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6/3/98:LETTER TO THE P.M. CHUAN LEE



/* Written Sun 8 Mar 11:00am 1998 by drunoo@xxxxxxxxxxxx in igc:reg.burma */
/* -------------" Letter to Prime Minister Chuan "------------- */

LETTER TO THE PRIME MINISTER CHUAN LEEKPAI(6/3/98)
**************************************************

Dr U Ne Oo
18 Shannon Place
Adelaide SA 5000
Australia.

March 6, 1998.

Prime Minister Chuan Leekpai
Office of the Prime Minister
Government House
Nakhorn Pathom Road
Bangkok 10300, Thailand.

Dear Prime Minister:

I should like to draw your attention to the issues surrounding the
Thailand-Burma gas pipeline and also to the situation of Burma's
ethnic minority refugees in Thailand. Regarding the Thailand-Burma
gas pipeline project, I am particularly concerned about the
possibility of large amount of revenue flowing into the hands of
Burmese military junta. Reports indicate that the Petroleum
Authority of Thailand (PTT), together with Unocal/TOTAL group, has a
contract with Burma for the purchase of natural gas starting on
1 July 1998. It has also been reported that in light of the possible
delay in the construction of the pipeline, the PTT may have to pay
some penalty fees or advanced payments to the Burmese side (report
enclosed).

Firstly, I should like to point out the Prime Minister and
Petroleum Authority of Thailand that the contract which PTT had
signed with Burmese military junta after Burma's general election in
May 1990 is considered to be an illegal contract. The contract is
also non-constitutional from Burma's point of view since the SLORC,
as a signatory to that contract, did not in anyway observe the
Constitution of Burma. Therefore, the State of Burma, at any given
time, will have no obligation to observe the terms of contract
signed by the SLORC. This point is deserving our attention
especially because of the long term nature of this gas pipeline
contract.

To remedy these problems, the Petroleum Authority of Thailand should
re-write their contract with the Executive Committee of National
League for Democracy, who are of legitimate representatives of
Burma. Any penalty fees concerning the delay in the construction of
pipeline should be waived and no advanced payments to the Burma side
should be made by the PTT. In fact, if the PTT insists on making any
payment - either in the form of penalty or advanced gas purchases -
to the military junta, it will be considered as illegal and improper
act of PTT and will likely to face international legal challenges.

I especially should like to emphasize that the Burmese concerns
regarding this pipeline project principally have been to prevent
large amount of revenue flowing into the hand of Burmese military.
We, the Burmese people, otherwise are very happy to see the Thais
utilizing such resources from Burma in the way of helping the
world's environment and to see all companies thriving from the
incomes. On this note, I  should also like to register with the
Prime Minister about our intention to divert the money from the
Burma's share of the sale of natural gas to our refugee and
humanitarian programs in the near future.

Secondly, I respectfully urge the Prime Minister to grant refugee
status, on a group basis, to all refugees living in the camps. This
will provide the necessary legal framework to the United Nations
High Commissioner for Refugees to solve Burma's refugee problem. We
are very much aware that Thailand currently is having difficulties
to cope with large numbers of illegal migrant workers from Burma. I
should  like to highlight about the fact that the Burma's
refugee problem, in the context of Burma's internal politics, must
be viewed as the core of illegal migrant workers' problem in
Thailand. Therefore, we can make improvements to these displacement
situation only by solving the refugee problem as a starter. In the
mean time, I appeal the Prime Minister and Thai authorities to
conduct the deportations of these illegal workers from Burma as
humanely as possible in accordance with international human rights
norms.

In connection with the construction of gas pipeline, there has been
concerns raised by the Thai environmentalists about possible damages
to natural forests in Thailand. I believe that these forests, no
matter they be in Burma or in Thailand, are important to the
humankind and therefore deserving of our care and protection.
Therefore, I respectfully made an additional appeal to the Prime
Minister to look into those issues raised by the Thai
environmentalists.

In closing, I thank the Prime Minister for your kind attention to
these matters. I also thank the Royal Thai Government for continuing
to provide refuge to the Burmese refugees and displaced people in
Thailand.

Yours respectfully and sincerely
Sd. U Ne Oo.

PLEASE ALSO SEND YOUR APPEAL TO:
--------------------------------
Hon. Laxanachantron Laohaphan
Ambassador, Royal Thai Embassy
111 Empire Circuit
Yarralumla, ACT 2600
AUSTRALIA.

___________________________________________________________________
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GROUP FEARS PIPELINE ERRORS MEAN BIG TAXES
1.8.98/THE NATION
KAMOL SUKIN

THE Kanchanaburi Environment Group will gather today in the
province to call on two state enterprises dealing with the Yadana
gas pipeline project to guarantee that they will not pass any
costs caused by mismanagement of the project to the public
through taxes.

