The BurmaNet News - 16 March - Part

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------------------------------ BurmaNet -----------------------------
"Appropriate Information Technologies, Practical Strategies
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The BurmaNet News, 16 March, 1998 (Two-part edition)
Issue #957 (Part 2)

HEADLINES:
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Japan's ODA Loan:
REUTERS: MYANMAR PROTESTERS DEMONSTRATE IN TOKYO
JAPAN'S FOREIGN MINISTRY PRESS RELEASE ON AIRPORT
JAPAN TIMES: NEW ENVOY RESPONDS TO CRITICS: YEN LOANS
VOA: JAPAN-BURMA RELATIONS
THE DAILY YOMIURI: RECONSIDER MYANMAR AID
JAPAN TIMES: PEACE-LOVERS DON'T SUPPORT DICTATORS

Business in Burma:
REUTERS: MYANMAR REVOKES 10 BANKS' FOREX TRADING
BKK POST: THAI FIRM BUYS INTO BURMESE OPERATION
NCGUB PRESS RELEASE: JUNTA LOBBYING EFFORTS DISTORT

In Other News:
THE NATION: CHAVALIT AND THE SALWEEN SAGA
THE NATION: GET OUT BY MAY 1, ILLEGAL WORKERS WARNED
THE NATION: GOVT'S DECISION ON ILLEGAL LABOUR SEEN

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REUTERS: MYANMAR PROTESTERS DEMONSTRATE IN TOKYO OVER LOAN 
13 March, 1998

TOKYO - Several dozen Myanmar (Burma) pro-democracy advocates 
demonstrated in front of Japan's foreign ministry on Friday in 
protest against a one-off resumption of Japanese aid to the country. 

The protest was set off by Japan's decision earlier this month to 
extend emergency aid of 2.5 billion yen ($19.5 million) in loans 
to Myanmar for renovating Yangon International Airport. 

The yen loan would be the first new money given to Myanmar's ruling 
junta by Japan since the military took power in 1988 when aid was 
cut off. 

"The yen loan does not represent a resumption of overseas development
assistance," a foreign ministry official told Reuters ahead of the 
protest which was staged outside the ministry in central Tokyo. 

The money is to repair a runway, construct an improved control tower 
and install a light system. 

The Japanese government considers all these items essential for 
maintaining safety at Yangon's airport as it handles an increasing 
number of flights, the official said. 

Japan saw its first yen loan to Myanmar in about a decade as being 
"limited to an existing project" and was not considering resuming 
economic assistance, the official said. 

Japan extended yen loans for the airport in 1984 and 1986. 

Officials for All Nippon Airways Co Ltd, the only Japanese carrier 
with direct flights between Japan and Myanmar, would not comment
on the airport loan. 

"We have had no problems with our operations at Yangon airport," 
an ANA official said. "We are happy when an airport is improved, 
no matter where it is."

ANA offers three round trip flights a week between Osaka and Yangon 
and applied last week for Japanese Transport Ministry approval to 
operate service between Bangkok and Myanmar.

A spokesman for Friday's protest said the loan could only help 
Myanmar's rulers. 

"Ordinary people cannot use the airport or aeroplanes, so that's 
why the Japanese aid is not suitable to give to the Burmese military 
government. So that's why I'm demonstrating against the Japanese 
government," said spokesman Kyaw Lun Tin. 

"I know the intention of the ODA is good, to help the people of 
Burma, but it is in fact going to be of benefit to the military 
generals and the airlines doing business with the generals," said 
Kyaw Kyaw Soe, a representative of the Burma Youth Volunteer 
Association. 

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

JAPAN'S FOREIGN MINISTRY PRESS RELEASE ON AIRPORT LOAN SOURCE
11 March, 1998

The Limited Emergency Measure for Yangon International 
Airport Extension Project

The Government of Japan has decided to disburse a yen loan of 
approximately 2,500 million yen for the Yangon International 
Airport Extension Project. Mr. Masahiko Koumura, Japanese State 
Secretary for Foreign Affairs, notified Mr. Soe Win, Ambassador 
of Myanmar to Japan, of the decision on March 11 (Wed.) at the 
Ministry of Foreign Affairs in Tokyo.

Since the coup in Myanmar in 1988, Japan has suspended disbursement 
of the loan for this project, for which the Government of Japan had 
committed itself, in 1984 and 1986, to extend a loan of up to 
27,170,000,000 yen.

The decision is based on the safety aspect of the airport. The 
disbursement is therefore strictly limited to an emergency measure 
to maintain the safety of the airport such as repair of bumps and 
cracks on the runway and the improvement of the lighting system and 
control facilities. It will not lead to full resumption of the 
initial project which included the extension of the runway, nor to 
a new ODA loan to Myanmar.

When giving notice of the decision, Mr. Koumura stated that Japan is
far from satisfied with the present situation in Myanmar and that 
Myanmar should democratize and improve the human rights situation, 
emphasizing the importance of meaningful dialogue between the Government 
of Myanmar and the National League for Democracy. He also made a request 
for improvement in the issuing of visas to Japanese nationals.

