BurmaNet News: July 29, 1997

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The BurmaNet News: July 29, 1997        
Issue #784

Noted in Passing:

Orwellian....illusory and self-serving.....no resemblance to reality.
- US officials on Ohn Gyaw's speech to ASEAN
(see LA TIMES: ALBRIGHT CALLS BURMA AN ANOMALY)

HEADLINES:        
========== 
FEER: ARRESTING PREPARATIONS
LA TIMES: ALBRIGHT CALLS BURMA `AN ANOMALY' IN ASIA
US SEC OF STATE ALBRIGHT: REMARKS AT ASEAN NINE-PLUS-TEN
BKK POST: ALBRIGHT URGES JOINT EFFORT TO PROMOTE BURMA
OTTAWA CITIZEN: CANADA SET TO CUT TRADE TIES  
XINHUA: BENEFITS FROM BURMA'S ENTRY INTO ASEAN NOTED 
THE HINDUSTAN TIMES (NEW DELHI): RESTORE DEMOCRACY
NATION: HARSH WEATHER AND LAWS PUNISH BURMESE
NATION: CURRENCY TURMOIL RATTLES BURMA'S MARKET 
REUTER: BURMA REFUGEES IN BANGLADESH FACE HUNGER
SLORC COMMENT: Re: USIA REPORT ON BURMESE MUSLIM REFUGEES
KNU: WA AND KAREN BATTLE NEWS
----------------------------------------------------------------------------
---------

FEER: ARRESTING PREPARATIONS
July 24, 1997  (Far Eastern Economic Review)

The Burmese authorities are apparently planning to arrest opposition leader
Aung San Suu Kyi but could face opposition from ASEAN.  A cell in the
capital's main jail is being prepared to accommodate what has been
described as "a very important person." The cell is reported to be equipped
with a western-style bathroom. This has led people to believe that it is
meant for Suu Kyi, who spent several years in England before returning to
Burma in 1988.  Sources say that she will not be charged with political
crimes, but for violating Burma's strict foreign-currency regulations.  In
a speech on June 27, intelligence chief Lt.-Gen. Khin Nyunt made a point of
mentioning that in January this year Suu Kyi accepted $80,000 from an
American who represented a pro-democracy group based in the United States.
Other sources suggest that the Rangoon junta's plan to arrest Suu Kyi could
be thwarted by ASEAN intervention. The regional grouping, which Burma is
slated to join in late July, has urged the junta to start a dialogue with
the democracy leader.  So far, however, the generals have disregarded such
overtures.

****************************************************************

LA TIMES: ALBRIGHT CALLS BURMA `AN ANOMALY' IN ASIA
July 28, 1997
By Robin Wright

KUALA LUMPUR, Malaysia -- In an unusually tough diplomatic barrage,
Secretary of State Madeleine K. Albright accused the government of Burma 
yesterday of everything from profiting from drug trafficking to routinely 
closing schools in a bid to prevent political unrest, acts she said
made it ``an anomaly'' in Asia.

Albright felt compelled to ``vigorously'' dispute a presentation by Burma --
making its debut at the annual summit of the Association of Southeast Asian 
Nations, or ASEAN, here -- about the state of affairs in the junta-ruled
nation, 
according to U.S. officials.

One U.S. official called the Burma presentation ``Orwellian,'' while State
Department spokesman Nicholas Burns labeled it ``illusory and self-serving'' 
with ``no resemblance'' to reality.

``Burma is the only member of ASEAN singled out by the U.N. General 
Assembly for refusing to honor election results, the only member where the 
state and society are fundamentally at odds,'' Albright said.

``Burma is also the only member of ASEAN where the government protects and
profits from the drug trade. In fact, Burma's top traffickers have become
leading 
investors in its economy and leading lights in its new political order. Drug
money 
is laundered with such impunity in Burma that it taints legitimate investment.''

In Burma, she noted, owning a fax machine is illegal, while police regularly
arrest legitimate business people in an attempt to stop currency fluctuations.

Albright appealed to ASEAN to take the lead in promoting democratic reforms
and a dialogue between the junta and opposition leaders. The junta blocked 
democratically elected leaders from taking office in 1990.

