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The BurmaNet News, September 8, 199



------------------------ BurmaNet ------------------------       
"Appropriate Information Technologies, Practical Strategies"       
----------------------------------------------------------       
   
The BurmaNet News: September 8, 1997          
Issue #815
  
HEADLINES:          
==========   
REUTER: SUU KYI SAYS CONFIDENT OF DEMOCRACY COMING
KNU: STATEMENT ON CURRENT SITUATION AND DIALOGUE
DVB: GENERAL INVOLVED IN TRAFFICKING, COUNTERFEITING 
S.H.A.N : KARENNI, MON, SHAN JOINT STATEMENT
S.H.A.N : GENERAL ASSEMBLY OF UNREPRESENTED NATIONS
BKK POST: ASEAN TO CONSIDER UK?S BURMA BAN
NATION: PRACHUAB DOWNPLAYS ASEM BOYCOTT THREAT
FEER: BURMA PLANS
FEER: REACHING OUT
KNU: PRESS RELEASE NO. 52
BKK POST: BURMA TO TEST THE ASIAN ECONOMIC MIRACLE
THE NEW LIGHT OF MYANMAR: NEWS BRIEFS
DBSO: LETTER TO ASEAN
--------------------------------------------------------------------------  

REUTER: SUU KYI SAYS CONFIDENT OF DEMOCRACY COMING TO BURMA 
September 4, 1997
By Deborah Charles 

BANGKOK, Sept 4 (Reuter) - Burmese opposition leader Aung San Suu Kyi said
she is confident democracy will come to Burma and that repressive tactics by
the military rulers show they are worried about the opposition. 

Suu Kyi made the comments in a videotaped interview, a copy of which taken
out of Rangoon and obtained by Reuters on Thursday. 

The Nobel Peace laureate said continued arrests of members of her National
League for Democracy (NLD) party and restrictions placed on her own
movements showed the leaders of the ruling State Law and Order Restoration
Council (SLORC) feared the NLD. 

``I'm not under arrest again but my movements are quite restricted, and the
movements of those who wish to come and see me are quite restricted,'' she
said in the interview. 

It was taped at the house of one of her colleagues because the journalist
was not allowed through barricades in the street blocking access to Suu
Kyi's home. 

``So it's quite obvious that the SLORC is very nervous about what the NLD
is capable of doing,'' she said. ``If they were not nervous about the
strength of the NLD they don't need to enforce these restrictions. 

``Our access to the people has always been blocked by SLORC,'' she said.
``We have won a lot of sympathy ...I think the people have begun to realise
more and more this cannot go on.'' 

Suu Kyi, released from six years of house arrest in July 1995, has been
under strict supervision since last December following large street
demonstrations against the government. 

The SLORC has blocked access to her home since September and prevented her
from holding weekend speeches outside her home. 

But Suu Kyi, who said she was ``fighting fit'' after being ill and unable
to keep up with her normal workload, said she still thought democracy would
prevail eventually and dialogue with the government would happen one day. 

``I am a cautious optimist,'' she said. ``I know that dialogue is
inevitable because that is the only way in which problems are solved in the
end.'' 

She said conversations between top NLD officials and SLORC generals in July
did not constitute dialogue because she was not included. ``At best we can
think of it as a sounding out to see whether dialogue was possible between
NLD and the SLORC.'' 

She said she kept pressing her struggle for democracy because of the
``people for whom I care, people I want to see happy.'' She said her party
would help facilitate the return of democracy but could not do it alone. 

``I alone cannot bring them democracy, nor can the NLD by itself. They've
all got to participate. I believe that people want democracy and because of
that we shall get democracy. 

``I would like to think of the NLD as helping the people achieve what they
want rather than dragging them along to our common goal.'' 

Suu Kyi said current economic problems in Burma like rising prices, could
cause a more intense push for political change. 

``Economics and politics are interminably connected,'' she said. ``If the
government is unable to cope with the economy there is bound to be push for
political change,'' she said. 

The NLD, co-founded by Suu Kyi in 1988, won a landslide victory in 1990
elections which went unrecognised by the SLORC. 

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

KNU: STATEMENT ON CURRENT SITUATION AND DIALOGUE
September 8, 1997
win1@xxxxxxxxxxxxxxxxxxxxx

OFFICE OF THE SUPREME HEADQUARTERS
                  KAREN NATIONAL UNION
                            KAWTHOOLEI

KNU Statement on Current Situation and Dialogue
                                                                     
                                                     September 8,1997

* In the brutal offensive that the SLORC has launched, after refusing the
KNU's call for resolving problems dialogue, more than 200 Karen villages
have been destroyed. Similarly, the Karenni, the Shan, the Chin and the
Arakanese peoples have been subjected to barbarous attacks and destruction
by the SLORC.

