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Many observers, alarmed at Cambodia’s renunciation of us aid and the recent anti-Western demonstrations in Phnom-Penh, have suggested that Cambodia is abandoning her neutrality and moving into the Chinese camp. Perhaps surprisingly, these observers have failed to notice that the renunciation of us aid was coupled with moves towards socialism inside the country. The day after Sihanouk told the Americans to stop anti-Cambodian intrigues or get out of the country, he also announced the impending nationalization of Cambodia’s foreign trade and banking. In fact, neither the rejection of us aid nor the nationalization programme indicate any retreat from the policy of active neutrality that Cambodia has followed for eight years.
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