BurmaNet News, August 22, 2006

[Editor]

August 22, 2006 Issue # 3030


INSIDE BURMA
Irrawaddy: Military reshuffle sparks rumors
Irrawaddy: Junta pressures social welfare group
Irrawaddy: New multi-channel satellite service in Burma
SHAN: "Mongla will not be pushed"

ON THE BORDER
Narinjara News: Bangladesh-Burma agree to exchange prisoners

REGIONAL
Mizzima: Asian film festival to focus on Burmese films

INTERNATIONAL
AFP: Thousands of Karen refugees to relocate to US, Australia
Narinjara News: US official to visit Dhaka to examine refugee issues

OPINION / OTHER
Daily Star: Economic reform in Burma? - Larry Jagan

PRESS RELEASE
KHRG: Massive increase in the use and abuse of convict porters in the
Northern Karen State of Burma since November 2005

____________________________________
INSIDE BURMA

August 22, Irrawaddy
Military reshuffle sparks rumors - Shah Paung

The Burmese junta’s recent shift of several military officers has created
speculation among analysts that the reshuffle is part of a plan by the
ruling generals to expand their power base.

Sources say about 70 military officials, including high-ranking officers,
were assigned new position on August 11. Many of them are young officers
recently graduated from the country’s prestigious Defense Services Academy
and Officer Training School.

Former tactical commander Col Kyaw Kyaw Tun of the Northern Command, has
become deputy commander of the former capital Rangoon, a position that has
been left vacant since his predecessor Brig-Gen Wai Lwin was named
commander of the new administrative capital Naypyidaw in May. Brig-Gen Hla
Myint Swe, former commander of Loikaw, Karenni State, has been named head
of Division 44 in Mon State.

Brig-Gen Kyaw Swe from Division 22 in Pa-an, Karen State, is now the DSA
headmaster, while Col Win Maung has replaced Brig-Gen Thet Oo at the
Military Operation Command position. Several other officers now hold new
positions in civilian offices.

“Despite the increase in the size of the Burma Army, many officers have
less opportunity to get promoted, as senior leaders remain in top
position,” said Win Min, a Burmese military analyst in exile. “The regime
apparently needs to create space for those officers.”

“The ruling regime has promised to make political changes and if they do
so, they would need to make sure that the army is strong,” said Htay Aung,
researcher at the Thailand-based Network for Democracy and Development.
“The move seems to be preparing to inject new blood in the army’s chain of
command,” he added.

Analysts speculated that the move was mainly conducted by Gen Thura Shwe
Mann, the junta’s number three man.

In May, four new ministers were appointed, three of whom were former
military regional commanders. The reshuffle in May saw Maj-Gen Myint
Hlaing, formerly commander of Northeast Command—and a former close aide to
junta number two Gen Maung Aye—promoted to Lieutenant General and
appointed chief of staff for air defense, the position previously held by
Prime Minister Gen Soe Win.

____________________________________

August 22, Irrawaddy
Junta pressures social welfare group

Rangoon’s only funeral service association, under pressure by authorities,
is likely to be taken over by a military-backed civilian group, according
to social workers in Rangoon.

Leading members of the Free Funeral Services Society were recently
informed by local authorities that the association would be taken over by
the Union Solidarity and Development Association, a social worker close to
the FFSS told The Irrawaddy on Tuesday.

The social worker, who requested anonymity, said by telephone that the
association’s advertisements in newspapers and publications have been
banned, and the group has been told not to accept any further donations.

Some social workers have speculated that pressure on the organization
began after Kyaw Thu, a well-known actor and the vice president of the
association, and Than Myint Aung, its secretary-1, attended the 18th
anniversary commemoration of the 1988 pro-democracy uprising, which was
organized by former student leaders.

The FFSS, founded in January 2001, provides free funeral services for
people who can not afford burial or cremation of their family members. An
FFSS staff member said that the association has provided nearly 40,000
free funeral services during the past five years.

The association—a non-profit, non-governmental and apolitical group—have
relied on donations from various people inside and outside Burma for its
operation costs. Most donations come from Burmese people living in Japan,
Taiwan, England and the US.

Another FFSS staffer said on Tuesday that the association has not received
any official announcement of a government-backed takeover by the USDA, and
that they would continue to operate as normal until they do. No senior
association members were available for comment.

