BurmaNet News, September 24, 2004

[Editor]

September 24, 2004, Issue # 2566

INSIDE BURMA
AP: Myanmar's junta jails four opposition members for 7 years
Reuters: Myanmar Supreme Court allows "unprecedented" appeal
DVB: Forced labor at Kalay airport

DRUGS
SHAN: Bosses offer preemptive buy

BUSINESS
Mizzima: Goods smuggling impedes border trade growth

REGIONAL
Mizzima: Main ruling party of India supports the democratic movement in Burma
Mizzima: India needs a refugee policy: experts

OPINION / OTHER
WSJ: Dollars for dictators

______________________________________
INSIDE BURMA

September 24, Associated Press
Myanmar's junta jails four opposition members for 7 years

Yangon: A court in military-ruled Myanmar has sentenced four opposition
party officials to seven years in jail during a closed trial at the
notorious Insein Prison, a party spokesman said Friday.

The two men and two women, all officials of Aung San Suu Kyi's National
League for Democracy party, were arrested in June for alleged links to an
illegal organization, said party spokesman U Lwin.

He didn't say which organization the four were accused of having ties with.

During the trial Thursday in the prison on the outskirts of Yangon, the
court passed judgment based on confessions given by the officials to
intelligence agents during their interrogation, U Lwin said.

U Lwin said that NLD lawyers who represented the defendants told him that
the prosecution failed to provide supporting evidence or produce any
independent witness to prove their guilt. There were also several
procedural loopholes, he said without elaborating.

NLD's legal committee will appeal, U Lwin said. He identified the four as
Ma Than Htay, Tin Myint, Ma Yi Yi Win and San Ya. Details of the charges
against them were not immediately known.

In a separate development, authorities detained Ko Pauk Sa, the NLD head
of Sanchaung township, on Wednesday night, but it is not clear whether he
was taken in for questioning or had been arrested, U Lwin said.

The military government, which has long been criticized for its poor human
rights record, holds more than 1,000 political prisoners in jails.

The junta came to power in 1988 after crushing a pro-democracy uprising.
It called elections in 1990 but refused to hand over power when the NLD
won. Suu Kyi is currently under house arrest.

_____________________________________

September 23, Reuters News
Myanmar Supreme Court allows "unprecedented" appeal

Yangon: Myanmar's Supreme Court has made the unprecedented decision to
allow appeals by eight people originally sentenced to death in a
controversial high treason case, a defence lawyer said.

"The Special Appellate Bench of the Supreme Court seated by Supreme Court
Judges U Khin Maung Aye and U Khin Myint today accepted the admission to
make a special appeal," Naing Ngweya told Reuters late on Thursday.

One legal expert, calling the decision "very unprecedented" and "a
breakthrough", said pressure on the military regime from the U.N.'s
International Labour Organisation and France-based Reporters Without
Borders may have played a part.

Zaw Thet Htwe, an editor of popular sports journal "First Eleven" and 11
others were arrested July 2003 accused of plotting bomb attacks in Yangon
and other cities.

He and eight others were sentenced to death in November of that year after
a closed trial by a special court at Insein Central Prison. The Supreme
Court had not accepted special appeals in treason cases previously.

Nothing is known about the other three, nor was there any immediate word
on why the ninth person was not involved in the appeal.

The ILO protested against the death sentences, saying the real reason they
were convicted was for reporting human rights abuse cases to the agency's
Yangon representatives.

A few months later, the sentences of the eight were commuted to between
three years and life.

"The next step is to make the final appeal to a three-judge Special
Appellate Bench," Naing Ngweya said.

"I hope for the best. If the final appeal is accepted, some of them may be
acquitted or their sentences may be reviewed," he said.

_____________________________________

September 23, Democratic Voice of Burma:
Forced labor at Kalay airport

The local residents in Kalay, Sagaing Division said they were forced to
work for cleaning airport on July 15 and August 31 by the authorities.

Every family in the town has to send one person and if they cannot, they
were fined 500 Kyat. Some of the people in a town called Saedaw Oo were
forced to work for building USDA office, civilian wing of the military
regime.

The local authorities told the people that the order came from the
divisional military commander. The local residents at Saedaw Oo village at
Kalay Township also forced to contribute 200 Kyat for opening of the USDA
office. One local resident told DVB that although government officials
claimed that there is no more forced labor in Burma, they are still being
forced to work for various government projects.

