BurmaNet News, June 16, 2004

[Editor]

June 16, 2004, Issue # 2497


INSIDE BURMA
KaoWao: Poor forced to pay for basic education
Irrawaddy: Burma’s Nuclear Program: Dream or Nightmare?
Irrawaddy: Burmese Govt Scrutinizes Time Magazine

ON THE BORDER
Irrawaddy: Migrants sidestep crackdown to register to work
newindpress.com: More army troops moved close to Myanmar border

BUSINESS / MONEY
World Markets Analysis: Authorities in Myanmar Begin Nominal Free Trading
with China
Xinhua: Japan to train Myanmar construction workers

REGIONAL
AFP: US puts Thailand on human trafficking watch list

ANNOUNCEMENT
OSI Burma Project Chiang Mai office seeks intern


INSIDE BURMA
______________________________________

June 15, KaoWao News
Poor forced to pay for basic education - Taramon and Lita Davidson

Where only 40% of the population complete primary education in Burma;
students, mostly from poor subsistence based families in Mon State have
had to fork over extra fees in the new school term, which started this
month, a source from Mudon Township said.

“The entrance fees are 4,000 Kyats, in which students pay for the upkeep
of the school which includes repairing it,” a township resident from Mudon
city said.  “They pay not in cash but by donating materials needed to
repair the school, such as cement, logs, and galvanized iron sheets or
they cannot attend,” he added.

The school entrance fees vary in different areas in Mon State. Some
schools in Mudon and Thanbyu Zayat townships charge 2,500 Kyats for
primary school, 2,980 Kyats for middle school and 3,600 to 41,000 Kyats
for high school.

But every student in Hnee PaDol village, southern Mudon Township, pays
about 6,700 Kyats which includes repairing the school.

In Pa-An Township, Karen State, the fee is much higher than in Mon State.
“The Secondary (Middle) school fee is 5,250 Kyats each and I can’t afford
it.  So I’ve had to pull my children out of school,” said Ms. Mi Mya, a
mother of four children.

Students at the Thai-Burma border town also pay a higher fee for their
basic education. At Three Pagodas Pass border town, opposite
Karnchanaburi, the fee for primary school is 180 Thai Baht; middle school
250; and high school 300 Baht. Apart from these entrance fees, parents
must buy textbooks and other materials for the schools.

Normally, students at primary schools spend 315 Baht for middle school,
600 and 1,000 Baht for high school, said a student’s parent.

Since 1990 the Burmese government’s spending on social sector services has
steadily declined, one of the lowest levels of public investment in the
world (Source: http://www.dfid.gov.uk/).

______________________________________

June 16, Irrawaddy
Burma’s Nuclear Program: Dream or Nightmare? - William Ashton

Burma has long been suspected of harboring nuclear ambitions

Over the past 15 years, Burma’s armed forces have demonstrated a
remarkable ability to justify arms acquisitions that, to most observers,
seem to be without any credible strategic or economic rationale. The
ruling State Peace and Development Council, or SPDC, appears determined to
persist with its military modernization and expansion program in the face
of such stark realities as Burma’s struggling economy, the collapse of its
social infrastructure, the poverty of its people and the concerns of its
neighbors.

Perhaps the best example of the military junta’s questionable priorities
is its determination to build a nuclear reactor. This project has caused
considerable unease in the region, and in centers like Vienna and
Washington. Over the past few months, this concern has begun to turn to
alarm, as reports have emerged suggesting that the reactor may be built
with the assistance of North Korea. This has raised the specter of a
future nuclear weapons program that could intimidate Burma’s neighbors and
be used as a bargaining chip against the US and its allies.

Burma’s nuclear ambitions date back at least to December 2000, when the
SPDC’s Minister for Science and Technology, U Thaung, visited Moscow and
met with the Russian Minister of Atomic Energy. There were reports at the
time that Burma had also approached China, and made its interest in a
nuclear reactor known to potential vendors there. Pakistan too may have
been contacted for assistance. The Department of Atomic Energy was created
in U Thaung’s ministry, which was made responsible for pursuing this
project, including contacts with the International Atomic Energy Agency,
or IAEA.