A Rangoon social worker did say that the association was compelled to
appoint a USDA member to a high-ranking position several months ago as
part of what he called a new government strategy to infiltrate
non-government organizations to gather information.
Others speculate that through the USDA, the government is trying to assume
the functions—and accept credit—for the work of various NGOs operating in
Burma. The government is reported to have issued new guidelines for
international NGOs that stipulate that all aid workers must be accompanied
by a representative of one of several junta-affiliated organizations, such
as the USDA.

____________________________________

August 22, Irrawaddy
New multi-channel satellite service in Burma

A joint venture between Burma’s Ministry of Information and a privately
owned Burmese firm Forever Group plans to launch a new satellite
television service in September, according to an official at the company.

The new service, which is to transmit through the state-owned MRTV4
receiver, will feature 21 channels including CNN and popular entertainment
channel MTV. The service will be available with different packages.

A single pre-paid package with one channel will cost about 1000 kyat (US
7.5 cent) while monthly fees will range up to 12,000 kyat ($9) depending
on the number of channels. The receiver will cost 279,000 kyat ($220)
Forever Group signed a contract with China’s CCTV9 television in March to
obtain rights to additional programming.

A Forever Group official said that local populations mainly rely on
several unregistered and illegal satellite services. The government will
likely generate revenue from the proposed joint venture.

____________________________________

August 22, Shan Herald Agency for News
"Mongla will not be pushed"

Among the members of the National Democratic Alliance Army-Eastern Shan
State (NDAA-ESS), popularly known as the Mongla group, which has since
1989 enjoyed a ceasefire status with Burma's military rulers, those
determined to resist any pressure from the Burma Army are in the majority,
according to a recent interview of its two senior officers.

"All top members, most of whom are Shans and Akhas, are not going to
kowtow easily", said a commander of the rank of major. "Only a few who
have business interests are humming and hawing."

Mongla, whose leader Lin Mingxian aka Sai Leun (U Sai Lin to the Burmese)
holds sway over Burma's section of the strategic triangle with China and
Laos, has been rapidly recovering from more than a year-long economic
blockade imposed by China. There are fewer tourists these days but the
casinos that had moved 16 miles away from the Chinese border are booming
again. Its coal and mineral mines, operated by Chinese partners, are also
doing well.

"We have the highest paid privates in the whole of Burma," boasted a
Central Committee (CC) member. Each private, according to them, receives ?
300 ($ 38) per month. The Burma Army's private's get only Kyat 15,000 ($
12.5) and the Shan State Army (SSA) South 200 baht ($ 5.25).

Both were confident that with assistance from Mongla's allies, especially
the United Wa State Army (UWSA), the group would be able to defend itself
and repulse any attack launched against Mongla.

The NDAA-ESS is one of the four founding members of Peace and Democracy
Front (PDF) formed on 30 November 1989. One of its abiding slogans being,
"We will not shoot first and we will never destroy the country."

The group's two other allies are Kokang and New Democratic Army-Kachin
(NDA-K).

"We will adhere to the PDF policies anytime we are threatened," said the
CC member.

So far the relations with Burma Army, though not as good as when Gen Khin
Nyunt was in power, have not been as bad as "reported by the media", both
laughingly told S.H.A.N.

The Burma Army is still regarded by the NDAA-ESS as a close ally.  Only
three types of state officials are allowed to operate in Mongla:
immigration, customs and teachers.

The group also steers itself carefully away from non-PDF armed groups.

As for drugs, there have been no poppy fields in the area since 1997, when
the drug-free policy was declared, a claim contradicted by reports from
independent sources.

The NDAA-ESS, officially known as Special Region No. 4, has three
brigades: Headquarters (three battalions), 369th (five battalions) and
911th (seven battalions). Each battalion is 300-strong. Independent
sources however say the battalions are only half as strong.

____________________________________
ON THE BORDER

August 22, Narinjara News
Bangladesh- Burma agree to exchange prisoners

Dhaka: Bangladesh and Burma will exchange prisoners held in their
respective countries this week, said a BDR official.

Colonel Abudul Kalam from BDR battalion 23 based in Teknaf, opposite the
Burmese town of Maungdaw, told Bangladeshi reporters on August 20 that
Bangaldesh will hand over about 60 Burmese prisoners to the Burmese
authorities on August 24 or 25.

