Thailand, China are a family, says Wen

Chinese leader Wen Jiabao yesterday praised Thailand for his friendship and promised more cooperation in the development of agriculture, education and infrastructure.

But the outgoing Premier stopped short hard commitments, including a long-awaited deal for China to buy rice from Thailand.

A memorandum of understanding signed yesterday raised the possibility of China buying rice from Thailand, but did not say how much or at what price.

While the Thai Government said separately that 10 Chinese companies contracts for the purchase of 260,000 tonnes of rice for 6.2 billion baht (US $ 603 million) had signed, these deals are not expecting to make a dent in Thailand's stock of $ 14 million tonnes.

The Thai Government is stuck with a surplus of rice as they promised farmers more than 50 percent above the market price for their grain, a move that is meant to increase their income.

Exports of rice have collapsed as Thai companies could not find buyers for the expensive grain. The scheme is also risks making the public debt to balloon to a non-sustainable sum.

Wen of Bangkok visit comes only two days after the high-profile switch from u.s. President Barack Obama, which Thailand the first stop of a three-nation trip designed to refocus American attention to Asia.

The visit-the first foreign travel undertaken by the recently re-elected leader-pointed out the growing rivalry between China and the u.s. for influence on the fast-growing Southeast Asia.

Wen the receipt was noticeably more restrained, though, as Obama, he got an audience with the revered King Bhumibol Adulyadej in Siriraj Hospital where the monarch is like to stay-as well as a meeting with the President of the Privy Council Prem Tinsulanonda.

He also opened a Chinese cultural center in Bangkok.

During a lunch organized by Thai premier Yingluck Shinawatra yesterday, said the Chinese leader in Mandarin: "We are a family. We have deep and close relations. "

Thailand, while she has a long time ally Treaty with the US, significant economic, cultural and military ties with China. Trade with China, at US $ 64.7 billion, surpasses that with the US and is expected to grow.

Thailand, that is not locked in territorial disputes in the South China Sea, is the value of by China for the "Passerelle" role it plays between Asean and Beijing, said Dr. Xu Liping, a scholar of Southeast Asian studies at the Chinese Academy of social sciences. "It is neutral, so tyres for China can overcome."

Meanwhile, China plays an important role in infrastructure projects in the Mekong region.

A Chinese State-run bank recently approved a loan of US $ 7 billion for Laos to build a new railway link to China.

Yesterday, said that the Thai authorities China also had interest in getting involved in a high-speed trains project is planned in Thailand. One of the proposed routes linking Thailand to southern China via Laos.

Although details of the project have yet to be released, the new registration line, if it is built, is expected to be a major boost of Thailand's ageing railway.