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 jets it is selling the regime. Without the pilots, the MiGs won't be  fully operational until Burmese fighter pilots are trained, which could take years. Contrary to earlier denials, Thai F-16s may have dropped bombs on Burmese troops during clashes in June.

"Far Eastern Economic Review", August 16 & 23 2001

UWSA METHAMPHATIMINES FLOODING THAILAND, INDIA, EUROPE According to Western narcotics officials, Burmese drug traffickers appear to be taking advantage of relaxed tensions on  the Thai-Burma border to increase heroin and methamphetamine shipments. Good growing weather is pushing up heroin production this year. Thai drug officials expect to be flooded with 900 million methamphetamine pills next year, 200 million more than this year. The United Wa State Army dominates methamphatamine production and is moving some of its  factories into Laos. Indian customs officials also report their northeast border is being flooded with cheap amphetamines. The trade is also branching out to Europe. Swiss police arrested more than 100 people and seized 450,000 UWSA- produced methamphatamines in a major bust in Geneva. The pills were trafficked bythe 14K triad, a Chinese gang.

No major dealers were caught.

"Far Eastern Economic Review", August 23 2001; "Reuters", August 16, 2001; "Radio Australia", August 19, 2001; "Bangkok Post", August 16, 2001 UN AGENCIES BACK OFF CALL FOR LIFTING SANCTIONS The heads of UN agencies operating in Rangoon wrote a letter calling for a massive injection of foreign aid to avoid a "humanitarian crisis." The letter, leaked to AP, sparked criticism from democracy supporters. The Federation of Trade Unions Burma pointed out that the regime has, since coming to power in 1988, increased military spending from 22% to  50% of the budgetwhile cutting health and education spending from 7% to 2.5%. The FTUB said the regime imposed sanctions upon itself by refusing to cooperate with the International Monetary Fund on poverty-reduction and good governance programmes. Senior UN officials backpedaled on the letter, calling it aninternal assessment and, somewhat  disingeniously, maintained it did not mention lifting sanctions although the primary sanctions on Burma are bans  on foreign aid.

"AFP", August 8, 2001; "BBC", August 8, 2001; "The Nation", August 8 2001

DIPLOMATIC ROUNDS Indonesia's new President Megawati Sukarnoputri will visit Burma briefly this month as she pays calls on members of the Association of Southeast Asian Nations.   Laos' new prime minister is currently on a four day trip to Rangoon. Lt. Gen. Khin Nyunt heads for Bangkok in September to talk with the Thai government about border disputes, drugs and trade sanctions the regime has imposed on Thailand. "DPA", August 13 2001; "The Nation", August 10, 2001; "Kyodo", August 16, 2001

Regime Goes Shopping In Russia,N. Korea For Weapons And Reactor 
      Increased Economic Restrictions Not Slowing Economic Slide
      Mixed Messages On Dialogue 
      Meth Labs Shift To Heroin As Prices Soar
      Eu, Un Envoys Headed For Burma
 

REGIME GOES SHOPPING IN RUSSIA, N. KOREA FOR WEAPONS AND REACTOR
The Burmese Military regime is purchasing a nuclear reactor and sophisticated  fighters from Russia and shopping for conventional arms in North Korea.  Jane's Defence Weekly reported that Burma purchased 10 sophisticated MiG-29 fighters from Russia for $130 million with one third paid up front and the rest to be paid over the next decade.  Burma is also buying a 10 megawatt Russian nuclear reactor for research purposes.  The International Herald Tribune says donor government officials were shocked at the reactor purchase and a Rangoon-based diplomat said "financially, this pariah state [Burma] cannot afford to turn into a rogue nuclear nation."  On July 3, the South Korean government said a high-level North Korean delegation visited Rangoon on June 20-22 to discuss cooperation in the defense industry.  A South Korean official said Burma appeared to be seeking conventional arms sales and technology transfers rather than high-tech weapons sales. "International Herald Tribune," July 14, 2001, "Jane's Defence Weekly," July 11, 2001, "Korea Times," July 4, 2001
 

INCREASED ECONOMIC RESTRICTIONS NOT SLOWING ECONOMIC SLIDE
The crackdown on unauthorized currency traders that started in April is the tightest in five years and has widened to gold shops and car dealers. Dealers have been warned not to charge more than government decreed prices and 30 car dealers have been detained.   The regime is implicitly devaluing the Foreign Exchange Certificate (FEC) which used to be pegged at 1/1 with the dollar.  In the last several weeks the regime appears to have switched the peg to a fixed value of 490 kyat. Since the kyat trades at 800 to the dollar, the devaluation creates a de facto third currency in Burma in addition to the dollar and kyat.

