ULAN BATOR Mongolia has been called "one of the last unspoiled travel destinations in Asia," and, indeed, the traveler feels not only in another country but in another century.

Three times the size of France, twice that of Texas, Mongolia lies between China and Russia, traditionally an uncomfortable position, subjected as it is to the blandishments and deprivations of both. This was not always so. In the 12th-century the Mongol empire extended to Moscow and Baghdad, to Lhasa, to Korea -- and all the land in between.

In modern times, however, Mongolia was until recently under the suzerainty of the Soviet Union. Now it fears a Chinese economic and political influence that could prove overwhelming. Already Mongolia's cashmere industry has been much damaged by Chinese traders, and last year China accounted for over a third of Mongolian direct investment. In addition, China is quick to offer door-opening aid. Signs at bridges and along roads indicate that the funds came from elsewhere -- China, Japan, Korea. This may make urban Mongolia appear pleasantly international but it also indicates the coming danger of development.