BurmaNet News, Feb 14 - 17, 2004

[editor at burmanet.org]

Feb 14 - 17, 2004 Issue # 2423


INSIDE BURMA
Irrawaddy: Thirty-Seven Killed At Sea
Irrawaddy: Karenni to Hold Ceasefire Talks
DVB: KNPP views on current situation in Burma
Xinhua: Myanmar steps up fight against 3 communicable diseases
AP: Myanmar opposition figure Tin Oo moved from prison to house arrest
BBC Monitor: Burmese opposition group proposes assembly to solve ethnic
issues
BBC Monitor: Seven members of Burmese opposition group arrested

BUSINESS / MONEY
FT: Burma's rice policy chaos sows economic seeds of doubt
Nation: Pinij leads mission to Burma
AFX: Indonesia's Japfa Comfeed may relocate ops to Vietnam, Myanmar
Xinhua: Mekong's road project to provide regional economic opportunities

REGIONAL
BBC Monitor: Malaysia, Burma to set up joint commission to strengthen
bilateral ties

OPINION / OTHER
Nation: Allies against drugs, but only in name
Asia Tribune: Cheers, jeers over giant gas find



INSIDE BURMA
___________________________________

Feb 17, Irrawaddy
Thirty-Seven Killed At Sea - by Naw Seng

A boat accident near the Mergui Archipelago in southern Burma killed 37
passengers early yesterday morning. The boat was en route to a Salone, or
sea gypsy, festival organized by Burma’s tourism authority.

The boat sank in an undisclosed location in the Andaman Sea near Lampi
Island, about 400 miles southeast of Rangoon. It departed from Bokpyin, a
mainland town in Tenasserim Division inhabited by Burmese.

U Shein, a Burmese villager from Bokpyin, told The Irrawaddy via mobile
telephone that nine of the 46 people on board the sunken vessel were
rescued. The rest are missing and assumed dead. He said the majority of
the passengers were women and children.

The Salone Festival began on Feb 14 and closed today. It was held at
Makyone Galet village on Bocho Island, near the accident site.

Mergui Archipelago is comprised of over 800 islands inhabited only by
Salone, or sea gypsies. The residents live on boats during dry season and
remain on land during rainy season. Salone practice centuries-old fishing
and boat building techniques and live only along Burma’s Andaman coast.

Sea gypsies were rounded up by Burmese soldiers who forced them to perform
for tourists, said U Shein.

Burma’s Hotels and Tourism Ministry and local tour companies, including
Shambhala Tours Co, Ltd, organized the festival, which aimed to attract
international tourists and operators of marine eco-tourism trips to the
Mergui Archipelago. A staff member of Shambhala Tours said it brought 83
foreigners to the festival via Rangoon and Ranong, a Thai town near the
Burma border.

Sea gypsies were rounded up and detained on designated islands by Burmese
soldiers who forced them to perform for tourists, said U Shein. Burmese
from elsewhere on the Andaman Coast, such as those killed in the boating
accident, were told by authorities to attend the festival to bolster
audience numbers, he added.

Over 250 Burmese and foreigners were aboard a Chindwin cruise liner, which
visited the festival on Feb 14 as part of a tourism promotion by the
Hotels and Tourism Ministry, according to the state-run newspaper The New
Light of Myanmar.
____________________________

Feb 16, Irrawaddy
Karenni to Hold Ceasefire Talks - by Shah Paung

Leaders from the Karenni National Progressive Party, or KNPP, will travel
to Rangoon soon for ceasefire talks with Burma’s military rulers, said
Raymond Htoo, the group’s general secretary.

The KNPP decided to begin ceasefire talks after two days of meetings at
their headquarters in Thailand’s Mae Hong Son Province on Friday and
Saturday, said Raymond Htoo.

The Kayah (Karenni) State Peace Organization will make the travel and
meeting arrangements, added Raymond Htoo. A representative of the Kayah
State Peace Organization invited the KNPP for ceasefire negotiations on
behalf of the ruling junta on December 26.

The KNPP agreed to a ceasefire with the Burmese military in March 1995 but
fighting resumed three months later.

Raymond Htoo said the KNPP would also discuss the issues of refugees and
disputed territory with the ruling junta.

There are 21,902 residents of a Karenni refugee camp in Mae Hong Son,
according to a secretary from the Karenni Refugee Committee. About 1,500
are not registered with the UN High Commissioner for Refugees.

A camp resident reached by telephone said she longs for peace and would
like to return to her home, but is skeptical that the junta would keep its
end of any agreement.
____________________________

Feb 15, Democratic Voice of Burma
KNPP views on current situation in Burma

One of Burma’s armed ethnic national groups, Karenni National Progressive
Party (KNPP) which is still fighting the military junta, State Peace and
Development Council (SPDC) has issued a statement on 15 February in
connection with current political situation in Burma.

