BurmaNet News October 21, 2004

[Editor]

October 21, 2004, Issue # 2584

INSIDE BURMA
AP: Myanmar official cites corruption charges For PM's ouster
Kyodo: Ethnic Karen delegation not detained in Yangon
BBC: Burma ends rebel talks early
AP: Karen rebels return from Yangon after peace talks cut short

DRUGS
Asia-Pacific News Agencies: Fear of rising drug trafficking after power
change in Myanmar

BUSINESS / MONEY
AFP: Thailand to review future lending to Myanmar: PM
Thai News Service: Myanmar halts imports of Thai goods

REGIONAL
Kyodo News: ASEAN's image hurt by shakeup in Myanmar, Malaysia says
AFP: Myanmar military leader Than Shwe expected to visit India

INTERNATIONAL
Reuters: Myanmar's new PM linked to Suu Kyi attack
FEER: Japan Takes Flak for Burma Aid

OPINION / OTHER
Bangkok Post: Give Burma a clear message
The Nation: Cloud over peace pacts, democracy
Asian Wall Street Journal: China's Burmese and Korean Problems

PRESS RELEASE
RSF Asia: New military government closes 17 publications

______________________________________
INSIDE BURMA

October 21, Associated Press
Myanmar official cites corruption charges For PM's ouster

YANGON (AP)--Myanmar Foreign Minister Nyan Win said Thursday that Prime
Minister Gen. Khin Nyunt resigned this week for health reasons, but that
he also had to bear responsibility for a major recent incident of alleged
corruption in northern Myanmar.

Speaking at a closed meeting with foreign ambassadors, he also said that
the policies of Myanmar's military government would remain unchanged under
the new prime minister, Lt. Gen. Soe Win.

His remarks were the first elaboration from the government on the change
of leadership since a brief announcement of Khin Nyunt's resignation and
his successor's appointment on state radio and television Tuesday night.

______________________________________

October 21, Kyodo News
Ethnic Karen delegation not detained in Yangon

YANGON — Sources close to a separatist ethnic Karen rebel group and the
Karen community in Yangon on Wednesday denied reports that a delegation of
the group has been detained in the capital.

"They are not detained. They even had a meeting with government officials
led by Brig Gen Kyaw Thein this morning," a source close to the Karen
National Union delegation said. (Kyodo News)

____________________________________

October 21, British Broadcasting Corporation
Burma ends rebel talks early

Burma's military has cut short talks with the Karen National Union (KNU),
the nation's largest rebel group.

The move appears to be connected to the surprise dismissal of Prime
Minister Khin Nyunt on Tuesday.

A 16-member Karen delegation was told to leave Rangoon and return to the
KNU base on the Thai border.

The KNU, which has been fighting for autonomy for more than 50 years, is
the only major ethnic group yet to sign a formal ceasefire with the ruling
junta.

Burma's military rulers announced on Tuesday that Khin Nyunt had left his
post for "health reasons", and was being replaced by the more hardline Lt
Gen Soe Win.

But officials in Thailand said Khin Nyunt had been forced from office as a
result of a power struggle with the country's top general Than Shwe, and
was under house arrest on charges of corruption.

Khin Nyunt was seen as responsible for persuading 17 ethnic groups to sign
ceasefire agreements with the military regime.

His departure has ignited fears that the military will now take a tougher
line against ethnic groups opposed to the current regime.

So far no pact has been signed with the Karen rebels, although the two
sides agreed a provisional truce in January.

The KNU delegates were in Rangoon for talks on the ongoing peace process.

But on Monday the junta asked the KNU delegation to leave the capital
because it was not ready for a meeting that was due to start that day,
according to spokesman Nierdah Mya.

"The talks have not been held because the government has political
problems," Mr Nierdah told the French news agency AFP.

Ethnic minority groups make up about a third of Burma's population of 50
million.

____________________________________

October 21, Associated Press
Karen rebels return from Yangon after peace talks cut short by Myanmar
prime minister's removal

Mae Sot: A delegation from the Karen National Union ethnic rebel group
returned Thursday from Myanmar after the junta cut short a fresh round of
peace talks because of the removal of the country's prime minister, Karen
officials said.

