Wayzata World Factbook 1995/World Factbook - 1995 Edition - Wayzata Technology (1995).iso/mac/text/Build/orig BACKGR/BNOT0103.TXT

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National Trade Data Bank
ITEM ID     : ST BNOTES THAILAND
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - THAILAND

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | THAILAND

THAILAND BACKGROUND NOTES, NOVEMBER 1991
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
US DEPARTMENT OF STATE

November 1991

Official Name:  Kingdom of Thailand

Geography
Area: 513,115 sq. km. (198,114 sq. mi.): about the size of Texas.
Cities: Capital--Bangkok (pop. 6 million).  Other cities--Chiang Mai
(159,279), Hat Yai (142,166), Nakon Ratchasima (193,121).  Terrain: Four
general regions--a densely populated central plain watered by the Chao
Phraya River system; a northeastern plateau bordered on the east by the
Mekong River; a mountain range spanning the country in the west and
separating the plain and plateau in east-central Thailand; and the
southern isthmus joining the land mass with Malaysia.  Climate: Tropical
monsoon.

People
Nationality: Noun and adjective--Thai(s).  Population (1990): 57
million.  Annual growth rate (1990): less than 1.6%.
Ethnic groups: Thai 84%, Chinese 12%.  Religions: Buddhist 95%, Muslim
3%.  Languages: Thai, regional dialects.  Education: Years
compulsory--6.  Attendance--96%.  Literacy--89%.  Health: Infant
mortality rate-- 34/1,000.  Life expectancy--64 years.  Work force: 31
million.  Agriculture--59%.  Industry, commerce, services--26%.
Government--8%.

Government
Type: Constitutional monarchy.  Constitution: Interim constitution.
Independence: Never colonized.

Branches: Executive--king (chief of state), prime minister (head of
government).  Legislative--interim National Legislative Assembly.
Judicial--three levels of courts.

Administrative subdivisions: 73 provinces subdivided into 602 districts.

Political parties: Multiparty system; Communist Party is prohibited.
Suffrage: Universal over 20.

Central government budget: About $12 billion.

Defense: 3% of GNP.

Flag: Two red stripes at top and bottom, two white inner stripes, and
wider blue band in middle.

Economy
GNP (1990): $79 billion.  Annual growth rate: 10%.  Per capita income:
$1,400.  Avg. inflation rate: 6%.

Natural resources: Fisheries products, rubber, tin, natural gas, timber,
lignite, zinc.

Agriculture (12% of GNP): Products--rice, tapioca, corn, sugarcane,
pineapple.

Industries: Petroleum products, cement, textiles, integrated circuits,
processed food, ball bearings, footwear.

Trade: Exports--$23 billion: textiles, fisheries products, rubber, rice,
jewelry and precious stones, tapioca, integrated circuits, sugar,
footwear, canned pineapple.  Major markets--US, Japan, EC, Singapore,
Hong Kong.  Imports--$33 billion: machinery and parts, petroleum, iron
and steel, chemicals, vehicles and parts, jewelry, fish preparations,
electrical appliances, fertilizers, and pesticides.  Major
suppliers--Japan, US, EC, Singapore, Taiwan, China, South Korea.

Net services and unrequited transfers: Tourism expenditures--$5 billion;
remittances from Thai workers abroad--$969 million.

Exchange rate (1991): 25.5 baht=US$1.

International Affiliations
UN and some of its specialized agencies, including the World Bank group;
General Agreement on Tariffs and Trade (GATT); Association of South East
Asian Nations (ASEAN); Asian Development Bank; INTELSAT.

PEOPLE
Thailand's population is relatively homogeneous.  More than 85% of the
people speak a dialect of Thai and share a common culture.  This core
population includes the Central Thai (36% of the population), Thai-Lao
(32%), Northern (8%), and Southern Thai (8%).

The language of the Central Thai population is the language taught in
schools and used in government.  Several other small Thai-speaking
groups include the Shan, Lue, and Phutai.

The largest minorities are the Chinese (about 12% of the population) and
the Malay-speaking Muslims in the south (3%).  Other groups include the
Khmer, the Mon (who are substantially assimilated with the Thai), and
the Vietnamese.  Smaller, predominantly mountain-dwelling groups total
about 500,000.

