CHINA TO JOIN FORUM ON JUNTA’S “ROAD MAP” U.S. TRADE SANCTIONS HIT BURMESE ECONOMY ASEAN SUMMIT FAILS TO ADVANCE BURMESE DEMOCRACY REPORT RELEASED ON FOREST DEPLETION IN BURMA

 CHINA TO JOIN FORUM ON JUNTA’S “ROAD MAP”

On the sidelines of the APEC (Asia-Pacific Economic Cooperation) summit, Thai Foreign Minister Surakiart met his Chinese counterpart, Li Zhaoxing, to discuss the setting up of a forum to consider Burmese PM Khin Nyunt’s political road map to democracy. No timetable for this forum was set. China, a major ally of Burma, agreed to participate if the ruling military junta also agreed to take part in such a forum. PM Khin Nyunt responded positively this month when his Thai counterpart Thaksin Shinawatra proposed the forum on the sidelines of the ASEAN summit in Bali.

 The possibility of an international forum was the only significant development during an otherwise Burma-less APEC Summit in Bangkok. Despite Pres. Bush’s determination to get political developments in Burma on the summit agenda, "there was no discussion of Myanmar during the APEC summit even though many of those present were known and vocal critics of the government of Myanmar," said Philippine foreign secretary Blas Ople. But even though 

Burma was not taken up during the APEC forum in Thailand, Ople said that concern over that country had not changed.   —Nation (Thailand), 10/22/03; AFP 10/23/03

 U.S. TRADE SANCTIONS HIT BURMESE ECONOMY
A total of 123 textile and garment factories have been forced shut since the United States imposed sanctions in July to pressure the ruling junta to release pro-democracy leader Aung San Suu Kyi, the Business Information Group journal reported.

 A U.S. official testified at a Congressional hearing that more than 40,000 people have lost their jobs in the garment sector, and that some women have been forced into illegal sex and entertainment industries.  In the long term, the garment sector is likely to lose 100,000 jobs, most of which are occupied by young women.

 The U.S. sanctions banned imports from Burma, froze the U.S. assets of Burmese officials and stopped all U.S. dollar remittances to the country. The United States 
accounts for 75 percent of exports from the textile industry while the remaining 25 percent go to European countries.

 Burma’s exports to the United States - mostly garments - totaled about US$356 million in 2002.  About 350,000 workers, mostly young women, are employed at 300 textile and garment factories—AP 10/8/03[Ed: According to individual inside sources, another side effect of sanctions is the decrease in prices of staples.]

 ASEAN SUMMIT FAILS TO ADVANCE BURMESE DEMOCRACY 
ASEAN’s credibility, image and international standing “could be affected if we are not seen to be looking at the situation” in Burma, stated Ong Keng Yong, the secretary general of ASEAN. Yet the regional summit held in Bali earlier this month failed to engage in any substantive discussion on Burma or Aung San Suu Kyi’s continued detention.

 Burmese PM Khin Nyunt told ASEAN leaders at an 'off-the-record' working dinner that his government would 'soon' present the timetable for its road map toward 
democracy and reconciliation. Philippine President Gloria Macapagal-Arroyo told reporters that “the most vocal response was made by [Thai] Prime Minister Thaksin, 
seeking understanding of Myanmar's situation because Thailand is the next-door neighbor of Myanmar. And since Myanmar already has a road map and it has to 
contend with many sources of internal instability, Thaksin felt that they should be encouraged in this direction.”

 Japanese PM Koizumi said he met Khin Nyunt on the sidelines of the Asean summit, and suggested the Burmese leader exercise his leadership powers to release Aung 
San Suu Kyi and move the country on the path to democracy.

 Washington criticized a statement from ASEAN, which claimed there had been “positive developments” on Burma at the summit. Meanwhile, the regime thanked 
ASEAN member nations for opting not to criticize them, saying that “cooperation, not confrontation” would help it shift to democracy.

 After nearly four months under detention, Suu Kyi returned to house arrest on Sept. 26 following gynecological surgery. She has not been able to communicate directly 
with the outside world since before May 30, when her convoy was brutally attacked by junta-backed thugs, and scores were killed.   ---Bangkok Post, 10/6/03; Japan Economic Newswire 10/8/03; AFP 10/8/03; BBC 10/9/03, AFP 10/10/03
 

REPORT RELEASED ON FOREST DEPLETION IN BURMA
A new report released by an international NGO details the devastation logging has wrought on Burmese forests. The Global Witness report, released this month,  said 
Burma is suffering the fastest deforestation in Southeast Asia, itself the worst affected region in the world. Global Witness, which is based in London, authored a similar 
report on Cambodia some years ago. 

 Earnings from the exploitation of the resource—in one of the world’s most thickly forested countries—is also being spent on the war between the government and ethnic rebels.  Logging represented 9.3% of the junta’s legal foreign exchange earnings in 2002, says the report.  The Chinese are making roads and employing tens of thousands of Chinese laborers to extract timber and transport it across the border to furniture factories in China, said the report.—AP 10/8/03; AP 10/13/02
 

EDITOR’S NOTE: Dear Readers, BNU is back!