The statement says the KNPP is of the opinion that Burma’s current armed
conflict is due to the loss of rights which ethnic nationalities are
entitled to in connection with equality and self determination.

It urges the SDPC to announce a nation-wide cease-fire and engage in
political dialogues involving representatives of Burman nationality,
representatives of other ethnic nationalities and representatives of SPDC
and to convene a national convention attended by genuine representatives
and to draw up a constitution that leads to a federal system.

It requests the international community including the UN to play a neutral
intermediary role in solving today’s Burma’s problems so that it could
achieve peace and prosperity, and SPDC’s concern for the break-up of
national unity and disintegration of the Union be resolved.

The KNPP and the SPDC signed a ceasefire agreement in the early 1990s but
it broke down before the ink had a chance to dry. Meanwhile, the SPDC is
urging the KNPP to resume talks for a new ceasefire while launching new
military offensives on KNPP fighters.
____________________________

Feb 17, Xinhua
Myanmar steps up fight against 3 communicable diseases

Myanmar has stepped up its fight against three top priority communicable
diseases --HIV/AIDS, tuberculosis (TB) and malaria, implementing an action
plan phase by phase.

External resources are being sought in the move including cooperation with
neighboring countries to reduce morbidity and mortality from these three
diseases, Minister of Health Kyaw Myint was quoted by Tuesday's official
newspaper The New Light of Myanmar as saying.

Dealing with the fight against HIV/AIDS, a three-year program is being
implemented since 2003. The anti-AIDS program includes promotion of
100-percent condom use and prevention of mother-to-child HIV transmission.

Voluntary testing for HIV and counseling for those contracting the virus
are being encouraged.

According to official figures, a total of 6,727 AIDS cases were reported
and 45,968 HIV infections estimated in Myanmar as of the end of March
2003, while total deaths of AIDS cases went to 2,843 in the country as of
the same date.

Government survey also indicates that 68 percent of AIDS cases in Myanmar
resulted from heterosexual contract, while 30 percent were caused by
injecting drug use and the remaining percent was due to mother-to-child
transmission.

Meanwhile, Myanmar successfully held its first anti-AIDS exhibition in
last November to educate people against the danger of HIV/AIDS.

As for TB control, the government has, since 1997, been adopting the
Directly Observed Treatment Short Course (DOTS) strategy in treating the
disease as recommended by the WHO, and the strategy has covered over 300
townships in the country.

Partly with the aid of the Global Drug Facility in terms of TB medicines
for three years, 60 percent of TB patients received treatment annually
under the DOTS strategy and 82 percent of them were cured, adding to about
100,000 cured TB patients as of the end of 2002 since 1997.

With regard to malaria, Myanmar has also intensified its fight against the
disease, collaborating with the WHO and the UN Children's Fund. The
government has provided tens of thousands of insecticide-treated mosquito
nets for people in high-risk areas in the country, mostly in the border
areas.

Official figures revealed that there has been significant decline in the
mortality rate out of malaria since 1996. In 2001, 1.2 percent of its
population contracted malaria and the disease accounted for about six
deaths in every 100,000 people.

Meanwhile, the country declared that it has been free from leprosy and
polio since 2003.
____________________________

Feb 15, Associated Press
Myanmar opposition figure Tin Oo moved from prison to house arrest – Aye
Aye Win

Myanmar's military rulers have released the deputy leader of the main
opposition party from prison, but placed him under house arrest at his
home in the capital, family members said Sunday.

Tin Oo, the 77-year-old vice chairman of the National League for
Democracy, was brought from Kale prison to his home late Saturday, members
of his family said on condition of anonymity.

He had been held at the prison since a May 30 clash between a pro-junta
mob and activists following opposition leader Aung San Suu Kyi on a
political tour of northern Myanmar. At least four people were killed.

"Except for being slightly thin, Tin Oo is healthy and fine," a family
source told The Associated Press.

More than six security officers have been posted outside Tin Oo's house in
a quiet residential neighborhood, one of whom said early Sunday that only
family members were allowed to visit him.

Tin Oo was detained along with Suu Kyi and scores of other NLD members
after the May clash. Kale prison is about 700 kilometers (435 miles) north
of Yangon.

Suu Kyi, a Nobel Peace Prize laureate, remains under house arrest along
with NLD Chairman Aung Shwe and party secretary Lwin.

Five other party leaders - Nyunt Wei, Than Tun, Soe Myint, Lun Tin and Hla
Pe - were released in November and sent letters to the ruling military
last year urging officials to free Tin Oo or move him to a more
comfortable place.

On Sunday, Soe Myint welcomed Tin Oo's transfer from prison, but demanded
that the military release other political prisoners.

"I am happy and very much relieved that U Tin Oo is sent back to the
comforts of his home," he told The Associated Press. "We would be happier
if restrictions on all party leaders including Daw Aung San Suu Kyi are
lifted and political prisoners freed." U and Daw are honorifics.

