BurmaNet News: March 21 2003

[editor at burmanet.org]

March 21 2003 Issue #2199

INSIDE BURMA

DVB: Pinheiro to meet NLD CEC members
Muslim Information Center: Anti-Muslim riots take place in Burma

MONEY

Asian Tribune: China eyes up Salawin: A Thailand - Myanmar electricity scheme
Irrawaddy: Burma’s Private Banking Crisis—a Chronology
Xinhua: Over 5,600 private industries run successfully in Myanmar

REGIONAL

Bangkok Post: Burma vows to cooperate

MISCELLANEOUS

San Francisco Chronicler: Refugees confront AIDS

INSIDE BURMA

Democratic Voice of Burma March 20 2003

Pinheiro to meet NLD CEC members

The UN special human rights envoy to Burma, Mr Paulo Sergio Pinheiro who
arrived in Rangoon last night has met diplomats and UN staff based in
Rangoon for nearly an hour today. He is expected to meet the SPDC
authorities including the foreign minister U Win Aung later this evening.
He told reporters that his intention is to find out the latest human
rights situations in Burma and to report his findings to the UNHCR’s
meeting held in Geneva at the moment. He also said that he has no plan to
venture outside Rangoon during this trip. Mr Pinheiro and group will have
a meeting with the CEC members of the NLD at the house of Daw Aung San Suu
Kyi tomorrow evening. On Monday, he is planning to meet members of the
United Nationalities Alliance [UNA]. Moreover, he is meeting some famous
political prisoners in Insein Prison and the renowned journalist and
political prisoner U Win Tin and U Htway Myint who are being treat at
Rangoon General’ Prisoner wards.  The NLD and ethnic national parties are
criticising Mr Pinheiro for urging the international community not to
isolate the SPDC and to work with the regime and the matter will be
discussed openly in tomorrow’s meeting. U Khun Tun Oo, the leader of the
UNA which is meeting Mr Pinheiro on Monday told the DVB about the points
of view of the ethnic groups as follows:

A: Mr. Pinheiro was appointed to look into human rights matters [in Burma]
and he should concentrate on them. I think he should not get involved in
current political affairs. Or else things will become more complicated. Mr
Razali has been to Burma eight or nine times. We have met him and we have
discussed many matters with him. The matters should be dealt by Mr Razali.
We will talk about human rights matters when we meet him. To be frank, Mr
Pinheiro has written the report to make it sounds good for both ends. Mr
Razali is working for the betterment of politics and he works for the
improvements of human rights situations. That’s how we see it and that’s
how we want it to be.

Q: He has been to Burma five times now. Was there any improvement between
his previous trip and now? What are you going to discuss with him?

A: There is no improvement. Nothing. His promise of the releases of
political prisoners never materialised. The SPDC didn’t do it. We still
have Ko Tha Pann and U Sai Myo Lwin and Minn Soe Linn and Naing Ngwe Thein
and the like to be released.

Q: What have you heard about the latest situation on U Sai Myo Lwin?

A: Nothing. We have heard that he is OK, though.

Q: Are your activities to do with human rights issues? The rights to
participate [in politics] and the like


A: That’s what I mean. We should have the rights to do so. There are eight
parties in our group and seven of them lost their registers through forced
withdrawal.
________

Muslim Information Center March 20 2003

Anti-Muslim riots take place in Burma

On March 6, 2003 a group of people set ablaze about 15 Muslim houses
including a mosque and a Madarasa (religious school) in Kant Ba Lu
township of Sagaing division in upper Burma, according to our Reporter
from inside Burma.

A quarrel took place between a Muslim (name withheld) from Htan Taw  
village and a non-Muslim also from the same village, while both of them
driving their carts pulled by animals, the Reporter said.

The non-Muslim (name withheld) organized some of his friends and started
to torch the houses, the Reporter said. Htan Taw village  consists of
about 120 houses, half of which belonged to the Buddhist community, the
Reporter said.

Local authorities neither took actions against the law breakers nor issued
any order prohibiting them from conducting similar aggressions in the
future, the Reporter said.

