BurmaNet News, Feb 5, 2004

[editor at burmanet.org]

Feb 5, 2004 Issue # 2418

INSIDE BURMA
Irrawaddy: Ethnic Groups Say No to Road Map
WMA: Ethnic Groups Reject Myanmar's Roadmap for Democracy, Creating Fresh
Tensions
BBC: Burmese groups reject 'roadmap'
AFP: Myanmar's 'policy of annihilation' fueled 50-year revolt: KNU
BBC Monitor: Burma introduces "e-visa system"

BUSINESS / MONEY
Mizzima: New Trading Point Opened on India-Burma Border
Xinhua: Bangladesh-Myanmar direct shipping link suspended
Hindustan Times: OVL, GAIL face penalty in Myanmar gas field

GUNS
AFP: Myanmar seeks military hardware from India

REGIONAL
AFP: Myanmar man wins lawsuit in seeking refugee status in Japan

INTERNATIONAL
AFX: China, India to hit UN poverty reduction targets but other nations
lagging

OPINION / OTHER
BI: A Complex Industry: Drug Production and Trafficking
Mizzima: For Women, Going across Border to China Means No Return
IFI: How the Mekong power grid violates ADB's own guidelines



INSIDE BURMA
___________________________________

Feb 5, Irrawaddy
Ethnic Groups Say No to Road Map - Kyaw Zwa Moe

A gathering of representatives from Burma’s ethnic groups said the junta’s
plan for political transition will not result in democracy, according to a
statement released by the participants.

The statement, released after a meeting of delegates from 25 ethnic
groups, said that the junta’s seven-step road map, "would not lead to
democratization and establishment of a federal union but only sustain a
military dictatorship in the country."

To establish our road map, we need to break the junta’s road map. —Hkun Okker

Sixty-one representatives from ethnic groups, including two ceasefire
groups and some armed groups, attended the Third Ethnic Nationality
Seminar from Jan 28 to Feb 2. The meeting was held at Law Khee La, Karen
State, an area controlled by the Karen National Union (KNU).

The KNU, which is in the process of negotiating a permanent ceasefire with
the Burmese government, took part in the meeting, said Hkun Okker,
chairman of the ethnic Pa-O Peoples’ Liberation Organization, who also
attended.

The ethnic groups agreed to launch their own road map, titled "Rebuilding
the Union of Burma." It calls for tripartite dialogue among the military,
ethnic and opposition leaders, an interim government and a "legitimate"
National Convention.

The participating groups held their first seminar in 1997 and agreed to
solve Burma’s political problems through tripartite dialogue.

"To establish our road map, we need to break the junta’s road map," said
Hkun Okker, He did not elaborate on the ethnic groups’ strategy for doing
so, only saying that different groups would employ different approaches.

He added that if the KNU agree on an official ceasefire they may demand a
nationwide ceasefire and then call for tripartite dialogue.

The statement released after the seminar also called for a nationwide
ceasefire and the release all political prisoners, including opposition
leader Aung San Suu Kyi.
____________________________

Feb 5, World Markets Analysis
Ethnic Groups Reject Myanmar's Roadmap for Democracy, Creating Fresh Tensions

The country's ethnic groups have rejected the government's 'roadmap' for
democracy, and instead called for the ruling State Peace and Development
Council (SPDC) to hold talks, including the opposition National League for
Democracy (NLD). According to a BBC report, 25 groups and a number of
associated alliances have been meeting over the past few days.
Interestingly, the meeting reportedly included two of the main armed
groups, both of which have nominally agreed recent ceasefires with the
government (see Myanmar: 22 January 2004: Government in Myanmar Fails to
Secure Ceasefire With Major Rebel Group). The BBC's sources have reported
that the government had previously feared that this large collection of
ethnic groups could constitute a 'third force' in the country's political
domain, though it is unclear if these suspicions continue to have
currency. What is evident is that any moves towards democracy cannot truly
take place without dialogue between the government and the NLD, although
the authorities have given no indication when - or if - this will occur.

Significance: This is the latest move to come out of myriad talks that
appear to be taking place. It follows similar reports that emerged in
December 2003, regarding ethnic groups calling for tripartite talks. As it
did then, the SPDC is unlikely - at least publicly - to even acknowledge
these calls. However, these requests do place the authorities in a
difficult position, not least because the administration needs to secure
the support of the country's ethnic groups and other such constituents
before it can hold its National Convention later this year. No date has
been given for this meeting, but the Convention will be tasked with
discussing a new constitution, which will form the bedrock of moves
towards democracy.
____________________________

Feb 4, BBC
Burmese groups reject 'roadmap'

Representatives of 25 ethnic groups and alliances in Burma have rejected
the "road map" to democracy outlined by Prime Minister Khin Nyunt.  At a
meeting held in Burma in the last few days the ethnic groups are said to
have reiterated their call for the military government to start talks. 
They also want the opposition National League for Democracy to take part.

The NLD overwhelmingly won a general election in 1990 but was never
allowed by the Burmese military to take power.  This was the last free
election held in Burma.

Third force

The meeting included representatives of two armed groups that have signed
a ceasefire with the government - such groups were stopped by the
government from attending a similar meeting in l999.

Correspondents say that since the last meeting more than five years ago of
ethnic groups including those on ceasefire, the military authorities have
been concerned that they could become a third force in Burmese politics.

General Khin Nyunt announced the roadmap at a major policy speech in August.

A National Convention is being reconvened later this year to draw up a new
constitution for the country.

However, the government has given no timetable for releasing NLD leader
Aung San Suu Kyi.

Nor has the military suggested that it will release its grip on power.
____________________________

Feb 5, Agence France Presse
Myanmar's 'policy of annihilation' fueled 50-year revolt: KNU

The rebel Karen National Union currently negotiating a peace deal with
Myanmar would never have taken up arms had it not faced a "policy of
annihilation" by Myanmar's army, the group said Thursday.

