Mandalay, the former royal capital of Myanmar (formerly Burma), is with around 800,000 inhabitants (2000) the second largest town in the country after Rangoon. It was founded on a hill near the Ayeyarwady (Irrawaddy) river following a prophecy in 1857 and planned with a rectangular grid. A very prominent feature in the layout of the city is the square shape of the Palace, which is surrounded by a wall and moat. Today Mandalay is a cultural and religious centre of Buddhism, as well as famous also for its artwork in jade, silk and silver.

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