2. SPDC authorities destroy mosque in Burma
An old mosque, more than 200 years old, in Kyauk Pyu township of Arakan
State was destroyed by the township authorities, according to our Reporter
from inside Burma.

The mosque was situated in Pyin Pyu Maw village only about two kilo meters
away from the heart of Kyauk Pyu, the Reporter said.

MONEY

Asian Tribune March 19 2003

China eyes up Salawin: A Thailand - Myanmar electricity scheme

Bangkok, Mar. 19, (TNA): A Chinese company is interested in investing in a
Thai project to build an electricity generating station on the Salawin
dam, the energy minister revealed yesterday.

Speaking after meeting Mr Ren Hongbin, president of China National
Machinery Equipment, Dr Pornmin Lertsuridej said that the Chinese
company was eying up joint investment in the Bt200 billion project,
which Thailand hoped to enter into with the Myanmar regime.

The company is currently working on the Three Gorges Dam in China, which
is destined to be the largest in the world, and is also involved in the
construction of the Manwan dam, which will produce 3,000 megawatts of
electricity.

Thailand and China have signed a memorandum of understanding which would
see China sell electricity from the Manwan dam to Thailand, but
construction has not yet begun as no further official agreement has been
signed.
_________

Irrawaddy March 21 2003

Burma’s Private Banking Crisis—a Chronology

Burma’s Finance and Revenue Minister Khin Maung Thein is permitted to
retire, but no further explanations are offered by the military regime.
In the first week of February, rumors of demonetizations of certain
numbered currencies began to circulate in cities and towns.
Private service companies, which are independent investment houses, begin
to look increasingly unstable as more than dozen have collapsed since late
last year. Rumors that the major banks are also on the verge of collapse
force depositors to rush to bank branches to withdraw their savings.
Living Color, a Rangoon-based Business magazine, runs a report in February
alleging that Burma’s three largest private banks have been dispensing
loans well beyond their capital. The article charges that Asia Wealth Bank
has outstanding loans 50 times greater than its capital, while Yoma Bank
has loans out 30 times greater than its reserves. Kanbawza Bank also
reportedly has loans out totaling eight times more than its available
reserves.
Feb 10— The governor of Burma’s Central Bank, the country’s primary
monetary authority, holds a press conference in Rangoon in hopes of
quelling consumer unrest. Kyaw Kyaw Maung guarantees that the 20 private
banks have solid financial standing as well as the backing of the Central
Bank. He urges investors to avoid private service companies, who do not
have the support of the Central Bank, and ignore rumors and speculation
regarding the private banks. Details from the press conference are carried
in the state-run press, including the New Light of Myanmar.
After a huge run on the banks by depositors, banks begin denying
withdrawal requests, and advise account holders to return after Feb 18.
Feb 12—Asia Wealth Bank, Burma’s largest financial institution, asks the
Central Bank for a security bond of 30 billion kyat (US $30 million) to
boost its dwindling reserves.
Feb 14—Editors in Rangoon say the junta has become extra sensitive
concerning business reporting, and ordered the country’s Press Scrutiny
Board to impose a news blackout on the crisis in an effort to ease public
concerns.
Feb 15—Yoma Bank, one of Burma’s largest commercial banks, suspends its
credit card services. Yoma Bank is one of only three banks in Burma to
offer credit card services.
Feb 16—The state-run Kyemon newspaper says Secretary-One Gen Khin Nyunt
blames dissidents in exile for the bank crisis. He says "destructive
elements" have spread false rumors, which caused depositors to withdraw
their money. He said the country would suffer losses because of the
rumors.
Feb 17—Banks impose limits on withdrawals and ban account transfers.
Individual customers are only allowed to withdraw 500,000 kyat (US $500)
per week. Asia Wealth Bank suspends its credit card services, while
Kanbawza Bank says it plans to issue a similar announcement.
Feb 18—As financial panic increases, crowds begin gathering in front of
banks demanding withdrawals. Traffic police are called in to disperse huge
crowds outside Asia Wealth Bank’s Olympic Tower branch in Rangoon, while
security forces, including riot police, are beefed up to guard banks in
both Rangoon and Mandalay after a bank in Rangoon’s Thingangyun suburb was
stoned by angry account holders.
