BurmaNet News, July 6, 2005

[Editor]

July 6, 2005 Issue # 2754


INSIDE BURMA
Irrawaddy: More than 240 Burmese political prisoners released
Mizzima: Move to new military town kept secret
Kaladan: Substitute of BSI in the place of MIS

ON THE BORDER
Irrawaddy: SSA-N soldiers arrested in border town
Irrawaddy: Chinese crackdown on Burmese casinos only partly successful

BUSINESS / FINANCE
Asia Pulse: Myanmar may import diesel from India: sources
Xinhua: Dhaka stays away from trans-Myanmar gas pipeline talks in New Delhi

INTERNATIONAL
Reuters: Rice to visit Asia, but skip ASEAN forum

OPINION / OTHER
Bangkok Post: Junta in a fix how to fight corruption

PRESS RELEASE
RSF & Burma Media Association: Sein Hla Oo and Aung Pwint finally freed,
but reports of Win Tin’s release denied

____________________________________
INSIDE BURMA

July 6, The Irrawaddy
More than 240 Burmese political prisoners released

Burma’s junta released more than 240 political prisoners on Wednesday, and
the well-known 75-year-old journalist Win Tin, who has served 16 years of
a 20 year sentence, was reported to be among them.

A National League for Democracy spokesman, Myint Thein, said that 118 of
the 240 had been released from Insein prison and 43 from Thayet prison. He
said the NLD had heard that a total of 400 political prisoners would be
released during the day.

Among the released were prominent and veteran political prisoners, said
the NLD and family sources. The prisoners were released from Wednesday
morning onwards from Insein, Mandalay, Myingyan, Thayet, Taungoo and Kalay
prisons.

Veteran politician Hla Shwe, NLD member of parliament Sein Hla Oo and Dr
Khin Zaw Win were among the released. Sein Hla Oo and Khin Zaw Win were
released form Myitkyina prison and Hla Shwe from Thayet.

Hla Shwe told The Irrawaddy by phone a few hours after he was released:
“Out of the blue, we were told that we were to be released at 7 am.” Hla
Shwe, who is in his 70s, a leader of a political party banned after 1988,
had served eight years of a 14 year sentence.

Hla Shwe said 43 political prisoners were freed with him, while 16
political prisoners remained in Thayet prison. A further 46 political
prisoners were also released from Myiangyan prison, according to family
members.

The Director General of the Prison Department briefed dozens of political
prisoners in Insein prison on Wednesday morning. Myint Htay, an NLD member
arrested in 2003, who was among those released on Wednesday afternoon,
said the prisoners were being released under a special amnesty and
unconditionally.

Myint Htay told The Irrawaddy by phone that renowned journalist and senior
NLD member Win Tin and a further nine political prisoners remained in the
prison but had been summoned to meet Home Minister Maj-Gen Maung Oo,
indicating that their release was also imminent.

NLD spokesman Myint Thein said that Win Tin and the other nine had been
brought to the meeting in a room within the prison compound.

There has, however, been no independent confirmation so far of Win Tin’s
release, and Win Tin’s relatives and friends said they had had no contact
with him.

The 75-year-old, the longest serving political prisoner, has been awarded
the World Association of Newspapers 2001 Golden Pen of Freedom and also
the 2001 UNESCO Guillermo Cano World Press Freedom Prize.

On July 4, when he marked his 16th year of imprisonment, several rights
groups, including London-based Amnesty International, called on the junta
for his immediate release.

The NLD also said: “We are happy and welcome the release of the political
prisoners.” The Assistance Association for Political Prisoners (Burma),
based in Thailand, said: “AAPP welcomes the release of these political
prisoners.” Until today’s release, the number of political prisoners in
Burmese jails topped 1,300, according to the AAPP.

____________________________________

July 5, Mizzima News
Move to new military town kept secret

The secrecy behind building a new military township in Pyinmanar in
central Burma has led the military junta in Burma to warn ministerial
staff not to talk to the media about its plans to move. Anyone caught
talking to the media about the new township faces punishment.