The 16-member delegation met informally with Myanmar negotiators earlier
this week, but were told that further talks had to be postponed because
Prime Minister Gen. Khin Nyunt had been dismissed, said David Htaw, the
KNU's foreign affairs chief and head of the delegation.

"We have arrived back in Mae Sot safe and sound," he said, referring to
the Thai border town where the group is based. "We understood their elders
were busy because of sudden (political) changes, and they asked us to meet
again next time but the date has not been fixed yet."

In a surprise move, the military junta said Tuesday it was replacing the
pragmatic Khin Nyunt with the more hardline Lt. Gen. Soe Win.

The KNU, which has been fighting for autonomy in eastern Myanmar for more
than 50 years, is the only major ethnic guerrilla group that hasn't signed
a formal cease-fire with the government. They began peace talks late last
year, and both sides have declared a provisional truce.

Brig. Gen. Kyaw Thein, a military Intelligence official, told the
delegates in Yangon that Myanmar's "policy of national unity has not been
changed," Htaw said. "Our cease-fire talks will go on."

Earlier, sources close to the mediators in Yangon said on condition of
anonymity that the two sides met on Tuesday and Wednesday and that the
talks had gone smoothly. They denied that negotiations had been canceled
because of Myanmar's political situation.

The talks were scheduled to last one week.

Htaw said the rebels presented the junta with a renewed call for an end to
fighting in areas along the Thai border and other demands. The Myanmar
side told the delegates there would be no military operations in Karen
State, he said.

"We can say it was a successful trip," Htaw said.

Reports that the rebels had been put under house arrest were "totally
wrong," he said, adding that "there was no restriction on our delegation
-- we could go wherever we liked."

The KNU delegates left Yangon on Wednesday for the capital of Karen State,
Pa-an, where they spent the night before returning via Myawaddy, a town
adjacent to their base in Mae Sot.

_____________________________________
DRUGS

October 21, Organisation of Asia-Pacific News Agencies
Fear of rising drug trafficking after power change in Myanmar

Chiang Mai: The Thai authorities fear that some ethnic minority groups in
Myanmar may produce more illegal drugs and try to smuggle them into
Thailand.

As a result of the political upheaval in Rangoon earlier this week, some
ethnic groups may refuse to sit at the negotiation table with the new
government, the Director of the Office of the Narcotics Control Board
(ONCB)'s Northern Office, Pithaya Chinawat, told TNA yesterday.

But the Thai anti-narcotics official remains confident that the new
Myanmar government will continue to cooperate with Thailand and the
international community in tackling the drugs problem.

The ONCB plans to map out a detailed strategy for Thailand's North in
order to block the smuggling of narcotics along the border areas.

There will also be a concerted effort made to arrest major drug producers.

They will be severely dealt with, including the seizure of their assets
through the use of the anti-money laundering laws and other tax measures,
Mr. Pithaya said.

_____________________________________
BUSINESS / MONEY

October 21, Agence France Presse
Thailand to review future lending to Myanmar: PM

Bangkok: Thai Prime Minister Thaksin Shinawatra has ordered the state-bank
controlling foreign loans to review its lending exposure in Myanmar, where
the premier was sacked and arrested on corruption charges.

EXIM Thailand said Wednesday that outstanding debt to Myanmar's junta and
private sector totalled 6.16 billion baht (149 million dollars), with many
loans granted during the tenure of Myanmar's disgraced General Khin Nyunt.

"I have instructed EXIM, like any other commercial bank, to take extra
precautions and to take action if they detect any irregularities which do
not benefit projects," Thaksin told reporters, adding existing loans would
not be scrutinized.

"There is no need to review the loans as we did not lend money to the
prime minister but to Myanmar as a country," he said.

Myanmar's former premier General Khin Nyunt, was sacked Tuesday and put
under house arrest for alleged corruption, according to Thai officials,
following a power struggle in the top ranks of the junta.

Myanmar state media said Tuesday Khin Nyunt had retired for "health
reasons" -- despite being the only one of the junta's top three leaders
without health problems -- to be replaced by hardliner Lieutenant General
Soe Win.

"EXIM Thailand... will closely monitor any change in economic policy
following the latest development (in Myanmar)," the bank said in a
statement.

