Thailand's Economic Nationalism(04)
The efforts of these societies and movements were greatly intensified after the Sino-Japanese war broke out in 1937. It was the Thai intention not to allow these Chinese organizations to exist legally and collect money for the war efforts against the Japanese.
Many Chinese trading companies also refused to handle Japanese and Thai goods, thereby undermining Thai-Japanese trade relations. Anxious to keep on good terms with the Japanese, the Thai elite were concerned about the strongly anti-Japanese in outlook of these Chinese societies and political organizations.
To improve matters, the Thai Rice Company was set up, as a way to counter the boycott the Chinese were trying to impose on the sale of Thai rice to Japan
Correspondingly, the 1939 Fuel Oil Act was drafted by the Thais not only to eliminate the Western oil companies but also to give the Japanese a monopoly over the supply of oil to Thailand
Thai economic nationalism did not harm the Japanese. Rather it benefited them, The associated measures simply contributed to French (and British) suspicions that Phibunsongggram was conniving with the Japanese against the French position in Indo-China.
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