BurmaNet News, November 10, 2004

[Editor]

November 10, 2004, Issue # 2598


INSIDE BURMA
AFP: Myanmar government seeks to quell currency fears
Australian: Dreams of a daily rest with generals
AP: Myanmar independence hero dies at 95
AP: Myanmar orders car owners to surrender illegal vehicles
Independent Mon News Agency: Fire Bombs exploded in crowd, wounding more
than 20 people

ON THE BORDER
Irrawaddy: The price of exploitation

REGIONAL
Nation: Govt urged to disclose details of Burma deal
Voice of America: Aid agencies pessimistic on outlook for Burmese refugees
S.H.A.N.: Damning report on damming of Salween out

INTERNATIONAL
Rolling Stone: Rockers for Burma, Freedom Songs

OPINION / OTHER
Hindustan Times: Junta or not

______________________________________
INSIDE BURMA

November 10, Agence France Presse
Myanmar government seeks to quell currency fears

Yangon: Myanmar's military regime on Wednesday tried to quell fears over
the state of its currency amid a surge in gold buying and rumours of
widespread counterfeiting.

The military's finance minister said rumours that it was considering
declaring the legal tender useless were "totally baseless" just six weeks
after issuing new and smaller notes, according to state media.

Fury surrounding a demonetization programme, to try to rid the Myanmar
economy of black market cash, was a major factor that led to mass protests
in 1988 demanding an end to the military dictatorship in place for 26
years. It was brutally suppressed.

The military authorities on September 30 introduced new currency notes of
1,000 (167 US dollars, according to official rates but with a street value
nearer one dollar) 500 and 200 kyat denominations. There were rumours the
circulation had been limited owing to printing defects.

In response to fears and reports of panic buying, finance minister Major
General Hla Tun was quoted by state media Wednesday as telling a group of
bankers and businessmen that the public "can use any of the old notes or
the new with full confidence and with peace of mind".

He dismissed rumours of widespread seizures of counterfeit 1,000 kyat
notes in some border areas and denied there had been printing problems.

"The military which places public interest above all else had pledged
since taking over state responsibilities (in 1988) that there would be no
demonetization of the existing legal tender during their tenure," he said.

"Unscrupulous persons taking advantage of the latest developments in the
nation are launching a gossip campaign and spreading rumours."

The price of gold has increased by 25 percent since the sacking of former
premier Khin Nyunt on October 19, a pragmatist who favoured talks with
detained opposition leader Aung San Suu Kyi, to be replaced by a military
hardliner.

After an initial rise in gold prices with his sacking, the price went up
again earlier this week, as people sought to dump currency and buy up
other assets.

______________________________________

November 11, The Australian
Dreams of a daily rest with generals - Kimina Lyall

When Ross Dunkley prepared a dummy run of a possible daily
Burmese-language version of his Myanmar Times weekly -- the only
non-government-owned newspaper in Burma -- he saw his chance to get the
go-ahead from the country's then new prime minister, General Khin Nyunt.

As Khin Nyunt flew home to Rangoon after the ASEAN leaders' summit in Bali
last October, Dunkley organised for a full printed copy of a new-look
international daily to be delivered to his aeroplane seat.

But the feedback was unexpected: "You haven't got enough local content in
it!" said Khin Nyunt, part of a military junta that has ruled Burma in
various guises for more than 40 years. A few weeks later Dunkley won
approval for a biweekly version, but still harbours his daily ambition.

But reporting on domestic news inside military-ruled Burma is Dunkley's
biggest challenge. Last month, when Khin Nyunt was stripped of his post
and arrested by the hardliners in the oppressive regime, Burma watchers
the world over devoted columns of print pondering the apparent sacking and
its effect on the future of National League for Democracy leader Aung San
Suu Kyi, who has been under house arrest for 17 months.

The Myanmar Times (the paper uses the military regime's name for the
country) allocated 102 words to the story, reporting that the State Peace
and Development Council, which is led by Senior General Than Shwe, had
appointed a new Prime Minister, Lieutenant-General Soe Win and allowed
Khin Nyunt to retire on "health grounds".