Some of the loans are aimed at benefitting the Thai economy, such as a 339
million baht loan to finance Myanmar's import of Thai-originated capital
goods and related services, the bank said.

_____________________________________

October 21, Thai News Service
Myanmar halts imports of Thai goods

Myanmar has ordered a temporary halt to Thai goods crossing through the
Mae Sai checkpoint in Thailand's northern province of Chiang Rai, because
of the political turmoil, according to a senior customs official.

However, tourists are still being allowed cross to and from Myanmar at the
Tachilek border crossing, the customs officer, Kiattichai Phongpraphai,
told TNA.

Between five and ten million baht is normally spent daily, according to
Mr. Kiattichai before the political uncertainty disrupted business.

One major Thai exporter of construction material to Myanmar told TNA she
was worried by the ban. She said she had just delivered a large amount of
sample products to her clients in Myanmar, and had not yet been paid for
the goods.

Thai-operated hotels in Tachilek are closely monitoring the situation to
see whether they should temporarily suspend business and send the 200 or
so Thai staff home.

_____________________________________
REGIONAL

October 21, Kyodo News
ASEAN's image hurt by shakeup in Myanmar, Malaysia says

The image of the Association of Southeast Asian Nations has been dented by
Myanmar's sacking of Khin Nyunt as prime minister, Malaysian Foreign
Minister Syed Hamid Albar said Thursday.

''I think it has hurt us because of the suddenness of the thing. All of us
were caught by surprise that there is a change of the leadership and the
news that he has been arrested because of corruption and put under house
arrest,'' he told reporters when asked to comment on Tuesday's removal of
Khin Nyunt.

Khin Nyunt was replaced by Soe Win on Tuesday after just over a year in
the job, a move widely seen as a bid to shore up the power of junta
strongman Sen. Gen. Than Shwe. Soe Win is viewed as a trusted aide of Than
Shwe.

Syed Hamid admitted that the latest development in Myanmar has placed more
burden on ASEAN but stressed that ASEAN will abide by its noninterference
policy.

''I think people were waiting for reaction from ASEAN countries but
Myanmar has come up with a statement to say that it was at the request of
the Khin Nyunt himself to ask for retirement on health grounds. We are not
going to question the veracity of that statement from the Myanmar
government,'' he said.

Syed Hamid said it is up to Myanmar now to prove to the world that it is
still committed to hold talks with the opposition and to move forward the
democratic process under Khin Nyunt's ''road map for democracy.''

''It's important for the Myanmar government to show to the international
community that the reconciliation and the road map process is going to be
continued. There must be that commitment. ASEAN is not going to tell
Myanmar how they should do things,'' he said.

ASEAN also will not ditch Myanmar as Syed Hamid said, ''They are part and
parcel of our ASEAN security community.''

ASEAN's image now ''depends on what Myanmar does,'' he added.

Earlier, Syed Hamid held talks with visiting Chinese State Councilor Tang
Jiaxuan, during which the Myanmar issue came up for discussion.

Syed Hamid said both countries agree that the political shakeup in Myanmar
is an internal affair of the country ''but at the same time we hope that
the change will not affect the reconciliation process and the road map to
democracy.''

_____________________________________

October 21, Agence France Presse
Myanmar military leader Than Shwe expected to visit India

New Delhi: Myanmar's military leader General Than Shwe is expected in New
Delhi Sunday for a five-day state visit focused on trade and the issue of
Indian rebels operating out of Myanmar, an Indian official said.

The trip had been cast in doubt after the ousting of Prime Minister Khin
Nyunt Monday for alleged corruption.

But an Indian foreign ministry official said Thursday that while the trip,
which would be the first state visit from Myanmar in 25 years, was not yet
finally confirmed, "it is likely from Sunday".

Than Shwe is set to hold talks Monday with Prime Minister Manmohan Singh
and also visit Bombay and the northern city of Agra, home to the Taj
Mahal.

India and Myanmar have forged several agreeements in the last decade,
ranging from counter-insurgency to trade and investment.

India is expected to put pressure on Than Shwe for a crackdown on
separatist insurgents, whom it claims carry out hit-and-run guerrilla
strikes on security forces in India's northeast from bases in Myanmar.

Myanmar has repeatedly assured New Delhi it would take all measures to
oust Indian rebels if they were in that country.

