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BurmaNet News; January 9-11



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BurmaNet News: January 9-11, 1994
Issue #94

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Contents:

1 BKK POST: LETTERS TO THE EDITOR: ILL-TREATMENT
2 BKK POST: RANGOON TARGETS KNU HEADQUARTERS
3 BKK POST: PASSAGE CLOSURE PUTS THE SQUEEZE ON DRUG WARLORD
4 NATION: 19 DIE FROM ILLICIT LIQUOR
5 BKK POST: KHUN SA ARMY ADMITS LINK TO DRUG SUSPECTS
6 BKK POST: BORDER CROSSING OPENS FOR BURMESE TRADERS
7 NATION: SAI LEK, SHAN LEADER DIES 
8 BKK POST: SHAN GUERRILLA LEADER DIES AFTER LONG ILLNESS
9 BKK POST: UCOM EYES NEW PROJECTS IN BURMA AND MALAYSIA
10 NATION: KHUN SA IN THE THREAT TO DISRUPT ECONOMIC SCHEMES
11 BKK POST: BURMA TO SELL OFF MORE STATE FIRMS
12 NATION: INTERVIEW WITH MALAYSIAN FM ON SOUTHEAST ASIA

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BKK POST: LETTERS TO THE EDITOR: ILL-TREATMENT
9 January 1995

We belong to Group 197 of the French section of Amnesty Inter-
national and wish to darw your attention to the cease of
asylum-seekers in Thailand.

Before expressing our concern, we would like to thank your
government for having generously welcomed hundreds of
thousands of refugees for the past 40 years.

However, the attitude of your government has recently
undergone a drastic change. All refugees considered as illegal
immigrants can be arrested, detained and deported. some
asylum-seekers have been taken to local police stations,
registered and made to sign a document they could not
understand as there were no interpreters. They have been
transferred to IDC in Bangkok where conditions are very harsh
because of overcrowding. Some refugees can't lie down to
sleep, food rations are inadequate and as children do not
qualify for them, their mothers have to share with them.
When refugees are taken to court, the charges are read out in
Thai and no translation service in provided. Asyslum-seekers
have no opportunity to sate why they are in the country. Some
(particularly from burma) have been forcibly returned to their
country.

That and the situation in the so called "safe-areas" make us
think it is urgent that Thailand reconsider her attitude to
the whole problem of asyslum-seekers. (TN)

Slorc should free Suu Kyi this month

THE military junta which runs Burma faces another serious test
in coming days. The Slorc must decide whether to obey its own
law and free its most famous political prisoner by January .
That is the day the official order detaining Aung San Suu Kyi
made the serious error of winning a free election in Burma in
1990. For that, she was placed under house arrest. Her three-
year confinement has been extended only by inventive
"reinterpretation" of the law by Slorc leaders.

There seems little reason to believe the Rangoon junta will
obey its own laws. Still, there is always hope. Mrs Suu Kyi is
a Nobel Peace Prize laureate, and a cause celebre throughout
the free world, including Thailand. There are increasing signs
SLORC wishes to move Burma from its long-time isolation and
join the world community. The generals who lead the regime are
well aware of the price. Before the regime will be admitted to
full membership inn the world community, Mrs Suu Kyi must go
free. In addition, the Burmese regime must ease the harsh
civial rights violations of its citizens.

In recent months, senior officials from the United States,
Britain and the United Nations all have visited Rangoon for
talks. The so-called "Secretary One" of SLORC, Maj-Gen Khin
Nyunt, has said the conversations were "positive." The
visitors appeared to aggree. The regime also has said it is
considerinh allowing a delegation of the International
Committee of the Red Cross to visit hospitals and prisons in
Burma. Cleraly, SLORC leaders want to move Burma out of its
black days, and to make some economic  gaons for its
longsuffering population. Just as clearly, however, it is
fearful of losing power.

None of the visits to Burma by outsideers in late 1994 was as
healthy a sign of change as meetings between SLORC and Mrs Suu
Kyi. Twice, in October and november,  the diminutive political
leader met with Secretary One himself. Almost no details of
the meetings are known even now. Maj Gen Khin Nyunt told a
British reporter the meetings were held "because of the long-
term interest of the nation." It may be getting through to the
men who seized power in a bloody revolution in 1988 that they
will not be welcome in polite diplomatic company until Mrs Suu
Kyi is released.

The price of using violence against the Burmese now arrears
clear to SLORC. Although approches have differed, almost every
nation in the world has pressed the junta to release Mrs Suu
Kyi and to work towards reconciliation in the nation.  Two
different approaches each have had their successes. Some
nations, particularly Western Ones, have pressed economic and
diplomatic sanctions on Rangoon. Others, including Thailand,
have opted to use "constructive engagement."  Virtually all,
however, have made it clear that normal relations could not be
expected so long as the burmese junta continued to use
violence against peaceful citizens.

