BurmaNet News, December 17, 2004

[Editor]

December 17, 2004, Issue # 2622


INSIDE BURMA
Economist: Forced labour and other customs; Myanmar
AFP: Military digs in as Myanmar prepares for a grim year
Xinhua: Burmese army chief receives Chinese military delegation

HEALTH / AIDS
Irrawaddy: Burma should move to combat HIV epidemic—ICG
New Light of Myanmar: Experiences on AIDS control measures shared

DRUGS
S.H.A.N.: Opium price doubles in the north
S.H.A.N.: Officer in charge of drugs retires

GUNS
S.H.A.N.: Arms cache in Tachilek seized

REGIONAL
Narinjara: Than Shwe's donation creates discord among the Buddhist
community of Buddha-Gaya, India

INTERNATIONAL
AFP: US 'deeply concerned' about Myanmar opposition leader's welfare
Irrawaddy: UN and US concerned about Suu Kyi restrictions
Japan Economic Newswire: Myanmar couple protest detention separating them
from children

______________________________________
INSIDE BURMA

December 18, The Economist
Forced labour and other customs; Myanmar

The rising costs of doing business with a loathsome regime

Bangkok: Life has just got gloomier for the few foreign companies that
doggedly do business in Myanmar. On December 13th, Unocal, an American
energy firm with a stake in a gas pipeline in the country, agreed in
principle to settle several lawsuits related to that investment. The
decision will encourage exiles bringing similar cases against Total,
Unocal's partner in the venture, in Belgium and France. It will also
galvanise the various boycott campaigns around the world designed to press
investors to pull out of Myanmar. But it is unlikely, sadly, to have much
effect on Myanmar's military regime.

In all three suits, the plaintiffs allege that among other abuses
government soldiers forced them to work on construction jobs related to
the pipeline, and that since such abuses were predictable, the pipeline
consortium should bear responsibility for them. Total and Unocal, on the
other hand, argue that no forced labour went into the construction of the
pipeline itself, and that, in any case, they have no influence over
Myanmar's army and cannot be held responsible for its conduct.

Barry Lane, a spokesman for Unocal, although cagey about the details of
the settlement, still maintains that the firm did nothing wrong and is not
reconsidering its investment in Myanmar. But it has agreed to compensate
the plaintiffs and provide extra funds for development in the pipeline's
area. Total says it will continue to contest its lawsuits, and that it
will not withdraw from Myanmar. But following Unocal's settlement, the
notion that investment in Myanmar might turn out to involve a financial
liability, as well as merely being a public-relations disaster, is no
longer far-fetched.

In 2002, Premier, a British oil firm that was the target of a vociferous
disinvestment campaign, decided to sell its stake in another pipeline and
cease operations in Myanmar. Other firms, including several travel
agencies and garment-makers, have recently succumbed to boycotts. America,
meanwhile, bans new investments in Myanmar, and does not allow financial
transactions with the country, making life difficult for the remaining
multinationals.

But Asian firms, which do not suffer from boycotts at home, and find it
easier to get around the American embargo, are still willing to invest in
lucrative projects. Petronas, Malaysia's main state-owned energy firm,
snapped up Premier's pipeline stake.

Moreover, the generals who run Myanmar do not appear to care much about
the state of the economy. They fomented a bank run at the beginning of
2003, bringing domestic investment to a standstill. In 2004 they sacked
Khin Nyunt, the most dynamic member of the ruling junta, who had brought
the internet to Myanmar. They change the tax regime and export regulations
arbitrarily and without warning. This is not the behaviour of a group
susceptible to economic pressure.

_____________________________________

December 17, Agence France Presse
Military digs in as Myanmar prepares for a grim year

Yangon: A premier sacked, the people's hero still under guard and a region
in disarray over how to handle a military regime intent on securing
long-term political control: After a tumultuous year, analysts say the
future of Myanmar looks bleak.

Opposition leader Aung San Suu Kyi ended the year as she started it, under
house arrest with the democracy movement rudderless and without power as
the ruling junta tightened their control of the country.

However, for the former prime minister who advocated dialogue with Aung
San Suu Kyi, who heads the National League for Democracy (NLD), 2004
marked a rapid and stunning loss of power that sets the scene for
increasingly harsh policies in the coming year, according to analysts.