``We must insist that we work together to promote conditions within Burma
that will lead toward true democracy and permit its genuine integration into
this 
region,'' she said in an official U.S. statement introduced earlier at the
summit. 
``Now more than ever, Burma's problems need an ASEAN solution.''

Unless a ``dialogue of reconciliation'' opens the way for installation of an
accountable government, Burma will remain outside the Southeast Asian 
mainstream and isolated from the global economy, Albright warned. ``This is 
not an admonition but an objective fact we must acknowledge.''

******************************************************

US SEC OF STATE ALBRIGHT: REMARKS AT ASEAN NINE-PLUS-TEN
July 28, 1997  (excerpts)

Secretary of State Madeleine K. Albright
Statement at the ASEAN Post Ministerial Conference
Nine-Plus-Ten Session, Sunway Lagoon Hotel
Kuala Lumpur, Malaysia, July 28, 1997
as Released by the Office of the Spokesman in Kuala Lumpur, Malaysia
U.S. Department of State

The United States is determined to deepen its cooperation with our
partners in this region and beyond. This commitment is solid because
it is solidly based on American interests.

It is not necessary to remind this audience how close the economic
links between the United States and ASEAN are. American investment in
this region now exceeds $35 billion, and it grew by over 200 percent
between 1990 and 1996. Collectively, ASEAN is the United States'
fourth largest trading partner, and our exports to ASEAN support
700,000 U.S. jobs. On my way to Kuala Lumpur, I stopped in California
-- America's biggest exporting state. A full 25 percent of the
products leaving California are destined for Southeast Asian ports.

Nothing has done more to harm the health of our people and their faith
in government and law than the epidemic of drug addiction.

The primary source of these drugs is Burma, which is itself
experiencing an alarming rise in drug abuse and AIDS infection.
Narcotics production has grown in Burma year after year, defying every
international effort to solve the problem. As a result, drug
traffickers who once spent their days leading mule trains down jungle
tracks are now leading lights in Burma's new market economy and
leading figures in its new political order.

We are increasingly concerned that Burma's drug traffickers, with
official encouragement, are laundering their profits through Burmese
banks and companies -- some of which are joint ventures with foreign
businesses. Drug money has become so pervasive in Burma that it taints
legitimate investment and threatens the region as a whole. This is a
challenge we must face together -- and another reminder that it will
be hard to do normal business in Burma until a climate of law is
restored to that country.

Indeed, it is hard to imagine a lasting solution to this region's
narcotics problem without a lasting solution to Burma's political
crisis. This is one reason why President Clinton has barred future
U.S. investment in the country.

[Environmental Protection]
And here ASEAN has another shining opportunity for leadership, because
you have the know how, the proven skills at innovation and adaptation,
that will help us find the technologies we all need for greener
development. I urge you to take up the challenge and to work with the
United States and others to craft a global consensus that will
safeguard the nature preserves of Borneo, the islands of the Mergui
Archipelago, and the livelihoods of our children and grandchildren.

I congratulate ASEAN for all it has achieved in strengthening regional
cooperation in these areas, and in reaching out to others beyond this
region who share the same interests and the same fundamental goals. I
pledge to you my best efforts, and those of the United States, to
ensure we keep moving forward together.

***************************************************************

BKK POST: ALBRIGHT URGES JOINT EFFORT TO PROMOTE BURMA 
REFORMS
July 28, 1997 in Kuala Lumpur

BURNS CALLS FOR TALKS BETWEEN JUNTA, NLD

The United States  yesterday called for cooperation from the
Association of Southeast Asian Nations to ensure political
reforms in Burma and a dialogue between the ruling military junta
and the National League for Democracy .

Secretary of State Madeleine Albright said the ASEAN decision to
admit Burma on Wednesday, which the US respected, compelled
US-ASEAN cooperation,
     
"Now that the choice has been made, we must insist that we work
together to promote conditions within Burma that will lead
towards true democracy and permit its genuine integration into
this region," she told the ASEAN Regional Forum.

Burmese Foreign Minister Ohn Gyaw was among the 21 foreign
ministers at the day-long discussion that also covered the
political turmoil in Cambodia, problems in Korea and the South China Sea.

