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[theburmanetnews] BurmaNet News: Au

Reply-To: theburmanetnews-owner@xxxxxxxxxxx
Subject: [theburmanetnews] BurmaNet News: August 13, 2000

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They're called CarsDirect.com and it's a pretty sweet way to buy a car.

______________ THE BURMANET NEWS ______________
        An on-line newspaper covering Burma 
_________August 13, 2000   Issue # 1595__________

  "If we do it now, the value would decline to about 600 kyat and the 
lower rung of society would not accept the situation."

Brig. Gen. Zaw Tun on the floating the kyat.  See SPDC: Brig Gen Zaw 
Tun on Burma's Economy

SHAN: UNDCP official--Crops diminishing, drugs increasing
SHAN: Poppy Farmers Pay Tax To the Wa 
AP:  Junta denies NLD man was refused legal aid
SHAN: Burmese troops draw rations from Wa
RSO News Service: Border administration making fresh survey on 

Far Eastern Economic Review: Burmese Junta Recovers Dollars
SPDC: Brig Gen Zaw Tun on Burma's Economy
Bloomberg: Daewoo Corp Wins $10 Billion Myanmar Oil Development 
Business Recorder Report (Pakistan): Myanmar interested in joint 
The BurmaNet News is viewable online at:

__________________ INSIDE BURMA ____________________

SHAN: UNDCP official--Crops diminishing, drugs increasing

Shan Herald Agency for News

12 August 2000

No: 8-2

An informed source from Taunggyi told S.H.A.N. he met an official 
from the 
UN Drug Control Program who said the availability of drugs is on the 
just as crops in the project areas are disappearing.

"In the project areas, we see no poppy fields any more, but drugs 
seem to 
become more available," he was reported to have told the source.

The UNDCP has been introducing a crop substitution program called 
"Alternative Development Program" in the Shan State.

The source said the official did not elaborate his laconic remark.

According to the New Light of Myanmar, poppy acreage in Burma is 

1997 -89 151,200.006 acres
1998-99 102,066.766 "
1999-2000 90,437.61 "

Local people, however, say poppy fields under the protection of the 
authorities, are moving and extending out side the project areas.

"A Japanese official I met also agreed with the assessment of the 
guy," said the source.


SHAN: Poppy Farmers Pay Tax To the Wa 

11 August 2000.

Poppy farmers across Chiangmai are being taxed by several armed 
including the United Wa State Army, said a villager who recently 

The visitor, who admittedly is a poppy farmer, said they are now 
paying tax 
not only to the Burmese authorities but also to the Lahu militia unit 
Tin Win and 171th Division of the U\WSA in Mongton Township, opposite 
Wianghaeng and Chiangdao districts in Thailand.

"With the Burmese, we also have to buy meat and vegetables for them", 
said. IB 225 from Mongton is currently stationed in PangMaisoong, 
once the 
stronghold of Shan resistance, opposite the village of Piangluang in 
Wianghaeng District.

The farmers were required to pay 0.30 viss (1 viss = 1.6 kilogram) 
per acre 
to the junta troops and each family was expected to work at least 3 
according to reports received by S.H.A.N. (Poppy Acreage to be 
under Junta direction, 18 June)

There are at least 200 households in the vicinity of Mongkyawt, a 
taken by the UWSA since mid-June:

1. Kungsa (Lisaw)                               15 households;
2. Huey Harnled (Shan, Chinese, Lahu)           20      "
3. Mawk Khaotack (Shan, Chinese, Lisaw) 20      "
4. Kiulong (Chinese, Lisaw, Palaung, Pa-o)      20      "
5. Hueymerd (Palaung)                   8       "
6. Monghay                                      10      "
7. Kiu Namkham                          15      "
8. Mawk Kodtok (Palaung)                        20      "
9. Loi Khilek (Lahu, Lisaw)                     30      "
10. Mongpern-Naniu (Lahu)                       20      "
11. Kiu Zang-kab                                20      "
12. Kwang Hermin                                12      "

"Most farmers of the last two locations are from Thailand", he 
said. "They 
are not allowed to grow poppies there, so they come here." However, 
refused to name who they were, except that these farmers' expenses 
underwritten by Chinese "bosses" (pawliang).


