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BurmaNet News: January 26, 2001
- Subject: BurmaNet News: January 26, 2001
- From: strider@xxxxxxxxxxx
- Date: Fri, 26 Jan 2001 08:01:00
______________ THE BURMANET NEWS ______________
An on-line newspaper covering Burma
January 26, 2001 Issue # 1720
______________ www.burmanet.org _______________
INSIDE BURMA _______
*DVB: Burma to build air defence systems along border with Thailand
*Kyemon [SPDC]: [Burma cracks down on use of illegal satellite
receivers]
*AP: 84 opposition politicians released from prison in Myanmar
*Xinhua: Myanmar In Stage Of Political Evolution- Official Information
*Xinhua: Myanmar Holds Second Women's Conference
REGIONAL/INTERNATIONAL _______
*Far Eastern Economic Review: Where Htoo Now?
*The Independent (Bangladesh): Yangon Embassy Says: Date for Joint
Survey of Dam to Be Finalized
*AP: US welcomes release of senior Myanmar opposition leader
ECONOMY/BUSINESS _______
*Reinsurance Magazine: Political Risk; Playing with Fire
*The Economist: Good fellers
OPINION/EDITORIALS_______
*USG: State Department reaction to release of U Tin Oo
OTHER______
*PD Burma: Calendar of events with regard to Burma
__________________ INSIDE BURMA ____________________
Kyemon [SPDC]: [Burma cracks down on use of illegal satellite receivers]
Excerpt from report by Burmese language newspaper Kyemon on 18 January
2001, translated by BBC SWB.
Yangon [Rangoon] 17 January: The various township communications
departments have already compiled a list of satellite receivers used
illegally without licences in the Union of Myanmar [Burma] and are in
the process of scrutinizing and assessing those illegal satellite dishes
that should pay licence fees. Those that have illegal satellite
receivers in their possession should contact in writing to the Director
General, Directorate of Communications, No. 125 Pansodan Road, Yangon,
on or before 28 February 2001 by registered post stating the owner's
name, name of organization, foreigner or citizenship registration card,
occupation, full mailing address, the location of the satellite dish,
the particulars of the satellite dish - make, model, serial number,
size, and the date of installation...
Those who failed to notify the Director General, Directorate of
Communications, about the facts in paragraph one relating to the illegal
use of satellite receivers during the prescribed period will face legal
action according to existing laws.
___________________________________________________
DVB: Burma to build air defence systems along border with Thailand
25 January
DVB [Democratic Voice of Burma] has already reported that a Thai F-16
jet fighter intruded Burmese airspace in Kawthaung District yesterday
afternoon. DVB correspondent Myint Maung Maung filed this supplementary
report.
[Myint Maung Maung] Although the heavy artillery units stationed at
border regions in Mergui and Bokpyin knew immediately about the
intrusion of the Thai F-16 jet fighter into Burmese airspace, they did
not have any time to respond. Due to the immediate information provided
by the units, Kawthaung's seven-mile hill long range artillery unit and
Zadetgyi naval base artillery unit started to shoot pointlessly. A
Kawthaung resident told DVB that local residents were concerned when
they heard the loud artillery fire yesterday afternoon and there were
many conflicting remarks and comments. The movements of the army and
naval units could be seen today and security is very tight.
The Burmese side has also unilaterally closed the Kawthaung-Ranong
official border trade route but some small boats are still seen plying
the coasts with mutual understanding. In connection with the intruding
plane, the deputy commander of Coastal Region Military Command, Brig-Gen
Tin Latt, arrived in Kawthaung yesterday evening and is holding a
meeting with the regional military officers. It is such an irony that
the Thai jet fighter intruded Burmese airspace at a time when the SPDC
[State Peace and Development Council] is planning to build air defence
systems along the Burma-Thai border with the help of a Chinese Science
and Technology Group.
___________________________________________________
AP: 84 opposition politicians released from prison in Myanmar
YANGON, Myanmar (AP) _ In another sign of improving relations between
Myanmar's military government and the opposition, authorities released
from prison 84 members of pro-democracy leader Aung San Suu Kyi's
National League for Democracy, a senior party official said Friday.
