BurmaNet News, August 24, 2005

[Editor]

August 24, 2005 Issue # 2789


INSIDE BURMA
Irrawaddy: Western diplomats dismiss Rangoon coup rumor
AP: Rumor of alleged coup in Myanmar inflates prices of gold, dollar
SHAN: Junta moves baffle Burma watchers
Narinjara: Arakanese people concerned with the junta’s so-called
restoration of ancient pagoda

BUSINESS / FINANCE
New Light of Myanmar via BBC: Burma's home affairs minister receives
Unocal chairman

ASEAN
Reuters: ASEAN: Unrealistic for US to observe E.Asia Summit

REGIONAL
New Light of Myanmar via BBC: Burma holds Mekong region transport meeting
in Rangoon

INTERNATIONAL

PRESS RELEASE
SEAPA: Burma: Ban on sensitive news extended despite assurances of more
"flexible censorship policies"

____________________________________
INSIDE BURMA

August 24, Irrawaddy
Western diplomats dismiss Rangoon coup rumor - Shah Paung

Rumors that Burma’s top leader Snr-Gen Than Shwe had been toppled in a
Rangoon coup were discounted on Wednesday by experienced Burma-watchers
and western diplomats in the Burmese capital.

Snr-Gen Than ShweThe rumors began on Tuesday within the Burmese exile
community and spread rapidly in Rangoon, creating panic in financial and
business circles there. Many shops and currency transfer businesses
closed, the black market rate for the kyat rose from 1,150 to 1,180 to the
dollar and the price of gold jumped from 275,000 kyat to 280,000 kyat an
ounce.

Than Shwe is Chairman of the State Peace and Development Council and
Commander in Chief of Burma’s armed forces. There have been persistent
rumors of power struggles within the top leadership since the removal last
October of prime minister and military intelligence chief Gen Khin Nyunt.

The rumors were reported by the international news agency Reuters, while
the Burmese service of the London-based BBC, citing an unnamed source on
the China-Burma border, said a decision to stage a coup had been made by a
group of five military leaders led by Deputy Snr-Gen Maung Aye at a secret
meeting in Rangoon.

Observers and western diplomats in Rangoon on Wednesday dismissed the
report as untrue, and said Rangoon was quiet, with no sign of any
increased military presence.

Than Shwe last appeared publicly on August 20 when, with other top regime
leaders, he met UN Secretary General Kofi Annan’s special envoy Ali Alatas
in Rangoon.

Western diplomats said Than Shwe appeared to be in good health and there
was no sign of friction among the leaders. “He looks strong and all of his
subordinates acted obediently,” said one.

____________________________________

August 24, Associated Press
Rumor of alleged coup in Myanmar inflates prices of gold, dollar - Aye Aye
Win

Yangon: Rumors on Wednesday of an alleged coup within Myanmar's ruling
military junta weakened the country's currency and strengthened the price
of gold, local businesspeople said.

The rumors that ruling junta chairman Sr. Gen. Than Shwe was deposed by
his deputy, Gen. Maung Aye, and a group of military leaders spread rapidly
after a story Tuesday night on the British Broadcasting Corp.'s Burmese
program, quoting a resident on the Myanmar-China border.

The person told the BBC that Than Shwe was forced to retire by army
Commander in Chief Maung Aye because of "nepotism and corruption."

The government has not officially denied the rumor, but an official close
to a high-ranking military leader who demanded anonymity said the "news
was absolutely untrue."

"This rumor is still a rumor," the foreign minister of neighboring
Thailand, Kantathi Suphamongkhon, told reporters in Bangkok Wednesday. He
said he is still planning to visit Myanmar as previously scheduled on Aug.
31-Sept. 1.

The U.S. dollar rose to 1,170 kyat on the black market today from 1,150
kyat Tuesday because of the coup rumors, a black-market money changer said
on condition of anonymity.

The official exchange rate for the kyat, which is non-convertible, is
approximately 6 kyat per dollar, but most business transactions and
consumer sales are conducted at the black-market rate. The government
usually tolerates the unofficial exchange rate as the only realistic way
of conducting trade.

"News about the alleged coup has also affected the price of gold on
Wednesday. A tical of 24 carat gold (.525 troy ounce), which was 271,500
kyat (US$232), went up to 276,500 (US$236) today," a gold-shop owner said.

