BKK Post, March 2, 1998 LOGGING SCA

[burma@xxxxxxxxxx]

March 2, 1998
LOGGING SCANDAL / IMPORT IRREGULARITIES

Firms are lying about rights, says official
No licences granted by Burmese after 1993
Chakrit Ridmontri

Thai companies which claimed to have licences to import logs from Burma 
after the border was sealed in 1993 are believed to be lying since 
Burmese authorities have not granted concession after that, a senior 
Foreign Ministry official said yesterday.

"As far as the ministry is concerned, the Burmese government revoked all 
logging concession contracts with Thai companies since 1993, so 
importing logs from Burma during this period of time is questionable," 
said the official who requested anonymity.

The Burmese government recently informed the ministry that it just 
granted four Thai companies to tender bids for purchasing logs from 
Burma last year.

They include Thai Sawat Co, Phol Phana Co, B&F Goodrich Co and Thai 
Korean Veteran Welfare Co. 

However, the logs that these companies claimed to have purchased from 
Burma still remain on the Burmese side. The Interior Ministry has yet to 
allow them to open the temporary border passes for carrying logs.

During July 1996 to 1997, the ministry was informed that Scabee Company 
was also allowed to bring a batch of logs from Burma through a border 
pass in Mae Hong Son.

The company had a logging concession in Burma since 1985 but could not 
carry logs into the country because the Thai authority charged the 
company with falsifying import documents.

But it won a case against the government, causing concerned officials to 
open the border pass for the company.

"I could say that both the Burmese government and the Thai embassy in 
Rangoon have verified that only these four companies plus the Scabee Co 
are officially allowed to import logs from Burma after 1993," said the 
official. 

However, the ministry's information contradicts a report of the Forestry 
Department, which states that apart from Scabee, two more companies are 
allowed to import logs from Burma.

They are Thai Veneer Industrial 999 Co and SPA Rich Wood Co. 

These companies brought the logs into Thailand during January to 
February last year through four temporary border passes in Mae Hong Son. 


The Thai Veneer carried the logs through a border pass in Ban Sao Hin in 
Mae Sarieng district and the SPA used three border passes in Ban Nam 
Pieng Din and 

Ban Huey Pheung in Muang district, and Ban Sao Hin in Mae Sarieng 
district.

There is no explanation from the department about the two companies but 
it says they have all official documents indicating the logs originated 
in Burma.

The official at the Ministry of Foreign Affairs said it is possible that 
importers could bring in logs from Burma without any approval from the 
Burmese authorities if the deal is between the private sector.

After the Thai firms had purchased logs from Burmese partners, they 
could ask the Interior Ministry to approve an opening of a temporary 
border pass for bringing the logs into the country.

The ministry would consult with the border committee before making 
decision. The committee comprises the National Security Council, 
forestry and customs officials, provincial administration officials, 
border police and army.

But the Customs Department argued that all border passes which are used 
for carrying imported logs were closed since July 1997. 

It is also impossible that Thai companies would make the timber trade 
deal with Burmese private firms. Only two official agencies of Burma are 
authorised to approve any logging deal with foreign companies, said an 
executive at Phol Phana Co.

------------------------------------------------------------------------