BurmaNet News: August 9-11 2003

[editor at burmanet.org]

August 9-11, 2003
Issue #2303

INSIDE BURMA
MAN: Fear of Crackdown Hampers 8/8/88 Demonstration
The Nation: Minority groups: a third force in Burma
Bangkok Post: Burma Queried Over Soldiers
VOA: Burma Again Criticizes West for Economic Sanctions
AFP: Myanmar uncovers fourth bomb
Reuters: Myanmar says needs time to study Thai roadmap
AFP: Myanmar MP released from jail
DVB: Student political prisoners win right to books after hunger strike



INTERNATIONAL
DVB: Burma- Thailand Razali
Tehran Times: EU Concerned About Tower Project at Ancient Myanmar City
The News International: Thai general denies report on Suu Kyi release
Reuters: U.N. envoy wants China role in Myanmar crisis

MONEY
The Nation: Unocal says project in Burma will go ahead
Associated Press:  Burma to get power station
Irrawaddy: New Airline Says MAI Will Close
Myanmar Times: Australia grants Myanmar free access to its markets
Xinhua: Myanmar's bank crisis threatens its financial order, national economy


ON THE BORDER
SHAN: Chinese there to prevent coup

REGIONAL
Irrawaddy: Doubts on Road Map

OPIONIONS/STATEMENTS
The Statesman: Let Suu Kyi Go! MEA Can Summon Diplomats Thrice A Day
Bangkok Post: Burma Conflict Seen as Worst Threat To Future of Grouping
New York Times: A Human Rights Tool


INSIDE BURMA
Muslim Agency for News, August 8, 2003
Fear of Crackdown Hampers 8/8/88 Demonstration

Fears of a crackdown by Thai police restricted a demonstration by Burmese
democracy activists to only 20 minutes today at the Burmese Embassy in
Bangkok.

Democracy activist leaders say the 8/8/88 anniversary demonstration was
cut short and the turnout limited to 20 people because of nervousness
after the arrests of 11 demonstrators at the embassy in June.

Protest organiser Kin San Nwe of the NLD said the demonstration was very
short and nearly silent because demonstrators feared Thai police reaction.

"It is sure that we would have been arrested if the demonstration lasted
longer than 20 minutes," said Kin San Nwe. The Thai police had approved
only 15 minutes for the protest.

Many opposition groups chose not to attend the demonstration. Others who
decided to risk arrest arrived too late to participate in the shortened
protest.

At the shortened demonstration, activists demanded that the SPDC release
Aung San Suu Kyi. They also urged the UN to become more involved in the
fight for Burmese democracy and asked the Thai government to release
details of their Burma roadmap to democracy.

Demonstrators laid wreathes in front of the embassy in memory of those
killed during the 8/8/88 crackdown and Depeyin event in Burma, 15 years
ago today.

The 20 protesters represented various political groups including the NLD
(LA), PDP and Shan, Chin and Pa-O organisations.

_________________________________________________


The Nation, August 11, 2003
Minority groups: a third force in Burma
By: Sai Wansai

Along with the SPDC and the NLD, any discussion about the future of the
nation must include the non-Burman nationalities

Amid talks of national reconciliation and political reforms in Burma, one
important element that is often overlooked is the role of the non-Burman
ethnic nationalities.

When it comes to Burma, most tend to think that there are only two
stakeholders - the military junta or State Peace and Development Council
(SPDC) and Aung San Suu Kyi's National League for Democracy (NLD).

In a legal constitutional sense, the Union of Burma ceased to exist when
the Burmese military, following a coup in 1962, declared the suspension of
the constitution and terminated the only existing legal bond between them
and the ethnic nationalities.

Since then the Burmese military regime has been attempting to hold the
defunct union together by sheer military force, whilst the real and only
solution is political.

The non-Burman ethnic nationalities occupy 57 per cent of the land mass
and constitute 40 per cent of the population of by conservative estimate.

This being the case, it is only logical that any political settlement
excluding them would never work, much less a lasting solution.

But this does not mean that the non-Burmans are opting to break away from
the country and create a Yugoslavia-like situation.

While the political aspirations of the non-Burman ethnic nationalities
have swung back and forth between total independence and federalism during
the past decades, most have now come to terms with settling for a genuine
federal structure, if it meets their needs and aspirations.

This acceptance comes mainly through the prevailing international mood
against dismemberment of an existing state on one hand and an
unwillingness to fight an uphill battle for international support and
recognition for secession or total independence on the other.

It should also be noted that almost all ethnic resistance movements
started out on a total-independence platform, notably the Shan, Karenni,
Karen, Arakan and Kachin. The military junta's exaggeration of 135 races
and possible disintegration of the country without its heavy-handed rule
is nothing more than n excuse to cling to power.

After the end of the Second World War, the leaders of the various ethnic
nationalities met in Panglong to deliberate the possibility of a future
together after the proposed withdrawal of British protection.

General Aung San, the Burman leader of the independence struggle, proposed
that the separate ethnic homelands in the Frontier Areas join as equal
partners in a "Union of Burma" to hasten the process of achieving
independence from Britain.

The Panglong Agreement, which recognised the equality, voluntary
participation and self-determination of the constituent states, formed the
basis for the Republic of the Union of Burma.

But after General Aung San was assassinated in July 1947, the Union
Constitution was rushed through to completion without reflecting the
spirit of Panglong.