India has also been exploring transport corridors through Myanmar, a
potential gateway to East Asian countries with which New Delhi is planning
to form a free trade region.

India has helped Myanmar to mordernise its antiquated railway system and
extended loans to help it improve its telephone network.

The ousting of Khin Nyunt, who backed dialogue with detained opposition
leader Aung San Suu Kyi, was seen as a move by Than Shwe to tighten his
grip on power.

_____________________________________
INTERNATIONAL

October 21, Reuters News
Myanmar's new PM linked to Suu Kyi attack - Darren Schuettler

Bangkok: Myanmar's new prime minister, Soe Win, is a trusted deputy of
junta strongman Than Shwe and has been blamed for an attack on
pro-democracy leader Aung San Suu Kyi's convoy last year.

Lieutenant General Soe Win, who shot to notoriety in 1988 when he helped
crush a democracy uprising, replaced Khin Nyunt who was sacked as premier
this week, dashing faint hopes for reform in the military-ruled country.

The United States said Soe Win is believed to have been directly involved
in the May 2003 attack by pro-government youths on Suu Kyi and her
supporters near Mandalay, leading to her detention.

"We see no indication that the leadership change will have any tangible
impact on relations between the junta and the democratic opposition,"
State Department spokesman Richard Boucher said in Washington on
Wednesday.

"We note that the new prime minister was reportedly directly involved in
the decision to carry out the brutal attack on Aung San Suu Kyi and her
convoy on May 30th, 2003."

The U.S. blamed "government-affiliated thugs" for the attack in which
exiled dissidents say dozens were killed by youths wielding bamboo and
iron rods. The junta says four people died.

Rights activists say the attack was orchestrated by the Union Solidarity
and Development Association (USDA), a political arm of the junta in which
Soe Win is a senior figure. He was also regional commander of the area
where the incident occured.

"The only slight chance Myanmar could transform into a democratic country
has ended after the man who commanded the paramilitary troops that wanted
to kill Suu Kyi has become the prime minister," said Sunai Phasuk, a Thai
consultant for the New York-based Human Rights Watch.

"A FRIENDLY GUY"

Southeast Asian leaders, who have seen little gain from their policy of
constructive engagement with Yangon, urged the junta to implement its
democracy "roadmap" despite the purge of Khin Nyunt who unveiled it last
year.

Thai Foreign Minister Surakiart Sathirathai said he was confident Soe Win
would carry on with the roadmap, a seven-step plan to civilian rule
denounced as a sham by some Western critics because it has so far excluded
Suu Kyi.

"He's quite a nice guy, friendly. We have known each other for quite some
time. He is not a typical stern army type of guy. He is not authoritarian.
He has an international view," Surakiart told Thai radio on Thursday.

But Soe Win has shown little inclination to negotiate with Suu Kyi's
National League for Democracy (NLD), which won elections in 1990 but was
barred by the military from taking power.

In a profile of Soe Win, the Thailand-based Irrawaddy magazine quoted him
as once telling a USDA meeting that the junta "not only will not talk to
the NLD, but also would never hand over power to the NLD".

Born in 1949, Soe Win entered the Defence Services Academy in 1965 and
quickly rose through the ranks.

When resentment against military rule boiled over into pro-democracy
protests in 1988, he commanded an infantry division that helped crush the
uprising in the capital Yangon, according to Irrawaddy. Thousands of
people were killed in the nationwide military crackdown.

Soe Win joined the ruling military council in 1997.

When Khin Nyunt was appointed prime minister by Than Shwe in in August
2003 - a demotion according to some analysts - Soe Win replaced him in the
powerful position of Secretary One.

Soe Win shadowed Khin Nyunt on several key committees and sometimes
accompanied the premier on foreign visits. His last trip was at the head
of a military delegation to China in July.

Some saw it as the beginning of Than Shwe's bid to consolidate his power
in the government and armed forces which resulted in this week's purge of
his rival, Khin Nyunt.

"Soe Win is a Than Shwe loyalist," said retired World Bank economist and
Myanmar watcher Bradley Babson. "There has been a pattern of Than Shwe
loyalists put in key positions. He wants the whole pie."

