Co-operation and co-administration with CPP Benny Widyono, the UN secretary-general's representative in Cambodia from 1994 to 1997, has observed that although Ranariddh was nominally senior to Hun Sen, he held less executive power. Ranariddh initially viewed Hun Sen with suspicion, but the pair soon developed a close working relationship, agreeing on most policy decisions made until early 1996. In August 1993, while Cambodia was still under the administration of an interim government, Ranariddh and Hun Sen jointly applied to make the country a member in the
International Organization of the Francophonie. The decision to enter the Francophonie sparked a debate among students in higher educational institutes, particularly those from the
Institute of Technology of Cambodia who called for French to be replaced with English as the language of instruction. In response, Ranariddh encouraged students to simultaneously learn both English and French. In August 1995, Ranariddh expressed admiration for the political and economic systems of Singapore, Malaysia and Indonesia. As he saw it, these countries, characterised by
hybrid regimes, active
economic interventionism and limited
press freedom, served as good models to propel Cambodia's socio-economic growth. Ranariddh espoused the view that economic development should take precedence over democratic and human rights. In the initial months of the administration, he actively courted political leaders from various regional countries, including Indonesia, Singapore and Malaysia, with a view to encouraging investment in Cambodia. In early 1994, Ranariddh established the Cambodian Development Council (CDC) to encourage foreign investment, and served as its chairperson. The Malaysian Prime Minister,
Mahathir Mohamad, supported Ranariddh's plans, and encouraged Malaysian businessmen to invest and assist in developing the tourism, infrastructural development and telecommunications industries. In November 1994, the CDC opened a tender to build a casino near
Sihanoukville and proposals submitted by three companies were shortlisted; Ariston Berhad from Malaysia, Unicentral Corporation from Singapore and Hyatt International from the US. Ariston's proposal was valued at US$1.3 billion, and included bringing a luxury
cruise ship with casino to Cambodia, to be used to accommodate tourists until the Sihanoukville resort was built. Before the tender was even concluded, Ariston's ship was brought to Phnom Penh in early December. The Tourism Minister,
Veng Sereyvuth suspected that there was backroom dealing activities between CDC and Ariston, The
Khmer Rouge still controlled large tracts of forests in the regions of western and northern Cambodia bordering Thailand, and helped finance its operations by selling timber to Thai forestry companies. The Cambodian government was unable to impose its will in Khmer Rouge territory, and was eager to regain the logging revenues. In January 1994, Ranariddh and Hun Sen signed a
bilateral agreement with Thai Prime Minister
Chuan Leekpai. The agreement provided for felled trees to be legally exported to Thailand on a temporary basis until 31 March 1994. The agreement also arranged for specially designated customs zones to be created within Thai territory, which allowed Cambodian custom officials to inspect the logs and collect export duties. The logging ban went into force on 31 March 1994, but trees continued to be felled and a new stockpile of timber was created. Ranariddh and Hun Sen gave special authorisation for the lumber to be exported to
North Korea. They would continue the practice of periodically lifting export bans and granting special approvals to clear stocks of fallen timber on an on-and off-basis until Ranariddh's ouster in 1997.
Conflicts within the government In October 1994, Ranariddh and Hun Sen dropped
Sam Rainsy as Finance Minister during a cabinet reshuffle. Rainsy had been appointed by Ranariddh in 1993, but both prime ministers became uncomfortable working with Rainsy, because of his pursuit of allegations of government corruption. Rainsy's dismissal upset Norodom Sirivudh, who resigned as Foreign Minister the following month. In March 1995, during an academic forum on corruption in Cambodia, Rainsy publicly questioned Ranariddh's acceptance of a
Fokker 28 airplane and a US$108 million commission from Ariston Berhad. This angered Ranariddh, who expelled him from FUNCINPEC in May 1995. In 1995, Ranariddh made calls for capital punishment by calling for murderers and drug traffickers to be executed by the state. From January 1996 onwards, Ranariddh's relations with Hun Sen began to show signs of tension. Hun Sen submitted a government circular to reinstate 7 January as a national holiday, the anniversary of Phnom Penh's liberation from the Khmer Rouge by Vietnamese forces. Ranariddh added his signature to the circular, which incurred the ire of Sihanouk and several FUNCINPEC leaders. A few days later, apparently to tone down dissatisfaction from party members, Ranariddh publicly accused the
