BurmaNet News, September 14, 2004

[Editor]

September 14, 2004, Issue # 2558

"What is the point of these people being assisted to grow cash crops if
they do not have market access?"
- Sheila Sisulu, deputy executive director of the World Food Programme
(WFP), as quoted in Reuters following a news conference in Bangkok


INSIDE BURMA
Irrawaddy: Burmese military officers depart for Russia
Reuters: Myanmar drug war impoverishes former opium growers-WFP
AFP: UN warns of child malnutrition in Myanmar
S.H.A.N.: Lahu: Rangoon broke its word to us

DRUGS
Mizzima: Manipur police hunt for drugs near India-Burma border

BUSINESS / MONEY
Thai News Service: Myanmar plans to increase natural gas exports to Thailand

INTERNATIONAL
Agence Europe: EU formally approves Burma strategy
AFP: EU warns Burmese top leaders away from ASEM summit

PRESS RELEASE
UN-WFP: Top official calls on Myanmar to step up reforms so poor can benefit

______________________________________
INSIDE BURMA

September 14, Irrawaddy
Burmese military officers depart for Russia

About 400 young military officers from Burma left for Russia early Tuesday
morning for military and computer training, said a relative of one of the
officers who left today.

Two Russian aircraft carrying hundreds of lieutenants left the Mandalay
International Airport at about 2 a.m. and 6 a.m. today, said the relative
in Mandalay.

The officers, selected from across the country, left for the Mandalay
airport on Monday afternoon from Maymyo, 42 miles (68 km) north of
Mandalay, the relative said by telephone. Maymyo, renamed Pyin Oo Lwin by
the junta, is home to military training centers such as the Defense
Service Academy and Defense Service Technology Academy, or DSTA. It is
also reportedly the site of a new Russian-built ordnance factory, near the
DSTA, although the Russian Ambassador to Rangoon, Oleg Kabarov, flatly
denied the allegation in recent months.

Another resident in Mandalay said that on Monday airport officials told
him about the trip.

In 2002, Russia reportedly agreed to sell Burma a nuclear reactor for
medical research, providing assistance for its construction and operation.
Burma’s military government recruited hundreds of students and sent them
to study nuclear engineering and science in Russia. But the program was
reportedly abandoned because the junta could no longer afford the costs.
The junta denies it plans to develop a nuclear reactor.

The relative in Mandalay said some of the military officers would study
computer science in Russia and the others would receive military training.

The relative said that courses for computer students would take three and
half years to complete, while military courses, the details of which are
unclear, require three years. If the courses are completed successfully,
the source added, the officers would be promoted to captain.

The government provided each officer 60,000 kyat (about US $63), one
Western-style navy blue suit and a military jacket before the trip, the
source said, adding that an unnamed high-ranking military officer briefed
the Russian-bound lieutenants in Maymyo before their departure.

The source also said that before the trip, the officers received language
training from an unknown number of Russian teachers who have been sent to
Maymyo and paid a monthly salary of $1,000. More officers would be sent to
Russia in the future, the source added. Other groups of Burmese military
officers are still studying in Russia, the source said.

In late 2002, the junta purchased eight MiG-29B-12 air superiority combat
aircraft and two dual-seat MiG-29UB trainers from Russia, at a reported
cost of about $130 million.

______________________________________

September 14, Reuters
Myanmar drug war impoverishes former opium growers-WFP

Myanmar's war on drugs has impoverished thousands of former opium-growing
farmers who cannot sell their cash crops due to curbs imposed by the
military junta, a U.N. official said on Tuesday.

Myanmar, the world's number two supplier of illicit opium after
Afghanistan last year, has seen a dramatic fall in opium cultivation in
recent years as a result of an anti-drugs campaign applauded by the West.

But for farmers forced to stop growing opium, the raw material for heroin,
the switch to cash crops has slashed incomes by up to 70 percent because
restrictions on movement stop their products from getting to market.

"What is the point of these people being assisted to grow cash crops if
they do not have market access?" Sheila Sisulu, deputy executive director
of the World Food Programme (WFP), told reporters in Bangkok after a
four-day visit to the former Burma.

"Their buying power is about nil because of the lack of access. Before
they were able to use money to buy food," said Sisulu, a veteran South
African diplomat.

The UN food agency feeds about 596,000 people in Myanmar, of whom 180,000
live in the poppy-growing Northern Shan State along Myanmar's border with
China.

Myanmar, Laos and Thailand form the infamous drug-producing region known
as the "Golden Triangle", but opium output has dropped off as governments
and international agencies press farmers to switch crops.

The popularity of amphetamine-type stimulants produced in the region has
also replaced heroin as the drug of choice in Thailand, Japan and South
Korea.