News-starved citizens of Myanmar rely on foreign radio stations for news
about the country. Because information is tightly restricted, rumors are
frequent and tend to spread quickly.

There have also been rumors that security at the military hospital was
tight because Than Shwe was in the hospital, but the same official who
denied the coup rumor said security was slightly increased because Maung
Aye's daughter gave birth at the hospital.

Meanwhile, the front page of the New Light of Myanmar newspaper on
Wednesday featured a brief report saying, "Sr. Gen. Than Shwe sent
felicitations to Ukraine on the occasion of its Independence Day." The
newspaper also showed Maung Aye entertaining a group of visiting Russian
military attaches.

Myanmar's current junta came to power in 1988 after crushing a
pro-democracy uprising. It refused to hand over power to Nobel laureate
Aung San Suu Kyi's party after its landslide election victory in 1990.

Former Prime Minister Gen. Khin Nyunt, also the former military
intelligence chief, was ousted last October in a major junta shake-up.

In April 1992, former junta chairman Gen. Saw Maung was removed from
office for "health reasons," after which Than Shwe became chairman of the
council.

_____________________________________

August 24, Shan Herald Agency for News
Junta moves baffle Burma watchers

The Wa in Tachilek, Maesai’s twin city on the Burmese side, have received
an ultimatum from the Burma Army’s Triangle Region Command based in
Kengtung, 160 km away, to hand over the remaining unregistered motor
vehicles in their possession, according to sources from the border.

The United Wa State Army and its business arm, Hongpang, had so far been
permitted to use their unlicensed cars, known popularly as “withouts”,
despite the countrywide crackdown that began in October. “That was because
they were fighting against the Shan State Army “South” (of Col Yawdserk),”
explained a Tachilek resident. “Now that they have stopped bothering the
Shans, Rangoon wants to let them know they have a stake in it.”

Soldiers and police were also seen taking over strategic points both along
the river Maesai and at road intersections this morning, giving rise to
speculations whether there were more behind the Burmese order. “After all,
most of the Wa cars have all been transferred to Panghsang (the Wa
stronghold on the Chinese border),” observed a resident. “Not more than a
hundred withouts remain in the whole eastern Shan State.”

Other sources pointed out that the Wa are under increasing pressure since
the closure of Myanmar Universal Bank and subsequent clampdown on its
patrons, including U Tar Wai, a close associate of Wei Hsuehkang,
commander of the UWSA’s 171st Military Region. “Remember, the Wa attack on
the SSA began soon after banks linked to them were closed by Rangoon?”
said a businessman in Maesai.

Licenses of Asia Wealth and Mayflower, banks reputed to be affiliated to
the UWSA and under official investigation since December 2003, were
revoked on 31 March. The Wa offensive on the SSA was called off following
its disastrous “human wave” charges against the latter’s stronghold
opposite Maehongson in April. “The Burma Army wants to remind them they
have yet to finish the job they had set out to do.”

A team of Special Investigation Bureau (Sathonlon in Burmese) also arrived
a few days ago with 42-blacklisted clients of the MUB, added a Tachilek
source.

Burma Army sources, one from Mongton and another from Tachilek, also
claimed the Army is on a 7-month operation to “checkmate” the Wa since the
end of May. “The ongoing racket on the Thai border doesn’t have anything
to do with the coup reports in Rangoon,” concluded a high-ranking watcher
from Thailand.

According to a source close to the War Office, Burma’s No.1 top man Gen
Than Shwe was forced to retire by his deputies on 22 August. The news has
not been confirmed.

_____________________________________

August 24, Narinjara News
Arakanese people concerned with the junta’s so-called restoration of
ancient pagoda

Arakanese people are very concerned with the “restoration” of one of their
heritage sites, the ancient Koe Thaung Pagoda in Maruk U.

Though the Koe Thaung renovation is being conducted by the Burmese
Archeological Department, there is no systematic expertise being used in
the process. Instead of using those with knowledge in restoration of
ancient architecture and buildings, lay builders and even soldiers are
employed to use modern cement and bricks in the Koe Thaung pagoda.