The ethnic homelands were recognised as constituent states ,but all power
was concentrated in the central government. In spite of these setbacks,
the ethnic leaders continued to support the government of U Nu, who had
succeeded Aung San, even when the Communist Party of Burma started its
armed revolution, when the war veterans of the People's Volunteer
Organisation went underground and when Burman units of the Burma Army
mutinied.

In fact, army units made up of ethnic nationalities helped restore order
and ensured the survival of the government of U Nu. General Ne Win
launched a coup d'etat in 1962 "to save the nation from disintegration"
and suspended the 1947 constitution.

From the ethnic nationalities' point of view, this act abolished the legal
instrument that bound their homelands to the Union. Thus they consider
themselves to be independent entities held by force in subjugation by an
invading army. In 1993 Slorc and now the State Peace and Development
Council (SPDC) convened a new National Convention to draft a constitution
that will guarantee a leading political role for the military in a future
Burma. After 10 years, the process is still stalled. For the past two
years, attempts have been get the international community, especially the
European governments, to recognise and support the political position of
non-Burman ethnic nationalities.

Non-Burman ethnic nationalities, always put on the back burner, have now
been accepted as one of the main stakeholders in the Burma arena. The
Ethnic Nationalities Solidarity and Cooperation Committee (ENSCC), which
functions as a task force and clearing house for non-Burman organisations,
has outlined its "New Panglong Initiative" in support of the
confidence-building talks between the SPDC and NLD.

Although it might now seem out of place, due to the hardening,
confrontational and tense political atmosphere prevailing in Burma, it is
worthwhile to ponder the concept of this body, which could facilitate the
transition to democracy and political stability in a future Burma.

The ENSCC believes that the non-Burman ethnic nationalities, who helped
create the Republic of the Union of Burma, have a responsibility to help
resolve the crisis in Burma and rebuild the nation.

The ENSCC firmly believes that the crisis is rooted in a political
problem, specifically a constitutional one. The ENSCC also recognises that
the National League for Democracy (NLD) under the leadership of Aung San
Suu Kyi has the mandate to form a government.

But the ultimate aim of the non-Burmans is to eventually bring about a new
constitutional arrangement between the eight states of the Union of Burma.

A transition period from SPDC rule may be necessary. All possible options
from the non-Burman ethnic nationalities' point of view on how we should
bring about the reconciliation and democratisation processes are laid
bare.

It is now the task of all the contending parties within the Burma
political spectrum and well-meaning international players to
wholeheartedly push for restarting the stalled process, so that peace,
harmony and social justice once again prevail in this part of the world.

_________________________________________________


Bangkok Post August 9, 2003
Burma Queried Over Soldiers
By Wassana Nanuam

The Third Army will ask Burma to return two soldiers believed to be held
captive by its military, says chief Lt Gen Picharnmet Muangmanee.

Sgt Sawaeng Romchai was captured after crossing the border via the San
Makhet passage in Chiang Rai 1999. Sgt Dao Warinteh went missing in May
last year after crossing the border.

Lt Gen Picharnmet said he expected good news'' about the soldiers during
the Aug 22-24 Regional Border Committee meeting between Thai and Burmese
authorities in Cha-am, Phetchaburi.

The third army chief said Rangoon, which denied detaining any Thai
soldier, promised to help look for the two men.

On the agenda for the RBC meeting will be the proposal to establish swift
communication channels'' for border officials of the two countries. The
army had informal communication channels with the Shan State Army in case
of problems or conflict, he said.

Asked about US criticism that Thailand had done little to push for
democracy in Burma while pressuring ethnic fighters, he said the SSA was
not ready for talks.

Lt Gen Picharnmet said Thailand had proposed a road map for reconciliation
in Burma which, if successfully implemented, would bring about peace.
_________________________________________________

Voice of America, August 11, 2003
Burma Again Criticizes West for Economic Sanctions

Burma's military government has again severely criticized Western
countries for imposing economic sanctions on Rangoon over the continued
detention of opposition leader Aung San Suu Kyi.

State-run media Sunday quoted General Khin Nyunt, the junta's number three
leader, as saying no foreign power will ever dictate its policies to
Burma, despite the sanctions. Media reports say General Khin Nyunt made
the remarks on Saturday, during a meeting with government and Rangoon city
officials.

Burmese officials have repeatedly said that economic sanctions will hurt
the Burmese people and the country's economy.

The United States and European Union imposed the sanctions on Rangoon
following the arrest of Aung San Suu Kyi, a Nobel peace laureate, on May
30.
_________________________________________________

Agence France Press, August 8, 2003
Myanmar uncovers fourth bomb

Myanmar’s ruling junta said today it had discovered a bomb planted in the
northern town of Monywa where it has accused dissidents of being
responsible for three bomb blasts this week.

The official New Light of Myanmar said that authorities in Monywa, a town
near where opposition leader Aung San Suu Kyi was arrested in May, acted
on a civilian tip-off to detect the bomb and safely defuse it.

"The authorities concerned received information in advance that the
anti-Government organisations abroad ... had been constantly committing
terrorist acts by sending bombers into the nation to cause panic among the
people and by detonating bombs," it said.

Remnants of the Burma Communist Party (BCP) and the All Burma Students
Democratic Front (ABSDF) were blamed for all four bombs.

"The authorities concerned are in hot pursuit of the bombers to find out
the terrorists who committed destructive acts and cannot bear to see the
State's stability and progress," the article said.

Aung San Suu Kyi has been in custody since May 30 when she and her
supporters were ambushed on a political tour of northern Myanmar by a
pro-junta mob, in an attack which dissidents said left dozens dead.