More than 1,300 political prisoners - including opposition members,
journalists, doctors and lawyers - remain in jail in Myanmar, the
London-based human rights group Amnesty International said after a visit
to the country in December.

The junta has released 151 people detained after the May 30 incident, but
NLD sources say some two dozen party members remain in jail.

Tin Oo was rumored to have been killed, but Red Cross officials confirmed
in June that he was still alive after meeting him in prison.

Tin Oo's family was permitted to send him food and medicine through the
authorities, but relatives expressed concern over his health due to the
harsh prison conditions.

Last month, authorities issued a statement denying rumors that Tin Oo had
gone on hunger strike, saying he was "in good health with a hale and
hearty appetite," and was receiving a daily checkup from the prison
medical officer.

Myanmar's ruling junta came to power in 1988 after crushing a
pro-democracy movement that left hundreds dead. The military rulers called
elections in 1990, but refused to hand over power when Suu Kyi's party
won.
____________________________

Feb 14, BBC Monitor

Source: Democratic Voice of Burma, Oslo, in Burmese 1430 gmt 12 Feb 04
Text of report by Burmese opposition radio on 12 February

At the 57th Anniversary of Union Day, which falls today, the National
League for Democracy NLD has demanded the immediate release of Burmese
democracy leader Daw Aung San Suu Kyi and to bring about democracy and
equal rights for the ethnic nationalities as envisioned by Bogyoke Maj-Gen
Aung San and the national race leaders more than half a century ago.
Furthermore, one of the NLD leaders, Thakhin Soe Myint, said that the NLD
has passed a resolution today that no new elections will be accepted
except the 1990 elections result.

Thakhin Soe Myint Bogyoke Aung San envisaged a policy of liberty, freedom,
and human rights. He said there must be freedom and democracy. Since today
is the 57th anniversary of Union Day, the two main objectives are - the
need to implement and fulfil democracy and equal rights for ethnic
nationalities and to release NLD Chairman U Aung Shwe, U Tin Oo, and U
Lwin, including Daw Aung San Suu Kyi, and all the political prisoners.
These are the issues needing urgent attention. Furthermore, the important
thing is to let Daw Aung San Suu Kyi meet with two NLD Central Executive
Committee members. We have proposed the matter but still waiting for a
response. These are our issues. end of recording

That was Thakhin Soe Myint. In addition, he said the following regarding
the results of the 1990 elections.

Thakhin Soe Myint There was a resolution which we passed at (?last year's)
Union Day ceremony. That is, we would not accept any new elections until
the May 1990 elections result is honoured and resolved. Today, we would
like to emphasize mainly on the Constitution and the union matters. end of
recording

That was Thakhin Soe Myint speaking on behalf of the NLD. Dear listeners.
The NLD commemorated the 57th Anniversary Union Day by performing
meritorious deeds at Sasana Gone Yi Monastery in Bahan Township, this
morning. Thakhin Soe Myint said, a commemorative ceremony was held at NLD
Central Executive Committee CEC member U Than Tun's residence in the
evening where almost 400 guests including ethnic leaders from various
states and divisions attended. The NLD distributed a four-page statement
on the formation of the Union and U Khun Myint Htoon, elected
representative from Thaton Township Constituency-1 in Mon State, who was
recently released from imprisonment, discussed student affairs. Daw Nan
Khin Htwe Myint, elected representative from Pa-an Township Constituency-3
in Karen State, who personally attended the ceremony, explained about the
essence of the NLD statement.

Daw Nan Khin Htwe Myint The first point is for all the national races to
have autonomy in political, administrative, economic and other sectors in
accord with the constitution. The second point is to hold a National
Consultative Assembly similar to the Panglong Conference to lay down
future objectives of the union, with the participation of the national
races. The National Consultative Assembly would pass resolutions
concerning autonomy, equal rights, self determination, and other matters
in line with the voice of the majority. The NLD will always put in the
fore and work diligently for the benefit of the Union of Burma and its
people. That is the core essence. Of course, the full text of the
statement is much longer. end of recording

That was the essence of the NLD's Union Day statement by Daw Nan Khin Htwe
Myint. Thakhin Soe Myint, NLD CEC member who acted as chairman of the
meeting and keynote speaker at the NLD Union Day commemorative ceremony,
urged the following to the State Peace and Development Council on behalf
of the five CEC members and the NLD.