"We are censored," shrugs Dunkley, who serves as editor-in-chief and chief
executive, as explanation. But he says the small story was partly an
editorial decision -- by the time the English-language edition hit the
streets, the events were a week old.

But The Myanmar Times hasn't been immune from the uncertainty that has
followed the adjustments in the top order of the regime. For starters, the
four-year old tabloid's censors were from Military Intelligence -- the
section of the army controlled by Khin Nyunt that has been effectively
abolished in the wake of last month's events.

The changes came close to home. The father of Dunkley's local business
partner, Sonny Swe, is one of the MI generals who has been detained as
part of the sweeping changes that were ostensibly prompted by allegations
of widespread corruption involving many MI members.

The Myanmar Times had other problems. The first Burmese-language edition
of the paper due for publication three days after the leadership change
failed to appear simply because no one had censored it. This helped swirl
rumours that the paper had been shut down, but Dunkley says he has no
plans to leave town yet. By coincidence, he was moving the office into a
three-storey colonial building on the day of the political upheaval,
leading some to misinterpret the removal trucks.

Dunkley, 46, a former Walkley award-winning journalist from Perth, has
been riled by Burmese activists and other journalists for his decision to
set up the paper in a country ruled by an oppressive regime and wrecked by
widespread sanctions. But he defends his actions on business and moral
grounds.

"If the government says we have to censor the paper, that's fine," he
says. "I think what's important is keep getting the paper out, keep
publishing, keep providing a superior product. We're not against the
government, we're publishers. We're in this to make a profit. We are not a
charity.

"What I'm doing is training journalists, developing the editors of
tomorrow, establishing systems where ethics count, introducing people to
the school of journalism thought." He says he has trained 39 young
reporters, with the help of Japan's Sasakawa Peace Foundation, and 25 now
work at the paper. "That's not happening anywhere else in the country.
Purely that alone says it's worth having The Myanmar Times."

Along with Burmese and Australian partners, Dunkley says he has invested
almost $US1.5 million ($1.9million) in the business and is just beginning
to show a small profit. He has a print run of 50,000 and a readership of
more than 250,000 for the Burmese-language version, a 32 to 64-page
tabloid that publishes local and international news, sport, business and
lifestyle. When he published an 80-question readership survey, he received
15,000 replies, and even the small circulation English language version
carries advertisements on every page.

"Our demographics are people who have university education, they own a
business, they are earning $US100 to $US400 a month, they are the emerging
middle class," he says. "I have 350 staff. I don't need 350 staff for two
weekly papers. But what I'm trying to do is build critical mass so that
you can say, OK, can I now ask the Government to do a daily?"

He believes one day his argument will succeed. "The challenge is to engage
the Government to convince them this will be good for them. If their
intention is to move toward democracy, if their intention is to move
towards a modern, well-developed nation, it has to start with the media."

Of course, many analysts believe that the generals have no such
intentions, but Dunkley is still hopeful his army of journalists will one
day be able to report the big local news stories.

"That's what they keep saying," he says. "Senior General Than Shwe said it
again last week; he said that's what he believes in, so you can believe it
or not, but that's what they're saying."

______________________________________

November 10, Associated Press
Myanmar independence hero dies at 95

Yangon: One of the last surviving members of Myanmar's "Thirty Comrades"
independence heroes has died. Bohmu Aung was 95.

He died of natural causes at his residence in the capital Yangon on
Tuesday, said family members, who asked not to be named.

Bohmu Aung and the other Thirty Comrades -- many of whom had been student
anti-colonial activists -- secretly went to Japan in 1940 for military
training to fight their British rulers.

They returned to form the Burma Independence Army, which operated
alongside the Japanese but turned against them toward the end of World War
II.

The group was led by the young and charismatic Gen. Aung San, who was
assassinated by political foes in 1947, shortly before Myanmar -- then
called Burma -- obtained formal independence from Britain. His daughter,
Aung San Suu Kyi, today heads the opposition to the ruling military
regime.

After independence, Bohmu Aung served in various capacities under the
democratic government of U Nu, but was jailed after Gen. Ne Win -- another
of the Thirty Comrades -- took power in a 1962 coup d'etat.

