BurmaNet News, May 12, 2006

[Editor]

May 12, 2006 Issue # 2961

INSIDE BURMA
Associated Press: Karen minority flee Myanmar junta
DVB: Student leaders warn of chaos if Burma’s NLD abolished
DVB: Official robbery: Burma authorities confiscate land near new capital
Khonumthung: Pagoda being built with funds from Christian community
Narinjara: Man in possession of mobile phone arrested in Maungdaw

ON THE BORDER
DVB: Burma army orders villagers to do unpaid labour in campaign against
the KNU
IMNA: Village headmen flee fearing capture
Thai Press: Thailand police warn against holiday gambling in Myanmar

BUSINESS / TRADE
Narinjara: India, Myanmar encroach Bangladesh territorial waters for HC
exploration
Xinhua: India, Myanmar vow to enhance bilateral trade
DVB via BBC: Paper prices rise, pushes up costs of publications
AP: Total CEO Desmarest names exploration chief Margerie to succeed him in
2007

DRUGS
SHAN: Shan-Kayah border increases production

REGIONAL
AFP: Human trafficking summit hears prosecutions have risen

____________________________________
INSIDE BURMA

May 12, Associated Press
Karen minority flee Myanmar junta – Denis Gray

His village was burned to the ground and four of his relatives executed,
but Saw Ta Khay stayed in his native area for 31 years, living with
malaria and hiding in jungle enclaves.

Then the ruling junta launched a new offensive -- its biggest in almost a
decade against the ethnic Karen minority -- and he could take no more: he,
his family and all 200 fellow villagers fled to the rugged frontier with
Thailand.

Now they're huddled in a narrow, remote valley with about 700 others,
their backs against the border-marking Salween River. Virtually without
protection, they daily fear attack from troops who are hunting the Karen
in a campaign that refugees and aid groups say is marked by killings,
torture, forced relocations, land mines and destruction of food supplies.

"Since my boyhood, we have always faced misery in our lives. The few happy
times were when there were no soldiers close by. Only God has been there
to help up,'' said the 40-year-old farmer, crouching in a hut cobbled
together from bamboo and thatch from the forest.

The Karen, many of them Christians, are among a welter of ethnic
minorities in mostly Buddhist Myanmar, formerly known as Burma. Most live
in remote areas and have radically different culture and traditions from
the Burman majority.

The ruling generals say its their duty to prevent the Karen and other
rebels from shattering Myanmar's unity.

This latest of several crackdowns aims finally to crush the Karen National
Union, a rebel group that has been fighting for autonomy for nearly six
decades, by cutting its guerrillas off from a civilian population
suspected of rendering them support.

The insurgents say the regime, imbued with racial hatred going back
centuries, is simply trying to eradicate them as a people. They've won
support from U.S. congressmen, members of the British House of Lords and
human rights groups.

''Without swift and decisive (U.N.) Security Council action, the killings
and abuses will not stop. China and Russia need to stop blocking action on
Burma in the Security Council, as that gives a green light to the military
government's scorched earth policy,'' the U.S.-based Human Rights Watch
said in a recent statement.

But the offensive shows no signs of easing. The military, which has
controlled Myanmar since 1962, denies any human rights violations against
ethnic minorities, including the Karen, which it blames for a spate of
recent bombings.

In the sole statement on the situation, Information Minister Brig. Gen.
Kyaw Hsan said last month only that ''cleaning-up operations are being
conducted in some areas where (Karen rebel) terrorists are believed to be
hiding.''

The onslaught has spawned more than 13,000 internal refugees, according to
the Free Burma Rangers, a group of Westerners and ethnic volunteers who
aid displaced people in the country.

More people are heading for the Thai border.

Saw Maw Ku, 47, his wife and four children struggled into this camp just
hours before reporters arrived, ending a grueling monthlong trek from his
village of Bway Baw Der.

His family, including a 6-month-old baby girl, walked only by night to
skirt army patrols and suffered from malaria and dysentery, he said. They
arrived with their only remaining possessions -- rice, salt, two blankets
and one change of clothing apiece.

The Free Burma Rangers report that most of the recently displaced don't
want to abandon their homeland for the relative safety of the border or
exile in Thailand, which has 140,000 refugees from Myanmar and doesn't
want more.

