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The BurmaNet News: July 28, 1999



------------------------ BurmaNet ------------------------
 "Appropriate Information Technologies, Practical Strategies"
----------------------------------------------------------

The BurmaNet News: July 28, 1999
Issue #1324

Noted in Passing: "A good start would be to respect the 1990 elections and
resume a dialogue with the democratic opposition." - Tarja Halonen, Foreign
Minister of Finland and President of the Council of the EU (SEE SCMP: EU
REVERSES TALKS SNUB) 

HEADLINES:
==========
REUTERS: DISSIDENTS SAY MYANMAR DETAINS 19 ACTIVISTS 
BURMA COURIER: VICIOUS CAMPAIGN INITIATED 
REUTERS: MYANMAR SEEKS STABILITY, THEN DEMOCRACY 
SCMP: EU REVERSES TALKS SNUB 
AFP: EU - WILL NOT ALLOW MYANMAR IN ASEAN ROADSHOWS 
BKK POST: TURNING A BLIND EYE TO A SERIOUS THREAT 
NATION: YADANA IS READY, BUT EGAT IS NOT WILLING 
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REUTERS: DISSIDENTS SAY MYANMAR DETAINS 19 ACTIVISTS 
26 July, 1999 

BANGKOK, July 26 (Reuters) - Myanmar's military government detained 19
people in connection with anti-government activity in a central town last
week, a dissident group said on Monday. 

Eleven activists were detained between July 19 and July 24 in Pegu for
distributing leaflets about a march to commemorate the 1947 assassination
of Aung San, Myanmar's independence hero, the All Burma Students'
Democratic Front said in a statement. 

It said eight members of the family of another pro-democracy activist, Kyaw
Wunna, were detained in retaliation when military intelligence officers
were unable to locate him. 

Front member Aung Zaw said dissidents expect the crackdown to be
intensified ahead of the August and September anniversaries of the 1988
pro-democracy uprising that the military crushed. 

A government spokesman could not immediately be reached for comment on the
report. 

The Bangkok-based front said authorities sent 140 soldiers to Pegu on July
18 and 19 and stationed riot police and military intelligence officers at
intersections to prevent the march. 

The activists had distributed badges with the image of Aung San and
pictures of his daughter, pro-democracy leader Aung San Suu Kyi, it said. 

It quoted a Pegu resident as saying slogans were spray-painted on several
buildings calling for a reduction of commodity prices, an increase in civil
servants' salaries, and backing Suu Kyi's National League for Democracy. 

Pegu is about 80 km (50 miles) north of Yangon and was a centre of
anti-government activism during the 1988 uprising. 

The military has recently stepped up attacks on the NLD in the state media.
On Friday, military intelligence chief Lieutenant-General Khin Nyunt called
the NLD a foreign-backed threat to the nation and the armed forces. 

"The NLD, relying on alien masters and with the aim of grabbing power by a
shortcut, is ceaselessly engaging in misconduct with wicked schemes to
destroy the Tatmadaw (armed forces)," he said. 

"All national races must harmoniously ward off all the misdeeds of the NLD
which pose great dangers to the nation." 

The NLD won the last election in 1990 by a landslide but the military
government ignored the results.  


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

BURMA COURIER: VICIOUS CAMPAIGN INITIATED IN NORTHEASTERN COMMAND ZONE
18 - 24 July, 1999 

No. 191 

SHAN STATES

Vicious campaign initiated in Northeastern Command Zone

LASHIO, July 21 (S.H.A.N) -- Shan Herald sources report that Burma's
military have given orders to activate a notorious '4 cuts' operation
against an expeditionary force of Yordserk's Shan States Army in the
North-eastern command zone of the state. 

Sources close to ceasefire groups in the area told S.H.A.N. that the
Burmese Army's Northeastern Command in Lashio had issued orders to
liquidate without quarter any villager or headman who was suspected to
sympathize with the SSA, anyone who failed to report its movements in a
given area or anyone who provided misinformation to units of the Burmese
army. 

The order is effective in areas of Mong Yai and Tangyan townships currently
being occupied by the expeditionary force under the command of Lt-Col
Moengzuen. The Shan States Army force began moving north in early June and
is currently operating in the Mawha - Mawhiang area of Mongyai Township,
and the Loimaw - Mongtawm area of Tangyan Township. 