In September 2001 Rangoon formally approached the IAEA for assistance in
obtaining a nuclear research reactor. The agency initially decided to
ignore the request, on the grounds that Burma neither needed a reactor nor
had the infrastructure and funding to support such a project. It was also
concerned about the collapse of Burma’s education system since 1988 and
its low technical skills base. Despite these reservations, an IAEA
inspection team was sent to Burma that November. The team’s assessment,
however, simply confirmed the agency’s original views.

There were rumors in early 2002 that, without the IAEA’s help, the junta
could not meet the cost of the nuclear project. But in May it was
announced that Russia’s Atomic Energy Ministry, known as Minatom, had
agreed to “cooperate in designing and building a nuclear studies center
that will include a research nuclear reactor with a thermal capacity of 10
megawatts and two laboratories.” Minatom undertook to design the center,
help choose the site, deliver the nuclear fuel, and supply all essential
equipment and materials. Russian experts would assemble, install and help
operate the center’s “main technical equipment.” The agreement included
structures for the disposal of nuclear waste and a waste burial site.
Russia would also train Burmese technicians to help build and operate the
reactor. The deal was signed in Moscow in July 2002.

There was initial speculation that the nuclear facility would be built in
Rangoon, followed by some unlikely reports that it was going to be built
on an offshore island near Ye. However, it was later revealed that a
groundbreaking ceremony for the facility was scheduled to take place at a
secret location near Magwe, in central Burma, in January 2003. The reactor
and associated equipment were to be delivered later that year. The Rangoon
regime said that it expected the reactor to be built “within a few years.”
In anticipation of these events, hundreds of Burmese officials were sent
to Russia for training.

The reasons behind the junta’s interest in a nuclear reactor have never
been clear. There were several statements during 2002 that the reactor was
to be used for peaceful medical purposes. The Foreign Minister was
reported as saying too that the reactor could be used “possibly to
generate nuclear power.” Yet the construction of such an expensive and
highly specialized facility for electricity generation is irrational.
Burma could barely maintain its basic civil infrastructure, and its level
of technological development was very low. The production of medical
isotopes could be achieved more economically elsewhere. While it suffers
from electricity shortages, Burma has ample natural gas and is
constructing several new hydroelectric power stations. The main impetus
behind the nuclear reactor project appears to be status and prestige.

The international reaction to the announcement of the nuclear project was
predictable. A number of serious concerns were expressed, relating largely
to the safety and security of any reactor built in Burma. With the example
of the 1986 Chernobyl disaster clearly in mind, the Thais in particular
were worried about Russia’s involvement in the construction project, and
the nature of the facility that was to be built. Also, Thailand and other
neighboring countries feared that Burma would be unable to operate and
maintain the reactor. The IAEA team that visited in 2001, to assess the
country’s preparedness to use and maintain a nuclear reactor safely, was
highly critical of Rangoon’s standards, which were well below the accepted
minimum, even for conventional power plants. Burma’s record of earthquakes
was also raised.

There were security concerns too. Despite ceasefire agreements with most
of Burma’s armed insurgent groups, some were still fighting the junta, and
posed a potential risk to any nuclear reactor. While doubtless heavily
guarded, the facility would still be an attractive insurgent target.
Despite the imposition of tight controls over popular protest since the
1988 democratic uprising, there was also a danger of civil unrest, arising
from decades of repression by the military government and its inept
handling of the economy.

A nuclear reactor would represent a potent symbol of the regime’s penchant
for costly high-status projects, pursued at the expense of basic services
like health and education. With the international terrorist threat in
mind, the US State Department has already demanded assurances from the
junta that it could safely secure such sensitive facilities and materials.

After the initial announcement of the nuclear project, little additional
information has been made available about the reactor, its location, or
the safeguards being put in place to ensure that it is built and operated
according to international standards. This has led to considerable
speculation and a number of additional concerns. In particular, fears have
been expressed that Burma might become a rogue state, and try to develop a
nuclear weapon. Even if a nuclear weapons option was not available, it was
argued, the presence of a nuclear reactor would at least give the Rangoon
regime the capability to develop a “dirty bomb,” which could spread
radioactive material through a conventional explosion.

Few objective observers question the ruthlessness of the military junta in
Rangoon or its determination to cling to power. But an attempt to acquire
a nuclear weapon would be completely out of character for a government
that, ever since its independence in 1948, has had a history of active
participation in global disarmament initiatives.