US State Department spokesman Nicholas Burns called for the joint
US-ASEAN effort to aim at the opening of a dialogue between the
State Law and Order Restoration Council and the NLD.

ASEAN, he said, should use its constructive engagement policy to
encourage the Slorc to talk directly with Aung San Suu Kyi, the
NLD's key person.

"What we do is try to see if all of us working together can
influence the government in Burma to connect with the
democratically elected leadership in the NLD," the spokesman said.

Foreign Minister Prachuab Chaiyasarn said all ARF participants
expected to see democracy in Burma now that it has become an
ASEAN member joining Brunei, Indonesia, Malaysia, the
Philippines, Singapore, Thailand and Vietnam. Laos was admitted
with Burma on Wednesday.

Malaysian Foreign Minister Abdullah Badawi told a press
conference that Burma's membership would enable more ASEAN
engagement with Rangoon.

Ms Albright was most critical about the slow progress towards
democracy in Burma although her counterparts from Australia,
Canada and Luxembourg which represented the European Union made
strong remarks on the point.
     
According to Foreign Minister Prachuab, the Burmese minister said
the constitution drafting process had been delayed by the
writers' attempt to accommodate the interests of diverse ethnic groups.

Largely because the Burmese foreign minister failed to give a
timeframe for the constitution, Luxembourg Foreign Minister
Jacques Poos told a press conference: "I don't feel that Burma's
presentation was credible at all".

ASEAN is due to meet EU today as part of the Post-Ministerial
Conference and one item on the agenda according to Mr Prachuab,
is to convince the EU to include Burma in its cooperation
programme with ASEAN.
-------------------------------------

in a related article in the Nation (ASEAN URGED TO PRESS BURMA)
July 27, 1997: 

ASEAN has made-three specific proposals to urge Burma's junta to carry 
out democratic reforms, senior ASEAN officials said yesterday. 
     
The regional group has proposed that ongoing work on Burma's new
constitution must be completed as soon as possible so that
national elections for the legislature can be held, they said.

The officials said ASEAN has also requested that the junta should
launch a dialogue with Suu Kyi as well as ensure that Burma's
Muslims and other minorities are treated fairly.

The Burmese junta's response to the proposals is unknown.

When Malaysian Foreign Minister Abdullah Ahmad Badawi visited
Rangoon last month, he submitted the proposals to the junta, the
officials said. 
----------------------------------------

in a related article: AUSTRALIA TO STEP UP REFORM PRESSURE 
ON JUNTA (July 28, 1997)

     While Australia has already suspended official aid and military
assistance to Burma, the Government is believed to be considering
the possibility of further sanctions in line with moves by the
United States and the European Union.

The Foreign Minister, Mr. Downer, confirmed moves to toughen
Canberra's Burma policy after a meeting yesterday with the
Burmese Foreign Minister, Mr. Ohn Gyaw, on the sidelines of annual
talks with ASEAN leaders.

During the meeting, Mr. Ohn Gyaw flatly denied there were any
political prisoners in Burma and said talks 10 days ago between
officials of the regime and Ms Suu Kyi's National League for
Democracy were not a precursor to a dialogue on political reforms.
Mr. Downer, who had strongly condemned the regime's human rights
record, was angered when Mr. Ohn Gyaw emerged from the meeting and
told journalists the issue was not raised.

The Malaysian Foreign Minister, Mr. Abdullah Badawi, has confirmed
that ASEAN was continuing to press the Rangoon regime to open a
dialogue on political reform ahead of fresh elections.

Diplomats said senior US and EU officials had told the ASEAN
ministers they were prepared to wait another six months for signs
of progress from the regional contacts before taking further steps against 
Burma.

***************************************

OTTAWA CITIZEN: CANADA SET TO CUT TRADE TIES TO 
BURMA-JUNTA WON'T ACT ON DEMOCRACY, AXWORTHY SAYS 
July 28, 1997  (abridged)
By Jonathan Manthorpe

Kuala Lumpur, Malaysia - Canada is ready to restrict trade and
investment links with Burma if the military regime doesn't soon start
negotiations with leaders of the country's democracy movement.

