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Bangkok Post (6/6/99)



<center><bold>BORDER/ LOG IMPORTS

</bold></center>

<bold>Thai firms get extension of contracts Rumours of timber smuggling
in South

</bold>

Cheewin Sattha Ekarat Mukem

Rangoon authorities have extended the contracts of four Thai timber
companies importing logs from Burma, a source said.


The contracts with Myanmar Timber Enterprise expired on March 30 this
year and the firms-Phon Phana, SA Pharmaceutical, B&F Goodrich and
Songkhoh Sahai Ruam Rop Kaolee-had applied for extensions.
Representatives had met separately with the Burmese forestry minister in
Rangoon.


The source said some contracts were extended for three months and others
for six months, but did not give details.


The companies' representatives would soon return in the company of a
Burmese deputy minister for forestry, who would officially inform Thai
authorities of the extensions, the source said.


Mae Hong Son Governor Samroeng Punyopakorn said he had been informed that
only two companies-Phon Phana and SA Pharmaceutical-had been granted
extensions.


Mr Samroeng said he did not believe the importation of Burmese logs this
time would result in Thai logs being felled illegally and falsely
documented, as happened in the Salween forest park previously, if all
agencies cooperated to ensure transparency.


He rejected news reports that a politician had demanded kickbacks in
return for allowing the import of logs.


He had heard claims that a high level forestry official of Mae Hong Son
had made demands, but there was no evidence to support the allegation.


Earlier, the Customs Department denied allowing four Thai logging
companies permission to import Burmese timber through a border checkpoint
in Mae Hong Son which reopened recently.


Critics were concerned that reopening the Mae Sariang checkpoint to
permit the import of 1.2 million cubic metres of Burmese logs by the four
firms would encourage continued illegal logging in the Salween.


Not all logs imported from Burma are believed to be Burmese. Some are
suspected of being felled in Thai reserve forests bordering Burma.


Customs Department chief Somjainuek Engtrakul said the department had
never granted permission to any firm to import logs from Burma. It only
had the authority to acknowlege and process imports.


The Foreign Affairs Ministry had issued an official document allowing the
four companies to import timber under their contracts with Burma, he

said.


All log imports required consultation with the Forestry Department in
line with the May 14, 1998, resolution of the National Security Council's
border subcommittee, which forbids log imports through conserved forests,
national parks and wildlife sanctuaries, Mr Somjainuek said.


Deputy Finance Minister Pichet Phanvichartkul said the border panel had
allowed the firms to import logs from Burma on condition the timber
haulage did not damage the environment or disturb wildlife in the area.


In Ranong, it was speculated illegal logs might be smuggled from Burma
into the southern province as a result of the granting of a concession to
a Thai company to build a 183km strategic road in Burma, from Hill 491
near the border to Kawthaung, or Victoria Point, opposite Ranong.


The company, Andaman Club, had begun construction of the asphalt road in
November last year. The road had been partly completed, mainly between
Kawthaung and Ban Nam Yen.


A source said since Burma had a cash problem it had allowed the Thai
contractor to harvest about 12,000 trees along the route in lieu of
payment.


Some of the logs had been smuggled into Thailand to be processed.


This was denied by Uphai Wayuphat, chief of Surat Thani Forestry Zone,
covering Surat Thani, Chumphon and Ranong. No Burmese logs had been
brought into the area, he said.


No private companies had asked permission to import logs and the
government had no policy to import logs from Burma.

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