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BurmaNet News August 4, 1997
- Subject: BurmaNet News August 4, 1997
- From: strider@xxxxxxxxxxx
- Date: Mon, 04 Aug 1997 05:36:00
------------------------ BurmaNet ------------------------
"Appropriate Information Technologies, Practical Strategies"
----------------------------------------------------------
The BurmaNet News: August 4, 1997
Issue #788
Noted in Passing:
It's not only the kyat that has collapsed, it's the entire scheme to
liberalize the
economy. - Rangoon-based analyst
(see FEER: PAPER TIGER)
HEADLINES:
==========
FEER: PAPER TIGER
BKK POST: EXILED PM BEGS EU TO PRESSURE RANGOON
ABC NEWS: CHINA, BURMA IN DRUGS CAMPAIGN TALKS
BKK POST: POPULAR WAY TO LAUNDER MONEY FROM DRUGS
NIKKEI WEEKLY: U.S. COMPANY DROPS MYANMAR GOLD PROBE
NEW LIGHT OF MYANMAR: SECRETARY-1 RECEIVES NATIONAL
ALTSEAN-BURMA: SLORC TARGETS ASEAN ACTIVISTS
ASIAWEEK: TESTS FOR THE ASEAN NINE
ASIAWEEK: MAHATHIR VS. SOROS
CFOB: URGENT ACTION APPEAL FOR CANADIAN INITIATIVE ON SANCTIONS
DBSO(USA): CANDLELIGHT VIGIL FOR MEMORIES OF 8888
ANNOUNCEMENT: AUNG SAN SUU KYI CARDS FOR SALE
ANNOUNCEMENT: NEW ENGLAND BURMA ROUNDTABLE / AUGUST 97
----------------------------------------------------------------------------
---------
FEER: PAPER TIGER
August 7, 1997
By Bertil Lintner in Bangkok
In the early 1990s Burma seemed on the verge of an economic boom, but gross
economic mismanagement and a vastly overvalued currency have brought the
country's economy to its knees.
In the welter of international reporting about weakening Asian currencies,
few have paid much attention to the sickest currency of all. In just over a
month Burma's kyat has plummeted on the black-market from 170 to the dollar
to 250-300. If the rest of the world hasn't noticed, Burmese consumers have.
They began to realize something was wrong when the supermarkets removed
price stickers from their goods. "No one knows what to charge for imported
items because no one knows what the Burmese currency is worth," says a
Rangoon resident.
Indeed, Burma is now facing its worst economic crisis since 1988-the year
massive unrest brought the current military junta to power. Today's crisis
is every bit as explosive. While the plunging kyat is its most obvious
symptom, Burma's economic malady runs far deeper. At its heart is gross
government mismanagement that has not only debased the currency but fuelled
inflation, discouraged foreign investment and depleted reserves. Short of
cash, the government has begun stealing from its citizens, denying them
access either to gold or to their own foreign exchange accounts.
It's a long way from the early 1990s, when Burma seemed on the verge of an
economic boom. New buildings were springing up all over Rangoon, and there
were more cars in the streets than ever before. But that mini-boom is
exactly what caused the kyat's collapse, according to the International
Monetary Fund and independent economic analysts.
" There was no real growth, no production. Rangoon was little more than a
Potemkin village," says Josef Silverstein, professor emeritus at Rutgers
University, in the United States. Adds a Rangoon-based economic analyst: "
The money came from remittances from workers overseas, and from a massive
influx of drug money into the legal economy in the mid-1990s. Money came
in-and went out again [much spent on expensive imports]. And now the party
is over."
The roots of the crisis stretch back to 1989, soon after the State Law and
Order Restoration Council seized power. By selling a chunk of its Tokyo
embassy compound for what a well-placed source in Rangoon estimates at $300
million, Slorc was able to buy itself a measure of stability and push
forward with its economic agenda. " The Slorc appeared to be doing all the
right things," says the source. " It liberalized the economy and welcomed
foreign investment, and there was some degree of coordination of the
government's activities.
The government sustained the illusion of progress partly through the fiction
of its official exchange rate. Set at six kyats to the dollar, it values the
currency at 40-50 times the black-market rate. According to a highly
critical IMF report issued in May, the government's use of the official rate
to compile macroeconomic figures vastly distorts everything from imports and
exports to domestic consumption and GDP.
But things began to fall apart in April 1992, when Slorc Chairman Gen. Saw
Maung (who died on July 24 this year) was replaced by Gen. Than Shwe. Eager
for patronage, Than Shwe redistributed the six economic portfolios then held
by Gen. David Abel, who remains minister of national planning and
development. As a Rangoon-based Western diplomat puts it: " Economic
warlords replaced the economic tsar."