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

JAPAN TIMES: NEW ENVOY RESPONDS TO CRITICS: YEN LOANS FOR 
MYANMAR FALL WITHIN HUMANITARIAN BOUNDS
13 March, 1998
by Hisane Masaki, staff writer

After several months of vacillating and dithering, Japan is 
finally poised to take the plunge into the choppy waters of 
international politics and turn open the loan tap for Myanmar's 
military regime.

In the first release of official yen loans to the Southeast 
Asian country since the military grabbed power there in a 1988 
coup, Tokyo plans to disburse about 2.5 billion yen in low-interest 
loans as early as later this month for the repair of a damaged runway 
at Yangon's international airport.

The military junta put opposition leader and Nobel Peace Prize 
laureate Aung San Suu Kyi under house arrest in 1989 and annulled 
the results of the 1990 democratic elections, in which Suu Kyi's 
National League for Democracy won a landslide victory.  Suu Kyi was 
released from house arrest in the summer of 1995.

Although Japan, like the United States and Europe, suspended official
development assistance to Myanmar following the 1988 coup, it has 
pursued "constructive engagement" with Yangon -- instead of isolating, 
so as to encourage favorable changes there.

But the relatively modest 2.5 billion loan plan has already drawn some
criticism both at home and abroad because it comes despite the military
regime's continued crackdown on the prodemocracy movement led by Suu Kyi.

In recent months, the U.S. and Europe has stepped up pressure on Myanmar's
military junta -- the State Peace and Development Council, as it now calls 
itself -- over its blatant violations of human rights and democratic
principles and they have toughened economic sanctions against the country.

Commenting on the Japanese financing plan, James Foley, a U.S. State
Department spokesman, told reporters recently that the U.S. "does not
support the resumption of large-scale aid projects to Burma (Myanmar) 
at this time."

But Tokyo, while acknowledging the lack of significant progress on
Myanmar's human rights and democracy, insists that the planned loan
disbursement is for the purely "humanitarian" purpose of addressing 
grave safety concerns over the superannuated airport.

Kazuo Asakai, the new ambassador to Yangon and a former top Foreign
Ministry official in charge of international cooperation on human rights,
drug trafficking and other issues of global concern, shared his views on
Japan's Myanmar policy with The Japan Times before leaving Tokyo later 
this month for his new post.

Here are excerpts of the interview:

Q: Why has Japan decided to resume yen loans to Myanmar now after a
suspension of more than 10 years?

A: The planned 2.5 billion yen in yen loans is just part of 27 billion 
yen loans Japan had committed to Myanmar for the airport repair and 
expansion project before the 1988 military coup. Therefore, it does 
not represent a departure from Japan's postcoup policy of neither 
committing nor disbursing fresh official development assistance except 
for humanitarian purposes. In the past decade, the use of Yangon's 
international airport has grown dramatically. The annual number of 
passengers who use the airport has risen to 1.6 million from 300,000 
in 1988. In 1995, an average of 68 flights landed or took off per day, 
compared with only 10 flights in 1988. The airport runway and 
telecommunications equipment are in an advanced state of disrepair.  
Japan is trying to ensure airport safety with the planned loans from a
humanitarian viewpoint.  It would be too late if a tragic accident 
happened.

Q: Japan has apparently sounded out the U.S. administration many times 
about the airport financing plan since last summer. The U.S. response 
so far to recent media reports of the plan seems relatively muted. Is 
the U.S. administration's position of not supporting the plan, as stated 
by the State Department spokesman Foley, tantamount to "condoning" the 
Japanese move?

A: It is true that the Japanese government has taken various occasions 
to fully explain its views to the U.S. administration.  But when you say
"condoning," you are interpreting the State Department spokesman's comment. 
I am not in a position to interpret any remarks made by U.S. administration
officials.  I simply take the remarks as the are.

Q: Before State Foreign Secretary Masahiko Komura visited Yangon last
summer, there was heated debate within the government over whether Japan
should disburse the loans.  But at that time, the view that such a step 
was premature eventually prevailed.  According to government sources, the 
U.S. administration warned Tokyo shortly before Mr. Komura's Yangon trip 
that the loans would damage Japan-U.S. relations, which were already soured 
at the time over how to deal with Hun Sen, Cambodia's strongman. Japan has 
taken the diplomatic initiative recently in helping ensure the holding of 
a free and fair election in Cambodia, scheduled for this summer. In the 
recent crisis over the United Nations' weapons inspections of Iraq, Japan 
also showed its cooperative stance toward the U.S.  Have these developments 
made Japanese officials judge that any damage done by the disbursement of 
the Yangon airport loans to the overall relations between Tokyo and 
Washington would be kept to a minimum?

