The main effect of the peace treaty was to undo the Thai annexation of the
Shan States and four of the
Unfederated Malay States. The British achieved less than they had hoped, largely because the United States opposed any punitive action against Thailand. They were unable, for instance, to reduce the size of Thai armed forces. The treaty did require the free delivery of up to 1.5 million tons rice, which was in surplus in Thailand, to British Malaya, where there was a shortage. It also forbade the Thais from building a
canal across the Kra isthmus without British government permission, which clause undercut the authority of
Pridi Banomyong's government. After its enactment, the United States and Britain restored diplomatic relations with Thailand on 5 January. The next day a
general election was held. After the treaty, the United States lent $10,000,000 to Thailand for the reconstruction of her transportation network, heavily damaged by American bombing. Thailand joined the
United Nations on 16 December 1946. A separate
Australian–Thai Peace Treaty, required by the Australian declaration of war of 2 March 1942 and the Australian
Statute of Westminster Adoption Act, was signed on 3 April 1946. ==Notes==