Notices have been put up in all government offices, following rumors about
the junta shifting its military headquarters to the interior in Pyinmanar,
244 miles north of Rangoon.

“Individual staff need to submit the names of their companions along with
their job description. They also have to submit the names of their family
members along with their work description,” said an employee working in
the Agricultural Ministry, which is one of the ministries that will move
to the new town.

“Those who have already submitted their names cannot resign from their
jobs. If they do so, they will be labeled as rebels,” the employee added.

The junta in a cabinet meeting in late June allotted US$17 million for
construction of the new military town in Pyinmanar.

The junta also reportedly restricted the movement of staff of the
ministries that are to be moved to the new town. The new town, which has a
hospital, school, staff quarters and other city infrastructure, is being
guarded by the some infantry battalions of Military Brigade No. (66),
which has been transferred from its original base in Pyi (Prome) town. The
engineering, communication, transport and supply battalions accompanied
the military brigade.

According to an observer, nothing in the town can be seen from the
Rangoon-Mandalay highway except a big signboard, which says "Brigade
(66)."

The new military town, constructed along the Rangoon-Mandalay highway,
near Kyatpyay village, inorth of Pyinmana, is likely be the future capital
of Burma, some analysts have suggested.

A total of five ministries – Defense, Forestry, Agriculture, Energy and
Information – will move to the new town by October.  Construction of the
town started in late 2002.

____________________________________

July 6, Kaladan News
Substitute of BSI in the place of MIS

Maungdaw, July 6: Bureau of Special Investigation (BSI) is being
substituted for Military Intelligence Service (MIS) and starting their
activities in Northern Arakan.

Recently, the Village Peace and Development Council (VPDC) members
including Chairmen and Secretaries have been ordered by BSI to inform them
the members who were cancelled from the family lists and if there do
returnees after working in foreign countries, said a VPDC member
preferring not to mention his name.

Besides, the BSI members sometimes went to villages and observed the
village situation. In the mean time, some villagers were arrested by said
BSI while they were going to visit their relatives nearby villages and
were brought to their camp by accusing them coming from foreign country.
After taking Kyat 50,000 to 100, 00 they were released, said a villager of
Inn Din village who gave bribe to BSI to set free.

On the other hand, the BSI also extracted money from the villagers who
held ceremony regarding social welfare for collection money and others
without getting permission from BSI. At least, the villagers were fined
Kyat 50,000, said another villager of Myint Hlut village who has come
recently into Bangladesh for medical treatment.

On 10th June 2005, the BSI seized a motor bike from a new couple named
Azizul Rahaman son of Nurul Islam hailed from Tha Pay Taw (Bassora)
village of Maungdaw Township alleging him that he has no license, which
has been given by his father-in-law in the marriage ceremony as a gift. On
15th June 2005, they also seized another motor bike from son-in-law of
Eliyas hailed from Foira Para of Myint Hlut village tract of Maungdaw
Townshiip, by similar accusation, said a trader from Maungdaw town.

In fact, the said motor cycles were brought to northern Arakan from
Rangoon after getting documents from concerned authorities and those were
checked by customs on the way to Maungdaw and Buthidaung Townships. After
arrival in northern Arakan, those aforesaid motor bikes became into
documents less while those have been reached into Rohingya youths, the
trader further said with patience.

____________________________________
ON THE BORDER

July 6, Irrawaddy
SSA-N soldiers arrested in border town - Nandar Chann

Burmese authorities on Tuesday arrested three armed members of ethnic
minority group the Shan State Army-North, according to a Shan official.

Vice-chairman of the SSA-N, Col Sao Khai Hpa, his son-in-law and two
personal assistants, were arrested by police at 105 Mile Gate in the
Burma-China border town of Muse on Tuesday. Police subsequently released
Col Sao Khai Hpa, giving him permission to return to Lashio in northern
Shan State.

Speaking to The Irrawaddy by phone, Capt Sai Win Ngwe, a liaison officer
for the Shan State National Army, said the group were frequent visitors to
Muse, where they kept an office and were arrested “because they were
carrying weapons.” He went on to say that Sao Khai Hpa had chosen to
remain in the town and is understood to be talking to the police about the
release of the jailed men.