THAI GOVERNMENT CRACKS DOWN ON BURMESE REFUGEES
A recent crackdown on Burmese refugees in Thailand that began in late December continues as the Thai army and government has revealed plans to step up repatriation.  This enactment of government policy has included the rounding up of dissidents, the closing of political offices in Sangklaburi and Mae Hong Son, as well as a change in visa regulations that complicates visa extensions for Burmese refugees. Thai Prime Minister Thaksin Shinawatra will visit Burma in February. "Irrawaddy," January 20, 2003; "DVB," January 22, 2003
 

UN, THAI GOVERNMENT IGNORING WA DRUG ACTIVITIES
A leading Thai politician excoriated the United Nations drug agency and the Thai government for ignoring the narcotics production of the pro-Rangoon ethnic militia, the United Wa State Army (UWSA).  "The UN has never talked about methamphetamines.  I believe there is a conspiracy among various parties to protect this drug program in the name of national reconciliation efforts with Burma," said Senator Kraisak Choonhavan.  The senator suggested that by turning a "blind eye" to Wa drug production and trafficking, the United Nations Drug Control Program is condoning the activities of the Wa army, which include the eviction of local Shan villagers from their homeland.    Newly confirmed reports suggest that the Wa narcotics barons have expanded their production to Ecstasy, refining their production of the designer drug to "European standards."  The drug-financed United Wa State Army (UWSA) already has a stranglehold on the opium market, and Thai narcotics officials blame the outfit for producing 700 million methamphetamine tablets sold in Thailand last year.  A mainstay of "rave" culture in Europe and North America Ecstasy is increasingly popular in Asia among urban youth. "AFP," January 15, 2003; "The Nation," January 28, 2003
 

U.S., UK CASTIGATE JUNTA FOR HARASSING SUU KYI
The U.S. government rebuked the Burmese junta in early January for its harassment of democracy leader Aung San Suu Kyi.  The statement demanded that the military regime ensure that all political parties are able to conduct their activities in safety, and reminded the government of its commitment to a national reconciliation process. "As Aung San Suu Kyi said December 31, the Burmese people deserve a better government and a better standard of living. Every effort should be made to see that they get both in 2003," declared the statement.   Later in the month, British Foreign Office Minister Mike O'Brien blasted the regime for preventing Suu Kyi from operating freely, citing deliberate interference with Suu Kyi's phone line."CNN," January 24, 2003; "U.S. Department of State," January 2, 2003
 

BURMESE PRISONERS THOUGHT DEAD
A statement released by a human rights group reports that at least 15 political prisoners are missing, and are believed to be dead.  The Assistance Association for Political Prisoners (AAPP) stated that the prisoners' disappearance has seemed to occur during their transfer from one location to another.  "I think the case of disappearing prisoners in Burma is routine practice, especially in border areas," said the secretary of AAPP, Tate Naing. "We now have nearly a hundred yet-to-be confirmed cases of political prisoners who have disappeared."  While the military regime has gained publicity for their release of some political prisoners over the past year, arrests continue.  The junta recently arrested two nuns who were staging a peaceful protest in front of Rangoon's City Hall on January 15. "Irrawaddy," January 27 2003
 

SPDC INVITES AMNESTY INTERNATIONAL TO BURMA
The military junta has invited human rights group Amnesty International to visit Burma in order to survey current developments.  The organization, which has continually criticized the regime for abusing the human rights of its citizens, will send two investigators for ten days to the country, where they will meet with government officials, non-governmental organizations, and-it is expected-with democracy leader Aung San Suu Kyi.  While the move is designed to illustrate the junta's commitment to improving its human rights record, experts question the degree to which a single, ten-day mission can establish this.   "BBC," January 24 2003
 

JAPAN TO INCREASE AID TO BURMA
Japan will increase its assistance package to Burma for the year of 2003, according to Japanese Ambassador to Burma Yuji Miyamoto.  "Japan donated US $18.33 million to Myanmar as conventional grant assistance in 2001-2, and we are ready to increase that figure," said Mr. Miyamoto, though he did not specify an amount.  Known as Official Development Assistance (ODA), the package is directed towards "basic human needs," including "the development of a solid economic infrastructure."  The Ambassador also noted that "Japan's policy towards Myanmar is irrespective of the political climate."  "Myanmar Times," January 20-26 2003
 

BEIJING FETES GENERALS, PLEDGES US $200 MILL TO BURMA
China will loan US $200 million to Burma, the largest sum ever extended from Beijing to Rangoon.  The agreement was announced in mid-January after a celebrated visit by the military regime's top brass to Beijing, during which Gen. Than Shwe met with President Jiang Zemin and Vice President Hu Jintao.  China also agreed to write off part of Burma's debt, to step up health and technical cooperation, and increase bilateral trade.  China is Burma's third largest investor.  "Myanmar Times," January 13-19 2003
 

THAI PM TO BROACH DRUG SUPPRESSION WITH JUNTA
Thaksin Shinawatra, Thailand's prime minister, has declared an "all-out war" on drug trafficking, and sent his deputy prime minister, General Chavalit Yongchaiyudh, and army commander, General Somtat Attanan, to Rangoon to pressure Burma's generals to crack down on narcotics production.  According to Thaksin, the war pivots on establishing peace on the border, where ethnic insurgency armies battle the Tatmadaw.   The PM will propose this approach during his meeting with the generals in February.  "When the fighting is over, all other problems will decline," Thaksin said.  "AFP," January 27 2003
 

EU CHIDES BURMA FOR LACK OF PROGRESS 
The European Union (EU) criticized the junta for its poor human rights record and for its failure to spark democratic and market reform.  "Several EU countries raised their concerns but Myanmar said only that this was a sensitive issue and asked the EU not to pressure it," remarked one diplomat.  Sources say that the EU also encouraged ASEAN nations to pressure the junta to reform.  The castigation came during a two-day meeting between the EU and the Association of Southeast Asian Nations (ASEAN) in Brussels, which the SPDC's deputy foreign minister Khin Maung Win was permitted to attend with the temporary lifting of the visa ban against regime officials.    "Reuters," January 28, 2003

