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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 Cambodias 
              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 fiascos 
              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 
              Cambodias 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 Thailands 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 Cambodias 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 countrys 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 Shinawatras 
              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 nations best interests.
 
 This is to say nothing of the conflicts wider implications, 
              especially for the investment climate of Cambodia itself and ASEAN 
              as a whole. Many of the groupings 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.
 
 
               
 
 
 
 
 
 Ilissa 
              A. Kabak, C. 
              H. Kwan,   
             
 
 
 
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