The junta has resisted intense international pressure to release the Nobel
peace laureate.
_________________________________________________

Reuters August August 9, 2003
Myanmar says needs time to study Thai roadmap

Myanmar's foreign minister said on Saturday officials needed more time to
study a Thai plan for democratic transition in the country, which has
earned worldwide condemnation over the detention of opposition leader Aung
San Suu Kyi.

"Home grown solution is the best to solve domestic problems. But we don't
reject the roadmap," Myanmar Foreign Minister Win Aung said when asked by
Reuters what the Myanmar government thought of the plan.

"However, it is rather complicated and we need to take time to study it,"
he said.
Aung said Myanmar was studying the plan.

The Thai government has not publicly released details of the plan but
diplomats say it involves the immediate release of Suu Kyi and talks
between Myanmar's military rulers, Suu Kyi's party and ethnic groups.

Thailand has also proposed a closed-door conference involving Myanmar,
Bangkok and key Western and Southeast Asian nations.

According to a Thai diplomat, U.N. special envoy Razali Ismail is
scheduled to arrive in Bangkok on Monday to discuss the roadmap with Thai
leaders.

Razali, a veteran Malaysian diplomat appointed to his current U.N. post in
April 2000, has visited Myanmar 10 times with a mandate to work for
democratisation and national reconciliation.
Suu Kyi's party, the National League for Democracy, won the country's last
elections in 1990 by a landslide, taking over 80 percent of the seats, but
has never been allowed to govern.

She has spent much of the past 15 years under house arrest and was freed
from her previous spell of detention in May last year.

Suu Kyi was arrested again on May 30 this year after a deadly clash
between her supporters and pro-government youths. She has been detained
ever since.
_________________________________________________

Agence France Press August 8, 2003
Myanmar MP released from jail

A Myanmar opposition member elected as an MP in the disallowed 1988
elections has been freed from jail after seven years behind bars, a
National League for Democracy (NLD) source said on Friday.

The NLD source said Khun Myint Htun, 41, from eastern Mon state was
released from jail on August 1. He was sentenced along with 19 others in
1996 for "unlawful association with underground elements". He'd travelled
for five days to reach Yangon from Buthidaung jail in Rahkine state where
he had to serve an extra sentence for misbehavior inside the jail," the
source said, adding that the other 18 were freed some time ago.
"Misbehaviour" in jails usually means prisoners have made political
demonstrations against their incarceration. The same source said
opposition leader Aung San Suu Kyi and her party's deputy chairman Tin Oo,
who have been in detention since May 30, were receiving regular parcels of
food and medicine from family and friends.

_________________________________________________

Democratic Voice of Burma August 11, 2003
Student political prisoners win right to books after hunger strike

Some political prisoners were staging a hunger strike in Mandalay Prison.
According to additional reports received, the hunger strike was staged by
three political prisoners and it was between 21 and 25 July.

A source close to the Mandalay Prison told DVB that when the hunger strike
was first organized, 18 young men volunteered for it, but only three
followed through when the actual hunger strike was staged.

The three who went on hunger strike - Ko Moe Kyaw, Ko Aung Soe Min, and Ko
Kyaw Nyunt - were students serving long prison terms.

Their three demands were for the authorities to return the books they had
confiscated, permit the reading of new books, and watching television.

Soon after the hunger strike was staged, authorities came to negotiate.
Following negotiations, an agreement was reached to return the books that
were confiscated and to permit the reading of additional books. Prison
authorities, however, rejected the request for television viewing, saying
they would not permit it.

The source said the students who went on hunger strike called it off in
the evening of 25 July since the two of the three demands they made were
already met.

News about the incident has neither been announced by the SPDC (State
Peace and Development Council) nor the ICRC (International Committee of
the Red Cross).

In fact, the SPDC has already permitted the reading of books and
television viewing for political prisoners since the UN special rapporteur
on human rights for Burma, Prof Pinheiro, visited Burma last February.
But, following the Tabayin incident on 30 May 2003, tighter restrictions
are being imposed on newcomers as well as the old political prisoners.


INTERNATIONAL

DVB: Burma- Thailand Razali
By Ron Corben

INTRO: The United Nations special envoy to Burma has given his support to
Thailand's plan to promote political reconciliation between Burma's
military government and the opposition, led by Aung San Suu Kyi. As Ron
Corben reports, Razali Ismail's comments follow talks with Thailand's
foreign minister in Bangkok.

Razali Ismail says a framework is necessary to achieve political
reconciliation in Burma and Thailand's proposed "road map" should be part
of the process.

The United Nations special envoy to Burma made the comments after almost
two hours of talks with Thailand's foreign minister, Surakiart
Sathirathai, in Bangkok. The United Nations is working with Thailand and
other countries to press Burma to release opposition leader Aung San Suu
Kyi, who has been detained since May 30th.

Bangkok's proposal calls for an international forum with the United
States, Britain, China, Japan and members of the Association of South East
Asian Nations. Burma is a member of ASEAN.

Foreign Minister Surakiart recently spoke with his Burmese counterpart,
Win Aung, about the plan. Diplomats say that so far, the proposal has
received a lukewarm response from Burma's military government.

Burmese opposition groups and international human rights organizations say
that since Aung San Suu Kyi's arrest, the government has effectively
closed down her National League for Democracy.

The government says Aung San Suu Kyi has been isolated to prevent a
breakdown in law and order. Officials say they are waiting for the
political situation to cool before releasing her.

