BurmaNet News: March 27 2003
editor at burmanet.org
editor at burmanet.org
Thu Mar 27 17:06:35 EST 2003
March 27 2003 Issue #2203
INSIDE BURMA
Irrawaddy: Junta warns against ethnic strife
DPA: Bomb kills two, injures two others in Yangon
Japan Economic Newsire: Suu Kyi urges unity for political revolution
toward democracy
Narinjara: Police constable arrested on charge of rape
MONEY
FEER: Saks Inc. joins Burma ban
Narinjara: The long shadow of Burma’s bank crisis
Myanmar Times: Moving industry suffers demand slump
Birmingham Post: Smoking Gun: protesters target Ken Clarke
Canada NewsWire: Ivanhoe Mines Ltd.
STATEMENTS
Statement to House International Relations Committee
INSIDE BURMA
Irrawaddy March 27 2003
Junta Warns Against Ethnic Strife
By Naw Seng
The head of Burma's armed forces, Sr-Gen Than Shwe, today warned that
persisting ethnic strife threatens national unity. The remarks were made
during his annual Armed Forces Day speech in Rangoon.
Over 7,000 personnel from the army, navy and air force participated in a
parade through Rangoon’s Resistance Park early this morning, commemorating
the holiday that was formerly known as Resistance Day.
Than Shwe’s 10-minute address criticized ethnic groups fighting against
the Burmese army. "If sectarian views continue to exist, they will cause
the collapse of national unity," he said. Such a warning is not uncommon
in military-ruled Burma where several militias, including Shan and Karen
groups, are fighting against Rangoon's rule.
The senior general referred to unnamed groups who he said have failed to
recognize the achievements of the military. "It is very obvious that some
groups, not free of foreign influence, are still turning a blind eye to
the goodwill of the military and are holding negative views," he told the
crowd.
Diplomats and political analysts in Burma suggest that Than Shwe, now in
his 70s, has been working to consolidate his own power base since jailing
relatives of Burma’s former dictator, Ne Win, for an alleged coup attempt
last year.
The opposition National League for Democracy is expected to hold its own
ceremony later today. On this day in 1945, Gen Aung San, Burma’s architect
of independence called for a nationwide resistance to drive out and crush
Japanese forces occupying Burma.
__________
Deutsche Presse Agentur March 27 2003
Bomb kills two, injures two others in Yangon
Two people were killed and two others injured when a bomb exploded in
central Yangon (Rangoon) Thursday as military-ruled Myanmar (Burma) marked
Armed Forces Day.
The bomb went off in a pile of garbage in front of the Post and Telegraph
Office on Bo San Pat Street, near the famed Sule Pagoda in the heart of
the city, at about 11:45 a.m. local time, shortly after a military parade
through Yangon's Resistance Park.
There was no mention of the bomb in the local press and no official
comment from police or military authorities.
However, a reliable source identified the fatalities as Maung Aung Tun
Shwe, a male municipal worker, and Ma ohn Mar Cho, also a man. Both were
killed instantly by the blast.
A woman, Ma Aye Than, and another man, Maung Hla Htay, were injured and
sent to hospital. The extent of their injuries was unknown.
The motive for the bombing was unknown, but the timing on Armed Forces Day
suggested it may have been a violent political statement against the junta
that has ruled the country since 1988.
In addition to the parade by military and police personnel Thursday
morning, the National League for Democracy held a rival commemoration of
the day, which the party refers to as Anti-Fascist Resistance Day.
___________
Japan Economic Newswire March 27 2003
Suu Kyi urges unity for political revolution toward democracy
Speaking at Armed Forces Day celebrations at the National League for
Democracy (NLD) headquarters in Yangon on Wednesday, party General
Secretary Aung San Suu Kyi called for a democratic government in Myanmar
and urged party followers to maintain unity, loyalty and understanding.
