging system for reconnaissance (Flight International, 8-14 May)
Some local observers suggest that Chavalit still intends to proceed with the satellite programme, but needs time to win political support. The military budget request is under review and will not be approved until late in September.
In April, Thailand's prime minister, Banharn Silpa-archa, called for the military to make cuts to help reduce the country's ballooning current-account deficit. "There is a ground swell of opinion that the military has had more than a fair share of the country's development budget," says a defence source.
Other big-ticket items under the spotlight include the Thai navy's 17 billion baht plan to acquire two submarines and the air force's request for a follow-on purchase of eight McDonnell Douglas F-18C/D fighters. Thailand recently placed a $390 million order for its first eight F-18s and is seeking funding for a second batch in 1997, to fill out its planned squadron.
If the F-18 purchase is dropped from the budget, officials suggest that resources could instead be focused on funding a planned $140 million upgrade of Thailand's Northrop F-5E/Fs. The air force is considering a radar- and structural- improvement programme (Flight International, 3-9 July).
Source: Flight International