When Ne Win was forced from power in 1988, Bohmu Aung became actively
involved in the pro-democracy movement, which briefly flourished until it
was crushed by the military. In 1989, he was placed under house arrest for
nearly two years.

His sympathies, however, remained with Aung San Suu Kyi's pro-democracy
movement. He signed several public appeals urging the ruling junta to
negotiate with her National League for Democracy party, which won a 1990
general election but was not allowed to take power.

Only two of the Thirty Comrades now survive: Bo Kyaw Zaw, who is believed
living in Beijing, and Bo Ye Htut, who lives in Yangon. Bohmu Aung's
family said the latter offered his condolences on Wednesday.

Bohmu Aung is survived by four grown children.

______________________________________

November 10, Associated Press
Myanmar orders car owners to surrender illegal vehicles

Yangon: Myanmar's military government has ordered owners of unregistered
automobiles to surrender their vehicles or face possible legal action,
state radio and television reported.

Police Director General Maj. Gen. Khin Yee said unregistered vehicles
should be brought to the nearest police station as soon as possible, and
no questions would be asked about how they were acquired, the reports said
late Tuesday.

Thousands of cars have been smuggled into Myanmar in recent years, mostly
from Thailand and China. They are operated illegally, some with false
registration numbers.

The automobiles can be acquired for a fraction of the price of legally
imported and registered ones.

In Myanmar, an unregistered 1992 Toyota Corolla van costs about 6 million
kyats (US$6,000), while a registered one would cost 38 million kyats
(US$38,000).

_____________________________________

November 6, Independent Mon News Agency
Fire Bombs exploded in crowd, wounding more than 20 people

Three hidden fire bombs exploded in a crowd of people Nov. 3 at the
Kyaikkamort pagoda festival in Kamawet village, Mudon township, wounding
more than 20 people including an actress from the Mon Oung Sorn Drama
Performance group.

 Because one fire bomb exploded during the stage show, some curtains were
burned and the stage show was stopped until last night.

The first Bomb exploded on the drama stage while actress Mi Jom Hpar Sorn
of the Mon Oung Sorn group was singing about 10 p.m., according to eye
witnesses. “Another two bombs exploded later on the crowded road, wounding
about 20 people. But no one was seriously wounded,” Nai Jorn reported.

“At the moment, military authorities from Battalion No.209 have been
investigating the explosion,” he added. “Until now, military authorities
have not found the bomber, but they believe the bombs were homemade,” he
explained.

But military authorities took action against the leaders of the Mon Oung
Sorn group for disobeying their order, because the drama leaders didn’t
want to stop their show after the bombs exploded, according to a
performance leader.

The annual festival ended last night due to fear of fire bomb explosions.
There has never been a bomb exploded at the crowded pagoda festival
before. “It is the first time a bomb exploded at the festival,” added Nai
Pu, a Kamawet villager.

The Kyaikkamort pagoda festival, a famous winter festival in southern
Burma, was started more than 100 ago.

_____________________________________
ON THE BORDER

November 10, Irrawaddy
The price of exploitation - Colin Baynes

Mae Sot: Thai factory owners face huge claims after judge rules for
Burmese migrants.

About 200 Thai factories employing migrant Burmese workers are braced to
meet compensation claims amounting to many millions of dollars following
the success of a legal action brought by 18 employees in Thailand’s Tak
Province.

The Burmese migrants were awarded a total of 1,170,000 baht (US $29,250)
in compensation for unpaid back wages owed by their employer, the Nut
Knitting Ltd Partnership in Mae Sot, on the Thai-Burmese border.

The Tak Labor Court decision was hailed as a “landmark” by Moe Swe,
director of the Mae Sot-based Yaung Chi Oo Workers Association, which
backs Burmese migrant workers in their fight with Thai employers for
proper wages and working conditions.

Jackie Pollock of the Migrant Assistance Program, or MAP, Foundation
hailed the workers’ victory “very inspirational.”

She told Irrawaddy in an interview that the outcome of the legal action
was “actually huge because migrant workers were able to push this case as
far as they could and be acknowledged and eventually get justice.