'Ours is the revolution for democracy. We all are revolutionaries. While
we are striving to achieve our goal, we must have unity, loyalty and
understanding among ourselves,' Suu Kyi told NLD members.
'Success will come sooner or later, but how soon depends on how much each
and everyone of us is contributing for it,' the Nobel Peace laureate said.
More than 400 party members, diplomats and reporters attended the NLD
celebration.
Earlier, Myanmar's ruling junta marked the 58th Armed Forces Day with
celebrations at Resistance Park in Yangon where junta chief Sr. Gen. Than
Shwe spoke to more than 7,000 troops.
Armed Forces Day marks the advent in 1945 of Myanmar's armed forces, which
was formed from fighters who had been resisting Japanese invaders since
1942.
_________
Narinjara News March 27 2003
Police Constable arrested on charge of rape
A Burmese police constable, Htway Thein (La 182811), was arrested in
Mrebon Town, in the middle part of Rakhine State in western Burma on
charge of rape, according to our correspondent.
The constable has been charged with raping a minor girl of ten from Kyauk
Nganwa village under Mrebon Township. The father (U Kyaw Nyein) of the
victim lodged the case on behalf of her daughter on 13th this month. The
alleged rape took place a day earlier in a nipa palm garden near the
village. The accused was serving at the Kyauk Nganwa village police
station.
Though previously there was a number of incidences of such rape in Rakhine
State, the perpetrators, if they were members of law enforcement agencies,
were transferred elsewhere to Burma proper without even getting a scratch,
it was learnt. But since the publication of the Licence to Rape, a human
rights violations report by the Shan Women’s Action Network, the Burmese
junta have issued strong directives to take immediate action and address
the charges, if any.
The arrested constable rapist was immediately closed and interrogated
according to the police laws before being produced before the court.
MONEY
Far Eastern Economic Review March 27 2003
Saks Inc. Joins Burma Ban
Four United States clothing retailers have joined a growing number of
American firms in boycotting products from Burma because of continuing
human-rights violations in the Southeast Asian nation. In a letter to the
activist Free Burma Coalition, Saks Inc. announced that "the policy of our
company is not to buy merchandise manufactured in Burma." The company,
which in 2002 had $5.9 billion in sales in Saks Fifth Avenue and its nine
other retail-outlet clothing chains, joined the Mothers Work, Morsly and
48 Hours Sportswear chains in suspending contract production in Burma.
Morsly officials told the Free Burma Coalition that it had "no intention
of placing orders for production in Burma in the foreseeable future"
because of "the unrelenting repressive nature of the ruling military
junta." Around 40 companies, including Wal-Mart, Federated Department
Stores and Jones New York, have joined the boycott over the past three
years. Officials of the Free Burma Coalition, an umbrella group of
organizations around the world,
say that May Department Stores is the only big-name U.S. retailer still
buying products from Burma. A May spokesperson contacted by the REVIEW was
unable to comment on its Burma policy in time for publication.
__________
Narinjara News March 27 2003
The Long Shadow of Burma’s Bank Crisis
Sittwe, 27th March 03: The majority of businessmen in Rakhine State in
western Burma have been reported to have been pinched by the recent
currency shortage resulting from restrictions on amount withdrawal
throughout Burma, our correspondent wrote.
In Sittwe, the capital of the western Burmese state, there are four
private banks operating besides the lone government-owned Myanmar Economic
Bank. The withdrawal of money in a week has been restricted to kyat five
thousand for a kyat one hundred thousand deposit, kyat one hundred
thousand for a deposit of kyat two million and so on. The restriction has
put heavy pressure on the business community since the necessary amount of
money could not be withdrawn for business deals and payment of wages and
other relevant service charges. A well-known businessman of Sittwe told
our correspondent that most of the people depend heavily upon the private
banks for transactions, and the bureaucracy and unnecessary delay in the
government banks have forced many of the businessmen to avoid transactions
with the government banks. This trend has challenged the state-owned
banks, which have been incurring losses even after facilitating a
twenty-four hour service in all their branches. On inquiry a businessman
told that it was just because of the loss of faith of the people on these
banks that people carefully avoid to do transactions in those banks.