Thakhin Soe Myint Today's political problems such as the development of
the country and the ethnic affairs should be solved by political means.
The two problems could not be separated, they are connected. The NLD is
standing firm on its position which is based on the dialogue process.
Political problems need to be solved by political means. In building a
Union, the important thing in the political dialogue process is to solve
democracy and ethnic affairs pertinently. end of recording
____________________________

Feb 14, BBC Monitor
Seven members of Burmese opposition group arrested

Source: Democratic Voice of Burma, Oslo, in Burmese 1430 gmt 12 Feb 04
Text of report by Burmese opposition radio on 12 February

At a time when the NLD National League for Democracy is commemorating the
Union Day at various states and divisions, it has been learned that the
military intelligence has arrested the chairman and six Executive
Committee members of the NLD, who are preparing to celebrate the Union
Day, in Bogale Township, Irrawaddy Division. DVB Democratic Voice of Burma
correspondent Maung Maung Hein filed this report.

Maung Maung Hein At 2300 local time on 11 February, by order of the
regional military intelligence, the TPDC Township Peace and Development
Council has detained township NLD executives including Chairman U Aung
Khin Bo and six township organizers. An NLD women group member provided
the following names.

NLD woman member Bogale Township NLD Chairman U Aung Khin Bo, U Aung Khin,
U Aung Myint, Ko Win Naing, Daw Mi Mi Sein, Daw Khin Lay, and another one
this morning.

Maung Maung Hein U Khin Maung Thit, who brought the NLD Union Day
Statement from Rangoon, was detained this morning at 1000 and no one knows
where the detainees were being held. According to local residents, the
authorities seem to be worried because of the mass turnout at all the
NLD's Union Day commemorative ceremonies.

DVB correspondent Why do the authorities detain the Bogale Township NLD
executives?

Maung Maung Hein According to local residents, many people turned up to
help NLD on 11 February to prepare for the Union Day ceremony, which falls
today. They were arrested while many people were gathered there to help.

DVB correspondent Yes. We heard six were arrested that night but was the
ceremony permitted to proceed the next day?

Maung Maung Hein The NLD was not told that night when they were arrested
that they were not allowed to hold the ceremony. But, when many people
began to gather at the site, they started to worry and detained U Khin
Maung Thit, who brought the NLD Union Day Statement from Rangoon. By that
time the number of people has grown to over 100 persons and the
authorities brought Bogale Township NLD Chairman U Aung Khin Bo to
disperse the crowd.

DVB correspondent Where was U Khin Maung Thit detained? On the way or in
Rangoon or in Bogale?

Maung Maung Hein Well, he was arrested when he arrived at U Aung Khin Bo's
residence, which is the NLD Township office as well as the venue for the
ceremony.

DVB correspondent In that case, altogether seven were arrested in Bogale
Township. What is the latest condition of the detainees?

Maung Maung Hein No one knows where they were detained and so far no
relevant news has been received.

DVB correspondent We heard that U Myint Aye, chairman of Kemmendine
Township NLD, and U Tin Maung Kyi, who were detained recently, have been
released. Do you have any news regarding the matter?

Maung Maung Hein We have learned that Kemmendine Township NLD Chairman U
Myint Aye and U Tin Maung Kyi were handed over by the military
intelligence at NLD Central Executive Committee member U Than Tun's
residence at 1400 on 11 February. According to some NLD youth members,
they were questioned about some youth publications. We learned that they
were interrogated for publishing some leaflets for the Kemmendine Township
NLD youth group. But according to the military intelligence, it was in
breach of Section 17/20 of the Printing and Publishing Law and action
could be taken. end of recording


BUSINESS / MONEY
_____________________________________

Feb 14, Financial Times
Burma's rice policy chaos sows economic seeds of doubt - by Amy Kazmin

For years, Burma's military exercised tight controls over the politically
sensitive rice trade to ensure a steady supply of affordable rice in the
cities and to collect the foreign exchange generated by rice exports.

Its interventions into the grain trade – which began as part of the
"Burmese Way to Socialism" crafted by the eccentric former dictator, Ne
Win - depressed prices paid to farmers, devastating rice production in
what was once the "rice basket of Asia".

The military regime that followed Ne Win clung to the controls because
they feared that rice shortages would trigger urban unrest.

Burma's generals decided only last year to get out of the rice trade,
relinquishing what it called "the last remnant" of the old economic order.
 It hoped that rice production would surge if farmers received more
attractive prices for their crop.

However, yielding to market forces is proving tough action for the
generals to take, highlighting the difficulties resuscitating a gasping
economy.

Last April, the regime declared an end to its direct procurement of paddy
from farmers at fixed prices. It later said civil servants and soldiers
would no longer be given rice but would get cash allowances to buy it. The
junta also decided to permit private rice exports, ending its long
monopoly over the small but essential international rice trade.

All in all, it was Burma's boldest economic reform in well over a decade,
and seemed a surprising breakthrough after the long years of policy
paralysis and stagnation.

"It's a big reform on a very important issue to the overall political
economy, with lots of risks involved," said a Rangoon-based policy
analyst.  "It suggests there are people in government who are looking
seriously at the economic context and pondering what has to be done to
improve things."

