BurmaNet News, September 30, 2005

[Editor]

September 30, 2005 Issue # 2814

“A humanitarian and human rights catastrophe; a threat to neighboring
countries; a proposed peaceful and multilateral response. What objection
could there be? “
- Washington Post editorial on the effort to bring Burma before the UN
Security Council,  “A plan to free Burma,” September 30, 2005


INSIDE BURMA
Irrawaddy: Rangoon condemns call for UN Security Council Action
AP: Myanmar's kyat currency crashes to historic low against US dollar
AFP: Myanmar says rights abuse claims exaggerated
Mizzima: Talks on Burma nuclear facility resume
DVB: The construction of Burma’s secret army complex to resume

BUSINESS / TRADE
Mizzima: Seminar encouraging investment in Burma held in Singapore

REGIONAL
DVB: China-Burma relationship might not be as good as before– diplomat

INTERNATIONAL
Guardian: US demands action on Burma's military junta

OPINION / OTHER
Washington Post: A plan to free Burma

____________________________________
INSIDE BURMA

September 30, Irrawaddy
Rangoon condemns call for UN Security Council Action - Aung Lwin Oo

The Burmese junta has condemned a report commissioned by former Czech
president Vaclav Havel and Archbishop Desmond Tutu of South Africa calling
on the UN Security Council to take immediate action against Burma.
Opposition parties, however, welcomed the report.

A statement issued on Thursday by Rangoon’s Ministry of Foreign Affairs
and carried by the official New Light of Myanmar on Friday said the report
was “based on misinformation by a few remaining insurgents and foreign
funded expatriates,” and was an “attempt to discredit the government.”

The 70 page report, entitled “Threat to the Peace—A Call for the UN
Security Council to Act in Burma”—released last week. The Foreign Ministry
statement described it as “counterproductive and not of assistance in the
efforts of Myanmar [Burma] towards democratization.”

The opposition National League for Democracy and ethnic exiled groups such
as the umbrella organization Committee Representing the People’s
Parliament welcomed the report, however.

“We believe that the call is based on good will to help solve the
country’s problems peacefully,” Fu Cin Sian Thang, chairman of the Zomi
National Congress and an ethnic member of the CRPP, told The Irrawaddy. He
said the government’s rejection of the report was regrettable as it
ignored the welfare of the Burmese people.

One prominent student leader, Min Ko Naing, said: “The call aims to
support the UN’s efforts to help Burma’s reform. We can work something out
in common even if we have our own differences.”

The US last week announced its intention to place the Burma issue on the
UN Security Council agenda. Testifying before a congressional hearing in
Washington, Deputy Assistant Secretary of State Eric John said the bid
would be made despite the blocking of a similar initiative in June by
Russia and China. John urged Asean and Burma’s neighbors to help achieve
democracy in Burma.

The prime minister of Singapore and the deputy prime minister of Malaysia
stressed this week that Asean’s aim was to maintain its constructive
engagement approach in dealing with Rangoon.

Min Ko Naing said Asean should regard the positive response by opposition
and ethnic groups to the call for the Burma question to be addressed by
the UN Security Council as “a reflection of the will of Burmese people.”

____________________________________

September 30, Associated Press
Myanmar's kyat currency crashes to historic low against US dollar

Yangon: Myanmar's currencey, the kyat, fell to an all-time low of 1,330 to
the U.S. dollar on the black market Friday, driving up prices of many
ordinary commodities.

The kyat had been falling gradually all year, from 880 kyats per U.S.
dollar in January to 950 in May and 1,170 in August.

Its previous low was 1,300 to the dollar was set in September 2002, after
relatives of former dictator Ne Win were convicted of high treason.

The official exchange rate for the kyat, which is not freely traded
internationally, is about 6 kyat per dollar, but most business
transactions and consumer sales are conducted at the black-market rate.
The government usually tolerates the unofficial exchange rate as the only
realistic way of conducting trade.

The government usually blames rumormongers and market manipulators for
currency instability. They normally react by warning black market dealers,
or in some cases, rounding them up and giving them long jail sentences.

A black market currency dealer, speaking on condition of anonymity because
of the illicit nature of his work, said the kyat's current fall could not
be pinned on any single reason, but the black market rate is often linked
to China's yuan, the U.S. dollar and the price of gold.

The official gold price for a tical of 24 carat gold had been 318,000
kyats (US$239, [euro]199) on Wednesday, and shot up to 340,000 kyats
(US$256, [euro]213) at the official gold coin sales center Friday morning.
One tical is equal to 0.525 troy ounces.