JUNTA CONCEDES RAPE CHARGES, SAY SHAN GROUPS
ANNAN CALLS FOR 'ALL-INCLUSIVE DIALOGUE' IN BURMA
BURMA ECONOMY FOUNDERS AS FOOD SHORTAGE INTENSIFIES
PINHEIRO SAYS NLD EQUIPPED TO IMPLEMENT HUMANITARIAN AID
BURMA HAS WORLD'S HIGHEST NUMBER OF CHILD SOLDIERS
JUNTA BLAMES MAIL BOMBS ON THAILAND-BASED DISSIDENTS
 

JUNTA CONCEDES RAPE CHARGES, SAY SHAN GROUPS
Shan groups say that Burma's military junta admitted that its soldiers may have
raped ethnic Shan women.  According to the groups that documented the Tatmadaw's
systematic use of rape in Shan State in a report released in June, Paulo Pinheiro,
UN Special Rapporteur on Human Rights, told them that the junta had conceded the
possibility that the attacks had occurred, though it denied that the rapes were
systematic.  Pinheiro urged the military junta to allow an external presence to
investigate the allegations.  Pinheiro also called for the regime to allow the
International Committee of the Red Cross access "to all conflict zones," citing the
possibility that the neutral international outfit could report confidentially to
the government to promote protection of the civilian population.  The announcement
followed the envoy's decision against visiting Shan State to investigate
allegations of systematic rape by the junta's soldiers, despite invitation by the
SPDC.  Although several investigations directed by the junta have exonerated the
Tatmadaw, a recent survey of the situation by Washington-based NGO Refugees
International affirmed the prevalence of rape by the military in Shan State.  Their
report found similar rates of sexual assault in Karen State, as well as in Mon
State, where the New Mon State Party has agreed to a ceasefire with the junta. 

"Irrawaddy," October 30 2002; "Refugees International," Oct 9, 2002; "Agence
France-Presse," Oct 29, 2002

ANNAN CALLS FOR 'ALL-INCLUSIVE DIALOGUE' IN BURMA
United Nations secretary-general Kofi Annan urged Burma's military regime quickly
to resume its dialogue with democracy leader Aung San Suu Kyi in order to expedite
political reform.  "It is only through an all-inclusive dialogue that [Burma] will
be able to ensure that national reconciliation is durable and the transition to
democracy smooth," said Annan in his U.N. General Assembly report on November 1st.
Though the junta's release of Suu Kyi from house arrest--as well as the release of
around 300 political prisoners over the last two years--was hailed as progress last
spring, the regime has not resumed its dialogue with Suu Kyi.  The
secretary-general voiced concern that "positive momentum" could be lost if the
junta does not demonstrate its commitment to "tangible progress."  Annan also urged
the generals to release all political prisoners, and to lift restrictions on
political parties.

"Reuters," November 2, 2002

BURMA ECONOMY FOUNDERS AS FOOD SHORTAGE INTENSIFIES
Soaring prices on consumer goods have precipitated an increasingly desperate
economic picture in Burma.   The continuously plummeting kyat-which has hovered
around an abysmal 1,200 to the dollar since August-has compounded an acute rice
shortage throughout the country.  Rapidly escalating inflation-due in large part to
the junta's printing of paper money to salve its swollen budget deficits-has
induced price leaps of over 200% for rice since last October.  The junta has banned
the trade of rice and other essentials in Arakan and Mon States, and has forbidden
rice merchants in parts of Pegu Division to store and sell rice. Regional experts
have noted that the current food shortage is as acute as that that impelled the
pro-democracy demonstrations of 1988, during which thousands of protestors were
slaughtered by the army.

"DVB," Oct 26,  2002, Oct 9, 2002; "Financial Times," Oct 23, 2002; "Irrawaddy,"
Sept 5, 2002

PINHEIRO SAYS NLD EQUIPPED TO IMPLEMENT HUMANITARIAN AID
UN envoy Paulo Pinheiro announced that the democratic opposition National League
for Democracy is prepared to help implement humanitarian assistance.  The UN human
rights envoy stressed that the international community should not wait until the
end of political transition to become engaged. "The NLD is ready to participate in
the monitoring and the assessment of humanitarian needs and aid that will be given,
but it seems the government is not yet prepared to have this engagement," Pinheiro
told reporters while in Bangkok, following his 12-day visit to Burma.  The human
rights envoy also praised the controversial training program orchestrated by the
Australian government designed to train civil servants in human rights, which have
been criticized by democracy leader Aung San Suu Kyi.  Burma, which has been
crippled by sanctions from western countries due to the abominable human rights
abuses perpetrated by its military regime, faces mounting food shortages and
rapidly intensifying HIV/AIDS crisis.  Pinheiro, who will report his findings to
the UN General Assembly on November 6th, also urged the junta to release political
prisoners, commenting that, while the release of around 300 prisoners in the last
year has been encouraging, the junta needs to accelerate this pace.  Current
estimates suggest that over 1,400 political detainees languish in the country's
notoriously harsh prisons. 

"DVB," October 22, 2002; "Agence France-Presse," Oct 30, 2002, Oct 29, 2002

BURMA HAS WORLD'S HIGHEST NUMBER OF CHILD SOLDIERS
Over 70,000 children are forced by Burma's government into the military, according
to a report by international human rights non-governmental organization Human
Rights Watch.  The HRW report detailed the conscription of children as young as 11
into the national army, though also into the ethnic militias.  Burma's standing
army has swelled to 350,000, the largest army in Southeast Asia; HRW estimates that
up to 20 percent of these forces are under the age of 18.  Child soldiers are
frequently subject to cruel training regimes and are often forced to participate in
atrocities, such as murder and rape.  On October 29th, United Nations children's
agency UNICEF demanded the demobilization of child soldiers, citing their report,
which found that a quarter of the world's child soldiers are in Asia.  The UNICEF
office in Bangkok urged regional governments to sign a treaty banning child soldier
recruitment. 