This pressure must continute.  It was disappointing that
Chinese prime minister  Li Peng passed up an opportunity to
use his country's special relationship to push for fair
treatment for Mrs Suu Kyi. However, this must not cause other
diplomats, including our own, to pause in their efforts to win
freedom for the 1990 election winner.  It is important that
Mrs Suu Kyi has never called violence in her country. Neither
has she been charged with any violation of the law. Since she
was detained, SLORC has broken her National League for
Democracy (NLD) party. She has repeatedly offered to discuss
any topic with the regime, except the possibility of her
departure from Burma. 

Slorc leaders should carefully consider releasing Mrs Suu Kyi
on January .  The ramifications of extending her house
arrest yet again will be serious indeed. If the opposition
leader is kept under arrest, Burma will only confirm its
status as a pariah state in today's world.
Her lease, on the other hand, will be taken as a positive sign
the regime is serious about reforming itself. Much will still
remain to be done by the Rangoon regime. Its human rights
abuses are legion. Mrs Suu Kyi has become the main symbol of
hope for a resurgent Burma, which will become a democratic
nation with free citizens. While SLORC must reverse many
excesses such as arbitrary arrests, forced labour and torture,
it can demonstrate it is serious in only one way. The regime
must release Mrs Suu Kyi, and January  is the obvious day to
do that.(BP)

**********************************************
BKK POST: RANGOON TARGETS KNU HEADQUARTERS
January 9,1995
Tak

Rangoon soldiers have continued to launch heavy attacks
against Karen National Union (KNU) positions near the
Thai-Burmese border opposite Tak's Mae Sot district, with the
aim of capturing its headquarters by this coming dry season.
A border official said yesterday that Burmese troops from
Pa-an, capital of the Karen state, led by Col Sein Win, have
been ordered to capture the KNU's Kawmoora camp.

Chairman of the Local Thai-Burmese Border Committee (Thai
side), Col Direk Yemngarmreub, was also invited to discuss the
border situation with senior Burmese officials at Myawaddy.
Col Direk informed the meeting that Thailand will not
intervene in the Burmese crackdown on the rebels which Bangkok
sees as Burma's internal affair.

But Thailand will put its troops on alert along the border to
beef up security for villagers and to maintain its
sovereignty.

Col Direk told the meeting that if there is any intrusion into
Thailand by either force or firing, Thai troops will take
steps to correct the situation by firing warning shots.
"Anyone who flees across the border into Thailand will be
disarmed and detained," he said

The Third Army Region yesterday noon ordered Thai border
troops equipped with heavy weapons to prepare to provide
protection for villagers living along the border.
Thai border patrol police and rangers and 105mm artillery
pieces have been positioned near Mae Sot since mid-December
last year, the source said.

On the other side of the border, about 1,500 Burmese troops
have been stationed in front of Kawmoora camp and have shelled
it continuously since mid-December, the source added.
Two 1mm artillery pieces and troops have also taken up
positions near Myawaddy-Tingkanyinaung route.

About 1,000 porters from border provinces, including Myawaddy
have been recruited to transport supplies.

The KNU, in turn, had placed about 700-1,000 troops in
defensive positions and fired artillery in counter-barrage
operations.

The border official also said Burmese troops had exploited the
internal conflict between factions inside the KNU by stepping 
up operations to capture the rebel base. (BP)

**********************************************
BKK POST: PASSAGE CLOSURE PUTS THE SQUEEZE ON DRUG WARLORD
by Subin Khuenkaew (Chiang Mai)
Jan 9, 1995

DRUG warlord Khun Sa's supply lines through Thailand are
slowly being strangled following the closure of a vital border
passage six months ago.

The closure of a ckeckpoint on  the Thai-Burmese border  at
Ban Mai in Mae Hong Son's Muang district has squeezed Khun Sa.
It is the only channel through which essential supplies for
his muang Tai Army  and Shan people are transported across the
border from Thailand.

Closure of the border passage, which began six months ago, is
part of the Government's security policy, a border surce said.
Necessities denied to Khun Sa include rice, other food,
medicine and cloth.

The closure put an abrupt end to the supply of vital goods
worth more than 10 million baht a month, the source said.
Thai traders affected by the order have tried in vain to seek
relaxation of the order through the Mae Hong Son Chamber of
Commerce.

The trade ban has doubled the prices of essential commodities
on the other side of the border.

"We allow villagers to take goods out of the clountry which
are necessary for daily consumption.

"We do not allow deliveries of large quantities of goods for
commercial purposes. This is in compliance with an order from
our superiors," said a border patrol policeman at the Ban Mai
checkpoint.

Ban Mai checkpoint is about 45 kilometres north of Mae Hong
Son town and is manned around the clock by BPP, army-trained
rangers and provincial police.

A Thai trader said this checkpoint was frequently closed
during fighting between Rangoon troops and rebels in Burma.
However, this was the longest it had ben closed and here was
no apparent reason, he said.

