BurmaNet News: August 17-18 2003

[editor at burmanet.org]

August 17-18 2003 Issue #2307

INSIDE BURMA
Xinhua: Chinese military leader Guo Boxiong holds talks with Maung Aye
Irrawaddy: Junta Seeks China’s Help
DVB: Burmese deputy leader escapes assassination attempt
SHAN: Ceasefire leaders "harking at bedtime story"
Narinjara: Communal tension almost flare up to violence
UN Wire: Regional Meeting On HIV/AIDS Held In Myanmar

MONEY
AFP: Economic chaos grips Myanmar as US sanctions start to bite
AP: Myanmar junta warns that U.S. sanctions will create anarchy

REGIONAL
BP: Ethnic Minorities Raise Concern
Hindu: India continues its engagement with Myanmar

INTERNATIONAL
Canberra: Parliamentarians Unite in plea for Burma human rights action
AFP: US exempts diplomats from Myanmar trade sanctions


INSIDE BURMA

Xinhua News Agency   August 18, 2003
Chinese military leader Guo Boxiong holds talks with Burma's Maung Aye

Beijing, 18 August: China is keen to develop the long-standing friendly
neighbourly and cooperative ties with Myanmar Burma in the new century,
Guo Boxiong, vice-chairman of the Chinese Central Military Commission
(CMC), said in Beijing Monday 18 August .
Guo made the remark while holding talks with the visiting Maung Aye,
vice-chairman of the State Peace and Development Council (SPDC) of the
Union of Myanmar, who is also Myanmar Deputy Commander-in-Chief of Defence
Services and Commander-in-Chief of the Army.

Noting that China and Myanmar are friendly neighbours linked by mountains
and rivers, Guo said that their bilateral relations have been developing
steadily during the 50 years of diplomatic ties, based on the five
Principles of Peaceful Coexistence jointly advocated by both sides despite
highly volatile changes in the international situation.

Sino-Myanmar military ties is a major component part of their bilateral
relations, and China will join efforts with the Myanmar side to promote
the friendly cooperation between the two armed forces, Guo said.

Maung Aye said Myanmar and China have conducted sound cooperation in
various fields over recent years, and China has become the leading trade
partner of Myanmar, adding that the Myanmar side hopes to strengthen and
further expand friendly bilateral economic exchanges and trade as well as
cooperation in anti-drug trafficking.

The Myanmar side will as adhere to the "One China" policy on the Taiwan
issue, and hoped to further solidify and promote the friendly cooperative
ties between the two countries and their armed forces, Maung Aye said.
_______________

The Irrawaddy   August 18, 2003
Junta Seeks China’s Help
By Kyaw Zwa Moe

Burma’s Deputy Sr-Gen Maung Aye is visiting China this week to ask Chinese
leaders to help solve Burma’s economic woes, analysts said.

The junta’s number two leader, Maung Aye, set off yesterday for a six-day
trip to China, the most important diplomatic trip for the military regime
since the May 30 attack on the opposition in Upper Burma. Thirty-five
government officials are accompanying Maung Aye, including top junta
leaders Lt-Gen Thura Shwe Mann and Secretary-Two Lt Gen Soe Win.

Analysts inside and outside Burma say Maung Aye’s discussions with Chinese
leaders will focus on economic issues. A respected journalist in Rangoon
told The Irrawaddy, "I think one of the main intentions of his trip is to
get financial and economic help from China since they [the junta] are
suffering because of more US sanctions."

Last month, Washington imposed tough sanctions in response to the
crackdown in May. The sanctions include a ban on imports from Burma to the
US and a freeze on the American assets of the military leaders. They also
bar foreign exchange transactions which use US currency, a measure which
has hurt the business of importers and exporters.

"At the moment the junta desperately needs help from China to keep their
business sector running," another observer in the Burmese capital said.
"The most important thing for the junta is to find a way to overcome US
sanctions. They hope China will help."
Maung Aye plays a pivotal role in managing Burma’s economy. He is chairman
of the National Industrial Development Committee, the National
Agricultural and Economic Development Committee and the National Trade
Committee, which oversees cross-border trade.

