BurmaNet News: February 21 2003

[editor at burmanet.org]

February 21 2003 Issue #2180

INSIDE BURMA

AP: Myanmar opposition leader found guilty in tussle with cousin
AFP: Myanmar’s Aung San Suu Kyi in stand–off with court
Narinjara: Burmese junta’s elephant capture

MONEY

AFP: Myanmar’s central bank bails out private banks: cconsultant
Business Times (Singapore): Myanmar mired in worst financial crisis
Xinhua: Forieng investment in Myanmar falls in first 10 months of 2002

INTERNATIONAL

Financial Times: Burma asks Washington about move to democracy
AFP: EU urges Myanmar to release political prisoners
VOA: US State Department and FBC react to Burmese military government’s
statements

REGIONAL

Mizzima: Potential to increase trade between Bangladesh and Burma

STATEMENTS

U.S. Department of State: Daily Press Briefing
Chinland Guardian: Chin around the world celebrate National Day

INSIDE BURMA

Associated Press February 21 2003

Myanmar opposition leader found guilty in tussle with cousin

Opposition leader Aung San Suu Kyi faced a possible jail term Friday after
being found guilty in a domestic dispute.

Suu Kyi went to Yangon Court early Friday to face charges for a
confrontation she had with her cousin Soe Aung, said members of her
National League for Democracy party, speaking on condition of anonymity.
The court found her guilty of the charge of wrongful restraint of a person
for refusing to allow her cousin to enter their property. The punishment
is a small fine or seven days in jail, they said.

Few other details of the case were immediately available.

Suu Kyi became one of the world's most famous political prisoners when
detained by Myanmar's military government in 1989-95.

Her party won the 1990 general election while she was under house arrest,
but the military wouldn't let it take power. In 1991 she won the Nobel
Peace Prize for her nonviolent efforts to promote democracy.
___________

Agence France Presse February 21 2003

Myanmar's Aung San Suu Kyi in stand-off with court

Myanmar's democracy leader Aung San Suu Kyi was in a stand-off Friday in a
Yangon court, refusing to pay a fine after it found her guilty of
wrongfully restraining her cousin earlier this year.

"Aung San Suu Kyi was today fined 500 kyat (50 US cents at blackmarket
rates) in lieu of seven days in jail for unlawfully preventing her cousin
from entering their compound," Aung San Suu Kyi's lawyer Nyan Win told a
press conference at Bahan township court. "Aung San Suu Kyi is presently
at the court refusing to pay the fine, saying it was an unfair judgement.
She said she would rather go to jail than pay the fine, which resulted
from an unfair trial."

Last May, Aung San Suu Kyi filed a complaint against her cousin Ko Soe
Aung at the court for physically assaulting her, the lawyer said.

Two months later Ko Soe Aung filed a complaint against her for wrongfully
preventing him from entering the compound where they both lived, the
lawyer added.

The court has been hearing both cases since July and delivered its
verdicts Friday.

"Ko Soe Aung was also fined today 1,000 kyat in lieu of one month in
jail," the lawyer said.
__________

Narinjara News February 21 2003

Burmese Junta’s Elephant capture
Endangers the species to extinction

A wild elephant capture drive has been conducted for some time along the
Burma  Bangladesh common border, according to our correspondent from the
border areas.

The ‘Wild Elephant Capturing through Anaesthesia’ Team from Sandoway under
the Burmese State Forest Department has sponsored the wild elephant
catching drive beginning January 21.  Led by Veterinary doctors, U Thaung
Lwin and U Maung Maung Htin, the team has been carrying out their campaign
under the direction of Major Gen. Saw Htwe, the Maungdaw  Buthidaung
District Council Chairman.

On 18 February the team fired an anaesthetic shot and captured a
five-and-half foot high cow elephant, aged about five years near Taungbro
village opposite Gundum Village on Bangladesh side.  The accompanying bull
elephant fled the spot as it saw the danger while roaming with the
captured cow in the forests.  Meanwhile there are reports of groups of
elephants crossing the border to Bangladesh, according to eyewitnesses in
the area.