There was no sign before 2000 that Burma had ever considered the
acquisition of a nuclear reactor, let alone nuclear weapons. Indeed,
successive governments in Rangoon have consistently sought to counter
nuclear threats and enhance the country’s security by opposing the
manufacture, deployment and use of nuclear weapons. Burma has an
impressive record of supporting international legal instruments designed
to limit nuclear weapons proliferation and use. Since 1988, this policy
has been confirmed by the junta. For example, in December 1995 it signed
the Bangkok Treaty, which included a reaffirmation by the ten signatory
states of the obligations assumed under the nuclear Non-Proliferation
Treaty, and contained a ban on the development, manufacture, possession,
control, stationing or transport, testing or use of nuclear weapons.

Notwithstanding this record, the possibility of Burma acquiring a nuclear
weapons capability is now being accorded greater attention. In late 2003,
it was revealed that the nuclear reactor deal with Russia had been
shelved, apparently because the junta had been unable to reach final
agreement with Moscow regarding payment. While no firm evidence is yet
available, there have been suggestions in the international news media
that Rangoon may have turned instead to North Korea to help build its
nuclear facilities. This, in turn, has raised the specter of a Burmese
nuclear weapons program.

In November 2003 the Far Eastern Economic Review reported that North
Korean technicians had been seen unloading large crates and heavy
construction equipment from trains in central Burma, near the reported
site of the future nuclear research reactor. In addition, aircraft from
North Korea’s national airline have reportedly been seen landing at
military airfields nearby. These developments apparently coincided with
the arrival in Rangoon of representatives of the Daesong Economic Group,
which has a record of secretly proliferating nuclear technologies to
Pakistan. The clear implication of the article was that Pyongyang was
providing equipment and materials to help build a nuclear reactor.

The small research reactor Burma was getting from Russia was said to be
unsuited for the manufacture of fissile material, but Pyongyang has the
expertise to provide Rangoon with other options. These fears were
encouraged by an unconfirmed news report in November 2003 that 80 members
of the Burmese armed forces had recently departed for North Korea to study
nuclear technology.

The junta has denied that it has any plans to acquire weapons of mass
destruction. SPDC spokesmen have stated that Burma was putting its energy
and resources into the pursuit of a peaceful, stable and smooth transition
to a multi-party democracy and an open market economy. The nuclear
reactor, which was apparently still on the junta’s list of priority
development projects, was said to be for peaceful research purposes only.
The junta has further claimed that Burma was “everyone’s friend and
nobody’s ally or enemy.” It said that it had no ambition to arm itself
with nuclear weapons and firmly rejected the idea that Burma would ever
threaten any of its neighbors.

There is still considerable confusion about Burma’s plans for a nuclear
reactor. A number of key questions remain unanswered. It is likely to be
several years before the facility is built and comes on line. A number of
major obstacles will need to be overcome.

But even if a Burmese nuclear weapon is simply a bad dream, the
construction of a nuclear reactor will severely stretch Rangoon’s budget
and technical capabilities. It may test Burma’s relations with its
neighbors and the wider international community even more.

The full version of this article appeared in the February issue of the
Asia Pacific Defence Reporter. William Ashton is a pseudonym.

______________________________________

June 16, Irrawaddy
Burmese govt scrutinizes Time Magazine - Naw Seng

Foreign book retailers in Burma are waiting on the government for
permission to distribute Time magazine’s June 14 issue, which includes a
“Viewpoint” commentary written by Aung Zaw, Editor of the The Irrawaddy
magazine, which covers Burma and Southeast Asia.

The article “Military Maneuvers” criticized the unelected regime’s ongoing
National Convention, which is tasked with drafting a new national
constitution, describing it as a “deeply cynical political circus.”

A manager at the Innwa Bookstore, the main foreign periodical sales agent
in Burma, said he didn’t know why the Press Scrutiny Board, or PSB, has
not yet made a decision on whether last week’s issue of Time may be
distributed or not. “Maybe the board is busy,” he told the Washington
DC-based Radio Free Asia Burmese Service.

