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Viewing cable 07BANGKOK2282, HEALTH MINISTER POSTPONES U.S. TRIP, DEFENDS CL'S

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Reference ID Created Released Classification Origin
07BANGKOK2282 2007-04-23 23:30 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bangkok
VZCZCXRO4321
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #2282/01 1132330
ZNR UUUUU ZZH
R 232330Z APR 07
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 6413
RUCNASE/ASEAN MEMBER COLLECTIVE
RUCPDOC/USDOC WASHINGTON DC
RUEAUSA/DEPT OF HHS WASHINGTON DC
UNCLAS SECTION 01 OF 02 BANGKOK 002282 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
STATE PASS USTR FOR B. WEISEL, C. WILSON 
STATE PASS USPTO 
HHS/OHGA FOR AMAR BHAT 
USDOC FOR JKELLY 
 
E.O. 12958:N/A 
TAGS: ECON ETRD KIPR TBIO TH
SUBJECT:  HEALTH MINISTER POSTPONES U.S. TRIP, DEFENDS CL'S 
 
1.  Summary:  Thailand's Minister of Public Health postponed his 
planned trip to the U.S. this week, citing medical reasons. 
Although he will no longer have the opportunity to explain his 
Ministry's actions on compulsory licenses before the USG Special 301 
decision is issued, he remains enthusiastic about defending his 
policies in Washington.  In a meeting with the Ambassador, the 
Minister stepped back from his previous confrontational approach 
with the pharmaceutical industry, insisting that compulsory licenses 
had not technically been implemented and that his Ministry was 
willing to continue negotiations with individual companies.  End 
Summary. 
 
2.  In a meeting scheduled to discuss the Minister's anticipated 
trip to the U.S., Minister of Public Health Mongkol na Songkhla 
informed Ambassador that he was forced to postpone the visit due to 
medical reasons.  Mongkol explained that the previous Friday he had 
been diagnosed with a blocked artery and doctors had advised him 
against air travel.  He suggested postponing the trip to May 21-22. 
The new dates would leave the Minister unable to explain his policy 
on issuing compulsory licenses (CL) on pharmaceutical products 
before the USG issues a determination of Thailand's protection of 
intellectual property rights as part of the annual Special 301 
process, the ostensible reason behind the visit.  Nevertheless, the 
Minister remained interested in visiting the U.S. to explain and 
defend the Ministry's decisions. 
 
3.  The Ambassador recommended a later meeting to discuss a 
rescheduled visit, but took the opportunity to press the USG 
position on CLs.  The Ambassador explained that the USG did not 
contest the RTG's right to issue a compulsory license in a manner 
consistent with WTO rules, but advised consultation with companies 
to the extent possible prior to issuing any future CLs.  He 
continued that investors were changing their perception of the 
investment climate in Thailand; the RTG had recently undertaken 
controversial decisions such as changes to the Foreign Business Act 
and the CLs, and with limited information investors were concluding 
that Thailand was becoming less friendly to foreign institutions. 
The Ambassador stressed that an appropriate balance needed to be 
struck between providing pharmaceutical companies a return on their 
investment to encourage continued innovation, and the need to 
provide access to essential drugs.  Mongkol said his Ministry had 
laid out the facts on the issue in an 80-page white paper and was 
confident that anyone with a clear understanding of the facts would 
support the Ministry's actions. 
 
4.  The Ambassador referred to an earlier conversation with PM 
Surayud wherein the Prime Minister pledged that there would be no 
future compulsory licenses.  Dr. Suwit Wibulpolprasert, health 
advisor to the Minister, said that there had been a misunderstanding 
regarding the Ministry's actions.  Suwit claimed the Ministry had 
only announced the intention to issue a compulsory license, and 
should not be confused with the actual implementation of the 
license.  The Ministry had deliberately left time for negotiation 
with companies before bringing in generic versions of the drugs in 
question.  Although limited stocks of the antiretroviral efavirenz 
had forced the Ministry to move quickly on a compulsory license for 
that drug (and Suwit conceded that license was a done deal), they 
had ample stocks of the other two targets of compulsory licenses and 
were willing to continue negotiations before actually implementing 
the licenses.  (Note:  Suwit's claims do not jibe with earlier RTG 
statements on CLs.  Others involved in the decision insisted at the 
time that they had issued the licenses and did not foresee further 
negotiations.) 
 
5.  In a brief press interview after the meeting, Mongkol responded 
to a question on the USG's Special 301 review and said that he was 
not concerned about an adverse decision for Thailand.  He considered 
the U.S. a nation of laws and since the RTG had closely followed the 
law on issuing the CLs it should not affect the review.  The 
Ambassador told the press that the Special 301 review was 
continuing, and while the USG would consider the compulsory license 
issue, the decision would not be made on that issue alone.  He 
continued that the USG position was to encourage negotiations with 
companies to strike a balance between encouraging innovation and 
providing access to essential medicines. 
 
Rescheduling the trip 
--------------------- 
 
6.  The Minister suggested that his trip to the U.S. be rescheduled 
for May 21-22.  He explained that he planned to travel to Geneva for 
WHO Assembly meetings from May 14-18 and would like to continue on 
to Washington for meetings the following week.  He hoped to be able 
to meet with HHS Secretary Leavitt during the Geneva meetings if the 
 
BANGKOK 00002282  002 OF 002 
 
 
Secretary plans to attend. 
 
SIPDIS 
 
7.  In an aside after the meeting, Dr. Suwit relayed that Abbott had 
proposed a new price for their antiretroviral Kaletra of USD 1000 
per year, approximately half the previous price offered in Thailand. 
 However, an Indian generic manufacturer had already countered the 
offer and had proposed a price of USD 850, undercutting Abbott's new 
offer. 
 
8.  Comment:  Minister Mongkol seemed to be stepping back from his 
earlier confrontational approach, taking pains to clarify that the 
Ministry had not technically issued compulsory licenses and 
negotiations with pharmaceutical companies would continue.  However, 
he has not lost any of his ardor for CLs.  He continued to defend 
the Ministry's decisions and believed that an honest examination of 
the facts of the case will persuade USG policymakers of the 
correctness of his acts.  End Comment.