AP:  Junta denies NLD man was refused legal aid
August 12, 2000

  Associated Press
  BURMA'S military government yesterday denied that an opposition 
member jailed for 21  years had not been allowed a defence in court, 
saying he himself had refused to be
represented by a lawyer.
  A government statement said Aye Tha Aung had been convicted of 
violating a
publication law and an emergency law and received three seven-year 
terms, which would
be served consecutively. Lt did not elaborate.
  Aye Tha Aung is the secretary of a 10-member proxy parliament set 
up by pro-
 democracy leader Aung San Suu Kyi's party, the National League for 
Democracy (NLD).
The party won a landslide election victory in 1990 but was barred by 
the ruling military
from taking power. On Thursday a statement by the proxy parliament 
said Aye Tha Aung had been arrested on April 24 and sentenced on June 
21. He was denied  the right to a defence lawyer during the trial, 
and his family has only been allowed to see him once, the statement 
  In response, the Burmese government statement said: "It not true 
that he was not allowed to have a defence. He himself refused to have 
a defence lawyer and even turned down the offer by the state to 
provide him with one."
  Aye Tha Aung is the latest among the hundreds of NLD members to 
have been detained and jailed by the military government, usually 
after summary trials and sentencing.
  Many have resigned from the party to escape harassment by the 
  The government stepped up pressure on the National League for 
Democracy since it set  up the proxy parliament, the Committee 
Representing the People's Parliament, in September 1998 when the 
government ignored its demands to convene a parliament.


SHAN: Burmese troops draw rations from Wa

Shan Herald Agency for News

12 August 2000

No: 8-3

News Brief On Wa

Burmese troops draw rations from Wa

Since the Wa entry into areas west of Mongton-BP1 road in June, only 
battalion-- IB 225 commanded by Ltc. Chit Hla -- remains in the 
Mongtaw-Monghta area, once warlord Khun Sa's stronghold. And not more 
10 soldiers are stationed at each post in Mongkyawt, Mongtaw and 

Meanwhile, the United Wa State Army units are filling the vacuum in 
Nakawngmu, Mongkyawt, Kiu Hulom and Loihtwe, the strategic mountain 
overlooking Thailand.

Many  sources agree that several Burmese outposts from Mongpiang to 
Monghsat, Monghsat to Tachilek, and Nakawngmu to Mongkyawt are 
rations from the UWSA.

Also reported, however, were some instances revealing Wa exasperation 
the rather preposterous situation. One of them occurred on 25 July at 
Mongkyawt when the Wa unit stationed there was butchering a cow 
bought from 
the villagers. The unidentified Burmese officer, upon hearing the 
sent his men to receive their share of the meat. Whereupon the Wa 
commander, also unidentified, was reported to have said: "You are 
government troops and should do better than just expecting to be 
waited on 
hand and foot."

The soldiers went back empty-handed.

Chinese being Favored over Wa?

Travelers coming through Nakawngmu, roughly halfway between Mongton 
BP1, say most of the Wa officers, captain upwards, are either Chinese 
Chinese speaking Was.

During their stopovers in Nakawngmu, it is not unusual to see 
aged between 14 and 15, washing the 4-wheel trucks with the number-
beginning with SW -- an unmistakable warning to ambitious checkpoints 
the road that they are not to be stopped or searched-- while their 
celebrate with food and drinks.

"All Wa vehicles we see here are Tigers (Tiger Toyotas) and Fords 4x4 
imported from Thailand," says one source. "Each battalion appear to 
outfitted with at least 14-15 offroaders."

Nakawmgmu getting bigger

Nakawngmu, once an unknown village, is getting notorious for its 
and,as a result, is getting bigger especially after the Wa influx. 
are more than 50-60 Karaoke pubs plus 2-3 massage parlors.

Land, fields and gardens are being confiscated at will by the Was, 
who have 
set up a new sub-village of their own in the northern part. "Every 
there has a satellite dish and electricity generator," say the 

They do not know whether owners who lost their lands were paid 
damages but 
some homes in Hsaikhao, Monghsat Township, are being paid K. 20,000 
to be 

"We've already bought the whole territory from Gen Khin Nyunt," one 
officer was reported to have said.

Wa Angry with Gen Maung Aye?

After warlord Khun Sa surrendered in 1996, the UWSA was reportedly 
by Gen Maung Aye to move back to their original territory near the 
border in the north.

"The Bumese wanted us to stay when Khun Sa was here, and now that 
Khun Sa 
is no more a threat, they want us to return," said a Wa 
commander. "We 
shall not succumb to their demand. We will never retreat. There shall 
only advance until the whole territory this side of the Salween is 

It is speculated that Rangoon, failing in their plan to remove the 
Was, are 
using them as cannon fodders against Yawdserk and Thailand.

"They had tried to use Kokangs against the SSA before," said a 
retired MTA 
officer, "but it did not work out the way they wanted."