The observer said that while Maung Aye’s visit will be mainly concerned
with trade and economic cooperation between Burma and China, he expects
Maung Aye will also work to consolidate military ties. He said that there
was rising tension on both sides, with more and more Chinese troops
reportedly being deployed close to the border with Burma.

Meanwhile, opposition members outside the country say that politics will
also be on the agenda during the trip. "I don’t think China will accept
this trip unless they can talk about current political issues," said Nyo
Ohn Myint, a member of the foreign affairs committee of the National
League for Democracy (Liberated Area). "China will want to discuss
politics and persuade the junta to consider political reform. China
doesn’t like political disorder in Burma."

Last week, Burmese authorities signed a US $200 million loan agreement
with counterparts from China. The money was originally promised when
military leader Sr-Gen Than Shwe visited Beijing in January and will be
put towards the construction of 790-megawatt power project near Mandalay.
______________

Democratic Voice of Burma, in Burmese (translated by BBC International
Monitoring Service)
August 17, 2003
Burmese deputy leader escapes assassination attempt

DVB Democratic Voice of Burma has learned that a young student was killed
when a bomb exploded at Homalin Airport inauguration ceremony in Homalin,
Upper Sagaing Division, on 3 August. The bomb exploded near the place
where the ribbon cutting was to take place and the ceremony about to
begin. The explosion occurred before the plane carrying SPDC State Peace
and Development Council Secretary-2 Lt-Gen Soe Win and party, who were to
attend the inauguration ceremony, landed. DVB correspondent Khin Maung Soe
Minn filed this report.

Khin Maung Soe Minn - recording A student from the band assembled to
welcome the guests was killed instantly due to the bomb blast, while a
15-year-old student, Kyaw Zin Thant, was seriously wounded, together with
many others. The plane carrying SPDC Secretary-2 Lt-Gen Soe Win, who was
due to cut the ribbon at the inauguration ceremony, and his party landed
at the airport at 1000 0330 gmt . The delegation members included
Transport Minister Maj-Gen Hla Myint Swe, Northwest Military Command
Commander Maj-Gen Soe Naing, SPDC Member Lt-Gen Ye Myint, and the Chinese
and Indian ambassadors. SPDC Secretary-2 Lt Gen Soe Win and party did not
realize the truth as the situation had returned to normal when they
arrived. When SPDC Secretary-2 Lt-Gen Soe Win and party left the airport
after the ceremony, members of the Naga culture troupe, Homalin Shan Ni
culture troupe, and Myanmar Burmese Thaing traditional martial arts group
were interrogated right away. Immediately afterwards, Maj Soe Win from the
engineering battalion, who was involved in the construction of Homalin
airport, and many military officers were detained by Military Intelligence
Unit-17. The Homalin Township Peace and Development Council compensated
the parents of the student killed in the bomb blast, while the wounded
student, Kyaw Zin That, was given 15,000 kyat compensation and assurance
that he would pass his examination. Furthermore, the Township Peace and
Development Council, through the Ward Peace and Development Councils and
the teachers, has warned the people and students from the residential
wards in Homalin, including the schools and the villages not to mention
anything about the bomb blast. But, locals have been talking everywhere
about the assassination plot against Lt Gen Soe Win and party. This
reliable news were received from members of the welcoming party, who
witnessed the bomb blast and is currently at the Burma-India border, and
businessmen who have business dealings with Homalin-based Military
Intelligence Unit-17.
_____________

Shan Herald Agency for News   August 18, 2003
Ceasefire leaders "harking at bedtime story"

According to a commander of a ceasefire group in northern Shan State,
representatives of nine groups that had concluded truce pacts with Rangoon
spent time listening to the deputy military intelligence chief's
re-telling of the 30 May incident instead of discussing issues during the
meeting on Saturday, 16 August.