The population is predominantly rural and heavily concentrated in the
rice-growing areas of the central, northeastern, and northern regions.
The urban population (13 million) is concentrated in Bangkok and
adjacent provinces.  While Thailand once had one of the world's
fastest-growing populations, a highly successful government-sponsored
family planning program resulted in a dramatic decline in the population
growth rate from 3.1% in 1960 to less than 1.6% today.  Over the same
period, life expectancy increased from 51 years to over 64 years.

Universal free public education is compulsory for 6 years.  Education is
the third largest item in the Thai budget, accounting for 16% of the
total.  In 1985, 96% of primary and 30% of secondary school-age children
were enrolled in school, and about 6% were in universities or colleges.

The focus on education also has resulted in a substantially higher adult
literacy rate.  According to World Bank data, the adult literacy rate
had risen to 89% by 1980, as compared to 50% only 20 years earlier.

Theravada Buddhism is the religion of more than 90% of the Thai.  The
government permits religious freedom, however, and numerous other
religions are represented.  Spirit worship and animism are important in
Thai religious life.

HISTORY
Southeast Asia has been inhabited for more than half a million years.
Recent archeological studies suggest that by 4000 BC, communities in
what is now Thailand had emerged as centers of early bronze metallurgy.
This accomplishment, together with the cultivation of wet rice, provided
the impetus for social and political organization.  New evidence
suggests that these early technological innovations may have originated
in Thailand and other places in Southeast Asia and been transmitted to
China, not vice versa as long believed.  The Thai language links groups
in southern China and modern Thailand.  Strong evidence exists of
migrations from southern China to Southeast Asia in AD 6th and 7th
centuries, but earlier migrations, possibly from south to north, are
less well understood.  Thailand's early history was a complex struggle
for territory and power among the Malay, Thai, Mon, and Khmer
(Cambodian) peoples.

The Thai date the founding of their nation to the 13th century.
According to tradition, in 1238, Thai chieftains overthrew the Khmer at
Sukhothai, establishing the Thai kingdom.  Following the political
decline of the Sukhothai kingdom with the death of its energetic King
Ramkhamhaeng (Rama the Great), a new, centralized Thai kingdom emerged
in 1350 with its center at Ayutthaya on the Chao Phraya River.

Rama Thibodi, the first ruler of the Ayutthaya kingdom, made two
extremely important contributions to Thai history: the establishment and
promotion of Theravada Buddhism as the official religion and the
compilation of the Dharmashastra, a legal code based on Hindu sources
and on Thai custom.  The Dharmashastra remained in effect until the late
19th century.  The Ayutthaya kingdom had some contact with the West,
beginning with the Portuguese in the 16th century, but relations with
other Southeast Asian nations were of primary importance until the 19th
century.

In the late 18th century, Burmese armies overwhelmed the kingdom.  Rama
I, founder of the present ruling dynasty and one of the leaders who
eventually drove out the Burmese, established the capitol, Bangkok, at
its present location in 1782.  His successors, especially after the
British victory in Burma in 1826, became increasingly preoccupied with
the threat of European colonialism.

It is a source of great pride to the Thai that theirs is the only
country in South and Southeast Asia never colonized by a Western power.
The Thai understood the necessity of flexibility and adaptability.
Believing that "the strength of bamboo was its ability to bend with the
wind," they adapted themselves to the pressures of foreign powers to
preserve the nation's independence.

Rama III recognized Western power with negotiation of the Treaty of
Amity and Commerce with the British in 1826.  The United States began
diplomatic exchanges with Siam--as Thailand was called until 1938--in
1833.  More important steps in this direction were made by Rama IV,
known in the West as King Mongkut, and by Rama V (King Chulalongkorn),
who carried out a virtual revolution of modernization in the government
during the last quarter of the 19th century.  These monarchs combined
diplomatic skill with recognition of the need to modernize the state
structure, making it possible for Siam to survive as an independent
state.

The 1932 revolution transformed the government from an absolute to a
constitutional monarchy.  The transition was smooth and nonviolent
primarily because the ruling monarch, King Prajadhipok (Rama VII),
advocated the transfer of power in response to changing political
conditions.