The U-S, European Union and Japan have all stepped up diplomatic pressure
on Rangoon to restart efforts toward political reconciliation.

ASEAN has called on Burma to release the opposition leader to prevent
further international sanctions.

Aung Zaw is the editor of Irrawaddy magazine, an opposition publication
based in Thailand. He says Burma could face further sanctions from the
United Nations. He says it is important to have a framework for
reconciliation that has support from both Burma and the international
community.

[ACT 1 AUNG SAW]

There has to be a road map, which will include ethnic minorities and
Burmans (Burmese) as well as the armed forces, that will lead to national
reconciliation and democracy.

[ENDS ACT]

Thailand fears more sanctions on Burma will push thousands of economic
refugees across its border. Bangkok is hoping the Burmese government will
accept its road map for a democratic transition.
_________________________________________________

Tehran Times, August 9, 2003
EU Concerned About Tower Project at Ancient Myanmar City

BRUSSELS -- The European Union expressed serious concern at plans by
Myanmar's military regime to build an observation tower at one of the most
important heritage sites in Southeast Asia.

The EU welcomed talks between the Myanmar government and the United
Nations Educational, Scientific and Cultural Organization (UNESCO) to list
the temple city of Pagan (Bagan) as a world heritage site AFP reported.

"The EU is, however, very concerned at the decision by the Burmese
(Myanmar) authorities that an observation tower is being built at Bagan
and at the implications for Bagan's heritage status," the bloc said in a
statement.

"In light of the potential effect of this project on Bagan, the EU calls
upon the Burmese authorities to consider the consequences of the
construction of this tower for the cultural heritage of Burma," it said.

UNESCO has also expressed alarm at the proposed tower, but the Myanmar
government says it would prevent tourists from climbing on fragile pagodas
and stupas to enjoy views of the historic city in the country's remote
center.

The EU statement, issued by the grouping's Italian presidency, said
however that the tower "would be contrary to accepted international
standards on the preservation of sites of historical importance".

Pagan, a collection of nearly 3,000 10th-14th century Buddhist monuments
covering some 80 square kilometers (31 square miles), is Myanmar's
second-most visited tourist attraction after the Shwedagon pagoda in
Yangon.

In part because of the tower plans, the talks with UNESCO have been
dragging on interminably, frustrating Myanmar's ambitions to see Pagan
listed as its first world heritage site.

The EU's relations with Myanmar have long been soured over the military
regime's refusal to relinquish power.

_________________________________________________

The News International August 9, 2003
Thai general denies report on Suu Kyi release

BANGKOK: A senior Thai general denied on Friday a report that Myanmar
pro-democracy leader Aung San Suu Kyi, whose detention since May 30 has
sparked international outrage, may be freed within the next two weeks.

The Bangkok Post newspaper quoted Lieutenant-General Picharnmet Muangmanee
as saying he had been told by his Myanmar counterparts that the Yangon
military junta was ready to free Suu Kyi, detained after a clash between
her supporters and pro-government youths.

But Picharnmet later denied the report, which quoted him as saying Suu
Kyi's release might coincide with an August 22-24 meeting of Thai and
Myanmar officials to discuss border issues.

The general, who is to co-chair the meeting, said he had had talks with
his counterparts from Myanmar, but that that country's internal politics
had not come up.

"We have talked about cooperation between our armies, but nothing about
Aung San Suu Kyi," Picharnmet told. The newspaper had quoted Thailand's
Third Army commander as saying: "I have received a good signal from Burma
about the planned release of the opposition leader. She will probably be
freed during the RBC (regional border committee) meeting".

Myanmar's military, which has ruled since a 1962 coup, has so far ignored
Western sanctions and an unprecedented public rebuke from its Southeast
Asian neighbours for holding Suu Kyi.

She has been kept in a secret location -- for her own protection, the
government says -- since the end of May.

Myanmar's foreign minister said last week the government was isolating Suu
Kyi to prevent political anarchy, which could destroy the country and
would free her when the situation cooled. Human rights groups say rights
abuses in the former British colony have risen since Suu Kyi's arrest.

Thailand, fearing an influx of economic migrants from its western
neighbour, has proposed that key Western and Asian countries meet the
Myanmar junta to hammer out a 'road map' for democratic transition in the
country.

_________________________________________________

Reuters August 11, 2003
U.N. envoy wants China role in Myanmar crisis

The U.N. envoy to Myanmar said on Monday China should take a bigger role
in resolving the crisis over the detention of democracy leader Aung San
Suu Kyi, despite Beijing saying the matter is an internal affair.

Thailand has proposed a road map to democracy for Myanmar, also known as
Burma, which would include talks involving key Western and Asian nations.

China could play a key role in that process, U.N. envoy Razali Ismail told
reporters after meeting Thai Foreign Minister Surakiarat Sathirthai.

''We recognise the importance of China. China is a neighbour of Myanmar
and in my mind I think China has to be brought along to support this,'' he
said.

In June, Beijing said Suu Kyi's detention was Myanmar's business and it
opposed growing international pressure on the Yangon government.

Razali and Surakiarat repeated calls for the immediate release of Suu Kyi,
detained since a May 30 clash between her supporters and pro-government
youths.

The military junta is holding Suu Kyi at a secret location -- for her own
safety, the government says -- and has pledged to free her when the
political situation cools.

Razali said he hoped to visit Myanmar again, but gave no date. He met Suu
Kyi for an hour during his last visit in June.