One such die-hard family, the group says, are a mother, two sisters, a
baby boy and a 9-year-old girl recovering after being shot through the
stomach last month. The family was fleeing from their village and climbing
up a ridge when Myanmar soldiers fired at point-blank range. They killed
the father and his 80-year-old mother, who he was carrying on his back.

The flight to the border reflects the severity of the offensive, the
largest since 1997, because the Karen -- a conservative, rural people --
cling to their land at almost any cost. Saw Ta Khay said over the past
decade his community had to shift its hide-outs three to four times every
year, but always tried to stay near their village of Plaw Mu Der, which
was razed in 1975.

Some observers suggest the offensive was launched to secure the hinterland
east of the newly established capital of Pyinmana. But it also comes at a
time of general tightening up by the junta, including restrictions on
foreign non-governmental organizations and indications that it may outlaw
the pro-democracy party of detained Nobel Peace laureate Aung San Suu Kyi.

Hard-liners came to the fore in Myanmar in 2004 when they ousted former
junta member Gen. Khin Nyunt, who had negotiated cease-fires with 17
ethnic insurgent groups and was working on a peace deal with the Karen
National Union.

If peace does come, the refugees here say they will head home. But in the
meantime many, like Saw Myint Naing, are too traumatized to consider a
return.

His village of Yer Loe was burned down twice and recently hit by mortars.
A number of its citizens were killed, including his brother-in-law who was
going out to buy rice. Another villager was forced to guide the troops,
who then shot him when the patrol ran into a minefield.

The 36-year-old farmer can still hear the words of one officer, Tin
Hlaing, ringing in his ears: ''If I hear one sound out of this village, we
will kill you all.''

____________________________________

May 11, Democratic Voice of Burma
Student leaders warn of chaos if Burma’s NLD abolished

In an interview with the DVB today, the leaders of the 1988 generation of
Burmese students expressed their concern about the future of the country
as a result of the intensifying pressure against the main opposition
party, the National League for Democracy (NLD) led by detained Nobel
laureate Aung San Suu Kyi.

DVB staff Moe Aye talked to one of the renowned student leaders Ko Ko Gyi:

Moe Aye: How do you, Ko Ko Gyi, feel about the present pressure on the NLD
members to resign, and the plan to hold mass rallies to pressure the NLD,
which we have heard about, and which had been done before?

Ko Ko Gyi: What I understand and accept is that politics is very delicate.
It is a work to win over the masses and their minds. It is a work that is
aimed at winning over both the physical aspect and the mental side of the
people. That is the essence of politics. We had experienced many mass
rallies which were held either to denounce or to support issues prior to
1988 also. Hundreds of thousands of people attended those rallies at
Kyaikkasan Grounds which we ourselves had to attend because each household
had to be present there and the adults in our household sent us – the
children - in their place because they were not free. Those rallies only
showed the quantity - in other words, those were "hard power" only. But,
how many among those people were in support of issues both physically and
mentally or how many of those people represented the "soft power"? That is
most important. What proves my line of argument is that in 1988, almost
all of these more than 100,000 people, including the members of the only
party in existence then, came down to the streets to join the protests.
The fact of the matter is, once when a person gets involved in politics -
whether to bring about political change or development in the nation - he
will not get very far in doing either of that without the wholehearted
support of the people. That is my understanding. Hence, whether one is
forcing others to resign or planning mass rallies, these are all "hard
power" acts or simply materialistic approaches. Our country actually has
strong Buddhist foundations and Buddhism is a faith which gives priority
to the mind. According to our culture, the mind comes first in "soft
power", which is popular these days, if observed from a Buddhist
perspective. The physical and vocal aspects come next. It is, therefore,
very hard for me to understand why materialist ideas - the use of force
and threat and giving priority to a small group - could flourish in a
country like ours, where Buddhist culture is so prevalent. I try to
understand the situation and believe that it could not be the result of
our culture or something that originated from it.

Moe Aye: I see. As reported in the newspapers about people resigning, how
do you view that issue?

Ko Ko Gyi: Personally, the democratic system that I understand is the
establishment of a contract between the elected representatives and the
electorate. When establishing that contract, as I have mentioned before,
there can be no threat or persuasion, and the process must be carried out
voluntarily and the contracting parties must be physically and mentally
sound. These are the factors that legalize a contract. If resignations, or
objections, or expressions of support take place because of threats or
persuasion they cannot be legal because the decisions were not made
voluntarily by the people concerned.