The higher price for imported goods due to the dollar's strength lifts the
price of local goods, including diesel fuel, medicine and food.

A gallon of diesel on the free market went up to 3300 kyats (US$2.48,
[euro]2.06) on Friday from 3000 kyats (US$2.26, [euro]1.88) on Monday,
affecting other commodity prices as transportation costs increased, though
the official rate for one gallon of diesel remained at 180 kyats (US$0.14,
[euro]0.12). Only a limited amount of diesel can be bought at the official
rate

The cost of a cup of tea on a roadside shop rose to 150 kyats (US$0.11,
[euro]0.09) from 120 kyats (US$0.09, [euro]0.07 ), while a bowl of
mohinga, a traditional Myanmar dish made of fish gravy and rice noodles,
jumped to 150 kyats (US$0.11, [euro]0.09) from 100 kyats (US$0.08
[euro]0.07).

The weakening local currency has also pushed up the price of medicine,
especially imported medicine.

A bottle of Vasteral heart medication, which cost 14,000 kyats (US$10.53,
[euro]8.76) last Friday, sold for 17,500 kyats (US$13.16, [euro]10.96)
this Friday.

____________________________________

September 30, Agence France Presse
Myanmar says rights abuse claims exaggerated

Yangon: Myanmar on Friday rejected a report calling for the UN Security
Council to intervene in the Asian nation and said claims about human
rights abuses by the military regime were exaggerated.

The report, from former Czech president Vaclav Havel and retired South
African archbishop Desmond Tutu, said Myanmar was "far worse" than seven
other nations, including Afghanistan and Rwanda, where the UN had taken
action.

"There is no basis whatsoever to its claims," the foreign ministry of
Myanmar, formerly known as Burma, said in a statement.

The ministry said allegations of rape, forced labour, child soldiers,
refugees and forced relocations were "vast exaggerations or mere outright
distortions," and that the report was an attempt to discredit the ruling
junta.

"The truth is that the government does not condone human rights violations
and is in fact the guarantor of human rights in the country," it said.

The report was "based on wrong information by a few remaining insurgents
and foreign-funded expatriates who are now fearful that they will soon be
irrelevant when Myanmar crosses the threshold to a new era," it said.

Havel and Tutu recommended that the UN Security Council adopt a resolution
compelling Myanmar to work with Secretary General Kofi Annan to carry out
a national reconciliation plan to achieve a democratically elected
government.

Myanmar has been ruled by the military since 1962. Although the party of
Nobel Peace Prize winner Aung San Suu Kyi won elections in 1990, it was
never allowed to govern and many of its officials have been detained.

The foreign ministry statement made no mention of a report by a UN special
envoy on Thursday that called for the release "all 1,100 political
prisoners" being held by the regime.

The envoy, UN human rights special rapporteur Paulo Sergio Pinheiro, has
not been allowed into Myanmar for nearly two years.

____________________________________

September 30, Mizzima News
Talks on Burma nuclear facility resume - Alison Hunter

The Russian Ministry for Atomic Energy, or Minatom, confirmed today that
talks with the Burmese military government on the development of a nuclear
research facility in Kyaukse, Mandalay Division have resumed.

A spokesperson for the Minatom told Mizzima final discussions were being
held on the price and financing of the project. He confirmed that the
project had stalled earlier this year as Burma's generals were unable to
afford it.

"The government of Myanmar has enough money I think so we will continue
our negotiations," the spokesman said.

Minatom will not be involved in the construction of the 10 mega-watt
pool-type nuclear research reactor but will supervise and provide the
necessary fuel for the facility.

Burma's plans to build the facility were first announced in 2002 when
Burma's former foreign minister, Win Aung told the BBC the country planned
to build the reactor for medical purposes.

Nuclear research reactors are primarily used to provide a neutron source
for research in a variety of areas including environmental science and
industrial development. Some are also used to create radio-isotopes for
medical research.

Most Asian countries have at least one research reactor - only Burma, Laos
and Cambodia do not.

But many international observers, including the International Atomic
Agency and the US have been reported to be worried about Burma's ability
to maintain such a facility to international safety standards.

____________________________________

September 29, Democratic Voice of Burma
The construction of Burma’s secret army complex to resume

The construction of a top secret military complex in central Burma, is to
resume by the order of the ruling junta, State Peace and Development
Council (SPDC) vice-chairman Gen Maung Aye, according to sources close the
military HQs in Rangoon.