In a move to force businesses to buy fewer imports, the regime has promulgated a  decree making export earnings non-transferable.  Imports must be paid for with export earnings so the effect is to prevent any firm that doesn't export from obtaining hard currency to buy imports.  Investment from  Singapore slid by more than a third since last year and Ramada just become the  latest multinational to pull out.  More bad news is coming.  Garment buyers are shifting  orders away from Burma over fears of a bill in the US Congress that would, if enacted,   ban all imports from Burma.  The Vice-Chairman of the Myanmar Garment Manufacturing

Association says US orders have dwindled sharply in the past six weeks. And that half of the 400 garment factories in the Rangoon area would close by mid-July and that ultimately "only 20% to 25% of  factories will survive."  The US market accounts for 2/3ds of Burma's  garment exports. "International Herald Tribune," July 11, 2001, "Myanmar Times," July 2-8 2001, "Channel NewsAsia," July 9, 2001, "The Wall Street Journal," July 9, 2001
 

MIXED MESSAGES ON DIALOGUE
Despite the release of forty political prisoners in recent weeks the regime is playing down talk of a breakthrough in the dialogue with Daw Aung San Suu Kyi and now says there has been too much speculation.  The last three elected MP's held at government "guest houses" were released on Friday the 13th but Amnesty International says another 1800 political prisoners remain. Also on the 13th, the regime hinted that there were problems in the dialogue by telling journalists that Daw Aung San Suu Kyi would refuse to appear at the Martyrs' Day ceremony on July 19.  A day later the regime officials denied reports that she planned to snub the event and released a statement saying that it "urges the media not to speculate in an unconstructive way." The Martyrs' Day ceremony marks the 1947 assassination by a rival politician of  her father General Aung San and members of his cabinet.  Journalists have been  unable to ask Aung San Suu Kyi about the dialogue or her plans since she was  placed under de facto house arrest last September. "Reuters," July 13, 2001, "AFP," July 9, 14, 2001
 

METH LABS SHIFT TO HEROIN AS PRICES SOAR
The Taliban's effective prohibition on heroin production in Afghanistan is driving the price of Burmese heroin up to nearly $10,000 a kilo.  Higher prices and increased irrigation are drawing more acres in Burma into poppy production and Thai officials report that some Burmese methamphetamine labs are being converted into heroin labs to cater to rising demand.  Laundered drug money accounts for as much as half of Burma's GDP according to a drug expert quoted by Newsweek.  Thai intelligence officials say that the United Wa State Army is moving some of its methamphetamine production from Burma to Laos and Lt. Gen. Wattanachai Chaimuanwong, the commander of Thailand's Third Army says Wa villagers moved by the regime to the Thai/Burma border "have come down here to grow opium openly again."   Thai newspapers are full of stories about the impact of the methamphetamine epidemic including accounts of unemployed users committing violent crimes and that one in 10 novice monks have sought help for addiction. "Newsweek," July 16, 2001, "Sydney Morning Herald," July 3, 2001, "Bangkok Post," January 11, 2001
 

EU, UN ENVOYS HEADED FOR BURMA
On July 12, Pierre Vaesen, the Belgian ambassador to Thailand said the European Union (EU) hopes to send a mission to Burma in October or November of this year. Belgium, currently, holds the rotating presidency of the EU.

Vaesen, called for more prisoner releases, greater political freedom and progress on  eliminating forced labor before lifting EU sanctions on Burma.  Vaesen also said that United Nations (UN) envoy Razali Ismail would return to Burma "fairly soon" and that UN human rights special rapporteur Paulo Sergio Pinheiro "might also go back." The European Union's common position on sanctions is reviewed every six months and  will be examined again in October. "Bangkok Post," July 12, 2001, "AFP," July 13, 2001
 

REGIME EASES PRESSURE ON NLD
PM's VISIT WARMS THAI-BURMA RELATIONSHIP
EXTENT OF THE HIV/AIDS EPIDEMIC HIDDEN IN BURMA 
GARMENTS, RICE AND HEROIN EXPORTS SURGE 
REGIME "CAUGHT" DEALING DRUGS
INTERNATIONAL PRESSURE CONTINUES
EAST TIMORESE BACKS BURMESE DEMOCRACY MOVEMENT
 