Moe Aye: You may say that the acts are not legal but the other side is
stepping up the rhetoric and even saying at press conferences that the NLD
can be declared unlawful because they have proof, and so forth. Do you
believe that they will declare the party as unlawful and if they do
declare it, what will be future of the country be?

Ko Ko Gyi: The fact is many parties have been abolished, one after
another, even before now. But, if they are to abolish this party which not
only has won 82 per cent of the seats but also represents the people, then
it would also be tantamount to reneging on the pledge made by the military
at the time of the coup to build a multiparty democratic system. At the
same time, we believe that the present leaders of the NLD are people very
devotedly and delicately trying to bring about peaceful change. They have
remained stoic and calm and have stayed on their course despite criticisms
by people who felt frustrated with their approach. The consequences of
destroying such a party would be chaos. I cannot guess to what extent it
would happen but I am concerned about the unpredictable response. Once an
organized approach is destroyed, there is a possibility that we will head
for disorder. That is something I would very seriously like to say.

A similar concern was expressed by another student leader Htay Kywe about
the oppression of the NLD.

Htay Kywe: What would happen if the NLD is abolished? Of course, you can
use force to destroy the NLD but the real problems facing the country
today are political issues and if we are to negate the only option left to
resolve the problems through political means, then the ensuing chaos and
complications may create a situation that will be uncontrollable by
anyone.

____________________________________

May 11, Democratic Voice of Burma
Official robbery: Burma authorities confiscate land near new capital

Local farmers living in central Burma near the country’s new capital
Pyinmana Kyappyay are feeling ‘dissatisfied’ that the authorities
confiscated about 300 acres of farmland from Kyaukket village on E-la,
Kyetpye, Yezin Road last month.

A local resident said a long-distance bus depot and shops for the new
capital are being constructed on the confiscated land. Although the shops
are being sold at around 20 million kyats each, no compensation was
offered to the people whose land was confiscated.

Similarly, the western part of (Ywado) village, located west of Pyinmana,
was also forcefully relocated.

The same local resident said a railway station will be built in the area,
where an artillery unit, a supply unit, and many infantry units are
stationed.

____________________________________

May 12, Khonumthung News
Pagoda being built with funds from Christian community

A Buddhist pagoda is under construction by the town authority in Kalay Myo
with funds collected from the Christian community.

According to reports, Buddhists are building a pagoda in Chikhung hills in
Sagaing division. Construction of the pagoda started since August 2005
following the order of the divisional officer of State Peace and
Development Council (SPDC), Lieutenant Colonel Aung Moo Myint.

The pagoda in Chikhung hills is located about six miles from Kalay Myo of
Sagaing division, upper Burma. The estimated cost of construction is Kyat
600 lakhs, which is to be collected form the Christian community.

The Kalay Myo Township Peace and Development Council (TPDC) Chairman,
Social Development Society Ministry (SDSM) has opposed the move of the
township authority.

The township authority suspended its collection in the town area, as the
opposition from SDSM was rather strong. However, collection of funds for
the construction of the pagoda is still in full swing in the villages.

Report also suggest that the Kalay TPDC's Chairman asked church leaders to
a meeting in the township hall on January 21, 2006 which was attended by
210 church leaders.

Church authorities and Christians were requested again to pay the money
for the construction of the pagoda. The churches leaders opposed the
demand outright and threatened to report the matter to the Central State
Peace and Development Council.

"Matters pertaining to religion should not be through collection but
donation" was the stand of the church leaders.

Another report said that Lt. Colonel Aung Moo Myint issued an order to
obtain permission from the divisional authority for construction of
Christian, Muslim and Hindu shrines. The order was issued on 16 October
2005.

Religions restriction and persecution is often reported from Sagaing
Division. Government restriction and termination of the construction of
EC- Bethel Church, Tahan, Immanuel Baptist Church, Pinlong Baptist Church,
Agape Assembly of God Church in Kalay Myo and Hmunlai Baptist Church of
Hmunlai had been reported over the past years.