The ethnic rebels, who with Myanmar's junta called a halt last month to
five decades of fighting, said they vowed to resolve outstanding problems
through political means but lamented being driven to wage one of the
world's longest-running insurgencies.

"If there were chances for just resolution of political problems through
dialogue, and if the Karen people were not subjected to barbaric military
attacks, there would have been no armed resistance by the Karen people,"
the KNU said in a statement commemorating the group's 57th anniversary.

"The armed resistance of the Karen people has continued for so long
because of denial by successive regimes in power to resolve political
problems by political means and their policy of annihilation with brute
military force," it said from its Kawthoolei jungle base along Myanmar's
border with Thailand.

"For that reason, the protraction of the civil war is due neither to the
KNU nor the Karen people."

The junta announced on January 23 that it had reached a ceasefire
agreement with the KNU, but the informal pact fell short of the written
settlement sought by the Karen at six-day talks in Yangon.

A broader peace arrangement is being sought to conclusively end the
insurgency and bring the KNU an element of political legitimacy, but the
group said it faced an uphill struggle.

"It is necessary for those who are responsible (for protracting the civil
war) to entirely renounce the policy of annihilation and hold sincere
political dialogues," it said.

"The KNU is endeavoring to resolve the political problems justly by
political means," the group added. "We still have to make a vigorous stand
and effort for the emergence of a genuine dialogue."

The KNU ceasefire is a rare prize for the junta, which has been courting
the insurgents as it works to have all rebel ethnic groups attend a
national convention to draft a new constitution this year.

The inclusion of the ethnic groups is key to the credibility of the
convention, the first step in a seven-point "roadmap" for democracy
announced last year which the junta hopes will mute international
criticism over its failure to embark on reforms.

The KNU is the largest of the handful of rebel groups still fighting
against Yangon's rule. The junta estimates there are 7,000 rebels in the
insurgent group which took up arms 53 years ago.
__________________________

Feb 5, BBC Monitor
Burma introduces "e-visa system"

Source: The Myanmar Times web site, Rangoon, in English 2 Feb 04

Text of report in English by Myo Theingi Cho entitled: "Online visa
debut", published by Burmese newspaper The Myanmar Times web site on 2
February

Online visa applications have begun flowing in to the Immigration and
National Registration Department since the e-visa system was launched on
21 January, a departmental official said last week.

The official said seven applications had been received up until last
Friday. There were two from Austria and one each from Denmark, Italy,
Singapore, Sweden and the United States.

"Myanmar Burma is the first country in Southeast Asia to offer e-visas,"
said U Pyone Maung Maung, the joint secretary of the e-National Task
Force, which is overseeing a series of e-government projects.

U Pyone Maung Maung said tourists and businesses travellers wishing to
apply for a visa on-line need to access the www.visa.gov.mm site, which
has instructions in seven languages.

Applicants are required to fill in the application form for processing by
the Immigration and National Registration Department. Approved
applications are then returned by email, U Pyone Maung Maung said.

Travellers will need to carry a print-out of the approved application form
to show to Immigration officials on their arrival in Myanmar.

The e-visa fee is 20 US dollars for tourists, and 36 dollars for business
travellers, plus a visa charge of 10 dollars each, U Pyone Maung Maung
said.

"Applicants can pay the visa charge on-line payment with a credit card,"
he said.

The processing time for the e-visas was less than 24 hours.

The introduction of e-visas follows about 18 months planning by the
ministries of Immigration, Foreign Affairs, and Home Affairs, and the
Bagan Cybertech, Inforithm-maze and Myanmar Electronic Trust companies, as
well as the Malaysian-based MSN Trust Gate company.

"About 90 per cent of the process was implemented by the Myanmar side and
the rest, including on-line security, was implemented by the Malaysian
side," U Pyone Maung Maung said.

He said the e-visa system had been trilled in simulated exercises
involving staff of the Myanmar embassies in Bangkok, Kuala Lumpur and
Tokyo.

U Pyone Maung Maung said some tourists had used e-visas to enter Myanmar
during a three month trial period ahead of the official launch of the
system.


DRUGS
_____________________________________

Feb 5, Shan
New Destiny paddy doomed

The 100,000 acre paddy program, part of the military government's New
Destiny crop substitution project, had collapsed resulting in farmers not
only losing crops but are also in danger of losing their fields altogether
if they fail to repay their loans, according to sources from northern Shan
State.

On 24 January, U Htin Thein Maung, Mongyai township officer, summoned 7
well-to-do villagers of Hoya tract. They were told simply that as the
government's monsoon paddy project to make northern Shan State
self-sufficient had foundered, it had lost 27 million kyat ($ 27,000)
alone in Mongyai for the Hsin Shweli seeds, a new strain from China,
fertilizers and pesticides. "For Hoya, our total expenditure was 700,000
kyat ($700), "he was quoted as saying. "I would therefore like you to
advance us the money they (the farmers) owe to us."

To which the villagers readily agreed to pay 100,000 kyat each, said a
source. (Another source, while agreeing with the account said he had heard
the sum total of the loss was given to him as 60 million kyat in Mongyai,
a township 50 miles south of Lashio, the northern seat.)

Sources said other tracts, some 30 of them, were not so fortunate. "Police
officers were dispatched to inform the farmers their fields, homes and
properties would be confiscated if they were unable to pay by June," said
a local source.

The New Destiny campaign, launched in 2002, also affected both civil and
military services, that are also required to have their own paddy fields.

"Very few of them work on their fields most of which were taken away from
the people," said the source in Lashio. "Some, like the electricity
department here, hire people to till their land. Others just instruct the
local people to do it for them free. And when the harvest turns out poor,
like this year, it is the locals who have to pay".

A source from Kutkhai, 48 miles north of Lashio, agreed. He said his
relatives there had to pay 400,000 kyat ($ 400) to Infantry Battalion 242
for the crop failure.