The operation against the expeditionary force in the two areas is being
carried out by anti-insurgency units made up of guerrillas from the from
the now defunct Mong Tai Army former led by drug lord Khun Sa who
surrendered more than two years ago. But At least six junta battalions
including IBs 41, 68, 326, 332 506 and 507 are being deployed to blockade,
search and destroy the Shan force, the core of which is Moengzuen's crack
758th Brigade. Its strength is estimated from 500 to 900. 

The "4 cuts" strategy -- the cutting off of food, funds, recruits and
intelligence sources in areas potentially sympathetic to the aims of
resistance forces -- was first initiated in the 70's during the era of Ne
Win's control of the military. In its most recent applications in areas of
central Shan state it has led to a campaign of torture and killings and the
massive displacement of over 300,000 persons from their homes. 

The situation in Mong Yai and Tangyan townships is complicated by the
presence there of troops of the Shan States Army - North (SSA - N), a
ceasefire group that is linked to Yordserk's SSA - S. It has already been
forced to move out from positions near the cordoned areas. According to a
source close to the cease-fire group, it has been warned personally by
Maj-Gen Tin Aung Myint Oo, Commander of the Northeastern Command, not to
give any assistance to the expeditionary force. 

The SSA-N and the SSA-S fighters wear identical insignias, in accordance
with the pact they signed on 13 September 1996. 

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

REUTERS: MYANMAR SEEKS STABILITY, THEN DEMOCRACY
27 July, 1999 by Suzanne McElligott 

SINGAPORE, July 26 (Reuters) - Myanmar is moving towards democracy but
needs social stability first, and will solve its problems without
international intervention, Foreign Minister Win Aung said. 

He also repeated that the government had no intention to hold talks with
democracy activist Aung San Suu Kyi. 


"We must solve our problems on our own," Win Aung said in a weekend
interview with Reuters. 

"We want to enjoy the fruits of democracy and we are working towards that,
but we are solving the problems which existed for a long, long time," he
said on the sidelines of a meeting of the Association of South East Asian
Nations (ASEAN). 

Myanmar's military rulers seized power in 1988 after crushing a
pro-democracy uprising and refused to recognise the results of a 1990
general election won by Suu Kyi's National League for Democracy. 

They have long refused dialogue with Suu Kyi, the 1991 Nobel peace laureate
who was held under house arrest from 1989 to 1995. 

Win Aung said the government did not intend to change its approach towards
Suu Kyi and her party's demand to convene a People's Parliament of elected
representatives. 

He said Suu Kyi lacked a pragmatic approach to Myanmar's problems and her
policies were marked by "confrontation and devastation." 

"She would like to see the country crumble and rebuild it from the ashes,"
Win Aung said. 

He said Suu Kyi was Western-educated and that might explain why the West
had "come to the conclusion that only she can have the solution of our
problems, but it is not so." 

He stressed that cash-strapped Myanmar was in a hurry to catch up with its
more economically advanced neighbours and aimed to gain lost ground within
the next 10 or 15 years. 

But he said Myanmar had been hamstrung by European Union and U.S. sanctions
aimed at forcing the ruling State Peace and Development Council to allow
greater freedoms. 

Win Aung rejected media reports that Khun Sa, a notorious drug lord who
surrendered to the government and now lives in Yangon under military
protection, was trading drugs again, but added: "If he is back in business,
we will take action. We are active in action against transnational crime." 

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

SOUTH CHINA MORNING POST: EU REVERSES TALKS SNUB
28 July, 1999 by Barry Porter 

Asean's stalemate with the European Union over Burma was broken yesterday
when foreign ministers from both sides sat at a negotiating table with
Rangoon present for the first time. 

Tarja Halonen, president of the Council of the EU, expressed hope the
meeting would be the first step towards a more "sustainable" relationship
with the Association of Southeast Asian Nations. 

But she stressed a lot depended on the Burmese military junta's future
behaviour. 

Ms Halonen, Finland's Foreign Minister, said: "The EU continues to be
concerned about the situation in Burma. 

"It is the wish of the EU to start a meaningful political dialogue with
Burma, but it is up to the Burmese authorities to show progress and
willingness to deal with the issues of human rights and democratic
development. 

"A good start would be to respect the 1990 elections and resume a dialogue
with the democratic opposition." 

She revealed the EU would discuss its sanctions against Burma in September,
including Europe's ban on issuing visas to leaders of the junta. This has
prevented Burma from participating in previous Asean-EU talks in Europe. A
decision would be made in October. 


