After taking power in a bloodless coup in September 2006, Thailand's generals understood their top priority: giving themselves a fat raise. The military budget has increased 66 percent since the overthrow of the civilian government, and it is expected to grow to nearly $5 billion in 2008. The junta's leaders claim they're simply replacing much-needed weaponry and invigorating the fight against Muslim separatists in the south. But the spending spree includes a Russian submarine, Chinese surface-to-surface missiles, and $1 billion for a dozen Swedish-made jet fighters--hardly the tools for quelling a domestic insurgency, say military analysts. And in a July editorial, the Bangkok Post noted "strong suspicion across the country that the generals are padding the military budget for no other reason than because they can."

Although Thailand has long been an important U.S. ally, the Thai military brass are apparently happy to listen to anyone who will write a check. China was the first country to recognize the new post-coup government, and it quickly provided $40 million in military aid and training for Thai officers in China. Relations between Bangkok and Beijing have rarely been more cozy. And though the Thai generals said they were only taking over to safeguard democracy, their biggest accomplishment so far seems to be padding their own wallets.

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