The source from Muse, 62 miles further north and across from China's
Ruili, said for government servants there the way out was to issue "carry
permits" (a euphemism for official authorization to smuggle).
"Transferring a contraband motorcycle from across the border to Lashio
fetches 10,000 kyat," she said. "And if you are bringing in medicines, the
profits are even higher."

Probably due to the monsoon fiasco, the officials have stopped forcing the
farmers at least in Lashio and Muse, to do dry-season rice planting.
"However, official implementation does not appear to be uniform," she
added, "because forced planting of Hsin Shweli is still imposed in
Panghsai (a township east of Muse and opposite China's Wanding.)"

A social worker on the Thai border commented that the situation appeared
to be serious in northern Shan State as the World Food Program was
planning to donate another batch of rice for 200,000 people this year.
Last year it had provided 760 tons of rice for 50,000 Kokang farmers said
to be on the brink of starvation. "Shan rice farmers had never been
starved before," stormed a farmer. "There was always enough to eat. This
is only the government's attempt to draw international assistance in the
name of drugs and crop substitution."

The New Destiny project according to state-run media, aims to encourage
farmers to exchange poppy seeds for rice, wheat, maize and corn. Hsin
Shweli has been advertised as a high yield rice crop. However Shan farmers
say their own indigenous rice taste better. Experts agree. "In terms of
international markets, Shan rice is probably the highest value rice,"
according to Dr. Paul Marolte of International Programs, University of
California _ Davis. (quoted by Irrawaddy, March 2002)

For more information, see Crop Substitution, Show Business: Rangoon's War
on Drug in Shan State


BUSINESS / MONEY
_____________________________________

Feb 5, Mizzima
New Trading Point Opened on India-Burma Border

In 1994 India and Burma signed a historic trade agreement, soothing
decades of antagonism between the two South Asian neighbours.  The trade
agreement was designed to boost border trade between the two countries and
to create economic growth, especially in the border
region.  Initially border trade was poor due to the region’s undeveloped
infrastructure and ongoing militancy problems.

Despite the slow start, the volume of trade has increasingly substantially
over the past decade due to the concerted efforts of both countries. 
Trade across the border has always centred on Moreh due to its location
and facilities.  Through this trade point young entrepreneurs from India
and Burma have stimulated a local economy that now boasts a substantial
amount of revenue.

Buoyed by the growing volume of trade through Moreh, several traders have
been requesting more trading points be opened so as to facilitate a
stronger economic relationship with their Burmese counterparts. 
Specifically the governments and trade organisations from India’s
north-eastern region have been lobbying for Longwa, Rih and Pangsau Pass
to be granted trading point status with Burma.  In response, the Indian
Commerce Ministry has opened a new trade point, Rih, located near
Zokhawthar in the Indian state of Mizoram.  This second official trade
point between the countries was inaugurated recently by Mizoram Chief
Minister, Tawnluia.

Most of the north-east trade organisations have hailed the Indian
government move, saying that Rih will help in increasing the volume of
trade between India and Burma.  RC Agarwal, president of the North East
Federation of International Trade (NEFIT), said, “with the opening of the
[new] trade point, this region will become a major trade hub in south-east
Asia.”

“Mizoram, bordering Burma, is the most peaceful north-east Indian state
and hence the traders [located in Mizoram] can run their business without
any hindrance”, Agarwal pointed out.

Zoram, a businessman based in Mizoram, expressed happiness over the
Commerce Ministry’s decision saying that the volume of trade between India
and Burma will be greatly enhanced now that Rih has been opened to
facilitate trade.  He urged the local government members and
organisations in Rih to do everything in their power to improve the
existing infrastructure in order for business and trade to flourish.

Meanwhile, the Indo-Myanmar Traders Union has also indicted their support
for the Indian government decision, saying that it marks a new beginning
for trade in north-eastern India.  The trade body adviser, Samarendra,
told this correspondent that the Indian Commerce Ministry
should pay more attention in this region considering its great potential. 
“We should look forward beyond Burma to tap into the markets of other
South East Asian countries. Since the Indian government has been
encouraging increased trade with South East Asian countries, the north
east region of India should get more attention”, he added.  He also
repeated the desire of others in the region to have Longwa and Pangsau
Pass also opened as trade points so that people living along the border
near those towns can take advantage of the growing economic relationship
between Burma and India.

It has been learnt that the India government has sanctioned Rs 2 crore
(US$440 000) for the development of infrastructure at Rih.  The amount
will be spent mainly on improving of the existing road system.

Another important issue is that the trade bodies have not been successful
in having more items included in the legal trade list.  Presently there
are only 22 items that can legally be traded with Burma.
____________________________

Feb 5, Xinhua
Bangladesh-Myanmar direct shipping link suspended

Dhaka - The direct shipping service between Bangladesh and Myanmar has
remained suspended for the last one month, as the lone operator of this
line counted huge loss due to high costs.

According to the Daily Star on Thursday, the Chittagong-Yangon shipping
link was introduced in February 2003 by Singapore-based shipping company
Orient Express Lines, soon after Myanmar Senior General Than Shwe visited
Bangladesh in the same year and the two sides agreed to boost bilateral
trade.

The vessel operator, however, were forced to suspend the service recently
due to high operational costs, as Bangladesh has very small amount of
trade with Myanmar.

Orient Express Lines authority said the company incurred a loss of some
half a million US dollars from 18 voyages since the inception of this
line.

The company has asked the shipping ministry of Bangladesh to provide
necessary support and facilities to reduce the operational costs in a bid
to resume the service.

In an alternative choice, Orient Express Lines is considering withdraw the
direct route, and take the more viable India-Bangladesh-Sri Lanka
triangular route instead.

Before introduction of the direct shipping service between Chittagong and
Yangon which takes only two days, sea trade between the two neighbors used
to be done via Singapore with a 10-day journey.
____________________________

Feb 5, Hindustan Times
OVL, GAIL face penalty in Myanmar gas field

ONGC Videsh Ltd and GAIL, the two Indian partners in Daewoo's recent Shwe
gas discovery off Myanmar, may have to buy their way into the field as
they did not contribute to the drilling cost of the first well.