REGIME EASES PRESSURE ON NLD
Beginning in mid-June, the regime has eased pressure on the National League for Democracy by releasing some of its members from prison and letting the NLD reopen about half of its offices in the Rangoon area.  Most prominent among those released is Aung San Suu Kyi's cousin, Aye Win and Dr. Saw Mra Aung, head of the Committee Representing the People's Parliament. Asiaweek reported that the relaxation is intended to gain legitimacy for the junta, which has "no real intention of relaxing their iron grip on power."  The regime has released about a dozen political prisoners but according to Amnesty International holds 1850 more. "AFP," July 2, 2001, "AP," June 16, 2001, "VOA" June 21, 2001, "Asiaweek" June 26, 2001
 

PM's VISIT WARMS THAI-BURMA RELATIONSHIP
The Burmese junta extended a red-carpet welcome to Thai Prime Minister Thaksin Shinawatra, going so far as to suspend attacks on Thailand in the state press.  In a bid to mend ties, the regime is also inviting Thailand's King and Queen to make their first visit to Burma since the1960s.  Thaksin offered to extend trade privileges to Burma along the lines of tariff breaks offered to Cambodia and Laos. The regime also signed a memorandum of understanding on anti-narcotics cooperation although the MOU left out what the Thais wanted most--join anti-drug patrols by the Thai and Burmese armies.  One immediate effect of the warmer relations was the reopening of the Mae Sai border crossing, closed since fighting broke out there four months ago. AP, June 20, 2001 "Bangkok Post," June 19-22, "VOA," 24 Jun 2001

HIV/AIDS EPIDEMIC HIDDEN IN BURMA
At parallel NGO meetings during the United Nations General Assembly session on HIV/AIDS (UNGASS), Dr. Chris Beyrer, a noted AIDS expert, revealed that the biggest problem with the epidemic in Burma was discovering its real extent.  Dr. Chris Beyrer, a medical epidemiologist at the Johns Hopkins University presented an analysis, which indicated that at least 3.46 percent of Burma's adults were infected with the HIV virus.  This is the second highest rate of infection in Southeast Asia after Cambodia.  The UN's AIDS agency estimated 48,000 deaths related to AIDS in 1999 while the regime acknowledged 802.  Statistics indicated an infection rate of 5.3 percent among Burmese men aged 20 to 44, while the rate for women was below 3 percent, except in the Shan state where it was reportedly higher. "NY Times," June 25, 2001, "AP," June 26, 2001
 

GARMENTS, RICE AND HEROIN EXPORTS SURGE
Burma's garment, rice and narcotics sectors are leading an export boom.  Figures released by Canada's Trade Commissioner Service show that imports from Burma, mostly clothing, were up by more than 65% in the first quarter of 2001.  Rice trader's report that the military government, which controls the rice trade, was increasing efforts to boost exports by undercutting other Asian rice producers on price.  Burma is expected to export 300,000 metric tons of rice this year, an almost three fold increase over last year's 110,000 tons.  Western law enforcement officials expect Burma's heroin exports will surge this year due to the decision of the Taliban in Afghanistan to end production there.  Burma produced 1000-1500 tons of heroin last year. "Burma Courier," June 14, 2001, "PlanetRice.net," June 16, 2001 "Far Eastern Economic Review," July 05, 2001
 

REGIME "CAUGHT" DEALING DRUGS
An Australian television program aired footage on June 20 of a night military raid on a Burmese army post on the Thai border in March by Shan troops.  The raid, conducted with Thai army support, resulted in the capture of a huge haul of methamphetamine pills bound for Thailand.