The anaesthesia team have been hunting elephants with tasks, according to
another eyewitness.  People in the area demand that, the elephant captors
are accompanied by ivory traders from the frontier areas bordering with
China.

The neighbourhood in which the elephants are hunted is in the Mayu Ranges
in the Buthidaung Maungdaw region close to the south-eastern part of
Bangladesh.  As the Mayu Ranges are situated on the coastline of the Bay
of Bengal and there are green virgin forests there the region has been
serving as a happy pasture for the elephants since time immemorial.  With
the intrusion of the Burmese junta sponsored elephant-captors, the last
expanse of green forests as safe havens for the wild elephants has been
seriously affected.  Depleting forests and greenery in Bangladesh and
India (up to the Assam Hills) have forced the wild elephants to take long
journeys to the area.  Environmentalists in Bangladesh have been watching
with rising concern at the sudden increase in intrusion of wild elephants
into the Chittagong Hills and adjacent areas, obviously migrating in large
herds from across the border, for search of food.  As the food in the
wilderness grows scarce every year, the elephants have been forced to come
to human habitats and paddy fields.  Last year there were at least four
reported human casualties from the attacks of wild elephants in the
Bangladesh press.

The environmentalists have shown growing concern at the alarming increase
in wild elephants straying into the human habitats in Bangladesh besides
reports of wild elephants being killed from landmine blasts while crossing
the border. The Burmese army has been laying landmines along its border
with Bangladesh.  To all charges of landmine laying the Burmese junta have
so far categorically made denials and demanded that the insurgent groups
along the common border have been resorting to landmine laying, said a
journalist in the Bangladesh press.   With increase in the wild elephant
casualties the environmentalists also expressed concern over the survival
of the species, already endangered to near extinction.

Last year two white elephants were caught in the same Mayu Ranges, which
were later transported to Rangoon.  The officials and privates engaged in
capturing the white elephants have been promoted in ranks, which has
clearly encouraged the security forces in the area to go for frenetic
chase for more elephant captures, said a retired army officer.  This has
substantially caused disturbance in the local elephant population,
threatening the species into extinction, he concluded

MONEY

Agence France Presse February 21 2003

Myanmar's central bank bails out private banks: consultant

Military-ruled Myanmar's central bank has bailed out three of the
country's cash-strapped private banks by extending loans to them, a
consultant from one of the banks said Friday.

The banks each received five to 11 billion kyat loans based on the value
of the collateral they were able to provide, the consultant told AFP on
condition of anonymity.

The value of the loans equates to five to 11 million dollars at the
prevailing blackmarket rate -- considered more reflective of the
currency's actual value -- or 833 million to 1.8 billion dollars at the
official rate. "Three leading banks, Asia Wealth Bank, Yoma Bank and
Kambawza Bank are the first to receive such collateral government loans,"
the consultant said.

"It is expected that other private banks will also receive similar loans
if they can put up the necessary collateral."

A government source also told AFP the government had separately paid seven
billion kyat to the Olympic Construction Co., one of several business
ventures run by the Asia World Bank.

The company had undertaken construction projects contracted by the
government, which had fallen in arrears in paying it.

"These official moves are the first positive indications that the
authorities have finally decided to intervene and help contain the
deteriorating situation," a local analyst said.

In recent weeks depositors have rushed Myanmar's 20 private banks, seeking
to withdraw their savings amid rumours of their imminent collapse.

The runs led to Asia Wealth Bank, Yoma Bank and Kambawza Bank suspending
their credit card services.

The banks were also pushed to suspend their credit card services following
a State Central Bank order that private banks should only allow
withdrawals totalling 500,000 kyat a week.

The amount has since been reduced to only 100,000 kyat, resulting in long
queues at main banks and their branches from dawn amid an increase in
security.

The rumours that the banks were vulnerable have persisted despite
assurances from the central bank governor last week that the public should
have "complete confidence" in the banks as they were operating strictly in
accordance with state financial laws.

The panic runs appear to have been sparked by the failure of 14 financial
services groups to pay investors. The groups were operating outside of
government regulations and offering high returns of about 60 percent a
year.