An Arakanese monk from Mrauk U who visited the restoration site says,
“They are not really restoring the pagoda. They are simply destroying the
whole thing with such unsystematic ways. They are not really fixing the
breakages of the old statues and buildings. They may seem to be fixing up
the old pagoda, but they are destroying our heritage. When they try to fix
a broken statue, if the pieces didn’t fit together, they just hack away
and change the whole statue. That totally destroys the original features.
I think it would be better off leaving it alone than using such so-called
restoration.”

There has been no consultation with international experts on the old
heritage or Arakanese arts and architecture, or the local Arakanese people
with expertise and interests in their heritage.

According to the Archeological Department, the restoration project is
funded by the junta and donations have been forcefully collected from the
public. The project is said to be twenty five percent completed.

Koe Thaung was built in 1553-56 AD by the Arakanese King Min Dikkha, son
of king Min Bin who also built Shit Thaung, "80,000 Images" pagoda, after
he conquered Bengal. Koe Thaung means 90,000 statues and it is one of the
most famous ancient pagodas in Arakan state.

____________________________________
BUSINESS / FINANCE

August 24, The New Light of Myanmar via BBC
Burma's home affairs minister receives Unocal chairman

Yangon: (August 23) Chairman of Unocal Mr David C. Peters called on
Minister for Home Affairs Maj-Gen Maung Oo at the latter's office this
afternoon.

Also present at the call were Director-General of Myanmar Police Force
Brig-Gen Khin Yi, Director-General of General Administration Department U
Myat Ko, Deputy Director-General U Maung Win, Police Colonel Sit Aye of
Trans-Border Crime Department and Head of Office U Kyaw San.

_____________________________________
ASEAN

August 24, Reuters
ASEAN: Unrealistic for US to observe E.Asia Summit - Yoko Nishikawa

Tokyo: Asian countries will not ignore U.S. interests when they hold an
inaugural regional summit but they do not think President George W. Bush
should be invited as an observer, a top ASEAN official said on Wednesday.

Ong Keng Yong, secretary general of the 10-member Association of Southeast
Asian Nations (ASEAN), said he was sceptical about Japan's proposal to
include the United States as an observer at the East Asia Summit to be
held in Kuala Lumpur in December.

"Whatever we are doing with the East Asia Summit, we are not going to
ignore U.S. interests," said Ong, who is in Tokyo to hold meetings with
officials and attend forums.

But Ong added that it would not be realistic to call on the U.S. president
to come as an observer, while inviting a U.S. secretary of state instead
would be insulting to the member nations' heads of state.

"Think about it. It is a meeting of some 16 heads of state. And you have
(U.S.) President (George W.) Bush come as an observer?"

"So practically, there is a problem with the idea of an observer."

Since the ASEAN plus China, Japan, and South Korea decided to convene the
East Asia Summit, there has been heated debate on who it should include.

The United States continues to play a key role in Asia, but some Asian
countries say U.S. involvement in the region sometimes amounts to meddling
in domestic or regional affairs.

Australia bowed to regional pressure and agreed to sign a mandatory peace
pact to join the summit. India and New Zealand are also expected to be
inaugural participants.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand, Vietnam.

MYANMAR AS CHAIR

Speaking to Reuters in an interview later on Wednesday, Ong also said he
hoped that army-ruled Myanmar, which last month gave up the 2006 ASEAN
chairmanship, would make enough progress on national reconciliation to
assume the chair in the near future.

Ong made the comments as rumours swirled in Myanmar and neighbouring
Thailand that junta strongman Senior General Than Shwe had been removed by
the powerful army commander.

A Thai intelligence official told Reuters his organisation was trying to
determine the truth of the rumours in the absence of official comment from
the Yangon government.

In late July, Myanmar decided to skip its turn as chair of ASEAN, saying
it would instead focus on efforts to restore democracy.

The decision defused a simmering row between the Southeast Asian bloc and
the West over the junta's lack of democratic reform and its detention of
opposition leader Aung San Suu Kyi.

But the military, which has ruled since 1962, is still on the first step
-- drafting a new constitution that has been assailed by critics as a
document aimed at maintaining the military's sway.

"They will stay away from the chair maybe two or three years. Beyond that
it is quite incredulous to believe that drafting a constitution and a
national convention will take so many years," Ong said.