Prince Gan Jed, chairman of the Shan State People's Assembly,
said Khun Sa felt he was being pressured by the Thai
Government to hold truce talks with the burmese government.
"We are not in a position to negotiate with the Slorc because
the Shan State people do not agree to this," said Prince Gan
Jed, who said he had been told by Thai authorities to hold
talks.

He said during the past meeting of the Shan State People's
Assembly none of its members agreed to comply with Thailand's
demands.

Prince Gan Jed did not reveal the identities or positions of
the Thai authorities concerned.
Reports have circulated since the start of the year that
Burmese government forces will attack the headquarters of Khun
Sa's MTA.  

IN may last year, Rangoon troops launched an offensive against
the MTA by a attracking theire positions along the Thai
Burmese border and conducted air strickes on Maung Jod, about
40 kilometers from the Thai border opposite Waing Haeng sub-
district, and Doi Kongmon, which are about fours walk from the
Thachilake border chachpoint opposite Mae Sai district of
Chaing Rai.

The offensive was said to be the biggest in 30 years.
The attack caused Khon Sa to strengthen his defense forces and
to capture more areas to stop the BUrmese troops from getting
close to the MTA headquarters.

"After that offensive, MTA soldiers were able to operate in
more than 80 % of the entire area of Shan State," according to
Col Khun Deuan, a high-level MTA officers.
It remains to be seen whether Khun Sa's headquarters will be
attacked.

The arrest of ten Haw Chinese drug trafficking suspectsin
different localities in Mae Hong Son, Chaing Mai and CVhaing
Rai last NOvember is an indication that an offensive against
Khun Sa will possinility be renewed.

Thge arrests were made after a request by the United States
Drug Enforcement Adminstration.

Thai courts are still considerring whether to extradite them
as requested by the US.

China has reportedly agreed to provide Burma with 40,000 AK 47
assault rifles and 8,00 parachutes in addition to assistance
in many other fields.

During a visit to China to last September , Senior Burmese
junta member  Lt-Col Khin Nyunt was warnly welcomeed by
Chinese officials.

Nevertheless,if it is to launch a major offensive against the
MTA, the Burmese government will need a lot of money.
MTA sources said Khun Sa said has so far not reacted to the
reports his headquarters may soon be the main target of
attack, but he is known to have met more frequently with his
high-level military staff. (BP)


**********************************************
NATION: 19 DIE FROM ILLICIT LIQUOR
January 10, 1995

Rangoon-Nineteen people have died and 27 others are seriously ill
in hospital after drinking an unidentified substance they
believed to be bootleg liquor, the official Mirror daily reported
yesterday.
Two illicit liquor shop owners and a fisherman who sold them the
drink were under arrest in Dallah township, across the Rangoon
River, the report said.

The fisherman, Than Tun, told police that he had found what he
thought was country liquor floating down the river in a plastic
container and sold it to the shop owners, the Mirror said.
Eleven people died after they could reach hospital following
intense vomiting and loss of eyesight, and eight others succumbed
after admission, the report said. (TN)

**********************************************
BKK POST: KHUN SA ARMY ADMITS LINK TO DRUG SUSPECTS
January 10, 1995

At least two of 10 ethnic Chinese arrested in northern Thailand
in November on suspicion of heroin trafficking are linked to
Golden Triangle warlord Khun Sa, a senior member of his Mon Tai
Army (MTA) said yesterday.

Thai and United States narcotics suppression officials said the
10 men, scheduled to appear at a preliminary hearing in a Bangkok
court tomorrow, were leading members of the opium warlord's
organization.

MTA Col Duan told Reuters by telephone yesterday that two of the
detained men were Khun Sa's, but denied they were senior
officials.

"I can only recognize two of them, Chalee and Som Wang, but they
are not at the high level which the US made them out to be," Duan
said.

Khun Sa, said by the US Drug Enforcement Administration (DEA) to
be the world's number one narcotics criminal, denies dealing in
drugs, saying he only taxes drug traders passing through his zone
of control to support his political objectives.

Som Wang, alias Liu Fengte, and Chalee Yangwirikul, were seized
in November along with eight others after a New York court issued
indictment warrants against them.

Thai police are detaining the suspects pending a court ruling on
whether all or any of them can be extradited to the United
States.

Col Duan said the Rangoon junta's latest military campaign
against Khun Sa had backfired, strengthening the warlord's image
as a Shan autonomy leader.

"Khun Sa's popularity among the Shan people has increased since
Burma attacked us last May," said Duan, adding that anybody who
fought against Rangoon would be a hero among the Shan.
"We have deployed troops and expanded our areas of influence in
all directions in Shan State."