Military authorities have charged that some elements were spreading false
and malicious lies to deliberately create a monetary crisis.
_________

Business Times (Singapore) February 21 2003

Myanmar mired in worst financial crisis;
Riot police deployed over fears of public uprising in Yangon
By Harish Mehta

RIOT police are out in force in Yangon as the country's worst financial
crisis continues to spiral out of control even as the central bank pulls
out all the stops to stem a bank run.

Sources in Yangon and along the Thai-Myanmar border told BT that fears of
a public uprising grew as the economy ground to a halt, prompting the
military junta to deploy riot police in the streets of Yangon yesterday
and Wednesday.

The heightened security measures followed a massive run on local banks on
Feb 6, sparked by the collapse of several non-banking financial companies
(that accepted deposits to finance their businesses in real estate,
construction, trading, and manufacturing), and the sacking of the finance
minister, diplomats and analysts said.

To staunch the haemorrhaging, the central bank has imposed a ceiling on
withdrawals, suspended cheque transactions and fund transfers, and starved
companies of funds as working capital. The crisis was sparked by the huge
losses suffered by the country's largest commercial bank, Asia Wealth Bank
(AWB), on its deals in China, making depositors nervous, and contributing
to the run, analysts said. As well, moves by AWB, and the Myanmar Eastern
Bank to seek permission from the government to sell their shares to the
public unsettled depositors.

AWB said in a statement: 'The present situation is created as savers are
withdrawing their deposits in a short time, resulting in most private
banks, including the Asia Wealth Bank, encountering a serious shortage of
cash.'

The government panicked and rushed to print money, which exacerbated the
situation by sapping confidence in the kyat. It is believed that 19 trucks
carried newly printed 1,000 kyat notes from Wazi, in central Myanmar where
the government prints its notes, to Yangon.

These moves took place amid fears that the government may be forced to
demonetise the currency in which the people have lost all confidence.

The country's top banks such as AWB, Myanmar Mayflower Bank, Yoma Bank,
Kanbawza Bank, First Private Bank and Myanmar Oriental Bank are in a
parlous state. The 20 banks there had combined kyat deposits equivalent to
about US $946.61 million as at March 2001, up by US$386.23 million from
March 2000. But this is believed to have plunged by about 20 per cent
during the crisis.

Meanwhile, frightened people in Yangon, Moulmein, Mandalay and in border
areas rushed to the banks early this month after the ruling military junta
said that a number of non-banking financial institutions, which had
attracted huge deposits with interest rates of up to 50 per cent, were
illegal. The announcement caused many of them to fold overnight.

Depositors were already jittery following the removal of the minister of
finance and revenue, Khin Maung Thein, on Feb 1 for his involvement in
foreign exchange transactions, and for his role in destabilising the
financial markets.

Then on Feb 6, the run on the banks began in earnest following rumours
that the 20 private commercial banks would collapse, too.

Soe Aung, a Myanmar director of external affairs at the Network for
Democracy and Development, based along the Thai-Myanmar border, told BT:
'The banking system is about to collapse.

The financial instability was brought about due to political factors as well.

'The finance minister was fired for his involvement in foreign exchange
dealings. This sent the message that the government was unstable and
sparked a rush on the banks.'

Businessmen in Yangon are concerned that the new finance minister, Hla
Tun, who is an army officer with no skills in finance and banking, may
worsen the situation.

'Maj-Gen Hla Tun is like the other ministers who do not have necessary
experience in the portfolios to which they are appointed. This indicates
that incompetency in government has made the country one of the poorest in
the world,' Mr Soe Aung said.

The Myanmar central bank has banned money transfers and imposed a ceiling
of 500,000 kyats a week on withdrawals, sparking a full-blown run on
deposits. One US dollar is equivalent to 6.5 kyats at the official
exchange rate, while it is one to over 1,500 in the black market.

Subsequently, the central bank tightened withdrawals to 100,000 kyats a
week, which is less than US$100. AWB is said to have paid out 80 billion
kyats of its deposits of 260 billion kyats during the run.
________________

Xinhua News Agency February 21 2003

Foreign investment in Myanmar falls in first 10 months of 2002

Foreign investment in Myanmar fell 14.7 percent in the first 10 months of
2002, registering 45.52 million US dollars compared with the same period
of 2001, according to the Central Statistical Organization.