General Khin Nyunt, the prime minister and head of military intelligence,
was sacked for corruption in October. His dismissal came amid a round of
sackings of his allies and ministers experienced in dealing with the
international community.

While the leadership of the isolated dictatorship insisted it was pressing
ahead with its much-vaunted roadmap for democracy, it failed to free more
than a handful of democracy campaigners in a major prison release of more
than 14,000 inmates.

At the same time, the junta told Aung San Suu Kyi that she faced another
12 months in jail.

News of the lengthened detention broke during an Association of Southeast
Asian Nations (ASEAN) summit in November and proved an embarrassment for
the association's leaders. They had been following a programme of
"constructive engagement" with Myanmar and had praised its prison release
programme.

"Interactions with the regime in the last 18 months have proved to be a
complete reality check for ASEAN leaders," said Debbie Stothard of
pressure group Altsean.

"Their goodwill has been abused and they have been made to look stupid."

Myanmar has been ruled by the military since 1962 despite a landslide
election victory in 1990 by the NLD.

A national convention, the first step of a seven-point democracy plan,
began in May with about 1,000 junta-appointed members. It was designed to
bring about a new constitution to prepare for "free and fair" elections
but the international community dismissed the convention as a sham. The
NLD boycotted it.

The junta has said it will start the convention again in February. Some
observers predict it will speed through the programme to ensure the
junta's biggest domestic critic, Aung San Suu Kyi, will remain in
detention throughout the process.

"If they think they are in total control of the whole situation they might
even call it by the end of the year (2005) for early 2006," Stothard said.

"They are not going to repeat the mistakes of their predecessors and let
Aung San Suu Kyi free," she said referring to the NLD's landslide victory
of 1990. "This is going to be very strictly orchestrated."

Any political manoeuvrings are likely to be highly scrutinised through
2005 since Myanmar is due to take the ASEAN chair in 2006. The US has said
it could boycott ASEAN meetings if Myanmar is allowed to take the role.

The US and the European Union continued sanctions in 2004 and Myanmar's
long-neglected economy increasingly suffered.

Lending, and consequently development, came almost to a standstill during
the year after a panic-run on the country's 20 private banks and a
dangerous liquidity crunch beginning in 2003.

The financial sector has been further hit by fears surrounding the state
of Myanmar's currency amid rumours of counterfeiting that followed Khin
Nyunt's downfall. The price of gold has surged 25 percent as a result.

The junta last month denied rumours it was considering declaring old legal
tender useless just six weeks after issuing new and smaller notes.

Fury over a programme to try to rid the Myanmar economy of black market
cash was a major factor that led to mass protests demanding an end to the
military dictatorship in 1988. The protests were brutally suppressed.

Analysts say Khin Nyunt and his military intelligence unit largely ran the
remnants of Myanmar's economy and claim the junta has failed to take up
the reins since his arrest.

"The economy is completely aimless at the moment and everyone except the
generals has a very negative outlook with the most optimistic hope being
that the status quo can be maintained," a Yangon-based western diplomat,
who did not want to be named, told AFP.

He said rising fuel costs and a rice shortage were causing extreme
hardship in rural areas.

A report by the International Crisis Group think-tank in September warned
that remote, mountainous areas along the borders with Thailand, Laos,
China, India and Bangladesh, largely populated by ethnic minorities, had
become desperately poor.

____________________________________

December 16, Xinhua News Agency
Burmese army chief receives Chinese military delegation

Rangoon: Vice Senior General Maung Aye, vice-chairman of Burma's State
Peace and Development Council, deputy commander-in-chief of the defence
services, and commander-in-chief of the army, on 16 December met with
visiting Lt-Gen Sun Zhiqiang, deputy director of the General Logistics
Department of the Chinese People's Liberation Army, in Rangoon.

Maung Aye said that this visit by the Chinese military delegation to Burma
will further promote the friendly and cooperative ties between the two
countries and the two armed forces. He said that from now on, Burmese and
Chinese armed forces will not only conduct high-level visits but should
also strengthen basic-level exchanges, as this will be beneficial to
improving the friendship between the two armed forces. He also expressed
appreciation for the support and assistance given to the Burmese military
by the Chinese armed forces.