RSO News Service: Border administration making fresh survey on 

Rohingya Solidarity Organization

August 10, 2000

Burmese military junta issued directives to collect population figure 
and other relevant data in northern Arakan State according to a 
person associated with administrative circle. The Burmese military 
junta sent instruction to various head of departments in northern 
Arakan state to collect population figure and other information from 
their respective area. The pro-forma provided by the central 
authorities includes population figure, school, health center, 
monastery, mosque, fishing projects and arable land among others. 

Accordingly, the concerned authorities have collected the relevant 
information since June 2000 and forwarded them to the higher 
authorities. While collecting information on family members, the 
authorities made house-to-house check and verified the family list 
and the members present at home.

Regarding the population figure the authority has divided into two 
categories (a) indigenous national and (b) Bengali population.

Rohingya Muslims of Arakan have fallen under the column of stateless 
people in Burma as per 1982 Citizenship Act and they are now termed 
as Bengali population.  

_______________ ECONOMY AND BUSINESS _______________

Far Eastern Economic Review: Burmese Junta Recovers Dollars


Issue cover-dated August 17, 2000

Burma's ruling State Peace and Development Council has launched a 
massive crackdown on the use of foreign currencies, particularly U.S. 
dollars, Rangoon residents report. Many blackmarket money-changers 
dealing in dollars have been arrested over the past month. Residents 
and local businessmen are now instead asking for government-issued, 
dollar-denominated "Foreign Exchange Certificates," or FECs, when 
charging tourists for services or changing their money into the local 
currency, the kyat. The going blackmarket rate for 1 FEC is 360 kyat, 
but the very few people who still dare to trade in the real U.S. 
currency are paying up to 380 kyat per dollar. The government is 
apparently trying to rid itself of FECs, which are worthless outside 
Burma, and get hold of as much foreign cash as possible. Regulations 
require foreigners arriving in Rangoon to change $200 into FECs, 
though visitors often negotiate the sum. Many foreign observers have 
suspected for some time that the Burmese government is extremely 
short of foreign exchange.

SPDC: Brig Gen Zaw Tun on Burma's Economy

[BurmaNet adds?This translation of an unpublished report was 
circulated on mailing lists on August 10, 2000.  The original speech 
was on July 7.  The comments attributed to Gen. Zaw Tun indicate a 
frankness and grasp of economics not generally displayed by a ranking 
member of the regime.]

Brigadier General Zaw Tun, Deputy Minister for National Planning and
Economic Development, delivered a speech at the "Seminar on Myanmar
Economy" held in the Padamya conference room of the Department of
Management Studies, Institute of Economics, on 7 July 2000.

The seminar lasted over 3 hours from 9:00am to 12:15pm.

Addressing the economic situation in the country, Brig. Gen Zaw Tun 
"the population of a country is important when calculating its 
growth rate. The Senior General [Than Shwe] himself took charge of the
matter and made the decision.  Foreigners and the intelligentsia were 
interested in and asked questions about the GDP Growth Rate 
increasing from
5.8 in 1998-1999 to 10.9 in 1999-2000.  Leaders of the country also 
that it was necessary to maintain a double digit GDP growth rate for 
four or five years.  But, to tell you the truth, the GDP did not grow 
that extent]: The real growth rate was only about 6 percent.

GDP Growth Rate is calculated on the bases of production, 
expenditure, and
income but the figure we arrived at was calculated only by taking the
production method into consideration since the other two methods 
could not
be brought into the computation.  We could have arrived at a more 
figure had we taken the other two methods into consideration.  On top 
that, we included in our calculations agriculture previously produced 
farmlands in reserved forest land which was not part of the 
before, we included as industrial production rice produced from 
operated threshers, and we even added coconut production in that

He said, "The five factors that are vital to boost the GDP growth 
rate are:

(1) The potential derived from natural and human resources must be
efficiently utilized.  The potential has been there for some time but 
have not been able to make effective use of it.  GDP growth rate can 
increased if we do.

(2) Separate efforts should be made by regions--divisionally and
state-wise--to increase the GDP; a division like the Tenasserim 
has a lot of potential for success.

(3) According to the nature of economics, the economy must recover 
after a
period of downward trend but the process would not be as easy here as 
the other Southeast Asian countries.

(4) One factor that contributed to an increase in the production of 
agriculture sector this year is good climatic conditions.

(5) Reclaiming wetlands and fallow land into cultivatable acreage by
allowing the private sector to invest in them was the primary factor 
boosting production and that perhaps may contribute to the growth of 
GDP by double digits.