A: Japan is not directly linking the airport loan issue to the issues of
Cambodia and Iraq.  But the overall atmosphere surrounding the Japan-U.S.
relations was an indirect factor behind the Japanese loan plan.  Japan is
placing particular importance on relations with the U.S.  But another
important factor Japan takes into account is what the Association of
Southeast Asian Nations is thinking.  (ASEAN admitted Myanmar last summer 
despite objections from the U.S. and Europe.)  Last December, Japan held 
a summit meeting with the ASEAN nations in Kuala Lumpur and had an 
opportunity to exchange views with some of them on Myanmar at the top 
political level. Those ASEAN nations said they wanted Japan to disburse 
the airport loans as soon as possible.

Q: Until recently, you had served for two years as the Foreign Ministry's
top official in charge of international cooperation on human rights, drug
trafficking and other issues of global concern.  How are you going to
address the question of improving Myanmar's human rights record?

A: Promotion of human rights protection and democracy in the international
community is one of the pillars of Japan's foreign policy.  I am firmly
determined to continue pressing Myanmar for improvement on such fronts.  
But the issues of human rights and democracy are too difficult to be 
resolved overnight.  I have learned from my experience in the past two 
years that dialogue, persuasion and cooperation are important when 
promoting human rights.  I want to call on various officials in Myanmar, 
while exercising as much patience as possible, to improve the country's 
human rights record.  In addition, I want to call on Myanmar, a major 
drug producer, to cooperate with Japan to eradicate drug trafficking.  
To address the drug issue, efforts by both producing and consuming 
countries are inevitable.  Unlike the U.S. and Europe, drug consumption 
hasn't yet become a serious problem in Japan.  But as a responsible member
of the international community, Japan needs to contribute actively to 
addressing the drug issue.  I also believe that Japan should promote 
economic cooperation with Myanmar in developing human resources and 
such humanitarian fields as medical care, regardless of what the 
country's regime is like.

Q: The Myanmarese economy has been dealt a blow by the recent financial
crisis that has swept through East Asia.  In recent months, foreign
investment in Myanmar has been declining and the market rate of the
country's currency, the kyat, plummeting precipitously against the 
dollar. Before the Asian turmoil erupted, Myanmar's military regime 
had bragged that foreign investment in the country, led by its Asian 
neighbors such and Singapore and Thailand, was growing smoothly despite 
the continued U.S. and European economic sanctions.  But those neighbors 
are now cutting back on their Myanmar investment amid economic problems 
at home. Some analysts say that it is a matter of time before the military 
regime will be forced to take some action, possibly concessions to the
prodemocracy opposition, to improve its ties with the U.S. and other major 
donor nations as a way of pulling the country out of dire economic straits.  
Would you agree with them?

A: I don't know whether Myanmar's external policy will change because of 
the Asian financial crisis.  Myanmar has a great potential for economic
development in the medium and long term.  The country is relatively rich 
in natural gases and other resources. Its people are said to be diligent. 
But Myanmar must promote transparency in its economic policy and open its
economy wider to foreign competition if it is to realize that development
potential.  Any country can secure its economic interests only by 
integrating itself in the international community. Even Japan and the 
U.S. are not exceptions.

Q: While the U.S. and many other industrialized countries continue harsh
economic and other sanctions against Myanmar, China has increased economic 
aid to the country in recent years, a move that many analysts say is aimed 
at securing Chinese access to the Indian Ocean for strategic regions.  The 
growing Chinese influence on Myanmar has raised security concerns among 
some Asian nations, especially India, China's rival in the region. ASEAN's
admission of Myanmar last summer is believed to reflect its desire to 
prevent Yangon from falling under the sway of Beijing.  How do you view 
the strengthening ties between Yangon and Beijing?

A: I think its quite natural that China is interested in strengthening
relations with its southern neighbor.  Japan has no intention of vying 
with China for hegemony in Southeast Asia.  I think it is a good thing 
for China to extend economic cooperation to Myanmar.  But at the same time, 
I am not so naive as to be indifferent to what motives China has.  Myanmar
occupies a geopolitically important location.  At this moment, however, I 
do not have any immediate security concern over the strengthening ties 
between Yangon and Beijing.

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

VOA: JAPAN-BURMA-RELATIONS
13 March, 1998
by Thomas Caldwell

INTRO: Japan recently resumed overseas development assistance, 
or ODA, to the military government in Burma.  As Thomas Caldwell 
reports from the Japanese capital, Tokyo's willingness to resume 
aid to Rangoon has sparked debate about Japan-Burma relations.

TEXT:  When the words "Burma" and "Japan" are mentioned in the 
same sentence, some people may recall the 1957 movie "Bridge over
the River Kwai."  The film depicts the rather brutal occupation 
of the country by the imperial Japanese army during World War 
Two.

In Japan, many people also recall a war movie when they think of 
Burma.  It came out the same year, but with a slightly different 
theme. The motion picture, "The Burmese Harp", is the story of a 
Japanese soldier fighting in Burma near the end of the war. After
coming to realize the horror, in which he was a participant, he 
becomes a Buddhist monk and decides to remain in Burma to bury 
the dead and pray for their souls.