* After refusing the demand for dialogue by the NLD led by Daw Aung San Suu
Kyi, the SLORC has been intensifying its repression against the NLD on all
sides. Many NLD leaders are being unjustly arrested and sentenced to
long-term imprisonment.

* Dissatisfaction and opposition against the SLORC are increasing daily
among the civil servants, Buddhist monks, students, workers and the general
public who have been demanding political and economic changes. More than 30
colleges and universities remain closed.

* The economic situation has been worsening in tandem with the deteriorating
political situation. The worsening economic recession, indicated by
increasing scarcity of fuel oil, rising prices of consumer foods, currency
inflation, decreasing industrial production and etc. has reached and
unprecedented point.

* An analysis together of the political and economic situation of Burma
shows that the country has arrived at a very dangerous point and that it is
urgently necessary to resolve the current economic and political problems
through dialogue. The situation being as such we, the KNU, solemnly demand
the SLORC to immediately -

1. Cease its brutal war against the Karen people and other ethnic 
nationalities, and commence a meaningful dialogue with the KNU and 
organizations representing other ethnic nationalities;
2. Cease its cruelty and repression against the general public and political
parties based in towns, including the NLD, and commence a meaningful
dialogue with the political leaders, including Daw Aung San Suu Kyi;
3. Release all the political prisoners unconditionally;
4. Initiate, without malice and with a view to forging a genuine unity of
all the nationalities, for the holding of a tripartite dialogue, comprising
of the democratic forces led by Daw Aung San Suu Kyi, the ethnic
nationalities and the SLORC; and 

	At the same time, earnestly urge the ASEAN countries, the United 
Nations, the European Union, the United States, Japan, Canada, Australia and
other democratic countries to make an intervention for the emergence of a
tripartite dialogue in Burma, at the earliest date.

			Central Committee
		       Karen National Union

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

DVB: GENERAL INVOLVED IN TRAFFICKING, COUNTERFEITING 
August 31, 1997 [translated from Burmese]

Oslo Democratic Voice of Burma

Just as news of counterfeit kyat notes and rampant narcotics trafficking
have emerged in Burma, Maung Paing Tun has reported the involvement of a
SLORC [State Law and Order Restoration Council] general not only in drug
trafficking but also in counterfeiting. It has been learned that Maj. Gen.
Khin Maung, commander of SLORC's No.9 Tactical Command and in charge of Ho
Mong after the surrender of Khun Sa, was involved with suspects Sai Nyunt
and his wife Ma Mya Thein, who were arrested on 27 June at the Mya Shweli
Guest House in Taunggyi with kyat 7 million worth of counterfeit kyat notes.
That is why the SLORC authorities have suppressed the news.
Sai Nyunt's wife was arrested after being caught red handed selling fake
notes in Taunggyi Market.  It was later learned that authorities searched
her room at Mya Shweli Guest House and arrested Sai Nyunt together
with kyat 7 million worth of counterfeit kyat notes.
Sai Nyunt, a former medical superintendent of drug king pin Khun Sa's
MTA [Mong Tai Army], has been doing business travelling between Rangoon,
Taunggyi, and Ho Mong after the surrender of Khun Sa.
Maj. Gen. Khin Maung, commander of Arakan State-based No.9 Tactical
Command, was transferred to Ho Mong in July 1996.  Sai Nyunt eventually
became friendly with Maj. Gen. Khin Maung and he gained permission to
operate a toll gate [illegally] on the eastern side of the Salween River
where the proceeds were evenly shared.  A trader can smuggle from 100 to
1,000 heads of cattle per trip paying 500 Thai baht per head of cattle.
Close associates noted almost 10,000 heads of cattle worth kyat 30 million
in illegal tariffs were smuggled during that period where Maj. Gen. Khin
Maung's share amounted to over kyat 15 million.
Later, Maj. Gen. Khin Maung became greedy and permitted Sai Nyunt to
deal in amphetamine tablets.  It has been learned that Sai Nyunt and Maj.
Gen. Khin Maung have produced heroin, amphetamine tablets, and counterfeit
notes in Khut Kwar Village about 20 kms from Nat Kut--which is about 120 kms
away from Ho Mong--where a company of their security guards were stationed.
Since Maj. Gen. Khin Maung is very secretive, an internal source revealed
that even his subordinates did not know about this.
After his arrival, Maj. Gen Khin Maung sold the confiscated drugs
including 2 kg of heroin, raw opium, and allied chemicals to Sai Wan, a
Shan national residing in Ho Mong.  He then bought a motorcycle with the
proceeds from the sale and the tariffs and sent it back to the regimental
headquarters through Maj. Khin Myint, general staff officer grade-2, in
early September 1996.
In mid 1996, Capt. Naing Min from military intelligence became
suspicious and searched Sai Nyunt's residence in Ho Mong and found 10
30-liter containers of processing chemicals.  Maj. Gen. Khin Maung
prevented Sai Nyunt's arrest and transferred him to Nat Kut. Near the end
of 1996, Maj. Gen. Khin Maung was replaced by Brig. Gen. Myint Thein,
deputy commander of Eastern Military Command, and Capt. Naing Min was
replaced by Capt. Ko Ko Aung from No.2 Military Intelligence Unit.  It has
been learned that Capt. Ko Ko Aung continued the pursuit of Sai Nyunt. With
a tip off from Capt. Ko Ko Aung, Sai Nyunt's wife Ma Mya Thein was
apprehended by military intelligence personnel in Taunggyi near the end of June.