The 84, including 38 women, included party members who were arrested in
April, August and September last year. They were released in small
groups from Yangon's Insein prison on Thursday, the NLD official told
The Associated Press on condition of anonymity.
The releases came as tensions are showing signs of easing between the
NLD and the ruling military, following secret talks between the two
sides over the past four months aimed at breaking a decade-long
political impasse in this Southeast Asian nation.
The NLD reported the release of 20 of the activists on Thursday. The
rest were freed later in the day. Jubilant party members, including
those freed, gathered Friday at the NLD headquarters in the Yangon, the
capital.
Suu Kyi, the party leader, remains under virtual house arrest.
``I will continue with my party activities,'' said one of the released
prisoners, Ma Khine, 32. ``That was my third time in prison and
hopefully my last.''
The senior NLD leader said most of the 84 were NLD youth members.
Thirty-one were arrested in April when Suu Kyi was trying to organize
the party's youth wing in Yangon. Two others were arrested in August,
after Suu Kyi was engaged in a nine-day standoff with the government,
blocked by authorities when she tried to travel outside the capital.
The other 51 were rounded up early on Sept. 22, when the NLD leader
attempted to travel to the northern city of Mandalay by train. All the
detainees from that incident have now been released, according to the
NLD.
The Myanmar government issued no immediate comment on the prison
releases.
Suu Kyi, the 1991 Nobel Prize laureate, and seven other NLD leaders
were confined to their homes on Sept. 22, but the travel bans on all but
Suu Kyi and party Chairman Aung Shwe were lifted on Dec. 1.
Party vice-chairman Tin Oo, 74, had been detained at a military camp
but was released Wednesday night. He was still barred from receiving
visitors Friday.
Myo Nyunt, 34, an NLD youth-wing member, said on Friday that he
strongly believes his release was the result of the first talks between
Suu Kyi and top generals in the regime in six years. He said he heard
about them during his prison confinement.
``I am very happy that talks have begun. I am confident that the
restriction on Daw Suu, U Aung Shwe and U Tin Oo will be lifted very
soon, hopefully today,'' he said. Daw and U are honorifics.
Meanwhile, the humble NLD headquarters was bustling with excited party
members greeting those released, most of whom said they were not treated
badly, even though some had lost weight. Ma Khine said they were freed
unconditionally.
Suu Kyi is engaged in a decade-old political deadlock with Myanmar's
military junta, which crushed a pro-democracy uprising in 1988.
In 1990, the generals called a national election that was won by the
NLD, but the military refused to honor the results and imposed severe
restrictions on league members.
However, following recent talks between the two sides, mediated by U.N.
special envoy Razali Ismail, a thaw between the opposing sides appears
to be under way.
The state-run media have stopped their usual attacks on Suu Kyi, and
Western sources in Yangon say the routine harassment of NLD party
members in the countryside has been called off.
The pro-democracy forces also have toned down their antimilitary
statements.
A four-member European Union delegation is expected to meet with Suu
Kyi and the generals to assess the progress of the reported talks during
its Jan. 29-31 visit to Myanmar.
___________________________________________________
Xinhua: Myanmar In Stage Of Political Evolution: Official Information
YANGON, January 26 (Xinhua) -- Myanmar's current political situation is
still in the stage of an evolution from a single party unitary state
with a centrally-planned economic system to that of a multi-party
democratic union of autonomous states with a market-oriented economic
system, said a government-released Information Sheet available here
Friday. Quoting a news bulletin recently published by the Myanmar
embassy in London, the Information Sheet said it is evolution rather
than a rapid transformation simply because "Myanmar is determined to set
its own priorities and avoid the disruption of social, moral and
cultural fabrics that characterized the nation and its people for
centuries."
It stressed that there need not be a fixed universal formula for
achievement of democracy, saying that each region of the world,
inhabited by different people with different beliefs should be allowed
to develop themselves without being pressured. The Information Sheet
blamed the United States government of the recent past with arrogantly
going on to carry out its threat to ban new investments in Myanmar
unilaterally yielding to pressure from domestic political activists.
