Relations between Bangkok and Phnom Penh sunk to their lowest ebb in recent years after Cambodian PM Hun Sen recently offered, former Thai leader Thaksin Shinawatra a home and a job as an economics adviser
Siem Reap 02 December 2009
By Luke Hunt
VOA
Cambodia will cancel all loan agreements with Thailand as a diplomatic crisis between the two countries spreads into economic development. The dispute could delay a railway through Southeast Asia.
Cambodian Prime Minister Hun Sen says all loans from Thailand will be canceled. His transportation department will annul a $40 million loan from Bangkok for road repairs.
This week he ordered provincial authorities to cancel all loans and suggested student scholarships from Thailand should be scrapped. Mr. Hun Sen says Cambodians are prepared to die for the country but would not be looked down upon by Thais.
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