_____________________________________
DRUGS

September 23, Shan Herald Agency for News
Bosses offer preemptive buy

The seeds have been sown in some places, whereas in many others, farmers
are still waiting for the year's unusual downpour to break off before they
could follow suit, but already Chinese and Kokang financiers are offering
to pay advance to the poppy farmers in Wa areas though their agents,
reports S.H.A.N. correspondent Hawkeye from the Chiangmai border:

"The payment, as is normal in the Wa hills, is calculated in old British
coins, "a trader from Kengtung, for two years one of S.H.A.N.'s principal
sources, tried to enlighten Hawkeye. "If you're buying during harvest
time, you'll be paying no less than 110 coins, but right now it's only
between 65-70."

The current exchange rates for 1 old British coin are 1,350 kyat, 93 baht
and 22 yuan respectively. "Of course, there is not enough coins to go
around," he continued. "So you usually pay them in all 4 currencies. The
baht is least in demand though, Thailand being too far away for most of
them."


The trader witnessed poppy fields in Mongpawk, Mongka, Mongngen and Mawfah
on the eastern side of the Salween and Tangyan on the west bank. "Last
year, there was a poppy plot right behind the UN office in Mongka," he
remembered. "People say they couldn't care less about the UN, as they
won't be allowed to grow it anymore starting next year."

The UN Office on Drug and Crimes, formerly known as UN Drug Control
Programme, has, since 1998, funded an opium eradication project in the
district of Mongpawk which comprises 5 townships: Mongpawk, Hotao,
Mongphen, Mongka and Nam Phai.

The Wa leader Bao Youxiang has promised to declare the Wa region a
drug-free zone on 26 June 2005.

_____________________________________
BUSINESS

September 23, Mizzima News
Goods smuggling impedes border trade growth - Surajit Khaund

The free movement of smuggled goods across the Northeast India border has
retarded the growth of trade between India and Burma an academic from
India has said.

Professor MP Bezbaruah, the head of the Department of Economics at Gauhati
University said at a recent seminar in Guwahati that a huge chunk of money
generated from trade has been misappropriated. He said that traders
involved in export and import with Burma allege frequent  harassment from
security force personnel and underground groups operating along the
international border.

The Indian Commerce Ministry has claimed that legal trade between India
and Burma has been increasing substantially. However, experts closely
associated with trade between the countries dispute statistics provided by
the Ministry. They say that informal trade is much higher than legal trade
and the free flow of Chinese goods has overshadowed the growth of real
trade. They also claim that free movement of goods and the prevailing law
and order situation have slowed the growth of trade between the countries.

Northeast India has become a focal point in Indo-Burma relations. India is
giving increased emphasis to the region by way of improving trade with
Burma.

Four states in the northeast have been pursuing the Indian Commerce
Ministry to open more trade points with Burma but so far it has opened
only two - Moreh and Chmphai.

Despite demands for the opening of other two trade points - Pangsau Pass
and Longwa - the Indian Commerce Ministry seems to be using “go slow”
tactics in this regard. The Ministry has been delaying the matter because
of an increase in insurgent activities along various bordering areas of
Burma.

Indo-Burma business has been gaining momentum gradually after the signing
of the 1995 trade pact. According to official statistics the volume of
trade between India and Burma stands at $500 million. The Indian Commerce
Ministry in a recent report said that Indo-Burma trade has substantially
increased. Most of the trade takes place through the Northeast India.

But the direct trade between Northeast India and Burma is not encouraging.
The export figure stands at just 7% against an import figure of over 32%.

_____________________________________
REGIONAL

September 17, Mizzima News
Main ruling party of India supports the democratic movement in Burma -
Thaw Zin

The Congress Party will always support any movement for the restoration of
democracy in Burma, said a Congress Party spokesman today.

"I can say on behalf of my party, not as a part of the government as far
as the Congress Party is concerned under Sonia Gandhi's leadership, the
people of Burma have all the support in the movement to restore democracy
in Burma. And we have great regard for Aung San Suu Kyi, who has lead a
long struggle for the restoration of democracy," said Mr. Anil Shastri, a
Congress Party spokesperson on the second day of the India-Burma Relations
conference in New Delhi.

Mr. Anil is the son of India's late Prime Minister, Lal Bahadur Shastri
and a member of the Central Working Committee, the highest body of the
Congress Party. He said that he will take up the Burma issue with his
party.