It pointed out that the ban-threat has had little or no effect on a
country making economic progress by simply opening its borders to
neighboring countries. The Information Sheet praised itself that Myanmar
has a remarkable capacity to survive isolation, saying that the strategy
of exerting pressure for political change through economic sanctions is
ineffectual and counter-productive. The Information Sheet warned that
"Sanctions that lead to deprivation of the people's rights to basic
amenities such as food sufficiency, health care and education etc. can
easily induce a backlash of the people against the powers that imposed
such measures."
___________________________________________________
Xinhua: Myanmar Holds Second Women's Conference
YANGON, January 26 (Xinhua) -- The Second Myanmar Women's Conference
(MWC) began here Thursday to lay down effective action plans for
national women's development as a follow-up of the First MWC held in
December 1998. The two-day conference is sponsored by the Myanmar
National Committee for Women's Affairs (MNCWA). Speaking at the opening
of the conference, First Secretary of the Myanmar State Peace and
Development Council Lieutenant-General Khin Nyunt stressed the need to
acquire the advancing technologies in globalization in carrying out the
tasks, official newspaper The New Light of Myanmar reported Friday.
He called for paying serious attention to preserving and safeguarding
the national traits in carrying out the task for acquisition of modern
technologies. He warned against infiltration of alien culture,
emphasizing the need to be more serious in nurturing the mass of Myanmar
women to cherish and preserve their culture and tradition, promote
cultural heritage, strengthen nationalism and patriotism, and
safeguarding their originality with national awareness.
The MNCWA was formed on July 3, 1996. The day of the formation was
designated as Myanmar Women's Day which is observed every year. The
MNCWA is reported to have been successfully implementing the Myanmar
national action plan for advancement of the country's women covered by
the action plans for women's development of the 1995 Beijing Declaration
of the Fourth World Women's Conference.
Meanwhile, Myanmar signed the Convention on the Elimination of All Forms
of Discrimination Against Women in July 1997 and hosted the Regional
Consultation on Violence Against Women and Role of Health Sector in
January 1999. Myanmar's women population accounts for 50.34 percent of
the country's 50.12 million population, according to official
statistics.
___________________ REGIONAL/INTERNATIONAL___________________
Far Eastern Economic Review: Where Htoo Now?
Issue cover-dated February 1, 2001
For the former leaders of the Karen rebel God's Army, life after battle
could provide a semblance of normality By Bertil Lintner
IT WAS CLEAR they had been well prepared for the event. Johnny and
Luther Htoo, the legendary Karen twins from Burma with magical powers
and their own army, had obviously been given a good scrubbing, a haircut
and crisp new clothes prior to their January 17 date with the world's
media in Ratchaburi, a town close to the rugged mountains that separate
Thailand from Burma.
The word was that Johnny and Luther had ended their violence, and those
who had been living in fear of the rebels, could breathe a sigh of
relief.
The twins, and their so-called God's Army, had been implicated in a
number of terrorist attacks, including the storming of the Burmese
embassy in Bangkok in October 1999, and a hospital siege in Ratchaburi
in January last year when hundreds were held hostage. Now the threat,
real or imagined, was over.
The twins, who are said to be only 13 years old, will likely be reunited
with their parents at a border camp and get a chance to attend school.
Both are illiterate, though their followers insist they know the Bible
by heart. So, a happy ending to one of Southeast Asia's most bizarre and
tragic recent stories?
No. From the beginning there was more to the stage-managed surrender
ceremony than met the eye.
Local aid workers close to the refugee camps maintain that the last
remaining soldiers of God's Army, including the twins, in fact disbanded
in October and rejoined the Karen National Union, the main Karen
movement, which they had broken away from in 1997.