In separate bilateral talks with Burmese Foreign Minister Win Aung, Ms
Halonen stressed the importance of Rangoon welcoming the United Nations
special envoy, allowing a free press and co-operating with non-government
organisations. 

On Monday, Burma announced its decision to allow an emissary of UN
Secretary-General Kofi Annan to visit the country in September. 

Mr Annan, acting on a UN resolution asking him to help find a means to
improve the political and human rights situation in Burma, had proposed
dispatching Alvaro de Soto, UN assistant secretary-general for political
affairs, along with a World Bank official to meet with junta leaders. 

Burma had previously stalled on allowing UN representatives into the
country because of fears they might meet pro-democracy leader Aung San Suu
Kyi, who has been calling for tougher international measures and sanctions
against the junta. 

Ms Aung San Suu Kyi's party, the National League for Democracy, won the
1990 general election, but the result was never recognised by the military. 

While acknowledging the international community's message, Mr Win Aung
insisted yesterday Burmese leaders would not be bullied or bribed into
change. 

Commenting on reports that a de Soto mission would seek to entice the junta
to engage in a dialogue with Ms Aung San Suu Kyi's party in exchange for
World Bank funds, Mr Win Aung said: "We are not monkeys to give money or
bananas to." 

He said Burma valued Asean dialogue relations "and we are endeavouring to
build bridges of understanding and co-operation with our dialogue partners". 

United States Secretary of State Madeleine Albright also yesterday raised
Burmese poor human rights record during talks in Singapore.

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

AFP: EU SAYS IT WILL NOT ALLOW MYANMAR IN ASEAN ROADSHOWS 
27 July, 1999 

SINGAPORE, July 27 (AFP) - The European Union (EU) said Tuesday it will not
allow Myanmar representatives on proposed Southeast Asian roadshows, aimed
at luring investments, pending progress on human rights by Yangon. The EU
made its stand known even as officials said the EU had agreed with the
Association of Southeast Asian Nations (ASEAN) to work towards resuming an
annual ministerial meeting suspended due to differences over Myanmar. 

Manuel Marin, acting president of the European Commission, said the EU's
economic agreement with the Association of Southeast Asian Nations covering
such issues as investments, trade services and customs standards omitted
military-ruled Myanmar. 

Asked at a news conference whether the EU would allow Myanmar into the
continent as part of the joint investment roadshows, Marin said: "For the
time being, the answer is negative." 

All other members of ASEAN were welcome but Myanmar "is a problem," he told
a news conference on the sidelines of annual meeting of members of ASEAN
and its dialogue partners. 

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand and Vietnam. 

The EU and the United States were strongly opposed to Myanmar joining ASEAN
in July 1997, citing gross human rights abuses and its refusal to recognise
the result of a 1990 election won by the opposition National League for
Democracy. 


Myanmar officials face a visa ban in Europe under EU restrictions imposed
to punish alleged human rights violations. 

The sanctions were first applied in 1996 and effectively blocked ASEAN from
attending talks in Europe, which has shown no inclination to soften its
stance against the junta in Myanmar. 

"We consider human rights and democratic institutions as rather important,"
Tarja Halonen, president of the EU General Council, said here Tuesday. 

Not just individual nations but even the European Parliament kept a close
watch on such issues, and "we cannot avoid it," she said. 

"We have certain visa regimes which may make it difficult for Burmese
officials to enter the European Union," Halonen added. 

In July, a four-man team representing Finland, Portugal, the EU secretariat
and the European Commission traveled to Yangon to hold sensitive talks with
opposition leader Aung San Suu Kyi and junta First Secretary Khin Nyunt. 

Halonen said the visit had been undertaken for the delegation to see "with
their own eyes what the situation is (in Myanmar) and state strongly our
demands." 

At her meeting here with Myanmar Foreign Minister Win Aung, she said she
had "repeated" the demands, including opening the country to UN experts,
the media and well-known non-governmental organisations. 

The EU also demands that Yangon negotiate with the opposition, respect
human rights and initiate moves towards national reconciliation. 

Halonen said she had informed Win Aung of the EU's forthcoming announcement
on its policy toward Myanmar, which will be made in September in Brussels. 

The EU had last made its position known on Myanmar in April, when it
reiterated its call for Myanmar "to take concrete steps" towards democracy,
respect for human rights and national reconciliation. 