Lt-Gen Sun Zhiqiang said that his visit to Burma is meant to enhance
understanding, improve friendship, and expand cooperation. He believed
that the visit will further strengthen the friendly and cooperative ties
between the two armed forces. He also welcomed high-and mid-level Burmese
military delegations to visit China.

Present at the meeting were Chinese Ambassador to Burma Li Jinjun and
military attache Senior Colonel Ma Shoudong.

Sun Zhiqiang's delegation arrived in Burma 15 December for a four-day visit.

_____________________________________
HEALTH / AIDS

December 17, Irrawaddy
Burma should move to combat HIV epidemic—ICG - Yeni

To combat its HIV/AIDS epidemic, Burma must urgently boost local staff
capabilities and make more effective use of international aid, claimed a
report by the Brussels-based International Crisis Group, or ICG, released
on Thursday.

The report said that the international humanitarian response is helping
Burma to develop social structures independent of the regime, and the
transparency, accountability and effectiveness of HIV/AIDS programs in
local organisations play a vital role in building an open society.

“Fighting HIV/AIDS involves intensive ground-level work, so it entails
fostering small NGOs and grassroots organisations, the kind of groups that
might eventually help prepare for any democratic transition”, Robert
Templer, director of the ICG’s Asia Program said.

The regime remains blinkered, but some government obstacles have been
removed: most critically, the military decided to address the problems of
HIV. Also, in a change of heart, the opposition National League for
Democracy, or NLD, supports outside assistance for HIV/AIDS programs. But
grave problems remain.

“Government spending on health and education is still perilously low, with
the military seriously mismanaging the economy,” states the report. “The
recent shake-up in the regime leaves the political future more uncertain
than ever.”

The ICG urged that international assistance be expanded to border areas,
where the HIV problem is particularly intense, and that additional support
be targeted at local and community-based organizations.

According to the report, about 1.3 percent of adults in Burma are believed
to be infected with HIV. However there is no consensus on the scale of the
problem. The United Nations Joint Program on HIV/AIDS or UNAIDS, in July
2004 estimated infection at a median of 320,000, but within a range of
accuracy of between 170,000 and 610,000, which makes it statistically
meaningless. On December 1 Burma’s Ministry of Health issued a dubiously
precise estimate of 338,911 HIV positive people in the country.

_____________________________________

December 13, New Light of Myanmar
Experiences on AIDS control measures shared

Yangon: The Myanmar Business Coalition on AIDS (MBCA) and other business
coalitions in the region shared experiences on AIDS control measures at
Traders Hotel on Sule Pagoda Road on 8 December morning. First, Chairman
of MBCA U Martin Pan extended greetings.

Next, Resident Representative of UNAIDS Mr Brain Williams, Deputy Director
of AIDS and Venereal Diseases Control Division of the Ministry of Health
Dr Min Thwe, MBCA Executive Director Dr Khin Aye Aye, Chairman of MBCA
(Pyay Branch) U Tin Win, Executive Directors of Thailand Anthony
Pramultratana and Mr Simon Graham and Ms S Solomon of Singapore shared
experiences on measures taken to control AIDS by businessmen in the
region.

Afterwards, officials concerned replied to queries raised by those present.

_____________________________________
DRUGS

December 17, Shan Herald Agency for News
Opium price doubles in the north

Due to pressing demands from China, opium prices have soared sharply
during the past few weeks in northern Shan State, reports Hawkeye:

"Output in the north has been way below the demand since the 2001-2002
season when Draconian actions were taken against poppy growers," explained
a source from the business circle. "Moreover, last year's output in the
south and east wasn't enough due to the dry weather, and this year's main
crop is yet to be harvested in most areas. These together have pushed up
the prices here from 500,000 kyat ($500) per viss (1 viss=1.6 kg) up to
800,000 - 1,000,000 kyat ($800 - 1,000)."

Heroin price, up since Gen Khin Nyunt's ouster, has been holding steady at
30,000 yuan ($ 3,750) per kg.

Down south, opium from the last season is selling at 280,000 - 300,000
kyat ($280-300). S.H.A.N. is yet to receive any price quotes for the
reason's harvest there.