It has also been reported that the chairman of the SSA-N, Maj-Gen Loimao,
met with Maj-Gen Myint Hlaing, of the government’s Northeastern Region
Command in Lashio, to discuss the arrests.

“The authorities have been watching Shan organizations closely and there
are now more restrictions on them,” Sai Win Ngwe said, citing the use of
photos at regional checkpoints to identify blacklisted individuals.

Tension between Shan ceasefire groups and the military government has
escalated since Maj-Gen Sao Hso Ten, president of the Shan State Peace
Council was arrested for illegally attending a meeting in Taunggyi in
early February.

The SSPC is an umbrella group comprising the SSA-N and SSNA.

____________________________________

July 6, Irrawaddy
Chinese crackdown on Burmese casinos only partly successful - Khun Sam

China’s efforts to prevent its citizens gambling at casinos in Burmese
border towns are having only limited success, according to reports from
the region.

The reports conflict with a statement by Guo Bin, deputy director of the
Security Division of the Yunnan Public Security Bureau, who told the
official Chinese news agency Xinhua:  “Gambling outside the borders of
Yunnan has decreased dramatically after a six-month-long intensive
crackdown.”

Xinhua said Burmese authorities in Shan State were co-operating with the
Chinese anti-gambling campaign, denying entry by Chinese visitors to
casinos in Monglar, in southern Shan State. Six casinos bordering
Xishuangbanna prefecture of Yunnan Province had been closed down, as well
as 80 other gambling establishments in Burma and Laos, Xinhua reported.

In Kachin State, however, casinos are open as usual for business,
welcoming thousands of Chinese a week, according to sources in Laiza and
the Chinese border town of Ruili.

The Kachin State border towns are under the control of the Kachin
Independence Organization, which earns big sums of money from the casino
operations and resists Chinese pressure to develop alternative economic
sources of income.

China complains that vast sums of yuan disappear yearly into Burmese
casino coffers and reappear in foreign bank accounts.

____________________________________
BUSINESS / FINANCE

July 6, Asia Pulse
Myanmar may import diesel from India: sources

New Delhi: Myanmar is likely to import diesel from India but has said no
to Indian firms exploring in onland blocks in that country.

India's BPCL may supply 120,000 tonnes of diesel per annum from its
subsidiary Numarigarh Refinery to Mayanmar, sources said after a marathon
meeting between Petroleum Minister Mani Shankar Aiyer and Myanmar's
visiting Energy Minister Lun Tni here.

However, Myanmar will continue the ban on foreign companies exploring in
onland blocks.

Oil India Ltd, Indian Oil Corp and GAIL had submitted bids for onshore
exploration blocks RSF-6 and RSF-9 last month.

____________________________________

July 6, Xinhua General News Service
Dhaka stays away from trans-Myanmar gas pipeline talks in New Delhi

Dhaka: Bangladesh has decided to stay away from the talks on the
much-talked-about trans-Myanmar gas pipeline project scheduled to be held
in New Delhi Wednesday.

Dhaka received an invitation Tuesday to join the talks but expressed its
inability to join the meeting due to time constraint, The Financial
Express reported Wednesday.

Mahmudur Rahman, adviser to the Energy and Mineral Resources Division and
executive chief of the Board of Investment, conveyed Bangladesh's decision
to Indian High Commissioner Veena Sikri when she met him Tuesday.

Myanmar Energy Minister Lun Thi goes to the Indian capital to explore an
alternative route in case Bangladesh does not join the 1.0 billion US
dollars project.

According to the original proposal, the pipeline is expected to run
through Arakan state in Myanmar via the Indian states of Mizoran and
Tripura before crossing Bangladesh to Kolkata.

The 897-km pipeline will cost about 1.0 billion dollars which includes
involvement of 350 million dollars for Bangladesh part of the pipeline.
Bangladesh may earn 125 million dollars annually as transit fee from both
countries.

Bangladesh, however, tagged three-point proposal with the tri- nation gas
pipeline project.

