BurmaNet News: October 28, 2003

[editor at burmanet.org]

October 28, 2003 Issue #2356

INSIDE BURMA
AP: NLD urges Myanmar junta to allow reopening of offices

ON THE BORDER
NMG: Some Refugees go back to Burma as the new relocation site seems insecure

DRUGS
SHAN: Junta tenets obstacle to making headway

BUSINESS / MONEY
AP: Myanmar's foreign trade drops nearly 7 percent
Nation: 4-country trading bloc planned
Xinhua: Thailand to slash import tax for neighboring countries
MT: Burmese Business Group Signs Trade Accord With Chinese City

REGIONAL
Xinhua: Thai generals to visit Myanmar
New Straits Times: Myanmar man acquitted of murder charge

INTERNATIONAL
AFP: US mulls new sanctions against Myanmar, says others should follow suit
Irrawaddy: US Military Won’t Invade Burma


----INSIDE BURMA----

AP News   27 October 2003
NLD urges Myanmar junta to allow reopening of offices

YANGON: The opposition National League for Democracy (NLD) has urged
Myanmar’s military junta to let it reopen its offices, closed after the
detention of party leader Aung San Suu Kyi nearly five months ago.

Branch office chiefs are sending petitions to the Election Commission,
said Myint Aye, chairman of Kyimyindine township branch, the first to send
a letter on Wednesday.

Chairmen of other branches will send letters separately, he told The
Associated Press Friday.

“We strongly believe that due to the prevailing political situation it is
time NLD offices should be reopened to carry out political activities,”
Myint Aye said.

Authorities closed NLD offices across the country a day after Suu Kyi was
detained following a clash between her supporters and pro-junta mob on May
30 in northern Myanmar during a political tour.

The government has not said when the offices will reopen.


----ON THE BORDER----

Network Media Group   October 21, 2003
Some Refugees go back to Burma as the new relocation site seems insecure

Some ethnic Karen refugees from Mae-khong-khar camp are going back into
Burma for security reason as the government troops stations at Bawy Baw
Lu, the new site for relocation which is situated just opposite to former
strong-hold of KNU Headquarters, Manaeplaw, some refugees from camp said.

Although there was no detail number of refugees who returned to Burma, a
number refugees are returning back into Burma, said the refugees.

"I don't know exactly how many refugees returned to Burma. I saw Thai
border security guards and Thai villagers. The refugees leave the camp
only at night time to hide in darkness. When we hear dog barks, we could
see refugees are leaving the camp along with their belongings and their
children.

These refugees told me that they used to live Bway-Baw-Lu and left there
because it was not a safe place. As authorities are forcing us to relocate
Bway-Baw-Lu we have no option but to go back to Burma," one of the
remaining refugees from the camp said.

Refugees are still worrying about recent attacks by government and DKBA
troops to their camp and rising fear of their new camp might be attacked
again.

As monsoon already ended, the Thaung-Yin river can no longer be barrier
between new camp and Manaeplaw, the government troops can easily cross the
river and may attack the new camp. Though Thai authorities says no need to
panic on attack of Burmese army, the refugees in the new camp are not
relying on it.

One refugee said "When DKBA attacked Mae-La-Mu, they (Thai border security
guards) also had to run away in fear along with refugees. In reality, they
could not protect and don't want to die for us because they are Thai."

While some refugees are returning Burma, remainders amidst their worries,
are waiting to relocate new camp by arrangement of Thai authorities.

On 5 October, Thai authorities issued an order to relocate Mae-Khong-Khar
refugee camp to Bway-Baw-Lu.

New location of Bway-Baw-Lu refugee camp situates four kilometera away
from former stronghold of KNU Headquarters, Manaeplaw on Thai-Burma
border, where Burmese troops are stationed.


----DRUGS----

Shan Herald Agency for News   October 28, 2003
Junta tenets obstacle to making headway

A three-decade long watcher of Burma recently told S.H.A.N. Rangoon's main
obstruction to winning the war on drugs was its own cynical philosophy.

Speaking on the resolution of the Central Committee for Drug Abuse Control
on 7 October that called for significant reduction and termination of
opium output in the present growing season and effective punishment for
officials who failed in their tasks, the officer said it meant nothing in
practice. "Perhaps more TV coverage and more inflation of figures," said
the 54-year old 'spook'.

He pointed to a copy of a dispatch from Military Intelligence Detachment
#2 based in Taunggyi to its branch office in Hsihseng, 34 miles south, on
9 October, two days after the resolution was reached.