But Burma's junta now seems to have become jittery about letting market
forces rule its most crucial commodity. In an abrupt about-face, the
generals last month banned all rice exports, bringing shipments to a halt
just as traders were sending their first consignments abroad.

Although a bumper rice harvest has brought prices far lower than this time
last year, the junta apparently feared that exporters buying rice for
foreign sales would drive domestic prices up too high. Instead, with the
export ban, prices fell further.

Rice traders have since been appealing for an end to the ban, warning that
the unexpected delays will undermine the credibility and business
prospects of private rice exporters.

Traders also fear that low prices will hurt farmers ahead of the coming
planting season. Farm gate prices are now roughly 15 per cent below the
level that traders say would be best for both exports and farmers'
profits.

"What we fear is that if there is a ban and prices are slack, the farmers
will not be making enough money, and production in the coming year might
be hurt," said one local commodity expert.

The junta's wavering on this crucial reform highlights the profound
difficulties of reviving Burma's crippled economy, still burdened by
heavy-handed and unpredictable state intervention, high inflation, and a
non-transparent system of multiple exchange rates.

With Burma's pro-democracy opposition leader, Aung San Suu Kyi, still
under house arrest, the military generals are seeking to burnish their
political credibility at home and abroad with a national convention that
could result in cosmetic changes to the government.

But the key question is whether a reconstituted government will emerge
with the political will - or the necessary political capital - to
undertake the fundamental reforms needed to stabilise Burma's economy and
unleash its long-touted economic potential.

Western countries are unlikely to ease existing sanctions on Burma, which
include a de facto ban on World Bank and International Monetary Fund
support, unless Ms Suu Kyi and her National League for Democracy obtain a
meaningful political role in the country.

Yet, without outside assistance, the ruling generals will probably be wary
of policy reforms that could incur public ire, such as phasing out
electricity subsidies or winding down money-losing state enterprises.

"I would be concerned that the fact things have not been working out [for
the rice reforms] would put the next potential reform on a backburner for
a while," said an analyst. "There is a significant risk that [the junta]
will conclude this whole reform thing is a bad idea."

Meanwhile, traders' hopes of a quick lifting of the rice export ban have
been dashed.  After initial hints that trade could soon resume, the regime
now plans to extend the export ban until mid-March. Burma's generals, it
seems, have yet to be won over to the logic of the market, and prefer to
keep a firm grip of their "command" economy.  Says one trader: "They
cannot tolerate the few ups and downs that happen before the market
settles."
____________________________

Feb 18, The Nation
Pinij leads mission to Burma

Industry Minister Pinij Charusombat will today lead a group of Thai
businesspeople to Burma to explore business opportunities under the
Economic Cooperation Strategy (ECS).

Twenty top businessmen from various industries, including plastics,
packaging, electronic parts, auto parts, agricultural machinery, food,
logging and hospitals, will join the group, Board of Investment (BoI)
secretary-general Sompong Wanapha said yesterday.

Burma is the first ECS partner to be visited. Visits to Laos and Cambodia
will be arranged at a later date, he said, and the BoI is also scheduled
to visit China and Vietnam in late March to seek investment opportunities.

During the three-day trip, the group will also meet Burma's Prime
Minister, General Khin Nyunt.  The Board Investment will work with the
Myanmar Investment Commission
(MIC) to hold a seminar on Thai-Burma investment opportunities, aimed at
expanding investment in both countries.

In the past 10 years, foreign investment in Burma totalled 359 projects
worth US$7.4 billion (Bt289 billion). Singaporeans are the biggest
investors, with 70 projects and a total investment of $1.54 billion,
followed by Britain with 37 projects worth $1.4 billion.

Thailand ranks third, with 49 projects totalling $1.29 billion.

Sompong added that Thai investments in Burma focused mainly on food
processing and agricultural goods, gems and jewellery, wooden furniture, 
garments, power plants, basic infrastructure, fisheries, mining, hotels
and tour agents.

The Siam Cement Group and the Charoen Pokphand Group have already invested
in Burma.

Thailand has a trade deficit with Burma because the government has had to
purchase natural gas from its neighbour since 2001. The Kingdom's trade
deficit with Burma reached Bt16.34 billion in the first 11 months of last
year.

Thailand's main exports are cement, rubber products, chemicals, fabrics,
machinery, batteries, ceramics, and electrical appliances, while buying
logs, gems, silver, gold, frozen shrimp, yarn and leather from Burma.

Watcharapong Thongrung
__________________________

Feb 16, AFX News Limited
Indonesia's Japfa Comfeed may relocate ops to Vietnam, Myanmar

JAKARTA: PT Japfa Comfeed, the country's leading animal feed producer, may
relocate its operations to Vietnam and Myanmar in protest over the
improper handling of a corruption allegation against the company's
executives, Bisnis Indonesia reported.

The report said the police has arrested two Japfa executives Achmad
Saefudin Haq and Kuswanto on allegations that the company has breached an
agreement with the government over the selling price of subsidized animal
feed.