The government compounded its woes by creating a three-tier currency regime
that all but discredited the already weak kyat. In February 1993 officials
introduced foreign-exchange certificates that foreign visitors could swap
for dollars, one-to-one, sparing them the need to buy kyats at the official
rate. In December 1995 the government also allowed Burmese to hold FECs
which they initially could trade at 100 kyats per dollar. As locals dumped
kyat and bought FECS, the currency plunged.
The FECs might not have mattered had the economy been improving. It was not.
Massive problems continued with foreign investment, development and food
production. Of the $3.2 billion of investment approved since the first
reforms of 1989, only $1.2 billion had been invested by March 31, 1996,
according to the IMF. About $900 million went into the oil and gas industry,
much of it to drill dry holes onshore in the early 1990s. Other money went
into hotels, of which there is now a glut. All in all, says the
Rangoon-based analyst, Burma's direct investment " never translated into any
significant development of the manufacturing sector."
Or of agriculture. Attempts to restore rice exports to their pre-World War
II glory have failed miserably. According to government figures, Burma
exported $198 million worth of rice in fiscal 1994-95, but rice exports fell
to $78 million the following year, and to $47 million in the year to March
31, 1997. As the IMF puts it, " problems related to procurement of crops,
agricultural pricing and export policies" continue to hobble the sector.
Tourism was no saviour either. The government designated 1996 " Visit
Myanmar Year," hoping to draw in visitors. But political unrest and, the
government claims, negative publicity abroad, kept foreigners away.
By mid-1996 the government was short of cash. The Tokyo-embassy proceeds
were depleted, and foreign investment wasn't coming in. Reserves shrank to
less than the foreign-currency deposits they are supposed to cover (see
chart). More money was printed to buy up dollars and FECs in circulation. "
That was also when the government resorted to stealing people's money,"
says a Western diplomatic source in Rangoon.
It did that by, first, luring personal savings. In June 1996 the government
announced that bank deposits would start paying interest on foreign-exchange
accounts for the first time and that it would abolish a 10% tax on
withdrawals. " The outcome was a rush to the banks" to make deposits, says
the Rangoon-based analyst. " But three weeks later, the government made it
impossible for people to withdraw their savings. "
There was no official ban on withdrawals, but by posting inquisitive
plainclothes military intelligence officers at the Myanmar Foreign Trade
Bank, the government effectively kept customers away.
While most depositors can't get to their money (a privileged few have
access), the government can-and has spent it freely. By last September,
foreign-exchange reserves had fallen to 1.2 billion kyat, about half the
level of claims on these assets.
" Because of the lack of transparency and accurate market information in
Burma, it took almost a year before the final collapse came," says the
Rangoon-based analyst. Early this year, even more kyats were printed. And
when the usual midyear slump in agricultural exports hit, the bubble finally
burst.
By July the FECs began to develop their own black-market rate, still. much
higher than the official rate but below the price for actual dollars. When
people rushed to buy, gold this summer, the government ordered gold shops to
stop trading.
The government's countermoves are coordinated by a newly formed monetary
stabilization committee headed by intelligence chief, Lt.-Gen. Khin Nyunt.
But its actions have proved totally counterproductive: Food prices have shot
up as the kyat has become almost worthless. " This presents a real crisis
for the government, as rising food prices may have an explosive impact,"
says David Steinberg, director of Asian Studies at Georgetown University who
recently visited Burma.
Faced with such a critical situation, the government has begun to dictate
the kyat's unofficial exchange rate, hoping to restore it to a sustainable
170 to the dollar.
" But that's the reintroduction of a command economy, which is not going to
help solve Burma's problems," says the Rangoon-based analyst. " It's not
only the kyat that has collapsed, it's the entire scheme to liberalize the
economy." Those efforts, he says, represented Burma's most significant steps
towards a real, market-based economy in years. " Now," he says, " this is
the end of that chapter."
*****************************************************************
BKK POST: EXILED PM BEGS EU TO PRESSURE RANGOON
August 2, 1997
COPENHAGEN, AFP
TIME IS OF ESSENCE FOR SOME 'CONCRETE ACTION'
Burma's prime minister -in-exile, Sein Win, on Thursday urged the
European Union to increase pressure on the Rangoon military junta
to restore democracy by following the US example and imposing
sanctions.
Mr. Sein Win was addressing a press conference after six days of
talks with his National Coalition Government of the Union of
Burma to discuss strategy in the light of Burma's admission to
the Association of Southeast Asian Nations (Asean).