The commander of the Military Intelligence Battalion #4, it said, had
found out that their office was in a shambles: no update report for the
visiting commander, no receipt or issue register of its correspondence, no
systematic records of its radio and telephone communications and no maps
to show the latest situation in the area.

According to the letter, the branch officers were neglecting their
principal duties due to their 'cherished interest in illegal business
activities' and demanded a prompt explanation.

"Hsihseng is a township known for extensive poppy cultivation and for the
existence of at least 3 heroin refineries, one of which was raided as a
result of complaints from foreign sources," he explained. "But these
officers were only reprimanded for not keeping their office in ship-shape
rather than explicitly forbidding them from continuing their involvement
in illegal businesses."

This latest incident, only one of several similar events in the past,
served to illustrate the existing system's basic operating philosophy: Do
what is necessary to support oneself but always maintain a correct form at
all times, he said.

He gave another example reported by S.H.A.N. earlier (License to raise
poppies, S.H.A.N., 9 October 2003):

A Burmese commander, Captain Maung Maung Nyo of Infantry Battalion #277,
at a meeting with villagers of Hpakhay in Mongton township, had encouraged
his audience to grow poppies "away from the public thoroughfare", offering
those that did not have capital 15,000 kyat per family. When the villagers
expressed their concern about the annual destruction of poppy fields, he
comforted them by saying they needed to set up a common poppy field for
the purpose. "When the slashing team comes, I'll just direct them to this
field," he was reported to have said, "and everyone will go home happy."

"The reason," he reasoned, "is the junta is caught between maintaining a
good image and running an army it can barely manage to provide for."

He was optimistic. "In the end, one way or the other, Rangoon is going to
make a big slip that will show everyone for what it really is."


----BUSINESS / MONEY----

Associated Press   October 28, 2003
Myanmar's foreign trade drops nearly 7 percent

Myanmar's foreign trade fell to US$2.14 billion in the first six months of
the current fiscal year, a 6.7 percent drop over the previous year, a
semiofficial report said Tuesday.

The country's foreign trade in the first six months of the last fiscal
year - April 1, 2002 to Sept. 30, 2002 - was US$2.290 billion.

The decline in trade was largely due to falling exports in mine products,
gas, agriculture and fisheries, said a weekly report by the Business
Information Group, a semi-government organization.

It was not clear how much of the drop was the result of economic sanctions
imposed on Myanmar by the United States to pressure the military
government to release pro-democracy leader Aung San Suu Kyi - the 1991
Nobel Peace Prize winner who has been in detention for much of this year.

The United States has banned Myanmar imports and U.S. dollar remittances
to the country and frozen the assets of Myanmar officials.

Business transactions including import and export is now conducted in
euro, Japanese yen and the Singapore dollar.

The Business Information Group said exports for the April 1-Sept. 30, 2003
period totaled US$1.06 billion, compared to US$1.32 billion, down 19
percent from the same period last fiscal year.

However, imports increased 10.3 percent in the first six months, rising to
US$1.07 billion from US$969.8 million in the last fiscal year.Most of
Myanmar's imports come from Singapore.

The decline in exports is mainly due to decrease in mines export which
went down to US$321 million in first six months compare to US$524 million
during the same period last fiscal year, showing a 38 percent drop, the
report said.

Gas export to Thailand dropped from US$482 million in the first half of
fiscal year 2002-2003 to US$296.8 million in the same period this fiscal
year.

Myanmar's other top export earners such as agriculture and fisheries also
registered a decrease with agricultural sector dropping 16 percent to
US$206 million and fisheries sector 6 percent to US$73 million, compare to
same period last year.


The Nation   October 28, 2003
4-country trading bloc planned

Thailand, Burma, Cambodia and Laos are planning to form an Economic
Cooperation Strategy (ECS) trading bloc, within which import taxes on raw
materials and goods will be reduced to zero.

The Commerce Ministry yesterday hosted the first meeting of ECS trade
ministers in Bangkok to prepare agenda items for the four countries'
leaders summit, which will be held in Bagan, Burma, on November 11-12.

Initiated by Prime Minister Thaksin Shinawatra, the ECS is aimed at
pulling Thailand's neighbours - Laos, Cambodia and Burma - out of poverty
and solving economic and political problems in border areas.

ECS chairman Commerce Minister Adisai Bodharamik said important points to
be forwarded to the leaders next month include how to strengthen border
trade among the four countries.