A Singapore foreign ministry spokeswoman said meanwhile that the EU and
ASEAN had agreed to resume their suspended ministerial dialogue as soon as
possible, but gave no details.

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

THE BANGKOK POST: TURNING A BLIND EYE TO A SERIOUS THREAT 
27 July, 1999 

EDITORIAL

Beaming, they held hands in the manner of a chorus line and declared that
the Association of Southeast Asian Nations was as united as ever, though
licking its wounds after the economic drubbing of recent years. Later, clad
in the batik finery that symbolises the 10-member grouping's informal side,
the foreign ministers declared they were holding to the cherished policy of
non-interference. 

The venue was the 32nd Asean Ministerial Meeting, and thoroughly enjoying
the occasion was the team from the State Peace and Development Council,
which has been accorded the right to represent the people of Burma, whose
elected representatives were conspicuous by their absence. No Asean shindig
would be complete without the photo sessions, the batik or re-affirmation
of the policy of non-interference, which is little more than a device to
avoid unpleasant questions about the consequences of the earlier policy of
constructive engagement. 

But each time the nabobs of Asean get together, the policy is brought into
question because of the inability of the regime in Rangoon to put a stop to
a form of interference that is causing desperately serious problems in
countries such as our own. The Rangoon regime, through its friends in the
United Wa State Army, is presiding over a massive industry which floods
Thailand with methamphetamines, or speed. It is all very well for ministers
of the 10-member grouping to choose to keep quiet about such matters in the
interests of harmony or diplomatic sensitivities but the realities on the
ground call for an uncompromising approach. 


Critics of the addition of the Rangoon regime to the regional grouping
warned with good cause that the junta's new legitimacy would do nothing to
improve conditions for the Burmese people nor improve the conduct of the
generals. In the two years since Rangoon was admitted, our northern border
has become a gateway for the import of narcotics that have resulted in such
a national menace. As though that were not bad enough, our border areas
have become a security nightmare in which troops, villagers, troops and
police have been fired upon by narco-terrorists whose backers are awash
with drug profits and the weaponry and influence they bring. 

The junta, which in one form or another has managed to devastate a
once-thriving economy, manages somehow to maintain an alarmingly large and
well-equipped army. And yet it says that it has no control over border
areas, particularly those of the methamphetamine-producing United Wa State
Army, which takes a stridently anti-drugs line with its own people. 

This may in part be explained by Rangoon's policy to offer groups such as
the Wa a degree of autonomy and development assistance, which does not mean
hand-outs so much as a license to make money through operations involving
the manufacture of drugs and money-laundering. An end to Rangoon's problems
with insurgencies has turned into a headache for neighbours such as
Thailand, which is even providing labour for the extravagant development
programme being carried out by the Wa with profits made from drug sales here. 

The longer the Wa are allowed to reap massive profits from their drugs
output, the more formidable they will become and the greater the threat to
Thailand. We are seeing, opposite Chiang Mai and Chiang Rai provinces, the
establishment of drugs-funded bastions that can only be likened to those of
the cocaine cartels of Colombia. The army chief is absolutely right to warn
that the benefits of keeping open border points to facilitate legal trade
are vastly outweighed by the social and economic price to be paid for the
one-way traffic in narcotics. As a member of Asean, Rangoon has a lot of
explaining to do, and Asean should remove its [blinders] and demand an end
to its unacceptable conduct.

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

THE NATION: YADANA IS READY, BUT EGAT IS NOT WILLING
27 July, 1999 BY Pipob Udomittipong

EDITORIAL AND OPINION

The high cost of the controversial Yadana gas has prompted the
cash-strapped Electricity Generating Authority of Thailand to delay its
purchasing plan, writes Pipob Udomittipong. 

Despite the completion of the controversial Yadana pipeline to bring
natural gas from Burma to a Thai power plant in Ratchaburi, the delivery of
the gas has again been rescheduled. The pipeline was built amidst a strong
outcry from human rights activists and environmentalists. 

The main reason for the rescheduling has been delays in the installation of
the combined-cycle units at the Ratchaburi power plant of the
financially-strapped Electricity Generating Authority of Thailand (Egat).
Mitsui and General Electric, the two contractors of this mammoth 5,000
megawatt power plant, have failed to deliver the main parts of the units.
The first units were supposed to have been completed in July 1998. 