He stressed that "concrete action" was necessary in the form of
EU sanctions to pressure the military junta into restoring
democracy and Aung San Suu Kyi's National League for Democracy,
which won a decisive victory in 1990 general elections that were
never recognised.
Mr. Sein Win continued: "[Action] is very much needed. The EU
should not wait for the result of the US embargo, which has some
effect. We need at least a declaration of support from the Europeans."
The six days of talks brought together the exiled government's nine ministers
-who live in exile in India, Thailand and the United States for the first
time in
two years. Four chief councillors also attended the meeting.
Mr. Sein Win stated that the situation in Burma was "getting
worse, economically and politically", and added: "We request
humanitarian aid inside Burma and along the borders to help and
assist the refugees."
He also called on Burma's neighbours, particularly China and
India, 'in the interests of regional security, to help the
Burmese people find a political solution and bring about national
reconciliation and stability.
"We call on Japan, other aid donors and international financial
institutions, to refrain from making the situation in Burma worse
by giving aid or encouraging investments until democracy is restored."
Burma, along with Laos, was admitted into Asean last week at the
group's 30th annual meeting in Kuala Lumpur, despite objections
from western nations critical of the Burmese junta's human rights
record and suppression of democracy.
Mr. Sein Win called on Asean members "to exercise their
responsibility now that they have accepted Burma as a member, to
help bring about political change in Burma".
He called for talks between the National League for Democracy,
"the ethnic leaders of Burma", and the National Coalition
Government of the Union of Burma.
The Copenhagen talks were organised by the Danish Burma Committee
and financed with the help of 500,000 kroner (2.2 million baht)
from the Danish foreign ministry.
As soon as they ended, all the ministers, except Mr. Sein Win,
left Denmark for security reasons.
*****************************************************************
ABC NEWS: CHINA, BURMA IN DRUGS CAMPAIGN TALKS
July 31, 1997(Australian Broadcasting Corporation) abridged
Burma's official narcotics fighter has flown to Beijing for
drug talks, just two weeks after similar bilateral talks in Rangoon.
The Xinhua news agency says the secretary of the Burmese
junta's central committee for drug abuse control, Soe Win,
will hold meetings with senior Government officials in Beijing
and will also travel to Nanjing. In mid-July, China's Deputy Minister
for Public Security, Bai Jingfu, held talks with Mr. Soe Win on
co-ordinating law enforcement and supply reduction of heroin.
*****************************************************************
BKK POST: POPULAR WAY TO LAUNDER MONEY FROM DRUGS
AND ILLEGAL DEALS
August 3, 1997
by Nauvarat Suksamran and Chakrit Waewkraihong
EXPERT: IMPOSSIBLE TO BUILD ECONOMIC HUB
Investing in businesses including a casino in Koh Kong province
of Cambodia, the Golden Triangle and Kawthaung of Burma is known
as a popular method for many Thai businessmen to launder money
from illegal activities including the drug trade.
Director of the Northern Narcotics Suppression Centre (NNSC)
Banpot Piamdee accepted that casinos have been operated by people
involved in the drug trade partly to launder dirty money.
To push Chiang Rai to become an economic hub under the Economic
Quadrangle Development Project, the government aimed to attract
investors to this northern province and the Golden Triangle area.
However, a leading politician who asked for anonymity said it was
impossible to improve the image of the Golden Triangle make the
area free from drugs or turn it into an international investment hub.
Although many drug dealers who were previously backed by drug
kingpin Khun Sa had turned to other businesses including
jewellery trade, the Golden Triangle has remained one of the
largest sources of narcotics in this region.
At present, the area is also known as a major production base of
amphetamine, especially the orange-coloured one. Large
amphetamine production units in the area are owned by the Red Wa,
a Burmese rebel group.
One of the most profitable businesses in the area besides the
drug trade is the casino. Some small casinos are in Tachilek of
Burma and Chiang Saen district of Chiang Rai and a large one was
recently set up in Chiang Saen.
Many politicians, businessmen and northern influential figures
are regular customers of these casinos. Some of them are involved
in illegal businesses including the drug trade and smuggling and
are believed to launder their dirty money there.
Kawthaung of Burma opposite Ranong is known as another major drug
production base and a gateway to smuggle heroin out of the
country. Amphetamine is widely produced there and delivered to
Thailand but it is hard to locate the production plants which are
frequently moved from one area to another.
Money from the drug trade and other illegal activities is
believed to be laundered through several businesses there
including the casino. A Thai owned casino has been operating
there for a few years.