In Mongton township, Eastern Shan State, 3 buyers, Lao Hsang, a Kokang in
Mongjawd; Ta Leu, a Wa from Namhu Jawnghtam in Monghang tract; and Jakaw,
a Lahu said to be the agent for Mongton-based Infantry Battalion 65, are
offering the following prices:

Old opium 340,000 - 350,000 kyat ($340 - 350)

New opium 280,000 kyat ($280)

Prices quoted here are all up from last year's.

Some observers have pointed out that the price hike is the best indicator
of Rangoon's success against drugs. Others however say they simply
illustrate the increase in the demand especially from the Chinese side of
the border.

_____________________________________

December 17, Shan Herald Agency for News
Officer in charge of drugs retires

A Burma Army captain who had for more than ten years been named in drug
dealings of an infantry battalion across the border from Chiangmai has
recently been "permitted to retire", reports King Cobra from the border:

Captain Han Sein, 50, by order from Rangoon that was dispatched through
Kengtung, headquarters of the Triangle Region Command, eastern Shan State,
was discharged on 4 December, according to relatives of his wife, Nang
Mon, a native of Mongton's Hpakhae tract.

Han Sein, who came from the ranks, won his commission fighting against the
Shan and Lahu resistance. He later became a close confidant of Lt-Col
Myint Aung, Commander of Mongton-based Infantry Battalion 65, who later
rose to become Commander of Southeastern Region until his retirement a few
years back.

Since then, he had reportedly managed the "illicit but necessary" affairs
of the battalion: Liaising with local drug operatives, transporting
precursor chemicals for refineries, organizing security for them, buying
raw materials and storage of finished products before shipping off to
destinations.

Han Sein has been mentioned in many of S.H.A.N.'s drug-related reports
since 1996 including Show Business Rangoon's War on Drugs in Shan State
that was published last year.

He has two children, a daughter and a son.

_____________________________________
GUNS

December 17, Shan Herald Agency for News
Arms cache in Tachilek seized

Burmese authorities in Tachilek, across Maesai, recently uncovered a cache
of arms believed to be on the way to the far-flung Indian border, writes
Tai Touch from Chiangrai:

At 21:30 on 9 December, a raiding party led by Lt-Col Aung Zaw Moe,
Tachilek district officer; Pol Lt-Col Aung San Oo, Tachilek district
police officer and Maj Kyaw San, head of the local Special Investigations
Bureau, found 36 assorted weapons at a row house owned by Ah Way in Ban
Wiang Keow, Hawngleuk tract. The tenant, a Chin bearing the name Salai
Kehar Hrang, however, was not found.

The loot includes 14 M-22, 3 M-23, 1 M 203 (M16 attached with M 79 grenade
launcher), 18 9mm pistols and 16 hand grenades among others.

The Burmese officers were of the opinion that the weapons originated in
Thailand and were bound for the Chin resistance on Burma's western border.
To which a senior Chin leader in Thailand rejected outright:

"Despite having a Chin name, the guy has nothing to do with the
resistance. He is an arms smuggler who is making money selling them to
Indian rebels in the northeast corner of India."

The authorities nevertheless have been giving a thorough going over on
every vehicle that passes through the Friendship Bridge that spans between
the two countries since 12 December.

_____________________________________
REGIONAL

December 17, Narinjara News
Than Shwe's donation creates discord among the Buddhist community of
Buddha-Gaya, India

Dhaka: Anger broke out among the Buddhist community in Buddha Gaya during
Senior General Than Shwe's tour of India, after he placed a new Buddha
image in the compound of Buddha-Gaya, the location where Gautama is said
to have attained the enlightenment of a Buddha.

The international Buddhist community is arguing about the replacement of
the Buddha image by Than Shwe because the substitute Buddha image is not
in accordance with the guidelines of the Archaeology Department of India.

According to the Indian Archaeology Department law, modern images are not
to be permitted anywhere in the compound of Buddha-Gaya. Therefore, Than
Shwe's replacement with the donated image is against the rules of the
department.