"At first", said the commander, "many of the representatives had been
keyed up for a scolding from Gen Khin Nyunt about their 1 July joint
statement. However, they were instead received by Maj Gen Kyaw Win, who
never mentioned a word about the statement throughout his narration".

The commander said everyone "harked" politely "at the bedtime story" that
"placed the blame squarely" on the National League for Democracy for the
whole affair. The representatives were informed afterwards that if they
could wait for a few more days, Gen Khin Nyunt might make himself
available. "No date was fixed," the commander told S.H.A.N..

He assumed that Burma's No.3 man must be busy with Vice Senior Gen Maung
Aye's upcoming trip to Beijing. (Gen Maung Aye reportedly departed for
China yesterday.)

"The generals are said to be worried by the Chinese troop deployment along
the border," he said, "and think that the CPB (Communist Party of Burma)
and the ceasefire armies will be re-armed for another uprising against
Rangoon. I certainly don't know how they worked out that conclusion. But
that's why they are in such a hurry."

The commander said he had also talked to Li Ziru, the United Wa State
Army's chief-of-staff, who assured him that the Wa were following the
events closely. "He however thought the resumption of fighting could only
result as a last resort for Rangoon," he said.

All sources agreed that the Wa were holding a crisis meeting, although
details are yet to be disclosed. Unconfirmed reports also spoke of 100-odd
MiG fighters in Kunming, Yunnan's capital.

Meanwhile, a Thai border watcher reported Rangoon's recent instructions to
its military intelligence units to find out whether there were increased
activities in their respective areas by the CPB's underground cells.The
New Light of Myanmar, the military's organ, also reported a meeting on 28
July between generals Maung Aye and Khin Nyunt and Col Michael Norton, US
military attache.

Seven ceasefire groups: Kachin Independence Organization, Kayan Newland
Party, Karenni Nationalities People's Liberation Front, Palaung State
Liberation Army, New Mon State Party, Shan State Peace Council and Shan
State Nationalities People's Liberation Organization, had, on 1 July,
issued a statement "regretting" the 30 May massacre and demanding a
tripartite dialogue.
______________

Narinjara news   August 15, 2003
Communal tension almost flare up to violence

Maung Daw: In the western most township of Maung Daw, the local authority
has to intervene to control the communal tension between the Buddhist
monks and the students from an Islamic religious school.  The authority’s
involvement is due to the fear that the tension may develop into violence,
according to the source within Arakan, Burma.

On 15th of July in Nga Khuu Ra Village, the fight between a monk called U
Thu Ma Na and the students from Islamic school had led to a riot between
the Buddhist and Islamic communities within the township. To deter this
riot from escalating into all out violence, the authority “invited” the
community leaders to meet for a discussion.

The meeting was held on the 20th of July at the monastery of Ahtat Puee Ma
Village, Maung Daw.  Attendees were the Regional Commander of the Region
(5) of the Boarder security force, the Commander of the No (18) Military
Intelligence, Police, and Local Peace and Development Council members, and
the communities’ leaders including the religious leaders.

Communal violence has been frequent in Maung Daw Township over the last
few decades.
_______________

U.N. Wire   August 14, 2003
Regional Meeting On HIV/AIDS Held In Myanmar

A regional HIV/AIDS meeting organized by the World Health Organization and
the Myanmar Ministry of Health opened yesterday in Myanmar to review
measures to reduce HIV/AIDS dangers to injection drug users.

Representatives from China, Cambodia, Indonesia, India, Malaysia, Nepal,
Thailand and Vietnam as well as nongovernmental organizations are
attending the meeting (Xinhua General News Service, Aug. 14).


MONEY

Agence France Presse   August 17, 2003
Economic chaos grips Myanmar as US sanctions start to bite

YANGON: Aggressive new US sanctions against Myanmar have plunged the
military state's ailing economy into chaos, crippling trade and prompting
the junta to devise ways of beating the measures, analysts say.