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

S.H.A.N : KARENNI, MON, SHAN JOINT STATEMENT
September 04, 1997

JOINT STATEMENT OF THE KARENNI, MON AND SHAN
DELEGATES

Tallinn, Estonia				July 23, 1997

The delegates from the Karenni, Mon and Shan people met during the fifth
General Assembly of Unrepresented Nations and Peoples Organization 
(UNPO ) in Otepää and International Conference on Non-violence and 
Conflict in Tallinn, Estonia and agreed to release this joint statement.

We, the Karenni, Mon and Shan people who are  members of the 
Unrepresented Nations and Peoples Organization ( UNPO ), are the real 
owners of the territories that we have inhabited since immemorial time.

The Burmese occupation forces have brutally and cunningly colonized our
territories. In doing so, they have violated our rights to self-determination, 
social, cultural and human rights.

Therefore, we strongly demand;

1. To immediately withdraw all the occupation forces from our territories.

2. To cease the exploitation of all our natural resources which are used in
suppressing and eliminating our peoples.

3. To find national and political settlement and solutions through peaceful
means.

4. To respect the right of self-determination of all our peoples.
------------------------
Ambassador
The Government of Karenni. 
-----------------------
General Secretary
Mon Unity League.
----------------------
Vice President
Shan Democratic Union.

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

S.H.A.N : RESOLUTION OF THE GENERAL ASSEMBLY OF 
THE UNREPRESENTED NATIONS AND PEOPLES ORGANIZATION
September 7, 1997

FIFTH GENERAL ASSEMBLY
Fifth Session
Otepää, 15-19 July 1997
General Assembly Resolution

RESOLUTION ON THE MILITARY OCCUPATION AND COLONIZATION OF THE SHAN STATES BY
THE BURMESE MILITARY REGIME

The General Assembly,

RECOGNISING the Shan people's right to self-determination as evidenced by
the historic Panglong Agreement signed in 1947;

CONCERNED that the Burmese occupation forces have perpetrated continuous
on-going gross and systematic violations of human rights and fundamental
freedoms which threaten the cultural distinctiveness and national identity
and deliberate policy of displacement of 100,000 families or more, still in
process, in central Shan States;

CONCERNED that rampant destruction of forests, and ruthless exploitation and
pillage of natural resources will lead to imbalance of nature, ecological
disaster and environmental degradation;

THEREFORE,

STRONGLY CONDEMNS the continued brutal military occupation and colonization
of the Shan States by the Burmese military government.

CALLS upon the Burmese regime to respect fully the fundamental human
rights, freedoms and the right to self-determination of the Shan people,
and to begin unconditional negotiations with the people of the Shan States
and the organizations that represent them to facilitate political
settlement and the question of Shan sovereignty.

URGES the Burmese military regime to halt immediately its policies of
population transfer, forced relocation and ethnic cleansing or genocide in
the Shan States.

APPEALS to the international community to take immediate and urgent steps in
pressuring the Burmese regime to halt its destruction and degradation of the
natural environment.