OVL and GAIL, who together hold 30 per cent interest in the A-1 gas block
in Bay of Bengal, may have to pay a penalty for not contributing their
share of drilling cost, industry sources said.

The Shwe-1A sidetrack well, which discovered a field with estimated
reserves of between four trillion and six trillion cubic feet of gas, was
drilled at sole risk by South Korea's Daewoo and compatriot Kogas.

"OVL and GAIL will need to pay their share of drilling cost besides a
penalty which will be decided after discussions," a senior Kogas official
said.

While Daewoo holds 60 per cent stake in block A-1, Kogas has 10 per cent.
OVL, the overseas arm of Oil and Natural Gas Corp (ONGC), has 20 per cent
interest and the remaining 10 per cent is with GAIL.

Both Myanmar and Daewoo view India as the potential market for the gas
discovered in A-1 field and are keen on OVL and GAIL continuing in the
consortium.

Last week, Myanmar's Oil Minister Lin Thi was here to solicit a market for
the A-1 gas.

"We came here to discuss cooperation in hydrocarbon sector and to find a
market for gas (found in Block A-1). India is a big market and we are
exploring how that can be tapped," Thi had said after his meeting with
Petroleum Minister Ram Naik.

Officials said the Shwe-1A sidetrack well encountered 90 feet of net gas
pay at a sub-surface depth of between 9611 and 9802 feet. The Shwe (Gold)
field, which covers an estimated 14,900 acres, can produce gas in excess
of 100 million cubic feet per day of gas.

A major 3D seismic survey is to be performed over the discovery in March
and April ahead of the annual monsoon and an appraisal drilling campaign
will begin in November.

First gas could be flowing in 2008 and daily production capacity of the
field could reach much more than 500 million cubic feet (equivalent to
90,000 barrels of oil) per day, Thi had said.


GUNS
____________________________

Feb 5, Agence France Presse
Myanmar seeks military hardware from India

A high-level military delegation from Myanmar plans to seek defence
hardware from India, a member of the team said Thursday.

There has been widespread speculation in Indian military circles that New
Delhi would seek to sell arms to neighbouring Myanmar on concessional
terms to try to blunt China's influence in the country.

There have also been press reports that Myanmar may seek assistance from
India to build a air force for the country.

"We are looking at procurements from India but the equipment will not be
for the infantry which we manage on our own," the delegation member said,
speaking on condition of anonymity.

"There have been some discussions here and we will meet again," the
official said, on the sidelines of a four-day armament fair attended by
300 defence companies from 21 countries and 18 defence ministers.

"We cannot discuss these matters openly but it would be significant in
terms of supply."

The delegation's visit comes five months after Indian naval chief Admiral
Madhavendra Singh travelled to Yangon in what officials said was a trip to
seek access to Myanmar's ports for Indian ships.

India strained relations with Myanmar after giving sanctuary to exile
groups following the military's seizure of power in Yangon in 1988.

But relations between the two countries have improved in the past two
years with a number of high-level diplomatic exchanges.

In 2002, India resumed arms shipments to Myanmar. Early last month, there
were reports Myanmar had launched a crackdown against Indian rebels
operating from its soil.


REGIONAL
____________________________

Feb 5, Agence France Presse
Myanmar man wins lawsuit in seeking refugee status in Japan

Japanese court on Thursday overturned a decision by immigration
authorities to refuse refugee status for a man from Myanmar who claimed to
have taken part in pro-democracy activities at home.

"The examination by the immigration office was extremely inappropriate. It
should have investigated the case cautiously," presiding judge Masayuki
Fujiyama said in announcing the ruling at the Tokyo District Court.

The ruling, which means the man is now free to re-apply for refugee
status, was the first of its kind concerning refugees from Myanmar, press
reports said.

Japan only grants a handful of foreigners refugee status. In 2002, it
accepted 14 of 250 refugee applicants, down from 26 out of 353 in 2001,
according to Justice Ministry figures.

The Japanese immigration office rejected an application from the Myanmar
man, 30, who requested not to be identified, for refugee status in 1999,
prompting him to file the lawsuit against the decision.

"The examination was conducted in a manner which gives rise to suspicion
that the office had no intention of sincerely verifying that the man is a
refugee," the judge said.

Fujiyama added that he had accepted the man's testimony that he belonged
to an ethnic minority group in Myanmar and he had been persecuted in the
country after taking part in protest movements against the ruling junta.

"The testimony is credible as it conforms to objective circumstances," he
said.

According to the ruling, the Myanmar man started taking part in the
pro-democracy movement in around 1988 when he was a high school student.

He was detained and tortured by the military for 13 months from August
1989 because of his ethnic background and political beliefs, the ruling
said.

He joined the movement again after his release and he came to Japan in
1998 via Thailand to avoid further persecution at home, it added.


INTERNATIONAL
____________________________

Feb 5, AFX European Focus
China, India to hit UN poverty reduction targets but other nations lagging

Asian giants China and India are on track to meet UN poverty reduction
targets, but other nations in the region are being left behind, a UN
official warned here.

Thailand and Malaysia are also set to hit most of the UN's 'millennium
development goals' set for the year 2015, Kim Hak-Su, executive secretary
for the United Nations Economic and Social Commission for Asia and the
Pacific (UNESCAP), told journalists here.

But despite the unprecedented economic growth in Asia since 1990, some
countries in the region are being left behind.

Kim said Cambodia, Laos, Nepal, North Korea, Bangladesh, Myanmar,
Afghanistan and most Pacific island nations are unlikely to hit even one
of the UN's eight development goals by the 2015 deadline.
UN members committed themselves in 2000 to hit eight development goals by
2015 in a bid to lower poverty worldwide.  These goals include cutting the
number of people living in extreme poverty in half, achieving universal
primary education, promoting gender equality, reducing child mortality
sharply, improving maternal health and curbing AIDS, malaria and other
major diseases.