_____________________________________

October 21, Far Eastern Economic Review
Japan Takes Flak for Burma Aid

A prominent United States senator has blasted Japan for allegedly funding
at least 28 new assistance projects in Burma worth more than $18 million
over the past year. "Some of these funds appear to have been provided
directly to the illegitimate and repressive State Peace and Development
Council, SPDC," Sen. Mitch McConnell charged in an October 8 statement
published in the Congressional Record.

He was referring to the military regime that governs Burma.. "Why is Japan
providing assistance to Burma and the thugs in Rangoon when Burmese
democracy leader Daw Aung San Suu Kyi and other members and supporters of
the [opposition] National League for Democracy, NLD, remain imprisoned?"
the powerful head of the Senate's Foreign Operations Appropriations
Subcommittee asked. "It is time Japan gets with the programme and
pressures the SPDC to begin meaningful reconciliation with the NLD--the
only legitimately elected leadership of that country," McConnell warned.

The military nullified a landslide NLD election victory in 1990 and has
held Suu Kyi under house arrest for much of the time since. A Japanese
government spokesman stresses that all Tokyo's aid to Burma is
humanitarian and "is provided under strict conditions . . . There's no
question of it getting diverted."

_____________________________________
OPINION / OTHER

October 21, Bangkok Post
Give Burma a clear message

Bangkok--The rise of hardliners in Burma is bad news for anyone hoping for
national reconciliation and participatory government in the impoverished
country. As an immediate neighbor with some leverage, Thailand must show
the way in dealing with the new leadership.

Gen. Khin Nyunt, removed as prime minister and the head of military
intelligence on Tuesday, had brokered most ceasefire agreements with
ethnic minorities, and favored a political role for Aung San Suu Kyi, the
charismatic opposition leader.

The appointment of Lt. Gen. Soe Win as prime minister is expected to
change all this. The former air defense chief is a protege of Senior
General Than Shwe, the chairman of the State Peace and Development Council
who is known to oppose any political role for Suu Kyi. Ethnic leaders,
many of whom are personally committed to Gen. Khin Nyunt, do not trust the
senior general.

Some were thinking of withdrawing from the national convention that was to
resume the drafting of a Constitution next month. Critics have dismissed
the convention as a sham because it excluded Suu Kyi's National League for
Democracy, which won the 1990 elections by a landslide.

The removal of Gen. Khin Nyunt has also raised concerns for the safety of
Suu Kyi and her deputy Tin Oo, both of whom have been under house arrest
since May 30 last year, their detention engineered by hardliners.

Kofi Annan, the United Nations secretary general, appealed to the Burmese
authorities to release them ''without further delay.'' The U.N. chief also
called on the generals to ''remain committed to the process of national
reconciliation and democratization.''

Prime Minister Thaksin Shinawatra can help by opting for pressure rather
than accommodation. The leverage he can apply lies in the controversial
credit line of four billion baht ($97.5 million) that his government has
extended to the junta in Rangoon for infrastructure development. The
credit was extended on condition that the materials are bought in Thailand
and that the loans be repaid within two years at an interest rate of 3
percent.

The controversy centers on a 600-million-baht loan that the Export-Import
Bank of Thailand has approved for Burma to enable its purchase of a
broadband satellite system from a company belonging to the prime
minister's family. The bank has admitted disbursing 338 million baht to
date, but it is not clear if this has benefited the company. To press for
constructive change in Burma, the prime minister could order a stop to any
further disbursement of the credit line.

The prime minister should also drop Burma from the economic cooperation
strategy he initiated last year. The plan dramatically expands the
tariff-free privileges on imports from immediate neighbors. Under the
plan, Burma's tariff-free exports increase to about 300 items from 72,
Cambodia's to 249 from 48 and Laos's to 150 from 26.

He should also persuade other member states in the Association of
Southeast Asian Nations to withhold economic cooperation with Burma until
their commitment to political reform is shown. As a group, ASEAN must make
clear that a Burma uncommitted to reform cannot chair the grouping in 2006
as scheduled.

The squeeze on economic cooperation, however, must not extend to
humanitarian issues. Help to fight life battles like HIV/Aids must
continue.