The ruling body of the Burmese junta, the State Law and Order
Restoration Council (SLORC), has vowed never to accept Khun Sa
into the legal fold even if he tries to surrender.Lt Gen Khin
Nyunt, head of military intelligence and regarded as the ruling
junta's most powerful figure, said that because of his drug
trafficking Khun Sa was an enemy of mankind and the Burmese
people must fight him.Khin Nyunt's remarks, made at a teachers'
conference in Rangoon, were published in the state-run media on
Sunday. (BP)

**********************************************
BKK POST: BORDER CROSSING OPENS FOR BURMESE TRADERS
January 10, 1995

The Provincial authority yesterday officially opened a border
crossing at Buan Huay Ton Nun in Khun Yuam district to boost
trade and commercial links with Burma.The crossing is 30
kilometres from Khun Yuam district town and about 1,5 kilometres
from thr border opposite Ban Mae Jae in Burma.According to Mae
Hong Son Governor Somjet Viriyadamrong, this crossing is the most
secure along the Thai-Burmese border."

But if it is not safe, the province will close it immediately as
we are concerned most about Thai people's safety along the
border," said the governor.It is open for bilateral trade every
Wednesday from 6 a.m.  to6 p.m.  Burmese are allowed to enter
Thailand and trade at the specified market while Thai traders
cannot get into Burma.No passage fee will be collected from the
Burmese, only customs."

It's a one-sided affair as the Burmese government is not ready to
allow  Thai traders to enter its side of the border," said the
governor.About four to five immigration and customs officials
will be stationed at the crossing to provide convenience for
Burmese traders.Aung Kim Mong Taeng, a representative of Doi Koe
Province of Burma, said Burma wants to buy consumer and household
goods from Thailand.He said Burma will sell local agricultural
and naturalproducts to Thai traders. But wood and jewellry are
prohibited from export, he added.He said at the moment it is safe
to trade on both sides of the border, adding that the currencies
of both countries are used (100 kyats is worth  baht).Meanwhile,
the 

Third Army Commander Lt-Gen  Surachet Dechativong, who presided
over the opening ceremony, said the Burmese side is determined to
improve security at this border point.He said if the crossing
turned out to be dangerous, it would be closed.Lt-Gen Surachet
also said there is no possibility to re-open trading points at
Huay Pung opposite of Khun Sa base, or at Ban Nam Pieng Din
opposite of Hua Bong Lao of Burma, as nobody can provide
protection from possible fighting between Slorc soldiers and
minority groups. (BP)                   


**********************************************
NATION: SAI LEK, SHAN LEADER DIES 
January 10, 1995

A leader of a Shan armed ethnic movement died of heart failure
last Friday in opium warlord Khun Sa's headquarters at Homomg.
Informed sources said Sai Lek, chairman of the Shan State
Progress Party (SSPP), who joined Khun Sa's Mong Toi Army last
year as Deputy Commander in Chief, died suddenly on Friday night.
The 54-year-old leader fell ill with minor stomach problems after
Christmas, but his health had improved shortly afterwards. His
sudden death has come as a shock to members of the Shan movement
and the Mong Toi Army.

Sources said Sai Lek's funeral will be held in Homong on
Wednesday.Khun Sa has in the past few years tried to attract a
number of Shan and other members of ethnic groups in the Shan
State, which have been fighting Rangoon for independence or
greater autonomy, to join his Mong Toi Army. His efforts were
seen as an attempt to relinquish his international image as a
drugs warlord and trafficker.
His success in winning over the State Progress Party  was a big
boost to Khun Sa, as Sai Lek and the SSPP were widely recognized
and supported by the Shan population as a true fighter for the
independence of the Shan State from Burmese rule. Sai Lek was b
elieved to have been groomed by Khun Sa as his possible
successor, and his death is a great loss to both the warlord and
his movement.

The Shan leader fled to China for refuge after an internal rift
in his party over peace negotiations with the Burmese junta or
the State Law and Order Restoration Council (Slorc).

Hseu Thaen, SSPP secretary-general, supported the peace talks,
and defected with several hundred troops. He eventually struck a
ceasefire deal with the Slorc, forcing Sai Lek to live in
southern China for several years. Sai Lek was later forced by the
Chinese authorities to leave the country. He re-entered burma's
Shan State last year and later joined with the Mong Toi Army.
(TN)

**********************************************
BKK POST: SHAN GUERRILLA LEADER DIES AFTER LONG ILLNESS
11 January 1995

VETERAN Shan nationlist guerrillas leader Sai Lek has died in
northeast Burma after a long illness, casting uncertainty over
the merger of his own armed organisation with that of opium
warload Khun Sa, guerrilla sources said yesterday.
Sai Lek, who merged his Shan State Progress Party (SSPP) with
Khun Sa"s Mong Tai Army (MTA) last year, died on fried at Khun
Sa's Ho Mong headquarters in Shan State as a result of blood
poisoning.

"Sai Lek has been sick for some time and died last Friday,"
Kuesai Jaiyen, a close aide of Khun Sa, told Reuters by
telephone.

"The death of Sai Lek has shattered Khun Sa's dream to clear
his image as an opium warload," one Shan soure said.
Khun Sa described by the United States as the world's number
one narcotics criminal, has in recent years tried to persuade 
a number of Shan and other armed ethnic groups in Shan State
to join the MTA and fight against the Governemnt.
Sai Lek, who was in his late 50s, was believed to have been
designated by Khun Sa  as a  possible successor, and his 
death was felt equally by the MTA and SSPP, the Shan source
said.