The newspaper quoted Japfa lawyer Amir Syamsuddin as saying that there was
no such agreement between the government and the company and therefore his
clients did not break any agreement.

The report said according to the police, Japfa sold animal feed at more
than 1,200 rupiah per kilogram, in violation of an agreement with the
government from whom it received subsidy in purchasing soya bean.

”Let's see (what happens) in the next two months. If the situation gets
worse, we will close all our operations here," Bisnis quoted Japfa chief
commissioner Syamsir Siregar as saying.

"We feel ashamed to our shareholders and business partners abroad because
of the corruption allegation," he said.

The company currently employs some 14,000 workers. It operates animal feed
plants in Tangerang in Banten province and Sidoarjo in East Java, with
combined annual capacity of 1.6 mln tons.

So far the company has cut production by 50 pct after the allegations
surfaced. The company also runs chicken breeding and hatchery operations
in Semarang, Central Java.

"Business opportunities in Vietnam and Myanmar are promising," he said.
____________________________

Feb 16, Xinhua
Mekong's road project to provide regional economic opportunities

Laos, Myanmar, Thailand, and Vietnam will participate in a workshop in
Laos on Feb. 18-19 to discuss ways to realize economic opportunities from
the East-West Economic Corridor, with Cambodia participating as observer.

The East-West Economic Corridor, when completed, will link Mawlamyine port
in Myanmar to Da Nang port in Vietnam by a 1,500 km all-weather road, the
Manila-based Asian Development Bank (ADB) said Monday in a statement.

The corridor includes the second international bridge over the Mekong
River at the Lao/Thai border. Some segments are finished or at an advanced
stage, benefiting people along the road, the ADB said.

The transport link, combined with measures to facilitate cross- border
transportation of goods and people, is expected to result in increased
trade and investments, and other economic opportunities, making it an
"economic" corridor, it added.

Combined with other such roads now under implementation or at an advanced
stage of preparation, the East-West Economic Corridor is expected to bring
about major economic and social change to the Greater Mekong Subregion.

The workshop will highlight the crucial role of the private sector in
developing the corridor. Development partners and entrepreneurs will also
attend the meeting.


REGIONAL
____________________________

Feb 14, BBC Monitor
Malaysia, Burma to set up joint commission to strengthen bilateral ties

Source: The Star web site, Kuala Lumpur, in English 14 Feb 04

Text of report by K.Y. Pung entitled: "PM: joint panel to strengthen
ties", published in English by Malaysian newspaper The Star web site on 14
February

Yangon Rangoon : Malaysia will set up a joint commission with Myanmar
Burma to promote and strengthen bilateral relations between both
countries. Prime Minister Datuk Seri Abdullah Ahmad Badawi said the
commission, to be co-headed by Foreign Minister Datuk Seri Syed Hamid
Albar, would be a catalyst to bring about higher participation in
Myanmar's development.

"While Wisma Putra Foreign Ministry and other agencies can help, it is
still the role of the Malaysian business community here to ensure its
success," he said at a press conference after a half-day visit here
yesterday. Abdullah was here on the last leg of his familiarization visits
to nine ASEAN Association of Southeast Asian Nations nations after being
appointed as prime minister on 31 October, last year.

Earlier, he was given a red carpet welcome and received by his counterpart
Gen Khin Nyunt at the Yangon International Airport. He had a closed-door
meeting with Gen Khin Nyunt at the State Guest House before paying a
courtesy call on the head of state Senior Gen Than Shwe, who is the
chairman of the State Peace and Development Council, at the parliament
house.

Abdullah said other matters discussed with his counterpart Gen Khin Nyunt
was how Malaysia could help in Myanmar's capacity-building programmes
which was raised at the ASEAN plus Three Summit in Tokyo, Japan, last
year.

On Myanmar's road map to democracy, Abdullah said Gen Khin Nyunt briefed
him on the actions taken towards national reconciliation, adding he was
happy that Myanmar was finalizing the holding of a national convention.
Malaysia enjoyed a close relationship with Myanmar and played a pivotal
role in bringing Myanmar into ASEAN in 1997. Myanmar will assume the
chairmanship of ASEAN in 2006.

Abdullah also met 100 members of the Malaysian community in Myanmar and
commended them for keeping up the good name of the country. He also urged
them to exploit the vast business opportunities in Myanmar, which was
endowed with rich natural resources.

Malaysia ranks fourth in total investments in Myanmar after United
Kingdom, Singapore and Thailand. In 2002, Malaysia's total trade with
Myanmar amounted to 315.9m US dollars (1.2bn Malaysian ringgit) with
exports amounting to 239.2m US dollars (909m Malaysian ringgit) and import
amounting to 162.5m US dollars (617.5m Malaysian ringgit).