According to Professor Des Ball, from the Australian National University's Strategic and Defence Studies Centre, "In the case of the methamphetamine production labs, you've got Burmese troops actually guarding the plants, you've got military intelligence guys providing the escorts of the trafficking caravans and military people who allow it to actually cross the border into Thailand."   The report named Lt. Gen. Khin Nyunt as playing a key role in Burma's drug trade. "The Nation," June 20-21, 2001
 

CALLS TO MAINTAIN INTERNATIONAL PRESSURE ON REGIME
International pressure on the junta looks set to increase.  Mitch McConnell, an influential United States Senator (Republican), called for the international community to "maintain political and economic pressure on Rangoon."  Meanwhile state legislators in Massachusetts are introducing a new "Massachusetts Burma Law" that would divest state funds from companies doing business there.  The International Labour Conference imposed additional sanctions on Burma related to forced labor in the agriculture sector that violates a newly adopted "Convention Concerning Safety and Health in Agriculture."  "Asia Times," June 23, 2001, "The Asian Wall Street Journal," June 18, 2001,
 

EAST TIMORESE BACKS BURMESE DEMOCRACY MOVEMENT
Xanana Gusmao, East Timor's independence leader has founded a Friends of Burma group in Dili to campaign for democracy in Burma, saying  "Aung San Suu Kyi was with us when we were suffering in hell.  Now that we have overcome that hell, we must not forget her." "Suara Timor Lorosae," June 21, 2001

REGIME ALLOWS PRISONERS OUT...
The regime significantly relaxed pressure on the NLD by releasing 8 senior Dissidents and allowing the party to reopen 18 of 40 party offices in Rangoon. Among those released is Saw Mra Aung, the octogenarian chairman of the Committee Representing the People's Parliament. This brings the number of opposition Members released from prison this year to 108.  Nearly 2000 still remain.
"AP," June 16, 2001 ..AND THE ILO IN 

In another sign of opening the regime has agreed to a September visit from an ILO team that will assess whether it has, as it claims, eliminated forced labor.  The high level team's report may influence whether countries apply further sanctions. "BBC," June 12, 2001

THAI PM HEADS TO BURMA
Thailand's Prime Minister Thaksin Shinawatra will be in Burma form 18-20 June in an effort to reduce tensions between the two countries.  He is scheduled to sign an anti-narcotics memorandum of understanding with regime leaders.  Thai parliamentarians have urged Thaksin to meet with Aung San Suu Kyi, but a visit is not on his schedule. "The Nation," June 18, 2001

BURMESE SPIES, TROOPS MASSED ALONG THAI BORDER
Colonel Charnchai Sun-thornket of Thailand's Third Army said 2/3ds of Burma's 500,000 troops are massed along the Thai/Burma border.  Thai authorities have arrested four Burmese agents in Thailand and charged them with spying and drug running.  The Thai army says that thousand more Burmese agents have infiltrated along their border to gather intelligence and occasionally assassinate exiled dissidents. "The Nation," "Bangkok Post,"  June 10-11, 2001

JAPAN'S CONTROVERSIAL FM HESITATES ON AID
Japan's new Foreign Minister Makiko Tanaka responded to a parliamentary enquiry on aid to refurbish a dam in Burma by saying she wants to gather information from different channels, not only from the Ministry of Foreign Affairs which she heads. Tanaka, though popular with the Japanese public is locked in a fight with senior bureaucrats in her ministry who resent her bluntness, gender and insistence that elected officials set Japan's foreign policy.  US Secretary of State Colin Powell has criticized Japan's funding for the dam. "PD Burma Japan," June 14 2001
 

UN ENVOY RETURNS TO RESUME DIALOGUE
ILO TEAM WILL TEST WHETHER FORCED LABOR STILL USED
FOREIGN INVESTMENT, OIL PRODUCTION FALL 
GOD'S ARMY TWINS COMING TO AMERICA 
THAI PM'S VISIT JEOPARDIZED BY SLIGHTS TO THAI MONARCHY
DRUG KINGPIN HANDED OVER TO CHINA
 

UN ENVOY RETURNS TO RESUME DIALOGUE

Razali Ismail, the UN's special envoy returned to Rangoon in an effort to Restart stalled talks between the regime and Aung San Suu Kyi.  Razali met with Lt. Gen. Khin Nyunt and then with Suu Kyi and also with six members of the NLD's executive committee.  Razali, arrived in Rangoon on Friday June 1 and left June 4th.  Both sides have agreed not to divulge the agenda or their progress of the talks but recent press reports hint that Aung San Suu Kyi is frustrated with the regime's unwillingness to bargain.