The relationship between Japan and its one-time colony can best 
be described as emotional and complicated. Japanese veterans of 
the Second World War often visit Burma.  Besides the practice of 
old soldiers visiting the battlegrounds of their youth, the World
War Two generation has fond memories of the country. Burma is 
said to be one of the only countries that sent rice to a starving
Japan after the war.  Enough Japanese visit the country for one 
of the country's airlines to schedule three flights a week from 
Osaka to Rangoon.

The recent decision by the Japanese government to resume overseas
development assistance to the military government in Burma has 
touched off a debate, over whether a nation's system of  government 
should have anything to do with economic aid.  The English-language 
Japan Times newspaper quotes foreign ministry officials as saying 
economic development will become the foundation of democratization 
in Burma. 

This theme is echoed by many business and political leaders in 
Japan.  One of the proponents of this idea is Kenichi Omai, a 
Tokyo-based consultant and the author of many books on economics 
and political issues.  Last year, Mr. Omai accompanied some 60 
Japanese businessmen on a tour of Burma.  He says despite Burma's
military rule, he believes the country has enormous potential and
the resumption of aid to Burma is a good idea.

OMAI: "Oh, I think it is absolutely a good idea. I think we should 
however make sure that the country moves into a more democratic 
society. This military government is not something we should 
tolerate. They should do the election, move to the more democratic 
system as soon as possible."

Representative Yukihisa Fujita heads a group of legislators in 
the Japanese parliament who are pressing for democracy in Burma. 
He says there are good intentions behind Japan's resumption of 
official development assistance to Burma, which is also known as 
Myanmar.  But he adds the Japanese government needs to articulate
a coherent policy, if it wants to play the role of broker between
the  military government and the country's democracy movement, 
led by Aung San Suu Kyi  

FUJITA: "I think in a sense Japan has been trying to be a goodie-goodie 
(too well-intentioned)  and in a sense, as far as third party person 
tries to be a goodie-goodie in order to bring reconciliation, it can be 
seen to be too opportunistic. And I think Japan should form her own 
policy which is good for the people of Myanmar. Then Japan can be 
respected by both parties, and that kind of approach might be needed 
more and more from now on."

But opponents here in Japan of Burma's military government assert
that the best way to bring about change in the country is to ostracize
the generals in Rangoon, including a continued cut-off of money. 
Any funds provided to the country, they argue, will only be used to 
prop up the Burmese government and pay for more military hardware 
that can be used for repression.

Source: Voice of America

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

THE DAILY YOMIURI: RECONSIDER MYANMAR AID
12 March, 1998
Letter to the Editor

The majority of the Burmese people were very disappointed to learn that 
the Japanese government decided last week to lend 2.5 billion yen to the
military regime of Myanmar (Burma) to help repair a runway at Yangon's
international airport.  The intention of the official development assistance
is to help the Burmese people, which is good, but in fact it will only
benefit the generals and Japanese airlines that are doing business with
generals, not the Burmese people.
	
Japan's assistance will no doubt be seen by the pro-democracy movement as
evidence that Japan backs the brutal junta and cuddling up to the military
junta to benefit its own self-serving economic interests.

Nothing else has changed in Burma, at least not for the better.  No change
in conditions of democratization and human rights in Burma can be found
behind the Japanese government's latest decision to resume economic aid.  

In November 1996, the military junta again restricted Daw Aung San Suu 
Kyi's freedom of political movement.  Attempts to initiate dialogue 
between the military junta and the National League for Democracy, the 
winning party of 1990 elections, led by Daw Aung San Suu Kyi, have been 
stalled since July 1997.  Nothing has yet improved, in fact, the situation 
has gotten even worse.

Having suffered painfully under the long military dictatorship, as a
Burmese citizen, I therefore humbly request the Japanese government to
emphatically reconsider its decision to resume economic aid that only
serves to encourage the brutal military regime of Myanmar (Burma) to 
prolong its campaign of terror against the people of Burma.

Kyaw Lun Tin
Tokyo

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

JAPAN TIMES: PEACE-LOVERS DON'T SUPPORT DICTATORS
15 March, 1998

Why is Japan rewarding the Myanmar military regime with a 2.5 billion yen
loan to repair a runway at Yangon's international airport?  Does this not
violate Japan's ODA Charter, which states that such aid should promote
democracy and be refused to regimes, like Myanmar's, that plunder the
national treasury to buy arms?  	

The excuse the Foreign Ministry offers -- "safety" -- is absurd.  In
Myanmar, one is far less likely to die in an airplane crash than from abuse
by the military regime -- as a prisoner in its jails, as slave labor in one
of its "development" projects, as a porter or child soldier in one of its
assaults on the country's indigenous peoples, or as one of those ruthlessly
persecuted minorities.  

