Oh yeah. That was somewhere in Central America (as Metropolis or Gotham is to New York, this country was to Nicaragua), not Cambodia. I actually posted a couple of scans from that issue myself. (They're the third and fourth ones down.) But that was way before Armageddon 2001, and I don't read that story as causing Cap to lose his faith in humanity, nor to incline him to become Monarch. Just the opposite, in fact; he learned that for all his power, he couldn't solve the world's problems, and he had to let people work things out for themselves. That hardly seems to me as though it would incline him toward taking over the world. That's just my reading, though.

Incidentally, it's great talking to another Cap fan, and I have the whole series, so if there are any scans you'd like me to post, please feel free to ask.