Foreign Affairs Minister Lloyd Axworthy said here yesterday he is ready to
impose sanctions because all international and regional pressures for
political reform "have been met so far with a deafening silence."

Mr. Axworthy refused to detail his plans, but said they would affect
Canadian investment, trade and financing with Burma, also known as Myanmar.

He added that the plans aim to counter a campaign by the junta, known as the
State Law and Order Restoration Council, to attract foreign and private
investment, including from Canadian ventures, in the wake of Burma's
admission on Wednesday to the Association of Southeast Asian Nations (ASEAN).

The junta leaders "think they can have the best of both worlds," attracting
investment with the credibility of ASEAN membership while refusing to reform
the repressive regime, said Mr. Axworthy. "they have to learn that if there
is no response (on democratic issues) then other rules apply."

He will meet Burmese Foreign Minister U Ohn Gyaw tomorrow morning. "but I
wouldn't look for a burning-bush conversion," Mr. Axworthy said.

Western officials noted a distinct change of mood among the ASEAN ministers,
who in the past have stonewalled international criticism of proposals to let
Burma into the regional economic and political club.

At this meeting the ASEAN members - Malaysia, Thailand, Indonesia,
Singapore, Brunei, the Philippines, Laos and Vietnam - said they told Burma
membership has obligations. They say they are pressing Burma to talk with
National League for Democracy, led by Nobel Peace Prize laureate Aung San
Suu Kyi. 

"The ASEAN countries that are big investors in Burma are getting very
worried because instability is growing, and when you get a government that
is so dependent on the drug trade you begin to wonder," Mr. Axworthy said.

He said the junta now pays its army out of profits from trafficking in
heroin produced in the opium poppy fields of the "Golden Triangle" in the
northern part of the country. 

****************************************************************

XINHUA: BENEFITS FROM BURMA'S ENTRY INTO ASEAN NOTED 
July 23, 1997  (excerpts)

Rangoon, July 23 (XINHUA) -- Burma, after standing alone for several
decades, finally joined the Association of Southeast Asian Nations (ASEAN)
today, opening a new chapter in its foreign relations.

Burma's integration into the regional grouping is seen as not only an
opportunity for the country in the development of its economy and trade and
attraction of foreign investment, but also a challenge to it in commodity
production and market competitiveness, some observers here believed.

Burma's joining of ASEAN would also contribute to the transport sector
of the Southeast Asian region.  The eventual establishment of regional
highway and railway networks would in turn promote the economic development
of the region.

The country's admission into ASEAN also poses a challenge to its
market competitiveness in commodity export since Burma is industrially weak
to produce goods for the purpose.

Observers here believe that Burma's economy would be developed at a
relatively quicker pace with technical assistance and support of other
member countries of ASEAN.

****************************************************************

THE HINDUSTAN TIMES (NEW DELHI): RESTORE DEMOCRACY, 
MYANMAR TOLD  (abridged)
July 28, 1997

India made a strong plea for the restoration of democracy in Myanmar and
Cambodia at the ASEAN Regional Forum (ARF) meeting held here today.

Finance Minister P. Chidambaram who led the Indian delegation urged
Myanmar and other countries to take note of the strength of public and
parliamentary opinion in India with regard to democracy and freedom.

All the countries of the world were treading on the road of freedom and
democracy, he said adding that Myanmar must "come on to that road as
quickly as possible."

Taking note of the Myanmar Foreign Minister's statement that Yangon
intended to usher in multi-party democracy, Mr. Chidambaram said, "it was
our hope that all parties in Myanmar be allowed to participate in the
elections."

The reference here was obvious to Aung San Suu Kyi although he refused
to disclose it to the journalists.

Myanmar should evolve a constitutional Government and polity which
reflects the aspirations of the people, said Mr. Chidambaram.

He said that with Myanmar joining ASEAN India had come very close to the
region as "we share a 1600 km border with ASEAN now."

*********************************************************

NATION: HARSH WEATHER AND LAWS PUNISH BURMESE
July 27, 1997

FARMERS UNABLE TO MEET THE MILITARY JUNTA'S RICE QUOTA ARE
ABANDONING THEIR FARMS FOR JOBS IN THAILAND.

