BurmaNet News, Aug 25, 2004

[Editor]

August 25 , 2004, Issue # 2546

INSIDE BURMA
Xinhua: Myanmar takes measures to cope with rising world oil prices

ON THE BORDER
Mizzima: Nagas Claim Burma’s Land for Reunion

BUSINESS / MONEY
TNS: Prime Minister defends loans for Myanmar
Bangkok Post: Exim Bank clarifies credit; Media inaccuracies could hurt
junta ties

REGIONAL
Bangkok Post: Chaisit's Burma trip; Rebel activities to be discussed

INTERNATIONAL
Nelson Mail: Refugees find work hard to get

OPINION / OTHER
Daily Telegraph: Companies 'shamed' for trade with Burma
Insurance Day: Lip service is not enough
Post Magazine: Lloyd's and brokers face human rights rap
Straits Times: Power-sharing the key to peace in Myanmar


CORRECTION

Yesterday’s Burma Net News was posted with the date August 4.  The correct
date was August 24.
______________________________________
INSIDE BURMA

August 25, Xinhua General News Service
Myanmar takes measures to cope with rising world oil prices

Myanmar is taking measures to extend use of compressed natural gas to
substitute fuel in operating automobiles in face of sustained rising world
oil prices.

With a total of about 476,000 motor vehicles moving in the country now,
Myanmar's petrol consumption has at least doubled in the past decade as
registered, consuming about 100 million gallons (420,000 tons) of petrol
and about 340 million gallons (1.4 million tons) of diesel annually in
most recent years.

Although Myanmar produced about 6 million barrels (798,000 tons) of crude
oil annually at home, yet it could not meet the demand and had to import
about 130 million US dollars' worth of the oil per year.

Seeing good conditions on extended production of compressed natural gas in
inland areas, the government has worked out specific measures to extend
use of such gas in place of petrol and diesel, having re-installed over
2,000 automobiles with gas engines as the first phase of the measures,
disclosed at Tuesday's coordination meeting involving three related
ministries which were assigned for the implementation.

Further phases will be followed to cover more automobiles.

Myanmar has been using natural gas limitedly to run cars safely after
tests on compressed natural gas were carried out in 1986. Such gas brings
benefits of saving of fuel, effective use of locally produced gas,
prevention of air pollution, speedy flow of passengers and commodities and
catching up with modern technology.

With three main large offshore and 19 onshore oil and gas fields,Myanmar
possesses a total of 87 trillion cubic-feet (TCF) or 2.46 trillion
cubic-meters (TCM) of gas reserve and 3.2 billion barrels of recoverable
crude oil reserve, official statistics show.

Myanmar produced 9.79 billion cubic-meters (BCM) of gas and 7.2 million
barrels (957,600 tons) of crude oil in 2003, exporting 6. 45 BCM of gas
and importing 27.85 million dollars' crude oil during the year.

_____________________________________
ON THE BORDER

August 25, Mizzima
Nagas Claim Burma’s Land for Reunion

Guwahati based Naga Human Rights Organization, and Naga International
Support Center (NISC) have reiterated that Naga’s inhabited hills of
Manipur, Assam, Arunachal Pradesh and Burma must be reunited to form
Naga’s Homeland.

In an e-mailed release, the NISC argued that the Nagas do not want to take
land from anyone. The Nagas want their own land, under their own
jurisdiction. “We want our homeland back to govern ourselves”, said in the
release sent on August 23rd. It also asserted, Naga homeland is what the
Nagas are striving for today.

They want the Nagaland Homeland as it was before the British started
colonizing; not just Nagaland State, but the hills of Manipur, Assam,
relatively small parts of Arunachal Pradesh and of course Burma (now
called Myanmar) to be reunited.

