BurmaNet News, August 5-7, 2006

[Editor]

August 5-7, 2006 Issue # 3019

INSIDE BURMA
DVB: Peguan lawyer Aye Myint meets 8888 Generation Students
Irrawaddy: Shan renegade group breaks with government
Xinhua: Myanmar exposes 748 human trafficking cases in past four years
Mizzima: Burma home to second highest women prisoners: report

BUSINESS / TRADE
AFP: New oil and gas deposits discovered in Myanmar: report
Xinhua: Myanmar to lease land to foreigners for developing industrial zones

ASEAN
The Nation: Asean urged to engage global community on Burma

REGIONAL
AP: Philippines' top diplomat to press for rapid democratic reforms during
Myanmar visit
AFP: Thai military chief visits Myanmar
The Nation: Group slams Surakiart for inaction over Burma

OPINION / OTHER
The Nation: Asean must take action on the rape of freedom in Burma
The Nation: Thaksin's Burma trip a disgrace
The Nation: Secret of Thaksin's Burma trip might be in the skies - Sopon
Onkgara
Irrawaddy: Behind the customs corruption - Nyein Chan Aye

____________________________________
INSIDE BURMA

August 6, Democratic Voice of Burma
Peguan lawyer Aye Myint meets 8888 Generation Students

Lawyer Aye Myint from Pegu in lower central Burma who was imprisoned for
reporting the woes of local farmers to the International Labour
Organisation (ILO), met with renowned 88 Generation Students led by Min Ko
Naing, on Thursday.

They discussed the situation of aggrieved farmers who have been bullied by
local authorities, and they surmised that the farmers could come out onto
the streets to protest if there is no urgent political dialogue.

“I am very happy (to see the student leaders) as it was unexpected. After
Daw Suu (Aung San Suu Kyi), they are the second (most important and
respected people) for me. Ma (Miss) Lay Lay Mon, Ko Soe Tun, Ko Ko Gyi,
six in all came to encourage me,” Aye Myint told DVB. “They came to ask my
health; they also partly came to pay obeisance with respect to me.”

He discussed current political situation and the condition of farmers with
the student leaders, and he said he also met with the family members of
two local youths, Aung Than and Zeya Aung who were imprisoned for writing
and distributing a political poem.
Aye Myint said that the local authorities didn’t interfere with the
meeting as a local intelligence officer named Corporal Kyaw Naing later
came to see and notify him that they were left alone and kept at a
distance for fear of being accused of harassing them. He said that local
residents didn’t know in advance that renowned students were going to see
him but as soon as the news was out the whole of the town became excited.

“They (students) kept their trip a secret. Even that, as soon as they
(local residents) heard that, they became excited. Don’t think the people
of Burma are afraid. They are enduring with grinded teeth. As soon as
there is an appointed day, the people of Burma have more trust in the
students. They don’t believe in political parties. They have faith in
students who break through the Burmese politics. As soon as the students
snap their fingers (and) give the signal, (the people) are in a situation
that they are ready. At the moment, the farmers who make up the majority
(of the population) of Burma have been wanting to come out onto the
streets.”

____________________________________

August 7, Irrawaddy
Shan renegade group breaks with government - Khun Sam

An armed ethnic Shan rebel faction which recently defected to the military
government is reported to have reneged on the deal and headed back to the
jungle.

Nam Khur Hsen, spokeswoman for the Shan State Army-South, told The
Irrawaddy on Monday that the renegade SSA-S Brigade 758 had left its base
in northeastern Shan State. “Their whereabouts remain unknown but they
have left for the jungle recently,” she said. The SSA-S would welcome
their return to the fold, she added.

Brigade 758 commander Col Moengzuen, commander of Brigade 758 of SSA-S,
and more than 800 of his men crossed to the government side in early July
with a large cache of arms, including heavy weapons. The state-run media
said they deserted the SSA-S “after realizing the national development
endeavors and sincerity of the government.” The group’s weapons were later
returned to them and they were promised land and 30 million kyat (about US
$22,500).

Moengzeun, a former aide of drug lord Khun Sa, fell foul of SSA-S leaders
after supporting the declaration of Shan independence by the Shan
government-in-exile in 2005.

Citing sources in the area, Nam Khur Hsen said Moengzuen broke with the
regime after the government failed to grant him the land that he demanded
and after the Burmese military urged the group to fight the SSA-S. She
said that some of Moengzuen’s men had been arrested by the Burmese
military following the departure of the rebel leader in early August.

After Moengzuen and his men deserted the SSA-S the colonel gave a press
conference in Le Char, Shan State on July 17, attended by some foreign
diplomats, in which he accused the SSA-S with atrocities and other crimes.
He and his men had gone over to the government side because they did not
want to be involved in SSA-S wrongdoings, he said.