Myanmar's military has ruled the country since a 1962 coup and rejected a
1990 landslide election victory by Suu Kyi's National League for
Democracy.


MONEY


The Nation, August 11, 2003
Unocal says project in Burma will go ahead
By Watcharapong Thongrung

US-based petrochemical firm Unocal Corp said last week that US sanctions
on Burma issued by the White House would not affect its investment in a
natural gas pipeline project in that country.

The company said it would be allowed to continue engagement there.

A consortium that included two subsidiaries of Unocal built the pipeline.

Unocal was committed to the principle of engagement to achieve both
economic and social improvements in countries where it worked, a statement
from the firm said.

Unocal said it had expressed to the Burmese government, through diplomatic
channels, its deep concern about recent events.

"In those discussions, the company earnestly requested that the government
there allow access to Aung San Suu Kyi by Tan Sri Razali Ismail, the UN
envoy to Burma; and that the government resume talks on national
reconciliation, including a full explanation of recent events," the
statement said.

Unocal said that Suu Kyi should be released from confinement and that all
parties should immediately resume talks brokered by the United Nations in
order to produce concrete results.

"We join the world community in desiring sustained progress toward
democracy, transparency and improved living conditions in Myanmar
[Burma]," Unocal said.

A source at Thai petrochemical firm PTT said it would not be affected by
the case, and would still take purchase orders of natural gas from
Burma-based Yadana and Yetagun natural gas firms for 660 million cubic
feet and 300 million cubic feet, respectively.

Meanwhile, a report by Kasikorn Research Centre said the US trade
sanctions on Burma had already led to a shutdown of more than 30 textile
factories.

"The remaining textile factories will shut down very soon, which will
result in about 350,000 job losses," said the report.

Over the past three years, Burmese exports to the US reached US$400
million (Bt16.8 billion), accounting for some 12.8 per cent of the
country's overall international trade.

"The US economic sanctions on Myanmar [Burma] through a ban on the
importation of Burmese goods will deal a direct blow to textile and
garment exports to the US, which are currently worth about $300 million,"
the report said.

_________________________________________________
Associated Press, August 11, 2003
Burma to get power station

Rangoon _ Burma's military government and a Chinese company have agreed to
build a US$150-million hydroelectric dam in the country's north.

Under the deal signed on Friday, Yunnan Machinery and Equipment Import and
Export Corporation will build the Shweli power station during a period of
three years, a report in the New Light of Myanmar said.

It did not say when construction would begin on the project in Namkham,
790 kilometres north of Rangoon. The 400-megawatt power station will
generate 3,042 million units of electricity annually, it said.



Burma is facing an energy crisis due to rising local demand coupled with a
shortage of foreign-exchange reserves needed to buy fuel for electricity
generators. Total national output of electricity is 580 megawatts an hour,
which is about 220 megawatts short of the country's electricity needs.

_________________________________________________

Bangkok Post August 11, 2003
New Airline Says MAI Will Close
By Anthony Faraday

August 11, 2003—Burma’s newest airline, United Myanmar Air (UMA),
predicted that the country’s established flagship carrier, Myanmar Airways
International (MAI), is about to fold.

UMA Chairman Edward Tan accused MAI of offering cheap fares it can no
longer afford. "Myanmar Airways International is about to close shop and
it is definite that they cannot carry on any further," Tan told The
Irrawaddy. In July, UMA signed an agreement to launch a new international
airline in a joint venture with Burma’s Transport Ministry, but recently
delayed its launch date.

"We are not going to close," said Wai Wai Lwin, MAI’s Sales Manager in
Rangoon. She said the claims from UMA were baseless, especially
considering that the new airline had yet to purchase any aircraft and was
a long way from its first departure.

Wai Wai Lwin admitted that MAI had been releasing special promotions in
the past few months, but said they were mainly to offset expected losses
since the outbreak of SARS. The airline has also advertised special offers
this month to celebrate the company’s 10th anniversary, and released other
deals since the start of the rainy season, typically a low season for
Burma’s travel industry.

A senior staff member from Air Mandalay, which flies mainly domestic
routes and also runs regular flights to Chiang Mai in Thailand, said he
also expected MAI to be pushed out of the market. He said that once UMA
took to the skies, MAI would disappear.

Tan said MAI is running on empty and his new airline is preparing to take
over as Burma’s national flag carrier. "Their [MAI’s] international
reputation has degraded the country and one favor they can do for the sake
of Myanmar [Burma] is to bow out gracefully because if they don’t they
will cause an even deeper financial hole for the country," Tan said.

UMA recently announced plans to pick up several of the flights MAI cut
from its schedule late last year, including a daily flight to Bangkok.
Since its launch, MAI has struggled to keep up with the well-trusted Thai
Airways International (THAI), which also flies between the Thai and
Burmese capitals. Wai Wai Lwin said, however, that MAI didn’t need to
undercut THAI, because it signed a code-sharing agreement earlier this
year, meaning that THAI and MAI would effectively share passengers on
flights between Bangkok and Rangoon.

Launched in 1993, MAI is a joint venture between the Transport Ministry
and the Singapore-based aircraft leasing firm, Region Air, which is owned
by hotel tycoon Ong Beng Seng.

MAI has changed hands several times. It was originally connected to Royal
Brunei Airlines, but then sold to the Taipei-based Evergreen Group before
ending up with Region Air. The airline flies from Rangoon to Bangkok,
Singapore and Kuala Lumpur—the three routes UMA also has its eye on.