Army of Vietnam of encroaching into the territories of four Cambodian provinces bordering it. As Widyono saw it, Ranariddh intended to test Hun Sen's response to his accusations, of which the latter chose to remain quiet. During a closed-door FUNCINPEC meeting in the later part of January 1996, party members criticised Hun Sen and the CPP for monopolizing government power, and also chided Ranariddh for being too subservient to Hun Sen. Ariston blamed the lack of a governmental authority in Sihanoukville for the delay. At the end of April 1996, the government formed the Sihanoukville Developmental Authority (SDA) to oversee regulatory affairs and facilitate development. At a conference in May 1996, Ranariddh charged that CPP-controlled ministries were deliberately delaying the paperwork needed to complete the approval of Ariston's project. Ranariddh directed FUNCINPEC's co-minister of the interior,
You Hockry to close down all casinos in the country, citing the absence of authorising legislation. Ranariddh also proposed the cancellation of Ariston's contracts due to the delays. At a FUNCINPEC congress in March 1996, Ranariddh expressed unhappiness over his relationship with Hun Sen and the CPP. He likened his position as prime minister, and those of the FUNCINPEC ministers, to "puppets". He also questioned the CPP over their delays in appointing FUNCINPEC local officials as district chiefs. Ranariddh threatened to dissolve the National Assembly before the end of 1996, should FUNCINPEC's concerns remain unresolved. On 27 April 1996 Ranariddh, while vacationing in Paris, attended a meeting with Sihanouk, Rainsy, Chakrapong and Sirivudh. A few days later, Sihanouk issued a declaration praising Hun Sen and the CPP, while also stating that FUNCINPEC had no intention of leaving the coalition government. According to Widyono, Sihanouk's statement was an attempt to defuse the tension between Ranariddh and Hun Sen. Hun Sen rejected the king's conciliatory overtures, and responded by publishing several public letters attacking Sihanouk, Ranariddh and FUNCINPEC.
Conflict escalation and military clashes In August 1996, Khmer Rouge leaders
Pol Pot and
Ieng Sary publicly split, with the former denouncing the latter in a radio broadcast. Ieng Sary responded by disassociating himself from the Khmer Rouge and went on to form his own political party, the
Democratic National Union Movement. This prompted Ranariddh and Hun Sen to briefly set their political differences aside to jointly seek a royal pardon for Ieng Sary, who had been sentenced to death by the
People's Republic of Kampuchea (PRK) government in 1979. In September 1996 Ariston Berhad signed three agreements with CPP's minister
Sok An, without Ranariddh's knowledge or that of other FUNCINPEC ministers. The agreements provided for the leasing of land to Ariston to develop a golf course, holiday resort and an airport in Sihanoukville. These actions angered Ranariddh, who in a February 1997 letter to Ariston's president Chen Lip Keong, declared the agreements null and void. Subsequently, Ariston claimed that they had tried unsuccessfully to contact FUNCINPEC officials, with a view to getting them to jointly sign the agreements. Hun Sen was offended by Ranariddh's actions, and in April 1997 wrote to Mahathir assuring him of the validity of the agreements. Ranariddh forged a political coalition by bringing FUNCINPEC to work together with the KNP, the
Buddhist Liberal Democratic Party and the Khmer Neutral Party. On 27 January 1997, the four political parties formalised their alliance, which became known as the "National United Front" (NUF). Ranariddh was nominated as the president of the NUF, and stated his intent to lead the alliance against the CPP, in the general elections scheduled to be held in 1998. The CPP issued a statement condemning NUF's formation, and formed a rival coalition consisting of political parties ideologically aligned to the former
Khmer Republic. Meanwhile, Ranariddh stepped up his attacks against Hun Sen, accusing him of harbouring plans to restore a Communist regime should the CPP win the next general election. At the same time Ranariddh attempted to persuade moderate leaders of the Khmer Rouge, including
Khieu Samphan and Tep Kunnal, to join the NUF. Five days later, customs officials at Sihanoukville discovered a three-ton shipment of rocket launchers, assault rifles and handguns, labelled "spare parts" and consigned to Ranariddh. The rocket launchers were seized by
Cambodian Air Force officers aligned to the CPP, while
Royal Cambodian Armed Forces (RCAF) officials aligned to FUNCINPEC were allowed to keep the light weapons. In mid-June, Khmer Rouge radio, controlled by Khieu Samphan, broadcast a speech praising the KNSP-NUF alliance and calling for an armed struggle against Hun Sen. Fighting subsequently broke out between Ranariddh's and Hun Sen's bodyguards. On 3 July 1997, while travelling to Phnom Penh, Ranariddh encountered troops aligned to the CPP. These troops persuaded his bodyguards to surrender their weapons, On 5 July, fighting broke out between RCAF troops separately aligned to CPP and FUNCINPEC, after CPP-aligned generals unsuccessfully attempted to coax FUNCINPEC-aligned troops into surrendering their weapons. The FUNCINPEC-aligned units suffered major casualties the following day, and subsequently fled from Phnom Penh to the border town of
O Smach in Oddar Meanchey Province. ==Continued leadership in FUNCINPEC (1997–2006)==