"I do not know what the government can do but surely as far as I am
concerned, I will take this issue up with my party leaders and you have my
assurance that I will take it up as early as possible. And I will also
take it up with the government whatever the consideration - economic
conditions or the internal problem or tyranny in Burma [causing] people to
flee to India - whatever the consideration. But what has been happening
until today is not acceptable to civil society," he said.

The two day seminar, to examine the ongoing relationship of the two
countries and to seek support for Burma's democracy movement, was
organized by 'The Other Media' and 'Mizzima News' and started yesterday.

Mr. Prakash Karat, a Polit Bureau member of the Communist Party of India
also expressed his party's support for the Burmese democratic movement.
"India cannot be indifferent to the plight of the people of Burma. Both
the government of India and the political forces must support the struggle
to restore democracy and nurture close ties with the people of Myanmar
(Burma). India should resolutely support the struggle for democracy in
Myanmar (Burma)," he stated.

Politicians, journalists, Indian academics and Burmese activists also
raised serious concerns about the plight of hundreds of thousands of
innocent Burmese people living in and outside their country.

In recent years, India has been more pragmatic in improving its relations
with Burma, despite criticism from certain quarters for not supporting the
struggle for political change in Burma.

Since the Congress-led United Progressive Alliance (UPA) came to power in
May, there has been high hopes that the Indian government will actively
support the Burma's democratic movement. But there has yet to be distinct
change on policy.

Analysts say that to change India's ongoing constructive engagement policy
with Burma's military regime would slow.

Mr. Anil suggested raising more awareness of the Burma issue in India.
"Unless there is pressure from the people to the government then the
government keep quite," he said.

"The Indian government can do something for Burma if there is awareness
within the people of this country, if there is pressure from various
political parties, NGOs and various groups within the country. So do
something for raising awareness or else we can't do anything because of
pressure in our country," he added.

_____________________________________

September 17, Mizzima News
India needs a refugee policy: experts - Nava Thakuria

New Delhi: A two day conference on India-Myanmar (Burma) Relations
culminated with an appeal to the Indian government for a refugee policy
and also a call for Indian civil society to play a pro-active role on
propagating support to democratic movement in Burma.

Organized by 'The Other Media' and 'Mizzima News' at India International
Center, New Delhi, on 16-17 September, the conference provided a forum for
several speakers to raise serious concerns about the plight of hundreds of
thousands of innocent Burmese people living in and outside Burma. Speakers
specifically highlighted the forced displacement of the Chin who are
taking shelter in Mizoram, in India's northeast, drawing attention to
mental and physical harassment they have experienced in the recent past.

"Lack of faith and respect for refugees in India has made the situation
more complicated," observed Suhas Chakma, a prominent human rights
activist. Presenting his paper in the first session, chaired by diplomat
Preet Malik, Mr Chakma drew attention to the un-ending suffering of the
Chin community in Mizoram. Chakma, director of Asian Center for Human
Rights, New Delhi, also urged the establishment of an institutional set up
in India to pursue the Burma issue more effectively.

Human rights lawyer, Colin Gonsalves, also raised his concern for the
suffering and insecurity faced by Burmese refugees in Mizoram. He spoke of
their subjection to mental and physical assault by a local youth group
named Yong Mizo Association.

Guwahati based scholar, Sanjib Baruah, argued that some recent policies
adopted by the Indian government to manage "NE Militancy" had indirectly
worsened the situation for many displaced communities, including the
Burmese in that part of the country. Citing the example of Chin community,
Baruah alleged that because of some default policies of the central
government, many communities in northeast India, including Chin, Brue and
Kuk, had imposed on them the status of "de facto double citizenship."

"This kind of practice has done more harm to northeast India and it has
affected the Burmese refugees too in the region," said Mr Baruah, who
heads the Center for Northeast India, South and South East Asia Studies in
Assam.

Also speaking at the conference, Dr. A.B. R Chaudhury from Rabindra
Bharati University, Kolkata, emphasized the need to formulate an Indian
foreign policy inspired by human values. "The foreign policy of a country
like India should not be influenced by the soldiers and traders only,"
asserted Mr Chaudhury. Highlighting the plight of internally displaced
people inside Burma, Chaudhury proposed that a coordinated policy to be
adopted by all Burma's neighboring countries based on pragmatic action.