These contracted investments were injected into the sectors of oil and gas
(44 million), and manufacturing (1.52 million) by investors from Malaysia
and China's Hong Kong Special Administrative Region respectively. The
Malaysian investment constituted the period's single investment coming
from member countries of the Association of Southeast Asian Nations
(ASEAN) which used to be Myanmar's largest foreign investors.

Over the corresponding period of 2001, there were nine countries and
regions investing in the country including four ASEAN members --Thailand,
Singapore, Malaysia and Indonesia --and the investment sectors cover
manufacturing, construction, hotels and tourism, and mining.

Since Myanmar opened to the outside world in late 1988, it had drawn
7,443.7 million dollars of contracted foreign investment in 374 projects
as of October 2002, of which ASEAN took up 3,844 million or 51.64 percent.

Out of 25 countries and regions investing in the country, major investors
were lined up as Singapore (1,507 million), the United Kingdom (1,401
million), Thailand (1,289 million) and Malaysia ( 639.5 million), taking
up 20.24 percent, 18.82 percent, 17.31 percent and 8.59 percent of the
total foreign investment respectively.

Meanwhile, since March 2002, the Myanmar government has introduced a new
measure which restricted foreign investment by stopping issue of import
and export permits to Myanmar-based wholly-owned foreign trading
companies.


INTERNATIONAL

Financial Times February 21 2003

Burma asks Washington about move to democracy
By AMY KAZMIN

Burma's military regime yesterday extended a surprise invitation to the US
to enter a dialogue on the country's political future, in an apparent bid
to stave off the threat of fresh sanctions against its limping economy.

In a sharp turnabout from its usual criticism of outsiders for meddling in
Burma's internal affairs, the junta invited the US "to join us in open,
constructive dialogue toward humanitarian, economic and political
development."

The regime said in a statement it would welcome "pragmatic useful advice
on making the transition to a stable democracy," and it urged the US to
"roll up its sleeves, open its heart and join with us to bring a better
life" to Burma's people. A western diplomat in Rangoon said it was too
early to determine whether this was a public relations ploy or a serious
initiative.

The junta's appeal follows hints by Lorne Craner - US assistant secretary
of state for human rights, democracy and labour - last week that
Washington may impose new sanctions against Burma, due to the lack of
progress in ending its long political stalemate.

Burma's junta released the country's Nobel Peace Prize winning,
pro-democracy leader Aung San Suu Kyi from house arrest last May, raising
expectations that it was preparing for a transition from military rule
towards greater democracy.

But since then, the regime has shown little inclination to enter into any
substantive political dialogue with Ms Suu Kyi, and recently arrested
nearly a dozen activists from her National League for Democracy for
anti-government activities.

Rangoon's relations with the US remain chilly. The US declined to certify
that Burma had made enough progress in combating the drugs trade,
something for which the junta has struggled hard to gain recognition.

Frustrated with the lack of political progress, Washington has also
threatened to step up sanctions, which could target Burma's garment
exports to the US, valued at Dollars 420m (Pounds 269m) in 2001.

Burma yesterday warned that fresh sanctions would further undermine the
health, education and welfare of the Burmese people, depriving them of job
opportunities.

"Sanctions, in short, do not solve problems. They only make them worse,"
it said.

The junta also cited recent visits by Amnesty International, the Red Cross
and its on-going human rights training, sponsored by the Australian
government, as evidence of its sincerity in dealing with the country's
political and humanitarian problems, and urged the US to join in the
dialogue.

"We believe that co-operation, rather than confrontation, is the path to
progress," the statement said.
_____________

Agence France Presse February 21 2003

EU urges Myanmar to release political prisoners

The European Union on Friday voiced concern at Myanmar's deteriorating
human rights record, urging the regime to release political prisoners and
stop harassing opposition leader Aung San Suu Kyi.

"The EU notes with serious concern that reports of restriction on freedom
of expression and political arrests and detentions in Burma/Myanmar have
increased... The EU calls on the Burma/Myanmar authorities to respect
their promises to release all political prisoners," the EU's Greek
presidency said in a statement. "Of particular concern is the growing
pattern of harassment and attempted intimidation of Daw Aung San Suu Kyi,"
the statement said, reaffirming the EU's "support for political change" in
the southeast Asian country.