In a press statement released yesterday, the group accused the
Petroleum Authority of Thailand (PTT) and the Electricity
Generating Authority of Thailand (Egat) of causing the country to
lose up to Bt3.2 billion in advance payments for gas which has
not been received.

Phinan Chotirotseranee, a group leader,  said PTT had failed to
bargain with Burma and a gas development consortium to delay the
payment when it could not finish the Ratchaburi plant on
schedule.

Instead, the PTT admitted it could not meet the deadline and paid
the money in advance for the gas anyway, she said.

"Both the PTT and Egat must promise that these costs will not be
transferred to the public through oil tax, gas tax, electricity
rates or any other form of tax," said Phiphob Thongchai, another
group leader.

Phinan said that Egat had mistakenly forecast the national energy
demand, leading to an oversupply of energy at present.

"We tried to warn them that this project was based on the wrong
energy forcast due to the economic crisis," Phiphob said, "but
none of them listened and now who  will pay for the massive
cost?"
     
The group also called for the establishment of a neutral body to
forecast energy demands as well as urging the government to
follow the measures suggested by the committee set up to study
the project, especially distributing fair compensation to
villagers along the pipeline route.

Meanwhile, the Thai Action Committee for Democracy in Burma
called on the government to change its policy on the Yadana
project and review further payments, saying that the money paid.
will directly support the Burmese military regime. 

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

DELIVERY WOES MAY COST COUNTRY DEARLY
1.8.98/BANGKOK POST
SUPARA JANCHITFAH
VASANA CHIVARAKORN

EGAT FAILS TO INSTALL GENERATING UNITS 

The Petrgleum Authority of Thailand could incur tens of millions
of dollars in damage as it starts taking delivery of gas from
Burma's Yadana field today at a much smaller amount than agreed
upon.

As originally planned, the entire amount of gas would go to the
power plant at Ratchaburi belonging to the Electricity Generating
Authority of Thailand which is the sole purchaser.

PTT said earlier that the flow rate of gas would be only 5-10
million cubic feet per day (mcfd) compared to the minimum 65 mcfd
as agreed which would be increased to 325 mcfd by the end of the
year.

The reduced flow rate is the result of Egat's failure to install
generating units as planned. Instead, Egat has moved a burner
from Kamphaeng Phet to Ratchaburi to receive the gas as a
stop-gap measure.

According to Egat assistant governor Siridat Glankwamdee, the
installation of electricity generators at Ratchaburi is expected
to be completed by December this year.

PTT has claimed earlier it was subject to pay US$81.57 million to
the Yadana consortium if it failed to take the Burmese natural
gas supply by the end of the year.

Mr Siridat said the delay was caused by suppliers of the power
plant's generators. However, he said the fine to be imposed on
the suppliers is minimal, only 0.1 per cent of the contract's
value. He did not have the figure at hand.

Mr Siridat also revealed that the quality of the Burmese gas
received during the three-day trial run was far below the
requirement.

"During the test run, we found that the gas we received was far
below the standard. Instead of generating heat at 900 to 1000 BTU
per cubic feet, the Yadana gas can only produce 730 BTU."

He added that Egat and PTT are currently working out a contract
for the purchase of the Yadana gas for the Ratchaburi power
plant.

No PTT executives were available for comment yesterday.

Mr Siridat said the demand for electricity this year has dropped
for the first time. The current estimation is 14,180 megawatt
(MW) compared to 14,506 MW last year. A previous report by Egat
confirmed the country has excess capacity for electricity
generating.

Environmentalists yesterday demanded that PTT reveal the total
damage caused by the delay in the power plant installation.

"This is such a huge waste of money for taxpayers like us to bear
especially in the middle of an economic crisis like this," said
Pibhob Dhongchai, one of the leading critics of the gas pipeline
project.

"The power plant is only partially completed, and now we get much
less gas than we actually pay for each day." he added.

Mr Pibhob said the delay reflected a mismanagement by the PTT,
and it should make public the total amount of loss from the deal.

PTT, meanwhile, is going ahead with building a pipeline system
from Ratchaburi to Wang Noi in Ayutthaya to provide another
feedline for the Burmese gas.

The National Environment Board on Wednesday approved the
project's environmental impact assessment study.

The 156-kilometre pipeline with 30 inches of diameter will be
laid under high-voltage cables from Ratchaburi through Nakhon
Pathom, Nonthaburi, Pathum Thani, ending at Wang Noi, said 
Project director Suphon Tubtimcharoon.

The gas will be transferred to Wangnoi and Sainoi power plants as
well as power plants under Egat's Independent Power Producer
scheme.

PTT has to ask for an approval for this 8,400-million-baht
project from the National Economic and Social Development Board
and the cabinet. Mr Suphon expected the project construction
would start late this year. 
********