The construction of the complex, situated among mountains between Lun Kyaw
and Taung Taw Villages, Kyaukse Township in Mandalay Division, started in
2000 under the leadership of North Korean technicians, allegedly for the
purpose of housing a ‘nuclear’ battalion. The complex could either be
accessed from Han Myintmo Village situated on Rangoon-Mandalay Highway
near Kyakse or from Naungleng Village near Maymyo (Pyin U Lwin).

The project was recently suspended after some high-ranking officials
including the SPDC chairman Gen Than Shwe’s confidante education minister
Than Aung were removed from their posts.

Previously, the construction of the project was supervised by Than Shwe
and his henchman Maj-Gen Myint Swe, the commander of Rangoon Command and
the chief of military security, but it is now to be controlled by Maung
Aye, and Science and technology minister U Thaung.

_____________________________________
BUSINESS / TRADE

September 28, Mizzima News
Seminar encouraging investment in Burma held in Singapore

A seminar aimed at promoting foreign investment in Burma was held in
Singapore today.

Serge Pun, the Chairman of the SPA Group which operates banking, real
estate and manufacturing services with more than 3500 employees in Burma
was scheduled to give a speech at the seminar titled "Business &
Investment Opportunities Seminar- Myanmar" at the Bungis junction Office
Tower.

An invitation letter to the seminar said Burma's changing economy and
investment climate meant Singaporean businessmen would have the
opportunity to invest in the oil and gas, trading and services sectors.

Singapore is one of the top foreign investors in Burma - in 2004, Burma
and Singapore recorded bilateral trade accounts of $1.2 billion Singapore
dollars.

While the United States and Britain impose sanctions on Burma, according
to the Ministry of National Planning and Development's annual report
foreign investment in the country rose more than 34 percent in 2004.

However these are official Burmese government figures and are considered
by many to be unreliable.

____________________________________
REGIONAL

September 29, Democratic Voice of Burma
China-Burma relationship might not be as good as before– diplomat

The relationship between Burma’s military junta, the State Peace and
Development Council (SPDC) and the government of China might not be as
good as before, a Bangkok-based diplomat told DVB.

The diplomat, speaking on condition of anonymity, pointed out that there
had been two obvious signs of the deteriorating relationship between the
two sides, and the first being Beijing’s failure to invite representatives
of the junta to observe a major military exercise which was held on 27
September.

China’s People’s Liberation Army (PLA) held a military exercise named
North Sword – 2005 at Zuyihaw? Military Base in the Mongolian region of
northern China. Military experts and observers from 24 countries including
United States, Britain, EU countries and Indonesia, Singapore and
Malaysia, were invited to witness the event. But it was extraordinary that
China’s ‘closest’ ally the SPDC was not invited, the diplomat noted.

During a military exercise named Iron Fist 2004, Beijing only invited
Association of South East Asian Nations (ASEAN) members including Burma
and no western country was invited to witness the event.

The diplomat also pointed out that the SPDC minister Gen Soe Win had to
cancel a scheduled trip to China in August. Although the exact reason of
the cancellation is not known, there could be some points that Beijing
doesn’t like about the junta, the diplomat added.

DVB attempted to confirm the observations of the diplomat by contacting
the Burmese and Chinese officials concerned but no independent
confirmation was forthcoming from either side.

_____________________________________
INTERNATIONAL

September 30, The Guardian
US demands action on Burma's military junta - Simon Tisdall

UN must demand end to human rights abuses, country to be placed on
security council agenda

The American government is to seek UN security council action against
Burma's military junta next month to try to win the release of the
detained Nobel peace prize winner Aung San Suu Kyi, end human rights
abuses, and promote democracy in the country.

In a move likely to alarm south-east Asian countries and China, which
favour a hands-off approach, the US is expected to tell the security
council that Burma poses a threat to international peace and security and
the junta's misrule can no longer be considered an internal matter.

It will be the first time that Burma has been formally placed on the
security council's agenda since the military overturned 1990 elections won
by Ms Suu Kyi's National League for Democracy. She has spent much of the
past 15 years in jail and hundreds of NLD activists have been mistreated
or jailed.

"The Burmese regime remains exceptionally repressive and is becoming even
harsher in its treatment of its people," Eric John, the deputy US
assistant secretary of state for east Asia, told a congressional committee
in Washington last week. "We are working with our partners to support
efforts to place Burma on next month's security council agenda. Burma's
junta must take steps . . . such as bringing its deplorable human rights
practices into conformity with international standards."