Cham Prasidh of Cambodia, Soulivong Daravong of Laos and Pyi Sone of Burma
also attended yesterday's meeting of commerce ministers.

'Intra-group trade is low, so we have to focus on increasing trade between
members,' Adisai said.

Last year, Thailand's total trade volume with Cambodia was US$527.4
million (Bt21 billion). Trade with Laos totalled $490.6 million and trade
with Burma stood at $1.23 billion.

Thailand enjoyed a trade surplus with all countries except Burma, with
which Thailand has a gas purchase agreement.

As the strongest economy in the group, Thailand has the potential to
become the production base of the ECS grouping by drawing on cheap raw
materials from the other three members. The resultant products will not
only be sold within the group, but also exported to other markets.

Adisai said Thailand has granted tax privileges at zero to 5 per cent on
import tariffs to Cambodia, Laos and Burma, under the Asean Integration
System Preferences (AISP).

So far, 48 products from Cambodia, 26 from Laos and 72 products from Burma
receive low import-tax privileges from Thailand.

The Commerce Ministry said Cambodia, Laos and Burma have proposed that
Thailand extend the product list in its annual review of special tax
privileges. Cambodia has proposed 249 additional products, Laos has
submitted requests for 150 products and Burma has forwarded between 300
and 400 items.

Adisai pointed out that the private sectors of the four countries would
play a key role in driving the ECS. Members should each set up an ECS
Business Council in their countries to facilitate communications, he said.

Cambodia, Laos and Burma have also asked Thailand to provide loans for
infrastructure development projects, which they say is a key factor to
creating a freer flow of trade.

Burma has proposed a 'four-countries, one-designation' programme to boost
tourism in the region and has called on Thailand to help develop a
deep-sea port at Tavoy. Laos has suggested that Thailand invest more in
the countries to help develop production sectors, particularly agriculture
through contract-farming deals.

Cambodia has recommended setting up export-processing zone (EPZ) in member
countries to facilitate exports. Thailand suggested that EPZs should be
formed by groups of 10 to15 companies rather than as a large state-funded
project.

'EPZs will create mutual benefits for the group because Cambodia, Laos,
and Burma as least developing countries will enjoy zero-tax preferences
and free export quotas. Thailand will help them develop products and enjoy
more benefits from their privileges,' Adisai said.


Xinhua General News Service   October 28, 2003
Thailand to slash import tax for neighboring countries

Thailand is poised to slash import taxes on agricultural goods and raw
materials from Laos, Cambodia and Myanmar in a bit to stimulate trade and
investment, Thai News Agency reported Tuesday.

Speaking after a meeting with government ministers from Myanmar, Laos,
Cambodia and Thailand to determine a unified approach to sub-regional
trade, Thai Commerce Minister Adisai Bodharamik said that the import tax
reductions would see tariffs cut to 0-5 percent.

The new measures will see the number of Cambodian import items subject to
the reduced tariffs rise from 48 to 249, while the number from Laos will
rise from 26 to 150 and the number from Myanmar from 72 to between 300 and
400, Adisai said.

Import quotas for the three countries will also be increased, subject to
cabinet approval at the end of this year, he said.

The meeting also proposed that the private sectors of all four countries
cooperate in the establishment of a business council, while each nation
will be encouraged to set up export industrial estates.

Adisai said that the ministers of all three neighboring countries had
requested that Thailand provide financial support for infrastructure
development in order to attract more foreign investment.

All these proposals will be proposed to the leaders of the four nations
during a sub-regional leadership meeting on Nov. 11-12 in the Myanmar
capital of Yangon, the report said.

The four ministers met here Monday to seek ways to address obstacles to
sub-regional trade.


The Myanmar Times    October 28, 2003
Burmese Business Group Signs Trade Accord With Chinese City

A Myanmar (Burma) private sector group and a municipality in China's
Yunnan Province have signed a far-reaching Memorandum of Understanding
(MoU) that paves the way for an increase in border trade.

The MoU, signed in the Chinese border city of Ruili on 18 October,
contains provisions aimed at encouraging expanded trade in construction
materials and agricultural and forestry products.

It was signed by the secretary of the Ruili City Committee, Mr He Fang
(name as received), and the president of the National Development Company
Group (NDCG), U Khin Shwe.

U Khin Shwe said the NDCG, which represents about 40 companies involved
mainly in the engineering, construction and import-export sectors, had
been given government approval to negotiate the MoU.