In another development on Monday, the state-run news paper Myanma Ahlin
accused the SSA-S of planting a bomb in the Shan border town of Tachilek,
opposite Mae Sai in northern Thailand. Shan rebels dismissed the claim.

____________________________________

August 5, Xinhua General News Service
Myanmar exposes 748 human trafficking cases in past four years

Yangon: Myanmar authorities have exposed 748 human trafficking cases since
the work committee for human trafficking prevention was formed in July
2002 to June 2006, according to Saturday's official newspaper The New
Light of Myanmar.

During the period, subordinate committees at different levels in 14 states
and divisions were able to expose and arrest 1,484 persons -- 815 males
and 669 females, and also rescued in time 3, 694 persons -- 1,904 males
and 1,790 females, the paper disclosed.

A reception camp in Myawady at the Myanmar-Thai border to provide
assistance to the victims of human trafficking was opened in February 2002
and it had received 20,072 persons facing troubles abroad and sent them
back to their families, the paper said.

Moreover, in cooperation with a United Nations body to curb human
trafficking in the Greater Mekong Region -- UNIAP, Save the Children
(SC)(UK) and World Vision, the government welcomed and sent back the 303
victims of human trafficking to their homes, it added.

After attending the World Women's Conference held in Beijing in 1995,
Myanmar launched its drive to combat human trafficking. The Myanmar
National Committee for Women's Affairs (MNCWA) was formed in July 1996
which laid down a policy on the development and life security of women and
has been implementing it since then.

Myanmar promulgated the National Plan of Action in 1997, with the aim of
fighting the problem of trafficking in persons in various aspects. The
plan consists of prevention, prosecution, protection, rehabilitation and
reintegration, and is being implemented.

Myanmar became a signatory to the Asia Regional Cooperation to Prevent
People Trafficking (ARCPPT) project comprising Myanmar, Thailand, Cambodia
and Laos in December 2003.

In September 2004, Myanmar organized the Transnational Crime Department
with 99 members to enhance international cooperation.

Myanmar hosted in Yangon in October 2004 a ministerial meeting at which
ministers of six countries -- China, Cambodia, Laos, Myanmar, Thailand and
Vietnam -- in the Mekong region signed an MoU to collectively combat
trafficking in persons.

Myanmar also became a signatory to the Convention Against Transnational
Organized Crime (CTOC) and the Protocol to Prevent, Suppress and Punish
Trafficking in Persons, Especially Women and Children in 2004
respectively.

_____________________________________

August 7, Mizzima News
Burma home to second highest women prisoners: report

The International Centre for Prison Studies of King's College London in a
new report on "World female imprisonment list" released today, said Burma
has the second highest percentage of women prisoners in the world.

While in general most prisons in the world have two to nine percent women
prisoners, Burma with 18 percent women prisoners is the second highest
after Hong Kong, China, which has 22 percent women prisoners, the report
said.

The report, compiled on the basis of studies on 187 prison systems in
independent countries and dependent territories, reveals that "more than
half a million women and girls are held in penal institutions, either as
pre-trial (remand prisoners) or having been convicted and sentenced."

According to the report, which obtained most of its data from the national
prison administrations of the countries studied, Burma has 5,842 woman
prisoners. The grading was determined on the basis of the total prison
population of the country.

Following Burma is Thailand with 17 percent women prisoners.

____________________________________
BUSINESS / TRADE

August 7, Agence France Presse
New oil and gas deposits discovered in Myanmar: report

Bangkok: Signs of new oil and gas deposits have been discovered off
Myanmar's coast, the Myanmar Times newspaper reported Monday, raising the
prospect of further foreign investment in the military-run country.

The newspaper quoted an official from the Myanmar Oil and Gas Enterprise
(MOGE), who said that geologists from France and Myanmar had uncovered
evidence of hydrocarbon deposits in deep water blocks off the western
Arakan State.

"The survey area covered 2,500 square kilometres (965 square miles) and we
made 15 multi-channel seismic surveys," Khin Maung Kyi, MOGE chief
geologist, said of the survey sponsored by Frances Total Oil Company.

"We discovered thick sedimentary rock in deep water regions and found
channels and basin floor fans, which are evidence of existing oil and gas
reserves," he told the semi-official Myanmar Times.

Khin Maung Kyi said he hoped the surveys findings would attract foreign
investment.

Myanmar is under western sanctions over its failure to make democratic
reforms and to pressure the junta to release detained pro-democracy leader
Aung San Suu Kyi.

Despite the international condemnation and growing frustration at the
regime among other countries in Southeast Asia, Myanmar's neighbors have
been jostling to take advantage of Myanmar's abundant natural resources.