Malaysia exports to Myanmar include mainly petroleum oils, crude
petroleum, oils from bituminous minerals and palm oil. Malaysia's
investments are in livestock and fisheries, manufacturing, food
processing, oil and gas exploration, hotel and apartment construction,
tourism development and real estate development.


OPINION / OTHER
_____________________________________

Feb 17, The Nation
Allies against drugs, but only in name
Thai-Burmese cooperation to end the Wa's opium trade has been very one-sided

It has been more than a month since Thailand and the pro-Rangoon United Wa
State Army (UWSA) entered a new phase of kiss-and-make-up with a ceremony
to mark the opening of a Thailand-funded school in Mong Yawn. To test the
waters in this new relationship between Thailand and the Wa, drug
officials provided the UWSA with a list of 300 Wa officials they would
like to see dismissed from the border area. The allegation was that these
officials were involved in the drug trade, the main point of contention
between the Wa and the world community.

So far, the UWSA has responded by dismissing a Wa commander from his post
near the Thai border following a complaint from Thai officials.
Incidentally, the person was the youngest brother of the UWSA's overall
leader, Bao Yu-xiang.

The fate of the 300 other officials, meanwhile, is still unclear. Bangkok,
on the other hand, has found itself in a corner. To start blowing off
steam now would amount to not only reneging on the recent handshake in
Mong Yawn but a slap on the face of the generals in Rangoon, whom Bangkok
tried to please at all costs, even if it meant making a Faustian deal with
the Wa.

It was no surprise that at the recently concluded US-Asean meeting in
Bangkok that the Burmese government - the UWSA's greatest ally - was asked
to speak on behalf of the Southeast Asian regional grouping about the
so-called progress in the fight against drugs.

Naturally, the Burmese chose the opportunity to paint a rosy picture with
UN statistics that indicated a decline in opium cultivation. What Rangoon
wanted the meeting and the world to believe was that the decline in poppy
cultivation illustrated the junta's commitment to the war on drugs. But
should the area under opium cultivation be the sole benchmark for success?

In its most recent report on the global drug trade, the United Nations had
some strong warnings for Asia. The region, especially Southeast Asia, was
losing the war on drugs, it said. The sharpest increase in drug abuse has
occurred in Cambodia, Laos, Burma, Thailand, Vietnam and China's Yunnan
Province, the UN said, adding that amphetamine-type stimulants were raging
out of control and young people were the ones most affected.

At the meeting in Bangkok, the Burmese representative was quick to point
to a half-baked crop substitution project with Thailand - namely the Yong
Kha project in an area controlled by the UWSA, Rangoon's favourite armed
minority which has also been dubbed the world's largest armed drug
trafficking group.

For more than half of century, poor farmers in the Burmese sector of the
Golden Triangle have been forced to participate in the illicit trade by
the so-called warlords and the insurgent groups who rely on the business
to finance their operations and fatten the pockets of their leaders.

What Rangoon didn't tell the meeting was how they had managed to dupe
Bangkok into going along with this so-called scheme which has done more to
whitewash the UWSA than help end the illicit trade or even shed light on
the plight of the poor farmers who have been enslaved by the opium trade.

Thailand put seed money of Bt25 million into this crop substitution
project, estimated to cost Bt135 million, thinking that the international
community would follow with generous donations.

But the fact that no foreign funding has been forthcoming two years after
the project was launched is an indication that the world community is not
as gullible as Bangkok has permitted itself to be.
__________________________

Feb 14, Asia Tribune
Cheers, jeers over giant gas find - by Supratim Mukherjee

KOLKATA - Government and business interests in India, Myanmar and South
Korea are crowing over a giant gas discovery in the Arakan Sea. But
critics warn that given the past behavior of Myanmar's ruling junta, the
impoverished residents of Arakan state will see little of the hundreds of
millions of dollars in revenue the project will generate.

In November, a consortium of South Korean and Indian companies including
Daewoo International Corp, Korea Gas Corp and the Indian public-sector
firms Oil and Natural Gas Commission (ONGC) Videsh Ltd and Gas Authority
of India Ltd (GAIL) started exploring the waters off the Arakan coast of
northwestern Myanmar.

Termed the Shwe Prospect (shwe means "gold" in Myanmar), the exploratory
well successfully penetrated thick sand and produced gas at a rate of 32
million cubic feet per day by drill stem test.

At a news conference in Seoul on Thursday, Daewoo International predicted
at least 100 billion won (US$86.2 million) in net profit annually for 20
years from 2010 through its natural gas production at the zone. Production
is to start in 2009.

The Myanmar government is poised to reap at least $800 million a year from
the project, and could see up to $3 billion annually. That would be a boon
to the impoverished country, where development has been hampered by the
isolationist policies of its military regime, by international sanctions
imposed over human-rights violations, and by internal conflicts with
Myanmar's numerous ethnic groups.