"Human Rights Watch," Oct 2002, Oct 18, 2002; "Associated Press," Oct 30 2002;
"Voice of America," Oct 30, 2002

JUNTA BLAMES MAIL BOMBS ON THAILAND-BASED DISSIDENTS
Military Intelligence officers of the State Peace and Development Council (SPDC)
declared that Thailand-based political dissidents sent letter bombs to Burmese
embassies in Tokyo and Singapore.  A suspicious letter addressed to the embassy in
Kuala Lumpur was found only to contain a card inscribed with "8888."  In a press
conference in Rangoon, Col. Nyan Lin linked the letter bombs to anti-Rangoon
political dissidents living in Burma, though he did not identify a possible
culprit.  "All three envelopes had Bangkok postmarks, and they were obviously sent
by antigovernment elements in Bangkok in their terrorist activity....  Since there
are several dissident groups in Thailand, we cannot yet pinpoint which group is
responsible," said Nyan Lin.

"Deutsche Presse-Agentur," Oct 31, 2002

AUNG SAN SUU KYI RELEASED FROM HOUSE ARREST
JAPAN MOVES FORWARD WITH ODA
THAKSIN INKS DEAL WITH REGIME
PLUMMETING KYAT REVIVED AFTER SUU KYI'S RELEASE
UN QUELLS CONFLICT-OF-INTEREST CONTROVERSY
BUSH ADMINISTRATION THROWS JUNTA A CURVE
 

AUNG SAN SUU KYI RELEASED FROM HOUSE ARREST
On May 6th, Burma's military regime released Aung San Suu Kyi from house arrest, ending her nineteen-month detainment.  Suu Kyi stated that the lifting of restrictions was unconditional and that she is free to travel as she pleases. Hundreds of supporters mobbed the democracy leader when she arrived at the National League for Democracy (NLD) Rangoon office on Monday after her release.  The Nobel peace laureate visited a Buddhist shrine later that day, and received foreign diplomats in her lakeside home the next day.  Suu Kyi challenged the SPDC's promises when she traveled to the outskirts of Rangoon, to an NLD office in the suburb of Shwepyitha, at the end of the week.
On May 14th, the SPDC released nine more prisoners from detainment, yet another addition to the trickle of releases since the reconciliation process began in October of 2000. "BBC," May 14th, 2002; "The Economist,"  May 9th 2002

JAPAN MOVES FORWARD WITH ODA Four days after Suu Kyi's release, Japan resumed its Official Development Assistance, announcing that it was giving US $5 million to the renovation of a Burmese power plant.  Tokyo withdrew its ODA to Burma in following the military takeover in 1988, though it continued to provide six million yen in humanitarian aid per year. 

With the rapid expansion of Chinese influence in Rangoon and the diminishing security of Japan's economy, Tokyo has been reluctant to cross the military regime. A Japanese diplomat recently criticized a resolution passed by the United Nations Commission on Human Rights (UNCHR) that castigated the SPDC, protesting that its language was too harsh and overlooked the military regime's progress on human rights.   The U.S. and the Association of South East Asian Nations (ASEAN), as well as Aung San Suu Kyi herself, have denounced Japan's soft line on the junta.  The democracy leader recently cited her disappointment in Japan, commenting, "We would like the Japanese government to give us as much support as the Japanese people do."

"Reuters,"  May 13th 2002; "Asahi Shimbun,"  May 14th 2002

THAKSIN INKS DEAL WITH REGIME A satellite firm owned by Thai Prime Minister Thaksin Shinawatra has sealed a deal with Burma for telecommunications services to Burmese villages.  According to its May 15th announcement, Shin Satellite, affiliated with the tycoon-cum-prime minister's Shin Corp plc, signed a contract worth US $12 million dollars with Burma's Bagan Cybertech.  Company sources say that the deal was clinched after Lt.-Gen. Khin Nyunt's visit to Bangkok in September of last year. 

"The Nation," May 16th 2002

PLUMMETING KYAT REVIVED AFTER SUU KYI'S RELEASE Burma's notoriously failing kyat, which fell to an all-time low of 1,200 to the dollar in early May, has rallied to 820 after the release of democracy leader Aung San Suu Kyi on May 6th.  The news of Suu Kyi's release coincided with the price of gold dropping by a quarter by May 7th.

"The Independent ," May 13th 2002 

UN QUELLS CONFLICT-OF-INTEREST CONTROVERSY The United Nations (UN) dismissed allegations that a business connection between Malaysian UN envoy Razali Ismail and the military junta represented a conflict of interest. 

Within hours of Suu Kyi's May 6th release, news that a company headed by Razali had arranged to sell electronic passport technology to the military regime shook the international media; while the Malaysian press touted the news as a sign of constructive engagement's success, others called for Razali to step down from his role as facilitator in the SPDC-Suu Kyi dialogue.  The UN's May 7th announcement stated that Razali's part-time contract with the United Nations entailed no business restrictions, shunting concerns that the deal between IRIS Technologies, of which Razali is the chairman, and the junta could skew the Malaysian diplomat's objectivity. "AP,"  May 7th 2002 

BUSH ADMINISTRATION THROWS JUNTA A CURVE The White House revealed last Thursday that it will continue to sanction Burma. The announcement came amid speculation of a policy shift signaled by the Bush administration's plans for humanitarian aid to Burma that followed the release of Suu Kyi from house arrest.  The assistance packaged could be the first direct U.S. aid given to a specific program in Burma, and is to be channeled through the UN and local non-governmental organizations (NGOs).