CALL FOR MORE AID

When Yangon banned poppy cultivation in 2002, farming families were forced
to change a centuries-old way of life. The number of people involved in
growing opium in Northern Shan State dropped to 350,000 last year from
440,000 in 2002.

Sisulu met senior government ministers during her visit, but did not get a
commitment that restrictions on trade and the movement of crops would be
lifted.

"I told government officials the policies of government were in fact
impoverishing these people," Sisulu said.

"They cannot market their crops outside the Shan State. I heard a story
that one farmer who could not sell his crop ended up feeding it to his
pigs," she said.

The Myanmar Times newspaper said on Monday that a new survey showed opium
cultivation in Myanmar fell by 34 percent during the last growing season
to 30,888 hectares.

It quoted Police Colonel Hkam Aung as saying the international community
should do more to help former opium farmers who have lost incomes.

The WFP has been operating in Myanmar since 1994 when it began feeding
some 230,000 refugees in North Rakhine State who returned from
neighbouring Bangladesh.

It began providing food relief in Northern Shan State in October 2003, and
also assists some 400 families stricken by HIV/AIDS in central Myanmar.

____________________________________

September14, UN warns of child malnutrition in Myanmar
Agence France Presse

A third of children aged under five in Myanmar are suffering from
malnutrition because of the failure of the military regime to reform the
country, the World Food Program (WFP) said on Tuesday.

In a gloomy assessment of agriculture under the junta, the WFP also warned
that frustrated farmers could increase opium production because they were
stopped from going to market to sell legal crops.

The WFP said the UN currently fed about 596,000 people in Myanmar but was
being prevented by the junta from assessing a true national figure of
those in need, which was likely to be much higher.

"At the moment we cannot move beyond our current assistance which is
relief because of the policies of the government," WFP deputy executive
director Sheila Sisulu told reporters in Bangkok after visiting Myanmar.

"A third of children (under five) nationwide are suffering from malnutrition.

"The policies of government are in fact impoverishing these people."

Sisulu said tough restrictions on farmers' movements in northern Myanmar
meant they could not get to market with crops which are grown to replace
opium. This raises fears that part of the government's policy to cut drug
production could fail.

Farmers have been offered incentives to grow crops instead of opium as
part of a pledge by Myanmar, the world's second largest opium producer
after Afghanistan, to cut back on the illegal harvests.

"It should be a concern and this is also why we felt the government needs
to be aware that their polices may be counterproductive to the very thing
they are trying to get rid of," she said.

"Their (opium growers') income has been slashed by close to 70 percent and
they use most of the remainder on food," she said, adding the program was
currently providing aid to 180,000 former opium farmers.

The junta has ruled Myanmar since a 1962 coup. But the international
community led by the US has imposed sanctions because of the lack of
democratic reforms and the continued detention of opposition leader Aung
San Suu Kyi.

_____________________________________

September 9, Shan Herald Agency for News
Lahu: Rangoon broke its word to us

Two Lahu "spokespersons" who recently crossed the border into Thailand
told S.H.A.N. the majority of their people who had been resettled in
southern Shan State 5 years earlier "have had enough of" the Burmese
military authorities' broken promises, reports Hawkeye from Chiangrai:

"Before we moved down from the north," said Joseph (not his real name),
25, a high school graduate from Lashio, "we were given three promises by
the colonel from Kunhing, who said he represented Maj-Gen Maung Bo,
Commander of the (Taunggyi-based) Eastern Region Command."

They were the right to establish their own local government, freedom from
forced labor and exemption from the draft. "These were given to us at the
meeting in October 1999 in Tangyan," said Joseph.

Altogether, 700 families with a total population of 4,000 people from
Tangyan, Mawfah (across the Salween), Monghsu, Lashio, Mongyai and Hsenwi
had agreed to resettle in the Wanzing area in Kehsi township, Loilem
district. Since then, the population in the area (now designated as
Wanzing sub-township) has more than doubled, 90% of them Lahu and the
remainder comprising Shan and Palaung respectively.

It is still less than half of the original population, according to Shan
Human Rights Foundation that had produced the off-quoted to report on the
forced relocations (300,000 people) and extra judicial killings (664
documented total) during the Burmese Army's three year campaign against
the Shan State Army 1996-99. Before the campaign, the area had more than
18,000 people.

"Now they have broken every promise they had given to us five years ago,"
lamented Joseph. "Our leaders cannot do anything without authorization
from Infantry Battalion 287, a unit that was created on our arrival. We
have to take turns and work in their paddy fields confiscated from the
locals. And now they are forcibly recruiting us to serve in their army
units."