Myanmar's junta has refused to recognise the results of the 1990 general
election, in which the National League for Democracy (NLD) party of Aung
San Suu Kyi won 392 of the 485 contested seats.

On Wednesday the Nobel Peace Price laureate urged the international
community to maintain pressure on the military regime in Yangon to move
towards democracy.

On Friday Aung San Suu Kyi was involved in a half-day standoff with a
Yangon court, which found her guilty of unlawfully preventing her cousin
from entering the lakeside compound where they had been residing
separately last year.

She refused to pay the fine imposed on her or leave the court until it
suspended the verdict.

A US official recently said he was highly sceptical that Myanmar's
military junta was serious about democratic reform and warned Washington
was considering further sanctions against the country.
____________

Voice of America February 21 2003

U.S. State Department and FBC React to Burmese Military Government's
Statement
By Khin Soe Win

Burma's military government, under the threat of fresh economic sanctions,
has invited the United States to enter a dialogue on the country's future
economic and political development.
In a statement (issued Thursday), Burma said it would welcome American
advice on how to make the transition to a stable democracy.
The Burmese statement expressed disappointment at the suggestion, made
last week by Lorne Craner, U.S. Assistant Secretary of State for
Democracy, Human Rights and Labor, at Free Burma Coalition's sixth Annual
Conference which was held at George Washington University.
Mr. Craner said, “The United States already has tough sanctions on Burma
in place. We have imposed an arms embargo and an investment ban, among
other measures. Only our sanctions on Iraq are tougher. If there is
significant progress towards a transition to democratic rule and greater
respect for human rights as a result of dialogue between Aung San Suu Kyi
and the regime, the United States would look seriously at measures to
support this process.”
The U.S. State Department spokeperson Richard Boucher responded at a
regular press briefing regarding SPDC’s Statement on February 20.
He said, “Well, we saw the statement, but the fact is the Burmese have not
raised a proposal with us on what they call a constructive dialogue. At
this point, we're not really prepared and in a position to comment on the
idea. We would, of course, welcome concrete steps by Burma to move towards
democracy and greater respect for human rights. The critical dialogue is
the one between the regime and Aung San Suu Kyi and the National League
for Democracy."
Dr. Zarni, founder of Free Burma Coalition welcomed SPDC’s latest
invitation to U.S. to be involved in the process of Burma's smooth
democratic transition.
He said, “However, Burmese military leaders ought to have long over due
dialogue with opposition leader Daw Aung San Suu Kyi together with CRPP
(Committee Representing Peoples’ Parliament) and other ethnic
nationalities in Burma. SPDC leaders should not seek for short-term
solution to solve the current crisis in Burma.”

REGIONAL

Mizzima February 21 2003

Potential to increase trade between Bangladesh and Burma

Guwahati: Both Bangladesh and Myanmar (Burma) should explore the potential
of trade in order to generate revenue, was observed by Mr. Antonie de
Wilde, programme manager of the South Asia Enterprise Development
Facility, an agency of the World Bank.
In an exclusive interview with Mizzima News in Guwahati, Assam State of
India, Mr. Wilde said that so far there is very little trade going on
between Bangladesh and Burma, but the volume of trade can be increased.
In this context, he stated that the traders of both countries are keen to
increase the volume of trade, but that has not been possible due to poor
infrastructure.
"The governments have to develop the existing infrastructure to give a
boost to the trade", Wilde observed.
Mr. Wilde further mentioned that two trade points of Chittagong bordering
Burma have been witnessing border trade for the last couple of years and
the trade can be increased. "Both governments have to develop the
infrastructure in the bordering areas to increase the volume of trade", he
added.
Mr. Wilde also said there is no proper banking facilities in the area for
transaction and as a result, traders are facing problems in trading. "Both
governments should provide facilities in order to smooth running of
trade."
Asked whether the militancy had affected the trade in the bordering areas,
he replied that a peaceful atmosphere is essential for any trade.