He said that the Burmese authorities had pledged that about 20 Bangladeshi
prisoners will be handed over to Bangladesh on the same day.

Among the prisoners, most are fishermen and woodcutters who were detained
by the Burmese border authority Nasaka while they were working well within
Bangladeshi territory on the border.

According to a local Bangladesh source, in Cox's Bazaar jail there are 100
Burmese prisoners, many of whom have completed their sentences. They have
been languishing in the jail for over five years due to the Burmese
authority's refusal to accept them as their citizens.

Burmese authorities have now agreed to accept only 60 Burmese prisoners
from among the 100, after Bangladesh repeatedly requested Burma to accept
their citizens lodged in Bangladesh jails.

Even though 60 Burmese prisoners will be transferred to Burma in
September, there are over 400 Burmese prisoners remaining in Bangladesh
jails, said human rights workers from Cox's Bazaar.

_____________________________________
REGIONAL

August 21, Mizzima News
Asian film festival to focus on Burmese films - Nga Ngai

Mumbai cine goers will now have a chance to see Burmese cinema. A
delegation from the film industry in Burma is preparing to take part in
the Third Eye-Asian Film Festival being organized by the Indian film
industry, Bollywood. The festival to be held in Mumbai in October will
focus this time on Burma.

The 15-member Burmese delegation including director Kyi Soe Tun of the
Myanmar Film Association (MFA) along with directors, producers, actors and
actresses will participate in the annual film festival to be held from
October 12 to 19.

Talking to Mizzima News, the director of the Asian Film Foundation, Sudhir
Nandgaonkar said Burma is the country in focus in this year's festival and
eight Burmese films will be screened at the event.

 Every year since 2002 the festival has focused on a particular Asian
country in order to showcase the trends in cinema in the chosen country,
he said. Taiwan was chosen the first year followed by Kazakstan and
Pakistan as the third and Mongolia the fourth.

"This year, we are introducing Myanmar [Burma ]," said Nandgaonkar.

The festival, which will be mainly attended by Asian countries including
Iran, China, Sri Lanka, Bangladesh, Kazakstan, Russia, Taiwan, Japan,
Korea, Hong Kong, Indonesia, Malaysia and Singapore, will screen over 75
Asian films.

While other countries will screen one or two films, Burma will get to
screen eight films.

"We [Asian Film Festival] are introducing Myanmar [Burmese] cinema to the
Mumbai [ India] audience because Hollywood and Bollywood films are
screened here but not Asian films," added Nandgaonkar.

The Burmese films to be screened are - San Yay (Upstream), Chit Chin Nge
Pyaing, Paysat Thudoh Nalongtha (Heart of Sacrifice), Sat Hta Gan
(Hexagon), Moe Kok Set Waing Ko Kyaw Lun Yewh (Beyond the Sky), Kyan Sit
Minn (King Kyan Sit), Takhakah Irrawaddy Nyamya (Irrawaddy nights) and
Mystery of Snow – with English sub-titles.

The visiting Burmese delegation will include actress Swe Zin Htaik,
assistant director Chan Tha Kyi Soe, producer Thar Nyan and actress wife
Daw Myint Myint Kyine, producer Than Nyunt, actress Myo Thanda Tun,
director San Shwe Maung, director Khin Zaw, producer Khin Maung Soe,
cinema hall owner Zaw Min, actor Lwin Moe and wife May Thu, actor,
director and producer Min Min Hlaing and wife Khin Sa Bea Oo.

The Burmese film delegation will also attend the Chinese Golden Rooster
Hundred Flower Film Festival to be held in Sanya City, Hainan province of
China from Nov 10 to 22.

_____________________________________
INTERNATIONAL

August 22, Agence France Presse
Thousands of Karen refugees to relocate to US, Australia

Bangkok: More than 1,700 Karen refugees in Thailand will soon be relocated
to the United States and Australia after the US waived a law which deemed
them terrorism supporters, Thai interior ministry officials said Tuesday.

Nearly 10,000 ethnic Karen who fled fighting in their homeland of Myanmar
are currently living in the overcrowded Tham Hin refugee camp in
Thailand's western Ratchaburi province.