____________________________________

May 12, Narinjara News
Man in possession of mobile phone arrested in Maungdaw

A man possessing a mobile phone was arrested by Nasaka, the border
security force, in a village in northern Maungdaw in Arakan state on 11
May for illegally possessing a mobile phone set from Bangladesh.

The arrested was identified as Mr Fawri Islam (25), son of Boshi Ahmad
from Kyar Gaung Toung village in Nasaka Area No(5), Nga Khura.

Mr Islam has been detained at Nasaka outpost No 12 and is likely to be
sued by the Maungdaw district court for possessing a mobile phone without
the permission of the Burmese authorities.

As mobile sets and SIM cards are very expensive and are unavailable to buy
easily anywhere in Burma, many people in Maungdaw Township have been using
mobile phones from neighboring Bangladesh. Mobile phone sets and SIM cards
in Bangladesh are very cheap and everybody can easily buy them throughout
the country.

Burmese authorities, however, do not allow mobile phones from Bangladesh
to be used in Burma and will sometimes seize mobile sets in the area.
However, the authorities do not arrest people in possession of mobile
phones very regularly.

____________________________________
ON THE BORDER

May 11, Democratic Voice of Burma
Burma army orders villagers to do unpaid labour in campaign against the KNU

Burma’s military junta, the State Peace and Development Council (SPDC) has
been forcing villagers in villages in Shwegyin Township, Pegu Division, to
work as corvee labour in launching offensives against the Karen National
Union (KNU) troops on the Thai-Burmese border.

Since three months ago, these villagers and the bullock carts from
Donzayit, Salu Chaung, Kyunchaung, and other villages in Shwegyin Township
have been commandeered into corvee service, said local residents. These
villagers have to volunteer without payment and use their bullock carts to
convey food supplies to the frontline and transport ailing SPDC soldiers
to Shwegyin and military hospitals on their way back.

“The government army has been launching an offensive against the KNU on
the Thai side. In order to send food supplies to the troops, bullock carts
have been commandeered. The carts deliver rations to the frontline,” said
a villager who doesn’t want to be identified. “On their way back, they
have to bring back sick soldiers - ones who have caught malaria - to
Donzayit and
hospitals. It has been quite a while that they have not
commandeered porters and bullock carts, but since some three or four
months ago when the offensives were started against the KNU, they have
resumed the practice.”

Farmers usually earn their living by cutting bamboo, chopping trees, and
tending farms using their own carts during the summer. But they are now in
trouble because the military regime has forced them to contribute labour.

“Villagers in this area find it hard to earn a living,” explained the
villager. “They usually cut bamboos and trees during this season and this
is a time they rely most on their bullock carts and which are now being
commandeered without being paid for the services. The villagers are quite
distressed.”

____________________________________

May 12, Independent Mon News Agency
Village headmen flee fearing capture - Chan Mon

In the grip of a fear psychosis Village Peace and Development Council
(VPDC) members and villagers from a village in Yepyu Township, Tenasserim
Division, are escaping, afraid of being of captured and executed by
Burmese troops in the area.

Nai Soe VPDC Chairman, Nai Aung Lwin, VPDC secretary, and some villagers
from Kyake Thalin village are fleeing to the border after Burmese soldiers
from the Light Infantry Battalion No. 407 tried to arrest them on the
charge that they had a nexus with Mon rebel groups.

“If we do not escape the troops will arrest us and could kill us or
sentence us after severely torturing us,” said Nai Aung Lwin who fled to
the border.

“We cannot go back. The two of us did not dare to go back,” he added.

The soldiers arrested one woman and used her as a hostage because her
husband had supported Nai Chan Done, the leader of the Mon rebel group.

Nai Tun Lay, Nai Hlain, and Nai Blai were arrested. “Nai Tun Lay was
severely tortured,” a villager said.

Most men in the village are fleeing. Only some youths and women are left
in the in the village, a youth said.

According to the village secretary, the crackdown came following
information that Mon rebels had entered the village. But VPDC’ members did
not know about the movement of the rebels and whether they are linked to
villagers.

Mon rebels of the Nai Chan Done group had been moving in the area for a
couple of years and assassinated some military government officers posted
there.

Because the rebel group’s movements were linked to the local people the
military had killed a couple of dozen people in the area in 2004.