The Innwa Bookstore store manger said he applied for permission to the PSB
last Friday, but the board had not yet announced a ruling. He said that he
thought last week’s issue was delayed because it included an article that
criticized a government policy.

Both retailers and subscribers are frustrated at the regime’s censorship.
“I have been waiting for the issue. I haven’t seen it yet,” complained a
Time subscriber in Rangoon who spoke by telephone on condition of
anonymity. He also said that sometimes he received the magazine with some
of the pages torn out. “If I want to read the entire magazine, I’ll
probably have to ask my contacts at foreign embassies to bring copies.”

Many editors, journalists and politicians told The Irrawaddy that they saw
the article online or were able to read it in hard copy at the US
Information Service, or USIS, in Rangoon. The final decision on whether
Time will make it to readers intact is to be made by Maj-Gen Kyaw Win and
Brig-Gen Than Tun at the Office of the Chief of Military Intelligence, or
OCMI, the subscriber said.

Usually Rangoon subscribers can read Time magazine a week after the
publication date. According to the Innwa Bookstore, there are over 400
Time magazine subscribers in Burma. The Press Scrutiny Board routinely
tears out pages from magazines and newspapers that carry articles
considered inappropriate to the “maintenance of National Unity.”

The Burmese government banned outright the April 26 issue of Time, which
included a feature about Burma written by Andrew Marshall. The article
“Stone Age” claimed that the military strongmen who rule Burma have made
the country a global byword for backwardness and brutality.


ON THE BORDER
______________________________________

June 16, Irrawaddy
Migrants sidestep crackdown to register to work - Nandar Chann

Migrant workers from neighboring countries are sidestepping a crackdown
against illegal immigrants by Thai authorities to sneak into Thailand as
the deadline to register alien workers nears, said Burmese laborers in
Thailand today.

Burmese and other foreign migrants have been entering Thailand since the
Thai Ministry of Labor and Social Welfare recently announced that foreign
workers from Burma, Cambodia and Laos could register to work legally in
the country. The registration process is scheduled to run from July 1 to
31.

The measure was aimed at existing migrant workers only, but others are
flooding into the country in hopes of landing a job before the
registration deadline closes.

“If somebody has a registration card, they don’t need to worry about the
police arresting them,” said Moe Swe, leader of the Mae Sot-based Yaung
Chi Oo Burmese Workers’ Association. “So we believe more will come to
register.”

Unlike previous years, migrants who register during the July registration
period will not have to pay a registration fee, said Deputy Prime Minister
Wan Muhamad Noor Matha on Monday. Wan Muhamad is overseeing the
registration process which is expected to take up to four months to
complete. But migrants must pay 1,900 baht (US $46) for a medical check up
and health insurance. Those who qualify for a temporary work pass will
have their information sent to the Burmese Embassy in Bangkok for review
before receiving an official work permit.

Some migrant workers are balking at turning their information over to
Burmese authorities.

“If they [Burmese officials] get the exact names and photos [of migrant
workers], we could get arrested by the Burmese government,” said Mi Cho, a
Burmese street vendor in Chiang Mai. “So, we have to think twice.”

Meanwhile, Thai immigration officials have been ordered to closely monitor
all border checkpoints to block the influx of migrant workers and have
made several arrests of alien workers and traffickers.

Thailand expects around 800,000 migrants to register this year. If
approved for a work permit, migrant laborers can work legally in Thailand
for up to two years and are eligible to apply for a second two-year
permit.

An estimated one million migrants work in Thailand, over 80 percent of
which are from Burma. Last year, almost 400,000 alien workers registered
with the Thai Labor Ministry.

______________________________________

June 16, newindpress.com
More army troops moved close to Myanmar border

New Delhi: Alarmed by the rapidly deteriorating situation in
insurgency-hit Manipur, the Manmohan Singh government has decided to pump
in extra troops, moving an entire Army brigade from Dimapur in Nagaland to
Chandel near Manipur's borders with Myanmar.

The decision to relocate the 44 Mountain Brigade - some 3,000 troops - was
cleared at the highest level after consultations with the ministries of
Defence and Home. In what was virtually the first decision of the new
government's security establishment, the Chandel brigade headquarters was
established two weeks ago.