Fierce protests against the privatisation of the plant have come from
Egat's union, which accused the government of selling national assets in
order to pay its huge debts. These debts, coupled with the gloomy financial
future of Egat, have reportedly prompted the two contractors to delay
installing gas turbines for the Ratchaburi plant. Since the financial crash
took place two years ago, Egat's debt servicing has ballooned, causing
concerns of debt defaults among Egat's construction contractors. 

Egat cited the high cost of the Burmese gas as the main hindrance to the
delivery. Since last year, Egat has been subjected to strong criticisms
from the local media and the public for its chronic increases in the cost
of electricity. These price hikes have occurred even though Egat's exchange
losses have significantly decreased as the baht has become somewhat
stronger, and there has been a slight recovery in power consumption in 1998
and 1999 as compared to 1997, when the economic slump began. 

To begin receiving the gas from Burma now means an inevitable increase in
the price of electricity. Egat has complained several times that the Yadana
gas costs substantially more than the price of gas purchased from other
local sources, and also that the gas is of lesser quality than what was
initially claimed. 

The Petroleum Authority of Thailand (PTT), owner of the controversial
Yadana project, had always asserted that the gas from Burma was cheaper and
of higher quality when confronted with public protest against the project.
The Yadana gas reportedly costs US$3 per one million BTU at the point of
delivery at the Thai-Burmese border, with the price rising to $3.48 at the
Ratchaburi plant in Thailand. However, according to Egat, natural gas from
local sources costs around $2 per one million BTU at the site of power plant. 

To avoid public outrage and political repercussions, Egat decided to start
receiving the gas in early 2000, when the first 700 megawatt-thermal-unit
is completed. The thermal unit, which consumes cheaper bunker oil, will
help Egat to share the cost of oil and gas, and avoid having to increase
the price of electricity at present. 

PTT has been desperate to see that the Ratchaburi plant begin receiving its
Yadana gas. According to the take-or-pay purchase contract signed with the
Yadana consortium, PTT has to pay money in advance based on the agreed
delivery schedule, regardless of whether or not it actually takes the gas. 

The first delivery should have taken place by Aug 1 last year. By now,
under the signed contract, PTT was supposed to pay about Bt8 billion to the
consortium, despite it not receiving any gas. It has, however, withheld
payment. PTT cited the delay of the completion of the power plant as a
force majeure (or circumstance beyond its control) upon which it can
withhold payment, though this argument was rejected by the Yadana consortium. 

In the meantime, the on-going trial of Sulak Sivaraksa, a human rights
campaigner who joined the sit-in protest to block the gas pipeline's
construction, and who was arrested in March 1998, has exposed more lies by
PTT. Sulak's charge was based on the Petroleum Act, which was promulgated
by a dictatorial regime over 20 years ago. The Act authorises PTT to sue
anyone who obstructs its exploration and production efforts. Sulak's
opposition stemmed from his concern over the terrible human rights and
environmental impact associated with the pipeline's construction. 


A great variety of plants and wildlife, including wild elephants and the
hog-nosed bats, have been found to inhabit the pristine forests of Burma
and Thailand along the pipeline route. A field survey last March by the
Kanchanaburi Conservation Club, a local environmental group, revealed
severe environmental destruction caused by the pipeline's construction
including deforestation, soil erosion and impact on wildlife habitats. 

With respect to human right abuses, the Yadana project has involved the
widespread use of forced labour of ethnic minorities who live along the 60
km-route in Burma. These ethnic peoples have also suffered extrajudicial
killings by the Burmese military. These abuses have been investigated and
publicised by many groups including the International Labour Organisation
(ILO) and Earth Rights International, a non-governmental organisation. The
ILO recently issued a resolution barring Burma from attending ILO forums,
and condemning Burma's labour practices. 

Appearing before judge Sompong Tantisuwanchkul, PTT's chief engineer for
the Yadana project denied charges that PTT had often violated the
mitigation requirements of the Environmental Impact Assessment (EIA) in
order to speed up construction and cut costs. The chief engineer also
denied charges that PTT had extensively used explosives to dig trenches,
and that it worked at night, though a great deal of evidence has been
adduced to the contrary. It was stipulated in the EIA that no work was
allowed at night because it would disturb wildlife. The EIA also said that
explosives were not to be used or only used when most necessary. 

To provide stronger evidence of environmental damage associated with the
pipeline's construction, the judge has allowed a video presentation to be
made in the next hearing scheduled for September.

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