The other goals involve ensuring environmental sustainability and helping
forge partnerships for development.  With China, India, Malaysia and
Thailand each posting more than 6 pct growth annually, they seem poised to
hit most of these development goals, particularly regarding poverty
levels, said Kim.

Other countries like the Philippines "will meet some goals but not
others," said Kim, citing the high educational levels but also the high
levels of poverty in this country.  Not all of the poorest countries were
being left behind, Kim stated, adding that "Mongolia is poor but they are
coming up very well."

Among the characteristics of the countries expected to hit the goals were
"good long-term planning and vision," as well as "good incentive measures
for foreign investment," Kim said. These countries also had many "pro-poor
policies in the social area," aimed at helping the disadvantaged.  He also
warned that attaining higher development might lead to new problems.

As an economy grows, attention might shift the levels of inequality within
a country.  China and India could become "economic powerhouses" but this
could lead to greater environmental problems due to more industrial
activity and fuel being burned there, Kim added.


OPINION / OTHER
_____________________________________

Feb 5, Burma Issues Newletter, Volume 14, Number 1, January 2004
A Complex Industry: Drug Production and Trafficking - by R Sharples

In a global industry estimated to be worth over $400 billion annually the
complexities of relationships between the players and processes of drug
production and trafficking are often overwhelming. We often see the end
product: the addiction, the fragmented and broken lives, sometimes the
deceptive glamour of using drugs. We may often see the dealers but usually
through the constructed confines of a television screen. We don’t often
see the farmer who grows the poppy or the refineries where the poppy is
ground into Grade 4 Heroin. We never see the traders, the agents, the
shareholders, the 3rd parties, the distributors, the pimps, the investors
or the high-ranking authorities who OK its production and the low-ranking
authorities who let it pass through. We barely look into the social and
economic conditions that govern both the suppliers and those who demand
it. Without addressing this complex picture of the global drug industry,
can we really achieve the drive to eradicate drugs?

In Burma that industry is estimated to be worth over $200 million per
year. It is both a source country, for opium and amphetamines, as well as
a trafficking country. In 2003 Burma was given the dubious title of the
second largest opium producer in the world. The United Nations Office on
Drugs and Crime (UNODC) estimated 62,100 hectares of poppy was cultivated
in 2003 producing 810 tonnes of opium. The Amphetamine trade is estimated
to be worth 200 million a year and in 2003 Thai authorities voiced concern
that over 1 billion amphetamine tablets would enter Thailand from Burma.

There seems to be general consensus that opium production is on the
decrease, UNODC figures show a 24% decrease from 2002 to 2003 in
production figures, although reports such as the recent SHAN report1
suggest these figures are highly optimistic. This supposed decrease has
been largely attributed to joint efforts by the Burmese government and
international entities, in particular UNODC. The Burmese government
eradication efforts have largely operated around destruction of poppy
fields, their “showcase” being Northern Shan State. Reports suggest that
this destruction has largely been the crops of poor poppy farmers and
crops close to the main roads and thus highly visible to international
monitors. Crops left in place were those controlled by militia’s aligned
to the SPDC and those most lucrative to their high-placed owners. Crop
substitution efforts have been marred by poor economic return, inadequate
expertise, lack of training and follow-up with farmers, and inappropriate
crops for the terrain they are to be planted in.

Success or failure
it’s hard to determine.

Success maybe in terms of a decrease in opium production
but at what cost
to local farmers and the sustainability of the local economy?

What is even more generally accepted is that amphetamine production is
dramatically increasing. According to a UNODC report in 2002 seizures of
amphetamine tablets rose more than 6-fold between 1996-2001, from 5
million to 34.2 million.2 This shift towards amphetamine production will
only create further problems. It immediately eliminates some very seeable
players of the opium production trade: the poppy farmer, the versatile
weather conditions needed to grow poppy, and the highly visible poppy
fields. On the contraire amphetamine refineries are usually mobile and
small, easy to move at the slightest warning of unwanted visitors. They
can produce substantial amounts of pills throughout the entire year, and
they are apparently flooding the Thai market with unprecedented speed.

A recent S.H.A.N. report places 93 refineries in Shan State alone, there
are also reports of refineries in Karen state. That this industry is
escalating is in little doubt. Those trying to eradicate drug production
in Burma are now faced with the danger of amphetamines merely replacing
poppy in production levels and thus maintaining Burma’s status as a major
drug producer with all its troublesome side effects.

The production of both opium and amphetamines in Burma is largely directed
at consumers in third countries, with only a small amount for internal
consumption. The need for it to be trafficked across international borders
requires a level of complicit cooperation and corruption between
neighbouring country officials as well as high level officials in the host
country. The main trafficking route in most recent times has been through
neighbouring Thailand and then on to Malaysia and Singapore. This
supposedly remains the dominant route for amphetamine trafficking. The
trafficking of opium has changed somewhat, especially since the downfall
of Khun Sa and the increased efforts by successive Thai governments to
eradicate its reputation as a major transit country for heroin
trafficking. The UNODC now estimates that over 60% of heroin is trafficked
through China and distributed through networks in Taiwan and Hong Kong.

Thailand’s recent “War on Drugs” which saw traditional trafficking routes
temporarily halted because of increased surveillance and harsh penalties,
only managed to redirect the drugs through other routes, most notably Laos
and even India. It is an obvious lesson in the “push down pop up
phenomenon”. Push down in one direction and it will merely pop up in
another. While Thailand had supposedly solved its drug problem, in reality
it had merely pushed it off on to someone else. The simple lesson learn’t
here is that drug traffickers will always find alternative routes while
there are complicent players willing to participate in this corrupt and
highly lucrative business.