Natural gas from Myanmar currently makes up about 20 percent of Thailand's
supply, and existing untapped gas reserves offshore in Arakan State have
provoked a fierce bidding war between India, China and Thailand.

Khin Maung Kyi said that results from the new Arakan State survey would be
released by the French team in about six months.

The aim of the survey was initially to examine the movement of tectonic
plates, Khin Maung Kyi said. The 33 geologists from College de France and
five from Myanmar found no cause for concern in the plates' movements.

____________________________________

August 5, Xinhua General News Service
Myanmar to lease land to foreigners for developing industrial zones

Yangon: Myanmar is deliberating to lease land to foreigners for the
development of three proposed industrial zones to be jointly implemented
by Myanmar and Thailand to mainly attract foreign investment into the
projects, the local Khit Myanmar reported on Saturday.

The three proposed industrial zones, located in Myawaddy and Hpa-an in
southeastern Kayin state and Mawlamyine in southern Mon state, constitute
parts of an economic cooperation strategy (ECS) program agreed upon at a
summit of Cambodia, Laos, Myanmar and Thailand held in Myanmar in Nov.
2003.

The period of the land lease is designated as being a minimum of 75 years,
the release said, adding that levying of profit tax will be relaxed for
re-investment with the profit earned annually.

The three industrial zone projects will start in 2007, the released
disclosed.

The Myawaddy zone covers an area of 173 hectares, while the Mawlamyine
zone 124 hectares and Pha-an zone 178 hectares, according to the release.

The feasibility study by Thailand on the establishment of the three
industrial zones has reportedly been finalized and the finding on the
feasibility has been presented to the Myanmar side for deliberation.

Under the Myanmar-Thai cooperation, Thai factories are planned to move to
the zones and both countries are expected to benefit from the
establishment economically and socially.

The ECS provides for cooperation in five strategic areas covering
agriculture, industry, trade and investment, transport, tourist and human
resources development.

Meanwhile, an exceptional industrial zone -- the Thilawa Special
Industrial Zone in Yangon's Thanlyin township, which is the prospective
first full foreign investment zone of its kind, is also being planned and
a law will be introduced soon to govern the running of the zone.

There has been 19 industrial zones across Myanmar and small private
industrial enterprises are dominating these zones, leading in the
sustainable development of the country's industrial sector.

____________________________________
ASEAN

August 7, The Nation
Asean urged to engage global community on Burma - Subhatra Bhumiprabhas &
Pravit Rojanaphruk

Burma's problems should be treated not just as a regional issue but an
international one, with a unified stance towards democratisation of the
junta-ruled country, a former top diplomat said yesterday.

Suraphong Jayanama, former ambassador and spokesman of the Ministry of
Foreign Affairs, said the international community should take a more
proactive stance towards gross human rights violations in Burma. However,
Asean should bear the main responsibility as it had accepted Burma into
its fold.

"It must push the issue to the Security Council," Suraphong told a
symposium organised by the Thai Action Committee for Democracy in Burma
(TACDB) to commemorate the 18th anniversary of the People's Uprising in
Burma on August 8, 1988.

Suraphong said Asean should come up with a common stance towards Burma.
However, because a number of Asean member states are not truly democratic
themselves, they tended to be reluctant to interfere for fear that
eventually they too will be pulled up for lack of genuine democracy.

Problems such as gross human rights violations, disease, migrant labour,
drugs and environmental exploitation in Burma have started affecting its
immediate neighbours, especially Thailand, Suraphong said.

"In the past, Asean managed to hang on by sticking to the Asean way of
saving face, which is nothing more than a time-buying tactic for Burma,"
Suraphong said, adding that the issue of human security should supersede
the traditional notion of national security.

Suraphong said he had lost all hope of action from the Thaksin Shinawatra
administration. "This government has too much interest [in Burma] to
engage in anything constructive," he said.

Outgoing senator Jon Ungpakorn, a Thai representative at the Asean
Inter-Parliamentary Myanmar Caucus, said the junta leaders could be tried
for crimes against humanity in the International Court of Law like former
Yugoslavian leaders and that sufficient evidence existed to support the
charges.

Jon listed forced labour, state-induced violence and systemic rape of
civilian women by the military among the crimes committed by the junta. He
blamed the lack of a common stance among the international community for
the problems in Burma continuing for so long.

Jon said he was placing his hopes on the next government, not Thaksin's,
and on the incoming Senate.

The event was attended by about 200 Burmese in exile, who laid white roses
and sang songs. Sann Aung, representing the National Coalition Government
of the Union of Burma (NCGUB), said change would have to come from both
within and outside Burma. He said the struggle inside Burma was still on
as dissidents continued to be prosecuted.

