Page "Kingdom of Cambodia (1953–1970)" Paragraph 18

Sihanouk's attitude toward the left was often cynical.

He realized that his own political position was dependent on carefully balancing off the left in Cambodia against the right.

If one side ever defeated the other, the next step of either party would be to end Sihanouk's role in ruling the country.

He often declared that if he had not been a prince, he would have become a revolutionary.

Sihanouk's chronic suspicion of United States intentions in the region, his perception of revolutionary China as Cambodia's most valuable ally, his respect for such prominent and capable leftists as Hou, Hu, and Khieu, and his vague notions of " royal socialism " all impelled him to experiment with socialist policies.

It should also be recognized that each move toward socialism gave Sihanouk and his inner circle the able to reward each other with lucrative political " spoils " and patronage.

In 1963 the prince announced the nationalization of banking, foreign trade, and insurance as a means of reducing foreign control of the economy.

In 1964 a state trading company, the National Export-Import Corporation, was established to handle foreign commerce.

The declared purposes of nationalization were to give Khmer nationals, rather than Chinese or Vietnamese, a greater role in the nation's trade, to eliminate middlemen and to conserve foreign exchange through the limiting of unnecessary luxury imports.

As a result of this policy, foreign investment quickly disappeared, and a nepotistic " crony socialism " emerged somewhat similar to the " crony capitalism " that evolved in the Philippines under President Ferdinand Marcos.

Lucrative state monopolies were parceled out to Sihanouk's most loyal retainers, who " milked " them for cash.