They had previously not been eligible for resettlement in the United
States because many of them back the Karen National Union, an armed group
fighting the Yangon military junta.

But in May, Secretary of State Condoleezza Rice waived the law meaning the
refugees will no longer be viewed as terrorism supporters, paving the way
for some 9,300 Karen to apply to live in the United States.

A Ministry of Interior official said that 1,793 have so far applied for
resettlement.

These refugees will be moved to the United States and Australia in a
six-week operation which began last Tuesday. So far, 31 people have left
the camp for resettlement.

About 8,000 Karen will be left at the camp after the relocation programme,
and officials said that Thai authorities plan to move them to other camps
nearby because of concerns over the hygiene and conditions at Tham Hin.

"It is difficult to do this as all camps are crowded, but we keep doing
our routine health checks," an official told AFP.

Thousands of ethnic Karen flee fighting in military-run Myanmar every year
and end up in cramped refugee camps on the Thai side of the border.

Human rights groups have accused Myanmar's military of killing civilians
and torching villages in their efforts to quell the Karen National Union,
the oldest and largest rebel force which is still battling the junta.

The United Nations announced in May that an escalation in fighting this
year had forced some 2,000 people from their homes and into Thailand.

_____________________________________

August 21, Narinjara News
US official to visit Dhaka to examine refugee issues

Dhaka: US official in charge of refugee affairs will travel to Malaysia,
Bangladesh, and Thailand next week to examine refugee related issues in
the area, according to a report of the US State Department on Thursday.

Ellen Sauerbrey, Assistant Secretary of State for Population, Refugees,
and Migration Affairs, will be accompanied by the United Nations High
Commissioner for Refugees Antonio Guterres on the Thai leg of the trip.

The objective of the trip to the three Asian nations, from August 21 to
September 2, is to "examine refugee programmes and policy, including a
number of high-profile refugee issues," a State Department statement said,
without giving further details.

It will be Sauerbrey's first trip to the region since her appointment in
January, US officials said.

She will meet officials and review US-funded refugee programmes in the
three countries, they said.

In Bangladesh, there are about 150 Arakanese Buddhist refugees recognized
by the UNHCR as urban refugees and over 2,000 refugees not recognized by
the UNHCR who are living in the border areas without valid documents.
Furthermore, nearly 20,000 Burmese Muslims in Bangladesh are currently
living in two refugee camps on the border.

The Arakanese refugees came to Bangladesh out of fear of persecution by
the Burmese military due to involvement in politics in Arakan State . They
have been arriving in Bangladesh since the 1988 people's democracy
uprising.

Thailand is saddled with at least 140,000 refugees from the military ruled
Burma as well as several thousand ethnic Hmong from neighboring Laos.

The refugees from Burma are living in nine border camps in Thailand . Many
have been there for up to 20 years. Some of them fled fighting between the
Karen National Union, the oldest and largest rebel force, and Burma's
military regime.

_____________________________________
OPINION / OTHER

August 22, The Daily Star (Bangladesh)
Economic reform in Burma? - Larry Jagan

Burma's military rulers are planning a major economic reform program which
is expected to be rolled out in the next few months. The plans involve
liberalising the economy and attracting more foreign investment into the
country. The reforms include privatising many of the government's economic
entities, improving the government's tax collection and reforming the
banking system.

A top-level committee, including senior military officers and prominent
Burmese businessmen, has been drawing up a list of suggested reforms to be
considered by the country's top two generals, Than Shwe and Maung Aye,
before being implemented.

Earlier this year, the government announced that eleven government
businesses, including beer, bicycle, cosmetic, glass, soft drink, textile
and paint factories in Rangoon and Mandalay, were being privatised. They
would be formed into joint ventures with the government holding 51% and
the rest of the shares are being sold to the private sector.

"The value of the shares in these companies, currently worth one million
kyat each, will be adjusted every year," the Industry Minister, U Aung
Thaung, told Burmese entrepreneurs recently. The private sector investors
would run these firms for at least ten years, he said.

The shares in these eleven newly formed joint-venture companies will be
put up for auction shortly according to a Burmese government official. The
buyers would be allowed to resell their shares, or transfer ownership, the
industry minister said.