Recollecting the history of the Nagas, the NISC asserts that Nagas yearn
to be free of domination from everyone. They successfully resisted the
British, who couldn’t colonize the Nagas. Together, with the British in
the battle for Kohima, the Nagas defeated the Japanese, preventing those
occupying forces from sweeping through Assam to take India. Despite such
valiant efforts on the part of the Nagas, after India became independent,
it began dividing the Nagas.

In 1953 in Kohima, India’s first Prime Minister Jawaharlal Nehru and
Burma’s authority leader U Nu, agreed on a border between India and Burma
that separated the Naga people.  That border runs through villages and
even through houses, argued the Naga human rights body.

Mentioning the continuous illegal migration to Nagaland, the NISC has
claimed the Nagas want to stop the influx of other people coming to their
lands, as they have seen what India did to the people of Tripura, who
today are outnumbered in their own land.

The possible fear of ethnic cleansing only fuels a fire that has been lit
by the Government of India, again, their purpose to divide and rule.
Arguing that the Nagas do not want to hurt people who have been encouraged
to live in Nagalim, but they simply want to shape their future based on
their own culture and the realities of today.

The NISC claims that the Government of India tries to hide the reality
that the Nagas enjoy every right to self-determination and reunification.
Nagas only want what has been taken from them: the jurisdiction over their
lands and people to govern themselves, not to be government by an alien
power under a constitution they believe does not give them the right of
self determination that is theirs.

______________________________________
BUSINESS / MONEY

August 25,Thai News Service
Prime Minister defends loans for Myanmar

''The 962 million-baht-loan for Myanmar is not under our economic
cooperation. It is not the Thai government's money but the EXIM Bank's. It
must be repaid with an interest,'' he said.

Meanwhile, Mr.. Surakiart Sathirathai, the Foreign Minister, said Myanmar
has requested loans from the EXIM Bank, and it has to be conducted
according to credit rules because it is not an aid money.

''Do you know that PTT Public Company Limited (PTT) has agreed to buy more
natural gas from Myanmar. That is worth tens of thousands million baht.
Why? Because the two countries have forged a good relations ,'' he said.

He refused to answer further questions regarding the loan.

Mr.. Thaksin said the affairs related to the loan in question were not
discussed during his meeting with Myanmar officials later Tuesday.

The Thai leader has denied any knowledge in alleged negotiations his
family's company made with Myanmar government as one of its two major
suppliers.

The prime minister has come under criticism in the Thai media that his
telecommunication company is set to benefit from Myanmar's purchase of its
technology.

''It is a loan which must be repaid. It is not given for free,'' Mr..
Thaksin said.

The bank has reportedly approved a 962 million-baht- loan for this project.

In its telecommunication development plans, Myanmar says it will purchase
broad-brand technology from Thailand's telecommunication giant, owned by
Mr.. Thaksin's family.

Myanmar has reportedly requested a 4,000 million-baht-loan from the Export
and Import Bank of Thailand, or EXIM Bank, to develop its basic
infrastructure, telecommunication and postal services.
_____________________________________

August 25, The Bangkok Post
Exim Bank clarifies credit; Media inaccuracies could hurt junta ties

The Export-Import (Exim) Bank of Thailand yesterday discounted a news
report of a controversial loan to Burma, saying it contained inaccuracies
which could jeopardise bilateral ties.

In an open statement, Exim executive director Staporn Jinachitra said the
terms of loan request which Matichon newspaper published and purported to
be those submitted to the bank by Rangoon did not mirror the actual
agreement struck.

As well, the newspaper had mis-reported the cost of installing the
broadband satellite system in Burma to be financed by the loan. The price
tag was in fact US$15 million (600 million baht), not US$30.42 million
(1,217 million baht) as quoted by Matichon.

The Exim Bank signed the loan contract with Myanmar Foreign Trade Bank
(MFTB) on June 25. At the time, Rangoon had not appointed a company to be
technical consultant and equipment supplier.

The firm at the eye of the controversy was understood to be Shin
Satellite, a subsidiary of Shin Corporation whose majority shares are
owned by Prime Minister Thakin Shinawatra's family.

