We are pleased to present the twenty-third issue of Southeast Asian Affairs, an annual of comprehensive regional coverage on the political, economic, and social trends and developments in Southeast Asia.

Designed to be easily readable yet in-depth, informative and analytical, the annual has come to be a useful tool for all serious students, academics, diplomats, senior executives, journalists, and publicists who seek to understand the dynamics of Southeast Asian developments.

The year 1995 saw further substantial economic gains in Southeast Asia. Growth rates were high in virtually all countries of the region. The most significant development of the year was the expansion of ASEAN to include Vietnam and moves to incorporate the remaining countries of Southeast Asia into the organization within the next few years. The domestic political systems of the countries in the region were relatively stable and chances of inter-state conflict in Southeast Asia remained minimal. However, the tensions in the Taiwan Strait and the deterioration in U.S.–China relations constituted a dark cloud in an otherwise rosy environment. Southeast Asian Affairs 1996 looks at some of these developments and trends.

Finally, I take this opportunity to thank all the authors who have contributed much to make this publication possible. While the Institute encourages the statement of all points of view in the publication, the authors alone are responsible for the facts and opinions expressed in their articles. Their contributions and interpretations do not necessarily reflect the views of the Institute or its supporters.