In 2002, a month-long battle broke out between the Burma Army and the Shan
State Army, and all Lahus who had received a 6-month training in
Panglawng, 80-miles southwest of Taunggyi, were required to participate in
the fight. "Most of us fled on the first night on our way to the border,"
he said, "because we knew they wanted us to be in the vanguard."

The Lahu, of Tibeto-Burman stock, are distributed widely in northern and
eastern Shan State, with a total population of 360,000, according to some
Lahu sources. During the 1990 elections, one Lahu, Daniel Aung, was
elected as Member of Parliament for Mongpiang township.
Related report: Lahu relocations escape rights advocates' notice,
S.H.A.N., 14 April 2004

_____________________________________
DRUGS

September 14, Mizzima
Manipur police hunt for drugs near India-Burma border

Manipur Police on the border with Burma have heightened up their vigilance
in the Thribal district following the seizure of a huge consignment of
psychotropic drugs on first week of September.
State government sources told this correspondent that the Burmese
manufactured drugs, amphetamine hydrochloride drugs are widely used in
Manipur and its neighboring states in north east India.

The new drugs in tablets form and locally known as Lakuma are cheaper than
other psychotropic substances. They have become popular among youth.

We have discovered this drugs very recently following arrest of three
youths in Moreh, the source said adding that a couple arrested had brought
the consignment from Tamu with the help of Burmese people during the
previous month.

The Manipuri couple confessed during interrogation that they were involved
in this business to earn more money, the source continued.

The couple told the police that due to high demand they had bought their
drug supply for Rs 3000 from a source in Tamu. The street price of tablets
is 30 rupees.

With the seizure of new drugs, Manipur police have stepped up vigilance
along the border areas of Manipur . According to statistics brought out by
the Mizoram Excise department, altogether 84 persons including 12 girls
have lost their lives due to prolong use of drugs.

“ The deaths occurred due to consumption of heroin and other pain killers,
the department stated in its report published in early September.

The report also said that since 1981, drug related deaths in Mizoram have
been recorded at 977 of which 92 are women . The drug problems in the
state started during 80s following the free movement of people across the
border. Most of the deaths are reportedly from Champhai and Zokhawthar
areas, close to the Burma border.

Mizoram shares over 100 km of border with Burma and heroin and other
psychotropic substances continue to flow various parts of the state. 
Though several social organisations have been raising their voice against
the menace, the problem continues .

“Drugs are available in these areas and hence youths have started taking
various psychotropic substances, L Thanwa from an NGO said . He said that
the government should step up vigilance along the Mizoram -Burma border .

Dr C P Kamle who has associations with several international associations
working in the areas of drugs and environment Drugs and environment
suggested setting up a drug testing laboratory equipped with modern
technology to contain the menace.

“The major problem in the region is there is no proper mechanism to
counter the situation and the Indian Government seems not so active in
this regard”, Dr Kamle said in an exclusive interview with Mizzima. He
believes that the concerned state governments should take stringent action
against the drug traffickers. “There is no proper legislation to contain
the menace, he said.

_____________________________________
BUSINESS / MONEY

September 13, Kyodo News
Myanmar's CPI rises 25% in FY 2003-2004

Myanmar's consumer price index, a closely watched inflation barometer,
rose nearly 25 percent in fiscal 2003-2004, which ended in March, recently
released figures from the National Planning and Economic Development
Ministry show.
Still, the 24.93 percent CPI rise, lifted mostly by non-food indexes, is
well down from the 58.11 percent increase recorded in fiscal 2002-2003.

The fiscal 2002-2003 figure was the biggest rise in the index since
1997-1998 when the CPI began being calculated using 1997 as the base year.

The non-food indexes, which measure fuel, clothing, medical and education
costs, went up 29.95 percent, while the food index, which gauges the price
of rice, cooking oil, fish and meat, rose 22.02 percent in FY 2003-2004,
the report said.

No further details on the inflation figures were given.

_____________________________________

September 14, Thai News Service
Myanmar plans to increase natural gas exports to Thailand

Since April of 2000, Myanmar has sold natural gas to Thailand from the 12
wells of the Yetagun field through a pipeline, which runs nearly 100
kilometers under the sea and 70 kilometers over land.

Currently, the field exports nearly 8.5 million cubic meters per day to
Thailand.

The Energy Ministry will increase the exports after finding extra
reserves, which produce four million cubic meters daily, raising total
production of the Yetagun field in the Gulf of Martaban to 14 million
cubic meters per day.

_____________________________________
INTERNATIONAL

September 14, Agence Europe
EU formally approves Burma strategy - Possibility that sanctions will be
tightened on 11 October

Monday's "External Relations" Council formally approved its position (the
broad lines of which were already agreed at the informal Gymnich-style
meeting in Valkenburg on 3 and 4 September) on Burma's accession to the
ASEM process and the forthcoming ASEM summit.