The proposal included reduction of trade imbalance, providing corridor for
Nepalese goods to Bangladeshi ports and access to hydro-electric potential
in Bhutan.

If India wants to bypass Bangladesh, the length of the pipeline will be
1,400 km which means India will have to construct 500 km more to reach gas
to Kolkata.

Local experts said it would be an almost impossible task to build a gas
pipeline through the difficult terrain of the northeastern region of
India.

If they feel that the route through Bangladesh will be a better option,
they will come to Bangladesh, Rahman said, adding that "we are waiting for
the outcome of bilateral negotiations between India and Myanmar."

_____________________________________
INTERNATIONAL

July 5, Reuters
Rice to visit Asia, but skip ASEAN forum - Paul Eckert

Washington: U.S. Secretary of State Condoleezza Rice will travel to China,
Thailand, Japan and South Korea this week, but will skip a key security
meeting in Southeast Asia later in the month, officials said on Tuesday.

Rice's July 8-13 visit to Asia comes amid signs of gathering momentum for
a fourth round of six-nation talks on the North Korean nuclear dispute,
possibly this month. She will hold nuclear consultations with Beijing,
Tokyo and Seoul, State Department spokesman Sean McCormack said.

However, in a development that analysts have criticized as shortsighted,
the top U.S. diplomat will send her deputy to attend the annual
Association of Southeast Asian Nations Regional Forum in the Lao capital
of Vientiane on July 28-29, U.S. officials indicated.

"The only thing she has scheduled (for late July) is Africa. There's
certainly nothing planned for ASEAN," said a U.S. official, who asked not
to be named.

A second official, without referring by name to Rice's No. 2, Robert
Zoellick, said: "I think you can count on the high-level representative
being the deputy."

The ASEAN Regional Forum brings the 10 ASEAN states together with
diplomatic and security partners from North America and Europe in the
Asia-Pacific region's only security forum.

Rice's predecessors have attended frequently in the past, and Asia-based
analysts have said a no-show would be a slap in the face to the region,
where a rising China vies with the United States for the attentions of old
U.S. allies.

CHINESE EMBRACE

In Washington, former U.S. diplomat John Tkacik called Rice's exclusion of
the Laos meeting a surprising move that would disappoint ASEAN states.

"The fact that she would go to Beijing and snub the (ASEAN Regional Forum)
is very short-sighted," said Tkacik, a researcher at the conservative
Heritage Foundation in Washington.

"It's clear that Beijing is expanding its influence in Southeast Asia and
the ASEAN states are looking for someone to balance off China's increasing
influence," he said.

ASEAN comprises Brunei, Cambodia, Laos, Thailand, Singapore, Vietnam,
Malaysia, Myanmar, Indonesia and the Philippines.

China has reached a free trade agreement with ASEAN to take effect in
2010. This week Beijing hosted a summit of Mekong River states --
Cambodia, Laos, Myanmar, Thailand and Vietnam -- and signed electricity
deals and tariff reduction plans.

A key focus of Rice's July 9-10 stay in Beijing and stops in Tokyo and
Seoul next week will be finding a way to persuade North Korea to rejoin
six-party talks.

The United States, North Korea, South Korea, China, Japan and Russia last
met in June 2004. North Korea declared itself a nuclear-armed power in
February.

"On this trip we'll consult again with other members of the six-party
talks about the way forward, but we still urge the North Koreans to return
to the table and engage in a constructive manner," McCormack said.
(Additional reporting by Saul Hudson)

_____________________________________
OPINION / OTHER

July 6, Bangkok Post
Junta in a fix how to fight corruption - Larry Jagan

Burma's generals target former ministers in corruption clean-up

Three former Burmese government ministers, including the ex-foreign
minister Win Aung, have been arrested in the past week and are expected to
stand trial for economic crimes and corruption in the near future.

The arrests come amid growing concerns that corruption has got out of hand
and is seriously affecting the country's economic development, but Burma's
top generals are divided about how far to go to counter it. The junta has
also urged Burma's businessmen to increase exports as the country's
foreign reserves seem to be running exceptionally low.