U Khin Shwe, who is also president of the Myanmar Construction
Entrepreneurs Association, said agreements in the MoU would begin being
implemented in November.

"We will begin importing construction materials as a first priority
because there are 21 high-rise buildings under construction in Yangon
(Rangoon), and these materials are needed so the buildings can be
finished," U Khin Shwe said.

The MoU also provides for China to import minerals, and forest, marine and
agricultural products.

Both sides agreed that Myanmar needs to improve its infrastructure and
procedures to enable border trade to be expanded.

"There are four inspection points on the Myanmar side of the border, which
is too many," U Soe Myint, a director of the NDCG, told Myanmar Times in
Ruili.

Border trade with China accounts for 72 per cent of Myanmar's total border
trade, which also involves Thailand, India and Bangladesh.

During the 2002-2003 financial year, border trade between Myanmar and
China was valued at 331.7m US dollars, up 20 per cent on the previous 12
months.


----REGIONAL----

Xinhua General News Service   October 28, 2003
Thai generals to visit Myanmar

Some 50 Thai generals holding inactive posts would pay a visit to Myanmar
to get known their counterpart.

The tour started on Tuesday would end on Thursday. During this period, a
group of major generals, lieutenant generals and full generals holding
advisory and specialist posts would visit the Myanmar capital Yangon.

This was the largest ever official foreign trips involving with generals,
army advisory chairman General Vichit Yathip was quoted by Bangkok Post as
saying.

However, no serious talks were planned for the trip. The Thai generals
would devote most of their time to sightseeing and getting known of
Myanmar's top brass.

The tour was expected to forge closer military ties between the tow
countries while bilateral relations were cordial now, said Vichit, who
would lead the group when in Myanmar.

He also said that Thai Prime Minister Thaksin Shinawatra would pay a visit
to Myanmar in November to meet his Myanmar counterpart Khin Nyunt to
follow up on progress on cooperation against drug problems.

In late August, Thailand and Myanmar agreed to exchange visit of warships.
Two ships of Thailand's Third Fleet, would first visit Rangoon in
December, while the two from Myanmar would pay a return visit early next
year.

The two sides also agreed on a common international code of conduct for
sea patrols to prevent future misunderstanding and incursions into
territorial waters.

Besides, the two countries agreed to establish a communication system
sharing by the Thai and Myanmar military units along the land border so as
to decrease misunderstanding and border clashes.


New Straits Times   October 28, 2003
Myanmar man acquitted of murder charge

The High Court today acquitted a Myanmar national without calling for his
defence on a charge of murdering a Thai national.

Judicial Commissioner Datuk Balia Yusof Wahi said the prosecution had
failed to establish a prima facie case against Moung Than Aye, 28, a
trawler crew.

Moung was charged with murdering Thong Kham Buanlu, 27, also a trawler
crew, at 237, Batu 12, Jalan Besar in Hutan Melintang in the Hilir Perak
district between 11pm on April 20 last year and 1am the following day.

Balia said he agreed with counsel Kerpal Singh's submission that the
prosecution had failed to establish the ingredients of the murder charge.

He said the only tenable piece of evidence in the prosecution's case was
the statement by the investigation officer who said the police team
arriving at the crime scene spotted the accused with a knife in his hand.

"But this is not enough. The prosecution has failed to adduce any
substantial evidence to link the accused with the crime he is charged
with," Balia said.

Earlier, Kerpal, who took about one minute to submit, said the knife
seized by the police was sent to the Chemistry Department, which in its
report said no trace of blood was found on the weapon.


----INTERNATIONAL----

Agence France-Presse   October 28, 2003
US mulls new sanctions against Myanmar, says others should follow suit

The United States Monday vowed to keep in place tough new economic
sanctions against Myanmar and said it would consider additional penalties
against its military leaders if human rights and other conditions did not
improve.

At the same time, however, the State Department said it could not yet
determine whether the sanctions were working although it stressed that
they were making an impact on the country's already fragile economy.

In its biannual report on the situation in Myanmar (Burma), the department
said Washington would continue to lobby other governments to impose
similar sanctions on Yangon in a bid to force the junta to release
detained opposition leader Aung San Suu Kyi and restore democracy.

The report notes significant deterioration in conditions in Myanmar over
the period it covers -- March 28 through September 27 -- particularly the
May 30 attack on Aung San Suu Kyi's convoy and her subsequent detention by
the State Peace and Development Council.