“More migrants now are aware of their rights because of this example.
Employers may hesitate before they exploit their workers so blatantly.”

Moe Swe agrees that the decision will “encourage other migrant workers and
show them how to fight for their rights.”

Already, 257 migrant workers are locked in a legal battle with the Nasawat
Apparel Co Ltd, and 50 have begun proceedings against Mae Sot’s GS Art Co
Ltd. Many more legal actions are expected.

Although the judgment against the Nut knitting factory is a
ground-breaking precedent, it came only after a protracted legal battle,
and at the start of October—nearly two months after judgment was given—the
jubilant workers finally got their money.

But it didn’t come easily. Although Nut Knitting deposited the 1,170,000
baht with the Tak Labor Court, Yaung Chi Oo sources say the Thai officials
appeared to be obstructing attempts by the workers to get their money.

The MAP, which represents the 18 former Nut Knitting workers, said at the
beginning of October that it had made three attempts to secure the money.
Every attempt had been blocked on the grounds that MAP had presented
faulty documentation or that the beneficiaries had given false signatures.
Only on October 8 did the workers finally get paid.

The 1,170,000 baht awarded by the labor court is still only a fraction of
the 4.6 million baht originally set by the Labor Protection Office. When
the plaintiffs’ lawyers pointed out the disparity, the presiding judge
told them sacked Thai employees often settled for as little as 20 percent
of the contested sum.

The 257 sacked employees of the Nasawat Apparel Company have been awarded
16 million baht by the Labor Protection Office, but they face a long
battle now to win a settlement before the provincial labor court. Until
then, the company refuses to pay anything.

Despite the holdups and the intransigence of the employers, activists
remained optimistic that all 18 workers sacked by Nut Knitting would
eventually get their money. “The court [was] trying to teach the migrants
a lesson: that you can’t get the money easily,” charges Moe Swe. It was a
long wait. First, two years of exploitation and abuse, then 18 months of
legal wrangling involving three judges and 10 court hearings.

The Nut Knitting workers slaved for more than the regulation eight-hour
day for as little as 50 baht ($1.25), less than half the legal minimum
wage of 133 baht. Many worked up to 18 hours a day, collecting 6 baht an
hour for overtime. They could not refuse overtime, and sick leave was not
on offer.

When they organized protests against the low pay and appalling work
conditions Nut Knitting workers were threatened and sometimes physically
attacked. Then they were summarily sacked.

It took some time before Mae Sot workers stood up for their rights. “Most
migrants workers in Thailand were illegal.... They never dared to
complain,” says Moe Swe.

“I did it because of my family,” says A Nge Lay, one of the 18 migrant
workers now awaiting compensation. “I was the only one that supported my
family [in Burma].  I needed to work to send money back.”

But by October 2002 the laborers could not bear it any longer. The
disgruntled workers protested publicly against their working conditions
and miserable pay rates. Scuffles broke out with factory officials, and
Nut Knitting then summarily dismissed the protesting workers.

Thugs apparently hired by the company assaulted the sacked workers as they
left the factory.

A marathon struggle then followed—almost two years of fear and hardship,
relieved only by the solidarity and support of workers’ rights
associations such as Yaung Chi Oo and the MAP Foundation and their
guidance through the legal maze towards justice.

The group of sacked Nut workers that turned to Yaung Chi Oo at first
numbered 40, but several returned to Burma “not believing that they could
get compensation,” says Moe Swe.

The remaining 34 learned from the Labor Protection Office in Mae Sot that
they were entitled to 4.6 million baht from their former employer. Labor
Protection Office rulings, however, have to be confirmed by the provincial
labor court —leading in the Mae Sot case to a hiatus exploited by Nut
Knitting.

Nut refused to comply with the Labor Protection Office ruling, provoking a
long legal tussle that only ended with August’s labor court judgment. The
18 former Nut workers have not only the MAP Foundation and Yaung Chi Oo to
thank for championing their fight, but also the human rights division of
the Lawyers Society of Thailand, which agreed to take the case on.

“For two years the workers could not get jobs and they suffered from
harassment and threats from employers and police,” says Moe Swe.

Some were deported and only allowed back into Thailand to attend court
hearings.

