By 1951 Phibun had begun to share political power with two associates who had participated with him in the 1947 coup that overthrew the civilian regime. One of these was General Phao Siyanon, director general of police and a close associate of Phibun since the original coup of 1932. The other, more junior, partner was General Sarit Thanarat, commander of the Bangkok garrison. As time passed, Phibun’s stock within the military declined as a result of the plots against him. Phao and Sarit grew more powerful than Phibun, who was able to retain the prime ministership only because of their rivalry for the succession.
In November 1951, military and police officers announced in a radiobroadcast that the 1949 constitution was suspended by the government and that the 1932 constitution was in force. The reason given for restoring a unicameral parliament with half its membership appointed by the government was the danger of communist aggression. Shortly after the government-engineered coup, King Bhumibol Adulyadej was called back to Thailand, and for the first time since 1935 an adult monarch resided in the palace in Bangkok. A revised constitution was promulgated in February 1952, and an election was held for seats in the new, single-house legislature, half of the members of which were to be appointed. Nearly all the appointed parliamentary members were army officers.
The Phibun-Phao-Sarit triumvirate continued to operate along the policy lines of the previous five years. In November 1952, the police announced the discovery of a communist plot against the government and began a series of arrests of Chinese. Many Chinese schools were closed and Chinese associations banned. The campaign against communists, with its anti-Chinese emphasis, gathered momentum throughout 1953.
In 1954 Thailand participated in the Manila meeting that resulted in the Southeast Asia Collective Defense Treaty, of which the Southeast Asia Treaty Organization (SEATO) was the operative arm (see Foreign Affairs , ch. 4). The next year SEATO, which made its headquarters at Bangkok, was offered the use of military bases in Thailand. Relations with the United States continued to be cordial during this period, and substantial amounts of American economic, technical, and military aid were provided.
In 1955 the Thai government had imposed a restrictive export tax on rice--the controversial rice premium--and required that traders purchase rice export licenses. The ultimate goal of this tax was to nurture Thailand’s developing industries and to discourage rice production. The government hoped the tax on tonnage of rice exported would drive the price of Thai rice in the world market beyond a competitive level, thus discouraging exports. The government then purchased the rice that could not be sold abroad to create a public rice reserve and sold it on the domestic market at artificially low prices.
By providing low-cost rice, the government hoped to hold down the cost of living in urban areas and prevent demands for higher wages, thereby making Thai industrial production more competitive on world markets. It also argued that the rice policy would encourage diversification in the agricultural sector as traditional rice farmers in the central plain turned to other cash crops--maize, sugarcane, and pineapple. Export controls had no effect however, on rice farmers in the North and Northeast, who produced glutinous rice for local consumption only. Introduction of the rice premium fundamentally altered the liberal policy toward free trade that had been in place since the Bowring Treaty, and it cast the Thai government in an activist economic role, such as that advocated by the nationalists since 1932 (see Mongkut’s Opening to the West , this ch.).
Opponents of the rice policy charged that the rice premium was an excessive tax that ultimately placed the heaviest burden on small farmers in the central plain engaged in growing rice for export, who were deprived of an increase in real income and were prevented from sharing in the benefits of Thailand’s economic boom in the 1960s. Lacking incentive to increase their production, farmers planted less and refrained from introducing improved seeds or using costly fertilizers. Government officials, however, predicted that as rice production increased abroad, world and domestic prices would come together and end the need for the rice premium.