That there is space for multiple types of drug production in Burma and
that trafficking routes remain open, indicates there are some fundamental
conditions that allow Burma’s drug trade to continue.

So what characteristics make Burma a country that is conducive to both
drug production and drug trafficking?

The role of the governing power.

Why isn’t America a major drug producer, or Australia and Italy for that
matter? Instead they are some of the biggest consumers, but they are not
producers. Why are countries like Burma, Colombia and Afghanistan some of
the biggest drug producers in the world? What conditions exist in these
countries (excluding elements beyond human control such as weather
conditions) which allow a high-level of drug production and trafficking to
occur?

Firstly is the complicity of the governing power, usually a repressive
military regime or dictatorship whose governance is based on oppression of
the majority of the people and little space for criticism.

Secondly is the existence of a corrupt system of governance at all levels.
In Burma, drug trafficking sees extraordinary levels of corruption at the
local level where officials accept bribes for their role in the process
and who make tidy profits from illegal taxation. There is also corruption
within the cross-border trafficking process and undeniably at higher
levels of the government, whose compliance is necessary for such a high
level of trafficking to prosper.

Thirdly is a weak economy which encourages participation from poor farmers
in the growing of opium. A 1999 survey carried out by UNDCP found that
most farmers were involved in opium production to obtain food security or
to off-set poverty. They stated that they turned to opium production
because of rice shortages. While the Burmese government does little to
rejuvenate or develop an economy based on legal trade, the poppy farmers
will continue to turn to poppy cultivation as a means of income that their
government is not providing them. A weak economy also allows drug money
generated income which is then invested into legitimate businesses and
infrastructure. Drug money investment is therefore used to sustain an
economy that is unable to be sustained by legitimate investment. This can
only be seen as indicative of the SPDC’s inability to develop a
sustainable economy based on good governance and legitimate trade and
investment.

Fourthly is the lack of, or weak, infrastructure in the policing and
judicial systems that would normally combat illegal activity such as drug
trafficking. The judiciary is prone to corruption, and either fails to
implement laws or has no sufficient laws to begin with. In the border
areas where both drug production and trafficking is most prominent,
judicial and policing procedures are under the control of the military
which lacks both accountability and transparency. Burma did pass money
laundering legislation in 2002 but currently there has been no influential
figures prosecuted under this law and the law is not retroactive. It is
nevertheless a sign of Burma’s attempts to address the weakness of their
judicial and policing systems.

And lastly is the existence of civil unrest, especially the presence of
armed opposition groups. This creates and unstable environment,
economically, socially and politically, which is conducive to illegal
activity. It has also created a convenient scapegoat of blame for the
SPDC, although there is little evidence that those armed groups opposing
the central SPDC power are involved in the drug trade. In fact the most
notable players in the drug trade are linked to the SPDC through
cease-fire agreements.

The drug industry remains a complex business. In Burma, its continued
existence is fundamentally ingrained in its infrastructure. There are
conditions that allow drug production and trafficking to prosper and it
these conditions that will need attention if Burma is serious about
eradicating drugs.

(Endnotes)
1 Show Business, Rangoon’s “War on Drugs” in Shan State, S.H.A.N. December
2003.
2 Strategic Programme Framework: UN Drug Control Activities in Myanmar,
UNODC, October 2002
____________________________

Feb 5, Mizzima
For Women, Going across Border to China Means No Return – Naw Seng

RUILI, China, Feb 5 (IPS) - Nandar lives in a small, messy room in an
apartment building that doubles as a brothel in this Chinese town across
the  border from Burma. She is not a sex worker -- not yet anyway.

But the lack of job opportunities is driving home the point that she may
not  have much choice but to do what many Burmese women here do for a
living: Their faces painted a ghostly white, they solicit men along a
busy, shadowy street corner in the town centre. "I don't want to be
here," she says.

Nandar arrived in Ruili, in the south-western Chinese province of Yunnan,
from Hefei, the capital of China's eastern Anhui province, where she lived
for three years as the wife of a Chinese farmer who had 'bought' her.

She has passed through Ruili before, when she left Burma for China, At 17,
 Nandar left her small village near Mandalay, Burma's second largest city,
to  take up a restaurant job at the border with China promised by a female
Burmese broker.

At 16 she was kicked out of the house after her mother discovered she had
had premarital sex, a taboo in Burmese culture. "I wanted to die," Nandar 
recalls. At that point - after fighting with boyfriend and moving out of
his  house -- she decided to try her luck with the border job that was
supposed to get her 30,000 kyat (30 U.S. dollars) a month.

She and the broker set out for Muse town, Burma - which lies across Ruili
-- but instead of getting a job there, Nandar was sold by her Burmese
broker to  a Chinese trafficking gang in Wanding, a Chinese border town
near Ruili.

Along with four other Burmese young women, she was drugged and sent to
Jiangsu, a coastal province well over a thousand kilometres all the way at
 the eastern end of China. ''We were all unconscious,'' Nandar recalls.

The girls arrived in Jiangsu five days later and were transferred to
another gang, who took them to neighbouring Anhui province. During their
two weeks there, interested men came to inspect the new arrivals.

Nandar was sold to a Chinese man for 18,000 yuan (2,180 dollars). The
other women went for between 5,000 and 20,000 yuan (600 and 2,420 dollars)
 depending on their youth and beauty, she says.

Buying wives from neighbouring countries - such as Burma or Vietnam -- is
a  thriving business on the Chinese border. Reports of women from these 
countries being deceived, sold or migrating across the border to become
wives of Chinese men are not unusual.

This trend has been fuelled by a mix of factors -- China's opening of its
borders in the eighties, increasing mobility of people, and poverty.  The
one- child policy in China has also resulted in a demographic imbalance
and a  shortage of women and prompts men -- for whom not having a family
bears stigma and who cannot afford big dowries -- to use brokers and look
beyond borders for partners.

The border areas - Ruili in the last decade has become a rough-and-tumble
town where drugs and prostitution are far from unknown -- are also a
magnet for poor women in search of jobs.