European predominance in Southeast Asia was challenged in the 20th
century by the Japanese.  When Japan struck at the Philippines and
Malaya in December 1941, it also invaded Thailand.  Faced with
overwhelming Japanese power, which quickly caused the collapse of
Western forces in the area, Thailand acceded to Japanese demands.
Although nominally allied with Japan during World War II, Thailand was
effectively an occupied country.

Japan's defeat in 1945 was followed by an era of increasingly close
relations with the United States, which had extended assistance to
Thailand in the immediate post-war period.  Thailand saw the victory of
communist forces on mainland China in 1949 as a potential threat to its
independence, and it became an active participant, along with the United
States, in efforts to check communist expansion in Southeast Asia.

Since 1975, Thailand has served as a country of first asylum for
hundreds of thousands of refugees from communist Indochina.  For these
humanitarian practices, Thailand has received acclaim from international
organizations supporting refugee relief.

The present monarch, His Majesty King Bhumibol Adulyadej (Rama IX), and
Queen Sirikit have four children, including one son, Prince
Vajiralong-korn, who was invested as crown prince in December 1972.

GOVERNMENT
In February 1991, a bloodless military coup toppled the elected civilian
government, abolishing the constitution  and national assembly.  The
military leaders established a National Peacekeeping Council, which in
turn appointed a largely civilian transitional cabinet and an interim
National Legislative Assembly.  The assembly is reviewing a draft
permanent constitution, which may be promulgated by the end of 1991.
The interim constitution now in effect calls for elections for a
civilian government by April 1992, including a permanent legislative
assembly, which will select a new cabinet.

The king has little direct power, but he is an important popular symbol
of national identity and unity.  He appoints a privy council to advise
him and, under certain conditions, to appoint a regent for the exercise
of royal powers.

The legal system, which has not been affected by the coup, blends
principles of traditional Thai and Western laws; Koranic law is applied
in the far south, where Muslims constitute the majority of the
population.  The Supreme Court is the highest court of appeals, and its
judges are appointed by the king.

Thailand's 73 provinces include the metropolis of greater Bangkok.
While Bangkok's governor is popularly elected, those of the remaining
provinces are career civil servants appointed by the Ministry of
Interior.

Principal Government Officials
Chief of State--King Bhumibol Adulyadej (Rama IX)
Prime Minister--Anand Panyarachun
Minister of Foreign Affairs--Asa Sarasin
Ambassador to the US--Birabhongse Kasemsri
Ambassador to the UN--Nitya Pibulsonggram


Thailand maintains an embassy in the United States at 2300 Kalorama Rd.
NW, Washington, DC, 20008 (tel:  [phone]).  Consulates are located
in New York City, Chicago, and Los Angeles.

ECONOMY
Thailand has one of the developing world's strongest economies.  Since
the 1960s, the annual economic growth rate has averaged over 7% in real
terms.  In the late 1980s, annual growth accelerated to 9-10% as exports
and investments in Thailand benefited from the realignment of East Asian
currency values.  Although Thailand has traditionally had an
agrarian-based economy, its manufacturing and service sectors have grown
tremendously in size and significance.

The economy is basically a free-enterprise system.  Certain services are
state-owned enterprises (e.g., electricity, telecommunications,
railways, port authority, and the national air carrier).  The Royal Thai
Government welcomes foreign investment, and investors who are willing to
meet certain requirements regarding local content or ownership can apply
for special investment privileges through the Board of Investment.  The
labor movement is fairly weak in Thailand; only 3% of the work force is
unionized.

Agriculture and fishery production continue to play a significant role
in the Thai economy.  Rice remains the country's most important crop.
More than half of  the population depends on the cultivation of rice for
their livelihood, although the percentage is decreasing.  Other
agricultural commodities produced in significant amounts are fish and
fishery products, cassava (tapioca), rubber, maize (corn), and sugar.
Exports of processed foods (such as canned tuna, frozen shrimp, and
canned pineapples) have increased dramatically.