With regard to key economic factors of the country, Brig. Gen. Zaw Tun
discussed (1) investment, (2) trade policy, (3) taxation, and (4) 


He said, "The investment situation is unsatisfactory.  A lot of money 
being invested in Che Hti (underground betting on lottery numbers).  
A lot
of investment opportunities will be there if we opened up the capital
market and stock and share markets, which conform to the frame of 
mind of
the Myanmar people.  But my superiors are fixated with a belief that a
currency crisis would be caused by speculators.  I have not been able 
convince my superiors up to now even though I have been telling them 
governments in Southeast Asian countries did not close down the 
markets because the markets benefited the countries greatly even 
though it
is said that capital market speculations caused the currency crises.  
MIC [Myanma Investment Commission] is too protective by nature and 
needs to
be reformed to become investor friendly.  It is also not appropriate 
force tourists to change their currencies into FEC's [Foreign Exchange
Certificates] because they may end up spending more than those 
Human beings by nature abhor anything forced against them.

Trade Policy

Brig. Gen. Zaw Tun said, "there is no consistency in the trade 
policy.  The
Trade Minister, together with entrepreneurs close to him, selects the
commodities that would be opened to the market and after some time 
close it down again. The other people suffer as prices fluctuate 
on the whim of the leaders.  For example, when the Senior General 
went on a
tour, he heard about the rising onion prices and enquired about it.   
told it was because onions were being exported, the Senior General 
'export only when there is a surplus, let the country consume 
first.'   The
Trade Ministry therefore issued a directive stopping even the onions 
loaded onto ships for export.  Onions already given export permits 
also prevented from being shipped.

Ministries are only required to lay down policies and control their 
sectors.  But, under the current situation, the way work conducted by 
is not correct.  A planned economy is being pursued because we have 
succeeded in promoting a free market economy.  Economic plans are not
needed in the United States and the economy is left uncontrolled.  
like that martial arts style using a bamboo stave mentioned in the 
the 'invisible hand' [of the market forces] keeps things working .  Of
course, certain key elements have to be in place so as to control the
economy.  We must try to emulate them.


The budget has constantly shown a deficit since the previous 
We have been printing money to carry out reforms, development, and
constructive tasks.   The necessary revenue to run the government is 
there and there are no back-up or reserve funds.  Although we are 
that we are heading for inflation, we continue to focus on 
because we believe they are needed.  But, building new dams without
budgetary provisions to maintain the old ones is in fact a waste, like
pouring water in the sand.

We have gas to sell for foreign currency but since the other country 
is not
buying, we do not earn any foreign currency.  The Myanmar Government 
is not
in the position to buy and use that gas.  Although there were 
options, it
is about two years late now.

Instead of looking at suitability of conditions when making 
policies, we laid down principles from a security point of view, and 
ended up growing rice in Chin State, which turned out not to be cost


Three different exchange rates are being applied in the currency 
The official rate is 6 kyats to 1 US dollar, the rate for collecting 
duty is 200 kyats to 1 US dollar, and the market rate is 370 kyats to 
dollar.  Although I don't know when and how the exchange rate will be
reformed, I suggested to my superiors to deregulate and float the 
before 1996-1997 when the market value was between 150 to 200 kyat per
dollar.  Had this been done the value would have declined to around 
kyat per dollar.  If we do it now, the value would decline to about 
kyat and the lower rung of society would not accept the situation.

I have also reported to my superiors about the need to submit our 
tariff rates to the WTO [World Trade Organization] in two years.  But 
financial sector has done nothing to prepare for reforms or change.
Although I have said it would be too late to change only when a 
Market and Stock and Share market is introduced, there has been no 
or reform.  It looks like changes will be made only when it happens.

Local and foreign entrepreneurs only try to engage in a joint venture 
the [Myanmar Economic] Holding Company because they enjoy more 
Although the price of edible palm oil has dropped in foreign markets, 
local price has not dropped because of monopoly practices.  Presently,
import permit for edible palm oil is granted to applicants quoting the
lowest selling price in the country, and the practice is gradually 
the entrepreneurs who work with the Holdings company.

The price of electricity has risen which is killing small and medium
enterprises.  Though the policy has been to help foster these 
the true situation is quite the contrary to that policy.  I will 
the matter when opportunity arises.
Open Discussions

Participants at the Myanmar Economic Seminar also took part in the
discussions and raised questions to Brig. Gen Zaw Tun.

Entrepreneurs said it was not economically feasible to continue 
working as
electricity costs for a business located in industrial zones had 
risen to
500,000-800,000 kyats per month and production costs were too high.  
could not compete with people who were in effect stealing electrical 
and lowering their production costs by setting up businesses within
military compounds to raise military welfare funds on contract.  They 
rather invest in cars trading and other similar trendy businesses.