------------------------------------------
excerpts from a related story: NETWORK OF CASINOS
GROWING ON 3 FRONTS (Bkk Post, August 3, 1997)
Thai investors are moving to create a network of casinos in areas
bordering the South, the North, and the East of Thailand with the
aim of attracting local and foreign gamblers from casinos in
nearby countries.
The three-point network comprises a casino in Kawthaung (Victoria
Point) in Burma opposite Ranong province which has been in
service for over three years, a casino in the Golden Triangle
opposite Chiang Saen district of Chiang Rai, another one in
Burma's Tachilek town opposite Mae Sai district of Chiang Rai,
and a new one in Koh Kong, Cambodia.
[T]he casino opposite Mae Sai district of Chiang Rai has been operating
for five years by a joint venture of Thai investors, subordinates of former
drug kingpin Khun Sa, and people from Red Wa and Kokang minorities.
This place usually serves politicians and businessmen with a turnover of
hundreds of millions of baht a year and up to a billion baht annually in
some years.
The other casino on Kawthaung opposite the southern province of
Ranong was reportedly invested by Khun Sa and the State Law and
Order Restoration Council. It is in a five star hotel and is as
big as -and copied from those in Kowloon, Hong Kong.
*******************************************************
NIKKEI WEEKLY: U.S. COMPANY DROPS MYANMAR GOLD PROBE
July/August 1997 (sender did not give date)
by Katsuhiko Meshino ( staff writer )
Bangkok- Newmont Mineral Exploration B.V., a major U.S natural
resources-development company, has decided to pull out of its
gold-exploration project in northern Myanmar. Newmont retreat marks the
first withdrawal from Myanmar by a U.S. company since U.S. authorities
imposed stronger economic sanctions in April.
Analysts said the motivating force behind Newmont's move was
mounting U.S. public opposition to alleged human-rights abuses committed
by Myanmar's ruling State Law and Order Restoration Council ( SLORC ).
Newmont's move will have an impact on Myanmar investments by
developed countries. Analysts said Newmont's withdrawal is likely to come
as a major blow to the military junta.
The company's start into Myanmar was marked by the signing of a
contract with SLORC officials in July of last year. The project involved
investing
up to $ 154 million in the country to mine and develop gold deposits in the
Kyaukpahto region.
Company officials said Newmont has already invested $ 40 million in
the project. Technical and financial problems linked with the company's recent
merger with Santa Fe Pacific Gold Corp. were cited as the official reason
behind
the Myanmar pullout.
However, the junta has raised concern about the role U.S. public opinion
had on Newmont's decision. "We strongly suspect that political considerations
were behind the move," a Myanmar official said. The U.S. administration
continues to strongly criticize business ventures to Myanmar.
Newmont is not the only company with large-scale plans in Myanmar
to be confronted by the harsh glare of U.S. public sentiment. Oil giants Unocal
Corp. and Texaco Inc. are involved in offshore natural-gas projects in
Myanmar. Texaco executives have started talks with Malaysia's state-run oil
company, Petroliam Nasional Bhd (Petronas), about the sale of its stake in
the Yetagun project.
PepsiCo Inc., which once dominated the Myanmar soft-drink market,
left the country in March. Public pressure forced the company to pull out of
Myanma on all fronts in March.
Compared with consumer-product companies like PepsiCo, natural-
resource developers are not as exposed to public opinion. Analysts said more
companies are being forced to consider public opinion because of growing
opposition at a grassroots level in the U.S.
********************************************************
NEW LIGHT OF MYANMAR: SECRETARY-1 RECEIVES NATIONAL
RACE LEADER OF KACHIN STATE SPECIAL REGION 2
August 1, 1997
YANGON, 31 July -Chairman of Work Committee for Development of Border
Areas and National Races Secretary-1 of the State Law and Order
Restoration Council Lt-Gen Khin Nyunt received national race leader
of Kachin State Special Region 2 U Zaw Hmaing and party at Tatmadaw
Guest House on Inya Road, this afternoon.
Present also were U Lamon Tu Jai, U Sai Phone, Dr La Ja, Dr Tu Ja,
peace negotiators U Khun Myat, U Zabwe Jung and U La Wom.
They discussed development of transport, education, health and other
sectors in the region.
************************************************
ALTSEAN-BURMA: SLORC TARGETS ASEAN ACTIVISTS
August 3, 1997
A L T S E A N - B U R M A
ALTERNATIVE ASEAN NETWORK ON BURMA
*tel: [662] 275 1811/693 4515 *fax: [662] 693 4515 *e-mail: altsean@xxxxxxxxxx
__________________________________________________________________
On July 23, a representative of the Slorc Embassy in Manila met with a
Philippines trade unionist in attempt to undermine support for the
Federation on Trade Unions Burma (FTUB).