US President George W. Bush, furious over the regime's detention of
democracy leader Aung San Suu Kyi since May, approved the legislation
which is due to come into effect later this month.

The law bans all imports into the United States, worth 356 million dollars
annually, and freezes the regime's property holdings and financial assets
in US banks as well as halting foreign remittances.

US banks engaged in most dollar-denominated transactions are already
refusing to process transactions with their Myanmar counterparts, blocking
the flow of greenbacks in and out of the country and triggering confusion
for import-export traders over how to proceed with their business.

Apart from the thousands of workers who stand to lose their jobs as
textile factories producing garments for the US market close their doors,
the population is also having to pay much higher prices for some essential
goods.

Traders who are already reeling from a banking crisis earlier this year
that forced loans to be suspended, say their businesses have ground to a
halt as they wait to see how the regime handles the crisis.

Foreign organisations engaged in public health and environmental
protection have complained they are unable to fund their projects, and
embassies are having difficulty financing their day-to-day operations.

And spending on imported or expensive items has been cut as Myanmar
citizens tighten their belts and focus on savings amid uncertainty over
how hard the sanctions will hit.

One of the first effects of the measures has been to drive up prices of
imported medicines as letters of credit issued by the state-run Myanmar
Foreign Trading Bank to allow traders to import goods have been rejected
by US banks.

"The price of life-saving medicines imported directly from well-known
pharmaceuticals abroad has risen by nearly 300 percent while other
medicines have risen by at least 25 percent in the last week," one
importer told AFP.

A source close to the regime told AFP that senior officials have held a
series of emergency meetings with entrepreneurs and traders to brainstorm
ways to circumvent the biting sanctions.

"So far everything is in confusion and no new clear-cut regulations are as
yet forthcoming," a businessman who has attended one of the brainstorming
sessions told AFP.

Proposals put forward so far include boosting transit and border trade
using the local currencies of neighbouring nations and examining how
barter trade might be used, he said.

The regime source said officials have told traders that they should turn
to the euro or other currencies for their foreign trade transactions, but
there are fears that alternative may not exist for long.

Both the European Union and Canada have also expressed their anger over
Suu Kyi's detention by imposing tougher sanctions, while Myanmar's largest
donor Japan has suspended new economic aid.

Alarmed by the impending decline in export receipts, the government has
indicated that it may relax some of its complex trading rules.

Normally, importers may only purchase products from abroad using dollars
earned through exporting Myanmar-made products.

But according to a junta official, money sent home by Myanmar nationals
working abroad is now being classified as export dollars in a bid to free
up money to purchase much-needed goods from overseas.

The kyat currency has weakened against the dollar as dealers scramble to
snatch up the greenback, sending it shooting up from around 900 before the
sanctions were approved to 1,100, then settling back to 1,030 this week
after authorities cracked down on illegal currency traders.

"Authorities may have to turn a blind eye to shadow currency dealings in
the future as bank-to-bank transactions involving dollars get blocked and
traders are obliged to turn to the black market for their dollars, which
they need for border transactions," one analyst said.

"The upshot of all this is that Myanmar will face a bigger trade imbalance
with exports dropping and imports rising."

After years of mismanagement and international sanctions aimed at nudging
Myanmar towards democracy, the economy is already in dire straits.

But the junta has shown no sign of giving in to international pressure
over Aung San Suu Kyi in response to the increased sanctions, instead
lashing out at them and labelling them "weapons of mass destruction".

"The issue is not economic but political," a former Myanmar ambassador
told AFP.

"Instead of trying to run around Bush, they should meet him head on and
settle matters once and for all," he said.
_________________

Associated Press Worldstream   August 17, 2003
Myanmar junta warns that U.S. sanctions will create anarchy

YANGON, Myanmar: One of Myanmar's military rulers has described the U.S.
sanctions on his country as an "unjust and inhumane act" that will cause
chaos and anarchy.