REQUESTS the General Secretary of the UNPO to organize a fact-finding human
rights mission to the Shan States, or otherwise to assist the Shan people in
their quest for self-determination and nation-statehood before the
international Court of Justice.

VOWS to continue its support for the Shan people.

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

BKK POST: ASEAN TO CONSIDER UK?S BURMA BAN
September 5, 1997
AFP

Manila - The Association of Southeast Asian Nations may ask Britain to allow
Burma to attend an Asia-Europe Meeting in London next year on the principle
of "non-discrimination", Philippine Foreign Under-secretary Rodolfo Severino
said yesterday.

Mr Severino said the principle of non-discrimination would figure
prominently when Asean met to discuss Britain?s objection to Burma?s
attendance. 

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

NATION: PRACHUAB DOWNPLAYS ASEM BOYCOTT THREAT
September 6, 1997 [abridged]

FOREIGN Minister Prachuab Chaiyasan yesterday downplayed Malaysian Prime
Minister Mahathir Mohamad's threat to boycott the second Asia-Europe Meeting
(Asem) if Burma's participation is denied, saying it did not reflect Asean's
position.

"Such a warning represents only one voice and should be regarded as a
personal opinion which is not necessarily Asean's collective stance,?
Prachuab said.

Prachuab, the Association of Southeast Asian Nations (Asean) coordinator
with the European Union (EU), suggested that the EU and Asean compromise on
the Burma issue.

The minister said the EU's visa ban on Burmese officials was not
a permanent resolution but rather subject to repeal every six months.

Prachuab had earlier said that Burma should be given the same treatment by
the EU that it had accorded to Vietnam when that country was awaiting full
participation in Asean-EU meetings.

Vietnam was allowed to join those meetings as an observer. 
 
Prachuab intends to raise the question of Burma's participation in the Asem
and other Asean-EU dialogue meetings when he meets British Foreign Secretary
Robin Cook during his official visit to Britain from Monday to Wednesday.

Cook said earlier in the week that the EU visa denial made the inclusion of
Burma in Asem, which will be held in London in April, impossible. His
statement prompted Mahathir to threaten an Asean boycott of the meeting if
it does not include Burma, which, along with Laos, was made a member of
Asean just last month.

Asem comprises the EU, Asean, China, Japan and South Korea. With its latest
additions, Asean now counts nine countries as members: Thailand, Malaysia,
Indonesia, the Philippines, Singapore, Brunei, Vietnam, Burma and Laos. ..

On Tuesday, Prachuab will chair a meeting in London of 23 Thai ambassadors
and consuls, a Foreign Ministry official said yesterday.

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

FEER: BURMA PLANS
September 11, 1997

Taiwan is expected to open a full trade mission in Burma as soon as
controversy over a similar office in Cambodia has died down. Economic
offices are Taipei?s de facto embassies in countries that recognize China
rather than Taiwan. 

Plans to open one in Rangoon appear to have been slowed by events in, Phnom
Penh, where Taiwan was ordered by Second Prime Minister Hun Sen to close its
office because of its alleged support for his rival, Prince Norodom
Ranariddh, whom he deposed in July. But the delay is likely to be brief. 

Taiwan?s interest in Burma is part of its overall strategy of expanding
trade links with Southeast Asia. Rangoon has a strong business community of
Cantonese and Fujianese origin whose ties to Taiwan have always been strong.
And both China Airlines and Eva Air have already initiated weekly charter
flights between Taipei and Rangoon.

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

FEER: REACHING OUT
September 11, 1997
By Bertil Lintner in Chiang Saen, northern Thailand

Burma, Laos come under Yunnan?s economic pull

Stacks of boxes full of Chinese apples line the bank of the Mekong at the
northern Thai river port of Chiang Saen. Yunnan is only 200 kilometres
upstream, and Chinese goods_not just fruit, but all manner of consumer
items_arrive by the barge-load almost every day.

This is the heart of what Chinese officials call the "Great Golden
Peninsula," a swath of Southeast Asia that comprises Thailand, Burma and
Laos. Over the past decade, China has assiduously built trade ties with all
three countries, hoping to turn the region into a giant market for Chinese
products. Thousands of Chinese have also been emigrating to Burma and Laos
in search of business opportunities.

For their part, the countries in the 66 peninsula" are wary of China?s
economic and military strength and ambition-and view Yunnan?s push south
with growing unease. That helps to explain why both Burma and Laos became
members of the Association of Southeast Asian Nations in July. Burma?s
admission to Asean was "a direct move to pull Burma away from China?s sphere
of influence," Indonesian commentator Meidyatama Suryodiningrat wrote in the
Jakarta Post in May.