Matichon said the firm appointed as supplier was a giant Thai telecom
conglomerate linked to the government, raising the question of a possible
conflict of interest.

Mr. Staporn said Burma had picked the supplier only after the loan was
disbursed. Rangoon chose the firm of its own accord and all
decision-making procedures were a domestic affair.

"We [the bank] followed proper steps. We never set conditions as to which
firm the borrower must buy the products from," he said.

The loan was considered in adherence to the government's policy promoting
economic development in neghbouring countries, Mr. Staporn said.

He explained the loan in question was part of a four-billion-baht credit
line granted to Burma with a 12-year repayment period.

Pakorn Malakul na Ayudhya, the Exim Bank chairman, said the loan extension
satisfied global Exim bank standards and was tranparent.

DaMr.ong Kasemset, chairman of Shin Satellite, issued a statement
explaining that apart from Thailand, Burma also received telecom
development assistance from other countries including China, India and
Korea.

His company had to compete with other countries in vying for projects in
Burma. He said Burma selected Shin Satellite for the telecom installation
job because of its credit and achievements in the industry.

Mr. Thaksin maintained he knew nothing about the Burma loan and had no
authority over the bank's credit extension decisions.

_____________________________________
REGIONAL

August 25, The Bangkok Post
Chaisit's Burma trip; Rebel activities to be discussed

Army chief Gen Chaisit Shinawatra will leave for Burma next week to
discuss ethnic minority groups' problems with Burmese Prime Minister Khin
Nyunt.

Though he is expected to take up the post of supreme commander next month,
Gen Chaisit has not called off his planned visit to Burma. Since taking up
the post of army chief, he has not visited Burma. In the past few months,
he has had to postpone his trip.

He will visit Rangoon from Aug 31 to Sept 1 at the invitation of Gen Khin
Nyunt.

Gen Chaisit said he will raise the issue of ethnic rebel groups, including
the Shan State Army guerrillas and the Karen National Union (KNU) rebels,
with the Burmese prime minister.

During his tenure, the army has closely monitored the activities of such
rebel groups to prevent them from launching cross-border attacks on
neighbouring countries from Thai soil.

"Because of my tough stance, armed ethnic groups have not dared to take
such action. We have made a clear stand not to allow those rebels to use
our land to attack our neighbours," said Gen Chaisit.

Over the past months, Gen Chaisit has played a key role in mediating in
talks between Rangoon and the KNU.

"Thai-Burmese relations have now improved and there are no problems along
the border," said Gen Chaisit.

Meanwhile, Burma's Foreign Minister Thura Shwe Mann is in Thailand for an
official three-day visit to discuss security issues in Burma and the
region.

Gen Mann, also Armed Forces Chief-of-Staff, will meet his counterpart,
Foreign Affairs Minister Surakiart Sathirathai, and Gen Chettha Thanajaro
for informal talks on security in Burma and the region during a dinner
cruise today.

Burma's fourth most powerful man will pay a courtesy call on Prime
Minister Thaksin Shinawatra before the dinner.

The visit will also touch on defence cooperation and settlement of
maritime security problems brought about by fishing disputes. The agenda
will also include drug eradication. A source said Thailand will re-affirm
support for the "road map" initiative that aims to promote democracy and
national reconciliation in Burma.

_____________________________________
INTERNATIONAL

August 25, The Nelson Mail (New Zealand)
Refugees find work hard to get

Immigration Minister Paul Swain is looking at ways to make it easier for
refugees to get jobs after his department reported that eight out of 10
are still on a benefit after being here for five years.

But the Nelson Multi Ethnic Council and Nelson Refugee Assistance say the
figures do not accurately portray the situation in Nelson.

The report, issued on Tuesday, said only about a third of refugees had
been able to find jobs, and of those one in three worked part-time.