Thailand's manufacturing sector has grown tremendously in recent years.
The recent realignment of currency values in East Asia has made Thailand
an attractive site for investment, especially by Japanese and Taiwanese
manufacturers.  Textiles are the country's largest export item.
Integrated circuits, footwear, jewelry, and ball bearings also are
important manufactured exports.  A wide range of factories and assembly
plants produce such goods as electric and electronic appliances,
building supplies, and automobiles for the Thai domestic market.

Rapid economic growth in recent years has led to a much higher level of
trade with other countries.  Between 1987 and 1991, exports more than
doubled as imports increased almost 200%.  Thailand's largest export
market is the United States, with which it has a trade surplus; the
value of that surplus has grown significantly in recent years.  Japan is
the second largest export market and largest import supplier.  Other
major trading partners are the European Community, Singapore, Hong Kong,
Taiwan, and China.

Thailand's principal imports, machinery and parts, reflect the
large-scale investments being made by foreign, particularly Japanese,
manufactures.  As a result, Thailand has been running an overall
merchandise trade deficit. The deficit is to some degree offset by
earnings from tourism and remittances from Thai workers abroad.

Tourism is Thailand's single largest earner of foreign exchange.  In the
late 1980s, earnings from tourism tripled, in large part due to the
publicity associated with "Visit Thailand Year" in 1987-88.  Many new
luxury hotels and other tourist facilities have opened in order to serve
the growing number of tourists from Japan, Europe, the United States,
and Taiwan.

Foreign investment plays a significant role in the Thai economy.  The
single largest foreign investment--that by Union Oil of California--is
an  estimated $3 billion investment in the development of gas fields in
the Gulf of Thailand.  Many large multinational electronics companies
have set up production in Thailand; international brands manufactured
there are sold on the local market.

Thailand's favorable economic prospects and excellent credit rating
allow it to borrow commercially at highly favorable rates.
Additionally, Thailand has received official credits from foreign
governments and from multilateral financial institutions, such as the
World Bank and the Asian Development Bank.  While some problems with
external debt levels were encountered in the early 1980s, prudent fiscal
policies and rapid economic growth since have enabled Thailand to cut
the debt service ratio almost in half, and, by 1991, the debt service
ratio stood at the manageable level of about 9%.

Thailand is a member of the General Agreement on Tariffs and Trade
(GATT) and actively supports the Uruguay Round of trade negotiations.
It is a member of the Cairns group of agricultural exporters.  Although
the Association of Southeastern Asian Nations (ASEAN) has set up
preferential trading arrangements, the  trade profiles of the ASEAN
members (including Thailand) are competitive rather than complementary,
and the majority of Thai trade continues to be with Japan, the United
States, and the EC.

Bangkok and its environs have traditionally been by far the richest part
of Thailand and the infertile northeast the poorest.  One of the
overriding concerns of successive Thai governments has been to reduce
regional income differentials, which have been exacerbated by rapid
economic growth in and around Bangkok in recent years.  In response, the
government has tried to encourage the decentralization of economic
activity out of Bangkok.  However, many feel that for the foreseeable
future, the economic opportunities available in Bangkok will continue to
outpace those in the provinces by a considerable margin.

Although predictions are always difficult, it is likely that Thailand's
economy will continue on its path of rapid growth and industrialization.
A possible obstacle to sustained rapid growth would be infrastructural
capacity constraints, which are increasingly evident in
telecommunication, roadway, electricity generation, and port systems.
Another possible problem area would be the shortage of engineers and
skilled technical personnel.

DEFENSE
The army, navy, and air force stress the defense of Thailand from
external attack as their primary duty and internal security and national
development as important secondary missions.  The armed forces have a
combined strength of about 294,000 personnel.  The government spends
about 16% of its budget on defense.  Expenditures in fiscal year 1991
totaled $2.4 billion, about 3% of the GNP.

The US foreign military sales (FMS) program, the primary source of
modern military equipment for Thailand, has contributed to the continued
improvement of the capability of the Thai military to counter potential
threats to the country's territorial security.  Due to a declining trend
in US military assistance in recent years, FMS purchases are now largely
financed out of Thailand's own budgetary resources.  In addition, the
two countries maintain a vigorous bilateral exercise program involving
all the military services of each country.