But China is just as determined to expand its influence in the region. Its
links with Burma were forged when-the two countries signed a trade pact in
1988. Two-way trade-cheap consumer goods and machinery from China, and
timber, jade, rubies, rice, corn, fruit and seafood from Burma.

Yunnan, which shares a 1,950-kilometre border with Burma, has become a major
player in the country?s economic development. Last year, the port authority
in Rangoon and the Yunnan Machinery & Equipment Import Export Corp. formed a
joint venture to build a container terminal and two bulk-cargo wharves in
the Burmese capital. In July this year, the China National Complete Plant
Import & Export Yunnan Corp. sold nine 2,000 horsepower locomotives to Burma
under an agreement that also includes freight cars, passenger coaches,
diesel rail cranes and spare parts.

Yunnan?s economic expansion into Burma did not happen by coincidence. The
Chinese expressed their intentions, almost unnoticed, in an article in the
official Beijing Review on September 2, 1985. Titled "Opening to the
Southwest: An Expert Opinion," the article, by a former vice-minister of
communications, outlined the possibilities of finding outlets for trade from
the provinces of Yunnan and Sichuan through Burma to the Indian Ocean.

Thus far, Sino-Burmese trade has been one-sided (see chart). But
Burma-watchers expect the Chinese trade surplus to diminish over the coming
years; indeed, Chinese businessmen are already finding it increasingly
difficult to sell their produce in Burma. On August 13, China?s official
Xinhua news agency reported that trade between the two countries currently
stands at "only $700 million," indicating a slowdown from a few years ago.

"The purchasing power of the general public in Burma has declined over the
past year, and those who have money . . . prefer upmarket brand names from
Singapore or Malaysia," says a Burmese businesswoman in Rangoon.

But even if Sino-Burmese trade is on the wane, that has not stopped the flow
of Chinese immigrating to Burma, illegally, to seek their fortune. In
Mandalay, in northern Burma, Yunnanese are buying up shops, restaurants,
hotels and karaoke bars-even citizenship. "When a person dies in Mandalay,
his identity card is sold to a broker across the border in Ruili, who
resells it. The picture is then changed and the new owner has become a
Burmese citizen who can settle and buy property in Burma," explains a
Chinese in Ruili who is involved in the business.

Laos, too, has come under the economic pull of Yunnan. Chinese consumer
goods are much in evidence in Luang Prabang, Luang Nam Tha, Moung Sing and
Phong Saly. Last year, Yunnan Airlines bought a 60% stake in the national
carrier, Lao Aviation. In January, Laos?s international and domestic
airlines merged into one entity called Lao Aviation Joint-Venture Co.,
giving Yunnan Airlines control over internal flights.

China?s growing economic influence among its southern neighbours comes at a
time of increasing military cooperation. For years, it has been a major
supplier of military hardware to both Burma and Laos.

Late last year, China and Burma signed an agreement to boost military
cooperation, according to intelligence sources in Rangoon. Under the terms
of the deal, China will train 300 Burmese air-force and naval officers in
flying skills, naval duties and the gathering of intelligence in coastal
areas, while the People?s Liberation Army will provide additional places in
staff colleges for senior Burmese officers. The two countries will exchange
military intelligence and Beijing could also provide arms shipments to
Rangoon at "friendship prices," the sources say. China has already helped
Burma install radar facilities and other naval equipment on a number of
islands off the Burmese coast.

Similar assistance is being extended to Laos, albeit on a smaller scale. A
Chinese-installed signals-intelligence facility is reported to have been
built near Laos?s southern borders with Thailand, Cambodia and Vietnam.

Yunnan, previously a remote, forgotten province deep in China?s interior,
has become an integral part of Southeast Asia?s economies-legal and
otherwise. Says a Western social worker who recently visited the
Sino-Burmese border:  "In 1990, the Chinese were only trading in Burma. But
now they are buying land and investing. Even if the opposition gets power,
they cannot afford to go against the Chinese." It remains to be seen if
Asean membership-and fancy consumer goods in Singapore?s shopping
centres-will stem the tide of Chinese influence. 