Given military rule in Burma, it is also not easy for Burmese women who
leave the country illegally to return. Many get as far as Ruili, but end
up  in sex work. Many die there too, killed by HIV/AIDS and heroin.

For Nandar, life continued in her second 'home' -- a village near Hefei,
capital of Anhui province, with her 50-year-old husband. Her work included
farming, breeding animals, housekeeping. After a year, she gave birth to a
 baby boy.

''I really wanted to go back to Burma, but I couldn't when I saw my
child's face,'' she said. Still, she continued to think about ways to flee
her husband and China. One day, a quarrel with her husband led her to eat
rat poison. ''I almost died,'' Nandar adds. After three days in hospital,
she was back home.

Nandar befriended the only other Burmese woman in her village. To their
neighbours, the two were from Yunnan province, at the western end of China
that is close to Burma, Thailand and Vietnam. The women never revealed
their  Burmese heritage.

One evening shortly after she recovered from eating the poison, Nandar and
 her friend left their husbands and families. They ran for three hours to
a  police station. Both were sent back to Ruili.

Burmese authorities say they are working on preventing girls from becoming
victims of human traffickers and are helping them to go home.  More than
10,000 girls returned to Burma from neighbouring countries between July
2002  to July 2003, according to the Myanmar National
Committee for Women's  Affairs, which coordinates the government's
anti-trafficking programmes.

The Burmese government says 390 traffickers were arrested during the same
period, and 1,008 women were ''saved from being sold abroad''.  ''The
flesh trade is bad for both China and Burma,'' says Mya Maung, a former
employee of Save The Children, an organisation that works with
women like Nandar along the Chinese border.

He doubts the sincerity of the Burmese government's efforts and its
figures about the number of women who have returned to Burma. He estimates
that over  700 Burmese women still live in China's Anhui, Hunan,
Guangdong, Hubei, Fujian, Jiangsu and Sichuan provinces.

Mya Maung says that Burmese authorities arrested two Burmese women who
fled  their Chinese husbands last year after they re-entered Burma. Both
were sentenced to long prison terms for illegally leaving the country. 
''Now I am  afraid to send the girls back home,'' he adds.

Those who do not go home have limited options in Ruili. Most turn to sex
work and are exposed to HIV and coupled with drug problem in the border
with  Burma, make a mix of high-risk factors. Yunnan province has the
highest HIV  rates in China - and the U.N. Development Programme in an
August 2003 report says Ruili is ''one of the Cities in China where HIV
was first detected''.

A prostitute's fee - 10 yuan (US 1.20 dollars) for a brief encounter or 50
 yuan (6 dollars) per night -- is barely enough to survive on, but few 
Burmese women find other ways of securing an income.

One of Nandar's friends, 37-year-old Ma Than, fled China's Hunan province
after living with her Chinese husband for seven years. Now she collects
plastic refuse in Ruili for five or six yuan (60 to 70 cents) per day -
she  cannot sell sex because of her age. ''I thought I would return to
Burma some  day with  alot of cash,'' Ma Than explains. ''But I got
nothing.''

The Burmese government is responsible for women like Nandar and Ma Than,
maintains Aye Aye Myint of the Ruili branch of the Burmese Women's Union,
based in Thailand.

Her organisation provides condoms and sex education to prostitutes. The
military government does nothing for the girls who are the victims of
trafficking gangs, she says. At the same time, she believes that the only
way to curb the flesh trade is to improve Burma's failing economy, which
drives women to leave home in search of income for their families.

Her group gives the Burmese women in Ruili suggestions on other ways to
make  money, ''but most of them don't listen because we can't find them a
job'', Ma Than says.  For Nandar, the lack of jobs means she has two
choices: to work as a prostitute in Ruili, or to return to her husband
across the border.  Returning to Burma is out of the question. If she
stays, ''I will have to be  good to everyone in order to survive. I will
make my living with what I have.''

A telephone rings in the corner of Nandar's room and she runs to answer
it.  Her face reveals mixed feelings toward the caller on the other end. 
It is  her former husband, calling from Hefei. Nandar hangs up after a few
minutes, sits silently, then says, "It is better to go back there again."

(The author, Naw Seng of 'Irrawaddy' magazine in Thailand, wrote this
article under the IPS-Rockefeller Foundation media fellowship programme
'Our  Mekong: A Vision amid Globalisation'.)
___________________________

Feb 5, IFI Burma
How the Mekong power grid violates ADB's own guidelines

Compiler's note:

The International Rivers Network (IRN) has published a report about the
Mekong power grid and its compliance with the Asian Development Bank
(ADB)'s "safeguard policies".  Safeguard policies are operational
guidelines that the ADB is required to follow.  IRN's report found that
the ADB violated its safeguard policies on energy, water and indigenous
peoples in the development of the Mekong power grid.

What is the Mekong power grid?
The Mekong Power Grid lays out a power connection scheme in the greater
Mekong River region.  The ADB strongly promotes this scheme.  Under the
scheme, broadly put, electricity generated by large-scale hydropower
plants (with large dams) in China, Laos and Burma will be exported and
consumed in Thailand and Vietnam.  As many of you know, the ADB identifies
the controversial Tasang Dam in Shan State, Burma, as one of the sources
of power for the Mekong power grid.

The report and IRN's press release can be read on IRN's website at:
www.irn.org

Text of the letter sent by IRN to the Asian Development Bank


January 28, 2004

Mr. Rolf Eckermann
Executive Director
Asian Development Bank
PO Box 789
0980 Manila
Philippines

Dear Mr. Eckermann,

Enclosed please find a copy of "Sizing Up the Grid: How the Mekong Power
Grid Compares Against the Policies of the Asian Development Bank,"
released this month by IRN. This analysis examines the Bank's development
of the Greater Mekong Subregion Power Interconnection and
Trade Initiative ("Mekong power grid") and its compliance with Bank
policies and strategies.