Khun Sa's success in winning over the SSPP was a big boost as
Sai Lek and the SSPP were widely recognized and supported by
the Shan People as true independence fighters.
Sai Lek began his guerrilla war against the Rngoon government
in 1962.

In 1989 the SSPP split and one faction signed A ceasefire deal
with the Rangoon juntas leaving Sai Lek and the rump of the
SSPP little choice but to join forces with Khun Sa, observers
said.

Sai Lek was well respected by other resistance groups such as
the Karen National Union, the Mons and the Kachins.
His wife and children still live in China.Funeral rites will
take place today at Khun Sa's Hua Maung camp opposite Maung
District of Mae Hong Song. (BP) 





**********************************************
BKK POST: UCOM EYES NEW PROJECTS IN BURMA AND MALAYSIA
11, January 1995

United Communications Industry (UCOM) plans to invest in
fibre-optic production in Burma and to take part in a large power
production project in Malaysia, according to president and
chiefexecutive officer Boonchai Bencharongkul.

He said UCOM was prepared to set up a plant to produce fibre-
optic cable at a plant 10 kilometers from Rangoon.
UCOM will take 30% of the shares Leader Cable of Malaysia 30$
and Cap Co, a motorcycle distributor in Burma, 30%. The remaining
10% will be held by the Burmese government.

The company is revising the budget and other detail concerning
the establishment of the plant. After the contract has been
signed, the plant will manufacture cables for export to
neighbouring countries and to supply the local market.
He said the production capacity of the new plant had not been
estimated as the budget had not yet been set.
In addition, UCOM has a project to run a telephone concession
in
India. Now the company has submitted its proposal and handed
over
part of the document to Indian investors. Meanwhile, it is
waiting for a private company in India to collect information
and
study the investment feasibility.

The UCOM group has a plan to invest in digital GSM with the
Vietnam Post and Telegraph Company. UCOM will take a 50% stake
in the project.

If UCOM wins the project, it can sign the contract and set up
the
network  in Ho Chi Minh City and Hanoi within six months
thereafter.

The initial investment is estimated at 1-2 billion baht and
the
investment will brake even within four years.
Vietnam has liberalised its telecommunications by welcoming
foreign investors to invest through the granting  of operation
licences without specifying the expiry date.

He said the company would invest in the energy sector in
Malaysia. The proposal will be submitted to the authorities by
June.

The UCOM consortium consists of Nova Corp of Canada, Delcom
of Malaysia, Ennel of italy and the Sri U-Thong Group of
Thailand. Meanwhile, the proportion of the shareholders has not
been pinned down. Some 35% of the 60% shares will be held by the
UCOM Group and Sri U-Thong Group. The remaining 40% shares will
be held by foreign investors.

In the first stage, the company will import coal from Burma,
Laos and Vietnam to produce power, and will import gas to use
later on. The size of the 700-megawatt power plant in Malaysia
will require US$700 million. (BP)


**********************************************
NATION: KHUN SA IN THE THREAT TO DISRUPT ECONOMIC SCHEMES
11, January 1995

Opium warlord Khun Sa's Shan State Restoration Council has
threatened to obstruct two multilateral economic cooperation
projects which take inn part of the Golden Triangle area
unless their self-styled Shan State is invited to participate in
both the Quandrangle and the Greater Mekong Sub-Region schemes, a
coordinator of for the Shan State Restoration Council (SSRC)
said.

"ON behalf of the SSRC, I would like to call upon
participating countries to hold talks with Shan State as soon as
possible," said Khernsai Jaiyene who is a close aide of Khun Sa
and a SSRC coordinator.

"Otherwise, Shan State which owns the area (the so-called Golden
Triangle - an area overlapping the borders of Thailand,
BurmaandLaos controlled by Shan forces hostile to the
Rangoongovernment)won't be held responsible for anything that
might have adverseeffects on the six countries," said Khernsai
without elaborating further.

Khernsai told The Nation in an interview on Monday that the SSRC
condemned the exclusion of Shan State from both the Quadrangle
Economic Cooperation project - which groups Thailand,
Burma,Laosand China - and the Greater Mekong Sub-Region project
-grouping these last four countries with Cambodia and vietnam -
as aviolation of human rights.

The SSRC coordinator pointed out that none of the six countries
involved in the two projects had thought to consult Shan State
before initiating the ambitious schemes despite the fact that
Shan people occupy a large part of the area taken in by the
projects.The six countries have seriously violated the human
rights of the Shan people by initiating the projects without
first seeking the consent of people occupying the Golden Triangle
area, Khernsai said.Shan State is ready and willing to
participate in the two projects, he added.