"South China Morning Post," "AP," Wires services, June 1-4, 2001

ILO TEAM WILL TEST WHETHER FORCED LABOR STILL USED

The regime has said it will allow the International Labour Organization to send a team to Burma in September to verify whether it has stopped using forced labor. The regime claims it has.  Numerous human rights and news reports indicate otherwise.  The issue matters because the US and other countries are pushing for tougher enforcement of sanctions the ILO voted last November.  In renewing the US sanctions for another six months, President Bush said, "The United States strongly supported this decision." ["Burma is among the top three worst offenders according to the latest US State Departments annual report on human rights abuse. Yet the United States remains Burma's largest export market - Ed"]

"Reuters," "Pres. Bush's Report to the Congress Regarding Conditions in Burma and U.S. Policy Toward Burma," June 2, 2001

GOD'S ARMY TWINS COMING TO AMERICA

Johnny and Luther Htoo, the infamous, supposedly bulletproof pre-adolescent twins who led the God's Army guerilla group may end up as political asylees America.  The twins were interviewed by a US Embassy Officer on May 11 and Thailand is trying to resettle them anywhere but on its border. The process is not complete yet but no other country seems willing to take them. The twins were captured in January after gaining notoriety for a bloody raid on a Thai hospital and village that were blamed on God's Army.

"Bangkok Post," Agencies. June 2-4, 2001

THAI PM'S VISIT JEOPARDIZED BY SLIGHTS TO THAI MONARCHY

Thai Prime Minister Thaksin Shiniwatra's on again-off again trip to Rangoon is back on for June 18--unless it is cancelled again.  The trip has become a hot potato because of Burma's slighting the Thai monarchy, a serious taboo to most Thais.  The regime printed Inflammatory articles in The New Light of Myanmar mocking previous Thai kings as colonialist lackeys and on May 22, its Wa allies shelled an agriculture project set up by the Thai royal family to help ethnic minorities in Thailand.  There is no target of military value at Doi Angkhang so the shelling is seen by many as an intentional slight on the Thai monarchy.  Even Thai Defence Minister Chavalit Youngchaiyudh has been sounding a tougher line on Burma over the slights and in response, the regime has toned down its criticism of the monarchy, although not of Thailand.

"Bangkok Post," "AP," "Shan Herald Agency for News," "New Light of Myanmar," May 27-June 1, 2001

DRUG KINGPIN HANDED OVER TO CHINA

Chinese-born drug boss Tan Xiaolin has been turned over by the regime to China. China's state press called him a kingpin of the heroin trade.  Tan was seized along with 18 of his men and 3 tons of heroin.
 

 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. 

Thai Troops Battle Wa And Spdc Troops For Hua Lone Hill Un Envoy Heading Back To Rangoon        Drug And Pony Show For Tame Journalists Spdc Reps Get Visas -- No Alms, Arms Gas, Power And        Currency Crises Stall Economy, Traffic Sides Lining Up In Border War
 

THAI TROOPS BATTLE WA AND SPDC TROOPS FOR HUA LONE HILL

A Thai artillery bombardment and F-16 flyover on May 10 drove The United Wa State Army (UWSA) troops off strategic Hua Lone Hill along Thailand's border with Burma. The hill was a Shan State Army base until UWSA troops, allied with the Burmese army, took it on May 3.   Burma now claims the hill and 34 other border posts as its territory and in a May 13 ultimatum, threatened to use force if the Thai army did not retreat.  Thai Third Army chief vowed to hold the positions and said if Burma used force, "this could mean war."  The fighting and threat of war caused Prime Minister Thaksin Shinawatra to once again postpone a trip to Rangoon.

"Bangkok Post," May 15 2001, "AP," May 15, 2001.

UN ENVOY HEADING BACK TO RANGOON

Stung by reports that the dialogue with Aung San Suu Kyi had broken down, the regime announced that a visit by UN Special Envoy Razali Ismail is reportedly set for June 1st.  Aung San Suu Kyi is being held incommunicado by the regime, which insists she is happy with the progress of the talks.

"Deutsche Presse-Agentur," May 19, 2001.

DRUG TOUR FOR TAME JOURNALISTS

The regime staged a mid-May guided tour to Mong Yawn, a town on the Thai/Burma border built by the drug-trafficking UWSA.   Selected journalists from China, Laos, Cambodia, Vietnam and Thailand were taken on the tour in an effort to show that no drugs were being produced in the town. Journalists considered biased by the regime--i.e. those from Western media organizations and Thai papers that have written about the UWSA's involvement in drugs - were barred from the trip.  Thai army commanders accused the regime of concealing the laps during the trip, called for an international inspection, and mocked the tour as a dog and pony show, saying it was "too easy" to organize a press tour of the town to declare it drug free. 