Many of the original 40 gave up the struggle and returned to Burma.
Sixteen settled with Nut out of court for a total of 400,000 baht.

Moe Swe became the focus of employers’ anger and he claims a price was put
on his head. For two months during the hearings he hid out in Chiang Mai.

He and other activists had to contend not only with threats and
intimidation, but also with the weight of the Tak Employers’ Association
against them.

The Association successfully petitioned the Tak provincial administration
to launch an investigation into Moe Swe and other Yaung Chi Oo officials.
“The police would look for us,” says Moe Swe, claiming thugs were hired to
assault him and other activists. Two members of Yaung Chi Oo were
assaulted in Mae Sot in May last year.

Hundreds of migrant workers emboldened by the labor court ruling now face
similar harassment. There are nearly 100,000 Burmese migrants in Mae Sot,
most of them employed in the town’s 200 textile factories—whose owners are
now steeling themselves for a flood of legal actions.

There’s no guarantee that contestants will have it any easier than the 18
migrants in the precedent-setting case. In fact, they could have a tougher
time securing justice, according to Jackie Pollock.

Employers, she says, “will be more prepared now to deal with challenges
their workers may give them.”

Nevertheless, workers like A Nge Lay feel the struggle is worth it. “When
I was working in the factory I didn’t know about the labor law,” she says.
“Now I know about my rights and how to fight the legal system.”

“I want to tell other workers, if you unite, you can win together. You can
effectively fight for your rights.”

Now that she has her money, she hopes to make her next dream come true—her
own shop in her hometown in Burma, financed with the money she worked so
hard to earn.

_____________________________________
REGIONAL

November 9, The Nation
Govt urged to disclose details of Burma deal

Details of the Thai-Burma memorandum of understanding on water management
signed by the Natural Resources and Environment minister last week should
be revealed to the public, an activist said yesterday.

Hannarong Yaowalert, of the Wildlife Fund of Thailand, urged the ministry
to let the public know the details of the MOU to ensure that there would
be no loss for the Thai side.

He said that in the past the government had signed MOUs for many projects
that ended up costing the country financially and gave no worthwhile
results.

"This matter should be brought to the Parliament for consideration, not
sneakily signed like this," he said.

Hannarong said the government should ensure the money was being spent
prudently as well as explain how it planned to buy water from Burma and
how badly farmers in the Kok River Basin needed it.

Natural Resources and Environment Minister Suwit Khunkitti said that under
the MOU, a joint committee comprising representatives from both countries
would be set up to study sustainable water-management measures.

Those measures include easing the drought, building a hydropower dam and
redirecting water from the Salween River to Bhumibol Dam in Tak.

But Hannarong said redirecting water from the Salween River was not needed
because the Salween and Ping River rose and fell at the same time of the
year.

He urged the government to focus on water management within the country.

_____________________________________

November 9, Voice of America
Aid agencies pessimistic on outlook for Burmese refugees

Bangkok: Aid workers in Thailand say a change of leadership in Burma has
dashed hopes that Burmese refugees would soon be able to go home.There are
fears the new government will take a more hard-line approach toward rebel
groups and refugees.

The ouster of Burmese Prime Minister Khin Nyunt last month has stalled
progress on reconciliation talks with several of the country's ethnic
minority groups.

Refugee experts say that means more than 150,000 thousand Burmese refugees
now in Thailand have little chance of going home in the coming months.

General Khin Nyunt is under house arrest and has been accused of
corruption. He played a key role in arranging cease-fires with rebellious
ethnic minority groups, including a partial deal with the Karen National
Union (KNU). His successor, General Soe Win, is considered to be
hard-liner wary of the cease-fire talks.

Jean Rigal heads the Thailand office of the aid group Doctors Without
Borders. He says the talks had raised the refugees' hopes of going home.

"I did participate in a huge number of seminars, conference, meetings
about repatriation. We really believe that it should be in the next months
and it made a lot of hope within the camps," he noted.

The Thai government has supported Burma's steps to reconcile with its
ethnic minority groups. Thailand has provided millions of dollars in aid
to Burma, and has called on the Rangoon government to open areas to enable
refugees to return.