"Shan people have their own jobs, and we wouldn't have
anyproblems about participating in these two projects. If
theother[member] countries were to allow Shan State to join, I
thinkwewould greatly benefit the projects," he added.Khun  Sa,
who chairs the SSRC, has announced his willingnesstocooperate
with effort to set up the Quadrangle EconomicCooperation Project,
according to Kherasai. He point out thatthan Shan State covers an
area in excess of 160,000 squarekilometers, and at least one
province - Kengtung is in theareacovered by the Quadrangle
project.

Khernsai played down rumours that the Burmese junta - the
so-called Slorc led by Gen Than Shwe - was preparing for a
bigoffensive against Khun Sa's armed forces known as the
MTA,oncethe dry season begins in February. There have been
noirregularmovements of Burmese government troops in the area so
far thisyear, but the MTA forces are on full alert in case of
surpriseattacks, the SSRC coordinator said.

* In a related development, Finance Minister Tarrin
Nimmanahaeminda said the government will definitely provide
aBt300 million "soft" loan to the Burmese junta to help
financethe construction of a road linking Tachilek and Kengtung,
butsome final details in the loan agreement have not yet
beensettled.Tarrin said he thought Rangoon had decided to turn to
theoffersmade by both the Chinese and the Singaporean governments
toprovide low-interest loans for the same project since
Burmeseofficials regularly contacted their thai counterparts
toinquireabout the progress of this loan agreement. (TN)


**********************************************
BKK POST: BURMA TO SELL OFF MORE STATE FIRMS
11 January 1995

BURMA  has listed dozens of state enterprises from biscuit
makers to goat farms to be sold in the first phase of an ambi-
tious privitisation programme, official media reported yester-
day.

As well as eight textile factories, the Ministry of Light In-
dustry will sell plants making biscuits, noodles, monosodium
glutamate, leather goods, matches and paint.
The Ministry of Heavy Industry will sell three machine tool
plants and one dry cell battery factory.

A condensed milk plant, sheep and goat farm, canning factory
and all-purpose farm will be sold by the Ministry of Livestoke
and Fisheries.

The Minister of Trade will sell two ricebran oil factories and
the machinery from two cooking oil refineries.
As well As listing the assets to be sold, the Slorc set up a
privatization commission and a value assessment committee.
Head by military intelligence chief, Lt-Gen Khin Nyunt, the
privatization  commission groups the Minister of Light and
Heavy Industry, Trade, Labour, livestock and fisheries, mines,
Transport and Information.

The new owners of the enterprises will be obliged to retain
the current staff if they wish to stay, media reports said.
Soon after seizing power in 1988, the Slorc formally ended 26
years of homespun socialism which foreign economists asid had
virtually paralysed the once-thriving country.
Mean while, deputy minister for hotel and tourism said invest-
ment in Burma's hotel and tourism industry exceeds $600 mil-
lion, second only to the energy sector, and it creating much-
needed accommodation ahead of a designated tourism push next
year.

In a speech at a party held by new carrier Air Mandalay Ltd on
Monday night, Bri-Gen Tin Aye said that 16 foreign hotel pro-
jects were in progress throughout the country.
"There are presently 1786 rooms in Rangoon and 1250 rooms in
Mandalay In 1996, there will be more than 5,000 rooms
altogether," he said.
The Rangoon governemtn has designate 1996 as Visit Myanmar
(Burma) Year and expect 500,000 tourists next year. More than
50,000 people visited Burma in 1994.

Some observers doubt that the governemnt can attract such a
large number of tourists next year given the constraints of
the country's infrastructure.

Tin Aye said measures being undertaken ahead of 1996 included
simplifying entry formalities by granting 28-day visas on ar-
rival to group tours and passengers on charter flight and
cruise ships. (BP)

**********************************************
NATION: INTERVIEW WITH MALAYSIAN FM ON SOUTHEAST ASIA
Asean key to region's peace, prosperity
11 January 1994

Tan Sri Ahmad Kamil Jaafar, permanent secretary of Malaysia's
Foreign Ministry, talked to kulachada Chaipipat and Yindee
Lertcharoenchok over the weekend. here are excerpts of his
views on peace and security in Southeast Asia.

Q: What is malaysian view of the security in Southeast Asia?

A: We (Asean) are very encouraged by the development in our own
region. I think if we can continue to promote the kind of
situation we have here, we can look forward to a peaceful and
prosperous Southeast Asia. Vietnam will soon become a member
of Asean. Laos and Vietnam have signed the Treaty of Amity and
Cooperation, and Cambodia has asked to accede to the treaty.
Sooner or later Burma will also move towards signing the
treaty of Amity. Eventually all the countries in the region
will become members of Asean.

This is our objective. The Bangkok Declaration (issued at the
inception of Asean) for example talks about all the countries
in Southeast Asia becoming members of Asean.