In the past few days, the former agriculture minister Nyunt Tin and his
son Thar Gyi were arrested because of the family's involvement in a
foreign exchange and import licence scam which netted more than $10
million, mainly from the government ministries and economic agencies, the
Myanmar Economic Bank and the Union of Myanmar Economic Holdings Limited
(UMEHL).

More than 30 businessmen fell for the fraud. They included many of the top
generals' children. The sons of the top military leader Gen Than Shwe, the
number two general Maung Aye's daughter, and Burma's top businessman and
Than Shwe's closest confidante, Tayza, were cheated.

The main culprit was Nyunt Tin's brother-in-law, Myo Hein, managing
director of a Singapore-based import-export company. But when the scam was
unmasked a couple of months ago, and arrest warrants issued for the those
involved, he and his family fled to Singapore.

Gen Than Shwe was furious, according to Burmese government officials. Now
he seems to have vented his anger on the ministers involved.

When Nyunt Tin was arrested, the authorities seized more than 30
unlicensed cars smuggled into the country and some five boxes of gold and
jewellery.

The former agriculture minister was sacked last September when Gen Than
Shwe started his move against Khin Nyunt, who was then the prime minister.
Nyunt Tin was sacked for excessive corruption, according to Burmese
government sources.

The agriculture minister and his family were notorious for their
involvement in corruption. Last year the minister built a new house in a
plush area in the capital. Large amounts of gold bars, pearls and precious
stones were plastered into the walls of the new building, according to his
neighbours.

The former home (interior) minister Tin Hlaing and the former foreign
minister Win Aung were also arrested though there are few details about
the charges they may be facing.

The scandal dates back to the period when Khin Nyunt was prime minister,
and the former interior minister may be accused of negligence for not
preventing the fraud.

Win Aung had retired to his home town of Tavoy, outside Rangoon, to write
and relax. His whereabouts are unknown, but if he is charged his trial
would rock the region, as he was a very popular foreign minister with
friends in most Asian governments. ''It is more than possible that both
are being questioned and will be released in due course,'' a Burmese
businessman said.

In this case, Gen Than Shwe and Gen Maung Aye are in agreement, but there
are significant differences between the two over how far to go to stem
corruption. Gen Maung Aye has been concerned about the extent of
corruption amongst the top generals' children and the abuse of government
and military power to extend concessions and privileges to them.

In recent months, Gen Maung Aye has been concerned about the son of the
third top general, Thura Shwe Mann. Aung Thet Mann has been involved in a
series of illegal and underhand dealings, including importing illicit
petroleum.

Last week, Aung Thet Mann and Tayza had their rice export licences
approved. These are the first export licences for non-government companies
since the abortive attempts to privatise the rice industry nearly two
years ago.

''It's the worse form of nepotism possible,'' complained a Burmese
businessman.

In the midst of this, the junta is having a major foreign exchange crisis.
The country's reserves have been severely depleted and are at the lowest
level for many years.

The top two generals are so worried about the country's export earnings
that they have urged the business community to earn more foreign currency,
according to businessmen in Rangoon.

Much of the country's economic activity ground to a standstill after prime
minister, Khin Nyunt was sacked and his supporters purged from the
administration.

''At least the former prime minister understood economics and supported
the country's business community,'' a Burmese businessman recently told
the Bangkok Post.

The irony is that the current crackdown on corruption comes in the wake of
punitive sentences for the country's former senior military intelligence
officers of hundreds of years, largely for economic crimes and corruption.

Months after they were found guilty, they have still not been given access
to their families.

''It's a selective crackdown on corruption and will do very little to
restore business confidence,'' said an Asian businessman with substantial
investment in Burma.

The trial of the two sons of the former prime minister Khin Nyunt, the
businessman Ye Naing Win and the military officer Zaw Naing Oo, on
economic crimes, contravening currency regulations and corruption, has
finished inside Rangoon's notorious Insein prison.

They are scheduled to be sentenced on Friday, though their verdict has
been postponed every week now for more than a month.