According to initial reports of the surrender from Thai authorities, the
twins gave themselves up peacefully after a Thai border patrol stumbled
upon them. But a later version of events, from the same authorities, had
it that the twins turned themselves in voluntarily. According to refugee
workers the border camps were sealed off several weeks prior to the
breakthrough, with food supplies being restricted. As one worker put it,
"the Htoo twins were basically starved out of their hiding places."
Conditions in the border camps have never been good, a point underlined
by Sadako Okata, the former United Nations High Commissioner for
Refugees. In an October visit last year she described the main Tham Hin
camp as "not up to an acceptable minimum standard for refugees." Supat
Chitranukroh from the Thai Foreign Ministry retorted that the poor
conditions might be seen as an effort to discourage refugees from
staying, pressuring them to return home.
And that may be the central point. Ratchaburi has the potential to be
developed into a major trade route between Thailand and Burma, given its
proximity to Bangkok. There is also a Burmese natural-gas pipeline that
runs from the Gulf of Martaban into Thailand near the town. Further,
there is talk of extending the cross-border road down to the gulf and to
develop a deep-sea port at nearby Tavoy that would serve both countries.
Bangkok-based Western diplomats note that the Karen rebels across the
border, and even the refugees on the Thai side, are simply in the way of
the grandiose development schemes. The enigmatic God's Army had to be
the first to go.
And the Htoo twins? As anthropologist Theodore Stern noted, many Karens
believe in a "divinely sent deliverer" whenever times are hard. This was
the origin of the myth surrounding Johnny and Luther, who could make
themselves invisible and were impenetrable by bullets.
However, Western missionaries also say the Karens accept this kind of
prophet as easily as they turn away from them once their powers have
waned. Now the child warriors have become merely pawns in a game being
played out way above their heads.
___________________________________________________
The Independent (Bangladesh): Yangon Embassy Says: Date for Joint Survey
of Dam to Be Finalized
January 24, 2001, Wednesday
Myanmar Ministry of Foreign Affairs and Bangladesh embassy in Yangon
have been working out a mutual date for a joint survey of the
controversial dam site in the Naf river, the Myanmar embassy here said
yesterday.
The embassy's counsellor told The Independent that a date for the joint
survey would be finalized soon.
The counsellor said that Myanmar Deputy Foreign Minister U Khin Maung
had telephonic conversations with the mission here over the issues on
Monday.
He confirmed the reports that their Deputy Foreign Minister recently
briefed the heads of the diplomatic missions in Yangon about the border
developments.
The Myanmar diplomat denied the allegation of massing troops along
border with Bangladesh.
Describing the ties between Dhaka and Yangon as "good" he said that
their embassy here was working with the Bangladesh government in a
friendly spirit.
___________________________________________________
AP: US welcomes release of senior Myanmar opposition leader
WASHINGTON, Jan 25 (AFP) - The United States on Thursday welcomed the
release of a senior Myanmar opposition leader and 19 activists, but
called on the Yangon junta to release all of its political prisoners.
National League for Democracy (NLD) vice-chairman Tin Oo was taken late
Wednesday from the military base outside Yangon where he had been held
for four months and returned to his home in the capital, NLD sources
said.
"We welcome the the release from detention of U (honorific) Tin Oo and
other National League for Democracy members," said State Department
spokesman Richard Boucher.
"We'd urge the Burmese government once again to lift the remaining
restrictions on U Tin Oo and to release all political prisoners that are
still on detention or under house arrest," he said.
Opposition sources say the political atmosphere in Myanmar has improved
significantly since the United Nations announced that a senior general
had held face-to-face talks with opposition leader Aung San Suu Kyi.
The talks appear to be paving the way for a landmark dialogue between
the two sides.
Aung San Suu Kyi and party chairman Aung Shwe remain under house arrest
after they and Tin Oo attempted to travel to the northern city of
Mandalay in September, in defiance of a travel ban.
___________________________________________________
_______________ ECONOMY AND BUSINESS _______________
Reinsurance Magazine: Political Risk; Playing with Fire
February 1, 2001
Daniel Wagner, Aig'S Regional Manager For South-East Asia Political
Risks, Based In Singapore.