"The image is new and it is 2 feet high. It was previously replaced with a
small image donated by Senior General Than Shwe a few years ago by his
name near the papal- tree in the compound," said a Burmese monk who has
lived there since 1988.

The monk added that the Archaeology Department had at first refused that
Than Shwe's donated Buddha image be accepted in the compound, but in the
end they were forced to accept it due to the pressure of Buddha-Gaya
Society and the Bihar state government.

Now many in the international Buddhist community would like to place their
own respective Buddha image, made in their own culture, in the compound of
Buddha-Gaya where a large number of the community gather during the holy
times.

Senior General Than Shwe donated the controversial statue as well as 2
million Indian Rupees to the Buddha-Gaya Society during his trip to
Buddha-Gaya, on 27 October.

_____________________________________
INTERNATIONAL

December 17, Agence France Presse
US 'deeply concerned' about Myanmar opposition leader's welfare

Washington: The United States on Thursday expressed deep concern for the
welfare of Myanmar opposition leader Aung San Suu Kyi after her National
League for Democracy said the military junta has restricted her access to
a doctor and cut her personal security.

"The United States is deeply concerned for the welfare of 1991 Nobel
Laureate and National League for Democracy General Secretary Aung San Suu
Kyi, who remains under house arrest," State Department spokesman Richard
Boucher said in a statement.

"Over the past two days, the Burmese junta has further restricted Aung San
Suu Kyi's access to medical care and ordered most of her personal staff to
leave the compound," Boucher said, using Myanmar's former name.

"We hold the Burmese junta solely responsible for her health, safety,
security and well-being," he added.

The National League for Democracy said the famed pro-democracy leader's
access to her doctor has been slashed from three visits a week to one,
while her personal NLD security detail has been cut from 13 to six.

Aung San Suu Kyi, 59, has been detained since May last year when a
junta-backed mob clashed with her supporters during one of her political
trips in northern Myanmar.

The Nobel peace laureate underwent surgery in September last year, which
her doctor said was related to gynecological and other unspecified
conditions.

_____________________________________

December 17, Irrawaddy
UN and US concerned about Suu Kyi restrictions - Nandar Chann

UN Secretary General Kofi Annan said Thursday he was “seriously concerned”
to hear that the Rangoon government had withdrawn opposition leader Aung
Suu Kyi’s security guard and had further limited visits by her doctor.

US State Department spokesman Richard Boucher also expressed Washington’s
concern.

Suu Kyi’s opposition party, the National League for Democracy, or NLD,
said that following the withdrawal of her security guard only two women
now remained with her to help with household tasks.

Previously, 13 youth members of the party had been allowed to guard Suu
Kyi’s security.

“The authorities absolutely have responsibility for her security,” the NLD
said.

According to the NLD, the regime had also cut the number of weekly visits
to Suu Kyi by her doctor from three to one.

Suu Kyi has been detained since May last year after her motorcade was
attacked by a pro-junta mob supporting the junta in Depayin, Sagaing
Division. On November 27 her house arrest was extended for a further year.

House arrest is nothing new to the Nobel laureate. She was detained from
1989-95 and again from late 2000 to May 2002.

_____________________________________

December 17, Japan Economic Newswire
Myanmar couple protest detention separating them from children

Tokyo: A married couple from Myanmar who have been detained for illegally
entering Japan filed a lawsuit Friday with the Tokyo District Court
seeking cancellation of the government's detention order and suspension of
their detention.

The couple's lawyer said his clients had been living in Tokyo with their
1-year-old son and 3-year-old daughter when they were taken into custody
by immigration authorities and separated from their children.

The couple say their detention is inhumane because they have been
separated from their children, who have been placed in a facility for
children in Tokyo.

According to the couple's petition, they belonged to an ethnic minority
group in Myanmar and took part in an antigovernment movement, and to
escape persecution, they fled to Japan, entering the country on fake
passports sometime by 1999.

The two got married in Japan and took on jobs, including as janitors.

Last month, law enforcement authorities took the husband into custody
first, then the wife about two weeks later.

Since they had no relatives in Japan, the two children were placed in the
facility, the lawyer said, adding that they had high fevers at the time.

The lawyer criticized the immigration officials' detention of the couple,
saying there is no fear they will run because the family has created a
life in Japan.