In addition, some businesses report that they do not have the cash to pay
daily wages to staff, as significant withdrawals still remain restricted.
Some banks tighten withdrawal limits further to 200,000 kyat.
Feb 19—Wint Kyaw, managing director of Universal Bank, tells The
Irrawaddy: "I can’t say anything for now, because the situation is very
perplexing."
Meanwhile, Asia Wealth Bank posts signs at their branches saying the bank
is working under normal operating procedures, despite the maintaining of
restrictions on withdrawals.
Feb 20—With a shortage of kyat in circulation, the currency strengthens
against the dollar. Rates fall from 1,000 kyat at the end of last week to
today’s black market rate of 900 kyat. Some banks drop the weekly limit on
withdrawals even further to 100,000 kyat per account.
Several banks order investors with outstanding loans to repay between 20
and 25 percent of their debts within a few days.
Feb 21—The Central Bank pledges to assist private banks with a 25 billion
kyat (US $25 million) bailout. The money is shared between Asia Wealth
Bank, Kanbawza Bank and Yoma Bank. Other banks, including Universal Bank,
drop the cap on withdrawals to just 50,000 kyat (US $50) per customer per
week.
Gen Khin Nyunt addresses an annual meeting of the Ministry of Commerce and
says Burma’s banks are safe. "For the people who have unnecessarily
withdrawn money, there is no safer place for them to keep money than in
the banks."
Feb 22—The Singapore-based Business Times reports that Singaporean
companies are watching the crisis with concern and that one trading firm
has already closed down operations in Rangoon.
Feb 23—Sr-Gen Than Shwe ostensibly cancels a trip to Kuala Lumpur for
health reasons, where he was to attend the Non-Aligned Summit. Analysts,
however, feel the cancellation is in response to the ongoing banking
crisis at home. Foreign Minister Win Aung represents Burma at the summit.
Feb 24—The Myanmar Times carries a story quoting Gen Khin Nyunt’s address
to the Ministry of Commerce. The weekly journal also quotes Brig-Gen David
Abel, minister for the Office of the Chairman of the State Peace and
Development Council, saying some banks had not operated within the
boundaries of Burma’s finance laws and had loaned more money than was
allowed. In the article, Zaw Win Naing, managing director of Kanbawza
Bank, says: "The problem we face can be worked out soon, and it is a
temporary problem."
Feb 25—A five-day fishery and livestock fair scheduled to start today is
cancelled due to the banking crisis.
Banks again call on customers with outstanding loans to repay their debt,
and revise earlier demands for a 25 percent repayment to 50 percent.
Feb 26—The SPDC officially orders banks to cease account transfers.
Feb 28—After the government bailout, some business account holders are
permitted to make larger withdrawals to pay salary to staff, but most
small accounts and personal investments are still restricted. Some traders
also say that they have been unable to repay debts to other merchants, as
their money remains tied up in the banks.
March 1—Traders along the Thai-Burma border in Thailand’s Tak Province are
not affected by the ongoing crisis, the Bangkok Post reports. The Tak
Chamber of Commerce says impacts would be minimal as importers and
exporters on the border did not rely on Burmese banks.
March 2—The New Delhi-based Mizzima News Service reports that last week’s
closure of the Burma Economic Bank in Tamu, Sagaing Division, close to the
India-Burma border, has resulted in large losses for both Indian and
Burmese traders. Indian exporters complain of pending dues from Burmese
buyers. "The Burmese traders are also worried over the developments but
they are prevented from protesting," the vice-president of the
Indo-Myanmar Traders Union said.
March 4—Burma’s former Finance and Revenue Minister, Khin Maung Thein,
whose retirement immediately preceded the run on banks, is reportedly
being investigated by military intelligence for his connection to the
crisis.
March 13—A group of border traders from both India and Burma plan a
meeting to discuss possible solutions to ongoing financial problems in the
town of Tamu.
March 14—People in Rangoon begin selling luxury items, including
automobiles, as investors are forced to repay loans. But with fewer people
in a position to buy such items, the price of used cars, for example,
drops by as much as 50 percent. Financial problems are also linked to an
increase in the number of robberies.
March 18—The scarcity of currency continues to strengthen the kyat.
Moneychangers in Rangoon say the greenback is trading for as little as 850
kyat.
______________