The Asian economic crisis has led to a severe drop in business
confidence in the region, along with a growing demand for political risk
insurance, says Daniel Wagner.
Last September The Economist magazine ranked the world's most unstable
countries, based on political and economic stability, debt structure and
regulatory policies. Three of the top five countries were in Asia, with
Myanmar, Pakistan and Indonesia taking the first, third and fifth spots
respectively. Ahead of Pakistan and Indonesia were Zimbabwe and Russia
respectively.
That three of the top five were in Asia speaks volumes about Asia's
problem.
All the countries have a high degree of perceived political risk.
Whether the risk is really high is irrelevant, as the perception alone
is a problem.
In our interdependent, one market-orientated world, countries with high
degrees of perceived political risk have a tough time attracting foreign
investment and staying afloat economically.
Declining investment
Statistics produced by the Association of South-east Asian Nations
(Asean) paint a grim picture. Between 1995 and 1999 Asean's share of
global foreign direct investment declined from 20% to just 11%.
Ironically, Asean's share of the pie was declining even before the 1997
crisis hit and therefore before it was perceived to be a political risk
problem. One reason may be that other areas of the world, such as Latin
America, became equally or more attractive places in which to invest.
A more level playing field materialised for investors by the mid-1990s
as a result of the global embrace of democracy and increased competition
for investors' resources. In this increasingly competitive environment,
governments began to realise that investors do not necessarily knock on
their door without inducement.
Also, after the Asia crisis, investors discovered that they could invest
in other parts of the world with fewer perceived risks, thereby
enhancing their anticipated returns.
Since 1997, with the exception of the purchase of distressed assets in
places like Japan and South Korea, investors have generally been
hesitant to commit large sums of new capital to the region. Now that
investors perceive the area to be a problem, it has proved difficult to
lure them back.
That is likely to continue. In October 2000, the Asian Development Bank
predicted that inflows of portfolio investment in Asia are likely to
decline by as much as 75% in 2001, falling from $13.2 to $3.3bn.
One of the best ways to gauge the health of an economy or a region is to
look at the state of its stock markets and currencies. The picture in
Asia is not pretty.
Comparing the end of the year 2000 with the end of the year 1999 for 10
of Asia's stock markets is sobering (Figure 1). All the indices were
down. Leading the pack was Seoul (down 46%), followed by Bangkok (down
43%), Jakarta (down 38%) and Manila (down 35%). Clearly, investors have
been pulling out a lot of money from these markets.
A similar story can be told for Asia's currencies (Figure 2). Again, all
10 countries in the sample were down over the past 12 months, led by
Indonesia (down 25%), followed by the Philippines (down 19%), New
Zealand (down 19%), and Australia (down 17%).
When the carnage is this deep and widespread, it is evidence of a
region-wide phenomenon, an indication that there are fundamental
weaknesses in economies across the board. Much of this stems from a
crisis of confidence - traders and investors have lost confidence that
Asia will find its footing in the foreseeable future. There are a number
of reasons for this.
Firstly, commodity prices continue to be depressed. Some commodities,
such as palm oil and coffee, are down nearly 60% in three years. With so
many Asian economies dependent on the export of commodities as their
primary source of foreign exchange, the inability to earn sufficient
hard currency from these raw materials puts significant pressure on
their own currencies.
Secondly, with oil prices at 10-year highs, most of Asia's economies are
having to devote a larger percentage of their scarce foreign exchange to
the importation of oil.
Asia's oil consumption has increased by nearly 60% since 1990, resulting
in more countries importing refined petroleum, including net oil
exporters that include Malaysia and Indonesia. It is even estimated that
China, which currently imports only about 4% of its oil, will nearly
triple its importation of oil by 2020 to about 11%. High oil prices can
only have a negative impact on most of the region's economies.
All this is having a cumulatively negative impact on the people of the
region. Unemployment and poverty are generally rising in a stark
reversal of decades of progress in countries like Indonesia. These
problems are also fuelling a rise in political extremism. There has been
a dramatic increase in separatist movements, kidnappings and religious
extremism that not only threatens the well-being of the people of the
region, but has an impact on the investment climate.