____________________________________
REGIONAL

August 7, Associated Press
Philippines' top diplomat to press for rapid democratic reforms during
Myanmar visit - Jim Gomez

Manila: Philippine Foreign Secretary Alberto Romulo said Monday he would
press Myanmar to move rapidly toward democracy during a visit this week to
the military-ruled Southeast Asian nation.

Romulo said he would meet Myanmar's ruling junta during a visit to the
reclusive nation from Thursday to Saturday. It was not clear if he would
be allowed to meet detained pro-democracy advocate Aung San Suu Kyi, whose
freedom has been demanded by the international community.

Romulo has said he would not use a meeting with Nobel laureate Suu Kyi as
a condition for accepting an invitation by the junta to visit Myanmar.

Asked what he would discuss with the junta leaders, Romulo replied: "We
have been consistent with the roadmap (to) democracy," referring to a
package of democratic reforms that the junta has pledged to work on but
which critics have criticized as being slow in coming.

Romulo is the latest official from the Association of Southeast Asian
Nations to visit Myanmar, also called Burma. ASEAN is a trading bloc that
includes Myanmar, the Philippines and eight other countries.

The Philippines took over ASEAN's rotating chairmanship from Malaysia last
month but Romulo stressed he was visiting as a Philippine envoy.

Myanmar has become a source of embarrassment to ASEAN, largely because the
country's government has failed to fulfill promises to restore democracy
and free political prisoners, including Suu Kyi. ASEAN foreign ministers
last month pressed Myanmar to show "tangible progress" on democratic
reforms and sought the release of political detainees during their annual
summit in Malaysia.

Thai Prime Minister Thaksin Shinawatra, accompanied by his foreign
minister Kantathi Suphamongkhon, reiterated those concerns when they met
junta leaders in Myanmar last week but the military leaders did not give
any indication whether they would release Suu Kyi.

"Let's hope that they will release her. We're keeping our fingers crossed
because we have been waiting for this for a long time," Romulo told
reporters.

Suu Kyi, 60, has spent nearly 11 of the last 17 years in detention, mostly
under house arrest. She was most recently taken into custody in May 2003,
after a mob supporting the junta attacked her motorcade.

Malaysian Foreign Minister Syed Hamid Albar went on a fact-finding visit
to Myanmar last March as an ASEAN envoy, but he was not allowed to meet
Suu Kyi and other members of her National League for Democracy party.

Myanmar has been under military rule since 1962, and the current crop of
generals took power in 1988. They called elections in 1990 but refused to
recognize the results, which gave a resounding victory to Suu Kyi's party.

ASEAN members are Brunei, Cambodia, Indonesia, Laos, Malaysia, the
Philippines, Singapore, Thailand, Vietnam and Myanmar.

____________________________________

August 7, Agence France Presse
Thai military chief visits Myanmar

Thailand's military chief left Monday for a three-day visit to neighboring
military-ruled Myanmar, the second trip there by top Thai officials in
less than a week.

Supreme Commander General Ruangroj Mahasaranon said his visit was to
discuss security matters between the two countries, which share a 1,800
kilometer (1,100 mile) border ridden with fighting between Myanmar and
ethnic rebels.

It follows a surprise visit by Thai Prime Minister Thaksin Shinawatra last
Wednesday, when he held a rare meeting with military supremo Senior
General Than Shwe.

"This trip was planned before Thaksin's visit to Myanmar," Ruangroj told
reporters before leaving Bangkok.

"The objectives of the visit are to maintain good relations between the
two countries. I will also meet Myanmar officials overseeing activities
along the border," Ruangroj said.

"We will discuss drug smuggling, illegal workers (from Myanmar) and better
demarcation of the border, which is an area where poor progress has been
made in bilateral talks so far," he added.

Officials in Myanmar's information ministry said Ruangroj arrived around
mid-day at the junta's new administrative capital built in the jungles
outside the central town of Pyinmana.

Thai officials said he would meet Than Shwe and the junta's number two,
Vice Senior General Maung Aye, before heading to Yangon.

In Yangon, he was due to visit the Shwedagon Pagoda, which is an important
pilgrimage site for Thai Buddhists.

Last week Thaksin became the first foreign leader to see the new capital
when he met Than Shwe there.

The Thai side said political and economic issues were discussed during the
trip, during which Thaksin said he askeed the junta leader to free
detained democracy leader Aung San Suu Kyi.

Thailand is also trying to boost its economic ties with Myanmar, hoping to
beat out China and India with bids to tap new offshore petroleum reserves.

The top-level visits come amid mounting international pressure on Myanmar
to make democratic reforms and to release Aung San Suu Kyi, who has spent
more than 10 years under house arrest.

Philippine Foreign Secretary Alberto Romulo announced Monday that he would
also visit Myanmar this week to press for democratic reforms.