The Mekong power grid initiative involves the construction of 12
hydropower projects and hundreds of miles of transmission lines across the
region, at a cost of roughly $43 billion. Bank documents state that the
Mekong power grid will provide cheap, reliable and environmentally
sustainable power for Thailand and Vietnam. However, as the enclosed
analysis shows, the Bank has not proven that this initiative is
economically, environmentally or socially sustainable. The ADB has
promoted this initiative through a poor process of development, violating
its safeguard policies on energy, water and indigenous peoples, and
contravening its poverty reduction strategy, strategic environmental
framework for the GMS and the recommendations of the WCD.

Some of the ADB policy violations discussed in the analysis are summarized
below.

1. Lack of participation and consultation
Relevant policies: Operations Manual Section 47, Water Policy, Energy Policy

The Bank's operations manual explicitly states that participatory
development processes will be adopted which allow stakeholders to
influence decision-making throughout project development cycles. Bank
water and energy policies also state that the Bank will encourage
participation and consultation in its initiatives. Despite these
stipulations, members of civil society have been excluded from
participation in the development of the Mekong power grid initiative over
the last ten years. Discussion and debate has been largely restricted to
meetings of high-ranking government officials; ADB, World Bank and aid
agency officials; and hydropower industry representatives.  Basic
information on the Mekong power grid and its potential benefits and costs
has not been presented to the public and nongovernmental stakeholders.

2. Indigenous Peoples Not Engaged in Development Process
Relevant policies: Indigenous Peoples Policy

The ADB's indigenous peoples policy states that initiatives should be
conceived, planned and implemented to the maximum extent possible with the
informed consent of affected indigenous communities. The ADB's policy on
indigenous peoples is applicable to ethnic minority groups in the Mekong
region. The Mekong power grid and the hydropower projects that the grid
would support are likely to impact ethnic minorities. Thus far, ethnic
minority representatives have been excluded from the planning process.
They have not had an opportunity to voice their concern, provide their
consent or discuss alternatives.

3. Environmental and Social Concerns Not Guiding Decision-Making
Relevant policies and strategies: Energy Policy, Poverty Reduction Strategy

In its energy policy and poverty reduction strategy, the ADB states that
environmental and social considerations will be at the forefront of
decision-making and energy planning, with these considerations factored
into project costs. The energy policy states specifically that the Bank
should support regional power trade where this meets environmental
standards. In spite of these policy statements, the Mekong power grid is
going forward without an adequate assessment of its environmental impacts
and without proof that it meets environmental standards. Two influential
ADB-financed studies on regional energy development focused on technical
and economic issues, while failing to adequately address the potential
social and environmental impacts of such activities.

4. Impacts to Fisheries Resources Not Assessed
Relevant policies: Fisheries Policy

The ADB's policy on fisheries states that the impacts of Bank projects on
fisheries must be thoroughly assessed and eliminated or mitigated. 
However, the ADB has not fully assessed the fisheries impacts of the
Mekong power grid or the hydropower projects it would support. These
projects are likely to have significant impacts on fisheries and
subsequently on the livelihoods of people who depend on them.

5. Cumulative Impacts Not Considered
Relevant policies and papers: Energy Policy, Strategic Environmental
Framework for the Greater Mekong Subregion

The ADB's energy policy states that potential hydropower projects will be
evaluated in the context of integrated water resource management. The
Bank's Strategic Environmental Framework for the GMS was created to ensure
that the cumulative impacts of infrastructure investments would be
considered at an early stage in the planning process. Despite these
provisions and aims, the Bank is proceeding with the Mekong power grid
although no assessment of the cumulative impacts of planned hydropower
projects in the Mekong basin has been completed.

6. Cost-effectiveness Not Proven
Relevant policies: Energy Policy

The ADB's energy policy stipulates that the ADB should support power trade
that is cost-effective for all parties. However, the cost-effectiveness of
the initiative has not been proven. The master plan explicitly states that
there are uncertainties regarding the initiative's cost estimates and
environmental implications and that further studies should be completed
before investment decisions are taken. The scenario recommended for
development in the Regional Indicative Master Plan on Power
Interconnection in the GMS is estimated to save about $900 million
compared to a non-grid option. This represents savings on the order of 1-2
percent on a generation and transmission system estimated to cost $43
billion.

Despite the policy violations outlined above, the ADB is continuing to
press forward with the Mekong power grid initiative. In April 2003, the
ADB approved a technical assistance grant to develop a Power Trade
Operating Agreement (TAR: STU 36035). In late 2003, the ADB approved
technical assistance grants for the Nam Theun 2 Hydropower Project
(TAR:LAO 37734) and for power interconnection between Thailand and Vietnam
(TAR: OTH 36044).

IRN is calling on the ADB to take a cautious approach to development and
suspend the Mekong power grid, in light of its potential social,
environmental and economic costs and questionable benefits for electricity
consumers in Thailand and Vietnam. Instead, the Bank should ensure that a
comprehensive assessment of energy options for the region is undertaken in
line with the recommendations of the World Commission on Dams. As part of
this assessment, studies should be carried out to examine the cumulative
environmental and social impacts of the Mekong
power grid.

As an ADB Executive Director, it is your responsibility to ensure that the
Bank complies with its safeguard policies and supports initiatives that
are in line with the Bank's mission. The Mekong power grid is proceeding
in a piecemeal fashion and in violation of ADB policies. We hope you will
take the time to carefully review the attached paper and take appropriate
actions to ensure that ADB policies are adhered to in developing a
sustainable and economically viable plan for meeting the energy needs of
the people of the Mekong region.

We kindly request that you monitor the technical assistance grants and
loans related to the Mekong power grid which are already underway and
raise concerns with Bank staff to rectify the policy violations outlined
above.

Thank you for your time. I look forward to your response.

Sincerely,


Susanne Wong
Southeast Asia Campaigner

Encl.