In short, the combination of depressed commodity prices, high oil prices
and lagging social indicators is creating a regional investment
environment that is unattractive to foreign investors.
Victims of complacency
Last year, when it appeared that most of the region's economies were
well on the road to recovery, the region's governments became somewhat
complacent about the reform process. Many of these governments had done
an inadequate job of addressing corporate and governmental reform to
begin with. Few had made the hard decisions needed to break the bonds
big business had with governments and few had been bold enough to allow
failing companies to fail.
Instead, many injected more state cash into these companies, thereby
prolonging the inevitable. Indeed, it now seems clear that many
governments in the region declared their countries 'cured' prematurely.
When what was needed was decisive, firm action, what was often delivered
were political compromises that have deepened the structural malaise.
As a result, the Asia crisis is far from over. The region is unlikely to
truly begin recovering until its governments embrace meaningful reform
on a governmental and corporate level.
The consequences of inaction will take their toll on the people of the
region, and foreign traders and investors are likely to continue to lack
the confidence to return in numbers sufficient to make a difference to
regional economies.
Raised risk awareness
The result of all this is that there appears to be a greater awareness
on the part of traders and investors doing business in Asia about both
the existence of political risk insurance (PRI) and how it can be used
as a risk management tool.
The business community in Europe and North America has long sought out
PRI when conducting business in Asia. However, a growing numbers of
local businesses are becoming accustomed to seeking PRI for regional
transactions.
This has much to do with the increasing hesitancy to rely on a handshake
or a government-to-government agreement (as was common before the
crisis) to ensure the successful completion of cross-border transactions
in post-crisis Asia. The Reagan-era adage 'trust, but verify' seems to
apply, after many regional businesses endured substantial pain from
failed business ventures in the period immediately following the crisis.
Cautious investors
Since 1997 equity investors have in large part become hesitant about
committing new funds to projects. Many of the region's banks have
adopted conservative lending policies as a result of the crisis and are
treading cautiously when considering the commitment of new funds to
trade and investment transactions.
Two trends have compounded the impact of the crisis on banks. Firstly,
there is the absence of a steady flow of transactions that banks can
feel good about.
In the early and mid-1990s, when times were good, many banks jumped on
to the infrastructure bandwagon, providing loans for dozens of toll
roads, power and water projects. Many of these projects encountered
problems servicing their debt and, as a result, most banks have
tightened their lending procedures.
Secondly, not only do banks fund fewer long-term infrastructure projects
than before, but these projects must be of a particularly high quality
to generate their interest. Although profit margins for infrastructure
projects in Asia have actually increased for banks since 1997 (due to
the reduction in funds available for lending), there is generally
greater competition for the high-quality projects among financial
institutions.
For other types of lending, profit margins have been eroded. Whereas
previously a bank may have commonly factored in profit margins of
150-250 basis points (or higher) when determining its lending rates for
medium-term loans, it is now common for banks to work with margins of
100 basis points or fewer.
These new trends have narrowed the range of options that banks will
consider when addressing risk management issues, in an effort to remain
competitive.
When considering whether to include PRI in a transaction, for instance,
banks may be forced to choose between protection and profit. Many banks
will therefore lend without coverage, taking their chances on the
political risk question rather than cutting into the margin.
For political risk insurers, the fallout from the Asian crisis has also
been pronounced. A number of significant claims appeared as a result of
insuring some of the same infrastructure transactions that created
trouble for the banks. The most significant of these was a $290m claim
that occurred in 1998 and had an impact on a number of carriers.
For a small industry with a low level of premiums generated in a given
year - compared with mainstream lines of insurance - these types of
claims can have a considerable impact.
Fortunately, even at the height of the crisis only some of the pending
claims materialised. Many of the investment disputes that arose were
resolved through diligent effort on the part of project sponsors and
insurers.
Still, enough damage was done to cause underwriters to adopt an
underwriting philosophy similar to that of the post-crisis banks.