The Department of State's May 16th announcement of plans to deliver HIV/AIDS assistance to Burma coincided with the relatively unpublicized arrival of SPDC representative Col. Kyaw Thein to meet with U.S. policymakers on Burma's anti-narcotics efforts, and suggested a lift in the deadlock between Washington and Rangoon.  In a letter to the State Department, Congressman Tom Lantos (D-CA) railed against the Bush administration, terming the move a "profound mistake." 

Burma was one of four countries to be decertified by the U.S. government in February for the failure of its drug eradication efforts. 

"The White House," May 16th 2002, "The Department of State," May 16th 2002, "The Washington Post," May 16th 2002
 
 
 

Last year, the Foreign Office took the unusual step of publicly asking a British company to abandon one of its largest investments abroad. The company was Premier Oil and the country was Burma. The UK government argued that so oppressive was the local military dictatorship that no foreign investment that might prop it up should be allowed. 

Premier took the equally unusual step of ignoring its government's advice - and on Wednesday goes part of the way towards explaining why. 
Its "social performance report", to be presented at the company's annual general meeting on Wednesday, is hardly a resounding rebuff to the Foreign Office. It does not directly answer the UK government's point that Premier's presence in Burma gives the regime a badge of respectability and economic assistance through tax revenue. But it helps the case for constructive engagement in Burma, at least for the communities surrounding Premier's 70km pipeline, which transports the gas from the Andaman Sea into neighbouring Thailand. 
"It's not our company's role to question the money going to the government or what use it makes of it but rather to understand what our local impact is and to ensure it is as beneficial as possible," says Richard Jones, Premier's corporate responsibility manager. "This social performance report just measures social performance but it is our way of showing we are socially responsible." 

However, Mr Jones still believes the report to be a landmark. "No other extractive sector company of our size has undertaken such a thorough investigation of its status in relation to corporate social responsibility," he claims. Relative to other oil groups, Premier is tiny: 750 employees worldwide and a turnover last year of Ј115m. So far it is mainly high-profile oil companies such as Shell and BP that have felt impelled to produce corporate social responsibility reports, audited by their regular financial auditors, to account for their activities in tricky places such as Nigeria and Colombia. 

The only close parallel to Premier's dilemma in Burma is that of Canada's Talisman Energy in Sudan. Talisman has just produced a corporate social responsibility report to justify its involvement, along with Chinese and Malaysian oil companies, in an oil pro-ject at the centre of Sudan's long-running civil war and to ward off allegations of complicity in abuses by security forces and in displacing local people. 

PwC, auditor of the Talisman report, has been criticised by human rights groups for its limited verification of Talisman's claims, with auditors sticking to the oil concession areas and failing to take in the views of displaced refugees in southern Sudan. The issue has acquired particular sensitivity in the US. Some congressmen are demanding that the Securities and Exchange Commission suspend trading in Talisman shares. The SEC has not gone that far but is planning to demand additional disclosure from foreign companies listed in the US but doing business in countries, such as Sudan, embargoed by the US. 

Premier, by contrast, started to act earlier and a bit differently. It began preparing its social performance audit in late 1999, several months before the Foreign Office made its demarche. And because of its limited resources it got EQ Management, a social responsibility consultancy with former Body Shop executives among its founders, and Alyson Warhurst, professor of strategy and international development at Warwick University, to frame the scope of the report; Compass Research, an Australian-owned market research agency in Burma, to ask the questions; and Warwick University's corporate citizenship unit to do the auditing. 

Contracting out the study has the virtue of making it look more independent. "In the audit of Shell's report on Nigeria, KPMG goes out to verify the data given to them. We, on the other hand, have got outsiders to gather as well as verify the data," says Mr Jones. 

The data in this first Premier report, which covers only the views of employees, local communities and shareholders, contain little that is startling. Some of the people who live in the area surrounding the Premier pipeline, but are not employed by the company, complain about a rise in local prices, which they cannot afford. That is a common feature of oil money flowing into undeveloped areas. Some Burmese, evidently worried about the gas pipe exploding even though it is buried, also say they would like more technical information from Premier. Evidently this is the sort of information their military rulers would not give them. 

Premier's future social audits may be more controversial, because the company says it will cover not only business partners and sub-contractors but also aid agencies and "displaced communities" in Burma. The latter two groups may have views more along the lines of Her Majesty's government. 

For the moment, however, there is almost an agreement to disagree between Premier and the Foreign Office. British diplomats stressed last week that it is not Premier's business practices in Burma that are suspect but the fact that it is there at all. Yet the company's presence has been useful to the UK government for the release of James Mawdesley, a human rights activist, from his Burmese jail cell last year. "We were uniquely positioned as a passer of messages [between London and Rangoon]," says Mr Jones. 

For its part, the Foreign Office now seems disposed to let Premier subscribe to a code of security principles that the UK and US governments drew last year for oil and mining companies to follow in unstable countries. Last December, Premier was excluded from joining BP, Shell and others as initial signatories because of its presence in Burma. This could change when the code is reviewed later this year. 

Certainly Premier is keen to join. It may also be able to pass on to others what it has learnt. Petronas, the Malaysian state oil company, has been sounding out Premier on the issue of social responsibility. This is scarcely surprising. Petronas owns 25 per cent of Premier and is the company's partner in Burma. But Petronas also happens to be Talisman's partner in Sudan. 
 

BURMA RESTRICTS ILO US CONSIDERS EASING SANCTIONS ANTI DRUG TRAINING FROM CHINA BURMA VETOES EAST TIMOR IN ASEAN VOTE U2 ROCKS GRAMMY WITH "WALK ON"
 

BURMA RESTRICTS ILO

At a recent International Labor Organization press conference in Geneva, ILO official, Francois Maupain, stated that it would be pointless for the ILO to set up offices in Burma to monitor efforts to end forced labor.  Maupain reported that the junta would accept a permanent ILO office, but not in a way that would allow would them to enforce ILO labor standards.