Farmers in Burma were devastated this past summer. Their
predicament was partly triggered by unkind weather conditions -
and partly by harsh policies imposed on them by the ruling junta,
the State Law and Restoration Council (Slorc).

This year's annual rice harvest was down 30 per cent due to
unfavourable weather conditions. Days of heavy rain followed by
unusually torrid conditions reduced the average half-hectare
yield to 50 baskets, compared with a normal yield of 60 to 70
baskets. The average yield for 1995-96 was 62 baskets, according
to government statistics.

More than three million tonnes of rice were reportedly damaged by
the bad weather, according to rice farmers in lower Burma,
although the country's military authorities have been
tight-lipped about the real situation.

Yet the climate is not alone to blame for the unprecedented
hardship rice growers are facing. Rising overheads coupled with
forced sales to the government at an outrageously low price have
forced many of them to abandon traditional subsistence farming
and seek alternative ways to make a living, such as becoming a
cheap labourer in neighbouring Thailand.

The military junta in Rangoon insists that, no matter what the
weather, all rice farmers in the country meet their annual
required sales of 12 baskets per half-hectare to the state.

In addition, they have to sell at the nominal price of 70 kyat a
basket (approximately 21 kg), compared to the 500 to 600 kyat a
basket of unhusked grain can fetch in the market.

The situation is worse in the country's hard-hit Mon state where
a prolonged deluge destroyed young crops before the harvest
began, resulting in an acute shortage of grain in many areas.
That left hundreds of subsistence farmers from the region facing
a harsh reality- their inability to meet their annual obligation
to the government means they failed to observe the law and
therefore committed an offence against the state.

Those who failed to meet their quota face arbitrary punishments,
and Slorc has been far from lenient. Punishments vary. First, the
farmer's rice barn is plundered. The local authorities seize and
take away all paddy and rice in sight. That leaves the farmer's
family with empty pots for the rest of the season. Second,
personal possessions and the house are targeted for seizure if no
rice is found in the storage. Finally, the head of the family is
arrested and imprisoned indefinitely if the other "two measures"
are exhausted.

Farmers face not only the seizure of their property and arrest,
but termination of their 'farming book", a licence which enables
them to grow rice in their own land. Punishments are carried out
by the local military and Ya Wa Ta (the Ward Law and Order
Restoration Council) members, who are fully empowered by Ma Wa Ta
(the Township Law and Order Restoration Council) to make sure
that farmers meet their annual obligation to the state.

Collaborating with the army and Ya Wa Ta are local Peasant Union
members, who themselves are farmers but chosen to represent the
majority of farmers in their respective districts and supervise
farming affairs.

"Ya Wa Ta don't accept any excuses it we can't meet their
requirement," said a farmer from Mudon, a small town in Mon
state, about 320 kilometres southeast of Rangoon. "They say it's
every farmer's obligation to the ,country."

There's no question the military holds farmers accountable for
the country's low output of rice, a major foreign exchange earner
since World War 11.

Slorc is also undoubtedly attempting to re-establish its former
rice-bowl-of-the world status after decades of economic
mismanagement and a xenophobic policy devised by former strongman
Gen Ne Win. In April, Slorc leader Senior Gen. Than Shwe announced
the country was targeting the annual yield at one billion baskets
(21 million tonnes). Government statistics show the country's
rice production in fiscal 1995-96 was a little over 19 million tonnes.

How that target could be achieved under the present
circumstances, he did not say. Instead, the general promised
farmers to turn nine dry districts on the western side of the
Irrawaddy River into farmland by building dams in a seemingly
generous gesture to the peasants.

A few days later, the junta's Secretary Two Lt.-Gen. Tin Oo berated
farmer representatives in Myingyan Township in central Burma for
their unsatisfactory rice yields. He warned that farmers must
"reciprocate to the government's plan to improve their standard
of living by growing rice in accordance with the needs of the
entire nation".

Slorc's order offers little choice for all farmers, Burmans and
minorities alike. The forced sales requirement and the fear of
punishment for failing to comply with it make them unwilling to
grow rice, even for their own consumption which they have done
for centuries.