____________________________________


May 12, Thai Press Reports
Thailand police warn against holiday gambling in Myanmar

Thai police in the northern border town of Mae Sai have imposed strict
measures to prevent gamblers disguised as tourists from crossing to
Myanmar to gamble in its casinos during a four-day holiday which begins
Thursday.

Pol. Maj. Gen. Jamnong Kaewsiri, Chiang Rai provincial police chief, said
the measures included checking the identity of every passenger in passing
vans belonging to the casinos.

The provincial police chief said tourists crossing to Myanmar, formerly
known as Burma, from Thai side would not be allowed to carry more than
Bt500,000 (more than US$13,000) on their trip.

He said security cameras would be installed to prevent robbery of tourists
who are flooding the area during the next few days.

Gen. Chamnong warned tourists visiting Myanmar to strictly respect law
while visiting the neighbouring country as Thai authorities would not be
able to help them if they commit an offence in Myanmar territory.

At least nine Thai nationals were recently detained by Myanmar police
after they were caught in illegal gambling.

____________________________________
BUSINESS / TRADE

May 12, Financial Express (Bang.) via Narinjara
India, Myanmar encroach Bangladesh territorial waters for HC exploration -
M Azizur Rahman

India and Myanmar have allegedly entered Bangladesh's maritime territory
in the Bay of Bengal and moving fast to initiate hydrocarbon (HC)
exploration.

Both countries have already created a number of blocks and floated
international tenders for awarding those to the potential oil and gas
exploration companies for hydrocarbon exploration.

Sources said in the recently invited sixth round bidding India had shown
19,000 square kilometres with a triangular shape in its Eastern part under
its possession, while Myanmar had shown 18,000 square kilometres with the
same shape to its Western side drawing a line up to Andaman squeezing the
limit of Bangladesh's territorial waters.

Beside the block 21 of Bangladesh, India has mapped out a line up to
Andaman incorporating under Bangladesh territorial waters. The line
intruded deep into Bangladesh sea area, sources said. Similarly, the
sources said, the Myanmar line entered inside Bangladesh sea area beside
block 18. It also grabbed a vast offshore area of Bangladesh.

None of the countries had talks with Bangladesh before initiating their
drive for hydrocarbon exploration inside Bangladesh territory, a senior
official of the Energy and Mineral Resources Division (EMRD) told the FE.

"I will discuss the issue with the Foreign Ministry to raise Bangladesh's
point," EMRD Adviser Mahmudur Rahman told the FE.

He said to ensure Bangladesh's right on the huge areas of undemarcated
locations in the Bay of Bengal there is no option to initiate talks with
both the countries.

Sources said the recent huge success of both India and Myanmar in offshore
exploration has prompted them to be desperate on holding possessions of
the non-delineated areas in the deep sea. In an offshore block Myanmar
recently discovered gas reserves of around five to six trillion cubic feet
(TCF).

India's Oil and Natural Gas Corporation Ltd (ONGC) and GAIL India Ltd hold
30 per cent stakes of the gas field, Myanmar holds 30 per cent stake and
the remaining 40 per cent goes to Korean Daewoo company.

India also discovered substantial reserves of gas in the offshore blocks
at shallow depths. Commenting on Bangladesh's position in deep-sea
hydrocarbon exploration, EMRD adviser said the government has taken
initiatives afresh to go for the third round bidding without conducting
seismic survey.

The state-owned Petrobangla proposed to create 20 new blocks in the
deep-sea for oil and gas exploration, said a Petrobangla official.

The EMRD is yet to approve the draft blocks.

The EMRD, however, Wednesday asked Petrobangla to initiate the process of
the third round bidding soon. The international maritime boundary among
Bangladesh, India and Myanmar is yet to be drawn up, said sources.

____________________________________

May 12, Xinhua General News Service
India, Myanmar vow to enhance bilateral trade

India and Myanmar have agreed to expand and diversify bilateral trade to
one billion U.S. dollars by 2006, the Indian Ministry of Commerce and
Industry said in a statement Friday.

The second meeting of the India-Myanmar Joint Trade Committee (JTC)
concluded here Thursday night and it was co-chaired by Indian Minister of
Commerce and Industry Kamal Nath and Myanmar Commerce Minister Tin Naing
Thein.

