Bangkok Post News (2-3-99)

[mandalay@xxxxxxxxxx]

<bold>Interpol backs eradication plan

junta "sorely lacks" money for drug fight 

</bold>

Opium producer Burma,accused of laxity in curbing poppy growing and being
a money launderer and harbourer of infamous druglords, is regaining some
credibility in its war on narcotics,experts say.

Last week,Burma's campaign received a boost when Interpol pressed ahead
with a meeting on heroin in Rangoon despite refusals by the US and most
European nations to attend because of the controversial venue. 

Interpol's Director of the Criminal Intelligence Directorate Paul Higdon
publicly commended Burma's plan to wipe out drugs by the year 2014.Burma
needed more world assistance to achieve this objective, he side.

Colonel Kyaw Thein,member of the central committee for the control of
drug abuse,says Burma is struggling with the drug menace because it
sorely lacks money and equipment.

"We are ready to do it with whatever resources we have on our own.But it
will help speed up ...if we get more international assistance,"he told
reporters last week.

Currently,Burma,gets little or no world aid to fight drug warlords
operating mainly in the northeastern Shan state which form part of the
poppy growing Golden Triangle area where the borders of Burma,Laos and
Thailand meet.

Intensive crop surveys,with some US involvement,are under way to
establish the true extent of the poppy cultivation to move away from past
approximations,Col Kyaw Thein says.

Burma predicts this year's opium crop will fall by half from an estimated
680 tonnes produced in 1998 because of crop eradications and
weather.Experts say this forecast is too optimistic but agree less will
be produced.

Official data shows Burma had 160,400 hectares of opium under cultivation
last year and Cold KY The in claims 40,000hectares of poppy have already
been eradicated while another 6,000hectares will be cut this year.

But the United Nations puts opium output at 1,700 tonnes in 1998.

Experts at the Interpol heroin conference said they were encouraged by
Burma's determination to combat drugs."They have a goof programme.But it
will talk a lot of time to start to be truly effective,"said one 
expert.

The exiled"government"of Burma said yesterday it would not celebrate this
week's National Farmers Day,calling it a"day of infamy"marking in 1962.


The National Government of the Union of Burma (NCGUB)said the 37th
anniversary today of the rise to power of former Burmese military
dictator Ne Win was the beginning of the country's misery.

"Since that time,the military dictatorship has taken root and has been
ruling Burma with an iron fist,"the NCGUB side in Bangkok.  

<bold>------------------------------------------------------------------


Chuan to raise drugs issue in talks with Than Shwe

</bold>

Army border units told to be prepared



Wassana Nanuam


The prime minister will raise drugs production and smuggling along the
border with his Burmese counterpart due for a two-day visit next week.


Chuan Leekpai, also defence minister, expects full cooperation from Burma
in formulating plans to combat trafficking, said a source.


Gen Than Shwe is due to visit Thailand between March 8-9 in the wake of
long-standing border conflicts as talks to settle the disputes are under
way. His visit follows that of Win Aung, the Burmese foreign minister,
who was here last month.


The talks were supported by Gen Surayud Chulanont, army chief, Gen
Teeradej Meepien, permanent secretary for defence, and Gen Mongkol
Ampornpisit, supreme commander, at the Defence Council talks last week.


Meanwhile, Gen Surayud has ordered troops along the border to be prepared
despite pending talks later this month, an army source said.


Thailand and Burma will discuss confidence-building measures at the
Regional Border Committee in Phuket in the middle of this month.


According to the source, Gen Surayud plans to invite senior Burmese
figures at the regional level to visit Thailand to strengthen 
relations.


"Although the army chief emphasises the Foreign Ministry takes the lead
in solving problems with Burma, he considers personal relationships
crucial," said the source.


A number of army colonels is to be selected to participate in a
Thai-Burmese language exchange programme resulting from Gen Surayud's
visit to Burma last month, he added. 


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<bold>Thais show little interest in sell-off

</bold>

Firms say better to have state as partner


Nussara Sawatsawang



Rangoon's privatisation plan has failed to attract Thai investors,
despite offering the opportunity to turn Burma into a supplier of raw
materials for Thailand.


Although Thai companies are among the biggest investors in Burma, none
have participated in the plan, according to a Thai official familiar with
the issue.


Sutech Engineering Co, a Thai firm which runs a sugar refinery 290
kilometres northwest of Rangoon, is an example. It opted for a joint
venture instead of taking over several other plants.


The joint venture was the best course because having a government partner
could guarantee business operations, said Sutech president Terapol
Pruksathorn.


Launched in 1995, the privatisation drive is part of Rangoon's efforts to
attract local and foreign investors, and use their capital and know-how
to upgrade industries, especially agricultural processing.



Fresh capital from the sale of state enterprises can help the
cash-strapped regime, the State Peace and Development Council, tackle
widening budget deficits caused by regional economic turmoil and plunging
foreign investment and export revenue.


Burma has 1,609 state-owned firms relying on government assistance in
every respect, including raw materials, machinery, subsidies, fuel and
workers. The government wants to privatise 42 enterprises controlled by
various ministries, as well as 72 cinemas and two farms.


A few had been sold, the Thai official said, adding that cinemas were the
most attractive prospects and had been leased by Burmese nationals.


Officials and analysts said the main problems were insufficient raw
materials, poor road conditions and networks, power shortages and the
unwillingness of the government to give up potential industries for
security reasons.


Sutech is a good example. Its plant produces only 500 tons of sugar a
day, a quarter of its capacity, because of insufficient supplies of cane.
Undeveloped roads hinder the transport of cane from remote areas,
according to Mr Terapol.


Electricity shortages persist as the government has cited a lack of money
for its decision to temporarily suspend a plan to build a new power plant
to supply the capital and nearby areas.


"How can investors run businesses if electricity still goes off eight
hours a day?" the official said.


Kitti Limskul, an analyst at Chulalongkorn University, said security
worries remained a sticking point because the military did not want
businessmen to hold significant stakes in essential industries.


The government wanted to sell factories in low-profit areas, such as food
and light industry, but tightly control highly profitable businesses,
including steel-making, forestry, gems and product distributors.


The state also preferred partial privatisation through joint ventures,
rent and build-operate-transfer contracts to ensure it retained 
control.


"The Burmese government should be more balanced between socialist and
business thinking," he said.


However, he expressed confidence that improved productivity and
efficiency through the privatisation plan could benefit Thai investors in
the long term.


Fruit, vegetables including bamboo shoots, soybean chips and meat were
among commodities Thailand could import from Burma to produce value-added
products for domestic consumption and export, said Mr Kitti, who recently
studied industrial development in Burma.


Mr Terapol agreed, adding it would cost less to produce sugar in Burma
than in Thailand where overheads were likely to increase faster.


He said Sutech's operation in Burma would produce 300,000 tons of sugar
annually by 2001. Sixty percent would be exported to Thailand - a
condition imposed in return for a US$21-million loan for the investment
provided by the Export-Import Bank of Thailand.