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

KNU: PRESS RELEASE NO. 52
September 9, 1997
win1@xxxxxxxxxxxxxxxxxxxxx

OFFICE OF THE SUPREME HEADQUARTERS
	     KAREN NATIONAL UNION
		       KAWTHOOLEI

		     Press Release No. 52
    Regarding 1997 SLORC Offensive against KNU

                                                   September  9, 1997

News of Combat Clashes during July and August 

* Tha-ton District, KNLA 1st Brigade Area: Four clashes took place between
the KNLA and SLORC troops. Two dead and one wounded on SLORC side, and 2
dead on KNLA side. 

* Toungoo District, KNLA 2nd Brigade Area: A total of 20 clashes took 
place between the KNLA and SLORC troops. Seven dead and 26 wounded on SLORC
side while one dead on KNLA side.

* Nyaung Lay Bin District, KNLA 3rd Brigade Area: A total of 10 
clashes took place between the KNLA and SLORC troops. One dead and 6 
wounded on SLORC side while the KNLA lost one dead. 

* Tavoy Mergui District, KNLA 4th Brigade Area: A total of 67 clashes 
took place between the KNLA and SLORC troops. The SLORC side suffered 88
dead and 78 wounded, while the KNLA suffered 2 dead and 4 wounded.

* Pa-pun District, KNLA 5th Brigade Area: A total of 59 clashes took 
place between the KNLA and SLORC troops. The SLORC side suffered 11 
dead and 64 wounded, while there was no casualty on the KNLA side.

* Doo-pla-ya District, KNLA 6th Brigade and 103 Battalion Area: 
Twenty one clashes took place between the KNLA and SLORC troops. The 
SLORC side suffered 22 dead and 36 wounded. The KNLA side suffered 
one dead.

* Pa-an District, KNLA 7th Brigade Area: A total of 38 clashes took 
place between the KNLA and SLORC troops. The SLORC side suffered 17 
dead and 42 wounded, while there was no casualty on the KNLA side.

(A summary of the above shows that 221 combat clashes took place 
between the KNLA and SLORC troops during the 2 months, resulting in 
148 dead and 253 wounded on the SLORC side, while the KNLA suffered 7 dead
and 4 wounded. The KNLA's use of guerrilla and mobile warfare 
tactics has enabled it to take low casualty, to maintain an economy 
on ammunition and to capture weapons and ammunition from the enemy, 
from time to time.)

(Translated, printed and distributed by Karen Information Center)

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

BKK POST: BURMA TO TEST THE ASIAN ECONOMIC MIRACLE RECIPE
September 5, 1997
Philippe Agret

Kyat unhurt from currency turmoil

Rangoon, AFP --After 30 years of self-sufficiency, Burma is soliciting
foreign investment as it tries to follow the recipe of the Asian economic
"miracle" and break away from the stigma of being one of the world?s poorest
countries.

According to official figures, Burma had approved $6.36 billion of foreign
investment as at July 31, with oil and gas being the most sought after
sector attracting $2.3 billion.

The Burmese like to present their country as "the richest of the poor
nations," at least in terms of potential as it is blessed with energy,
mineral and forestry resources.

But, paradoxically, at a time when Rangoon expected to be collecting the
first fruits of its liberalised economy, launched in the late 80s, the West
put pressure on the military junta and, above all, an unprecedented currency
crisis hit its wealthy Asian neighbours.

"The currency crisis in Asia and Asean is acute and it has affected us also,
but since we are not pegged to any currency we are free from a bad
situation," Brigadier David Abel, the national planning and economic
development minister, told AFP.

The local currency, the kyat, has been brutally depreciated since July,
losing 50% of its value in one week following the devaluation of the Thai
baht, and the turbulence in regional markets has brought about the return of
black markets on the streets of Rangoon.

"We know we need to devalue the kyat and we will do it eventually," Abel
said. "Of course we can do it but at what cost to the poor.

"We cannot afford to import anything we want, like before.

"We have to reduce our imports to essentials that are necessary to the
country - food, medicine, construction materials, spare parts, machinery,
fertiliser."

Burma, which was once the world?s leading supplier of rice, stopped exports
some months back when stocks dropped to a very low level. The harvest was
affected by serious flooding during the recent monsoon season. especially in
Pegu, north of Rangoon - one of the "rice bowls" in the country.

Moreover, the April decision by Washington to ban all new US investment in
Burma after accusing Rangoon of human rights violations, hinders the
economic take-of of the country. Burma has complained to the World Trade
Organisation about the US sanctions.