The currency crunch came after worried investors rushed to withdraw their
savings from the country’s twenty private banks amid rumours that they
were headed for collapse.
Meanwhile the action by the banks has proved to be profitable to a section
of the corrupt bank officials and employees they simply take bribes and
‘manage’ the amount of money to be withdrawn. In many cases
recommendations of the junta high officials have been put to the use of a
newly created “bank black market” kind of money withdrawal, the
businessman added. “Today I went to the private bank where I have a
current account. I bribed the manager for the withdrawal of an amount
totalling about double the permitted amount of withdrawal. Even in
banking we have to bribe for the withdrawal of our own money now,” said
the disgruntled businessman, “if that could not be done, I had to go to
high state officials for recommendations, which by any way had to be
obtained through bribing, too.”
Due to the banking crisis the unofficial exchange rate of the kyat has
also appreciated against the Bangladeshi taka. Since last week the kyat
is selling at fifteen hundred to one hundred takas, while previously the
rate was as high as two thousand two hundred to one hundred takas in the
border, resulting from the vanishing kyat in the market. The bid has
caused heavy losses to the Burmese traders and business personnel who are
engaged in the import and export between the two countries. “Less and
less amount of trade is now carried everyday with Bangladesh, which
accounts for losses in the overall export scene a domino effect indeed,
and this is sure to result in casting a longer shadow not yet
experienced,” concluded the businessman.
__________
Myanmar Times March 27 2003
Moving industry suffers demand slump
By Win Nyunt Lwin
THE international furniture moving business is in a slump because there
are fewer foreign postings in Myanmar, said U Thet Khine, general manager
of the Myanmar International Moving Service. He said the transport of
household furniture and personal effects furniture to and from Myanmar
boomed between 1991 to 1997 but has since declined. "Previously, many
diplomatic and business experts stayed in Myanmar and whenever they came
and left they used our services. Our business is totally dependant on
foreign postings, although some tourists send large items to their
countries." Demand has further declined because foreigners who ship their
household goods are not permitted to take wooden furniture made in
Myanmar. They mostly only move the household effects originally brought
from their own countries. The business has also become highly competitive
because there are more than 20 companies in the declining market. "We used
to handle about seven or eight containers of foreigners’ furniture a
month, but now we only handle one or two a month," said U Thet Khine. Most
of the moving services also handle business freight forwarding export and
import companies, and some provide storage services. U Thet Khine said,
"Some foreigners want us to store goods before shipping them to their home
countries, and we have three 1800-square-metre warehouses for this
purpose." Furniture and household effects can be moved by air or sea, but
sea is most popular because it is cheaper. International moving services
also handle all custom clearances.
____________
Birmingham Post March 27 2003
SMOKING GUN: PROTESTERS TARGET KEN CLARKE
Five-month-old Moe Tun joins his father Thaung Tun as 50 'Ken Clarkes'
gathered in London yesterday, wearing face masks of the British American
Tobacco deputy chairman, to demand that the company close the factory it
jointly owns with Burma's military dictatorship. They chanted in Burmese
outside the BAT headquarters, and carried placards shaped as speech
bubbles quoting a letter from former Chancellor Mr Clarke to a constituent
in Rushcliffe, Notts, in which he admitted feeling uncomfortable about
investment in the country. John Jackson, director of Burma Campaign UK,
which organised the protest said: 'We are not going to let Ken Clarke off
the hook. BAT is collaborating with a military dictatorship. They are
funding a regime that rapes, murders and tortures its own people.'
Campaigners from the Burma Campaign were joined by Unison representatives
and members of the Burmese community.
Tun Tun, aged 26, from Burma, has lived in London for four years.
