Thai-German war of words over impounded prince's plane continues

Jul 28, 2011, 14:35 GMT

Bangkok - Thailand's prime minister told a local newspaper Thursday he hopes the German government will reverse its decision to impound the Thai crown prince's plane, tied up in a legal dispute between a bankrupt German company and the Thai government.

Outgoing Prime Minister Abhisit Vejjajiva told the Bangkok Post that the Thai government was being treated unfairly by the Germans and that Thailand would not yield in the case.

Crown Prince Maha Vajiralongkorn's personal jet was impounded at Munich Airport on July 12 as part of an effort by the German firm Walter Bau AG to force the Thai government to compensate it for a contractual dispute dating back two decades.

On Wednesday, a German court ruled that the plane could be released if the Thai government posted a 20-million-euro bond on it.

Thai ire was roused even further when the German embassy this week issued a statement calling on the Thai government to pay compensation to Walter Bau, an unusual step for an embassy.

Abhisit told the Post that Thailand would continue to fight its case in court, with at least three separate cases progressing in various nations in the next months.

German Foreign Ministry sources told the German Press Agency dpa that the ministry is in close contact with its Thai counterparts on the matter and that the German stance remains unchanged.

A German representative has extended apologies for the inconvenience to the prince, but also noted the independence of German courts.

Thailand's crown prince has backed the government's stance to not pay a 20-million-euro (28.7-million-dollar) bond to secure the release of his personal Boeing 737.

Thailand has argued that the plane belongs to the prince, not the Thai government, so it should be released immediately.

Walter Bau argues the jet is Thai state property, and therefore a legitimate target for their attempts to recover outstanding dues.

In the 1990s, Walter Bau was part of a joint venture to construct a toll road near Bangkok. But the company and the Thai government fell out over the toll fees to be levied.

As a result of this, Walter Bau claimed the contractual obligations were not being met.

After years of negotiations, an international tribunal in Geneva awarded Walter Bau about 30 million euros in compensation, a payment the Thai government rejected.

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