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Burma News Update, 11-06-96



11Jun96 BURMA: ISRAELI, S'PORE FIRMS DISCUSS MYANMAR TIE-UPS.
By Loh Hui Yin.

ISRAELI firms are discussing joint ventures with their Singapore
counterparts to tap the emerging market in Myanmar, mainly in the
telecommunications, agricultural and gems industries. Although
Israeli-Singapore joint ventures in Myanmar may seem an unlikely partnership
at first sight, the two are not such strange bedfellows. As Dov Geva, first
secretary, commercial affairs, at the Israeli Embassy here puts it: "Our two
countries have a good relationship. A lot of Singapore business has been
exposed to Israeli technology. It is probably the best partner from the
region to go with. "Singapore firms are keen to support such investments and
we are keen too," he said in an interview with BT, but declined to give
details. Such tie-ups dovetail with Singapore's policy of positioning itself
as a partner with other foreign firms which want to enter the new growth
markets of this region. The Republic, he added, is the only country in Asia
which has a research and development agreement with Israel. Besides
Thailand, Mr Geva's brief includes Myanmar and the Indochina countries. Such
joint ventures would see Israel offering technology and management while the
Singapore side would provide the financing. The three sectors are identified
based on Israel's technical strength and Myanmar's desire to upgrade its
domestic industries. Israel has maintained an embassy in Yangon since 1953.
For instance, Israel is a major producer of gemstone-cutting equipment while
gems exports is a major economic sector that Myanmar wants to exploit to
improve its foreign exchange earnings. Similarly, Myanmar's backward
agricultural sector suffers from a lack of new high-yielding strains and
other support facilities like storage and packaging for export, expertise
that Israel can offer. South Korea is the other country from Asia which in
the last couple of years has become gung-ho about co-investing with Israeli
firms in Myanmar. "Conglomerates such as LG (Lucky Goldstar), Hyundai are
discussing with Israeli firms," said Mr Geva. "These two countries are keen
and so why not take a ride with them?" On Israel's trade links with
Thailand, Mr Geva noted that diamonds comprise half of the two-way trade.
Thailand, a major jewellery centre, sends its uncut diamonds and gem stones
to Israel for cutting and polishing after which those are re-exported to
Bangkok. The next most important Israeli exports are machinery, accounting
for 30 per cent of total exports to Thailand. Israeli exports were worth
US$256 million (S$360.5 million) last year. As for Thai exports to Israel,
it was US$261.5 million in 1995. Diamonds accounted for half the value,
followed by processed food and other agricultural products and textiles. 
SOUTHEAST ASIA 
BUSINESS TIMES (SINGAPORE) 11/6/96 





11Jun96 PHILIPPINES: U.S. ENVOY LOOKS TO ASIAN SOLUTION TO BURMA CRISIS.
05:34 GMT                By Ruben Alabastro

MANILA, June 11 (Reuter) - Political tensions in Burma are an Asian problem
and require Asian solutions, a U.S. special envoy said on Tuesday. "This is
first, last and always an Asian situation and Asian solutions, and hopefully
ASEAN solutions, are applicable here," envoy William Brown told Reuters
after meeting Philippine President Fidel Ramos. Brown declined to disclose
details of his meeting with Ramos, the second stop on a six-nation tour by
Brown and security expert Stanley Roth. The Americans were sent by U.S.
President Bill Clinton to discuss a co-ordinated response to tensions
between Burma's military rulers and the democracy movement led by Aung Sang
Suu Kyi. The U.S. envoys arrived here from Japan and will leave for
Singapore later on Tuesday. They are also due to visit Indonesia, Malaysia
and Thailand who, together with the Philippines, Singapore, Vietnam and
Brunei, make up ASEAN (Association of South East Asian Nations). "It was a
very positive meeting and we deeply respect the wisdom that was imparted to
us," Brown said of his meeting at the presidential palace in Manila. "We
remain of course very concerned about the situation (in Burma)... We are all
very hopeful for the prevention of bloodshed and for a reconciliation and
dialogue among those involved," he added. Brown did not give details of what
ASEAN solution was being envisaged. In Tokyo, Japanese foreign ministry
officials suggested Tokyo and Washington could raise Burma during an ASEAN
foreign ministers' meeting in Jakarta next month. They said, however, that
it should be discussed on the fringes of the meeting rather than as part of
the main agenda. ASEAN nations have said they prefer pursuasion than more
confrontational measures in response to the Burmese government's
unwillingness to tolerate dissent. The government, called the State Law and
Order Restoration Council, last week introduced a law providing for up to 20
years in jail for anyone who acts or distributes information deemed likely
to undermine state stability or community peace and tranquillity. It also
threatened further measures against "destructive" activities. Both the law
and the warning were apparently aimed at Suu Kyi's National League for
Democracy (NLD). In the latest of a series of speeches that have attracted
thousands of people to her Rangoon home, Suu Kyi said on Sunday she was
confident of eventual victory. More than 250 NLD members were arrested ahead
of a national party congress late last month at Suu Kyi's home, the first
such meeting since her release from six years of house arrest in July last
year. Most have since been freed but around 30 are still held, including one
of Suu Kyi's close aides.  
(c) Reuters Limited 1996
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