A newly formed Privatisation Commission is overseeing the sale of these
government companies. Nearly a thousand state-owned enterprises are to be
partially privatised, or sold off, in the coming year, according to
government officials. Nearly two hundred government-operated businesses,
including cinemas, hotels, rice mills and saw mills, were privatised by
the end of the last financial year which ended in March, according to a
government official.

At present the government intends to lease, or auction off, the
businesses, and set up joint ventures. Eventually the idea is to trade the
shares in these private ventures on a stock exchange. "The government is
planning to develop a stocks and share market to help strengthen the
growth of the country's private sector," a Burmese businessman said.

The privatisation plan was originally launched more than ten years ago, in
1995, but was soon shelved when the country's top military rulers got cold
feet. The plan's revival is intended to develop the country's industrial
sector, which has stagnated in recent years. Rising fuel prices and
western economic sanctions also have hit Burma's industry hard.

The new privatisation plans have been prompted by the government's need to
raise finances, especially to fund the building of the new capital at Nay
Pyi Daw, some four hundred kilometres north of Rangoon.

Behind the scenes, Chinese advisors have also been pushing the regime to
privatise the country's state-owned enterprises. The joint venture formula
being implemented is clearly modelled on the Chinese approach to
development, a Burmese businessman said.

"Burma's military leaders have been studying the Chinese and Vietnamese
approach to industrial development and feel comfortable that this strategy
will help boost industrial production and attract foreign investment while
maintaining tight government control," he said.

The current privatisation push is all part of the government's new plans
for significant economic reform largely motivated by the country's growing
economic crisis. A major restructuring of the economy is being considered.
Prime Minister Soe Win launched the probe into the economy last December.

The military regime wants to boost industrial production, increase
industrial efficiency and attract foreign investment, a government
official said.

The joint committee set up to review the government's economic policy has
already reported back to the cabinet. Apart from advocating a
comprehensive privatisation programme, the group also suggested a more
serious approach to company accounts, a more effective and systematic
collection of tax, including both company tax and personal income tax, and
drawing up legislation that would allow foreign investors to repatriate
their profits.

They also suggested opening up the country's media sector to commercial
investors. The information ministry is currently considering allowing the
private sector to launch a daily newspaper and a new television channel.
The current Burmese owner of the English and Burmese weeklies, the Myanmar
Times, has been approached by the Information Minister, General Kyaw Hsan,
about a private daily newspaper, according to reliable sources in Rangoon.

The new television channel is further along in the planning stage,
according to an industry source. It is expected to involve Thai investment
from the Shin corporation.

The committee also suggested that the government had to tackle both,
Burma's banking system and the country's antiquated currency exchange
rates, before the economy could develop and attract foreign investment.

At present the official exchange rate is 9 kyat to the dollar. But on the
black market the rate fluctuates around a thousand kyat to the dollar.
"Most significant commercial transactions in Burma are now done in
dollars," according to a prominent Burmese economist. "The greenback is
effectively the country's currency," he added.

The group suggested that the Burmese currency, the kyat, be floated, or at
least pegged to the dollar. Already the government has moved in this
direction and recognised the black market rate as the semi-official rate.
All transactions between government ministries are done at a rate which is
close to the black market rate. An International Monetary Fund inspection
team, which visited Burma recently, was impressed by some of the reforms
the regime has implemented, including allowing the currency black market
to function without restrictions or impediments, according to
Rangoon-based diplomats who were briefed at the end of their trip.

Economic analysts and businessmen in Burma all agree that without thorough
currency reform any attempt to boost the economy and attract foreign
investment is bound to fail. "Only reform of the currency exchange rates
will boost business and investor confidence," according to a Burmese
businessman in Rangoon, Maung Maung. "Anything less will only distort the
economy, discourage investment, especially from abroad, and prevent real
economic development," he added.

The government has been reviewing and monitoring the country's banking
system, especially the private banks, ever since the banking crisis of
2002. Now the regime realises that confidence in the system needs to be
restored and the bank made more effective and efficient. Most significant
banking transactions, especially foreign remittances, go through the hundi
systeman informal arrangement for transferring funds. The hundi system
accounts for more than ninety percent of the transactions

A few months ago, the police Bureau of Special Investigation were asked to
examine the hundi system and explore ways by which these transactions
could be forced to use the country's banks. They sought the advice of
several of the country's top economists. It is unclear, as yet, what
conclusions they have arrived at.