Asean constructive engagement with Burma has to some extent
produced results, for example there is movement in Burma
itself, not only politically but also economically. We
certainly hope that the movement towards reform in both areas,
both political and economic, will move at an even faster rate
or peace. In the beginning when Asean put forward the
philosophy of constructive engagement, there were a lot of
cynics particularly in the West. But people are changing now
because there is a culture in Asean_in Southeast Asia_ which
not many of our western friends understand, but they are
beginning to learn from us to deal with our own region. For
example, Australia has already changed its position.

They no longer believe in sanctions or isolation of Burma. The
United States has sent a delegation to Burma, so to some
extent Asean has influenced the movement or the perception of
our friends in the West.

Looking at Southeast Asia as a whole I am very very
encouraged.

But while there is a general consensus that peace and security
has prevailed in Southeast Asia to a certain extent, some
countries in the region are still concerned with some regional
flashpoints or potential areas of conflict.
Well, I would not say there are flashpoints. There is perhaps
one flashpoint, the South China Sea. But the manila
Declaration has talked about resolving all issues relating to
the South China Sea through negotiations without the threat or
the use of force. We will pursue this line with our friends.
True, there is a problem in Cambodia, but I think this problem
is not insurmountable. I think if the Cambodian government is
given some help or assistance in combatting the insurgency of
the Khmer Rouge, that problem would be out of the way_or out
of our way very soon.

Q: Some Asean countries have expressed concern that political
instability in Burma could could escalate into a regional
conflict?

A: I do not see Burma as a potential conflict area. Sure, there
is an internal conflict, but I doubt if it will reach that
point, because in the end if Burma moves toward reform and
resolve problems with its ethnic minority groups, it cannot be
worse than it is today.

It can only improve. At least the authorities in Burma are
thinking in terms of how to bring the various groups together
in the kind of national reconciliation. It may take time. In
Malaysia, for example, it took us many years before we put
different ethnic groups, different communities together. It
will take many years, but it is the only road.

Q: What would be the criteria for Burma to become a member of
Asean? It seems that Burma might be the last country to join
the grouping. Does Asean have any timeframe for Burma to
become a member?

A: We have no time frame for Burma or for any country. It is up
to them to decide whether they want to join Asean. Once they
decide to join Asean, they must subscribe to the criteria of
mambership of Asean and Asean will look at it together. When
we signed the Bangkok Declaration setting up Asean, our vision
then was that all the 10 Southeast Asian countries would join
together into one grouping. That was the vision of our leaders
at the time, and that vision has been followed through.
Vietnam, Laos and Cambodia now moving toward that.

Q: Will the criteria for all new members be the same?

A: I think as we evolve, it may change. We are already thinking
of Asean Free Trade Area (Afta). How soon and how fast Laos
and Cambodia can subscribe to Afta would be something that we
must look at. Maybe we can talk in terms of partial acceptance
or partial subscription to the principles of Afta. You cannot,
I think, by one stroke of a pen open up Laos, because laos
needs a lot of help. Laos is very far behind if you compare
the country to other Asean countries. There must be a
philosophy which allows for give and take. Asean should not be
rigid in applying rules and criteria.

Q: In the case of burma, does it need to have political
improvement before it can apply to become a member of Asean or
to accede to the Asean Treaty of Amity and Cooperation?

A: That is what the West wants to do, but that is not what we
want to do. What happens in a country is an internal matter
for that authoprity to handle.

Q: So the Burmese junta or the State Law and Order Restoration
Council (Slorc) could be accepted as a representative of
Burmese authority by Asean, then?

A: If certain national policies, the movement toward reforms, if
all these subscribe toward regional growth, it is fine with
me. I am not going to tell Burma you do this, you do that
before you join Asean. Who are we to tell anyone within this
region to have the same perception on internal security,
internal stability than the authority of that country itself.
They must decide themselves.

Q: How do you see China's influence in Burma and in mainland
Southeast Asia, especially military influence in the region
through arms deals with Burma?

A: If you talk about economic invasion, there is already a lot of
economic invasion already in Asean. Look at the number of
Japanese companies, look at the number of American companies.
Look at the amount or the volume of investment in all Asean
countries_ perhaps not Brunei_ the dominance of Japan. And
certainly when China becomes a modern country and economically
strong, whether you like it or not you are going to feel the
influence of China just like we feel the influence of Japan.
You cannot run away from it . The question now for us is how
do we manage these influences. If we can manage all these
influences, I think we shouldbe all right.

Just like we have been managing the influence of Japan, the
United States and European Union, so long as the influence of
all these external economies or countries are not negative
influences.

Q: How much has Malaysia detected the military influence of China
in Burma?

A: Burma has got its own ordnance industry, its own defence
industry which is one of the best in our region. Burma is not
the only country purchasing arms and so on from China. There
are many other countries. It is cheaper than the West and it
is equally good. I don't see why we should not go to our close
neighbours to do our shopping. In the end it was down to
economic factors.

You talk about how to manage the influence of major economic
powers like Japan. What will Asean look like in the year 00?

Q: Is it necessary that Asean should grow bigger to cope with the
growing influence of China?