The sanctions were imposed to protest the detention of pro-democracy
leader Aung San Suu Kyi.

"The economic sanctions - unilateral actions taken by major powers on
other countries - violate the U.N. charter and the international code of
conduct," the junta's No. 3 leader, military intelligence chief Gen. Khin
Nyunt, said in remarks reported by Sunday newspapers.

"Sanctions imposed by a big country on a developing country which is
trying to stand on its own feet are an unjust and inhumane act," Khin
Nyunt said Friday at opening ceremonies for a teacher training program in
northern Myanmar.

The sanctions "are aimed at causing hardship among the people, which could
result in chaos and anarchy," he said.

The economic and political sanctions, announced July 28, ban Myanmar
imports, freeze the U.S. assets of Myanmar officials and freeze all U.S.
dollar remittances to the country.

Myanmar's exports to the United States - mostly garments - totaled about
US$356 million in 2002.

The sanctions also bar Myanmar leaders from getting U.S. visas, and make
the military government ineligible for other financial or technical aid.

Myanmar's military seized power in 1988 after crushing a pro-democracy
uprising. It held elections in 1990, but annulled the results after Suu
Kyi's party won.

She was kept under house arrest from 1989 to 1995, and again for 19 months
until May 2002.

After a year of freedom, she was arrested on May 30 following a clash
between her supporters and a pro-junta mob in northern Myanmar.


REGIONAL

Bangkok Post   August 17, 2003
Ethnic Minorities Raise Concern
By Achara Ashayagachat

Thailand should listen to the voice of ethnic groups and the National
League for Democracy (NLD) in pursuing its roadmap'' initiative with the
military junta in Rangoon, their representatives said.

Senior representatives from various ethnic minorities in Burma, who did
not wish to be identified, expressed concern over Thailand's effort to end
the political impasse in Burma, at a closed-door meeting held by
Chulalongkorn University's Institute of Asian Studies and the Asian Forum
for Human Rights and Development. The group was not sure if the Thai
initiative was meant to buy or waste time.

It seemed the idea was to help Rangoon weather international pressure.

Thailand's proposal says the release of NLD leader Aung San Suu Kyi is
part of the roadmap while the NLD and ethnic members said her immediate
release should be a pre-requisite, said Asia-Forum spokesman Sunai Phasuk.

The group said the Thai government should allow them to campaign against
Burma on Thai soil, Mr Sunai said.

Giving ethnic minorities and the NLD the chance to interact would help
them reconcile differences before they joined talks with the State Peace
and Development Council (SPDC), said Kraisak Choonhavan, chairman of the
senate committee for foreign affairs.

Senior members of the National Coalition Government of the Union of Burma,
Burma Lawyers' Council, Thai and Burmese academics, security and Foreign
Ministry staff and other ethnic groups were at the meeting.

A Chulalongkorn University political analyst who asked not to be named
said the government should let others have a say in the roadmap and bring
in other countries, so it could save face if Rangoon rejected the Bangkok
proposal.
___________________

The Hindu   August 18, 2003
VAJPAYEE'S PAKISTAN POLICY (excerpt)
By  C. Raja Mohan

The Government of Myanmar is in deep trouble with the West and even some
of its own fellow members of the ASEAN over the treatment it is handing
out to Aung San Suu Kyi, the leader of the movement for restoration of
democracy in the country.

While American sanctions are beginning to bite Myanmar's economy, India is
continuing its engagement with this important neighbour to the east. Last
month, the Commerce Minister, Arun Jaitley, was in Yangon. It will soon be
the turn of the Union Minister for Information Technology, Arun Shourie,
to travel to Myanmar. The Vice President, Bhairon Singh Shekhawat, and the
External Affairs Minister, Yaswant Sinha, are also due to travel to the
nation later this year.

While maintaining sustained high-level contact, India has no desire to
endorse Yangon's treatment of Ms. Suu Kyi. In formal statements, New Delhi
has been fully supportive of Ms. Suu Kyi's legitimate demands and is
backing all efforts at peace and reconciliation between the two sides in
Yangon.