Now with the military government's new ambitious policy, many
farmers in frontier states such as Mon and Karen have begun to
abandon their farms to avoid the looming trouble and hardship.

At one village in Mon state, at least 80 people have left for the
Thai border since January. They travelled in groups of 10 to 15
people, led by a broker who arranged their illegal cross-border
transportation to employers in Thai cities, where menial jobs
shunned by Thai workers are ample and easy to find.

"Most of my relatives in the village have gone to 'Shan
country'," said one elderly retired farmer of his folks'
desperate search for a job in the country known to them as Shan
rather than Thailand.

Life may be yet another challenge for Burmese farmers beyond
their own frontiers. It is certainly tough but the money earned
in Thailand is far better than back home. For now they can forget
the backbreaking farm work and the fear they face at home,
despite looming uncertainty in Thailand.

********************************************************

NATION: CURRENCY TURMOIL RATTLES BURMA'S MARKET AS WELL
July 28, 1997
By Aung Zaw, freelance reporter

Over the last 10 days the Burmese kyat has declined from 186 to
280 to the US dollar. Last weekend, it fell to 300 kyat. The sudden plunge 
has created chaos and confusion for local and foreign traders.

As there was no independent business reporting on the sudden
currency turmoil the price of foreign imports skyrocketed. A
Toshiba TV on sale at a shopping centre nearly doubled to 25,000
kyat from 13,000 within a week. Last year the kyat was trading at
160 to the dollar. Then it dropped to 200.

"Usually, every Friday morning the rate will decline but in the
evening it returns to normal but this time it looks like it is
going to be over 300," said a trader in Rangoon.

At first, it was rumoured that the kyat would decline to 400 kyat
per dollar before the end of the year.

The official rate is six kyat per dollar. Burmese inside Burma
are not allowed to hold foreign currency and in its place must
use Foreign Exchange Certificates (FECs).

Kyi May Kaung, a US-trained political scientist wrote in a recent
article: "No one knows exactly how many FECs have been issued.
Late last year the official word in Rangoon was that FECs made up
nearly three per cent of the currency that circulated at the
market exchange rate."

However, merchants in Rangoon speculated that the authorities
have printed more than 20 times as many of the paper
certificates. One report said the military government, known as
the State Law and Order Restoration Council (Slorc), was looking
to buy FEC with kyat.

Additionally, many local businessmen in Burma are convinced that
the government will devalue the kyat in the near future. "They
were told to devalue the kyat before becoming a member of ASEAN,"
said one trader. Burma joined ASEAN last week at the ASEAN
Foreign Ministers Meeting in Kuala Lumpur.

In downtown Rangoon, the May shopping market at Pansodan street
suddenly shut down shortly after the kyat plummeted. Rumours
began circulating that well-known businessmen were being
apprehended. One of them was Thein Htun, better known as Pepsi
Thein Htun, due to his control of a Pepsi dealership.
     
It was believed that a few weeks ago Thein Htun withdrew a huge
amount of money from the bank.

The authorities said that businessmen were summoned for
questioning but no one was detained.

As panic gripped traders the government denied rumours that it
will void 200 and 500 bank notes. But the announcement only made
matters worse. Shortly after, the price for vegetables, rice,
oil, gold and petrol increased 10 per cent. One viss of chicken
now sells for 700 kyat up from 600 kyat the week before the
currency turmoil. Many shops at Mingala market shut down as
shopkeepers refused to accept 200 and 500 notes. Those looking to
save money ran to gold shops.

In 1987, the then socialist government demonetised the 25, 35 and
75 bank notes without compensation even though it denied it was
planning to do so. "The kyat is worthless, yesterday it was 15
kyat for a cup of tea. Today it is 18 and they say it will be 20
soon," said one trader.

Instead of solving the problem, the Slorc denied all the
devaluation rumours and said rumour-mongers were trying to damage
the country's economy. Burma's military intelligence chief, Lt.
Gen. Khin Nyunt, said, "Rumours about financial and economic
matters afloat today are totally untrue and this has been
concocted by destructive elements." 
     
The rumour-mongers, the general said, were taking advantage of
the public's lack of knowledge about ASEAN to spread false
information in an attempt to deprive Burma of the economic
benefits it would enjoy once it joined the grouping. But Burmese
are not convinced.

