3 .The Xat Lao Journal

Winter 2000.

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Thailand: Big Brother Is Back

Laos' relations with Thailand are of a different kind than those with the other neighbors. The links with Vietnam and China are based on a conception of a political or ideological brotherhood. Ethnically and in many other ways, Thailand is a real brother but with a different ideology. For a long time Thailand was the US-sponsored guardian of the 'free and democratic' world in continental Southeast Asia and an enemy of the communist movements in Vietnam, Cambodia and Laos. Nonetheless, Laos and Thailand remained closely related through their common cultural and religious heritage. The Lao and Thai languages are so close that they are mutually comprehensible for most educated people. Both groups are Theravada Buddhists sharing, the same religious tradition and cosmology. Indeed, until the 20th century the population in northeastern Siam was no less 'Lao' than the people living in what is now Laos. The differences are greater if you take the Thai and Lao together and compare them with the various ethnic minorities living in Laos. Accordingly, Lao perceptions of life and the world are much closer to the modem Thai culture than to the communist veneer that links it to Confucian China and Vietnam. When someone from Thailand meets a Lao, he almost instinctively refers to himself as elder brother (phii) in the same way that a Bangkok citizen would do when meeting someone from Thailand's own periphery (the Lao listener will understand phii even though the corresponding term in Lao is ai). Cultural proximity is not, however, always a guarantee for friendship. Just as the United States and Britain (or Denmark and Norway) are divided by a common language - with differences so minor that only the small but crucial nuances are misunderstood - Laos and Thailand are divided by a common culture. The Thai way of doing business is often brash and corrupt. The Vietnamese and Chinese presume less and thus offend less.

Thailand and Laos are of course closely related geographically. For topographical reasons, Thailand provides a much more convenient transit route than Vietnam for goods to and from Laos. When the Lao PDR was established in 1975, Bangkok could easily damage the Laotian economy by stopping Lao trade through its territory. Well aware of this problem, the 4th Party Congress in 1986 gave high priority to improving, relations with Thailand. But the conflicts continued and culminated, in late 1987 and early 1988, in a bloody battle over a disputed border area where Thai logging companies were operating.

This battle turned out to be the blowout that ended the drawn out hostility. The year 1989 marked a dramatic improvement in the relationship between the two countries. The diminished Vietnamese presence paved the way for a greater role for Thailand. The new Thai Prime Minister at the time, Chatichai Choonhavan, expressed a vision 'to turn Indochina from a battlefield into a marketplace'. Since then, strong ties have been rebuilt and the common cosmology of the two countries has been brought forward to cement the relationship. During a visit to Thailand shortly before his death in 1992, Kaysone made the following wish:

Should we only uphold the spirit of close fraternity and neighborliness, refrain from being partial and prejudiced against one another, and together adhere to Buddhist ethics and the five principles of peaceful coexistence, it is believed that we can settle each and every problem that arises to disrupt Lao-Thai relations (FBISEAS-94-068: 42).

The new era of friendship has been blessed by several visits to Laos by members of the Thai royal family, culminating in the visit of the King in connection with the opening of the Friendship Bridge over the Mekong in April 1994.

Today, Thailand constitutes the cornerstone of Laos' foreign economic relations. Thailand is the most important trading partner and in 1993 accounted for more than one third of all foreign investment. Thai capital looms large in banking and manufacture. According to a diplomat in Vientiane, the regulations for foreign banks are so demanding that ‘only the Thai can find a way around them’.

The Bangcak Petroleum Company has taken over one third of the petrol stations in Vientiane. The Laos Beer Company, the country's only beer producer, was established in 1993 as a joint venture between the Laotian Government and Loxley Plc of Thailand. Thai capital also has a strong influence in the telecommunications sector. In 1993, a USD 63 million contract was signed between the Laotian government and Thailand's Shinawatra Computer and Communications Ltd. for the construction and improvement of public radio and television broadcasting services. In 1994, Thai companies signed joint-venture contracts for two industrial parks. To illustrate the success of Thai business in Laos, the embassies of other countries in Vientiane have started to advise their own nationals to find a Thai business partner before investing in Laos.

Thailand's new role is of course problematic for Laotian leaders. The penetration of Thai capital may virtually transform Laos, in economic and cultural terms, into a Thai province. The Lao watch Thai television and are disregarding their own. The Thai electricity company, EGAT, has a monopoly position in buying Lao hydroelectric power. The Thai domination of lowland Laos has got to a point where responsible circles in Bangkok are issuing warnings to their own nationals against arrogance and short-sighted exploitation: 'We don't want to be resented the same way in Laos that we used to resent the Japanese', they say.

Well aware of the importance of Laos' natural resources for Thailand, the leaders in Vientiane have used Bangkok's economic hunger to demand the curbing of anti-Vientiane movements in Thailand. Armed Hmong forces still exist although most refugees have now been repatriated. The unsettled border dispute is also a matter of concern but this is now being handled at the negotiation table. There is a strong urge on both sides to successfully demarcate the border, but the fact that this has not yet been done remains a cause of concern; Laos has now settled all border issues with the other neighboring states.

The Lao have ample historical evidence to support resentment of the Thai. In 1827, Vientiane was sacked by Siamese forces and the Lao principalities were for long periods under Siamese suzerainty. In 1893, Siam signed a treaty with France whereby the Lao on the right bank of the Mekong became subjects of Siam while those on the left bank became French colonial subjects. In 1941, parts of Laos were annexed by Thailand after a short Franco-Thai war but Thai ambitions to fully annex Laos were frustrated by lack of Japanese support. More recently, from

1964 to 1973, Royal Thai Air bases were placed at the disposal of the US Air Force for its bombing campaign in Laos and of the Central Intelligence Agency for its support of Guerrilla groups in Laos, most notably the base at Udon.

Today's Laotians are in danger of being invaded by their big brothers in a new way, through trade, investments and the media. It is not the regime that is colonized but its people. The attractions of modem Thai society are propagated in Laos through television, radio and video. There is a growing Thai-ification in the cultural sphere. An observer in Vientiane made the following comment to us:

When the King of Thailand visited Laos two years ago, it was the first time in thirty years that he went abroad. I wonder if he felt he was abroad, or if perhaps he reentered a lost province.

The political leaders of Laos have few means to resist the Thai penetration but some of the elders give voice to their concern about decadent cultural influences and aggressive exploitative investors. Phoumi Vongvichit, however, the main advocate of such concerns, died in 1994.

The Thai government and King have become increasingly aware of the need to improve Thailand's image. One measure has been the creation of the Thai-Lao Association. It has a non-official status but is led by Asa Sarasin, the former Foreign Minister of Thailand who still has a strong position in government circles. One of his main tasks is to teach Thai businessmen how to behave respectfully towards the Lao.

Source: © The Quest for Balance in a Changing Laos by Soren Ivarsson

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