Since 1988, when Japan froze ODA to the regime, the Myanmar army has
swollen from less than 200,000 troops to nearly 500,000 -- an army that
"eats the people's food and uses guns purchased by the people to kill the
people," to borrow a phrase from Chinese dissident Wei Jingsheng.  Why
weren't the resources squandered on this ominous build-up used instead for
civilian projects like Mingaladon Airport?  Why isn't good-faith dialogue
with Aung San Suu Kyi and her National League for Democracy a precondition 
to such aid? 

If Japan is the "peace-loving nation" it claims to be in its ODA Charter,
its citizens ought to lodge an immediate protest with the Foreign Ministry.

Carol Schlenker
Tokyo

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

REUTERS: MYANMAR REVOKES 10 BANKS' FOREX TRADING PERMITS
13 March, 1998

YANGON - The Central Bank of Myanmar (Burma) has revoked permission 
given to about 10 semi-government and private banks to undertake 
foreign currency transactions, a central bank official said on Friday. 

"We have revoked permissions to transact in foreign currencies that were
issued to about 10 semi-government and private banks and it has become
effective since Monday," a central bank official told Reuters. 

No reason was given for the revocation. 

The official said only two state-owned banks including Myanma Foreign 
Trade Bank and the Myanma Investment and Commercial Bank would now be 
allowed to handle foreign currency transactions. 

The measures to revoke the permissions have not been made public by the
central bank. 

The ruling military State Peace and Development Council recently adopted 
some measures, proposed by retired university professors, officials and
experienced entrepreneurs, to cut down on imports and promote consumption 
of local product.

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

BKK POST: THAI FIRM BUYS INTO BURMESE OPERATION
13 March, 1998
by Sukanya Jitpleecheep

'Myanmar Spa has great potential'

Two of Thailand's leading advertising agencies, Future Communications 
Group and Far East Advertising, yesterday announced a joint venture 
to strengthen their positions in the region and ready themselves to 
compete with western advertising agencies.

Under the joint venture, Far East Advertising Plc will buy a two 
million baht stake in Burma's Myanmar Spa Today Advertising, a 
subsidiary of Future Communications Group.

Myanmar Spa Today Advertising is a leading agency in Burma and a 
joint venture between Future Communications and its Burmese partner 
at the ratio of 60:40.

Under the joint venture announced yesterday, Future Communications 
will hold 34%, Far East Advertising 30% and the Burmese partner 36%.

Myanmar Spa Today Advertising, with a registered capital of US$ 83,000, 
was renamed Spa Today Far East Co Ltd.

Future Communications Group, which is the subsidiary of Osotspa Group,
comprises 20 advertising, marketing research, public relations, media 
and production companies spread across Burma, Malaysia, Cambodia, Hong 
Kong and Indonesia.

At a joint press conference, Wasin Teyateeti, managing director of Far 
East Advertising Plc, and Kitti Chambundabongse, president of Future
Communications, said they agreed to invest in Myanmar Spa Today 
Advertising because it has become a local leading agency in a short 
period of time.

The success of Myanmar Spa Today Advertising has shown the potential 
for the advertising business in Burma, Mr Wasin said.

With forecasts of future strong economic growth in Burma, the joint 
venture would be able to expand its business further, he said.

Future Communications president Kitti said having Far East Advertising 
as a co-partner would strengthen its international operations.

"Spa has lots of clients in the Osotspa Group while Far East has a 
strong client base from the Saha Group that wants to expand business 
overseas," he said.

In the future, Spa will be able to enter the new emerging market areas 
in Indochina. At the same time, the markets where Spa has already 
established its presence will become stronger through the strength of 
both allies.

Wasin Teyateeti said the joint venture with Future Communications was 
based on the objective of serving clients such as Siam Cement and Saha 
Group in overseas markets. 

For its part Far East sees business potential in the emerging Burmese 
market which, it says, is more challenging than established markets 
like Hong Kong and Singapore.

Currently, Spa Myanmar Today is ranked second in the local advertising
industry worth about US$4-5 million.

Last year, the company recorded billings of US$1 million and is forecasted
the same this year. The company has 12 clients, of which 60% billings are
from Thailand, 30% from regional firms and 10% from local clients.

Mr Wasin said he found the Burmese people were very interested in watching 
TV and he planned to produce TV programmes for local consumption.

Future Communications has already liquidated four subsidiaries out of 20 
to improve the group's financial status.

Group president and chief executive Kitti Chambundabongse refused to name 
the four closed subsidiaries, however, he confirmed the number of employees 
would be reduced from 508 to 300.

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

NCGUB PRESS RELEASE: JUNTA LOBBYING EFFORTS DISTORT DEMOCRATIC PROCESS
13 March, 1998

Lobbying efforts in the United States to promote Burma's repressive 
military junta threaten to distort America's democratic process and 
could stall global efforts to improve human rights and the prospect 
for a return to democracy in Burma, the leader of Burma's democratic 
government-in-exile warned here today.

A detailed article in today's (February 24) Washington Post, "Burma's 
Image Problem Is a Moneymaker for U.S. Lobbyists," reveals that two 
Washington, DC-lobbying companies are being paid over $650,000 this 
year by Burmese companies with close links to the ruling generals to 
conduct "a campaign" on behalf of Burma's military dictatorship.

