The Battle of Banam was the most significant engagement in the world-renowned Ban Chai Campaign in Southeast Asian military history. This battle not only annihilated the majority of the French 7th Division and captured its commander, Colonel Dohas, but also captured a large quantity of weapons and ammunition, including seven American 7mm howitzers, 155 tanks and armored vehicles, and a vast array of other weaponry. This enabled the People's Army's 17st Corps to undergo a major upgrade, bringing its equipment up to par with the French. Furthermore, through large-scale mobile warfare, the unit's combat effectiveness saw a qualitative leap. The People's Army integrated the captured French mechanized equipment into the 1th Detachment, the first mechanized unit, which became the largest offensive force in the capture of Ban Chai.

In the end, Charles de Gaulle was picked up by an Army Air Force plane at the risk of his life. The governor ordered that Charles de Gaulle must be picked up. If he was captured or killed in battle, it would cause a huge shock in French politics.

Three days later, the besieged defenders of Ban Chai were forced to surrender in the face of the overwhelmingly superior People's Army. The victory at Ban Chai marked a turning point in French Indochina's anti-colonial war for national independence. The People's Army not only established a foothold in eastern Cambodia but also rapidly expanded.

In northern Cambodia, the Cambodian guerrillas also took this opportunity to launch a large-scale operation. They quickly captured areas such as Kampong Thom, transforming the guerrilla zone into a liberated zone. The Chinese special column commanded by Liu Xiao (No. 7) crossed the sea and appeared in areas such as Koh Kong, Kampot, and Kampong Speu in southern Cambodia, throwing the French colonial rule in Cambodia into chaos. The French army had to retreat to the Mekong River area, mainly in Phnom Penh, and relied on the cover of riverside ships.

A month later, the National Liberation Front of South Vietnam held a central meeting and elected Ngo Nguyen Gia as a five-member executive committee member, marking the official start of the Ngo Nguyen Gia era for the South Vietnamese People's Army. Ngo Nguyen Gia's first major act was to declare that, to reflect the unique character of South Vietnam's anti-colonial war for independence, the South Vietnamese People's Army and the people would abandon the French-Latin alphabet and restore traditional Chinese characters.

That same month, Wu Yuanjia officially signed an order reorganizing the People's Army. While retaining some Soviet political guidance, the troops were reorganized into a regularized People's Army. The 101st, 103rd, and 211th Divisions (mainly expanded from the 211th Mechanized Detachment) of the People's Army in the eastern Cambodia base area formed the First Army, while the 102nd, 107th, and 111th Divisions formed the Second Army. The 108th and 110th Divisions, operating in the Saigon area, formed the Third Army, while the 104th, 105th, and 106th Divisions, operating in Tay Ninh, Binh Phuoc, and other areas, formed the Fourth Army. The 4th and 109th Divisions were directly under the command of the Central Committee of the Liberation Front. Meanwhile, the 112th and 212th Divisions, formed by the guerrilla forces in the eastern Cambodia base area, became independent divisions of the eastern Cambodia base area.

In December 1948, the People's Army concentrated three armies and launched another major battle on the border between Cambodia and South Vietnam. Ultimately, the French army was defeated again, with over 12 men of the 15th Army annihilated. The French army was forced to abandon most rural areas and retreat to major cities and ports such as Saigon. That same month, the French troops in Phnom Penh moved south along the Mekong River and evacuated Cambodia, marking the complete liberation of Cambodia.

In an office in the old government building in Phnom Penh, Qin Shi, who had hurried over, met secretly with Liu Molong and others. Qin Shi was currently the director and CEO of Pan Asia Financial Group. His background was primarily in the British aristocratic consortium, led by Prince Edward. Of course, since many of the national independence movements in Southeast Asia were inextricably linked to him, he had to come secretly to discuss the future of these regions. First, he wanted to introduce his successor, Liu Molong, to the key leaders. At the same time, he and the others would work together to set new goals for the future of Cambodia, South Vietnam, and other regions.

Dozens of representatives from various factions arrived secretly. Representatives of the Cambodian National Liberation Army (guerrillas)—the DK—were clearly displeased with Chinese participation in Cambodia's independence struggle. However, the forces represented by the nominal Prime Minister of the Kingdom of Cambodia hoped for Chinese intervention to constrain the DK and maintain the Kingdom's legal rule. Liu Xiao, already designated as the chairman of the Singapore Chinese Autonomous Government, was unable to attend the meeting. Qin Shi arranged for Du Yiping to be promoted to commander of the Cambodian Chinese Self-Defense Force. He attended the meeting.

Qin Shi held immense prestige in Southeast Asia, as the major military factions of all factions and ethnic groups, regardless of their ethnicity, had received varying degrees of support and development from the former Burmese Independence Guerrilla Army. After the disbanding of the 166th Army, these ethnic resistance forces returned to their own ethnic groups, becoming the core of local armed forces. Therefore, even though the DK strongly opposed Chinese involvement in Cambodian affairs, they were forced to come to Phnom Penh and accept Qin Shi's mediation.

After more than ten days of discussion, the outlines for Cambodia's future were finalized. The kingdom would remain the main body of the state, but the king would be merely a symbol of the state, and the government would be composed of multiple factions. The Chinese Self-Defense Force, led by Du Yiping, was incorporated into the government army, responsible for administering the Koh Kong and Kampot regions south of Phnom Penh. The DK also assumed leadership of several areas in northern Cambodia. The coalition government ultimately elected the current prime minister to continue as head of government, but the key position of the Ministry of National Defense was divided between the DK and other military factions.

Cambodia effectively entered a period of warlord rule. In response to the situation, Wu Yuanjia received a hint to find a Cambodian representative in East Cambodia. In reality, the People's Army completely controlled the region.

The changes in French Indochina affected other parts of Southeast Asia. In northern Myanmar, the ethnic autonomous regions had the secret support of the flower planters, and the Myanmar government was helpless. The British were now unable to cope with the wave of independence in India, and completely left colonies such as Myanmar and Malaysia to the local people. The Governor-General of Myanmar, like the Governor-General of Malaysia, was a local. Everyone understood that this was a compromising transition.

After Liu Xiao reached an agreement with the Malay Governor, he began mobilizing Chinese residents in Penang and other areas to migrate to Malacca and Singapore. Some unwilling Chinese, after receiving promises from the Malays, became Malay citizens. Similarly, some Malays in the areas surrounding Malacca and Singapore who were reluctant to leave were also promised Chinese self-government. Thus, the partition of West Malaysia was secretly completed.

On March 1949, 3, the South China Autonomous Government, under the supervision of international organizations, held a referendum for independence, successfully breaking away from the British Malay colonial government and achieving true independence. On May 18, Luo Bing was sworn in as president in the new capital, South State (Kota Kinabalu).

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