A government office worker said his salary is now 1,500 kyat,
compared to 220 kyat in 1987.

"Before [in 1987] it was quite okay with 220 kyat. Now I can not
feed my family since my salary increased."

But Thailand-based political activists believe that the Burmese
generals will lose their battle with the economy.

"This is because they have no knowledge of how to run an economy.
They only know how to shoot," said student leader Moe Thee Zun.
     
A few months ago, two giant hotels, the Sedona and the Traders in
Rangoon laid off about 400 of their employees because of the lack
of visitors.

"We have no jobs - our families depended on us," said a former
receptionist at the Hotel Sedona. But local traders in Rangoon
also said they believed that Thailand's recent de facto
devaluation had a major impact on the Burmese market as well. 
     
"This is something they cannot control - as the value of the kyat
declines the government will have no choice but to devalue the
currency in the near future," said one economist in Rangoon.

*******************************************************

REUTER: BURMA REFUGEES IN BANGLADESH FACE HUNGER
July 27, 1997
By Nizam Ahmed

CHITTAGONG, Bangladesh, July 27 (Reuter) - Thousands of Burmese refugees in
Bangladesh are on the verge of starvation because their militant leaders
have forced them to reject government-provided food rations, officials said
on Sunday.

The militants have even told mothers among the ``Rohingya'' refugees to
keep their children away from camp feeding centres, one relief official
told Reuters.

``The starvation may cause death to children and the old,'' he said as the
rations boycott, triggered by violence between police and refugees at
Nayapara camp a week ago in which about 20 people were injured, continued.

As desperation grew, hundreds of refugees fled from the Nayapara camp, but
about 25 of them were captured by villagers and handed over to police,
officials in Cox's Bazar, temporary home to the Rohingyas, told Reuters by
telephone.

Bangladesh postponed the repatriation of some 21,000 Rohingyas, the
remnants of 250,000 who entered the country in 1992 to escape alleged
military persecution in their home province of Arakan in west Burma, after
the clashes at Nayapara on July 20.

Meanwhile, efforts on Sunday by a local parliamentarian, Mohammad Ali, to
bring the militant refugee leaders to the negotiating table failed.

``They refused to talk to us unless the meeting is brokered by the UNHCR
relief agency,'' Ali told reporters. ``Local UNHCR officials also avoided a
request from the government and public leaders to arrange a dialogue,'' he
added.

``The militants are forcing refugees to starve only to attract more
international attention after initial UNHCR backing for their demand to
stay in Bangladesh,'' another official in Cox's Bazar said.

``We are acting very cautiously to avoid any clash with the refugees who
want an issue (to inflame their protest). But any death out of starvation
might complicate the matter,'' he added.

Police said the Rohingya militants were trying to provoke law enforcement
officers by chanting abuse and ``obnoxious slogans.''

On Saturday they fortified their camps with bunkers and trenches to thwart
any attempt to repatriate them forcibly. They continued to demonstrate at
the camp gates on Sunday, witnesses said.

The militants on Saturday handed a list of preconditions to Bangladeshi
officials for their repatriation.

They said they would return to Burma only if the Rangoon government issued
them with formal documents of nationality, restored democracy, handed power
to the National League for Democracy leader, Aung San Suu Kyi, and
guaranteed human rights.

The Bangladesh government said on Sunday it was willing to send back 7,000
out of the 21,000 remaining Rohingya refugees who had been cleared recently
by the Burmese authorities, by August 15.

``But it all depends on the refugees and their foreign supporters,'' one
official said in an apparent reference to the UNHCR.

*****************************************************

SLORC COMMENT: Re: USIA REPORT ON BURMESE MUSLIM REFUGEES
July 28, 1997  (excerpts)

	  As mentioned above Bangladeshis who are not Myanmar citizens
                enter our borders an masse, and when immigration checks are
made they
                flee back to their country. But among them are a few Myanmar
Muslims
                who are unjustifiably clamouring for a separate state in
spite of the
                insignificance of their members.