"The lobbyists are trying to convince US lawmakers and the American 
public that the Burmese army junta is improving its record on human 
rights and narcotics trafficking," said Prime Minister Dr. Sein Win, 
of the National Coalition Government of the Union of Burma (NCGUB) 
in Washington, DC.  "Nothing could be further from the truth."

The Washington Post reports that the lobbyists' efforts are "partly 
to persuade the Clinton administration to lift trade sanctions 
against the regime." The US imposed sanctions against Burma in May 
1997, citing the country's terrible human rights record. Amnesty 
International estimates there are about 2,000 political prisoners 
in Burma today. And as the Washington Post states, Secretary of 
State Madeleine Albreight last year declared that the Burmese army 
junta "protects and profits from the drug trade."

"We are seriously concerned that this massive spending is aimed at 
reversing the democratic process by which the U.S. Congress voted 
for sanction against Burma's junta," said Prime Minister Sein Win. 
"We also fear that large s spending by US corporations to allegedly 
'educate' people about Burma will only seek to whitewash the dictatorship 
and will tarnish the reputation of institutions involved."

"The NCGUB calls on all Americans to encourage stronger sanctions and
international pressure on the military junta in Burma," Dr. Sein Win 
added.  "The generals must be convinced they will never be accepted
internationally until they respect human rights and the democratic 
process."

[National Coalition Government of the Union of Burma]

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

THE NATION: CHAVALIT AND THE SALWEEN SAGA
13 March, 1998

LOGGING OF THE FORESTS LINING THE FRONTIER RIVER HAS EBBED AND 
SURGED IN TANDEM WITH THE POLITICAL FORTUNES OF THE FORMER ARMY 
CHIEF. CHANG NOI WRITES.

The Salween logging affair is much more than just another chain-saw
massacre. Its roots lie in Thai-Burmese relations, and the rhythms 
of Gen Chavalit Yongchaiyudh's political career.

In 1988 Gen Chavalit, army commander-in-chief, travelled to Rangoon 
at the head of a large, top-level military delegation. This visit 
resulted in a major change in Thai-Burmese relations. Thailand 
would quietly disassociate itself from the international antagonism 
to the Burmese military dictatorship, and stop supporting the rebel 
groups along the border. The price for this support was timber and 
fishing rights.

Why this change, and why was this part of foreign policy being handled 
by the army? On the Burmese side, the junta was gearing up to move against 
its opponents - the democracy movement and the rebel minorities - and it 
first needed support from Thailand and China. 

On the Thai side, the army was under intense pressure. Its bloated role 
in all aspects of government was being whittled back by increasingly 
confident elected politicians and pressure groups. The businesses 
(arms buying and construction), which had traditionally financed 
the generals' taste for Mercedes and other trinkets, were being closed 
down by public exposure. Burma offered a new frontier - both for business
opportunities and political assertion.

>From these negotiations, 20 concessions were given to Thai companies 
for logging inside Burma. Virtually all the companies were owned by 
military officers and associates. Some of the executives figured among 
the supporters of the New Aspiration Party which Gen Chavalit founded 
a year later. Within months, the Thai government had banned all logging 
inside Thailand and these Burmese concessions had become hugely valuable.

The Thai Army began clearing up the border by shovelling some of the 
refugee students back into Burma. It stopped when the international 
press reported that many of these returnees had gone missing, presumably 
executed. A Burmese army unit was allowed to cross into Thailand and 
attack a Karen rebel refugee camp. A Thai border town was wasted in 
the attack. General Chavalit stamped his foot in outrage at this 
invasion and promised to extract reparations. But nothing happened.

GOLDEN YEARS
As recent reports attest, these were the golden years in Tak and Mae Hong
Son. Fortunes were made fast and almost legally. The logging inside Burma
faced almost no restriction, and the Thai companies chopped fast and
furiously. Burma watcher Martin Smith saw one forest reserve where 100,000 
trees had been cut in one year. The border also bred other lucrative trades
- bringing out girls and heroin, and trading in arms for the rebel groups.

But the diplomatic basis of this golden era was shaky. Between 1992 and
1994, it fell apart. International environmental groups and some Burmese
voices protested against the scorched-earth clear-cutting by the Thai
loggers. On the Thai side, the military's prestige and political weight 
took another lurch downwards after the May 1992 incident. The Democrat-led
Government recaptured control over Thai-Burmese relations and took a
slightly more conditional attitude towards support for the junta. The
Burmese were no longer sure they had a deal.

In 1992-93, the Burmese government revoked the logging concessions 
and proposed to close the border posts. Although the army might be 
in retreat, Gen Chavalit was still in the frame as a minister in the
Democrat-led coalition. In 1993, he managed to negotiate with Rangoon 
to keep the border posts open so timber could still flow out. But in 
December 1994 Chavalit quit the coalition. The golden age passed in 
history.