FOREIGN RELATIONS
Thailand's history of freedom from formal Western colonialism sets the
country apart from its neighbors.  Pursuit of the national interest
through flexible and pragmatic diplomacy continues to be the keystone of
government policy.  The country's foreign policy includes support for
ASEAN in the interest of regional stability and emphasis on the security
relationship with the United States.

Thailand participates in international and regional organizations.  It
has developed increasingly close ties with other ASEAN
members--Indonesia, Malaysia, the Philippines, Singapore, and
Brunei--whose foreign and economic ministers hold annual meetings.
Regional cooperation is progressing in economic, trade, banking,
political, and cultural matters.

Since the Vietnamese occupation of Cambodia in early 1979, that conflict
has been Thailand's primary regional foreign policy concern.  Following
negotiations throughout 1991, a peace agreement was signed in Paris in
October 1991.  Successful implementation would allow for the
repatriation of hundreds of thousands of Cambodians displaced by the
conflict, and perhaps an end to the flow of refugees from Vietnam and
Laos, which has been a pressing foreign policy issue for Thailand.

US-THAI RELATIONS
Official US-Thai relations date from 1833, when the two countries signed
the Treaty of Amity and Commerce, the first US treaty with an Asian
country.

Since World War II, the United States and Thailand have developed close
relations in many fields, as reflected in several bilateral treaties and
both countries' participation in many multilateral activities and
agreements under the UN aegis.  The principal bilateral arrangement in
force is the Treaty of Amity and Economic Relations signed in 1966.
Other important agreements cover air transport, civil uses of atomic
energy, sales of agricultural commodities, investment guarantees, and
military and economic assistance.

While numerous areas of agreement exist and serve to strengthen
understanding and cooperation between the United States and Thailand, US
calls for Thailand to play a role in the world economic structure
commensurate with its industrial  diversification and growing economic
importance have given rise to trade frictions and strains on otherwise
very good bilateral relations.  Particularly since 1985, and as part of
a global policy enjoying bipartisan support in the United States, the US
Government has sought improvements in the Thai regime for protecting US
intellectual property comparable to those standards achieved in other
East Asian countries.  Progress has been made, but further efforts are
required.  The United States also initiated a dialogue with Thailand on
promoting worker rights in response to recent US legislation linking
these rights with US trade policy.  The United States also continues to
seek improved access for US products and services in the Thai market.

In recent years, as the worldwide campaign against trafficking in
illicit narcotics and dangerous drugs has become increasingly important,
the United States and Thailand have worked together and with the United
Nations in a broad range of programs.  A memorandum of understanding was
signed in 1971 affirming US-Thai cooperation, and a strengthened Thai
enforcement program has resulted.  With US support, this program has
registered a number of successful seizures and arrests as part of an
effort to interdict the flow of illicit opiates out of the remote jungle
area where Burma, Laos, and Thailand meet (the so-called Golden
Triangle).  In recent years, the Thai Government has undertaken an
active program to eradicate opium planted in its territory.

The United States and Thailand are among the signatories of the 1954
Manila pact.  Article IV(1) of this treaty provides that, in the event
of armed attack in the treaty area (which includes Thailand), each
member would "act to meet the common danger in accordance with its
constitutional processes."  Despite the dissolution of  the South East
Asia Treaty Organization  in 1977, the Manila pact remains in force and,
together with the Thanat-Rusk communique of 1962, constitutes the basis
of the US security commitment to Thailand.  During Thai Prime Minister
Chatichai Choonhavan's visit to the United States in June 1990,
President Bush reaffirmed US support for the Manila pact.

Thailand's stability and independence are important to the maintenance
of peace in the region.  Economic assistance has been extended in
various fields, including rural development, health, family planning,
education, and science and technology.  The US Peace Corps program in
Thailand has about 170 volunteers, almost half of whom teach English.
The remainder are engaged in education, agricultural and rural
development, and health programs.

Thailand has received US military equipment, essential supplies,
training, and assistance in the construction and improvement of
facilities and installations since 1950.  A small US military advisory
group in Thailand oversees the delivery of equipment to the Thai armed
forces and the training of Thai military personnel in its use and
maintenance.

As required by law, the bulk of US military and other assistance to
Thailand was suspended following the February 1991 coup.  In FY 1990,
the US provided $3 million in military assistance grants and $2.2
million for military education and training.