Opposition to the Shwe Prospect has begun already. "This is the largest
non-renewable natural resource of Burma [Myanmar] but the junta has
disregarded the rights of the local people," said Kyaw Han, a member of
the Anti-Gas Export Committee.

Neither at a state level nor at a national level has there been any debate
over whether this gas should be sold for cash or utilized to generate
electricity and develop local industries, Kyaw Han charged. "This is
blatant violation of human rights by the military dictatorship," he said.

Most Arakanese villages, like many other on the western frontiers of
Myanmar, suffer from lack of electricity. Even Arakan's capital city,
Sittwe, is dependent on diesel generators for electricity, available only
after the sun sets. This electricity is rationed by the military
government, which calls itself the State Peace and Development Council
(SPDC).

Daewoo International Corp has a 60 percent stake in the business and Korea
Gas Corp holds another 10 percent of the share. India's ONGC and GAIL
together own 30 percent. But Myanmar Oil and Gas Enterprise (MOGE), 100
percent owned by the junta, will have the rights to take the proportionate
share of the benefits.

MOGE has an August 2000 agreement with Daewoo to explore the Arakan coast
under a production-sharing contract. According to ONGC sources, a large
three-dimensional seismic survey this March and April will be followed by
intensive appraisal drilling in November, after the monsoon season.

The estimated recoverable reserve of the gas find in question is in the
range of 4 trillion to 6 trillion cubic feet of gas - equivalent to
between 700 million and 1.1 billion barrels of oil.

It has also been accompanied with a blueprint that suggests that the gas
will be taken into India through a pipeline from Kyauktaw-Paltwa in
northern Arakan, then going westward via India's northeastern state of
Mizoram to Assam.

Another possibility, which sources in ONGC say is being drawn up by
Trans-Canadian Pipelines, is to lay an inter-country pipeline from Arakan
via Chittagong in Bangladesh to West Bengal state.

Indian Petroleum Secretary B K Chaturvedi said GAIL will carry out a
feasibility study of a pipeline. Both the options of an undersea link
connecting the Myanmar gas fields to the east coast and an overland line
through Bangladesh into northeastern India or West Bengal will be studied.
The feasibility report is to be ready by June.

The Anti-Gas Export Committee believes that the benefits of the gas deal
would go to the military government, not to ordinary citizens. "The hard
cash that will come from this deal will be used to buy more weapons that
will be used to suppress the pro-democracy supporters," said Kyaw Han.

According to the International Institute for Strategic Studies, the
junta's military expenditures account for over 40 percent of national
budget while Myanmar's health and education spending is 0.4 percent and
0.5 percent respectively.

Dissident Ko Khaing Zaw of the All Arakan Students and Youth Congress says
the project might follow the footsteps of the "infamous Yadana/Yetagun
natural-gas project" - which began exporting gas to Thailand in 1998 from
the Andaman Sea via eastern Myanmar's Mon state.

The Yadana/Yetagun project, mired in controversies that included the use
of slave labor during the laying of the pipeline, is now in the midst of
court cases examining the complicity in human-rights abuses of the US oil
major, Unocal.

"Communities were forcibly relocated, their lands confiscated, and they
suffered rape, torture and extrajudicial killing at the hands of the
junta's soldiers to make the project a success," said Ko Khaing Zaw.

The director general of the energy planning department in Myanmar's
Ministry of Energy, Soe Myint, has indicated a price of around $4.50 per
million British thermal units for selling gas to India from its offshore
fields. Soe Myint clarified that this would not be the delivered price,
but the price of gas at the landfall point, to which transportation costs
would be added.

But Ko Khaing Zaw, also the convenor of the Anti-Gas Exports Committee,
said the military has already started "forcibly relocating villages to
create a pipeline corridor".

"To start survey work, the military is already using forced labor in the
construction of service roads and helipads, as well as their own camps and
barracks," he said.

Though Indian companies have until now avoided any comments on the alleged
human-rights violations in the project, high-level sources in GAIL said
that "the issue can create a lot of international outcry and that is why
the conglomerate is taking steps very carefully".

"We have already told the Burmese government that we will not tolerate any
forced labor and will also speak to the locals if they have any
complaints," the top official in New Delhi said in an interview.

But the Myanmar dissidents say Indian and Thai leaders are getting closer
to the junta "just because of demands of natural gas".

Myanmar exports gas to Thailand at around $4.26 per million British
thermal units from the offshore fields - Yadana and Yetagung, located in
the southern and southeastern offshore areas.

Despite occasional criticism made by Indian Defense Minister George
Fernandes about the junta in Yangon, oil has kept the diplomatic wheel
spinning smoothly between India and Myanmar.

As part of the negotiations to buy natural gas, the Myanmar junta has been
demanding political concessions from Thailand and India in the form of the
expulsion of refugees and crackdowns on opposition groups staying in these
countries.

(Inter Press Service)
____________________________