While stepping up economic pressures, Thailand must raise its guard at the
long border with Burma. The rise of hardliners in Rangoon increases the
potential for conflict with ethnic groups in the region spilling over into
Thailand, including shelling, hot pursuit or flight of armed combatants
and civilian refugees.

Until the new leadership in Rangoon proves that it is committed to
desirable change, the prime minister must resist any temptation to rally
to them. Any telephone contact or visit would be taken as recognition. The
change in Rangoon is an opportunity for Thailand, and ASEAN, to come clean
by putting people before private interests.

_____________________________________

October 20, The Nation
Cloud over peace pacts, democracy

The sacking yesterday of Burmese Prime Minister Khin Nyunt from the inner
circle of the military junta has sent an eerie chill through the troubled
nation , and region.

Domestically, opposition leader Aung San Suu Kyi and her campaign for
democracy is likely to hit a brick wall because Khin Nyunt, the man who
opened communications between the junta and the National League for
Democracy (NLD), has been sidelined.

The generals who launched the purge against Khin Nyunt are the same people
who spearheaded Suu Kyi's arrest in May last year.

Lt General Soe Win, who was named yesterday as Khin Nyunt's replacement as
prime minister, rallied the Union Solidarity Development Association in
their brutal attack on Suu Kyi and her supporters in northern Burma last
year, prior to her being placed under house arrest. The mob was a pet
project of his boss, overall leader Senior General Than Shwe.

Before his elevation to premier yesterday, Soe Win was appointed Secretary
One of the ruling State Peace and Development Council (SPDC) in August.

The ongoing dialogue between the junta and the Karen National Union (KNU)
is also at stake, because Khin Nyunt orchestrated just about all the
cease-fire agreements with the armed rebel group. Five senior members of
the KNU are currently in Rangoon "waiting to see how it goes", according
to a spokesperson last night.

A senior officer of the United Wa State Army (UWSA), an insurgent group
that obtained a cease-fire agreement with Rangoon in 1989, described the
purge of Khin Nyunt as a "very serious matter" that could redefine the
agreement reached through the former premier.

Thailand's connection with Burma over the last three years has been
largely defined by Prime Minister Thaksin Shinawatra's "personal
diplomacy", which basically meant having faith in Khin Nyunt's ability to
secure whatever arrangements were made.

It was Thaksin who stuck his neck out for Khin Nyunt at the Asean summit
in Bali last year, calling on the international community to give Rangoon
breathing space to push through its so-called "road map" for democracy and
national reconciliation.

Now that Khin Nyunt is out of the picture, the future of Thai-Burmese
relations is likely to come under intense pressure.

Bangkok yesterday delayed the next instalment of the Export-Import Bank
loan to finance a project. The initiative was supposed to be headed by
Khin Nyunt's son, Ye Naing Win, who was reportedly detained yesterday with
his father.

News of the purge had an immediate effect on Thaksin's family business
Shin Satellite, the Thai supplier for the project. Its stock dropped to
Bt16.50 at closing yesterday from Bt16.80 on Monday. ShinSat shares had
peaked at Bt17.10 in morning trade before plunging after government
spokesman Jakrapob Penkair relayed news of developments in Rangoon.

Internationally, there are more repercussions. United Nations' special
envoy Razali Ismail, who relied on Khin Nyunt as his point of entry into
Burma's top political circle, will have to go back to the drawing board.

Thailand's "Bangkok Process", the road map to democracy and other
initiatives aimed at giving Rangoon a more democratic future, are now
virtually dead with the departure of Khin Nyunt and former foreign
minister Win Aung, who was ousted on September 18 and replaced by a field
commander.

Win Aung allegedly warned senior diplomats some weeks back that Khin
Nyunt's position as premier was shaky , and yesterday his words were shown
to be true.

_____________________________________

October 21, Asian Wall Street Journal
China's Burmese and Korean Problems

China's claim that it can be a stabilizing force in Asia will be judged in
no small degree by how it wields its influence with two thuggish regimes
bankrolled by Beijing -- North Korea and Burma. With the first, China
seems to be making some progress of late. But we can't say the same thing
about the narco-generals in Rangoon.