Ong, a Singaporean, noted that Yangon had spent the last decade working on
its national constitution, but added: "I hope it's not that kind of
length."

_____________________________________
REGIONAL

August 24, The New Light of Myanmar via BBC
Burma holds Mekong region transport meeting in Rangoon

Rangoon: The third coordination meeting on annexes and protocols stage-3
of cross border transport agreement in Greater Mekong Subregion (GMS) was
held in Traders Hotel on 23 August, says a Myanmar News Agency report in
Burmese newspaper The New Light of Myanmar on 24 August..

Burma's Chairman of Work Committee for Ensuring Road Transport and Deputy
Minister for Rail Transportation Thura U Thaung Lwin delivered an address.

Present were 32 delegates from Cambodia, China, Laos, Thailand and
Vietnam, Asian Development Bank (ADB) and two consultants from Padeco Co
Ltd and officials from the Ministry of Rail Transportation, the Ministry
of Finance and Revenue, Ministry of National Planning and Economic
Development, the Ministry of Construction, the Union of Myanmar Federation
of Chambers of Commerce and Industry and International Freight Forwarders
Association.

In his address, Deputy Minister Thura U Thaung Lwin said he was glad to
host the third meeting and expressed thanks for assistance of ADB. He
spoke about removing non-physical barriers to ensure smooth transport in
GMS countries. Now six GMS countries have signed cross border agreement,
he said.

____________________________________
PRESS RELEASE

August 23, Southeast Asian Press Alliance (SEAPA)
Burma: Ban on sensitive news extended despite assurances of more "flexible
censorship policies"

Bangkok: On 16 August 2005, the Burmese Ministry of Information's Press
Scrutiny and Registration Division (PSRD) blocked the "Myanmar Times" from
publishing a Burmese translation of an article on new publishing licence
regulations in the country, according to well-informed sources in Rangoon.

The banned article, scheduled for the paper's 18 August edition, dealt
with the new publishing licence regulations issued by the ministry on 1
August.

Under new publishing rules, the PSRD can block the transfer of a
publishing licence from one publisher to another. The new rules also
tighten control over authorised publications' editorial teams.

The new regulations, however, were only published in "Myanmar Times",
which runs bilingual news and commentary in English and Burmese languages
every week.

"Apparently the military junta does not want Burmese readers to know about
its new restrictive policy. It doesn't care about the English version,
which tends to be read mostly by expatriates in Burma," said the sources.

Ironically, the publishing rules are part of new press censorship
regulations that PSRD director Maj. Tint Swe says offers concessions to
the media in return for a more proactive approach to supporting the junta.
Maj. Tint Swe earlier told the "Myanmar Times" that new censorship
policies put in force in July will allow for a more flexible environment
for media reporting. He had said that negative reports and commentary
about China, India and the Association of Southeast Asian Nations (ASEAN)
will still be banned, but suggested that critical reports on Burmese
government projects may be tolerated as long as criticisms are deemed
"constructive."

He added that media coverage of natural disasters and poverty, previously
banned, will also be allowed so long as the reports do not affect national
interest.

Recent developments in Burma suggest, however, that nothing has changed in
the junta's censorship regime. Worse, some members of the Burmese media
community suggest that the situation continues to deteriorate.

On 5 August, "Irrawaddy Magazine", an independent Burmese news publication
operating in exile in Thailand, quoted journalists inside Rangoon as
saying that the overall the situation was deteriorating, despite official
assurances of "more flexible censorship policies."

In July, none of the Burmese media reported on Burma's decision to forgo
its rotating chairmanship of Asean in 2006 in response to pressure from
the international community.

On 16 August, the censorship board also banned local journalists from
reporting about looting in a pagoda. (A Buddha tooth relic, reportedly
worth about 50 million kyat or US$50,000, was said to have been among the
items stolen from the pagoda, which is located near the heavily guarded
villa of the military junta head.)

For further information, contact Kulachada Chaipipat at SEAPA, 538/1
Samsen Road, Dusit, Bangkok, 10300 Thailand, tel/fax: +662 243 5579,
e-mail: seapa at seapabkk.org, Internet: http://www.seapabkk.org

The information contained in this alert is the sole responsibility of
SEAPA. In citing this material for broadcast or publication, please credit
SEAPA.