But United Nations High Commission for Refugees (UNHCR) officials say
there now appears little chance of that happening anytime soon.

The UNHCR representative in Rangoon, Rajiv Kapur, says solid repatriation
agreements are necessary before the agency can help the refugees return.

"There has to be agreement between the parties to the conflict, which
would then have to be followed by an agreement on the various modalities
of repatriation," he said."So until we fulfill the first one we don't see
the situation being conducive to return."

Many Burmese exiles and political observers say there are fears that the
Rangoon government may not want to pursue cease-fires and that it might
seek to quash minority groups with force.

Aung Zaw is the editor of the independent Burmese-community newspaper, The
Irrawaddy, based in Thailand. He says it is not clear if the talks with
the Karen National Union will continue.

"The KNU wants to continue the talks, but at the same time there's a lot
of confusion on the Burmese side because after the removal of Khin
Nyunt.," he said."I think the KNU is not clear who they are going to deal
with."

Echoing comments by security analysts in Bangkok and diplomats in Rangoon,
Aung Zaw says troop movements near the Thai border indicate Burma is
preparing an offensive against the Shan or Wa people in northeastern
Burma.

"In the Wa region, the troops have been alert and some Wa leaders are
worried the Burmese might attack," he added.

Doctor Rigal with Doctors Without Borders says much must be done to
prepare for repatriation, even if cease-fire agreements are signed.

"It will not be this year. Maybe not even next year, even though there is
a cease-fire agreement," he explained."There is still a huge landmines
problem and there's also a lack of means on the other side. Nothing is
ready."

Aid workers say the military government's internal power struggles have
left Burma's refugees trapped, with nowhere to go, and little hope.

_____________________________________

November 10, Shan Herald Agency for News
Damning report on damming of Salween out

With 12 sites under feasibility studies downstream and a cascade of 13
dams under construction plans announced upstream, the river Salween that
originates in China and flows through Burma and Thailand is facing
potential tragic consequences, says a report that is being launched today,
as Thailand gears up for a nine-day congress of World Conservation Union
to begin on 19 November.

The inauguration of The Salween Under Threat: Damming the longest free
river in Southeast Asia jointly published by Salween Watch, Southeast Asia
Rivers Network (SEARIN) and Center for Social Development Studies, was
held at Bangkok's prestigious Chulalongkorn University with an opening
speech by Dr Amra Phongsapich, head of the Faculty of Political Science.

The report, first published in Thai under the title "Tragedy of the Two
Lands" last year, charges "the promoters of the dams are geared to start
construction at any moment without either consulting the local peoples or
considering the social and environmental impacts the dams will have" and
calls for efforts "to find low-impact models of development that can
ensure a rising standard of living for the communities it supports."

Both social and environment activists in Burma and Thailand have spoken
out against dam projects on the Salween. Due to widening opposition,
Beijing has reportedly instructed to put the plans on hold. "Information
on the ground, however, suggests that the future of the dams is
uncertain," says the report.

The activists hope the 84-page booklet will serve as a much-needed shot in
the arm for the anti-dam movement.

Meanwhile, S.H.A.N. has already received reports that the dam project on
the Shan State's part of the Salween is on the way to becoming a reality
as the year's dry season begins. (Dam on the Salween definitely on, 11
August 2004)

For additional information, please call Wandee Suntiwutthimetee, 01-530 5728.

_____________________________________
INTERNATIONAL

November 25, Rolling Stone
Rockers for Burma, Freedom Songs

Paul McCartney, Pearl Jam, and U2 are just a few of the artists who appear
on For The Lady: Dedicated to Freeing Aung San Suu Kyi and the Courageous
People of Burma, an album benefiting the U.S. Campaign for Burma (also
known as Myanmar).  Suu Kyi, a Nobel Prize-winning freedom fighter, has
been imprisoned by the repressive regime for more than a decade.  In July,
Ani DiFranco and Damien Rice, who both contributed tracks to the album,
toured refugee camps along the country's southeastern border.  "As soon as
we made music with people, we were instantly family," says DiFranco.