Diplomats in Rangoon believe there are negotiations behind the scenes
between the former prime minister and the top generals. ''There is a lot
of plea bargaining going on,'' according to a senior lawyer in Rangoon.
The verdict may have been suspended until the regime can locate the family
assets, both in Burma and abroad.

Many Asian diplomats suspect a deal may be struck with Khin Nyunt for the
return of hard currency that may have been squirrelled away, especially in
Singapore.

What is certain is that Khin Nyunt himself is still in his house in Rangoon.

A few weeks ago he was taken briefly to Insein prison, where he saw his
sons, according to Thai intelligence sources. He was returned home later
and has been there ever since.

''He's aged, grown frail and is very grey,'' said a Burmese military
officer who saw him recently.

The regime has denied Khin Nyunt the dye he used to colour his hair black.

There are also growing signs that Khin Nyunt may not be put on trial as
expected earlier. The investigation into the former prime minister has
been suspended, according to sources close to the family.

Khin Nyunt has been allowed a series of visitors in recent weeks,
including a meeting with a revered monk. Several military men have also
visited the disgraced general. All these visits have been approved by Gen
Than Shwe.

But significantly, there has been an exchange of communications between
the former intelligence chief and Gen Maung Aye.

While Khin Nyunt may yet escape being tried, he is likely to remain under
house arrest for the foreseeable future.

The renewed relationship between the two former rivals probably reflects
the growing struggle within the army over succession. With increasing
doubts about Gen Than Shwe's health, a battle for control of the army and
government has begun in earnest.

Thura Shwe Mann _ in an alliance with the new prime minister, General Soe
Win and Secretary One of the ruling State Peace and Development Council,
Lieutenant-General Thein Sein _ is tipped to succeed Gen Than Shwe.

But Gen Maung Aye seems to be determined to resist this move as long as
possible.

Until this struggle for supremacy is resolved, political reform and the
release of the pro-democracy leader Aung San Suu Kyi will be deferred
indefinitely.

_____________________________________
PRESS RELEASE

July 6, Reporters Without Borders & Burma Media Association
Sein Hla Oo and Aung Pwint finally freed, but reports of Win Tin’s release
denied

Reporters Without Borders and the Burma Media Association voiced “relief
and joy” at the announced release by Burma’s ruling military junta today
of more than 200 political prisoners including journalist Sein Hla Oo and
documentary filmmaker Aung Pwint.

“We hope these releases represent the start of a new period for the press
in Burma,” the two organisations said. “The authorities must now adopt the
necessary measures that will allow them to resume their work as
journalists. We also point out that six other journalists are still being
held by the Burmese authorities.”

Aged more than 70, Sein Hla Oo was released from Myitkyina prison (1,000
km north of Rangoon) after being held for nearly 11 years in harsh
conditions. One of his cellmates said his health got much worse while in
prison. He reportedly has diabetes and kidney problems.

Aung Pwint, whose release was confirmed by his son, was arrested in
September 1999 and convicted of “illegal possession of a fax machine” and
of “transmitting information to banned Burmese publications.”

Some sources said Win Tin might also be among those released but others
denied this. Friends and family and aides of pro-democracy leader Aung San
Suu Kyi said he was still being held in Insein prison, where he reportedly
received a visit from the interior minister today. Win Tin is Burma’s
longest-held prisoner of conscience and 4 July was the 16th anniversary of
his arrest.

Reporters Without Borders and the Burma Media Association also point out
that the Burmese junta is still holding five people who were arrested on 3
July for listening to the Voice of America and the BBC.

Over 13 years ago, Reporters without Borders created its "Sponsorship
Programme" and called upon the international media to select and support
an imprisoned journalist. More than two hundreds news staffs around the
globe are thus sponsoring colleagues by regularly petitioning authorities
for their release and by publicising their situations so that their cases
will not be forgotten.

Currently, Sein Hla Oo is sponsored by Aftonbladet, Com Radio, Agencia
EFE, Festival international du scoop et du journalisme, France Inter, Le
Progrès de cornouaille, le courrier du léon, Libération, Nord Eclair, El
Mundo, El Diario Vasco, El Triangle, Avui.

Currently, Aung Pwint is sponsored by NRJ.