His country took over the rotating chair of the Association of Southeast
Asian Nations in late July, after a regional meeting where Myanmar's
failure to move toward democracy topped the agenda.

ASEAN's policy of "constructive engagement" with Myanmar has led to
friction with key trading partners the United States and the European
Union, which impose sanctions on the state.

Myanmar's junta bloodily crushed pro-democracy demonstrations in 1988 and
two years later rejected the results of national elections won by Aung San
Suu Kyi's National League for Democracy.

____________________________________

August 5, The Nation
Group slams Surakiart for inaction over Burma

The Asian Human Rights Commission (AHRC) has criticised caretaker Deputy
Prime Minister Surakiart Sathirathai, Thailand's candidate to be the next
United Nations secretary-general, for failing to influence Burma's
military regime.

In a statement issued yesterday, the Hong Kong-based group said Surakiart
"had done nothing to advance political and social change in Burma, either
as deputy prime minister or foreign minister".

It described the Thai government's relations with Burma as "negligent and
business-oriented".

The AHRC said that although Surakiart had had five years in which to
influence Burma's military regime, he had never taken advantage of his
position.

On June 26, Surakiart told journalists in Kuala Lumpur during an annual
meeting of Asean ministers that he would work for democratic reform in
Burma, as well as the release of pro-democracy leader Aung San Suu Kyi, if
elected as the next UN chief.

The AHRC also criticised the recent statement by caretaker Prime Minister
Thaksin Shinawatra about the need for Burma to release Suu Kyi, saying it
was a fa็ade to enhance Surakiart's bid because the "Thai government
has no record of support for human rights in Burma".

Basil Fernando, AHRC executive director, said: "What does Surakiart mean
by saying that if he becomes secretary-general he will start working for
democracy in Burma?

"In effect, he is saying that if he can quit the good position he is in to
work for change in Burma from Thailand and get a job in New York, only
then will he be able to do something.

"This is sheer nonsense."

____________________________________
OPINION / OTHER

August 7, The Nation
Asean must take action on the rape of freedom in Burma - Nursyahbani
Katjasungkana, Eva K Sundari & Teresa Kok Suh Sim

Gender-based sexual violence obstructs peace and development, particularly
when it is a weapon used by military dictatorships against their own
peoples. Burma is now permeated by such state-sponsored violence.

Systematic sexual violence became visible in Burma when the Shan Women's
Action Network (SWAN) and the Shan Human Rights Foundation (SHRF)
published "Licence to Rape", which documents 625 cases of rape committed
by the military in eastern Burma between 1996 and 2001. The report noted
that nobody had been prosecuted.

Burma is suffering the impact of decades of civil war. Civilians have
become the main victims of a strategy aimed at undermining the guerrillas,
which has resulted in forced labour, the use of human minesweepers, and
massive relocations of entire villages. There are now an estimated 600,000
to one million internal refugees.

SWAN and SHRF argue that rape is used as a weapon in the Burmese
military's war against ethnic minorities.

 Women and girls are particularly vulnerable - owing to gender as well as
ethnicity - to a horrific practice whose aim is to demonstrate the army's
power and punish those who confront it. When the army enters a village,
chaos erupts. Villagers are killed or ordered to pack their belongings
and leave. Several of the reported rapes took place under such
conditions, or when women are taken for forced labour.

Many victims have fled Burma. SWAN and SHRF learned of many cases from
women who arrived in Thailand. In February 2006, we visited a refugee camp
on the Thai-Burma border and learned first hand of war and abuse.

"Licence to Rape" has attracted wide attention in Southeast Asia. Kraisak
Choonhavan, chairman of the Thai Senate's Foreign Relations Committee and
vice chairperson of the Asean Inter-Parliamentary Burma Caucus, called for
an investigation by the United Nations. So did the UN General Assembly and
the UN Human Rights Commission.

Rape brings stigma, shame, and reluctance on the part of victims to speak
out about what happened to them. But an increasing number of women and
girls from Burma have begun to tell of their experiences of rape and other
forms of sexual violence in the country's war-torn areas.

Army deserters confirm that rapes have occurred. And the UN Special
Rapporteur on violence against women has published material that
corroborates information in Licence to Rape and adds numerous new cases
from Burma.

Nevertheless, four years on, a UN investigation has yet to take place,
because the military junta refuses to grant the UN access to the country.
Incidents of rape continue to be reported, and the Burmese military surely
must know what is happening. But the junta engages in Orwellian
doublethink. It has rejected the reports, instead launching its own
investigations whose conduct and staffing leave no room for confidence in
their credibility.