INTERNATIONAL

The Canberra Times   August 13, 2003
Parliamentarians Unite in plea for Burma human rights action
by Emma Macdonald

Federal parliamentarians from across party lines converged on the ACT
Assembly last night to condemn human rights abuses in Burma and call on
the Australian Government to take a harder line against the military
regime.

The Burmese community in Canberra received bilateral support yesterday for
a resolution calling on the Government to reconsider its policy of
constructive engagement with the regime.  The motion will be passed on to
Foreign Minister Alexander Downer.

Liberal Senator Marise Payne, Labor MP Carmen Lawrence, Democrats Senator
Natasha Stott Despoja and Greens Senator Kerry Nettle all supported the
motion, which also called for the Australian Government to condemn sexual
violence against women and make a strong representation to the United
Nations to increase humanitarian assistance to women and children in Burma
and Thailand.

Greens MLA Kerrie Tucker, who chaired the public meeting said, "It is good
to see that women parliamentarians are able to work across political lines
on this issue".

"The need to challange the lack of democracy and brutality of the regime
in Burma has brought us together and I sincerely hope that the Government
responds positively to this resolution".

Addressing the meeting, Dr Lawrence said the Howard Govermnent's approach
of "constructive engagement" with the regime was "in stark constrast to
the majority of international opinion".

Dr Lawrence pointed out the European Union and the United States had
inplemneted a range of targeted sanctions against the regime and the US
Congress voted in July to ban imports from Burma for three years.  The
British Foreign Office had written to British tour operators asking them
to stop arranging holidays to Burma because of the regime's human rights
record and Japan had frozen aid, she said.

Labor has called on the Government to implement targeted sanctions.

Senator Stott Despoja said that while Foreign Minister Alexander Downer
had publicly callled for National League for Democracy leader Aung San Suu
Kyi to be released from prison, he had failed to respond to the grave
concerns she had raised about Australia's relationship with Burma.

"Perhaps the most chilling irony in Australia's relationship with Burma
occurred last week, when our new Ambassador [ Paul Grigson ] presented his
diplomatic credentials to Burma's military regime on August 8.  Senator
Payne supported the motion but was unable to attend the meeting.
_______________________

Agence France Presse   August 18, 2003
US exempts diplomats from Myanmar trade sanctions

The United States has exempted US and foreign diplomats from aggressive
new trade sanctions against Myanmar due to take effect later this month,
officials said Monday.

In a series of rulings issued late Friday, the US Treasury Department said
diplomats would be allowed to bring into the United States items produced
in Myanmar (Burma) as long as they are not to be sold, the officials said.

The exemption applies to "US diplomatic or consular officials entering the
United States directly or indirectly from Burma" as well as foreign
"personnel employed by a diplomatic mission or consulate in the United
States," the Treasury said.

In addition, the Treasury said it would allow otherwise banned money
transfers from the United States into Myanmar, provided the funds were
intended to support "conduct of diplomatic or consular activities."

The sanctions are to kick in August 28, one month after US President
George W. Bush signed the "Burmese Freedom and Democracy Act of 2003"
aimed at punishing Myanmar's military regime for its crackdown on the
opposition.

The act, which bans all imports from Myanmar, also authorizes aid to
democracy activists, freezes the regime's financial assets in US banks and
property in the United States, and widens a visa ban on Myanmar officials.

But even before the sanctions take effect they are having an affect as US
banks engaged in most dollar-denominated transactions are refusing to
process transactions with their Myanmar counterparts.

This has blocked the flow of dollars in and out of the country, triggering
confusion for import-export traders over how to proceed with their
business.

It has also prompted complaints from foreign organizations engaged in
public health and environmental protection as well as embassies which are
all facing difficulties in financing their day-to-day operations.

Those complaints appear to have been the catalyst for the Treasury
Department's diplomatic exemptions.