But the wheel of history spins around. In 1995, Chavalit returned as 
defence minister in Banharn's coalition. Thai-Burmese relations again 
shot ahead. Construction began on the Yadana pipeline and a road link 
through Kanchanaburi. The army brokered deals for the Ital-Thai 
Development Co to enter Burma. A delegation of executives from major 
Thai companies visited Rangoon to prospect for business opportunities. 
Burma began to sidle up to Asean.

With the assurance of Thai support, the Burmese army upped the pressure
on the rebel groups along the border with a mixture of armed attacks 
and conciliatory treaties. A year ago, in a repeat of 1989, the Thai 
Army stood aside while a Burmese unit attacked three rebel refugee 
camps inside Thailand. Again, the Thai Army began pushing people back 
across the border until human rights groups protested. And again, 
Banharn and Chavalit reopened the border passes for timber traffic.

NEW OPERATORS
But it seems the timber business developed very differently from
expectations. The military-backed timber firms swung back into 
operation. But they were outflanked by a group of people who had 
been mere bit-players in the earlier phase.

This new group changed the economics of border logging. Getting timber 
out of Burma had become more expensive. The remaining stands were deeper 
in, and the logistics more complex and risky. But trees have no passports, 
no nationality. Cutting down Thai trees and passing them off as Burmese 
promised much larger profits.

They also changed the economics by exploiting the human fall-out of 
border politics. They hired the rebel refugee Karen inside Thailand 
as cheap labour and devil-may-care gunmen to intimidate rivals. And 
they worked through pro-Rangoon Karen to launder Thai logs into Burmese.

Som Chankrajang's career is typical of the jao phor (local godfathers) of
this last generation. He started out with little education, no money, and 
a burning desire to be very rich. He worked in a gambling den where he 
learnt (as he endearingly told an interviewer last week) "the only way to 
win is to cheat". He made his first pile by hard graft in the trucking 
business. Then he made his fortune in the golden age by acting as agent 
for the logging concessionaires. He negotiated with the Karen rebel groups 
to get the timber out to the border.

His key contact was Bo Mya, the grand old man of the Karen resistance. 
For almost 40 years, Bo Mya had been one of the most commercially-minded 
rebel leaders.

He had been dealing with Thai loggers and miners since the 1970s. By 
1990, the profits had enabled him to create possibly the most settled 
and organised of the mini-states on the border. When Rangoon upped the 
pressure on the rebels in 1994, Bo Mya chose conciliation. He broke with 
the mainline resistance, made a pact with Slorc, and donated his troops 
to help the Slorc mopping-up operations. He was, now in a position to 
maintain his cash flow by giving Burmese nationality to Thai logs.

FINAL LINK
The final link in the chain was the sawmill especially that of Vinai
Panichyanuban. The logs arrived by several routes: routed through Burma 
to get Bo Mya's chop; seized by the Forest Industry Organisation and 
then sold off; magicked through the checkpoints with no documentation; 
and possibly also chopped as Burmese without ever leaving Thai soil.

To disguise the operation, this group appears to have used a corruption
strategy like carpet-bombing - dropping tonnes of cash over a wide area to
flatten any potential source of opposition, and to leave no cover for anyone
who wants to risk a protest. If the list taken from Som's relative is what
it appears to be, the cash was paid in regular amounts to officials from
police, army, local administration, customs, immigration, forestry and
national parks - ranging from some very top men to the little people who
hold open the gates.

But the monopoly attempted by Som, Bo Mya and Vinai was bound to be
vulnerable.. The old logging companies were furious it being excluded 
and under-cut on price. Other rebel groups along the border hijacked 
logs in transit. After Chavalit fell from power, the business was 
quickly undermined. The Forestry Department obstructed the flow of logs 
through from forest to sawmill. Those managing the business believed 
they could use money to free up the resulting log jam. Somebody panicked.

Now the border business is like an ant's nest that has been poked with a
stick. The army tries to blame the Karen. Bo Mya's men attack the rebel
camps. Police, customs and local officials point fingers at one another. 
The Forestry Department, which must be used to such scandals by now, 
adopts the turtle defence strategy of with drawing into its shell and 
playing dead.

But there are clearly two very different agendas at work. Some may want 
to clean, up the whole business. But some may simply want to dislodge the
Som-Bo-Vinai pirate monopoly, and allow more powerfully backed interests 
to take over again.

Most chilling of all has been Gen Chavalit. Last week he exploded with 
one of those impulsive, unguarded, revealing outbursts which have been 
the hallmark of his political career. Put up or shut up, he challenged; 
charge me or stop talking about it. Charges may be difficult. But it seems 
clear that the appalling destruction of forests on both banks of the Salween 
is closely linked to the rhythms of Gen Chavalit's political career.

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

THE NATION: GET OUT BY MAY 1, ILLEGAL WORKERS WARNED
13 March, 1998
by Marisa Chimprabra / Reuters

ABOUT 800,000 illegal workers, mostly from Burma, will have to 
leave the country by May 1 or face legal action, Labour Minister 
Trairong Suwankhiri said yesterday.