U Than Tun, a counselor with the Embassy in Manila, made several calls to
the trade unionist to ask for a meeting. The trade unionist from the BAGONG
KAPISANAN NG MGA MANGGAGAWA SA PNR-ITF (Railwaymen's Union of the
Philippines) finally agreed and met with U Than Tun at a coffee-shop.
During the meeting, U Than Tun displayed photos of activists connected to
the FTUB and asked the trade union representative not to assist FTUB because
it was an "illegitimate organization". The diplomat revealed that he had
information about the organization's activities and knew of plans to
establish an FTUB office in Manila.
The trade unionist responded that his organization supported workers rights
and were acting in consonance with the ITF since it belonged to that
organization.
This meeting has resulted in a proposal to organize a protest meeting
between ITF affiliates and U Than Tun.
It would appear that the Slorc has decided to attempt dialogue with Asean
activists while neglecting dialogue with the democracy movement in Burma.
Of course, the objective of such efforts is to undermine support by
Asean-based activists for Burma's democracy movement. It is a heartening
sign that Asean-based activism on Burma continues to be a threat to the
Slorc despite membership in Asean.
Please keep us informed of any similar approaches by Slorc personnel and we
will update you as developments occur.
Debbie Stothard
**********************************************************
ASIAWEEK: TESTS FOR THE ASEAN NINE
August 8, 1997
As Myanmar and Laos join the group, it is rethinking its approach to
diplomacy and economic development. The poorest members are a special cause
for concern.
BY TODD CROWELL AND
ROGER MITTON KUALA LUMPUR
The lavish new Sunway Lagoon Resort Hotel in suburban Kuala Lumpur is a
sprawling palace with a gaudy, pseudo-Egyptian decor and echoes of ancient
Rome and Disneyland. Its eclecticism made it a fitting venue last week for
the annual meeting of ASEAN's foreign ministers. Adding to the sense of
make-believe were flags proudly displaying the group's new logo with ten
rice stalks, representing all Southeast Asia's nations bound closely
together. Except that the association, for the moment at least, is not that
cohesive and doesn't even add up to ten.
What would have been the first meeting of the long-heralded ASEAN Ten turned
into a conclave of the ASEAN Nine plus one non-member. The odd man out was,
of course, Cambodia. On July 5, that country's Co-Prime Minister Hun Sen
dispatched his partner, Norodom Ranariddh, in a violent putsch. That meant
ASEAN had to make a tough political decision and quickly. On July 10, its
foreign ministers deliberated behind closed doors in Kuala Lumpur. Vietnam
pushed to admit Cambodia on schedule while Indonesia led the opponents of
that notion. A's usual, the view of ASEAN's biggest member prevailed:
Cambodia's entry was postponed.
But probably not for long. ASEAN opinion has always been shaped by pragmatic
considerations. In Phnom Penh, Hun Sen is in and Ranariddh out. In any case,
some members privately believe the new Cambodian setup may be better since
the previous government was, as one official put it, "hopelessly
inadequate." The next step for the grouping is to determine if the willful
Hun Sen can be trusted when he says he welcomes ASEAN's assistance in
resolving the crisis. If so, then finessing a relatively quick entry for
Cambodia would become easier. Insiders are betting that admission will occur
in time for ASEAN's 30-year commemorative summit in December, hosted by
Malaysian Prime Minister Mahathir Mohamad.
That the group wants Cambodia in as soon as possible is beyond doubt. After
all, several members have committed huge investments in the country.
Malaysia is one of the largest with $2 billion. That gives Hun Sen leverage.
He can say: deal with me or your investments go down the tube. Japan, an
ASEAN dialogue partner, is by far the largest aid donor to Cambodia. Says a
senior Japanese official: "Our policy is realistic. We're committed to
Cambodia, our interests are at stake. So our aid will continue. We don't
condone or reward Hun Sen, but we have to deal with the people in charge."
For ASEAN, expansion even to nine members has brought some loss of internal
cohesion and a weakening of the group's famed penchant for consensual
politics. "The original core of five non-communist nations [Indonesia,
Malaysia, the Philippines, Singapore and Thailand] had common aims and gave
priority to economic development and non-interference," says Mak Joon Num,
regional strategist at the Malaysian Institute of Maritime Affairs. "That
meant consensus could be achieved, though it was a very slow process even
then." Brunei's admission in 1984 changed little. But Vietnam's entry in
1995 was a watershed. The association of generally free-market economies now
included a Marxist state, one with long-standing antagonisms with China.