He said: 'When these companies invest in Burma it's over for the Burmese
people. It's so bad and painful for them, they suffer for profit. 'I know
of people being paid just pennies for a day's work - it's worth fighting
for.'
____________
Canada NewsWire March 27 2003
Ivanhoe Mines Ltd. - New independent scoping study recommends staged
expansion of Monywa project to 129,000 tonnes of LME Grade A copper
cathode per year
Edward Flood, Deputy Chairman of Ivanhoe
Mines Ltd., announced today that the production of LME Grade A copper from
the
Monywa Copper Project in Myanmar could increase by 450% following the
implementation of a proposed new, independent expansion plan developed by
Ausenco Limited, of Perth, Australia.
The Ausenco plan calls for Monywa's current production rate of 28,000
tonnes a year to rise to 129,000 tonnes in stages spread over six years - a
level that would establish Monywa as Asia's largest and lowest-cost copper
producer using the advanced heap-leach, solvent extraction and electrowinning
(SX/EW) copper recovery process.
Highlights of the proposed Monywa expansion plan include:
- The generation of an after-tax net present value (NPV) of
US$440 million at a discount rate of 10%.
- An internal rate of return (IRR) of 70%.
- Estimated total production costs, including realization costs, of
US$0.46 per pound of copper produced.
- Capital costs of US$315 million over six years, of which only
US$40.9 million in external funding will be required.
The plan covers the Phase 2 development of the large Letpadaung deposit
in conjunction with ongoing mining of the current Phase 1 Sabetaung,
Sabetaung
South and Kyisingtaung deposits. Ausenco estimates that the capital costs to
progressively expand production to 129,000 tpa will be US$315 million spread
over six years. Due to the success of the current Phase 1 S&K mining
operations at Monywa, Ausenco estimates that US$275 million of the projected
required capital for Phase 2 would be financed internally from the project's
operating cash flow. Based on a copper price of 75 cents (US) a pound in the
first two years and 80 cents (US) a pound thereafter, and a 10% discount
factor, Ausenco calculates the net present value of the project after
repayment of capital costs to be approximately US$440 million - generating an
internal rate of return of approximately 70%.
The Ausenco plan was prepared for Myanmar Ivanhoe Copper Company Limited
(MICCL), which owns and operates the Monywa Copper Project. MICCL is a 50/50
joint venture between Ivanhoe Mines and No. 1 Mining Enterprise, a
state-owned
company. Implementation of the plan is contingent on the approval of the
MICCL
Board and the successful outcome of high-level financing meetings with
Australian, Japanese, Korean and Chinese investors who have expressed
interest
in participating in the planned expansion.
Ausenco's work expands on the May, 2002, Final Development Plan by
Minproc Limited, of Australia, which proposed the stand-alone development of
the Letpadaung Deposit to produce 125,000 tpa of cathode with a capital
investment of US$389 million. Ausenco concluded that the same goal could be
achieved by combining the current S&K Mine with the Letpadaung Project and
implementing a largely self-funded expansion based on the Letpadaung
resources. Significant reductions of financial requirements that were
anticipated by earlier studies were made possible by MICCL's experience
gained
in operating the S&K Project since 1998.
Mr. Flood said that Ausenco's work confirms that the proposed expansion
of the Monywa Copper deposit is financially robust. "The success of the low-
cost copper recovery technology used at the S&K Mine is a major reason why
Letpadaung is widely recognized as one of the best undeveloped copper
projects
in the world. With copper prices rising, we believe that the time is right to
begin the long-planned expansion of this world-scale project."
The Letpadaung deposit, six kilometres southeast of the existing S&K
operation, consists of hypogene chalcocite/diginite, covellite and supergene
chalcocite as the dominant copper mineralization. This mineralization is
associated with a subvolcanic breccia pipe complex and occurs as breccia
matrix and peripheral sheeted veins.