National governments and the international community have an obligation to
protect women and children against abuse. In 2000, the UN Security Council
recognised that gender-based violence thwarts security and adopted
Resolution 1325, which calls on parties in conflict to respect the rights
of women and children, and particularly to prevent gender-based violence.

In 2004, the governments of Asean vowed to end the impunity states like
Burma have enjoyed and signed the Declaration to Eliminate Violence
Against Women in the Asean Region.

Burma is failing miserably to live up to the standards of decency that the
Southeast Asian region is setting for itself. It has ratified the UN
Convention to Eliminate Discrimination Against Women and the UN Convention
on the Rights of the Child. Moreover, a national committee exists for the
advancement of women.

But such measures are of no use when the military remains firmly in
control, the rule of law is absent, and the government refuses to admit to
the systematic sexual violence committed by its soldiers as they terrorise
the population.

Asean cannot afford to stand by idly. Neither can the international
community. Such abuse of power is inadmissible, and we expect Asean to
address the military's use of rape in the conflict in Burma. We urge the
UN Security Council to raise the issue. All of Burma's people deserve
security, and refugee women and girls who have experienced gender-based
violence need the world's solidarity and support.

Nursyahbani Katjasungkana and Eva K Sundari are MPs in Indonesia. Teresa
Kok Suh Sim is an MP in Malaysia.

____________________________________

August 5, The Nation
Thaksin's Burma trip a disgrace

PM's visit flies in the face of national interests and undoes Asean's
progress in pushing the junta for reforms

By visiting Burma on Wednesday, caretaker Prime Minister Thaksin
Shinawatra did a huge disservice to Thailand. He should be ashamed and
publicly condemned for placing his personal interests ahead of those of
the Kingdom. He also dragged other senior officials along with him who had
no prior knowledge of the visit. For instance, the trip forced Army chief
General Sonthi Boonyaratglin to postpone his visit to the deep South,
where a flare-up of violence the day before required his undivided
attention.

The saddest aspect of his visit, however, was that at a time when the
international community and Asean were finally showing solidarity and
jointly urging the Burmese junta to pursue political reforms and release
opposition leader Aung San Suu Kyi, Thaksin suddenly decided he wanted to
pay his respects to the ailing General Than Shwe.

Judging from the secrecy and evasive comments afterwards, it was clear the
visit had been hurriedly arranged to satisfy the egos of both leaders and
their personal agendas.

Certainly Thaksin felt the urge to show he understood the desires of the
junta and was ready to accommodate them. Indeed, Thaksin has been trying
to reconnect with the new regime ever since the capital was moved to
Pyinmana. The disgraced Khin Nyunt used to be Thaksin's point man.

The trip will have far-reaching repercussions. On the international front,
Thailand has lost its moral authority, because the manner in which the
visit was carried out did more to legitimise the world's most condemned
regime rather than shed light on the appalling human-rights situation
there.

Just last week, Deputy PM Surakiart Sathirathai, the Thai candidate for UN
secretary-general, was telling the world how he would push for Suu Kyi's
release and political reforms in that oppressed nation were he elected. If
it served no other purpose, Thaksin's visit at least put the final nail in
Surakiart's coffin as far as his bid for the UN's top job is concerned.

Calling the visit a success was just as pretentious as when Thailand
hosted the "Bangkok Process", an effort to mediate between Burma and the
rest of the world.

For Thailand's international standing, Thaksin's visit was the kiss of
death, yet the government has the audacity to boast he was the first world
leader allowed to visit the reclusive Than Shwe in the new capital.

Thaksin's decision to break ranks with the rest of the civilised world
amid a chorus of voices from fellow Asean members, the UN, the US and
Europe calling for Burma to change its course is beyond anyone's
comprehension.

Did he actually think he could broker a deal between Burma and the rest of
the world knowing that complete trust between our two countries was still
nowhere in sight?

When Foreign Minister Kantathi Suphamongkhon met with US Secretary of
State Condoleezza Rice recently, Thailand made a commitment that it would
not obstruct any effort to put Burma on the agenda. With Thaksin shaking
the hands of the junta, that commitment has collapsed.

Even in the waning hours of his caretaker administration, Thaksin wants to
flaunt his defiance against one and all. It is in his nature to do that.
His trip has also jeopardised Asean's common position on Burma that was
reached during last month's meeting in Kuala Lumpur.

The decision to make this visit was an important and destructive one for
Thailand, because it showed that as long as Thaksin is in power, he will
do anything he can to undermine his Asean colleagues on Burma for his own
interests. He wanted to show he was a trusted friend of Burma, especially
at this critical juncture, with the junta more isolated than ever before.

It is hoped that Thailand's new government will dramatically change the
Kingdom's policy towards Burma. Without Thaksin's strong personal
interests and control over foreign policy, Thailand's direction in foreign
affairs can take a more natural course. It is regrettable that nobody can
undo what Thaksin has already done.