Sunshine Strategic Investments, a Hong Kong-based group of Sino-Burmese
investors, has provided US $15 million for UMA’s start-up. Tan said he
believes UMA will revamp Burma’s aviation landscape with better management
and better service.

_________________________________________________

Myanmar Times August 11, 2003
Australia grants Myanmar free access to its markets
By Win Kyaw Oo

Government officials said last week that Myanmar would gain little benefit
from a decision by Australia to grant the world’s least developed
countries free access to its markets.

They said the decision would have only a small impact on Myanmar because
of the relatively low level trade with Australia.

Myanmar government figures for 2000-2001 put the value of bilateral trade
at US$27.3 million, slightly in Australia’s favour. The figures valued
exports at $11.67 million and imports at $15.63 million.

The director of the Commerce Department’s international trade promotion
department, U Tint Thwin, said Myanmar faced challenges penetrating the
Australian market because of competition from regional countries, such as
Thailand and Indonesia.

However, U Tint Thwin said the decision could generate increased interest
in Australia among the private sector.

The officials were commenting on Australia’s decision to abolish tariffs
and quotas on goods from 49 LDCs, including Myanmar and Bangladesh, as
well as East Timor, from July 1.

The decision, announced by the Australian Trade Minister, Mr Mark Vaile,
followed a commitment made by Canberra in October last year at a meeting
of the Asia-Pacific Economic Cooperation forum.

Mr Vaile said the move was aimed at alleviating poverty in the world’s
poorest countries by enabling them to increase exports and raise living
standards.
_________________________________________________

Xinhua August 11, 2003
Myanmar's bank crisis threatens its financial order, national economy

In early 2003, more than ten non-bank financial institutions, engaged in
illegal deposit-taking business, collapsed one after another due to
breaking rules and regulations in operation and failing to pay the debt by
its capital.

These organizations, involved in real estate, construction, trading and
manufacturing, have taken deposits without restraint by offering a monthly
interest rates of 5 percent and annual rate of 60 percent. These interest
rates are six times the deposit rate prescribed by the Central Bank of
Myanmar (CBM).

Following the bankruptcy of these illegal deposit-taking institutions, it
was widely speculated that 20 private banks including the Asia Wealth Bank
(AWB), Yoma Bank, Myanmar Oriental Bank, Myanmar Universal Bank and
Myanmar May Flower Bank will follow suit and go into bankruptcy.

The panic has led to run on banks, which eventually went out of control
and quickly triggered a bank crisis in the country.

In order to reassure the public and ease their sentiments of fears, CBM
President U Kyaw Kyaw Maung openly refuted the rumors on Feb. 10, calling
on the countrymen to have confidence on banks.

However, the president's refutation had produced counter effects. The run
on banks kept escalating, which had almost exhausted the limited cash
reserve in private banks.

During over 30 years in the past, Myanmar demonetized three times its
currency notes in May 1964, November 1985 and September 1987,
respectively.

Holders of demonetized currency notes were not allowed to exchange from
banks the equivalent amount of legal ones. People lost their money earned
through hard work overnight, which had greatly damaged the credit of the
banks and Myanmar currencies.

As a result, the Myanmar people have little confidence on bank sever
since. Before the eruption of the bank crisis, it was widely rumored that
the CBM will issue new currency notes with a face value of up to 5,000
Kyats. This has added fuel to the flame of the country's bank crisis.

In order to minimize the impact of the crisis, Myanmar has taken the
following measures:

Firstly, it has limited the number of people who withdraw their deposits
from banks.

Secondly, Myanmar put a ceiling on the amount of money to be withdrawn. At
the very beginning, the amount allowed for withdrawal per week per head
was at the most 1 million Kyats. Although the official exchange rate is
one US dollar against six Kyats, the exchange rate on the black market is
one to 1,000 Kyats.

With the run on banks worsening and cash reserve in banks dwindling, the
ceiling for withdrawal per week per head was lowered to 500,000 Kyats,
which was further brought down to 100,000 Kyats and even 30,000 Kyats in
some banks.

Thirdly, Myanmar banks have stopped issuing credit cards and rejected the
payment by customers with credit cards and bank checks by business
enterprises.

Fourthly, the CBM has extended to private banks a total loan of25,000
million Kyats to meet urgent needs. Of these private banks,the AWB, the
biggest in Myanmar, received 12,000 million Kyats in loans. However, these
loans have little effect in controlling thecrisis.

Fifthly the government removed U Khin Maung Thein, Minister of Finance and
Revenue, who was replaced by Major-General Hla Tun.

According to figures of the Central Statistical Organization, by the end
of June 2002, the Myanmar people's savings in state-owned and private
banks totaled 485,420 million Kyats, of which 323,380 million were in
private banks, making up 66.6 percent of the total.

Since 1992, 20 private banks have been set up in Myanmar with 350 branches.

At present, Myanmar's bank crisis is still going on. Bank sources said the
private banks would be plunged into extreme difficulty if the CBM failed
to take effective measures as soon aspossible.

The consequences of the crisis are that financial activities would be
disrupted in Myanmar. Since the outbreak of the crisis, people have been
reluctant to put their money in banks, which has threatened the normal
circulation of money in the country.

The deepening monetary crisis would also seriously hinder Myanmar's
national economic construction and pose a great danger to social
stability.

The Myanmar government has learned many lessons from the crisisand clearly
underlined the importance of strengthening supervisionand management of
financial activities.