STATEMENTS

U.S. Department of State February 20 2003

Daily Press Briefing

Richard Boucher, Spokesman
Washington, DC
February 20, 2003

Excerpts:


BURMA
12-13        Reported Proposal for "Constructive Dialogue" with US

QUESTION: Can we change the subject to Burma?

MR. BOUCHER: No, we've got another Colombia.

..........  ..........
Okay. Now, Burma.

QUESTION: The Burmese said yesterday that they were inviting the U.S.
Government to join in dialogue. Have you received an official invitation
and do
you have a reaction to this?

MR. BOUCHER: Well, we saw the statement, but the fact is the Burmese have not
raised a proposal with us on what they called a constructive dialogue. At
this
point we're not really prepared and in a position to comment on the idea. We
would, of course, welcome concrete steps by Burma to move towards
democracy and
greater respect for human rights.

The critical dialogue is the one between the regime and Aung San Suu Kyi and
the National League for Democracy.

QUESTION: So you haven't received an official invitation?

MR. BOUCHER: No.
_____________

Chinland Guardian February 21 2003

CHIN AROUND THE WORLD CELEBRATE NATIONAL DAY
By Salai Za Uk Ling

Chin people around the word are observing their national day, an eventful
occasion that holds historical and political significance for Chin people
that has been annually observed since 1948. Celebrations are being held in
four continents; from Asia to Europe, Australia to North America.

On February 20, 1948, a year after Chin leaders signed Panglong agreement
to join a proposed federal state which paved a way for Burma’s eventual
independence from Britain, a Chin public conference overwhelmingly
approved democratic system of governance after rejecting traditional
feudalistic political system in which hereditary chiefs held dominant
decision-making powers.

Led by Pu Wumthu Maung, a Chin nationalist who during British occupation
had founded the first modern Chin political party, the Conference not only
succeeded in establishing democracy but it was also able to accomplish
peaceful political transition through a democratic process.

In a Chin National Day commemorative message sent to “Chin communities
worldwide,” the Chin Forum, an umbrella grouping that represents Chin
exiles in various parts of the world described how historically free and
sovereign Chin people were colonized by the British, how their loyalty to
Panglong agreement and allegiance to the Union were betrayed following
Aung San’s assassination.

The Chin Forum, which is curving out its own future state Constitution for
Chinland, argued that the very Union constitution that was “imposed” upon
in 1947 was in breach of Panglong agreement, saying that it resulted in
“tremendous losses and human miseries.” To avoid the repeat of past
miseries for future generations, the Chin Forum said, with the state
Constitution it is drafting, it “envisions a future Chinland to be the
land of freedom, peace and prosperity.”

At a time when talks of ethnic reconciliation in Burma takes a center
stage in international community, the Chin National Front, which is
leading an armed struggle for self-determination and is currently
occupying high position in Burma’s largest opposition military alliance
National Democratic Front, took the opportunity on Chin National Day to
welcome recent Thailand’s proposal to mediate talks for national
reconciliation in Burma. In a statement dated 20th February 2003, the CNF
asserted “We are strongly convinced that only through meaningful dialogue,
can we achieve genuine national reconciliation.”

Chin National Day now completes its 55th anniversary and celebrations are
being held by Chin communities across the globe. In Asia, celebrations are
being held in India, South Korea, Japan, Singapore and Malaysia.

In Europe, in a celebration held in Augsburg, Germany, Chin Community
echoed the same message the Chin Forum carries, reaffirming their
commitments to “continue struggling until freedom, democracy and human
rights are restored and a new federal union established in Burma”. In
North America, celebrations are also being held in Ottawa, Washington D.C,
Indianapolis, Dallas and many other US cities.

While Chin exiles around the world are commemorating their National Day,
inside Chin State and elsewhere in the country, Burmese military junta is
arbitrarily insisting that celebrations be held as Chin State Day in
apparent move to discourage Chin nationalism, and a move which Chin people
believe is evidence of the regime’s ethnic assimilation campaign.

North America-based Chin Youth Organization said in a commemorative
statement, “It was the joint visions and determination of our forefathers
that liberated us from the burden of feudalism. And it is the
responsibility of the succeeding generations to preserve and strengthen
the legacy of our forefathers.”