Yet, although now more conservative in their approach, there are few
countries in which underwriters will not even consider reviewing trade
and investment transactions. The issue is one of aggregation of
exposure.
Investors, traders and lenders seem to be focused on the same countries
as sources of concern over political risk-related issues. This presents
a challenge for underwriters, who naturally want to limit the amount of
exposure in any one country.
The playing field for political risk insurers has become crowded, by the
industry's standards. The arrival of new players since 1996 has made the
PRI business more competitive than ever at a time when the insurance
market is soft. PRI providers therefore find themselves in the same boat
as banks, dealing with smaller margins and chasing fewer desirable
deals.
This environment is favourable for buyers of PRI, but means that
underwriters face the dual challenge of accepting business that makes
sense while generating premiums that justify the risk assumed.
Continuing challenge
The bottom line is that Asia is not yet out of the woods. Banks will
continue to search for transactions that make sense while yielding an
adequate margin to justify participating in loan syndications and
political risk insurers will continue to provide coverage for
transactions that fit their risk profile and include a sufficient
risk-to-premium reward.
The challenge for businesses seeking loans and insurance for their trade
and investment transactions will be to obtain financing at an affordable
level while adding a suitable level of protection.
Asian governments will continue to face difficult choices concerning
reform. This may translate into unpopular decisions, but in
consideration of the long-term well-being of each country, its people,
its businesses and the region in general, these decisions must be made.
Ultimately, it will yield the perception among the international
business community that Asia is a safer place to do business.
___________________________________________________
The Economist: Good fellers
January 27, 2001
LOGGING in South-East Asia is often a criminal affair. Illegal fellers
have denuded much of Indonesia, and Myanmar's army, using slaves, is
fast cutting down that country's tropical trees. In Cambodia and Laos,
both rebels and soldiers have been felling trees for years, leaving land
bare and vulnerable to erosion and flooding. In Vietnam, where the
timber industry appears to be better controlled, illegal loggers
nevertheless still flourish. And Thai monks have become so desperate to
protect their country's few surviving trees that they wrap saffron robes
on the trunks as a blessing.
Malaysia has long promoted itself as the big exception in the region.
The government talks of "sustainable logging": chopping down only as
many trees as can be felled without endangering the survival of its
forests. Timber and furniture industries provide jobs, tax revenue and,
for loggers, political influence. Last year the country produced 22m
cubic metres of sawn logs, earning M$1.7 billion ($450m) from exports.
It sells more tropical logs and sawn tropical timber abroad than any
other country, and is one of the biggest exporters of hardwood. Domestic
demand for wood, especially furniture, grew by 12% last year.
Yet all this means an annual net loss of perhaps 400,000 hectares (1,560
square miles) of trees, between 1% and 2% of Malaysia's forest cover,
says the Food and Agriculture Organisation, though it admits exact
measurements are hard to get. Even though a third of the country is
covered by virgin or planted forest, the rate of felling is high--and
not in the long term sustainable. Worse, in the eyes of western
campaigners, Malaysia has refused to adopt international standards on
managing forests. Greedy loggers in Malaysia are accused of ignoring the
interests of indigenous people who live in the forests. In Sarawak, one
of the largest timber-producing states, activists say locals have been
displaced or even killed by loggers.
Forest nomads are losing their way of life, fish stocks have dwindled as
topsoil has been washed into rivers, and wood is denied to those who
want to build houses and boats, says Forests Monitor, an environmental
group. It also says profits from timber help to fuel corruption as
loggers help to finance local ruling parties, which in turn allocate
areas to be felled. "Sarawak is a flashpoint of bad forest practice,"
says another observer of the timber industry.
Now, however, the national government seems ready to adopt standards set
by the Forest Stewardship Council (FSC). These are used, mainly in
Europe, Latin America and North America, to certify that timber comes
from well-managed forests. In December the government and 200
representatives of indigenous and other groups agreed that the whole
industry should be certified. That means giving a voice to local
communities and ensuring that trees are planted as well as felled.