                Such an incident occurred in 1978 when scrutinization was
carried out by
                the immigration authorities. A large number returned to
Bangladesh and
                the UNHCR and certain NGO's decided to give humanitarian
support in
                camps set up for them,

                        But living on handouts from the UNHCR and certain
NGOs has
                become a way of life. For the poor and needy who do not
possess land
                or other means of earning a living is indeed excusable, if
not legal nor
                acceptable. But as pointed out earlier there are those few
who live on such
                charity just for the opportunity of creating problems for
the Myanmar
                authorities where none exist, with their wild accusations of
torture and
                forced labour.

	There are now staff of the UNHCR and certain NGOs on both sides of
                the border. They are in the field, they know the true
situation, but will
	 not speak out the truth. The principle reason is as clear as day light. The
                UNHCR staff appointed for this so called refugee programme
are earning
                good salaries, around fine to six thousand dollars. Plus
expenses for
                accommodation and travelling. So they are really onto a good
thing. As
                long as this immigration problem remains unstable they need
not worry.
                If the problem should be resolved, then they would have to
start job-
                hunting.
                        So, although they know for a fact that there is no
killing, no torture.
                no rape, no forced labour on the Myanmar side of the border,
they choose
                to keep the embers of these false accusations alive in their
own self-
                interest. What they call " Burma Bashing" extends the tenure
of their jobs.

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KNU: WA AND KAREN BATTLE NEWS
July 28, 1997

WA-SLORC BATTLE NEWS

On 8.6.97 a battle between UWSA & SLORC was borken in Meung Hsat township.
Meung Li area. 28 SLORC troops were killed in action. 2 killed & 1 wounded
from Wa side.

On 28.6.97 a battle was broken between Wa troops & SLORC troops in Menung
Pin township. Ton Ta area. 25 SLORC troops were killed. No casualties from
Wa side.

KNU-SLORC BATTLE NEWS
(abridged by BurmaNet) 

During the month of June, there were numerous small clashes between
SLORC troops and Karen troops (KNLA, the KNU's military wing, and 
KNDO, the KNU's civilian defense organization).  According to KNU
reports, about 40 SLORC troops were killed in  the fighting or by stepping
on landmines.  Approximately the same number were injured.

Skirmishes were recorded in the following locations:
Brigade 1: Thaton District
	Baw Naw Nee village

Brigade 2: Toungoo District 
	Klay Mu, position between Paw Hta and Tha Khaw, position between 
	That Ya Yu and Hsaw Me Kho, Thay Ya Yu village, position between 
	Play Hsar Lo and Saw Thay Khae.

Brigade 3: K'er Lwee Hto District
	 Hay Tha Weh village, Ler Htaw Thoe village, Baw Lo Klo, 
	Wah Pae Khee, Wah Po, Wah Doh Klo, Kyaw Ghaw Hta area

Brigade 4: Mergui/Tavoy District
	Htee Per village, Hse Pa Ler, Noh Pa Doh, Noh Pa Day, Ler Hta Say,
	Ta Khaw Hta, Wah Pu

Brigade 5: Mu Traw District 
	Hee Po Khee village, K'ner Der, position between Htee Ghaw Hta and 
	Nyar Sar villages, Kaw Lay Der village, Day Bu Pu village, Law Pla 
	Thay Hta village, Blaw Htaw Lu Khaw Htee village, Ta Gho Lu, He 
	Ghaw Khee Maw Pu, Lay Khee, Ray Lo Klo, Law Me Hta,  Htee Baw 
	Khee, Hto Po Law Lu Htee, Htee Thaw Tu Hta, Kher Kyo, Hto Pwar 
	Der, Day Bu Kyo.

Brigade 6: Dooplaya District 
	Noh Po village, a position between the Ler Taw and Lay Htaw Hta villages,
	at Htee Ghu Thaw village, Ta Law Bler Khee, Kyaw Blu Noh Po, Pa Wah 
	Klo village, position  between the Noh Taw Plar and Mae Ta Nar 
	villages, Kya Chaung, Noh Po Pu, Htee Moo Hta village, Baw Ner Lu

Brigade 7: Pa-an District
	position between the Pe Tu Hta and Htee Maw Hta villages,
	Ta Dar Kyo, a position between the Par Klu and Saw Kho

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