Total measured and indicated resources at Letpadaung are 946 million
tonnes grading 0.43% copper, using a cut-off grade of 0.15% copper. In
addition, the deposit contains inferred resources of 332 tonnes grading 0.35%
copper, using the same cut-off grade. The resources were independently
estimated by Minproc in 1998, based on the resource classification
criteria of
the Australian code for reporting of mineral resources and ore reserves (JORC
guidelines). Details of the parameters and modeling techniques used to
calculate the Monywa mineral resources are in the company's 2002 Annual
Information Form, available on SEDAR.
<<
-----------------------------------------------------------
Letpadaung Resources Tonnes Copper
(+0.15% Cu cut-off grade) (millions) (%)
-----------------------------------------------------------
Measured 519 0.47
-----------------------------------------------------------
Indicated 426 0.39
-----------------------------------------------------------
Total Measured and Indicated 946 0.43
-----------------------------------------------------------
Inferred 333 0.35
-----------------------------------------------------------
>>
Optimized development, integrating the large Letpadaung deposit with the
existing S&K Mine operations, will use conventional open-cut,
truck-and-shovel
mining, followed by heap leaching of crushed and uncrushed run-of-mine ore,
and SX/EW copper recovery.
The S&K Mine has produced at an annual rate of approximately
28,000 tonnes of LME Grade A cathode copper from the Sabetaung and
Kyisintaung
deposits. Minegate production costs at S&K have averaged approximately
37 cents (US) a pound. The mine has repaid US$52.5 million of its original
US$90 million project loan, with the balance scheduled to be repaid in five
semi-annual installments. In March, 2001, the S&K Mine obtained ISO 14001
certification, the internationally recognized, independent standard for
environmental management and protection. Listing of the "Monywa S&K" brand of
Grade A Copper was approved by the LME effective December 13, 2001. The
registration certifies that Monywa S&K cathode has a purity level exceeding
99.999% copper, the standard for LME Grade A copper.
A site map of the Monywa Copper Project showing the S&K Mine and the
Letpadaung project is posted on Ivanhoe Mines' website at
www.ivanhoemines.com.
Ivanhoe has spent approximately US$23 million on exploration and
development at Letpadaung since obtaining exploration rights to the
deposit in
1994. The company drilled 533 holes totalling approximately 112,000
metres. Of
these, 304 were exploration holes drilled within a grid of 3.3 kilometres by
2.3 kilometres to outline the deposit. The other 229 holes were drilled for
hydrological, metallurgical and development purposes. Mineral Resource
Development Inc. (MRDI), of California, acted as consultants to the
exploration program, advising on geological interpretation, geostatistics and
resource evaluation.
Malcolm Lake, P. Eng., of Ivanhoe Mines, a Qualified Person as defined by
National Instrument 43-101 of the Canadian Securities Administrators, has
prepared the technical information contained in this release.
Ivanhoe shares are listed on the Toronto and Australian stock exchanges
under the symbol IVN.
Forward-Looking Statements: Statements in this release that are forward-
looking statements are subject to various risks and uncertainties concerning
the specific factors disclosed under the heading "Risk Factors" and elsewhere
in the corporation's periodic filings with Canadian and Australian securities
regulators. Such information contained herein represents management's best
judgment as of the date hereof based on information currently available. The
company does not assume the obligation to update any forward-looking
statement.
STATEMENTS
Statement to House International Relations Committee March 26 2003
U.S. Interests and Policy Priorities in Southeast Asia
Matthew P. Daley, Deputy Assistant Secretary of State for East Asian
and Pacific Affairs
Statement to House International Relations Committee
Washington, DC
March 26, 2003
Excerpt:
Mr. Chairman, I would like to take this opportunity to thank you and the
members of the Subcommittee on East Asia and the Pacific, for inviting me to
discuss our interests and policy priorities in Southeast Asia.