_____________________________________
OPINION / OTHER

November 10, Hindustan Times
Junta or not - Ravni Thakur

With Indian Air Chief Marshal S. Krishnaswamy slated to visit Yangon on
November 14, India-Myanmar relations are undergoing some change. Perhaps,
it's the right time to take a look at the country that lies landlocked
between India and China and has assumed strategic and economic
significance between these two giants.

India's North-east shares a border with Myanmar on one side while China's
south-west, the province of Yunnan, shares a border with it on the other.
As India and China reshape their geopolitical and economic strategies,
Myanmar has come to represent an important route to the rest of South Asia
for China and is fundamental to India's 'Go East' strategy, giving Myanmar
an unprecedented political and economic importance. This also gives Yangon
the potential for becoming the economic 'friendship bridge' between New
Delhi and Beijing. The recent visit of General Than Shwe to India must be
seen through this perspective.

During the Fifties, Myanmar maintained cordial and fraternal relations
with both countries and was one of the initial signatories of the
Panchsheel Treaty, signed in Bandung in 1954. However, it has had its
share of ups and downs in relations with both countries.

Indo-Burmese relations were cordial and friendly till the military coup in
1962. The Indo-Burmese border agreement and the treaty of friendship
signed in January 1960 are testimony to this fact. In 1964, the military
regime nationalised certain Indian properties without compensation and
this created some bad blood between the two. Indian businessman had to
leave - sometimes with no money even to pay their passage. During this
period, China, under the influence of Mao Zedong's 'world revolution',
supported Burmese militants and this made Burma turn to India again for
closer cooperation. But this did not really yield results.

India-Myanmar relations reached its lowest point when India openly
supported the pro-democracy movement and joined the international
fraternity led by the US in isolating Myanmar. In fact, this support is
often analysed as India's biggest blunder regarding its Myanmar policy -
one that pushed the latter into a dependent relation with China.

Since 1992, there has been a definite foreign policy rethink in India. The
insurgency movement in the North-east and the sheltering of insurgents in
Myanmar also forced India's hand since it needed the support of the
Myanmarese junta to flush out the militants. Secondly, China's increasing
military and economic presence in Myanmar meant that India, with its China
security complex, had to try and repair relations here. Finally, India's
general opening out to the South-east Asian region made Myanmar a crucial
point of departure.

India signed a border trade agreement with Myanmar in 1994. This became
operational in 1995 through Moreh, a small town in Manipur, to Tamu in
Myanmar's Sagaing division. In February 2001, the 144 km road built by
India and passing through Kalay, Kalaywa, Kyiong and Tamu - the
'Friendship Road' - was inaugurated. These trade moves have been welcomed
by India's North-eastern states. They have accepted that trade with
Myanmar will induce economic prosperity in this region and usher in the
possibility of removing the grievances felt by the youth in the region.

The relationship between China and Burma peaked in the Fifties and the two
countries signed a treaty in October 1960 to demarcate their borders.
Today, keeping its own economic goals in mind, China has started building
stronger ties with the military government in Myanmar and has become the
only country openly supporting the military junta in international
diplomacy and through infrastructure development, trade and even military
hardware.

However, China today sees Myanmar intrinsically as a trade zone which will
help its province of Yunnan in its thrust towards a land route for trade
with South Asia. Beijing has been systematically talking about the role
that Myanmar can play in reviving the 'Southern Silk Route' between India
and China and stresses the friendly role that Myanmar can guarantee if
land trade and tourism between India and China were ever to become a
reality.

Along with Bangladesh, Myanmar today is part of China's South Asia trade
strategy. Along the Chinese border, there are three points - Muse, Lweje
and Laizur - bordering Yunnan from where it exports almost all its
manufactured and agricultural products to Myanmar and where it imports sea
products and wood from Myanmar. The trade balance, as with every other
country, is in China's favour.

Thus, while for India its security perceptions vis-a-vis China may also be
of concern in its initiatives towards Myanmar, trade with South-east Asia
is also a big factor. China, on the other hand, sees it as the gateway to
trade and access to the Bay of Bengal region. In any case, Myanmar has
once again emerged as that crucial land link between the two largest
economies in Asia. And for Myanmar, it is a win-win situation.