In response, US President George W. Bush in August imposed sweeping trade
and travel sanctions against Myanmar, its leaders and their families and
the department said those penalties would remain until the junta reverses
course.

"These sanctions will be maintained until there is significant progress
toward political transition or until a democratically elected government
in Burma requests that they be lifted," it said.

"Should the (junta) fail to release political prisoners or improve its
abysmal human rights record, and should the junta further inhibit a
meaningful political dialogue with the NLD and other political parties,
including ethnic minority groups, the US will consider additional measures
in conjunction with the international community," it said.

The NLD, or National League for Democracy, is Aung San Suu Kyi's political
party, which won a landslide victory in 1990 elections that the military
regime has refused to recognize.

"The immediate US policy objective in Burma is to secure the release of
Aung San Suu Kyi and encourage a genuine dialogue on democratic political
reform, including the re-opening of all NLD offices," the department said.

"The United States will also use sanctions to press the government and
will continue to urge others to do the same, particularly the European
Union, Canada, Australia, Japan, and other key countries throughout Asia."

Despite the US push, made most recently in Bangkok by Bush and Secretary
of State Colin Powell at last week's Asia-Pacific Economic Cooperation
forum, the department noted that few other countries had imposed such
drastic sanctions.

"Other governments have not generally been willing to initiate similar
measures," it said, adding that some had told US officials that they
"believe sanctions are counterproductive, causing the population to suffer
but not influencing the junta in the right direction."

The United States differs sharply with Myanmar's neighbors in the
Association of Southeast Asian Nations and earlier this month rejected an
ASEAN leaders' statement that noted "positive developments" there.

In Monday's report, the department insisted again that ASEAN must address
the situation in Myanmar.

"It is in the interest of Burmas neighbors and other ASEAN countries, and
in the interest of regional stability, to press the SPDC for a more
constructive position on political dialogue, economic reform and the
institution of rule of law," it said.

But it also allowed that it was not yet clear whether the new US sanctions
-- which include a blanket trade ban, a bar on new investment in Myanmar
and a prohibition on financial services -- were having the desired effect.

"We are not in a position to judge whether they have served to increase
the pressure on the government to change its basic policies," it said,
adding that the sanctions "have had some unexpected effects."

One of those was the loss of from 30,000 to 40,000 jobs in the garment
sector -- positions mainly filled by young women, some of whom have
reportedly been forced to enter the sex trade, according to the report.

"We have started to receive credible reports of such displacement," the
department said.

It said the United States would again seek to co-sponsor resolutions
condemning the Myanmar junta's conduct at the United Nations General
Assembly this year and at next year's meeting of the UN Commission on
Human Rights.

The report also said Myanmar had made little progress in combatting
illicit narcotics production and in eliminating forced labor.


The Irrawaddy   October 28, 2003
US Military Won’t Invade Burma
By Aung Su Shin/Mae Sot

Washington has no plans for military intervention in Burma, the US
Ambassador to Thailand said yesterday.

"We have stated that we are for political dialogue, and we hope the
current leadership will engage in political dialogue and bring about
political change," said Darryl Johnson, the US Ambassador to Thailand.
Military intervention "has never been entertained by American government,"
he added. "We don’t do that."

The Burmese junta has been providing military training to civil service
personnel and members of the pro-junta Union Solidarity and Development
Association, ostensibly to protect Burmese from an invasion by foreign
troops.

The ambassador spoke to reporters after meeting with the Tak Provincial
governor and provincial officials yesterday. The meeting focused on how
American sanctions on Burma are affecting the Thai-Burma border area.
Johnson also met Mae Sot authorities and local business leaders this
morning.

At today’s meeting, Paniti Tanpati, former chairman of the Tak Province
Chamber of Commerce, outlined a plan by Thai business owners to open
factories in Mon and Karen states to create jobs for Burmese who may
otherwise enter Thailand seeking work.

Johnson said the US recognized the discomfort felt by some Burmese as a
result of sanctions. "But the main discomfort is caused by the
mismanagement of the current [Burmese] leadership," he said.

Sanctions seek to force the regime to deal with the opposition in
constructive way, said Johnson.

If reconciliation is to succeed, it must be preceded by the release of
Aung San Suu Kyi, said the ambassador. He criticized the "road map"
proposal forwarded by Burmese Prime Minister Gen Khin Nyunt, which does
not mention the opposition leader.