Since the bloody crackdown on the Burmese pro-democracy movement in 1988,
the ruling military junta has been deprived of capital and the expertise of
the International Monetary Fund, the World Bank and the Asian Development
Bank. Now, the needs of, its infrastructure are glaring.

The government, nevertheless, remains optimistic, confident it will collect
dividends from its recent entry into the Association of Southeast Asian
Nations (Asean).

Nearly half (46%) of foreign investment in Burma comes from Asean nations,
lead by Singapore (US$1.22 billion) and Thailand ($1.13 billion), "and it
will go up," said Tun Shin, a legal adviser to the ministry of national
planning and economic development.

In the absence of reliable statistics, especially on the amount of reserves
in dollars, it is difficult to judge the health of the Burmese economy - of
which a good part remains hidden, and the system of tax collection appears
non-existent.

To see the traffic jams, the road-works and the buildings under construction
in the capital, one would have to believe Burma is turning the corner
towards the Asian "miracle."

But the word in diplomatic circles is that the economic situation "is
definitely more difficult" to analyse.

"If it wishes to have some chance of pulling through, the government will
have to fight inflation, curb spending and liberalise the economy," a
western diplomat said.

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

THE NEW LIGHT OF MYANMAR: NEWS BRIEFS
[excerpts only]

September 4, 1997:

TATMADAW DELEGATION ARRIVES BACK FROM INDONESIA

YANGON, 3 Sept-A high-ranking delegation of Myanma Tatmadaw headed by
Minister at  the Office of the Chairman of the State Law and Order
Restoration Council Lt-Gen Min Thein  arrived back from Indonesia this
morning after taking part in Friendly Golf of ASEAN Defence  Ministers at
the invitation of Defence Minister of Indonesia General Edi Sudradjat. The
delegation  also visited the factory of Sampoerna in Java.

ASEAN, EUROPE CAN RESOLVE DIFFERENCES ON MYANMAR

KUALA LUMPUR, 3 Sept-The ASEAN and Europe can resolve their differences on
Myanmar's participation in the Second Asia-Europe Meeting (ASEM) through
"honest, open and  frank negotiation", a high-ranking British official said
here Tuesday

 It has always been the case for the two regions to settle their differences
through such means,  British Parliamentary Secretary at the Cabinet Office
Peter Kilfoyle told a news conference at the  British High Commission here.

 Kilfoyle made the statement while commenting on Malaysian Prime Minister
Mahathir Mohamad's  statement last night that the Association of South-East
Asian Nations (ASEAN) may decide to  boycott the ASEM if the European Union
bars Myanmar from attending. He is here to get ideas  about Malaysia's
Multimedia Super Corridor.

 Kilfoyle hoped that like in any other differences of opinion, normal and
good relations would  prevail, particularly between Britain and Malaysia,
and that any "difficulties" between the ASEAN  and Europe on the issue of
Myanmar "will be resolved".

 "We have a very close affinity which is being enforced over the past couple
of days and I hope that  it will continue to be the case," he said.

 Kilfoyle said he was not aware of Cook's statement on Myanmar on Monday,
but added that it  was "a reflection of the public opinion".-MNA/Xinhua

TWO KNUS EXCHANGE ARMS FOR PEACE

YANGON, 3 Sept- Mya Aung (a) San Phyu Aung and L/cpl Pay Ga Lay of No 3
Brigade of KNU armed group,  bringing in one American-made grenade,
exchanged arms for peace through Thayetchaung Village  Law and Order
Restoration Council on 1 August.

September 5, 1997:

RELIEF SUPPLIES PROVIDED FOR FLOOD VICTIMS OF BAGO DIVISION  FOR SECOND TIME

YANGON, 4 Sept Wellwishers donated K 19.3 million to provide relief supplies
to the  households of inundated areas in Nyaunglaybin, Shwekyin and Waw
townships, Bago Division.

 Led by Col Khin Aung of Office of Strategic Studies and Directorate of
Defence Services  Intelligence, the combined team of Tatmadawmen Myanmar
Police Force members, USDA  members, Red Cross members and Auxiliary Fire
Brigade members handed the relief supplies to  the flood victims of 41
villages from 20 Village-tracts of Waw Township right up to their doors
from 1 to 3 September for the second time.

 The total value of the relief supplies including cash, rice, medicines,
utensils, blankets, clothes and  other personal goods was over K 5.6 million.

 Arrangements are being made to provide similar relief supplies to
households of inundated areas of  DaikU, Nyaunglaybin and Shwekyin townships.