With North Korea, this week has shown why keeping Beijing involved efforts
to make Pyongyang give up its nuclear program is essential. The No. 2
official in the North Korean regime, Kim Yong Nam, is currently in Beijing
for talks aimed at bringing his regime back to the negotiating table.
North Korea skipped a round of so-called six-party talks that was to be
held last month because it wanted to see who wins the Nov. 2 elections in
the U.S. The talks unite the United States, China, Japan, Russia and South
Korea to bring pressure on the Stalinist regime to abandon its nuclear
weapons program.

But with Secretary of State Colin Powell heading to Beijing later this
week to check on progress, China's government seems to have been working
overtime to make sure that North Korea doesn't just try to run out the
clock. As North Korea's last friend in the world, China has a lot of
leverage.

This is why Chinese newspapers this week are trumpeting North Korea's
claim that it is still interested in a peaceful solution. It is unclear,
of course, whether Chinese arm-twisting is making dictator Kim Jong Il cry
uncle for sure this time, or if he's once again blowing smoke into China's
eyes, as he has in the past. But China's good offices are to be welcomed.

Burma's festering situation should not be ignored, however. There, too,
China holds most of the cards. Cross-border trade is booming, helping
Rangoon's military dictators to stay in power. But that hasn't prevented
new political intrigues. This week, the hard-line general and spy chief
that Beijing had been cultivating as the best of the lot, Khin Nyunt, was
overthrown as prime minister by even more hard-line colleagues who
despised him for his relative moderation.

The phrase "moderate Burmese general" requires more than the usual grains
of salt. Khin Nyunt played an important role in crushing the pro-democracy
protests in Burma in 1988. But compared to the Neanderthals around him,
was a sophisticate who understood that a show of reasonableness eased
relations with the West.  He tried to burnish the junta's image abroad by
meeting with the imprisoned dissident Aung San Suu Kyi, and tried to make
it appear as if the generals were seeking her counsel. Ms. Suu Kyi won
Burma's last elections, and should be leader of the country, not under
house arrest.

But Khin Nyunt's baby steps didn't suit two other generals who were really
in charge, Than Shwe and Maung Aye, so they removed a prime minister.The
palace coup was a slap in the face to China, which had of late invested
quite a lot in Khin Nyunt. Sensing that he was in trouble, China
bestowed trade deals and soft loans on Khin Nyunt when he was in Beijing
just last month.

It should serve as a lesson to China that despite being one of the few
countries in the world not to impose sanctions on Burma, and being one of
the largest suppliers of military hardware, Rangoon's generals have
thumbed their noses at Beijing.

China may feel it must be tolerant of Pyongyang and Rangoon because it too
suffered the world's displeasure after Tiananmen. But if China's new
rulers really are trying to put all that behind, they must realize that
when their Korean and Burmese friends misbehave, it reflects badly on
Beijing as well.

_____________________________________

PRESS RELEASE

October 21, Reporters Sans Frontieres Asia
New military government closes 17 publications

Reporters Without Borders and the Burma Media Association have expressed
dismay as the new military government shut down 14 newspapers indefinitely
and three others temporarily.

The "hardliners" in the military junta also retook control of the
censorship bureau, previously in the hands of associates of General Khin
Nyunt, who was put under house arrest on 19 October.

The two press freedom organisations termed the step as 'unfair, sudden and
brutal' towards an entire section of the privately-owned press in Burma.
It looked like an act of revenge on the part of the new Prime Minister,
Soe Win towards media close to his predecessor.

"The press should not be made a victim of score-settling. We call for the
immediate reopening of all these newspapers and an end to advance
censorship," the two organisations said in a letter to the new prime
minister.

According to information obtained by the two organisations, the suspended
publications include Living Color, New Gazette, First Eleven Journal,
Interview Journal, Reader's Journal, Idea Magazine, The Voice Journal,
Naing Ngan Da-Kar Journal and Kumudra. For example, the holder of the
publishing licence for the magazine Living Color was the son of Khin
Nyunt, Ye Naing Win. In other cases, the publishers had to obtain
publication licences belonging to associates of Khin Nyunt or agents of
the Military Intelligence Service (MIS).

Myanmar Times, jointly owned by an Australian publisher and the Office of
Strategic Studies (OSS), was shut down for one week. "We were told that
the government is in the process of restructuring the censorship office
and that is the reason why Myanmar Times was closed temporarily, said one
member of staff.