Businessmen involved in advising the government are optimistic that the
military regime is serious about its plans for economic reform. One of the
key men involved, the respected octogenarian and accountant U Hla Tun,
recently told colleagues that the government was planning some major
economic reforms which would be rolled out before the end of the year.

Other senior analysts are less sanguine. Vested interests are so
entrenched that it is impossible to introduce real economic reform, a
senior military intelligence officer once told me. The former prime
minister, General Khin Nyunt, tried a few years ago but found the
resistance too strong to overcome, the intelligence officer confided.
Senior economic analysts, both inside the country and abroad, believe the
situation is no more favourable to reform now than it was then.

"Burma's leading corporations are mostly owned by, and operated by, the
regime's croniesmostly serving and retired military officers," according
to a former Australian central banker and expert on the Burmese economy,
Sean Turnell.

They rely on "rent seeking" as the only reliable way to make money, he
said. This system will be hard to dismantle, he said.

But unless it is, Burma's economic future will remain bleak. Fundamental
institutional change, effective property rights and the enforcement of
contracts are needed according to Dr Turnell. "Burma's military government
has completely stifled economic innovation," Dr Turnell added. But the
idea that the regime is turning to the private sector to rescue the
economy is also highly unlikely.

"The privatisation program of the ruling SPDC (State Peace and Development
Council) is another of the regime's hoaxes," said the leading Burmese
activist, Zaw Min. "They are selling of the country's assets at
bargain-basement prices to their cronies to keep them happy," he added

How far the regime will go with its privatisation plans and economic
reform program remains difficult to predict. The country's top General,
Than Shwe, needs to be brought on board, and as yet there is no real sign
that he has signed up to the plans. His extreme xenophobia and chauvinism
makes him suspicious of opening up the economy and relying on foreigners.
But in the end it may be Chinese advice and support that convinces him
that Burma has no other option if it wants to avoid the economy imploding
sometime in the future.

_____________________________________
PRESS RELEASE

August 22, Karen Human Rights Group
Massive increase in the use and abuse of convict porters in the Northern
Karen State of Burma since November 2005

Bangkok, Thailand: The Karen Human Rights Group (KHRG) today released a
report on forced labour in Burma, looking specifically at the abuse of
convict porters in the Northern Karen state. The report is produced based
on interviews conducted with a group of 25 convicts since the beginning of
2006.

While convicts have long been a source of uncompensated labour for the
SPDC, the use and abuse of convicts have increased massively in recent
months as Burma’s military regime intensifies its offensives against the
villagers in the Northern Karen State and tries to distract and placate
international pressure on its use of villagers for forced labour.

According to the KHRG report "Less Than Human", several thousand convicts
have been brought from prisons all over Burma to be used by the SPDC as
porters to carry ammunition for the soldiers on the frontlines and to
build roads into remote areas since November 2005.

Quoting the stories of escaped convict porters, the report details the
corruption of the SPDC judicial and penal system and the brutal treatment
of the porters by SPDC military units, who openly tell the porters they
are to be used until they drop dead. Villagers have found trails of bodies
of convict porters after the departure of SPDC armed columns, causing
hundreds to attempt escape. Some die of exhaustion and beatings, others
are shot in the head as soon as they can no longer carry loads. For those
who do escape there are few options: trying to go home or escaping to
Thailand can both result in their recapture and return to the Army.

KHRG believes that the movement towards a greater use of convict porters
is a means used by the SPDC to placate international criticism of its
forced labour policies and to secure the military a ready supply of
porters as a necessary component of the continued militarisation of Burma.
However, as the KHRG report concludes, given the corruption of Burma’s
penal system and the brutal torture, mistreatment and killing of convict
porters, this practice is an illegitimate response to international
criticism of forced labour in Burma.

About KHRG

The Karen Human Rights Group (KHRG) was founded in 1992 and documents the
situation of villagers and townspeople in rural Burma through their direct
testimonies, supported by photographic and other evidence. KHRG operates
completely independently and is not affiliated with any political or other
organisation. Examples of our work can be seen on the World Wide Web at
http://www.khrg.org/, or printed copies may be obtained subject to
approval and availability by sending a request to khrg at khrg.org.

For more details of the report, or interviews, please contact KHRG at
khrg at khrg.org