September 7, 1997:

THIRTY-TWO MORE EXCHANGE ARMS FOR PEACE WITH  TATMADAW

YANGON, 6 Sept Realizing the Government's true goodwill and disadvantages of
their armed  struggle line for the nation, 32 members of KNU, ABSDF and RIF
Kalazoe armed groups  exchanged arms for peace with the Tatmadaw from 1 to
15 July.

In South-East command area, pvts Ah Kyu, Ah Kai, Sein Bo Tint,. Ah Chaung,
Than Aye, Maung  Sein, Aung Pwint, Tha Naw Phaw, Set Kasein, Thein Yin,
Naing Lin, Htay Kyi, Kyaw Kyaw,  Nyunt Wai, Mya Than Ti and Maung Myint of
No(16) Battalion, No 6 brigade, KNU armed  group, and pvts Myo Aung (a) Aung
Kyu and Than Oo of 206 battalion, ABSDF, armed group,  exchanged arms for peace.

 In Western Command area, maj Karmal Hussein of RIF Kalazoe group bringing
in one AK-47,  one 9-mm pistol, a walkie-talkie, five magazines and 80
rounds of ammunition exchanged arms for  peace.

 In Northern Command area, wo-2 Maung Win, cpls Lun Naung and Win Kyaw (a)
Moe Gyo and  pvts Ma Khin Than Aye, Ma Daung Hsa and Aye Ai (a) Gan Aung of
ABSDF (Central)  exchanged arms for peace.

 In North-East Command area, I/cpl Win Naing, and pvt Po Kyaw (a) Aung Kyaw
Htwe of 70  battalion, ABSDF, exchanged arms for peace.

 In Taninthayi Division, wo-2 Win Oo, sgt Yaza, pvts Ye Naing, Moe Zaw, of 4
brigade, and pvt  Win Naing of battalion-1, KNU, bringing in on M-62, one
AK-47, two M-16s, one hand grenade,  four rounds of shells, eight magazines,
215 rounds of ammunition, exchanged arms for peace.

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DBSO: LETTER TO ASEAN
September 2, 1997

The following letter was sent to members (Head of States) of the Association
of Southeast Asian Nations (ASEAN). 
--------------------

DEMOCRATIC BURMESE STUDENTS' ORGANIZATION (USA)
Office of the Central Committee
P.O. Box 443, Rockville, MD 20848-0443
Facsimile: (301)468-9672; Email: Dbsousa@xxxxxxx

September 2, 1997 

Your Excellency, 

On behalf of the members of the Democratic Burmese Students' Organization
(DBSO-USA) and on our own behalf, the Central Committee of the DBSO would
like to express our grave concern over the recent political repression in
Burma. We strongly condemn the present Burmese military regime, which
imposed harsh and inhumane prison sentences on August 15, 1997 on the four
Burmese nationals - U Myo Aung Thant, Executive Committee member of the
Federation of Trade Unions of Burma (FTUB); U Cho Aung Than, Daw Aung San
Suu Kyi's cousin and close aide; his sister Daw Nge Ma Ma Than, and her
spouse U Myint Swe. 

        The Burmese military junta, also known as the State Law and 
Order Restoration Council (SLORC), became a member of the Association of
Southeast Asian Nations (ASEAN) last July. It is totally against the 
will of the people of Burma. Several thousands of political prisoners, 
including students and monks remain in hellish jails throughout the 
country without fair trial. Accepting SLORC as a member of ASEAN is a 
total disaster and policy failure of ASEAN in its modern history. SLORC 
is taking advantage of the ASEAN membership to continue its worst human
rights abuses against its own people. 

        The SLORC's recent imposition of harsh prison sentences on the four 
people is actually a flagrant violation of international norms and 
conspicuous contempt of justice and human rights in a civilized society. 
ASEAN's promise of using its influence to foster national reconciliation 
and democratic reforms in Burma will be ridiculous and naive. We 
strongly believe that ASEAN is somewhat responsible for SLORC's human 
rights abuses, since it has initiated its constructive engagement policy and 
accepted Burma as a new member, which boosted political legitimacy of 
SLORC.  We strongly urge you to condemn SLORC's continuing repression. 

        Once again, we express our grave concern over the deteriorating 
situation in Burma and its threat to regional peace and security. We 
believe that you will take necessary action for the best interest of the 
friendly relations between your country and the future democratic Burma. 

Sincerely yours, 

(Signed)
Ko Ko Oo
General Secretary

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