Maupain recently led a four-member delegation to Burma to check whether the junta had taken effective measures to eradicate public works conscription practices which violate ILO bans on forced labor.  A report will be released in March to the ILO Governing Body that will determine whether or not sanctions imposed on Burma in November 2000 will be removed.

During his stay, Maupain was barred from visiting pro-democracy leader, Aung San Suu Kyi.  In response, the Deputy Foreign Minister, Khin Maung Win, said that the junta tried to cooperate and be flexible in meeting the terms of the ILO delegation. 

"BBC," February 28, 2002; "Kyodo News," February 26, 2002.
 

US CONSIDERS EASING SANCTIONS

A recent U.S. State Department report received in Bangkok, made it apparent that Washington would consider easing restrictions in Burma provided that democratic change is imminent. 

Restrictions currently imposed on Burma include an arms embargo and a ban on all new U.S. investment and bilateral aid. The report stated that the junta was taking some steps in the right direction by releasing 180 political prisoners since the reconciliation talks in October 2000, and by suspending the negative press campaign against Aung San Suu Kyi and the NLD. 

The process, however, was still considered slow.  There are still more than 1,500 political prisoners held by the regime, Aung San Suu Kyi remains under house arrest, and ethnic genocide and rape still continue. According to the report, human rights are "deplorable" and "Burma's citizens live subject to the arbitrary dictates of the military regime."

A junta spokesman stated that most of the reports of murders and rape of ethnic minorities were false and that the country is on track to a political reconciliation. 

The UN Special Rapporteur on Human Rights in Burma, Paulo Sergio Pinheiro, who recently completed a 10 day visit to Burma to assess the situation, stated that this visit was the "smoothest" yet and that he was allowed to visit Suu Kyi as well as 25 political prisoners. He urged the junta to release all political prisoners and to allow Suu Kyi the freedom to resume her political activities. 

"The Times of India," February 22, 2002; AP, February 13, 2002.
 

ANTI DRUG TRAINING FROM CHINA

Twenty-five Burmese officers are undergoing a five-week training course in Yunan, to tackle drug-related crimes. This training course is part of an anti-drug agreement between China, Burma, Thailand and Laos. Yunan is the main entry point for heroin from the Golden Triangle into China.

"BBC," February 25, 2002.
 

BURMA VETOES EAST TIMOR IN ASEAN VOTE

Burma's military regime created controversy within the Association of South-East Asian Nations by preventing East Timor from taking preliminary steps to join the regional grouping after the country achieves independence next year. The Burmese vetoed a decision to grant East Timor observer status within ASEAN, due to links between the Burmese democracy movement and the Timorese resistance during its struggle for independence from Indonesia. The veto, cast during an informal meeting of ASEAN foreign ministers in Thailand last week, has frustrated several member states who believe East Timor's eventual membership is essential in furthering regional security and economic co-operation. East Timor's Foreign Minister and Nobel Peace Laureate, Jose Ramos Horta, said he was disappointed by the decision, which had been predicted.

"Sydney Morning Herald," March 4, 2002.
 

U2 ROCKS GRAMMY WITH "WALK ON"

U2, the Irish rock band, won this year's Grammy Award for Record Of The Year for "Walk On," a song dedicated to Burmese political dissident, Aung San Suu Kyi. Their album "All That You Can't Leave Behind" picked up four Grammys this year for best record, rock album, rock vocal performance and pop vocal performance. U2 and its lead singer Bono have long been vocal supporters of Suu Kyi and the exiled government. 

"Reuters," February 27, 2002.
 

BURMA NEWS UPDATE is a publication of the Burma Project of the Open Society Institute. 400 West 59th Street, New York, NY 10019 Tel (212) 548-0632 Fax (212) 548-4655  E-mail: burma@sorosny.org Website: www.burmaproject.org

BURMA BESTS AFGHANISTAN 
BURMA'S HIV EPIDEMIC 
US BAN ON BURMESE IMPORTS 
UN IN BURMA 
BURMESE ECONOMY HITS ROCK BOTTOM 
BURMA GOES NUCLEAR

BURMA BESTS AFGHANISTAN
Since the downfall of the Taliban and the resultant decline in opium production in Afghanistan, Burma has filled the shortfall, becoming the world's number one producer of opium, the raw material for heroin. Satellite pictures show poppy plantations spreading throughout the Golden Triangle. Highlanders are growing poppy out of season, using water sprinklers to boost production.  Thailand is working with the international community to curb the influx of drugs into the country and the Chinese news service Xinhua regularly recounts the regime's efforts on the other side of border, including a new anti-drugs museum the Economist reports was paid for by a former druglord living in Rangoon.  In January, the UN International Drug Control Program (UNDCP) in Burma requested that more financial aid and assistance be granted to the military regime to combat the growing drug problem.  [Editor's Note: See Bangkok Post article 5 Feb. on renewed debate.] AAP "Newsfeed," 30 Jan; "Economist," 16 Feb.

BURMA'S HIV EPIDEMIC
A rise in injection drug use in millions of people across Asia is fuelling an explosive regional HIV epidemic  which threatens to be the world's worst, according to a new report compiled by the Center for Harm  Reduction, based at Melbourne's Macfarlane Burnet Institute.  Researchers found that HIV has spread  voraciously along drug-trafficking routes, including the Golden Triangle region of Burma, Laos and Thailand.   Burma is considered to have one of the most severe epidemics in Southeast Asia due to high prevalence of HIV/AIDS among injection drug users. "Associated Press," 8 Feb.
 