As part of their mutual defense cooperation, Thailand and the United
States over the last decade have developed a vigorous bilateral military
exercise program, which engages all the services of each nation and now
averages 40 joint exercises per year.  The annual schedule is
highlighted by Cobra Gold, which is the second largest bilateral
exercise in which the US participates in the Pacific region.

Principal US Officials
Ambassador--David F. Lambertson
Deputy Chief of Mission--Victor L. Tomseth
Counselor for Political Affairs--Ralph L. Boyce
Counselor for Economic Affairs--John Medeiros
Counselor for Administrative Affairs--Jose Cao-Garcia
Commercial Counselor--Herbert A. Cochran
Agricultural Attache--Richard K. Petges
Public Affairs--Donna Marie Oglesby
Director, US Agency for International Development Mission--Thomas H.
Reese, III
Defense Attache--Col. William P. Kinnear, Jr., USAF
Chief, Joint US Military Advisory Group--Brig. Gen. Robert Lewis
Stephens, Jr., USA
Consul General--James C. Struble

The US Embassy in Thailand is located at 95 Wireless Road, Bangkok (tel.
252-5040/5171).  Consulates are at Chiang Mai, Vidhyanond Road (tel.
252-629/30-33); Songkhla, 9 Sadao Road (tel. 311-589); and Udorn, 35/6
Supakitjanya Road (tel. 221-548).

Entry Requirements and Customs.  A valid passport is required.  US
visitors are admitted without visas for a stay of 15 days or less; for
longer stays, a visa appropriate for the purpose of the visit (e.g.,
tourism, business, student) must be obtained before arrival.

No immunizations are required; however, travelers to rural areas may
wish to take typhoid, tetanus, rabies, gamma globulin, and cholera shots
and a malaria preventative.

Customs prohibits the export of religious images, regardless of the age
of the item.  A Thai government permit is required to take antiques out
of the country.

Narcotics and the Law.  Thailand has an extremely strict anti-narcotics
law that provides for severe sentences, including the death penalty, for
narcotics traffickers and users.  Several hundred foreigners are
imprisoned in Thailand on narcotics charges, a number of whom are
serving life sentences.
Climate and Clothing.  Lightweight, washable clothing is comfortable and
practical for Bangkok's tropical climate.  In northern Thailand, a
jacket or sweater is needed during the cool season.

Health.  Hospitals are available for routine treatment.  Mosquitoes are
plentiful, but malaria is not a problem in Bangkok.  Hepatitis is fairly
common in Thailand.  Avoid tapwater, raw milk, ice cream, uncooked
meats, and unwashed fruits and vegetables.

Telecommunications.  Good 24-hour telephone service to the US is
available at the Central Radio Telephone Service of the General Post
Office.  Telegrams can be sent from any post office and many hotels.
Bangkok is 12 hours ahead of eastern standard time.

Transportation.  Flights are available from the US to Bangkok via Tokyo
and Hong Kong.  Principal cities within Thailand can be reached by air,
and many towns and cities are served by comfortable, dependable trains.
Buses, taxis, rental cars, and samlors (three-wheeled motor vehicles)
can be hired in Bangkok.  Agree on the fare before entering a taxi or
samlor.  Local transportation in small towns is more often by pedicab
than by taxi.  Highways vary in quality from modern divided highways to
unpaved, ungraded roads that may be impassable in the rainy season.
Traffic moves on the left.

Tourist Attractions.  Bangkok offers its visitors the opportunity to
visit many royal and religious monuments, including the Grand Palace
compound and the temples of the Golden Buddha and the Reclining Buddha.
Outside the capital, the northern city of Chiang Mai (644 km./386 mi.
from Bangkok) is the gateway to excursions into the villages of the Thai
hill tribe peoples.  Ayutthaya, the old capital city, has many ancient
temples.  Beach resorts include well-developed facilities in Pattaya (80
km./48 mi. southeast of Bangkok) and Phuket (862 km./517 mi. southwest
of Bangkok).

National Holidays.  Thai business establishments (and the US Embassy)
may be closed on holidays set by the lunar calendar, which changes from
year to year.  Check with the Thai Embassy or consulates for exact
dates.