"Reuters," May 13, 2001, "Bangkok Post," May 17, 2001, "Asia Times," May 12, 2001.

SPDC REPS GET VISAS BUT NO AID

In separate trips, officials linked to the regime were granted visas to the European Union and the United States to seek increased foreign aid.  While they got the visas despite travel bans, both came up empty-handed on aid.  U Soe Tha, a regime minister secured a visa to attend a May 12-14 conference in Brussels on the EU's "Everything but Arms" aid package for Least Developed Countries.   In the other trip, U Tin Sein, chairman of the Myanmar Universal Bank attended the Asia Development Bank's annual meeting in Hawaii.  The United States has placed a $2 million dollar bounty on the bank's owner, drug lord Wei Hsueh-gang, as he allegedly finances methamphetamine production.  Both trips ended in failure. Alone among poor countries, Burma has been excluded from the European Union's aid initiative, and the ADB is refusing further aid without significant reforms.

"AFP," May 10, 2001, "Burma Courier," May 13 - 19, 2001, "Bangkok Post," May 15, 2001.

GAS, POWER AND CURRENCY CRISES STALL ECONOMY, TRAFFIC

Hit by gas and power shortages, traffic and manufacturing in Rangoon all but ground to a halt while the currency continued its free fall. The regime announced a ban on motorbikes, ostensibly to prevent collisions with cars, but the scarcity of car traffic due to fuel shortages casts some doubt on the stated reason.  The government's state power monopoly doubled the price of electricity to 50 kyat per kilowatt and cut service in some Rangoon townships from a half day to 2 hours per day, leaving many factories dark.  The price of diesel fuel, when it could be had at all, jumped from 550 to 750 kyat per liter while gasoline jumped from 600 to 900 kyat per gallon on the black market.  The kyat is bouncing somewhere between 750 and a 1000 to the dollar.  The regime has temporarily halted the slide in the usual way by arresting the currency traders in Rangoon.

"Myanmar Times," May 7-13 2001, "Irrawaddy," May 11 2001.

SIDES LINING UP IN BORDER FIGHT

The fight between the Wa drug trafficking army and Thailand is drawing regional combatants to the various sides.  A May 16 threat by the regime to fight side-by-side with the Wa against Thai anti-narcotics incursions led to the Thai commander, Lt. Gen. Surayud Chulanont, to put his army on alert.  US Secretary of State Colin Powell, in Capitol Hill testimony called the SPDC "truly an outrageous regime" and Pacific Commander Admiral Dennis Blair confirmed that US Special Forces troops will be staying on in Thailand to serve as instructors to Thai troops in their anti-drug war.  After 19 years of being oriented toward Thailand's eastern border, US and Thai military planners are staging the annual Cobra Gold exercise on Thailand's western border this week  --opposite Burma.

The Malaysian defence chief announced his regime was considering expanded military ties with the junta, and China, which pushed the UWSA to move its base away from the China border and on to the Thai border, is pledging its support to the regime for 'border development.'  China is the main supplier of military hardware to the regime and the UWSA, and Chinese military advisors are credibly reported to be serving as advisors with UWSA units.  A narcotics expert quoted by the Chicago Tribune said, "It was a cunning move.  By sending the Wa away from their own border, the Chinese dramatically reduced drug trafficking into China, which had become a major problem for their own population. Sending the Wa to the Thai border meant dumping the problem on the Thais and their Western allies." 

"AP," May 12, 2001, "Chicago Tribune," May 19, 2001, "AFP," May 17 2001, "Bangkok Post," May 19, 2001.
 