By moving troops close to the Myanmar border, the government may be
waiting for Myanmar to do a Bhutan: crack down on N-E insurgents operating
out of Myanmar territory.

Engaged in counter-insurgency operations - Operation Orchid at Dimapur -
the 44 Mountain Brigade is now part of Operation Hifazat in Manipur. The
57 Mountain Brigade is already stationed near Imphal for
counter-insurgency duties.

Not far from the Moreh-Tamu crossing on the Indo-Myanmar border, the
Chandel brigade will check infiltration of insurgents from across the
border and instil confidence among government employees to work in the
interior areas of Manipur. Instructions to return to work have already
gone out.

The brigade commander will be on a hotline with his Myanmar counterpart to
obtain real time information on movements of North-East insurgents and
gun-running.

Sources said that the urgency to move in more troops stemmed from the fact
that underground outfits were virtually running a parallel administration,
forming “liberated zones'' in Tamenglong, Churachandpur and Chandel.

Manipur government employees, scared by the spate of kidnapping for ransom
and rampant extortion, had fled to relatively secure Imphal. This allowed
insurgents groups like the UNLF, PLA, PREPAK, KNF, KYKL and big brother
NSCN (I-M) to rule the interiors.

Meanwhile, the UPA government has also reviewed the Centre's dialogue with
the NSCN (I-M), stuck on the issue of Greater Nagaland. Delhi's special
emissary K Padmanabhaiah and Director (Intelligence Bureau) have been
talking to NSCN (I-M) leaders Isaac Chishi Swu and Thuingaleng Muivah for
six years now. Padmanabhaiah, it's learnt, wants to continue as emissary
and even met Congress president Sonia Gandhi last month.

North Block has reports that the NSCN (I-M) has been extending its
geographical reach beyond Nagaland and this, officials say, can have
serious consequences. They have also been watching the shrinking base of
NSCN (Khaplang), once seen as a counter to the I-M group.


BUSINESS / MONEY
______________________________________

June 16, World Markets Analysis
Authorities in Myanmar Begin Nominal Free Trading with China - Elizabeth
Mills

Myanmar and China have begun nominal trading activity under the Early
Harvest Plan (EHP), which forms a part of moves towards an Association of
Southeast Asian Nations (ASEAN)-China free trade area (FTA). Under the
scheme, Myanmar will remove tariffs on almost 600 items by 2009, ranging
from meat to fruit, while China has already cut import tariffs on over 100
products that it sources from Myanmar, as well as Cambodia, Laos and
Vietnam. The FTA framework was drawn up in 2002, and is expected to be
fully in place by 2010. The potential for trade within the bloc is
large-scale; even between Myanmar and China, according to a state media
report, bilateral trade reached US$1.07bn in 2003, with China seeking to
increase this to US$1.5bn by 2005. More broadly, it is estimated that
trade between ASEAN and China would involve 1.7bn consumers, in a market
that would have a combined gross domestic product (GDP) of US$2trn,
potentially producing trade values of US$100bn by 2005.

Significance: Gradually bringing the likes of Myanmar into the economic
sphere of free trade is the only means by which to introduce such a
system, and the country's traditional relations with China will bring
confidence to the proceedings. Furthermore, Myanmar's positioning is
valued, providing a natural conduit between Thailand, Laos and China, as
well as opening up a potential market to South Asia through its border
with India. However, the FTA remains in its early stages and needs further
development; regular meetings are currently being held to address such
issues as developing the private sector within ASEAN.

______________________________________

June 16, Xinhua News Service
Japan to train Myanmar construction workers

Yangon: Japan will train Myanmar construction workers, especially welders,
as part of its program of assisting human resources development in
developing countries, the local 7Day News reported Wednesday.

Under the latest memorandum of understanding (MOU) signed between the Fund
for Construction Industry Promotion (FCIP) of Japan and the Myanmar
Engineering Society (MES), welders of corporate member companies of the
MES will be sent to Japan to undergo a three-year training course.

The five-year Japanese aid program will start from this year and trainees
will be received annually, according to the MOU.

The Myanmar side has initially arranged 67 trainees to undergo such
training this year, it said.

The FCIP is a semi-governmental organization of Japan under the Ministry
of Fund and Infrastructure Development.