He said the government had set aside Bt24 million to build five 
immigration detention areas along the Burmese border by the end of 
April and illegal workers will have to report to those centres 
before being repatriated.

The money is also expected to cover their cost of transportation 
back home.

The minister said employers who harbour illegals after the May 1 
deadline will face a maximum of five years and/or a fine of up to 
Bt50,000.

Illegal workers still in the country after the deadline will face 
a maximum three year jail term and/or a fine of up to Bt60,000.

"The order will be announced on March 15 and will become effective 
on Labour Day [May 1]," Trairong said.

Thailand has more than a million foreign workers, of whom 280,000 
are allowed to work legally on annual permits. About 80 per cent of 
the illegal workers are from Burma and the rest from Cambodia, Laos, 
China, Bangladesh, India and Pakistan.

Trairong said he expected the number of unemployed Thais to reach 
two million by the end of the year, up from the current figure of 
1.8 million.

Deputy Foreign Minister Sukhumbhand Paribatra yesterday proposed 
that Asean foreign ministers address the increasing problem of 
illegal cross-border workers as a priority at their next annual 
meeting in the Philippines, as it is now a regional problem.

"The problem of foreign illegal workers can no longer be dealt 
with bilaterally as they have spread throughout the region. Asean 
members should therefore accord top priority to the issue at their 
meeting in the Philippines in July," Sukhumbhand said.

The minister was speaking at a seminar on, "Cross-border workers 
from Burma and the effects on Thailand".

It is estimated that there are over a million illegal workers in 
Thailand, the majority of whom come from Burma, Laos and Cambodia. 
Only about 300,000 of them have registered under a programme which 
allows them to work on a temporary basis. Those from Burma top the 
list.

"Until now, the Burmese government did not think much about the
issue but now they are ready to cooperate with the Thai government 
to find an immediate solution to the problem," he said.

The minister said that the task of sending illegal workers home 
would be tough, as they were numerous and there were still a few 
jobs that needed cheap labour from other countries.

Referring to Asean's controversial policy of constructive engagement
with Burma, Sukhumbhand said Thailand will not adopt the US line on 
Burma and would like to have greater dealings with Rangoon.

Burma has been condemned by Western countries as a dictatorship with 
a poor record on human rights.

The minister said peace, political and economic stability in Burma 
meant peace in the region and economic and political development 
there will help minimise the number of Burmese seeking jobs abroad.

Deputy Commerce Minister Poethipong Lamsam will accompany him to Burma 
next month to discuss border trade issues, he said.

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

THE NATION: GOVT'S DECISION ON ILLEGAL LABOUR SEEN "NOT VIABLE"
14 March, 1998
by Mukdawan Sakboon                              

THE government's policy to expel about one million illegal
migrant workers is not a viable solution to the problem of Thai
unemployment as it was conceived without proper consideration by
all groups involved, a public hearing concluded yesterday.

It was doubtful the policy would be effective, given the static
economic situation in Burma and the corruption prevalent in the
authorities.

Labour experts and academics said it was not a simple matter of
just forcing out migrant workers and replacing them with locals.
Few Thais were interested in taking over the kind of jobs held by
foreign workers because of the difficult conditions and low
wages.

Commissioner of the Police Immigration Office Chidchai
Wannasathit said in a discussion with the Samutsakhon Labour
Office that only 800 Thais had shown any interest in the 22,000
positions which were taken by illegal foreign workers.

So far more than 50,000 migrant workers have been laid off, and
about 16,000 local workers have taken up their jobs, Labour
Minister Trairong Suwankhiri said.

The expulsion policy, to take effect on May 1, has led to many
migrant workers being abandoned by employers who did not want to
take any responsibility, according to Chidchai.

About eight to 10 migrant workers are 'dropped' at the bus stop
in front of the Immigration Bureau in Suan Plu every day," he
said.

Others who want to go back have to pay as much as Bt5,000 to
agents in exchange for a "safe return" without being arrested,
added Apisit Yonsakorn of the Tak Chamber of Commerce.

Authorities have often cited security reasons as the main concern
behind this policy, saying that the existence of about one
million migrant workers, 90 per cent of whom are Burmese, poses a
great threat, but NGO representatives argue that the blame should
be put on the highly corrupt system, not the illegal migrant
workers.

The public hearing yesterday proposed that employers and illegal
migrant workers who want to go home be exempted from legal
prosecution for a certain period and those who will not leave
voluntarily or who face danger upon arrival in Burma should be
allowed to contuniue working temporarily.

The meeting also called on the government to strictly enforce the
law and crackdown on those in the human trade.

The government should have a monitoring mechanism to ensure safe
and transparent repatriation as well as involving NGOs in the
repatriation process.

In the long term a special organisation which involves several
parties should be t to handle the issue of foreign workers, the
meeting suggested, adding that the government must also base its
policy and measures on well-researched information and
humanitarian principles.

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