It identified language as the main barrier, as English was a requirement
for most jobs.

''It is very, very difficult for refugees to find jobs,'' Mr. Swain said
on Wednesday.

''A lot of that is due to language difficulties. These people aren't
coming from the south of England. Many have been in refugee camps for up
to 10 years and first they have to adjust and then get work.''

Nelson Refugee Assistance coordinator Denise Hutterd did not know how many
refugees were living in the region, although she dealt with 252 clients
last year.

Most of the refugees in Nelson came from South-East Asia, and the largest
recent group came from Myanmar, formerly Burma.

''Of my clients, a high rate of those that can work, are working,'' she
said. ''A lot of my clients seem to have gone into their own business,
some are working in the fishing industry and others are out on farms.''

There were no cases of highly-skilled refugees forced to take on menial
work, although there was one former doctor who chose to work in the
fishing industry, she said.

The English skills of refugees coming to Nelson ranged from nil to very good.

They received a lot of support from ESOL home tutors, the Nelson
Marlborough Institute of Technology and language courses at Victory
School, she said.

Immigration department policy and research manager Marilyn Little said on
Wednesday it was usually difficult for refugees to come off a benefit.

''It is difficult to get fulltime work, there's almost a benefit trap
issue where people can be better off working part-time and getting a
benefit as well,'' she said.

Mr.. Swain said the Government was putting significant funding into
language schools and other support services for refugees, but the
employment problem was difficult.

''We have to be more creative in identifying the kind of jobs that are out
there,'' he said.

''It means working with employers to break down the barriers and encourage
them to have a look at these people.

''They're dedicated and hard working. It's the first step that's the most
difficult - trying to get employers to give them a go.''

Mr. Swain said he was looking at a long-term employment plan for refugees.

One possibility was finding them jobs in the agriculture sector, where
there were plenty of opportunities because of the tight labour market.

He said the Auckland Chamber of Commerce was doing good work in fitting
immigrants and refugees into jobs, and its scheme could be extended.

Nelson Multi Ethnic Council chairman Ian Barker on Wednesday tried to put
the Nelson Mail in contact with an Iranian refugee but found he was ''too
busy working'' to be interviewed.

Although many refugees found work in Nelson, Mr. Barker said issues
occasionally arose around overseas qualifications not being accepted here.

He agreed that more English training would be helpful and suggested New
Zealand adopt a scheme similar to Australia whereby the Government
provided free lessons until refugees reached a ''functional'' level.

Mr. Barker said there was a danger refugees would be stereotyped by the
report but he welcomed its release if it worked as a catalyst for removing
employment barriers.

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OPINION / OTHER


August 25, The Daily Telegraph
Companies 'shamed' for trade with Burma

A pressure group campaigning to isolate Burma's military regime "named and
shamed" 37 companies yesterday for trading with Rangoon in defiance of a
government appeal to boycott the junta.

Those on the latest "dirty list" include Rolls Royce, which has a
maintenance contract with a Burmese airline; Lloyd's of London, the
insurance market with members doing business in Burma; and SWIFT, the
financial messaging network partly owned by British firms.

"These companies are helping to keep Burma's military dictatorship in
power," said John Jackson, the director of Burma Campaign UK.

Tony Blair has urged British companies to boycott Burma voluntarily,
pointing to the suppression of democracy, human rights abuses, the use of
forced labour and the oppression of minorities.

The pressure has persuaded at least 20 firms - most notably British
American Tobacco - to pull out of Burma in the past year.

But while America imposed financial sanctions on Burma last year, there
are no formal British trade sanctions.

Many of the companies named by the Burma Campaign said they were not
breaching international rules.

A spokesman for Rolls Royce said the company "complies fully with the
export licensing regulations".

Lloyd's said the market "does a minimal amount of business in Burma - it's
about half of one per cent of our business in Asia".