EU Delegation in Burma
European Union envoys began talks with Burma's  military rulers after arriving in Burma's capital, Rangoon,  on 28 January for a visit to assess and encourage  negotiations that recently began between the army  junta and the opposition National League for Democracy  (NLD). The EU delegation is expected to meet with NLD  leader Daw Aung San Suu Kyi, who remains under house  arrest, as well as other senior junta and opposition leaders. Bangkok, "British Broadcasting Corporation World Service," 29 January

Rocky Road to Real Reform
The recent softening of the Burmese military junta's  "withering pressure" on the country's democratic opposition  may indicate that Western economic sanctions are  affecting the military regime, but many analysts believe  meaningful change is still far off. The state-run media's  virulent routine attacks on the opposition National League for  Democracy and its leader, Daw Aung San Suu Kyi, have disappeared  since talks began in October between Daw Suu Kyi and junta leaders.  The dialogue, and release of some political prisoners, are widely  welcomed by exiled Burmese democracy activists and the United Nations. Yet the two sides' positions remain far apart. Burma's  generals continue to regard themselves as their country's "saviors,"  and for ten years have accepted the economic consequences of  sanctions rather than accede to international pressure to respect human  rights. Rangoon, "Associated Press,"  27 January

Elections Must Not "Undermine Authority"
Burma's army junta will not allow elections for at least the next two years,  and only after a process that includes "proper" voter registration, according  to  Malaysian Prime Minister Mahathir Mohamad, who met recently in  Rangoon with Burmese junta leader Senior General Than Shwe. In an  interview with the Mainichi Shimbun newspaper, Mahathir stated that the  Burmese regime should not reject "a kind of liberal democracy" that exists  in the Association of Southeast Asian Nations. However, he warned "When  an election is held, people must learn the limits of elections. Not use elections  to undermine authority."  "The issue of elections is central to negotiations between the junta and the National League for Democracy (NLD). The military has never honored the  NLD's overwhelming victory in 1990 elections. The junta has been promoting  its own mass organization, the Union Development Solidarity Association, which  some analysts believe may be turned into a pro-army political party-Ed." Tokyo, "Agence France Presse," 28 January

Ethnic Front Revived
The United Nationalities League for Democracy (UNLD), an umbrella  group of ethnic political parties that supported democratization in  Burma and was banned by the Burmese military regime in 1991, has  been formally revived in exile during a four day meeting in Thailand.  The UNLD was allied with the National League for Democracy, and  won strong support in Burma's ethnic minority areas in the 1990  general election. The UNLD will seek to ensure that political dialogue  regarding Burma's future is expanded to a tripartite basis that will  reflect the concerns of Burma's ethnic minority peoples. "Shan Herald Agency for News," 20 January

Junta Dish Demand
Burma's state-run Kyemon newspaper published on 18  January an item warning that officials "have already  compiled a list of satellite receivers used illegally without licenses" and urged their owners to register with authorities  or face legal action.   "Burma's junta has severely restricted ownership of satellite  receivers, as well as fax machines, fax modems and photocopiers  under threat of long prison sentences. It is unclear whether the  demand for registration of satellite receivers, which allow reception  of uncensored television programming, is a serious effort to stop  their use or a de facto capitulation to their proliferation and a move  to collect license fees-Ed." "BBC Summary of World Broadcasts," 26 January

Sanctions a Needed Weapon
New U.S. Secretary of State Colin Powell's stated reluctance  to use sanctions should not mean they are abandoned in  promoting and enforcing international human rights standards,  where there are few other foreign policy options, Open Society  President Aryeh Neier wrote in an op-ed piece in the 28 January  New York Times. "There is evidence that sanctions are finally  having an effect one of the most abusive governments in the world:  the ruling forces in Burma....," wrote Mr. Neier. "Sanctions, including  a prohibition on new investments and a visa ban for members of the Burmese military, were the way the international community, led by  the United States, brought pressure on the regime." Mr. Neier added  that "smart sanctions" that exempt humanitarian assistance and the  exchange of information and ideas, such as those imposed on Serbia  in recent years, target leadership elites and minimize the impact on  common people. "The New York Times," 28 January
 

TALK OF POLITICAL TRANSITION SUGGESTS BREAKTHROUGH IS NEARING UN HUMAN RIGHTS ENVOY TO VISIT BURMA FOR FIRST TIME BURMA'S EX-STRONGMAN NE WIN HOSTS LUNCHEON FOR 99 SENIOR MONKS U.S., EU KEEP HEAT ON BURMA OVER FORCED LABOR CLASHES BETWEEN THAI AND BURMESE TROOPS ALONG THE DISPUTED BORDER- -LOOK SET TO CONTINUE INDEFINITELY BURMA STOCKS UP ON AMMUNITION SALWEEN PROJECT DUSTED OFF REGIME CLAIMS TO HAVE CUT TRADE DEFICIT BY 73  PER CENT
 