Of the two newest members, tiny Laos is likely to be absorbed with few
difficulties. But Myanmar's induction brings a range of problems, not least
constant criticism from Western capitals that the regional partners are not
doing enough to tame the country's ruling junta. But ever since Yangon's
admission was agreed upon in 1995, the developed democracies tended to do
little more than protest loudly, largely for home consumption. Last week,
for example, Britain sent only its No. 2 diplomat to the induction ceremony.
But privately, most Western nations are pleased to see Myanmar inside an
essentially free-market, Western-oriented grouping. Said a senior Japanese
official: "What's the alternative? You want to isolate Myanmar? Drive it
into the arms of the Chinese?"
Western foreign ministers attending made ritual protests about Myanmar's
entry but it was a done deal by the time they arrived for the second and
third parts of the Kuala Lumpur pow-wow: the ASEAN Regional Forum on
security and the meeting with dialogue partners.
Now that Myanmar is inside ASEAN, pressure is likely to build on Yangon's
military leaders to tone down their repressive policies. Says analyst Mak:
"It makes sense to get Myanmar into a group that has economic stability and
progress as its main goal. The middle class will build up, the values will
change and institutions will evolve." Adds Bunn Nagara of the Kuala
Lumpur-based Geopolicy Research consultancy: "Being in ASEAN should help
moderate the Yangon regime and may lead to it dealing with the opposition."
Malaysian Deputy PM Anwar Ibrahim, who recently advocated a change in ASEAN
policy from "constructive engagement" to "constructive intervention," told
Asiaweek his new line was meant to apply to Myanmar as well as Cambodia. He
has urged Yangon's military chief to have an open dialogue with democracy
leader Aung San Suu Kyi, whose party won the 1990 election but was prevented
from taking office by the army. Says Anwar: "I don't think they should [have
done] that. This is a sentiment shared by many ASEAN leaders."
Some observers believe ASEAN started to "intervene" when it sent a
delegation to mediate the crisis in Phnom Penh. "It's basically how you
define the term." says Mak. "If you go in and persuade people and they
accept it, then that's not interference but persuasion." Maybe, but ASEAN
certainly appeared to be taking a different tack with Cambodia than with
Myanmar, raising talk of a double standard. Says former Malaysian opposition
MP Fan Yew Teng: "The decision to postpone Cambodia's membership but to
admit Myanmar confirms ASEAN's hypocrisy."
Rebuttals of that view are again based on realpolitik: you deal with the
government in power - and the junta has held sway in Myanmar for nearly nine
years. But in the immediate aftermath of the July coup in Phnom Penh, there
were legitimate doubts about who was in charge and what form of government
remained. If events continue to show Hun Sen firmly in control, goes the
mainstream thinking in ASEAN, a Cambodia with him at the helm will be admitted.
But will members stay united? ASEAN governments may insist that internal
political and economic differences will not be allowed to produce serious
rifts, but that is already happening and may worsen. One fear is that the
newer members, led by Vietnam, may constitute a subgroup of ',slow-track"
nations, as distinct from the original core members, headed by Indonesia.
"That is already happening with the tariff-reduction provisions, whereby new
members are getting long deadline extensions," says Mak. Indeed, Vietnam,
Myanmar and Laos are going to need a lot of help if their economies are to
develop properly.
But these are problems that come with expansion. In a larger context, it is
significant that ASEAN has taken the initiative to mediate in Cambodia. The
move underscores the enlarged stature the association has already achieved.
So do certain less dramatic accomplishments - such as ASEAN's central role
in keeping once-volatile Southeast Asia largely peaceful for two decades.
Also noteworthy is the fact that all the world's great powers China, Japan,
the U.S., Russia, India and the European Union - came to Kuala Lumpur last
week. Perhaps that is the best single pointer to where ASEAN is today.
*******************************************************
ASIAWEEK: MAHATHIR VS. SOROS
August 8, 1997
By Roger Mitton/Kuala Lumpur
A plan to weaken the region's currencies?
Was there a conspiracy? The Association of Southeast Asian Nations certainly
felt under 1919 siege. Hence the "serious concerns over well-coordinated
efforts to destabilize ASEAN currencies for self-serving purposes" expressed
in a joint communique issued by the group's foreign ministers in Kuala
Lumpur. It was an unusual comment from primarily a political group - and a
measure of how frazzled ASEAN governments are by the regional currency turmoil.