US BAN ON BURMESE IMPORTS
The US Congress is deliberating legislation banning all apparel imports from Burma. In the last five years,  the value of apparel imports has quadrupled making it one of the most lucrative exports.  The ban would  supplement worldwide activist campaigns for individual company divestment. In January, European clothing  company Triumph pulled out of Burma condemning the use of slavery.  The International Labor Organization  highlighted the regime's continued use of forced labor in their November 2001 report on Burma.  "The Australian," 30 Jan; "Washington Post," 5 Jan. 
 

UN IN BURMA
UN Special Rapporteur Paulo Sergio Pinheiro completed his third visit to Burma this week.  He met with  various ministers and Aung San Suu Kyi, head of the opposition National League for Democracy.  Pinheiro  continued his investigation of the human rights situation in Burma including the use of child soldiers, forced  labor and the condition of political prisoners.  The military regime invited Pinheiro and freed eleven political  prisoners and journalist, Myo Myint Nyein, during his visit.  Mr. Pinheiro will report to the office of the High  Commissioner for Human Rights (UNHCHR) on Burma later this spring.  An International Labor Organization  delegation arrived in the country this week and UN Special Envoy Razali's seventh visit is scheduled for late  March. "Reuters," 11 Feb; "Bangkok Post," 22-26 Jan.
 

BURMESE ECONOMY HITS ROCK BOTTOM
According to the regime's Central Statistical Organization (CSO) the value of Burma's imports and exports  totaled 4.3 billion US dollars in the first ten months of 2001, up 28.72 percent from the same period in 2000.   The data lists 14 countries and regions in the world with which Burma is mainly trading as the junta prepares  to join the Association of South East Asian Nations' (ASEAN) free trade area by 2006.  However, the Straits  Times concurrently reports that the Burmese economy has hit rock bottom due to mismanagement by the  regime. The black market trade in gems, teak, and narcotics is believed to constitute half of all trade and  prevents a total financial collapse. "Xinhua News Agency," 20 Jan.; "Straits Times," 12 Feb. 
 

BURMA GOES NUCLEAR
Burma purchased a nuclear reactor and 10 MiG-29 aircrafts from Russia this past summer.  According to  FEER more than 300 Burmese nationals have received nuclear technical training in Russia.  Regime  representatives informed the International Atomic Energy Agency (IAEA) that they have only peaceful  intentions for the reactor.  The Vienna-based IAEA reported last year that Burma failed to meet the  minimum safety standards needed to operate a nuclear reactor.  A US State Department official stated  that the US expected Burma to comply with the Non-Proliferation Treaty and not to produce "weapons  grade fissile material." "Far Eastern Economic Review," 27 Dec.- 3 Jan.

BURMA NEWS UPDATE is a publication of the Burma Project of the Open Society Institute. 400 West 59th Street, New York, NY 10019 Tel (212) 548-0632 Fax (212) 548-4655  E-mail: burma@sorosny.org Website: www.burmaproject.org

Nld Demands Unconditional Release For Aung San Suu Kyi
Ilo Forced Labor Investigation In Progress
Ne Win, In Poor Health, Seeks Medical Treatment In Singapore
Rangoon, Washington Signal Continued Hostility
Bumper Crops In Rice, Trees
Meth Refineries Shifting To More Discrete Locations

NLD DEMANDS UNCONDITIONAL RELEASE FOR AUNG SAN SUU KYI
On September 27th, the National League for Democracy (NLD) issued its strongest demand since the start of its dialogue with the regime last year. The NLD called for the immediate and unconditional release of Daw Aung  San Suu Kyi and all other political prisoners at a ceremony marking  the 13th anniversary of the party's founding.  According to Amnesty International,  more than 1,500 political prisoners remain in jail.  Bohmu Aung, one of Burma's  independence heroes issued a statement supporting the NLD in its effort to: bring  about the emergence of a democratic nation where all the people including the  nationalities of the Union of Burma enjoy full human rights." "Reuters," September 27, 2001, "Democratic Voice of Burma," September 28, 2001
 

ILO FORCED LABOR INVESTIGATION IN PROGRESS
An International Labour Organization (ILO) high level team  investigating whether the regime has stopped using forced labor met with Daw Aung San Suu Kyi on September 20th as well as  regime officials.

The four-member ILO team is accompanied by seven experts on a  three-week mission that is taking it inside Burma as well as to countries  with which Burma shares a border.  Thus far, members of the mission have traveled to the Karen, Karenni and Shan states as well as the  Tenasserim Division where the Yadana and Yetegun pipelines are located A judge in the United States issued a finding that forced labor was used on the Yadana pipeline, owned by Unocal and Total.  In 2000, the ILO adopted an unprecedented censure of Burma for violating bans on forced labor and called on member states to take actions against Burma.  If the current mission finds the regime guilty of having continued the practice of forced labor, it could make its implicit call for unilateral trade sanctions more urgent and explicit. "AFP," September 20, 2001, "AP," September 28, 30, 2001, "DVB," September 24, 2001
 

NE WIN, IN POOR HEALTH, SEEKS MEDICAL TREATMENT IN SINGAPORE
Gen. Ne Win, who overthrew Burma's democratic government in 1962 left for Singapore for medical treatment on September 30th.  Ne Win ruled Burma directly until 1988 when he turned at least nominal control over to a committee of generals who have ruled since.  On September 19, the reclusive 90 year-old sent a letter of condolence for  the September 11 terrorist attacks on the United States.  Ne Win did not  appear personally at the memorial service in Rangoon where the letter was read by his grandson, Aye Ne Win who represented the family. "Kyodo," September 30, 2001
 