ON THE BORDER


SHAN  August 10, 2003
Chinese there to prevent coup

The Chinese army's presence along the Sino-Burma border is to discourage
any designs by hard-liners in the military camp to stage coup on the
'pragmatists' led by Gen Khin Nyunt, according to a ceasefire leader who
recently visited the border.

The commander, who claimed he had talked to one of the commanders of the
People's Liberation Army along the frontier, said Beijing was worried
relations with Washington might take a further downturn if the situation
in Burman ran out of control. "Right now, reports are abound that Gen Khin
Nyunt might be removed by Chairman Than Shwe at any minute," he said. "In
case there reports come true, even those of us (that enjoy ceasefire
agreements with Rangoon) will be forced to review our stand."

According to his information, there are 4 regular regiments, each 1,200 -
1,500 strong, across the
border opposite northern Shan State, and another 3 opposite eastern Shan
State. Shan State Army "South" told S.H.A.N. earlier of the presence of
6,000 troops opposite northern Shan State and another 10,000 opposite
Eastern Shan State. (Ref: PLA takes over border security, S.H.A.N., 1
August 2003)

"The removal of Khin Nyunt will inevitably result in the further
toughening of US policy towards Burma" added. "Beijing wants to avoid
that."

Gen Khin Nyunt, Secretary 1 and #3 man of Burma's Top Three, was also
trying to fortify his position, according to him. "He had previously made
an appointment to meet us on 27 July," he said. "But as he was not able to
make it, the meeting has been postponed to 14 August."

Shan academic and activist Chao Tzang Yawnghwe said on 2 August, "What we
think is that no one is in control and no one in the junta can make
important decisions. They mistrust each other and are engaged in jockeying
against one another."

REGIONAL

Irrawaddy August 11, 2003
Doubts on Road Map

August 11, 2003—At a conference commemorating the 15th anniversary of the
Aug 8, 1988 pro-democracy uprising in Burma, political commentators in
Thailand expressed skepticism on Bangkok’s proposed "road map" for
initiating reform in Burma.

The seminar, Asean: New Initiatives for Regional Peace?, was held at
Chiang Mai University yesterday afternoon, and also commemorated the 36th
birthday of the Association of Southeast Asian Nations (Asean). The
four-person panel offered suggestions for improving the organization’s
ability to resolve conflict in the region, ranging from the promotion of
security through non-military means to the use of force to achieve lasting
peace.

Most of the discussion, however, focused on Thailand’s road map proposal
to secure the release of Burma’s opposition leader, Aung San Suu Kyi, and
to introduce democratic reform to the military-ruled country.
Kavi Chongkittavorn, the Assistant Group Editor of the English-language
daily, the Nation, dismissed the road map as "nothing" because Bangkok has
yet to develop any concrete details to mediate Burma’s political conflict.

Burma has used Asean as a shield to deflect international criticism since
expressing interest in joining the regional grouping in 1995, thereby
"Aseanizing" the Burma problem, Kavi says. He adds that since the May 30
attacks on the opposition in Upper Burma, the country’s political troubles
have become a more pressing international concern. "I hope that if
internationalization continues, there will be regime change in Burma." But
Kavi sounded a note of caution, suggesting that recent terrorist attacks
in the region, such as this week’s hotel bombing in Jakarta, could
distract the international community’s attention away from Burma.

Sunai Phasuk, from the Bangkok-based human rights watchdog Forum-Asia,
cited the lack of trust as the biggest roadblock in the Thai initiative.
"Nobody trusts Thailand as a broker for Burma," Sunai said, pointing to
the Thai government’s crackdown on Burmese dissidents living in the
Kingdom.

Aung Naing Oo, a researcher from the Washington-based Burma Fund, welcomed
the road map but warned that stern action is needed if the junta refuses
the idea. "The international community must be prepared to bring in big
guns if the Burmese regime continues to dig in and ignores negotiating a
reasonable proposal."

The junta in Rangoon has yet to send a clear message on the proposal but
military officials recently said Burma will solve its own internal
problems without outside assistance.

Also on Friday, Burmese dissidents around the world marked the 15th
anniversary of the nationwide pro-democracy uprisings by calling for Suu
Kyi’s immediate release and urging international action against the junta.
On Aug 8, 1988, the military killed several thousand demonstrators who
were protesting against the government.

OPIONIONS/STATEMENTS

The Statesman: August 11, 2003
Let Suu Kyi Go! MEA Can Summon Diplomats Thrice A Day