Malaysian Prime Minister Mahathir Mohamad thought he knew who was behind it
all: George Soros, the world's premier currency trader. Dr. M said Soros was
using the wealth under his control to punish ASEAN for welcoming Myanmar.
"There is definite evidence that we cannot disclose," said the PM. "There is
no doubt he did it."
Soros has never hidden his unhappiness with the Yangon government. His
philanthropic Open Society Institute, which promotes democracy worldwide,
has been critical of Myanmar's ruling State Law and Order Restoration
Council (SLORC) for human rights abuses against minorities and political
opponents.
But Soros insists he wasn't involved in the currency attacks. Except for a
single trade in mid-June, he said his funds had not sold ringgit or baht in
the past two months. Asia based financial experts agreed Soros's role was
overblown - though not non-existent. "He was just one of many players in the
market, albeit a bigger player than most," says Desmond Supple of BZW
Securities in Singapore. If he did speculate, Soros was hardly alone. In the
days following the ASEAN conference, Mahathir was even critical of
Malaysians who profited by "selling and buying the ringgit for quick gains."
There is probably bad blood between Soros and Mahathir that goes back to one
of the currency trader's triumphs: his successful attempt to drive down the
value of the British pound in 1992. Betting against Soros at the time: Bank
Negara, Malaysia's central bank. In doing so, the bank reportedly rang up
nearly $6 billion in losses.
Ironically, Mahathir, 71, and his new antagonist have much in common. Both
have strong opinions about how to improve the human condition and are
fearlessly outspoken. One grew up in a village in northern Malaysia and
became a doctor en route to the premiership. The other, a refugee from the
Nazis, fled to the U.S. and made millions on Wall Street. Both are ambitious
and watch markets carefully one on behalf of his business, the other on
behalf of his nation.
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CFOB: URGENT ACTION APPEAL FOR CANADIAN INITIATIVE ON SANCTIONS
August 1, 1997
from cfob@xxxxxxx
Canadian Friends of Burma is appealing to all Free Burma activists inside
and outside Canada to write a letter of support to Foreign Affairs Minister
Axworthy in his push for sanctions and urge the Minister to implement full
economic sanctions on Burma.
Minister Axworthy stated at the ASEAN Regional Forum that upon his return to
Canada he would recommend to cabinet that sanctions be imposed on Burma. He
has not specified what kind of sanctions but said it would affect trade,
investment and financing.
It is imperative that Minister Axworthy know of the widespread support from
Canadians and Burma activists abroad for his initiative. Please write a
letter to him, endorsing his move and urging that full economic sanctions be
imposed on Burma.
Please write to:
Foreign Affairs Minister Lloyd Axworthy
Lester B. Pearson Building
125 Sussex Drive, Ottawa, ON
K1A 0G2, Canada
or fax your letter to his office at 613-947-4442.
Thank you in advance for taking action.
Canadian Friends of Burma
cfob@xxxxxxx
Ottawa
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DBSO(USA): CANDLELIGHT VIGIL FOR MEMORIES OF 8888
August 1, 1997
Commemoration of the 9th Anniversary of 8.8.88
"Join us in protest against the SLORC rule in Burma"
Dear Friends of Burma:
On August 8, 1997, people of Burma of near and far will recall the painful
memories of brutal massacres in our homeland nine years ago. In 1988,
millions of people took to the streets and demanded the restoration of
democracy in the land of repression. Many thousands sacrificed their lives in
the peaceful movement. The largest show of people's power turned out on the
auspicious day of 8.8.88 (August 8, 1988) and on the same day, the
government's brutal crackdown took hundreds of lives. Young people and
students led these protests and many of them paid with their lives. Some of
them have been arrested and detained since then. Schools were closed for the
next three years, shutting out any educational opportunities for Burma's
future generation. Since then, the democratic movement has sustained and
continued the non-violent activities inside and outside of Burma.
Today, there are thousands of political prisoners suffering in the hands of
brutal dictators. Among them are students and young activists. Many are
dying under hellish prison conditions while some have gone through severe
tortures. The list includes Min Ko Naing, chairman of the All Burma
Federation of Student Unions (ABSFU) that has played a major role in the
democratic uprising. Not only are the activist students under severe
restrictions,
but all the schools of higher learning have been closed for months. Thus,
Burma is deprived of her potentials of young educated generation.
In the light of these circumstances, we, the Democratic Burmese Students
Organization (USA) will hold a candlelight vigil in front of the SLORC
Ambassador's residence in Washington D.C., to commemorate the 9th anniversary
of 8-8-88 massacre.
Please join us to show your support for the democratic cause in Burma.