____________________________________

August 6, The Nation
Secret of Thaksin's Burma trip might be in the skies - Sopon Onkgara

Even critics of Thaksin Shinawatra have to grudgingly admire his audacity
and public-relations stunts. Still, as caretaker prime minister, his
stealth diplomacy - with an abrupt half-day visit to Burma on Wednesday -
surely more than raised eyebrows.

Controversy followed, with persistent doubts, but he got away with evasive
responses and lame explanations.

People have to bear or live with his style of working, never mind
tradition or protocol. Thaksin described his visit to the cut-throat
rulers of Burma as modern diplomacy, bypassing cumbersome rituals and
saving a lot of time to actually get results.

What results? Thaksin claimed that the trip was all for national
interests, nothing else, and that the 35-minute meeting covered a lot of
ground and wide-ranging issues. Indeed, our energy minister said the talk
focused for a while on investment in oil and gas; the agriculture minister
said there was discussion on bird flu; the Army chief said there was
nothing much of interest.

If there was any achievement at all, Thaksin must have been the sole
beneficiary, but he kept most of it to himself following the one-on-one
huddle with the Burmese junta's overlords.

Let's look at this way: if the talks were all in the national interest and
achieved much success, a shrewd politician like Thaksin would have
optimised the useful outcomes to chalk up political points as the country
heads towards a general election, if not put another halo around himself.

As far as we know, Thaksin is still trapped in bad times. He is very
desperate to restore his sinking popularity following five years of
numerous misdeeds, massive corruption and abuse of power, among other
scandals in government. If the visit was urgent, necessary and genuinely
beneficial to the country, he would have rambled on and on about the
results non-stop.

Surely, the true achievements of the Burma trip, or even failures if there
were any, must be something he is not prepared to reveal to the people,
who footed the bill for the trip. When he did not come up with tangible
results, it was inevitable that he would fall prey to all sorts of
speculation.

It might sound funny or ridiculous to those who are not familiar with his
odd behaviour, but it was just another sad episode for the country, whose
future and destiny remain murky under Thaksin's power.

This was not the first time Thaksin's foreign trips have raised suspicions
about his family's business and vested interests, particularly concerning
the Ipstar satellite. Speculation and hearsay were confirmed by either
credible evidence or business agreements.

There was talk about some hitches in the Shin Corp deal with Temasek
Holdings of Singapore. One version was that it was not yet a done deal
regarding ground stations on high mountains in Burma for the Ipstar
satellite to have a direct link with Australia. Singapore has become the
proprietor of the facilities through the sale of Shin Corp stocks and
Burma feels uneasy about such an arrangement.

There was speculation about Thaksin's desire to invest his cash holdings
in energy ventures, rare earth and other natural resources. "Why should I
pursue business deals after I have sold all," he asserted. His argument
was not taken seriously by those familiar with his style of doing business
through nominees and funds.

There was talk on the grapevine about Thaksin's desire to drive away
misfortune and whatever jinx now menaces his star by paying homage at the
Shwedagon Pagoda in Rangoon. The embattled billionaire is said to be
fascinated by superstition and fortune-telling. His visits to various
places led to wild talk about such practices.

If people are inclined to believe what Thaksin has to say, they should be
prepared for disappointment later on. Somehow, what he has denied has
tended to turn out to be true. As a politician who never admits any
mistake, Thaksin did not care when his claims were found to be false.

If there were some truth in all the wild talk, it would be about his
family's unfinished deal with Temasek Holdings. Half of the Bt73 billion
has been paid over so far, but it remains untouched and Thaksin cannot
remit it abroad, as there exist doubts about the legality of the entire
transaction. What's more, parts of the deal encountered legal problems
that led to sharp falls in the shares of Shin Corp companies, resulting in
massive paper losses and a red face for Temasek Holdings. With Thaksin's
political future in the doldrums, the likelihood of a strong rebound looks
pretty remote, if not impossible.

More similarly unplanned foreign trips will be heard of soon enough.
Thaksin's next one is expected to be to Cambodia, where there are still
rich natural resources for joint investment. Don't be surprised if he
shows up at Angkor Wat or other sacred sites as well.

Despite his mighty political power and supreme self-confidence, Thaksin
still believes and has faith in the supernatural or paranormal - if it can
yield some benefit to him.

____________________________________

August 7, Irrawaddy
Behind the customs corruption crackdown - Nyein Chan Aye

Recent weeks have seen the continuing purge of the Customs Department in
Burma. Sources in Rangoon suggest the Bureau for Special Investigations
has been heavily occupied with interrogations, working continuously for up
to 24 hours at times to get through all those arrested. Some Rangoon
business owners have gone underground to evade arrest, hiding out inside
Burma or fleeing to Thailand, China or India.