Talk of Political Transition Suggests Breakthrough Near

The head of the military regime in Burma has spoken publicly for the first time about plans for political transition, a fresh sign that secret talks may be progressing on a return to civilian rule. Of the talks, a government spokesman said: "It's going very well." Observers said the remarks by General Than Shwe, on such an important day [Burmese Armed Forces Day] in the Burmese calendar, reinforced speculation that significant progress was being made towards solving the 10-year standoff between the regime and Aung San Suu Kyi's National League for Democracy. "For the number one guy in the Government to use the words political transition in a major speech on an occasion like this is very significant," one Rangoon-based analyst said. The Herald revealed earlier this month that Aung San Suu Kyi has held at least 12 meetings at her Rangoon residence with the powerful deputy chief of military intelligence, Major-General Kyaw Win, and the general has told close associates they were discussing the framework for a transitional administration.

"Sydney Morning Herald"  March 28, 2001

UN human rights envoy to visit Burma for first time

The United Nations' newly appointed special  human rights rapporteur on Burma, Paulo Sergio Pinheiro, has been  given permission to Burma for the first time next month, a government spokesman said.   Pinheiro's predecessor Rajsoomer Lallah, who resigned in November, was  never authorised by Burma's military regime to visit the country during his term in the post.

"AFP" March 29, 2001

Burma's ex-strongman Ne Win hosts luncheon for 99 senior monks

Burma's former military strongman General Ne Win, who ruled  the country between 1962 and 1988, appeared in public for  the first time in years to host a luncheon for 99 senior Buddhist monks,  eye-witnesses said. The lunch, presided over by Ne Win, 91, was held at the posh Sedona  Hotel in downtown Rangoon.  Altogether 99 members of the Buddhist Sangha, - essentially the Buddhist priesthood - and about 500 lower ranking monks,  attended the  merit-making event, observers said.

The speculation was that Ne Win was hoping to add another eight years to his life with the auspicious number of 99 monks, compared with his 91 years.

"Deutsche Presse-Agentur" March 21, 2001

U.S., EU keep heat on Burma over forced labor

The United States and European Union back tough measures, including possible trade sanctions, against Burma to bring an end to forced labor according to a new report by the International Labor Organisation.

 The United States said in a letter to the ILO dated January 19, the  last day of the Clinton administration, it had imposed diplomatic and  economic sanctions on Burma but there was no evidence suggesting forced  labor had ended.   U.S. government said that ``in the absence of significant and measurable progress, ILO members, including the United  States, should be prepared to consider additional measures, including  trade sanctions...''

"Reuters" March 20, 2001

Clashes between Thai and Burmese troops along the disputed border look set to continue indefinitely

The latest Thai-Burmese border conflict is expected to dominate a Regional Border Committee meeting in Keng Tung, Burma on April 2-4.  Tensions between the neighbouring countries heightened after Burmese  troops seized a Thai military base in Mae Fah Luang district in Chiang  Rai, on February 9. The hillside base has enabled Burma to shell the  rival Shan State Army. Lt Gen Watanachai said he would propose that both sides remove their  troops from the disputed areas pending negotiations on demarcation.

"Bangkok Post" March 25, 2001

Burma stocks up on ammunition

Burma is obtaining through international dealers a significant  quantity of 82mm smoothbore mortar ammunition, apparently intending  to replenish its supplies in the face of continuing border tension  with Thailand.  The shipment involves some 50,000 to 100,000 mortar bombs that  should cost Rangoon around $2 million. It originates from Vietnam,  although Hanoi may be unaware of its ultimate destination. A Vietnamese-flagged ship was due to land the ammunition in Thailand  in mid-March for covert trans-shipment to Burma, Bangkok- based intelligence sources informed Jane's Defence Weekly.

"Jane's Defence Weekly" March 21, 2001

Salween project dusted off

The Salween dams project, a 20-year-old water diversion scheme, is being dusted off by the new Thaksin government in Thailand.  Thailand's Department of Energy  Development and Promotion is taking up the project to  find ways to fight drought and fill up the drying Bhumibol reservoir in Tak province. The multi-billion dollar dams on the Salween river would be in Burma's Shan State.  Burma has been carrying out wide scale forced relocations and military offensives in the area-possibly in connection with the planned dams--resulting in many villagers being forced into portering for the army.

"Bangkok Post" March 21, 2001