Under the text supported by all the delegations on Monday (including
France which, following the Valkenburg meeting, where it was not
represented by its Foreign Minister, had called for certain
"clarifications" on a possible reform of sanctions), the Summit will
indeed take place on 8 October in Hanoï, but the representation of Burma
in this meeting will be less than that of a Head of State or Government.

The democracy and rule of law situation in Burma "has not improved
significantly", and continues to raise "grave concerns", according to the
conclusions adopted by the Council. The EU notably regrets the fact that
the requests it formulated last April have not materialised: Daw Aung San
Suu Kyi remains under house arrest, the National League for Democracy is
constantly harried, and the National Convention has not resulted in a
genuinely open debate.

As a result, the Council has decided that if the Burmese government had
not complied with these three requests by the time the ASEM summit opens,
the EU would take the following measures on 11 October (next meeting of
the "Foreign Affairs" Council: Ed): existing sanctions against Burma will
be toughened and, at the same time support for the Burmese people will be
stepped up; -as for the possible tightening up of sanctions, the Council
Secretariat has been mandated to prepare the following measures:

1)	extension of the list of people banned from visas to a range of members
of the army (and their families);

2)	ban on companies or organisations based in the EU funding (via loans or
capital investments) in public companies in Burma;

3)	systematic EU vote against the granting of loans to Burma by
international institutions.

The European Commission was also invited to present proposals based
specifically around the issue of illegal logging in Burma, notably the
possibility to reduce deforestation in Burma and to reduce exports of
exotic woods (teak) from the country. The ministers also reiterated the
need to increase assistance to the Burmese people in the fields of
healthcare and education.

_____________________________________

September 14, Agence France Presse
EU warns Burmese top leaders away from ASEM summit

The European Union warned Myanmar's top leaders not to try to attend a key
Asia-Europe summit next month, saying it could make the meeting
"difficult" for all sides.

Dutch Foreign Minister Bernard Bot, whose country currently holds the EU's
presidency, reiterated that the EU "expects" that the military-ruled
regime will be represented at lower than the level of head of state and
government.

"We hope that the message has been well received by our Asian partners
because of course if that is not the case it will be a difficult situation
for the EU and it will be a difficult situation also for the ASEM summit,"
he said.

"I trust the way in which we have phrased out expectation is clear. I
haven't heard anything from our Asian partners so I take it that this will
be the fact, and that Burma ... will be represented at a lower level," he
said.

_____________________________________
PRESS RELEASE

September 14, UN – World Food Program
Top official calls on Myanmar to step up reforms so poor can benefit

Bangkok: A top official of the United Nations World Food Programme today
called on the government of Myanmar to step up its efforts toward social
and economic reforms for the benefit of the country's desperately poor and
needy people.

"Myanmar and its people have so much potential to achieve the solid
economic growth that could lift millions out of poverty," said Sheila
Sisulu, WFP Deputy Executive Director, who just completed a four-day visit
to WFP operations in Myanmar.

"WFP is concerned that the country is not achieving the type of growth
needed to improve the lives of all its citizens. We are trying to help
some of the neediest, but the real underlying fact remains that the
government has to pursue the reforms that are obvious and necessary."

Sisulu said that in her talks with government officials, she emphasized
that a much stronger shift toward good governance in Myanmar is essential
for the country's successful development.

On her first visit to Myanmar, Sisulu also spoke with officials from other
UN agencies, non-governmental organizations, the opposition National
League for Democracy, and leaders of ethnic groups about the needs of the
people and the extent to which they are being met.

Her mission took her to the Northern Shan State, where she met the
children and teachers in a WFP school feeding in Pan Phate village and
talked with farmers participating in a programme to help them grow crops
other than poppy, which was banned two years ago.

"I saw deprivation, genuine want among the Myanmarese when I went to the
Northern Shan State," said Sisulu. "Not enough priority is being placed on
the real needs of the citizens.  I urge all those involved in the welfare
of the hungry poor people to put their needs ahead of all other
considerations or interests."

Sisulu, who is on a tour of four Asian countries - Nepal, Myanmar, India
and Bangladesh - stressed that Myanmar is one of Asia's poorest countries,
but has tremendous human and natural resources.

WFP has been assisting poor and marginalized people, some of them returned
refugees from Bangladesh, in North Rakhine State for the past 10 years.
Last November, the agency began providing the food component of home-based
care packages to families with HIV/AIDS as well as emergency food rations
to farmers switching from poppies to alternative crops.

Sisulu is scheduled to travel today to India, where she will play a
leading role in the Asian Ministerial Consultation on Maternal and Child
Nutrition, co-sponsored by WFP and the Government of India, to be held in
New Delhi 15-17 September.