India is ranked as the second most important market for Myanmar exports
and the seventh most important source of its imports in the fiscal year of
2004-05, the statement said.

Although bilateral trade has significantly increased to over 500 million
U.S. dollars in 2004-05, it was still short of the target set by the two
sides at the first meeting of the JTC held in Yangon in 2003, said Nath in
the statement.

"We need to study the obstacles that stand in the way of bilateral trade,
whether they relate to banking, transport or other infrastructure related
problems," Nath said.

The two countries are working together in the areas of agriculture,
telecommunications, oil and gas sectors and increasing
business-to-business interactions in the private sector, he noted.

India is seeking to open another post, the Pangsau Pass, along the border
with Myanmar as an additional facility for border trade.

"Our bilateral border trade agreement inked in 1994 provides framework
facilities by which trade is being carried out through the designated
border points of Moreh-Tamu and now Zowkhathar-Rhi since January 2004. We
now hope to add another border trading point at Pangsau Pass," Nath said.

The Indian government also urged to broaden the commodities basket from
the present limited list of 22 commodities.

The two sides emphasized the natural complementarities of the two
economies and noted that after Myanmar's entry into the ASEAN and
BIMST-EC, new avenues had opened for greater cooperation on a bilateral
and regional/multilateral basis, the statement said.

____________________________________

May 11, Democracy Voice Burma via BBC Worldwide Monitoring
Burma: Paper prices rise pushes up costs of publications

Prices of newsprint have soared exorbitantly in Burma and some publishers
have put their businesses on hold.

Owners of journals who have obtained publishing licenses from the Ministry
of Information, however, have continued to publish their journals for fear
that their licenses may be revoked, said an individual in the publishing
circles who did not wish to be identified.

This individual also said prices of the publications have also risen by
about 50 per cent because of the rising paper prices.

____________________________________

May 12, Associated Press
Total CEO Desmarest names exploration chief Margerie to succeed him in 2007

Total SA boss Thierry Desmarest named his head of production and
exploration, Christophe de Margerie, to succeed him as chief executive
when he steps down in 2007, in an announcement to the company's annual
shareholder meeting in Paris.

Margerie has run the company's largest division since 1999 and was seen as
a likely candidate to take over from Desmarest, who will stay on as
chairman after he hands over the CEO job next year.

"Christophe de Margerie has demonstrated all the qualities of a great
leader," said Desmarest, 60, who has headed Total since 1995.

Margerie, 54, has joined Total in 1974 soon after graduating from Ecole
Superieure de Commerce de Paris, one of France's elite business academies.

He is set to take the reins at a time of record oil prices and profits,
but also considerable uncertainty as oil-importing countries respond to
higher prices and geopolitical supply risks by reviewing their energy
policies.

Like other oil majors, Total has been affected by recent Venezuelan and
Bolivian moves to nationalize exploration and production projects in which
it has a share.

The company also faces pressure from human rights groups for its
investment in Myanmar formally known as Burma where campaigners have
accused it of paying military officials from the country's repressive
regime to guard its oil installations.

In 2005, Total reached out of court settlements with four plaintiffs who
claimed to have been victims of forced labor as part of a pipeline project
in which Total was involved.

____________________________________
DRUGS

May 12, Shan Herald Agency for News
Shan-Kayah border increases production

Poppy cultivation along the border areas between Burma's Shan and Kayah
states had sharply risen during the 2005-2006 season, according to a
Karenni survey team returning to the Thai-Burma border following its
second visit to the said areas:

Farmers quoted the Shan Nationalities People Liberation Organization
(SNPLO), a ceasefire group active in the eastern part of the areas, saying
this latest season was to be their last fling with the making of opium,
from which heroin is derived, says a draft report by Karenni Anti-Drug
Action Committee (KADAC), that has recently completed a four and a half
month tour to the Shan-Kayah border areas. "As a result, we saw more poppy
fields this year than we did last year," Dominique, a KADAC team member,
told S.H.A.N.

