Thailand: Stability and Escalation

Abstract

Throughout 1967 three major factors contributed to the continuation of political stability in Thailand. The ruling regime maintained a high level of unity and agreement within its own ranks in spite of considerable differences in personal background and outlook. The two top-ranking military leaders, Premier Thanom Kittikachorn and Deputy-Premier Prapart Charusathien, continued to work remarkably well together during the fourth year since the end of the highly centralized rule of the late Field Marshal Sarit Thanarat. In spite of rumors of personal rivalry and predictions of an inevitable split, Thanom and Prapart proceeded with an amicable and effective ruling style of their own. Their influence was balanced by civilian members in the Cabinet, most prominent of whom were the Minister of Foreign Affairs, Thanat Khoman, and the Minister of National Develop. ment, Pote Sarasin. The regime continued to enjoy the general support and legitimizing aura of the King. A second factor promoting political stability was the economic progress of the kingdom. The national currency remained sound. Employment opportunities expanded. Favorable balances of foreign trade pushed the total financial reserves in the treasury to almost $1,000,000,000. An industrial development program started in 1965 attracted more private foreign capital. By the end of 1967 approximately 400 Chinese, Japanese, American and other foreign corporations had invested more than $300,000,000 in the economy. A second five-year plan (1967-1971) was launched which aimed to raise the gross national product by 7% each year. The new plan envisioned a total investment of $2,700,000,000 with one-third of these funds coming from foreign sources. The prospects for further economic progress were enhanced by a gradual but growing acceptance of family planning. Thirdly, American aid did much to bolster the peace and progress of the country. The United States continued to provide the military equipment and weapons for the Thai armed forces, with the Bangkok government confining its financial obligations to military pay and allowances. Total American military spending went from $42,000,000 in 1966 to $80,000,000 in 1967. Construction projects at air bases in the Northeastern provinces raised per capita income in this depressed region to $80 per year, with some workers receiving the unprecedented income of $45 a month.With the military and economic aid programs having begun in 1950, total American assistance to Thailand passed the one billion dollar mark in 1967. Military aid has con-