RANGOON, WASHINGTON SIGNAL CONTINUED HOSTILITY
The Bush administration, under pressure from Senator Mitch McConnell and others  has backed off a sweeping proposal that would allow the administration to  waive  restrictions on providing military aid to any country which  join in the fight against terrorism.  The original proposal would allowed Bush to lift  Congressionally-imposed restrictions on military aid to Burma if he determined the regime was cooperating against terrorism.  For its part, the regime has shown little interest in such cooperation.  On September 20th, the regime, which  originally refused to issue a public statement condemning the September 11 terrorist  attacks on the United States released its letter of condolences sent to the US on  September 12th.  The regime broke its public silence after retired dictator  Gen. Ne Win released a similar letter.  The public statements by the regime and  Ne Win were limited to expressions of condolence and did not condemn the attacks themselves.  The extended public silence and limited scope of the statements is seen as an indication of the regime's hostility to Washington, which has led the efforts to impose sanctions on the regime for abrogating the 1990 elections and violating human rights.  "AFP," September 19, 2001, "Statement of Sen. McConnell," September 26, 2001,   "Washington Post," September 24, 2001

BUMPER CROPS IN RICE, TREES
The regime's Agriculture Planning Department claims plentiful rains this  year should lead to an increase in rice harvests of a half a million tons  over last year to a total of 13 million tons.  Western environmentalists  meanwhile are predicting that the last of northern Burma's forests will be clear cut within a few years given the current rates of destruction by Chinese, Malaysian and Australian based timber firms operating in the Kachin State.  Clear-cutting by the firms is causing the fastest rates of deforestation anywhere in mainland Asia and denuding the watersheds of the Irrawaddy and Chindwin Rivers which flow south from northern Burma. "AFP," September 30, 2001, "Far Eastern Economic Review," October 4, 2001
 

METH REFINERIES SHIFTING TO MORE DISCRETE LOCATIONS
At the request of Lt. Gen. Khin Nyunt, Wa drug producers are moving their production facilities out of Mongyan in the Shan State to more  remote sites in the east and along the Lao border.  The order came ahead of  Lt-Gen Khin Nyunt's visit to Bangkok on September 3-5, 2001.  Skyrocketing methamphetamine production in Mongyan by the United Wa State Army has  resulted in increased tensions with Thailand.  Burmese army officers from  Infantry Battalion 65 and their counterparts in the UWSA reached an agreement  on September 19th regarding profit sharing on methamphetamines jointly  exported to Thailand.  Under a 6-point agreement proceeds from the sale  would be divided equally between the Wa and Burmese with one Thai baht  (1 baht=2.2 cents) from the sale of each pill reserved for the Burma  Army's expenses. The current price border is 25 cents per pill.  The two forces will  jointly provide security during transit.  In response to losses caused by seizures of methamphetamines by Thai authorities, the cartel will shift the risk of lose to drug smugglers by refusing to provide credit for products exported to Thailand. The loss of several large consignments sold on credit has resulted in some traffickers being unable to pay their UWSA and Burma Army creditors. "Shan Herald Agency for News," September 29, 2001.
 

POLITICAL PRISONERS RELEASE DOMINATES TALKS AGENDA The Far Eastern Economic Review reports that the talks between Aung San Suu Kyi and the regime have thus far centered on her insistance that all political prisoners be released immediately.  According to the Review, there is no indication that power sharing has been on the agenda. The trickle of political prisoner releases by the regime has slowed with only two releases reported since the beginning of the month. A monk in Mandalay joined the remaining 1800-2000 political prisoners being held by the regime.  Military intelligence agents defrocked and arrested the monk for delivering a sermon criticizing economic and political conditions in the country during a religious ceremony on August 1. At the current rate of releases, the NLD is complaining  that it will take 10 years to release all political prisoners.

At the current rate of arrests, there will be at least 500 new political priosners by the time all the current ones are released.

"AFP", August 13, 2001; "Democratic Voice of Burma", August 7, 2001; "Far Eastern Economic Review", August 16, 2001. KYAT HOLDS STEADY WHILE FEC, TOURISM SLIPS The kyat held steady at 680 to the dollar while the Foreign Exchange Certificate slipped to 565, a drop of 2.7% since July. Burma's cooking oil imports soared 70% in the first quarter of the year to $21.9 million.  In response to the drain on hard currency, the regime banned imports of cooking oil,a staple, by non-state owned businesses as of July. Lt. Gen. Khin Nyunt blamed bad publicity by activists and the Asian economic crisis for upsetting the regime's expectation of growth in tourism.  Tourism was reportedly down from last year. The figures show that there were 246,007 visitors in 2000 compared to 208, 676  in 2001 (March end). 

"Burma Courier", August 5-11, 2001; "Reuters", August 14 2001; "The Irrawaddy", August 15, 2001; "Xinhua", August 15, 2001 BURMESE AIR-FORCE COMMANDER SACKED, THAI COMMANDERS PROMOTED  Air Force commander Lt. Gen Kyaw Than was quietly sacked some time in the last two months apparantly over the  helicopter crash that killed Lt. Gen. Tin Oo and others in February. He was replaced by Maj. Gen. Myint Swe. Thai  Defense Minister Chavalit Yongchaiyudh feigned satisfaction that hardline Army Commander Gen. Surayud Chulanont  Kept his job for another year over Chavalit's objections. Surayud is generally regarded as an honest military reformer. Lt.  Gen. Wattanachai Chaimuanwong, a Surayod protege who responded aggressively to Burmeseincursions earlier this  year, was promoted to assistant Army commander. 

Brig-Gen Aye Kywe, the commander of Burma's Coastal Region Military Command, reportedly accused Thailand of  stepping up intelligence activities in Burma and ordered units under his command to watch for Thai spies. 

"AP", August 9, 2001; "Democratic Voice of Burma", August 9, 2001.

RUSSIAN PILOTS HEADING FOR BURMA? Russia may be offering to supply pilots for the MiG-29