BHUTAN: The King of Shangri-La

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Looming across the Himalayas from Bhutan is the threat of China, which claims some of the small (18,000 sq. mi.) kingdom. It was because of the Chinese shadow, in fact, that the King's father began to modernize Bhutan and bring it closer to India, which advises the tiny country on its foreign affairs and trains its army. Roads to India's West Bengal State were carved through mountains and jungles, and in 1968 the first airstrip was laid down, a step that immediately cut travel time from West Bengal to Bhutan from five dangerous and uncomfortable days to 30 minutes. The late King also freed some 5,000 slaves in 1956 and built schools and hospitals for his people.

Like the fictional inhabitants of Shangri-La, the Bhutanese believe in moderation in all things. Almost everyone, from the King himself to the peasants who farm the gentle, terraced hillsides, seems content with Bhutan as it is now, 95% medieval and 5% modern. In an effort to boost the economy and make life a little more comfortable, however, the government is planning to let in its first tourists—in moderation of course. Up to now, Bhutan's chief money earner abroad has been the sale of its colorful postage stamps, some of which are miniature LPs with the Bhutanese national anthem recorded on them.

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