but China may not find it safe to depend on this single route alone. By being able to establish an alternative route to the south, Yunnan is expected to develop into another economic centre of southwestern China, benefiting China in general and Yunnan and other southwestern provinces in particular There are other reasons that China would like to see the success of this southern gateway. Apart from Thailand, the route will also connect it with Malaysia, Singapore and Indonesia, the other high-growth, dynamic members of ASEAN. The mutual benefits through trade and investment to Yunnan and other southern provinces of China could be The exposure to international competitive trading could also increase the enormous. efficiency of many state enterprises in these areas which at present may have to be subsidised by the central government. For Lao PDR, the long years of socialist economic management had strained its economic relationship with Thailand. With the advent of the New Economic Vision policy in 1986 where the country has moved from a centrally planned to a market-oriented economy, the economic relationship with Thailand has improved. And this GMs economic zone should be an avenue by which future economic cooperation between Laos and Thailand could develop. As will be explained in some detail later, potential economic benefits from greater economic cooperation between the two countries lie in the area of energy, investment in agriculture, and tourism.
At present, the situ in Myanmar does not lend itself to a clear indication tis to where the country is moving. However, the fact that Myanmar government participated fully in the initial phase of this subregional economic cooperation is sufficient proof of its willingness to along with its neighbours. June 1993, example, the Myanmar government accepted a loan of 336 million baht from Thailand to help in the improvement of the road from Tha ilek, just across from the northernmost border of Thailand, to Keng Tung, a distance of 164 km. This loan carries an interest rate of only 3% a year and a repayment period of not exceeding 20 years with a 10-year grace In general, the economic and trade ties between Thailand and Myanmar have been strong, but recently Myanmar has become more wary of the environmental damage that the current trade has brought (mainly in forest depletion). But, these are relative minor problems which could easily be corrected once Myanmar has succeeded in solving its internal political problems. Different political problems also have befallen the Cambodian government despite its successful formation of democratic government. Even with some semblance of a central government, the country still suffers from disorganisation, with inadequate capital, infrastructure and human resources. A great deal of help is needed in that respect. Top priorities for subregional cooperation from an official point of view included various roads and railways linking Cambodia with Vietnam, Laos and Thailand, and the upgrading of telecommunications network. For Vietnam, the Doi Moi economic reform in 1986 has brought about drastic changes in the way the government has run the country. Foreign trade has been liberalised and foreign investment has been heavily promoted and encouraged. Although Vietnam has no difficulty establishing its external contact with other countries via the sea, the land distances between itself and its western neighbours are so short and easy to upgrade that it would be strange not toexploit this opportunity that the subregional cooperation will bring. In fact, there is already an additional idea to develop another growth triangle between the northeastern region of Thailand starting with Khon Kaen province and extending to Mukdahan and Ubon Ratchathani provinces, with the Savannakhet and Khammouane areas of Lao PDR, and stretching across to Dong Hoi and Da Nang in Vietnam