The Burma Campaign took particular aim at SWIFT for signing up four
Burmese banks recently. It claimed that the move was allowing Burma to get
around US financial sanctions by carrying out transactions in euros
through the SWIFT network.

A SWIFT spokesman said it was only a conduit for messages and was not
responsible for financial transactions between Burmese institutions and
their foreign partners.

_____________________________________

August 25, Insurance Day
Lip Service is not enough

Corporate social responsibility has become a major issue for businesses of
all types and all sizes across the globe. On Monday three of the insurance
industry's biggest names were placed on a name-and-shame list of those
doing business with the controversial regime in Burma.

The Asian state has been singled out for its human rights record by
pressure group Burma Campaign UK. It says Lloyd's, Willis and Aon have all
aided the military dictatorship with either direct or indirect financial
help.

With Burma having being condemned by the United Nations, the campaign's
name-and-shame list was designed to highlight those businesses that still
deal with the country or its government. All three insurance entities hit
back by saying their dealings in Burma are "minimal" and they adhere to
the global standards of good practice and international sanctions. But the
issue highlights how easily firms can be dragged into political rows.

The campaign admits the publicity is the key weapon in its fight to get
businesses to refuse to trade with Burma, and those companies that have
affiliations with the current government can expect to be named.

We are all aware that brand is everything in the eyes of the consumer. The
insurance industry, from personal lines to global risks and reinsurance,
is no different. There are those who take a very vocal stance on their
ethical investment strategy. There are also increasing numbers of
shareholders who are questioning who a company does business with.

More than any other, insurance is a truly global business, given the
world's needs for cover. It has a global opportunity and the rewards are
potentially huge.

But with global business comes a global brand, and these brands move on to
the radar of protesters and special-interest groups. With these groups
bringing information to the public attention, it is worth being sure
corporate social responsibility is not something to which you have only
paid lip service.

_____________________________________

August 25, Post Magazine
Lloyd's and brokers face human rights rap

Burma Campaign UK has added Lloyd's to its 'dirty list' of companies -
which already includes Aon and Willis - that it claims to be "directly or
indirectly helping to finance Burma's brutal military dictatorship".

The group added that it will be seeking support from the Association of
British Insurers and has threatened to put pressure on investors if
insurance companies refuse to pull out.

"Lloyd's, Aon and Willis have not responded to our letters," said Mark
Farmaner, spokesman for Burma Campaign UK. "We will be asking the ABI to
support our campaign and make the industry aware of the human rights abuse
in Burma. If these companies refuse to listen, we will be talking to their
investors."

A spokeswoman for Lloyd's said that the market does a minimal amount of
business in Burma. "It is about half of one percent of our business in
Asia. Lloyd's is a market made up of 66 independent companies that make
individual decisions about how and where they do business."

A spokesman for Willis said: "Willis ensures its activities comply with
the sanctions that are applicable to any of its operations that may be
imposed, from time to time, by the United Nations, the European Union or
specific countries in which its operates. Willis considers that these
organisations are well placed to judge the situation and effect of any
imposed restrictions."

Aon told Post Magazine it is not doing anything unlawful by trading in Burma.

Last year, the Prime Minister, Tony Blair, renewed a call on companies not
to invest or trade with Burma, and 20 companies have since pulled out,
including Pricewaterhouse Coopers, Ernst and Young, Carnival-P and O and
WPP.

_____________________________________

August 25, The Straits Times
Power-sharing the key to peace in Myanmar-- Robert H. Taylor

Myanmar’s resumed National Convention to draw up the principles of a new
Constitution for the state was adjourned on July 9 until the return of the
'open season'.

The ambiguity in the date for the resumption of deliberations is
symptomatic of the confusion the process has generated abroad, where the
demand for hard information and precise dates is heard. The insistence on
clarity is, of course, a political weapon used by those excluded from the
constitutional drafting process inside and outside the country. However,
this should not obscure what has been accomplished and what remains to be
done.