His claim of increased input by the local poppy farmers has been supported
by other independent sources, although they are unable to confirm the
following figures presented by the group:

2003-2004       2,500 acres
2004-2005       2,300 acres *(due to restrictions in some areas)
2005-2006       3,500 acres

There are 5 townships on the Shan-Kayah border:

Shan State
Pekhon (Faikhun)
Hsihseng
Mawkmai

Kayah State (Karenni State)
Loikaw
Shadaw

These areas are under the sway of the SNPLO in the east and its rival PaO
National Organization (PNO), another ceasefire group, in the west as none
of the Karenni-based groups are active there, according to KADAC.

Farmers say they pay taxes to "all those who ask for them":
SNPLO 			30 Kyat (0.5 kg) of opium per household
PNO 				100,000 kyat ($100) per household
Township Council (Hsihseng) 	30,000 kyat ($30) per household
Local Military units (Light Infantry Battalions 423 and 424 in Hsihseng)
	60,000 kyat ($60) per acre

*The exchange rate was $1 = 1,000 kyat before April. Tax rates for other
townships are not available - Editor.

Opium prices have also steadily increased:
2003-2004       250,000 Kyat ($250) per viss (*1.6 kg)
2004-2005       300,000 Kyat - 350,000 Kyat ($300-350) per viss
2005-2006       400,000 - 450,000 Kyat ($400-450) per viss

While some of farmers sold their produce at Nawnghtao in Hsihseng
township, where the SNPLO is headquartered, most of them say "the buyers
from Taunggyi came to us". All of them represented the ethnic Chinese
Laobans (financiers) from Taunggyi. "Each of them has to buy tokens from
the ceasefire groups, ranging from 50,000 Kyat tokens to 1.5 million Kyat
tokens, depending on how much they want to buy from us," a farmer told
KADAC.

Each household does 1-5 acres and acquires 2-3 viss ($3-5 kg) per acre.
Despite the seemingly high returns, farmers say it is just enough to feed
them the whole year. A 56-year old woman from Loikaw township told KADAC:

"The soil is not fit for paddy. Even if we grow it, the yield is not
sufficient to get us through the year, as we also have to pay tax and feed
the soldiers. School expenses for our children are also high. Besides, we
are also required to contribute free labor (Lok-ar-pay) to the military.
To top all these, our village has already been moved out (by the Burma
Army) three times now. What do you expect us to live on?"

Farmers say even Burmese soldiers and their families were growing poppies
this season, due to hardships faced by the rank and file. "Only officers
enjoy being in the Army," a local source told S.H.A.N.

KADAC, formed by the Karenni (Kayah) activists, visited the area for the
first time between April-July last year. (Opium prices increase 100 fold
in Kayah, 22 August 2005)

Kayah or Karenni, the smallest state in Burma (4,500 square miles),
borders with Thailand's Maehongson in the east, Shan State in the north
and Karen State in the west and south.

____________________________________
REGIONAL

May 12, Agence France Presse
Human trafficking summit hears prosecutions have risen

Human trafficking remains a problem in South East Asia and increasing
numbers of victims are being identified, officials said Friday, after a
three-day summit in Phnom Penh.

But the number of trafficking prosecutions has risen, and there is no
indication that the problem is increasing, said Dr Susu Thatun, of the
Coordinated Mekong Ministerial Initiative Against Trafficking.

"We have begun to notice ... an increase in the number of victims we have
been able to identify," Thatun said.

"That ... does not indicate that trafficking is on the rise. On the other
hand, it might indicate that law enforcement officials, civil society and
the NGOs are now more alert to the issue," she said.

Thatun was speaking as more than 30 officials from Cambodia, China, Laos,
Myanmar, Thailand and Vietnam ended a review their three-year plan to
combat trafficking in the region.

The six countries, which adopted the plan last year, also outlined new
ways to combat trafficking over the next decade.

"We need people to understand the consequences of trafficking, to know the
tricks of the traffickers," said Ing Kantha Phavi, Cambodian minister of
women's affairs.

Thatun said that cooperation between individual countries had increased
over the past year, and that governments were more readily recognising
trafficking as a problem.

"On the national level ... there are efforts to ensure the legal
environment is favourable," she said.

Widespread forms of trafficking include the smuggling of people from
Cambodia, China, Laos and Myanmar into Thailand for work, and the
trafficking of Cambodian children to Thailand and Vietnam to beg.

Trafficking of boys for adoption and of women and girls for forced
marriage and the sex trade is also common, the UN Inter-Agency Project on
human trafficking said.