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ANCIENT HISTORY: Thailand and Cambodia make peace – but for how long?

By Jonathan Hopfner

While the war on Iraq is in the early stages, another, a less prominent conflict drew to a close March 22, when checkpoints on the Thai-Cambodia border were officially reopened after remaining shut for nearly three months in response to the torching of the Thai embassy in Phnom Penh.

The Thai-Cambodia dispute registered as little more than a blip on the global radar, but despite both governments’ insistence that they consider the matter resolved, could yet have serious implications for relations between the two countries and the fragile unity of the 10-member Association of Southeast Asian Nations (ASEAN).

The conflict was also a potent reminder that in Southeast Asia, ancient history continues to exert a forceful, if often unnoticed, influence on present events. The furor was sparked when a Thai actress popular in both her native country and Cambodia, Suwanan Khonying, allegedly commented that she would not visit Cambodia until it returned the 1100 year-old Angkor temple complex to Thailand. While Khonying insisted she uttered these lines in a role on a soap opera that aired in Thailand two years ago, her words appeared in the Khmer press early this year, prompting Cambodian Prime Minister Hun Sen to comment at a rally in January that Khonying was “not worth a blade of the grass that surrounds Angkor.”

What happened next stunned even those well accustomed to Cambodia’s political instability. On January 29, bands of protesters that had gathered in front of the Thai embassy in Phnom Penh broke into the compound and set the building alight. Having exhausted government targets they next turned their attention to the private sector, burning and looting Thai-owned businesses throughout the capital. By the time order was restored over 30 firms, including hotels, restaurants and airline offices, were damaged or destroyed; Thai Prime Minister Thaksin Shinawatra had sent five planes to the capital to evacuate Thai nationals and the Cambodian ambassador to Bangkok was expelled. Future tallies estimated the riots cost Thai companies at over 2 billion baht, but it is more difficult to gauge the fiasco’s effect on the already tenuous relations between the two nations.

Theories as to the true causes of the incident abound; Thai Ambassador to Phnom Penh Chatchawed Chartsuwan implied upon his return to Bangkok that the riots were not spontaneous and that the Cambodian police were slow to respond to his requests for assistance. Many observers accused Hun Sen of deliberately whipping up nationalist sentiment ahead of nationwide elections in July; a time-honored tactic of Cambodia’s current administration. The Cambodian government itself accused opposition leader Sam Rainsy of fomenting disorder to discredit Hun Sen and his party; a charge Rainsy has hotly denied.

More insightful analysts have suggested that the Cambodian unrest had been brewing for some time. Thailand and Cambodia have been trading salvos for years over two other temple complexes on the Thai-Cambodian border that both countries lay claim to. More of a factor may have been Cambodians’ increasing resentment over what they see as Thailand’s economic colonization of their country; trade along the border reached 18.7 billion baht (US$420 million) last year, with Thailand recording a surplus of a whopping 17.76 billion (US$396 million). Much of Cambodia’s nascent infrastructure, including its mobile phone network, is wholly or partially owned by Thai firms. Even tourism, which the Cambodian government has upheld as a key engine to the country’s development, has grown under Thai auspices; three of the largest hotels in Phnom Penh are Thai-owned and Bangkok Airways enjoys a virtual monopoly on the lucrative route from Bangkok to Siem Reap and the temples of Angkor. Thai music and television is so favored among Cambodian youth that Senior Minister Sok An last May asked local television producers to impose a moratorium on Thai films, soap operas and game shows.

The aftermath of the riots only highlighted to many Cambodians the extent to which they are dependent on their wealthier neighbor. As border posts closed, the economies of towns in Cambodia that rely heavily on cross-border trade and traffic such as Poipet were devastated.

With the border situation returning to normal on March 21 after Hun Sen paid 252 million baht (US$5.8 million) in compensation to Thailand for the destruction of the embassy, relations between the two countries look set to steadily improve. But several thorny issues remain unresolved. Though the Cambodian government has agreed in principle to pay an additional 2 billion baht (US$46.6 million) to businesses affected by the incident, trust between Phnom Penh and Bangkok remains at an all-time low, as evidenced by Shinawatra’s insistence that Cambodia compensate at least one business before the checkpoints were opened. Hun Sen may also have some difficulty persuading his largely impoverished people – many of whom, correctly or not, believe too much Cambodian money already ends up in Thai coffers – that settling the outstanding bill is in the nation’s best interests.

This is to say nothing of the conflict’s wider implications, especially for the investment climate of Cambodia itself and ASEAN as a whole. Many of the grouping’s nations are locked in an uneasy coexistence. Disputed areas exist between Thailand and Myanmar, Thailand and Laos, and the Philippines and Vietnam; Singapore and Malaysia frequently lock horns over issues such as waste and water supply, and Malaysia regularly accuses Indonesia of failing to control illegal logging and immigration along their border on the island of Borneo. The shared history of Thailand, Myanmar, Laos, Cambodia and Vietnam is one of war and conquest; foreign investors may rightly wonder now whether the nationalist tendencies that crop up in all these countries could once again give rise to events like those that took place in Phnom Penh. Business and trade will soon recover, but the real casualty of the Thai-Cambodia spat may be the image of stability and unity that ASEAN has been struggling to project to investors in the face of increasing competition from China. At the very least the incident is a powerful reminder that in Asia, old habits die hard.



Editor: Dr. Scott B. MacDonald, Sr. Consultant

Deputy Editors: Dr. Jonathan Lemco, Director and Sr. Consultant and Robert Windorf, Senior Consultant

Associate Editor: Darin Feldman

Publisher: Keith W. Rabin, President

Web Design: Michael Feldman, Sr. Consultant

Contributing Writers to this Edition: Scott B. MacDonald, Keith W. Rabin,
Jonathan Lemco, Jean-Marc F. Blanchard, Barry Metzger, Russell Smith,
Ilissa A. Kabak, Andrew Novo, Jonathan Hopfner, C. H. Kwan, Dominic Scriven and Andrew Thorson



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