The 1,076 delegates who met for eight weeks at the specially prepared
convention centre outside Yangon included representatives from 28 armed
groups which have entered into ceasefire agreements with the State Peace
and Development Council (SPDC), the military government of Myanmar. Twelve
of these are factions which have split from several largely defunct
groups, although three were former members of the Kayin National Union
(KNU), the most significant of Myanmar's insurgent forces. Although the
KNU has yet to reach a ceasefire agreement with the government after more
than 50 years of armed insurgency, it sent observers to the convention and
is slated to resume talks with the government on a ceasefire. However,
informed commentators remind us that further splintering of the group is
probable, whatever the outcome.

In addition to the Kayin, there are delegates representing the Kachin,
Kayah, Shan, Rakhine, Mon, Wa, Pao and Palaung ceasefire groups. Adding to
the ethnic mosaic of the convention, there are also delegates from six
minority political parties representing the Lahu, Kokangese, Mr.o-Khami,
Pao, Kayin and Wa communities which had stood and been elected in the 1990
election held to draw up a new state Constitution. All in all, this medley
of Myanmar's ethnic minorities makes up about 40 per cent of the
participants of the convention.

Why are the leaders of the minority population so important for the future
of the country and the prospect of eventually establishing a civilian
administration following years of military rule? It's simply that if the
convention should fail and no agreement be reached, the prospect of
renewed armed conflict cannot be excluded. There is thus a lot at stake
for the majority Bamar people of the country, as well as the minorities.

In addition, Myanmar's neighbours have a stake in the outcome, as they
insist, as does the SPDC, that stability in the country's border areas is
critical for the security of the wider region. This is perhaps at the
heart of the military's primary justifications for remaining in power. As
long as the threat of the break-up of the Union of Myanmar is posed by
potential insurgency, many people inside and outside the Myanmar armed
forces will concede the need for a strong, authoritarian government.

The sooner that threat is eliminated through the Constitution-drafting
process, the quicker the armed forces will relax its insistence on having
the final say in all things in the government.

Hence, power-sharing, according to the word on the street in Yangon, is
the key to the outcome of the convention. It is known that the 28 armed
groups have put forward 18 separate papers on aspects of power-sharing
between their regions and the central government. As most of the delegates
are more experienced guerilla fighters than constitutional lawyers, some
of their expectations may be unrealistic. But all are apparently being
discussed and assessed in the convention, and also now during the period
of adjournment before the convention resumes, probably in November.

The success of the convention in finding a variety of power-sharing
formulas will be essential to convince the ceasefire groups to formally
lay down their arms and abandon once and for all the threat of renewed
insurgency. While the United States and the European Union (EU) keep
insisting that the convention must deal with the question of the future
role, if any, of the National League for Democracy and its iconic leader
Aung San Suu Kyi, the delegates of the ethnic minorities at the convention
see the crucial question as being how they will share constitutional
authority with the armed forces.

The expected decision by the EU on Sept 3 to accept Myanmar into the
Asia-Europe Meeting, with the Foreign Minister representing his
government, will be not only a victory for Asean solidarity and diplomacy,
but could also be read as the growing appreciation within Europe of the
complexity of Myanmar's constitutional issues. Power-sharing between the
country's armed forces and cooperative civilian political forces will be
the way forward if the convention succeeds.

To the minority leaders, the offer the military has placed on the table -
25 per cent of the seats in any future legislature held by the armed
forces, and other measures to protect the autonomy of the armed forces as
well as its concerns for the integrity of the state - is a deal worth
doing, at least as the next step in Myanmar's journey to constitutional
government. A lot is at stake in the National Convention and those who
denigrate its significance for their own political purposes give no credit
to the substantive struggle going on within the convention to ensure
Myanmar does not once more find itself torn apart by civil strife.

The writer is a senior research associate at the Institute of South-east
Asian Studies, Singapore. The views expressed here are his own.