Mr John said the US, which already enforces sanctions on the regime, had
obtained the support of Britain, but the Foreign Office would only say
last night that it was in talks about the proposal.

The mooted UN resolution is expected to call for Ms Suu Kyi's immediate
release from house arrest; the release of an estimated 1,100 political
prisoners; an inclusive dialogue for national reconciliation under UN
auspices; unrestricted access to Burma for the UN's special envoy and aid
agencies; and regular follow-up reports to the security council.

Mark Farmaner, the director of the Burma Campaign UK, said Washington's
tough line was overdue. "Burma has never been on the security council
agenda before. There's not even an arms embargo . . . And the UN envoy has
been barred from entering for almost two years," he said.

The move closely followed the publication in Washington last week of a
report on Burma co-authored by Vaclav Havel, the former Czech president,
and South Africa's Archbishop Desmond Tutu that called for urgent
multilateral action.

Members of the association of south-east Asian nations (Asean), such as
Thailand and Singapore, that trade and invest in Burma and favour "quiet
diplomacy" could find themselves at odds with America and Britain. Najib
Razak, Malaysia's deputy prime minister, admitted this week that they had
not made much headway. "I think we have to pursue this and hopefully
things (will) get better," he said.

Mr John criticised Asean's approach. "Our view is that Asean has not done
all it could to promote democracy in Burma."

The attitude of China, a large importer of Burmese raw materials, will be
crucial to any UN action. The US was hoping to persuade Beijing that
democratic reform and an end to drugs trafficking, refugee problems and
instability in Burma were in its own interests, Mr Farmaner said.


____________________________________
OPINION / OTHER

September 30, The Washington Post
A plan to free Burma

It's become commonplace in foreign capitals to pronounce that democracy
can never be imposed by force. It's also frequently stated that unilateral
diplomacy and sanctions are doomed. Now comes a proposal to encourage
democracy in a country suffering under a dictatorial yoke and to use only
peaceful, multilateral diplomacy to do so. It's difficult to imagine how
any of those foreign capitals could object.

The proposal originates with two of the most respected apostles of
nonviolence, former Czech president Vaclav Havel (who helped manage the
peaceful transition from communism) and South Africa's retired archbishop
Desmond Tutu (who helped bring about the equally miraculous peaceful
transition from apartheid). The country in question is Burma, now called
Myanmar by its dictators. The proposal is that the U.N. Security Council
pay attention to Burma's plight and instruct Secretary General Kofi Annan
to negotiate with Burma's leaders for a freeing of political prisoners and
a restoration of democracy.

Why the United Nations? A 125-page report commissioned by Mr. Havel and
Archbishop Tutu, and prepared by the Washington law firm DLA Piper Rudnick
Gray Cary, makes the case that Burma's plight, while most acute for its 50
million people, is no longer simply an internal matter for Burma to solve.
It's a case that the Bush administration itself has made, as when
Secretary of State Condoleezza Rice called Burma "an outpost of tyranny."
The war that Burma's generals have waged on their own citizens --
featuring ethnic cleansing, rape used as a weapon of war, and enslavement
of civilians to perform dangerous work -- is as vicious as the fighting
that seized the world's (and the United Nations') attention in Sierra
Leone; the difference is that Burma keeps CNN's cameras away. The same war
has forced some 700,000 refugees into neighboring countries. The
dictators' corrupt tolerance of heroin production has made Burma a leading
source of illegal drugs.

In other words, Burma features many of the emergency factors that prompted
the Security Council to intervene in Sierra Leone, Afghanistan, Haiti,
Liberia and elsewhere. And unlike some of those countries, it also
features an obvious and legitimate alternative source of governance: Aung
San Suu Kyi and her National League for Democracy, which overwhelmingly
won a parliamentary election in 1990 but has been barred from ruling ever
since. Although Aung San Suu Kyi (like Archbishop Tutu, a Nobel Peace
Prize recipient) remains under house arrest, and many in her party are
imprisoned, the league nonetheless had the courage to endorse the call for
Security Council action. Yet so far, a number of governments that should
find the choice far easier, including traditional friends of Burma's
democrats such as Britain, have been reticent, and the Bush
administration, while supporting the initiative, has been less than
forceful.

A humanitarian and human rights catastrophe; a threat to neighboring
countries; a proposed peaceful and multilateral response. What objection
could there be?