Meanwhile, the International Labor Organization Association of Japan, a
non-governmental organization assisting Myanmar, has called for the
availability of a relatively skilled labor force in the country for the
development of the construction sector.

Japan and the Association of Southeast Asian Nations have also launched a
joint program, under which Japan is asked to provide financial and
technical aid for industrial development of ASEAN members especially the
newer four --Cambodia, Laos, Myanmar and Vietnam.


REGIONAL
______________________________________

June 16, Agence France Presse
US puts Thailand on human trafficking watch list

Bangkok: The United States has put Thailand on a human trafficking
watchlist for its failure to make progress in stamping out the global
scourge, the US embassy said Wednesday citing a State Department report.

Washington's Trafficking in Persons report, which analyses efforts to
combat the trade in 140 countries, downgraded Thailand to the "Tier Two
watchlist" over its poor treatment of street children trafficked from
Cambodia.

It joins other Southeast Asian nations placed on the watchlist including
Laos, the Philippines and Vietnam, while neighbouring Myanmar remains at
Tier Three, the lowest level.

The watchlist is a new category added to the system for weak Tier Two
countries in danger of slipping to Tier Three, the level which permits the
US government to impose non-trade-related economic sanctions on the
country.

"Thailand was placed on the list for one very specific reason: the
government did not make progress over the past year over extending
protection to Cambodian street children who beg or sell in urban areas," a
US embassy official told AFP.

Thailand's setbacks were of particular concern as it signed a memorandum
of understanding with Cambodia last year to help regularize the protection
and repatriation of trafficking victims, he said.

The report released Monday pointed to two instances in the past year in
which large numbers of Cambodian youths were rounded up and deported
"without proper screening for trafficking victims or referral to shelters
for those identified," he said.

The first occurred last October in the run-up to APEC, a Pacific leaders'
summit for which Thai authorities scrubbed clean Bangkok streets and
removed "eyesores" including street vendors and beggars.

Some 620 Cambodians were deported prior to the summit, while a second mass
deportation of 236 Cambodians occurred in March 2004, the report said.

Washington's trafficking downgrade of its war-on-terror ally marked "an
important wake-up call for Thailand," according to United Nations regional
human trafficking official Philip Robertson.

"I think the Thais are quite concerned about it and will take some
significant pro-active steps to address the issue of how the street
children from Cambodia are dealt with," Bangkok-based Robertson told AFP.

According to the report, other problem areas include the need to reduce
trafficking-related corruption in the police, immigration services, and
judiciary.

"Thailand is not able to adequately control its long land borders and
there appears to be an increase in trafficking along the Thai-Malaysian
border," it added.

The US government estimates up to 800,000 men, women and children are
trafficked across international borders, and the billion-dollar trade
ranks among the fastest growing transnational crimes.

Victims are forced into many forms of involuntary servitude, with more
than half of all international victims trafficked for sexual exploitation,
the report said.

Thailand's trafficking problem is particularly acute, as the kingdom is
simultaneously a country of origin, transit and destination.


ANNOUNCEMENT
______________________________________

Open Society Institute, Burma Project
Seeking Administrative Intern

Purpose: The intern would be responsible for assisting the office manager
with general administrative tasks such as filing, organizing the office
library,  accounting, research, inventory lists and data entry.

Ideal Person: This would be a good job for someone interested in working
in any kind of office or coordination position.

Location:	Burma Project Office, Chiang Mai

Job Description:
Assist with accounts
Update contact lists
Assist the office manager and Thailand Coordinator as required
Filing
Manage the small library
Conduct internet based research
Requirements:
Commit for three months
Have good written and spoken English
Have basic computer skills
Friendly, motivated, discreet and flexible
Be organized and methodical
Can work independently
Able to live alone

Benefits
On the job training
Transportation to Chiang Mai office
Food and accommodation provided
Medical expenses
Free computer and internet usage
Full use of the library

Stipend 	2,000 Baht per month

Application Deadline		June 30th 2004

Start Date			August 2nd 2004

To apply: Send your CV and a short letter explaining why you want to apply
and why you would be a good candidate to hsmaran at yahoo.com or to PO Box
223, CMU Post Office, Chiang Mai, 50202. Or Contact Htu San at 053 223 850
or 050377933