Xinhua News Agency March 21 2003

Over 5,600 private industries run successfully in Myanmar

Over 5,600 industries or 14 percent of Myanmar's private ones are running
successfully, said the Myanmar Industrial Development Committee Friday.

There are nearly 40,000 private industries in total scattered in the
country which have been regrouped into 18 industrial zones in nine states
and divisions, it added.

These industrial zones are producing agricultural machinery,
import-substitutes, consumers goods and foodstuff.

There are also 1,760 state enterprises in Myanmar. Since 1995, the country
has been implementing a privatization plan for such enterprises, aimed at
systematically transferring them into effective business organizations.

Since then, a total of 180 state enterprises out of 600 from 18 different
ministries have been reportedly privatized.

Meanwhile, Secretary of Myanmar's Privatization Commission
Brigadier-General Abel has stressed recently the need for the
privatization to proceed at a slow pace to ensure efficiency of the
private sector in terms of management expertise and its financial
strength.

He cited some challenges facing the privatization such as lacking hard
currency by most potential buyers of the state enterprises to import
machinery for upgrading the capacity of the previous enterprises and
possible price increase of the products or services under private
ownership.

REGIONAL

Bangkok Post March 21 2003

BURMA VOWS TO COOPERATE
By Supamart Kasem

Thai and Burmese authorities have agreed to jointly crack down on drug
trafficking along the border.

The agreement was reached during yesterday's meeting of the Border Liaison
Officers (BLO) in Mae Sot. Burma's Pol Col Khin Maung said he was willing
to cooperate in suppressing drug trafficking gangs along the border.

Rangoon had a clear policy on drug suppression, he said.

The BLO in Myawaddy recently arrested two traffickers, seizing about one
million speed pills.

Meanwhile, a local police officer was seriously wounded and a tribal
drug-gang member killed in a gunfight in Tak's Wang Chao district early
yesterday.

Pol Cpl Bunlue Nojit, of Wang Chao police station, suffered serious
injuries in the exchange of fire with Puayee sae Song, 46, a Hmong tribal
drug suspect during a search at his house in a small community.

Another policeman shot and killed Puayee sae Song as the suspect was about
to kill the wounded officer.

MISCELLANEOUS

San Francisco Chronicle March 21 2003

Refugees confront AIDS
By Rona Marech

Many of the Burmese refugees in the Bay Area bear physical and
psychological scars that make their transition more difficult. Though it
is not openly discussed in the community, some who underwent brutal
ordeals in Burma suffer from post traumatic stress disorder.

AIDS is another taboo, but critical, issue in the community. Burma has the
highest rate of AIDS in Southeast Asia and the second-highest in Asia,
said Chris Beyrer, a medical epidemiologist at Johns Hopkins School of
Public Health.

Inevitably, the AIDS crisis in the country took its toll on some of the
student protesters and independence fighters. According to Don Climent of
International Rescue Committee, roughly 20 of the Burmese refugees in the
Bay Area were HIV-positive when they arrived. They were admitted under a
waiver program that allows refugees with serious illnesses like HIV to
immigrate if the local health department is notified and agrees to
routinely send health reports to the Centers for Disease Control and
Prevention in Atlanta. IRC established a special program to help
HIV-positive Burmese clients with medical care, counseling and education.

"Their health improved dramatically after they were brought in. Most went
to work and are leading as productive and normal a life as they can,"
Climent said. "We got to save these people twice. We saved them from their
government, and we saved from their health status."