A: Asean cannot get bigger than the 10 countries. there are
mechanism for working toward peace, stability, security and
economic growth and the Asean Regional Forum is one of the
mechanisms. As long as we are managing our security, political
will must underpin our economic development.

Q: Maybe the fear of Chinese influence is not so strong at this
point; what about in the next century when China turns into an
economic power?

A: As I said it is a question of how we manage our relations. The
mechanisms are there, for example ht e Asean Regional Forum. I
don't think China wants to be irresponsible. China wants to
play a constructive role, because it is also in the Chinese
interests to see there is peace and a secure situation in our
region. It would not be in  their interests to destablize the
region.

Q: But it seemed that from what officials have discussed inn the
past few days, China still causes many concerns to the regional
countries, in the development of long-range equipment.

A: Yes, we look at our region of sougtheast Asia and if you look
at our neighbours there are certainly moves to modernize our
defence stability. We cannot tell anyone not to modernize
their defence, but so long as we work, we sit down comfortably
together to to talk and discuss our potential issues together, I
don't think China would want to do anything  foolish. China
does not need to do that because when it become economically
powerful, the economic power alone will influence. We will sense
the influence of China.

They don't have to send their blue water navy. I would like to
look at the situation in a very positive way. After they Cold
War, I see a positive trend toward developing relations toward
sustaining those relations, moving toward provding our neighbours
with baisc needs of modern society, and China is exactly
doing that. As I said some year ago, now it is the situation
where we must seek out friends and build on that friendship.

There is a new concept that after World War II, China was
targeted as a new emerging enemy.

I don't see china as a threat - economic or military .I would
accept the possiblity that we will feel the influence of China,
stronger and stronger as China becomes economically powerful.

But we have to engage China in constructive relationship as we
have constructive relations with the  United States. We feel the
power of the United States, very strong US influence
because it is the only superpower at the moment and a lot of
the United States. In  the old days we had a choice, but now we
don't have any choice . In the old days if you didn't like
the Americans, you went to the Soviet Union.  


Q: What is your opinion about the US request to find a strategic
location for prepositioning its ships or equipment in the re-
gion ?

I do not believe in foeign military presence . I do not sub-
scribe to that philosophy. At the moment I see force as a
threat.THere is a Cold War mentality. I think we have got to
change our mondset in order to take into account the reality
of post-Cold War situation.

If Malaysia does not see China as a threat, what about Asean a
a whole?

There are, of course, different perceptions. Each country will
perceive the situation in a different way, looking at it from
their own strategic considerations and national experience -
and certain six countries cannot have a one common perception.
But certainly there are common grounds, open divergence of
views and a number od issues where all of as have a common
goAl. Our common goal is peace and stability in the region.
Do you mean to say that the majourity of Asean members still
have strong fears of China's influrence in the region?

I won't say majority . I would say some of us have a different
perception from Malaysia.(TN)

**************************************************************
NEWS SOURCES REGULARLY COVERED/ABBREVIATIONS USED BY BURMANET:

 AP: ASSOCIATED PRESS
 AFP: AGENCE FRANCE-PRESSE
 AW: ASIAWEEK
 AWSJ: ASIAN WALL STREET JOURNAL
 Bt.: THAI BAHT; 25 Bt.3 DUS$1 (APPROX),
 BBC: BRITISH BROADCASTING CORPORATION
 BI: BURMA ISSUES
 BKK POST: BANGKOK POST (DAILY NEWSPAPER, BANGKOK)
 BRC-CM: BURMESE RELIEF CENTER-CHIANG MAI
 BRC-J: BURMESE RELIEF CENTER-JAPAN
 CPPSM: C'TEE FOR PUBLICITY OF THE PEOPLE'S STRUGGLE IN MONLAND
 FEER: FAR EAST ECONOMIC REVIEW
 IRRAWADDY: NEWSLETTER PUBLISHED BY BURMA INFORMATION GROUP
 JIR: JANE'S INTELLIGENCE REVIEW
 KHRG: KAREN HUMAN RIGHTS GROUP
 Kt. BURMESE KYAT; 150 KYAT3DUS$1 BLACK MARKET
                   100 KYAT3DUS$1 SEMI-OFFICIAL
                   6 KYAT3DUS$1 OFFICIAL
 MOA: MIRROR OF ARAKAN
 NATION: THE NATION (DAILY NEWSPAPER, BANGKOK)
 NLM: NEW LIGHT OF MYANMAR (DAILY STATE-RUN NEWSPAPER, RANGOON)
 S.C.B.:SOC.CULTURE.BURMA NEWSGROUP
 S.C.T.:SOC.CULTURE.THAI NEWSGROUP
 SEASIA-L: S.E.ASIA BITNET MAILING LIST
 SLORC: STATE LAW AND ORDER RESTORATION COUNCIL
 USG: UNITED STATES GOVERNMENT
 XNA: XINHUA NEWS AGENCY
**************************************************************