Admitting the previous Indian government's change in policy towards Burma,
Professor Raja Mohan from Jawaharlal Nehru University emphasized the
importance of having a good relationship with Burma. Professor Mohan
believes that the relationship with Burma would help India deal with
militancy in northeast India. "After all, India can not deny the
importance of sustained cooperation from the establishment in Rangoon for
India's own security reasons," he said.

Wrapping up of the discussion on the last day, senior politician, Anil
Shastri, made assurances that India would continue supporting the movement
for restoration of democracy in Burma. While waiting for further civil
uprisings against the military junta inside Burma, Mr Shastri emphasized
the need for adequate awareness about the Burma issue in India.

"Political party leaders, NGO activists and Indian people in general
should be enlightened on the sensitive Burma issue while expecting a
significant role by the government of India in supporting democratic
movement led by Aung San Suu Kyi. And also patronizing assistance to the
Burmese refugees in India," added the Congress spokesman, Mr Shastri.

_____________________________________
OPINION / OTHER

September 23, The Wall Street Journal
Dollars for dictators

When the International Monetary Fund meets next week in Washington, it is
hoping to persuade the U.S. to approve its no-strings-attached,
multi-billion-dollar foreign aid expansion. If that sounds odd at a time
when U.S. resources are already stretched, wait until you see the list of
beneficiaries.

The new IMF financing would make Iran eligible for a total of $465
million, Syria would be entitled to $90 million, Robert Mugabe's Zimbabwe
$115 million and Sudan $100 million. Oil-rich, authoritarian Venezuela
would have $840 million and the gentle junta running Burma $80 million. As
the creditor nation in the Fund, the U.S. would be asked to cough up the
lion's share of the dough.

The proposal, launched in 1997 by the Clinton Administration and Britain,
is about increasing the "special drawing rights" pool at the Fund. SDRs,
which are paper receipts that can be exchanged for real money, originated
under the gold standard as a liquidity tool for balance of payments
shortfalls. This meant that these "international reserves" would
continually circulate from deficit to surplus countries.

But the collapse of Bretton Woods in 1971 removed any such logic for
printing "paper gold." That meant that the SDR department at the Fund had
to find a new line of work and, as Carnegie Mellon economist Adam Lerrick
notes in a paper for the Joint Economic Committee released today, it has
"morphed into a foreign aid mechanism to transfer money from rich to poor
countries." Since 1970, the Fund has allocated 21.4 billion SDRs ($31
billion at the current dollar rate). Now it wants to double that.

Ostensibly, the new SDRs would restore equity in the Fund since some new
members have never received any SDRs and others' share of the world
economy has grown. But as Mr. Lerrick notes, these goals could have been
met by a reallocation of existing SDRs. The rub is that those countries
that had used up their allocations would have been required to pay back
what they had borrowed. Mr. Lerrick points out that "63 governments or
more than half of IMF developing country members with SDR allocations have
consumed their existing shares." So the more politically acceptable path
is to expand the SDR account.

Which presents its own problems. First, despite the rhetoric, SDRs are not
free money created out of thin air. They are receipts that borrowers bring
to the window to be redeemed, usually for dollars, euros or yen. The Fund
has to get that real money from its creditor members -- and that means
you, dear taxpayer.

According to Mr. Lerrick, "SDR Department charges add up to an annual cost
to U.S. taxpayers of $330 million." That means, Mr. Lerrick says, if the
SDR expansion is ratified by Congress, "U.S. exposure could easily surpass
$12 billion in hidden foreign aid without control over where the funds go
or the ends to which they are devoted. The cost to U.S. taxpayers would
then reach $750 million per year." The IMF is hoping no one will notice,
since the Fund's drain on American resources is "off-budget" under
Congressional accounting, meaning that it doesn't show up as an annual
expenditure but is an off-the-books future liability.

Equally egregious is the lack of accountability in SDR accounting. SDRs
are supposed to be "borrowed," but formal IMF policy states that they are
distributed without condition and without any expectation of repayment.
This is the antithesis of President Bush's foreign-aid policy, which
pledges to screen candidates, monitor results and emphasize incentives. We
have a hunch Iran, Syria and Venezuela wouldn't qualify under these Bush
standards.

Expansion of the SDR account requires three-fifths approval of Fund
members and that hurdle has already been cleared. But it also needs 85%
approval by voting power and only has 76% to date. The U.S., with its 17%
vote, holds the blocking veto. Unless Washington wants to prop up Tehran's
mullahs and other class acts, we would suggest using it.