We assert that the acknowledged leader of the Myanmarese people, Aung San
Suu Kyi, is being held incommunicado in the notorious Insein prison in
Yangon, by a bunch of men in army uniform afraid of this frail woman,
unarmed and incapable of physical resistance but fired with ideals and
matching courage, which overwhelms her tormentors. The junta must not
think that when they allowed her a few minutes of conversation with Razali
Ismail, the UN representative, or when they sent word to the Thai Prime
Minister that she was well and not in prison, anyone believed them. They
are making the same mistake that tyrants and despots have made throughout
recent history, which is to assume, with an arrogance all their own, that
they have only to speak for the world to listen. It listens but does not
accept; it is in the habit of finding out what they do not want anyone to
know. They may remember that the free press around the world has a close
professional bond and it works. If the regime assert to the contrary they
can produce Suu Kyi in her own home for a photo opportunity before the
international media. The Government of India's silence in the face of
grave injustice and abuse of international law needs to be reviewed. It
rests on two premises, both flawed. One, that the colonels and generals
are sheltering assorted insurgents wanted in India and if pushed it could
get worse. The truth is they are already doing their worst. It is an
unstateable proposition to say that they are waiting for India to take a
stand on Suu Kyi to welcome more insurgent groups. Two, military men have
a predictable mindset - to advance when there is no resistance and retreat
in the face of opposition. If government policy is valid, the question
arises why then are we policing the northern border with China and
resisting incursions. Further is it not true that if we abandon vigilance
they will be encouraged to encroach further into Arunachal Pradesh, which
they do not accept as Indian territory in the first place? Is it also not
true that Pandit Nehru encouraged them unwittingly by his famous - not a
blade of grass grows there excuse? It is not intended to trivialize the
problem on our borders, only to suggest that if the policy then was flawed
it is a poor argument to persist with it. It is also a mistake to wait for
Asean to take the lead. With any respect that may be due, it is wise to
recognize that most Asian nations in the grouping are not distinguished as
democratic with a free and unfettered press. Most of them are in it for
what they can get and they can get a lot for the time being by befriending
the junta. Indian businessmen there are just as guilty. Let it be stated
unambiguously that the democratic urge of the Myanmarese people is alive
and will prevail. The junta will not be around for all time. There will be
tomorrow. What then? The least we can do is to take the lead in this part
of the world to say to the junta - in the name of our common humanity, let
Suu Kyi go! And back it up with action. If we say we can do nothing, lock
up South Block and throw the key away!

_________________________________________________

Bangkok Post August 9, 2003
Bura Conflict Seen as Worst Threat to Future of Grouping
By Achara Ashayagachat

Asean would be meaningless if the regional grouping could not bring about
changes in Burma before Rangoon took the Asean chair in 2005, critics told
a seminar marking its 36th anniversary.

Chart Thai party deputy leader Kobsak Chutikul said the Association of
Southeast Asian Nations (Asean) should make Rangoon understand that the
future of the regional grouping now rested on changes in that country.

Asean faced no threat more serious than the Burma conflict which could be
a turning point in revitalising the grouping if it could show the world
that it defused the problem by itself, said Mr Kobsak, vice-chairman of
the House committee on foreign affairs. Thammasat University lecturer
Chulacheep Chinwanno said Burma was one of Asean's weakest links.

Thailand should handle the situation delicately, in cooperation with other
Asean members as well as influential nations such as China, Japan and
India.

Burma is one of the stubborn nations. If we want to offer it a road map,
we have to do it in a very diplomatic way, not to make them feel
pressured. We also have to consider how to contain any damage caused by
our actions,'' said the political scientist.

Thanat Khoman, the only living Asean founding member, said Thailand should
ignore external pressure brought to bear against its policy on Burma.

The former deputy prime minister and foreign minister said Burma, not
Thailand, had to embrace the pressure.

We just have to think of the best paths for our nation. If (Burma) asked
us for suggestions or help, then we should offer them but we should not
meddle in the affairs of other countries, since their freedom and
sovereignty is a matter of their own people.''

Mr Thanat said it was too early to say if Burma should be kicked out of
the grouping.

I just hope that Asean will not fall apart since it is the only
organisation that helps Thailand and the whole region,'' he said.

Mr Kobsak said Asean should be rebuilt before Rangoon took the Asean chair.

Thailand should exercise its regional leadership now during the
soul-searching period rather than putting its resources into creating a
new regional body (the Asia Cooperation Dialogue).

He suggested that Prime Minister Thaksin Shinawatra should even go further
in regionalising his populist policies to attract international attention
to the fading organisation.
_________________________________________________
New York Times August 9, 2003
A Human Rights Tool

A federal appeals court based in California is poised to rule on a case
that could have broad implications for human rights worldwide. A group of
villagers from Myanmar, formerly Burma, charge that when a gas pipeline
was built in their region, they were subjected to forced labor - and that
the American corporation Unocal played a role in their mistreatment (an
accusation that Unocal denies). A three-judge panel has already ruled that
the suit can go forward. But the Bush administration has asked an 11-judge
panel of the same court to block it, arguing that it interferes unduly
with foreign policy.

International human rights issues of this kind are showing up with greater
frequency in American courts, and they raise an array of legal questions,
some of which could indeed affect America's relations with other nations.
But that is not true in this and similar cases. It is important that the
California appeals court, and other courts, stand by the basic principle
that these suits can go forward.

The three-judge panel of the court, the U.S. Court of Appeals for the 9th
Circuit, ruled last year that the Myanmar villagers could sue Unocal under
the Alien Tort Claims Act, a two-centuries-old law that allows noncitizens
to file civil lawsuits under limited circumstances. The case must allege a
violation of "specific, universal and obligatory" international norms:
egregious acts, like the forced labor the Myanmar villagers say Unocal
aided and abetted. And the defendant must be present in the United States
- physically, for human defendants, or by virtue of where they do
business, in the case of corporations.

The Bush administration argues that permitting the Myanmar villagers to
sue will interfere with American foreign policy, including the war on
terrorism. But this is false. The United States has no interest in
protecting companies that engage in forced labor or other such abuses. The
appeals court should adhere to decades of legal precedents and reject the
Bush administration's argument.

As international human rights suits become more common in American courts,
there will inevitably be tougher calls. If a court determined that foreign
policy concerns were real in some future case, it would have at its
disposal a variety of legal doctrines allowing it to avoid deciding the
case. But in the suit before it, where such extraordinary circumstances
are not present, the 9th Circuit should make clear that the Myanmar
villagers have a right to be heard.