Activists who came from Sarawak said they were surprised even to be
allowed to attend the meeting (in the past their passports have been
snatched and lawyers forbidden to meet them), let alone to reach an
agreement.
So why has Malaysia's prickly prime minister, Mahathir Mohamad, ever a
proud opponent of western values, agreed to a scheme devised by green
groups such as the World Wide Fund for Nature (WWF), and the Tropical
Forest Trust, which is financed by European furniture shops? He may have
realised at last that being green pays well. Malaysia sells much wood in
China and Japan, where buyers do not care about its history, but the
most valuable markets are in the West. There, consumers want to believe
their wood has not come to them at the expense of the environment and
will pay as much as 50% more for certified stuff. That may mean as much
as $1,000 for a cubic metre of tropical wood, says Steve Howard of WWF.
Forests Monitor is still sceptical that Sarawak, which has few trees
left but large deposits of oil, will ever benefit. But for some
Malaysian forests, such as one of 100,000 hectares in Sabah, which have
already met FSC-standards, lucrative sales should be pending. Other
states, take note.
______________OPINION/EDITORIALS_________________
USG: State Department reaction to release of U Tin Oo
Jan. 25, 2001
Transcript of remarks by State Dept. Spokesman
MR. BOUCHER: We welcome the release from detention of Oo Tin Oo and
other National League for Democracy members. We hope it's another step
forward in the process of dialogue that was initiated earlier this
month. Although Oo Tin Oo was allowed to return home, he's apparently
still prohibited from receiving visitors. We therefore don't really have
any information about his physical condition.
Finally, we'd urge the Burmese government once again to release -- to
lift the remaining restrictions on Oo Tin Oo and to release all
political prisoners that are still in detention or under house arrest.
Q Were you able to make a more thorough assessment of the sincerity of
the dialogue with the opposition in Burma?
MR. BOUCHER: Not at this point, no.
Q Has there been contact with the Burmese on this? We have an embassy
there, right?
MR. BOUCHER: Yeah. We have an embassy there headed by the charge.
Q And you can't answer the question of whether there has been probing on
the part of the embassy there to find out how sincere they are?
MR. BOUCHER: I don't think I have an answer on it. I think it's too
early to say whether -- as we said, it should be a genuine dialogue. I
think it's too early for us to try to evaluate and say yes or no it is.
______________________OTHER______________________
PD Burma: Calendar of events with regard to Burma
Jan. 26, 2001
Published by PD Burma.
¨Z January 29-31st : The EU troika to visit Burma
¨Z February 5-6th : Meeting of Solidarity Groups, Brussels
¨Z February 6th : James Mawdsley to address the European Parliament,
Brussels
¨Z February 15th : Conference on Burma, Stockholm.
Oluf Palme International Center Swedish NGO Foundation for Human Rights
¨Z February 15-16th : Burma Donor Meeting, Sweden
¨Z March 8th : Next session of the Governing Body of the ILO
Forced labour in Burma to be discussed
¨Z April : EU Common Position Review
¨Z April : Inter-Parliamentary Conference, Cuba
¨Z March/April : UN Human Rights Commission, Geneva
¨Z May 13-20th : UN LDC III, UN conference on the LDC-countries,
Brussels
¨Z May 27th : 11th Anniversary of the 1990 elected.
¨Z May : ARF Senior Official Meeting, Hanoi
¨Z June : Meeting in the Governing Body of the ILO
¨Z June 19th : Aung San Suu Kyi birthday party and Burmese Women's Day
¨Z July : Belgium takes over EU Presidency
¨Z July : 8th RFA Ministerial Meeting, Hanoi
¨Z July : 34th ASEAN Ministerial Meeting and Post-Ministerial Conference
¨Z July : ASEAN Summit
¨Z Aug. 31st- Sep.7th : World Conference against Racism and Racial
Discrimination, Xenophobia and related intolerance, South Africa
¨Z December 1st : Worlds Aids Day
¨Z December 10th : 10th Year Anniversary of the Nobel Peace Prize for
Aung San Suu Kyi,
________________
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