The crackdown has had a severe impact on trade, from the border right down
to Rangoon. At one stage, shipping containers were stranded on the docks
in Rangoon as security checks were intensified. Imports slowed to a
trickle as each container was scrutinized closely, while exports were
strangled as there were no empty containers to ship goods out. Shortages
of imported goods soon drove prices up, while even some NGOs were
affected, as containers carrying aid items were impounded.

What were the reasons for the crackdown? Some sources suggest this was
related to the continuing feud between Snr-Gen Than Shwe and Vice Snr-Gen
Maung Aye. The Head of Customs once served under Than Shwe and has close
links to him. By hitting out at corruption in the department, Maung Aye
was reportedly seeking to tarnish his rivals and strengthen his position.

Others pointed out that perhaps corruption in Customs had become so
excessive and such an obstacle to commerce that it could not be ignored
any longer. Huge amounts of money were involved, crimping the profits of
business and retarding desperately needed economic growth. Apparently, the
standard “fee” for accelerated clearance—often without the seals on
containers being broken—was 30 percent of the value of contents. By any
reckoning, this had become exorbitant and intolerable.

So, has the regime suddenly learned the error of its past ways and is
seeking now to create a cleaner and more hospitable climate for business?
Some recent indications suggest that might well be the case. Encouraging
noises have been made about the need to deal resolutely with corruption.
Sources point out, however, that the current anti-corruption drive may
itself be driven by deeper structural problems confronting the regime.

These sources suggest the matter of corruption within Customs was first
raised by the Minster for Finance during a cabinet meeting some months
back, during which he complained about an inconsistency between reported
trade volumes and the amount of customs revenue collected. He demanded
explanations, but the department denied any wrongdoing—this, in the face
of obvious corrupt practices that precipitated the dispatch of
investigative teams, first to Muse, and then to Rangoon and other offices.
 At Muse, for example, of all the containers inspected, not a single one
had a manifest that accurately reflected its contents. Worse, following an
initial purge of Customs officers during early investigations, their
replacements were then found to have been promptly corrupted, within days
of taking up their positions.

Sources point out it is instructive that the finance minister first blew
the whistle. This suggests there are deep-seated problems with regime
finances. Government coffers must be under incredible strain given recent
heavy expenditures, raising the prospect of an impending fiscal crisis.
Billions have been spent on the construction of the new capital in
Naypyidaw. Huge amounts have also been shelled out for the recent salary
increases. The regime has also continued its arms procurements, from
artillery pieces to jet fighters and patrol boats, all of which require
hard currency. And let us not forget the grand nationwide physic nut
program being pursued that, directly or indirectly, must be diverting and
draining precious revenues.

Somehow, the regime has managed to cover these items up to the end of the
first quarter of this financial year without resorting to the printing
presses too much. Hence, while prices immediately spiked upwards following
the salary increases, they have since stabilized at these higher levels
without escalating further. Perhaps it was the gas revenues that helped
even things up? Or maybe it was the aid or loans provided by China.
Whatever it may have been, there now seems to be concern within the regime
that the coffers will run dry in subsequent quarters. This might explain
why, in addition to the Customs crackdown, there have also been strict
instructions to businesses to pay their taxes on time.

There is now also far greater vigilance in the collection of fees, charges
and fines, which tends to give an impression of a real effort to maximize
revenue collection as much as possible. Such efforts are sometimes
blatantly orchestrated and amount to nothing more than extortion. Quite
suddenly, for example, once dormant laws against jaywalking and crossing
roads at places other than designated crossings (a common feature of
Rangoon life) are being rigorously enforced. Hapless pedestrians are
rounded up by the truckload during peak hours to be summarily fined at the
courts for their transgressions.

Compounding its many problems, the regime is anticipating a worsening
economic situation in coming months. Most ominously, due to the recent
heavy rains, a bad harvest is expected later this year. This will force up
rice prices, with potentially dangerous consequences. Editors of journals
in Rangoon have already been warned by the censors there should be no
articles on rice in coming months. In squeezing more revenue out of the
economy, the regime may also be trying to give itself more options later
when it combats a spiraling rice market.

As usual, things are not as they appear in Burma. It is tragic that in
seeking to deal with its fiscal problems, the regime does not see the root
cause of them. Purging the Customs Department, embarking on
anti-corruption drives and so on, are meaningless until the hare-brained
schemes and fiscal irresponsibility of the regime are stopped. Fixing the
regime’s fiscal problems, in other words, requires an end to the regime
itself.

Nyein Chan Aye is a pseudonym for a non-Burmese businessperson working in
Asean countries, who regularly visits, and has access to, Burma’s business
circles.