Chairman Hyde's invitation requested our assessment of U.S.-Indonesian
relations, regional counterterrorism efforts, the situation in Burma,
possible troop deployments in the Philippines, the political climate and
election preparation in Cambodia, and human rights conditions in Vietnam. I
will cover all these topics in the course of my presentation as well as
other Southeast Asian issues of special concern.
.... ...
Burma
With respect to Burma, unfortunately I must report that efforts to foster
peaceful democratic change have come to a halt. The regime has released only
a few political prisoners since late November (and those in advance of a
visit by the UN Special Rapporteur), and has made new arrests of political
activists in that same timeframe. Most seriously, the junta has not
demonstrated a willingness to begin a real dialogue with the National League
for Democracy on substantive political issues. Although Aung San Suu Kyi has
been able to travel in Burma, her most recent trips were marred by incidents
instigated by government-affiliated organizations and believed to be based
on orders from Rangoon. An already poor economic situation has been further
unsettled in recent weeks, with a banking crisis causing financial
uncertainty in the country. This crisis serves as an indisputable
illustration of the mismanagement of the economy by the regime.
We continue to support the efforts of UN Special Envoy Razali Ismail to
broker a solution. Absent progress, we will be forced to consider, in
conjunction with the international community, additional sanctions and/or
other measures. However, we cannot expect universal support in these
measures, and the evident lack of agreement within the international
community on the appropriate approach has hampered efforts to isolate and
target the regime effectively.
I also must point out that international sanctions on arms transfers to
Burma have encouraged the regime to turn to China, North Korea, and Russia,
as suppliers, each of which seems prepared to supply both basic and advanced
weapons to Burma.
The military dictatorship in Burma severely abuses the human rights of its
citizens. There is no real freedom of speech, press, assembly, association,
or travel. Patterns of abuse are even worse in ethnic minority areas. These
abuses include extrajudicial execution, rape, disappearance, beating,
persecution, and forced labor, including conscription of child soldiers
censorship, forced relocation, and the curtailing of religious freedom,
The United States has consistently co-sponsored Burma resolutions at the
United Nations General Assembly and the United Nations Commission on Human
Rights containing strong language condemning the ongoing systematic abuse of
human rights. We have also supported and continue to support United Nations
Special Rapporteur for Human Rights Pinheiro's efforts to initiate an
independent, credible investigation of allegations of widespread rapes by
the Burmese military. For his part, Pinheiro has proposed several options to
the regime for establishing a credible mechanism for investigating
allegations of human rights violations in ethnic minority areas. The regime
has yet to agree to a specific mechanism.
Pinheiro cut short his visit to Burma this week after finding a hidden
microphone in a room he was using to interview political prisoners. We
regret that the Burmese government has chosen to treat a representative of
the United Nations with such disrespect. The U.S. Government is supportive
of efforts by the International Labor Organization to engage the regime in
discussions to develop a viable plan of action to eliminate forced labor.
I would also like to point out our concern about the growing humanitarian
crisis of HIV/AIDS in Burma. In 2002, USAID initiated a $1 million program
to address the HIV/AIDS epidemic by funding international non-governmental
organizations (INGOs) to undertake prevention activities. In FY 03, we hope
to increase funding to INGOs; but, no assistance is given to the regime.
Discussions with the government continue on allowing INGOs to conduct
voluntary HIV testing and counseling, as well as on the regime's commitment
to more effective prevention, treatment, and care programs, including for
pregnant mothers and high risk groups.
..... ......
Thailand is making an effort to improve relations with Burma, in part to
achieve cooperation on counternarcotics. Embassy Bangkok maintains contact
with Burmese refugees and displaced persons in Thailand, including political
activists working outside refugee camps. We also provide financial support
to NGOs active in the Burmese democracy movement. Thailand's policy towards
Burmese refugees and dissidents outside refugee camps is in flux. Thailand
continues to accept those fleeing fighting and political persecution, but
may become less tolerant of activities that complicate its effort to resolve
tensions with Burma.
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