Date: August 8, 1997 (Friday)
Place: 2223 R Street, NW, Washington, DC 20008
Time: 7:30 - 10:00 p.m.
Direction: Dupont Circle Stop (by Red Line Metro)
Contact: Information Committee, DBSO (USA) - East Coast
(301) 424-6009 / (301) 468-5754
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ANNOUNCEMENT: AUNG SAN SUU KYI CARDS FOR SALE
August 1, 1997
Attention fellow Free Burma compassionates. The Syllavethy Gallery, in
conjuction with Philips & Aris Inc., are selling full color cards
beautifully (if I may offer my opinion) depicting the heroic Daw Aung
San Suu Kyi by the internationally renowned artist, Chen Yan Ning. The
cards sell at 1 English pound per card or 4.5 pounds for 5 (postage NOT
included). For Burma help groups, Syllavethy Gallery is selling the
cards at .50 pounds per card (postage IS included).
All profits go to an Aung San Suu Kyi fund which is used in hopes of
alleviating the Burma situation. On the back of each card is a brief
description
of Aung San Suu Kyi and her quest for democracy.
For more ordering information or purchases, the address is:
Syllavethy Gallery
Montgarrie, Alford
Aberdeenshire, Scotland AB33 8AQ
Tel: 44 19755 62273 Fax: 44 19755 63173
If you would like to see a low resolution scanned image of the card,
please feel free to e-mail me at: ryecatcher@xxxxxxxxxxxxxxxx
Best regards,
--Seth Eckstein USA
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ANNOUNCEMENT: NEW ENGLAND BURMA ROUNDTABLE / AUGUST 97
August 1, 1997
1. Vigil and Rally, August 8, 6.30pm on Boston Common
2. Next Burma Roundtable - Tuesday, August 12
3. News Update: Japan Follows the Lead of the European Commission by
Taking the Massachusetts Burma Law to the World Trade Organization
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1. Vigil and Rally, August 8, 6:30pm
August 8, 1997 Vigil to commemorate those who were killed in the 8-8-88
massacre in Burma. The vigil will begin at 6:30pm on the Boston Common
close to the steps leading to the State House. Invited speakers include
state representative Byron Rushing, Quincy city counselor Paul Harold, and
a member of the democratically elected, National Coalition Government of
the Union of Burma (NCGUB). If you get lost, just follow the Burmese
music. For more details contact Ko Lay at 617-388-0038.
2. August Roundtable Meeting: Tuesday, August 12, 6:30pm
Unitarian Universalist Service Committee, 130 Prospect Street, Cambridge.
Take the Redline to Central Square T stop, or the Number 1 bus. The UUSC
office is on the corner of Prospect and Harvard streets, a 2-block walk
from Central Square. Use the buzzer outside the front door to gain entry
into the building; take the elevator to the first floor.
We will show a videotape of a British TV documentary's undercover story in
State Law and Order Restoration Council (SLORC) controlled factories.
Included is an interview with a SLORC general in which he admits to SLORC
control of apparel factories and gives economic reasons why foreign
investors would choose the military-run option. Katie Redford of
Earthrights International is also interviewed. Following the original
broadcast of the show, the Burton Group made the decision to stop buying
clothes made in Burmese factories.
3. News Update: Japan Follows the Lead of the European Commission by
Taking the Massachusetts Burma Law to the World Trade Organization
The European Commission and Japan are moving forward with their formal
complaint at the World Trade Organization (WTO) against the Massachusetts
Burma selective purchasing law. On July 22, the European Union and Japan
conducted their first "formal consultations" with the United States under
the WTO dispute settlement procedures. Under WTO rules, an aggrieved party
must undertake three rounds of formal consultations before requesting that
a dispute panel be convened.
Modeled after similar South Africa statutes, the Massachusetts Burma
selective purchasing effectively bars the Massachusetts state government
from buying goods or services from companies that do business in Burma.
In Massachusetts, we have generated scores of letters to our elected
representatives and officials. This is already encouraging them to stand
firm and defend the Burma law. Attorney General Scott Harshbarger told
Reuters of his firm support for the Massachusetts Burma law.
In Washington, 9 members of the Massachusetts House delegation wrote to US
Trade Representative (USTR) Charlene Barshefsky to urge her to strongly
oppose the pressure from the European Commission and Japan. A coalition of
human rights, environmental, labor and consumer organizations plan to send
a similar letter. This pressure is starting to work USTR spokesman, Jay
Ziegler, recently criticized the European Union, stating that by taking the
Massachusetts Burma law to the World Trade Organization, the European Union
was undermining its own principled stand against the Burmese military junta.
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