Suggestions were also made for the inclusion of provisions in the
Investment Law to ensure adjudication of courts are independent so 
investors will be protected when disputes arise between them and the

When a question was raised about preparations being made for the AFTA
[ASEAN Free Trade Agreement] unit as all goods are to become tax free 
the year 2005 under the AFTA Agreement, Brig Gen. Zaw Tun said no
preparations have been made yet, and added Myanmar was only there on 
and when that time comes, Myanmar is bound to suffer because it will 
not be
in a position to produce any goods.  Goods from abroad will only flow 
"There is no way, Myanmar with a GDP of only one billion US dollar can
compete with Thailand which has a GDP of 55 billion dollars.  There 
is a
lot we have to do to catch up with them.

When a question was raised about Myanmar doing a market survey to see 
feasible it would be to import Thai and Chinese goods to resell them 
Bangladesh, India, Pakistan and other BIMST-EC countries, Brig. Gen. 
Tun said our country is not in a position to do that under the present
conditions. He jokingly said that previously, when he was in the Army 
could discuss things openly when he met with the Senior General but 
that he
was now somewhat afraid of losing the monthly salary of a Deputy 
which is 100,000 kyat while a minister's salary was 150,000 kyat.
On education, he said, "...It appears that the higher up generals know
nothing about what is happening. From the advertisements by overseas
private educational institutions, they found out that the costs [of
education] were in the hundreds of thousands, and only then they put 
a stop
to the advertisements.  But in reality that was a fact and being a 
with children of my own, there was a real need to tackle the 
issue."   The
deputy minister said he has asked for information about those costs.

As a policy maker, he said, "Sometimes when you chop, the blade cuts 
an unintended place.  We have now allowed tax-free markets to reduce 
but the markets only have about four, five or 10 chickens for sale at 
kyat [per viss or 3.6 pounds] and edible oil is being sold at 10 
[0.36 pounds] per person at controlled prices.  These cannot be taken 
indicators of the true prices.  The good intentions cannot be 

Bank Interest Rate

He said, "Investments have not increased even though the interest 
rate has
been reduced to 10%.  Privatization is growing only in the cinema 
The Ministries seem to be afraid of losing the state enterprises even
though they are not profitable, and I don't know the reason why.  
Maybe we
should imitate Czechoslovakia. It might be a good idea for the 
leaders to
walk down the street and pick out the factories randomly to decide 
who will
work that factory.  The important thing is for the government to 
transparency and practice consistency.

"It looks like whoever takes over the Trade Ministry needs to be 
regardless and it will be lucky for anyone to last until pension 
age.  It
looks like anyone who continues to work there do so only because 
there is a
great reluctance to do something drastic.  Business owners always 
seem to
find a way of making money just like oil finds a way to seep out from 
hole regardless of the directives issued." Brig. Gen. Zaw Tun, used an
English phrase, "Killing me softly with the system," to describe the
On news and information when a question was then raised why weather 
were no longer covered in the newspapers despite its importance for
agriculture, the deputy minister said there must have been more 
news than weather reports that needed to be published.

"The activities of the ministers had to be screened on television so 
the Senior General would know what they were doing. Once the Senior 
remarked that although the activities of the Ministers was shown 
nightly on
TV the people did not really seem to know what they were doing.  I 
was in
the Army then and I jokingly said I wanted to tell the Senior General
something truthful, that he could scold me, berate me, and beat me 
but that
he should not sack me for it.  The fact is people turn off the TV 
when the
news is shown and turn on their videos or do some other work. Only 
the news hour they switch the TV on again to view Chinese movies,
that.perhaps it was only the Senior General who may be watching the 
news on


He also said, "Some who are holding responsibilities in the country 
proper 'awareness'. Divisional Commanders who have been told to 
compile the
figures for the GDP included income derived from such things as 
properties from drugs to levies at open markets and distorted the 
So the data were not correct.  Efforts have to be made to make them
understand.  Some thought that their promotion would be assessed on 
figures, and included levies at open markets.  Once, two weeks after a
monthly divisional commanders meeting, one of them called me by phone 
report that the GDP in his division had risen five times."

He said he was satisfied with his meeting with the MBA (Myanmar 
Association) and would like to meet with them again time permitting. 
could be contacted by phone at 252250 at any time and jokingly said 
they should not abuse him.


Bloomberg: Daewoo Corp Wins $10 Billion Myanmar Oil Development 
 Seoul, Aug. 10 (Bloomberg)
 Daewoo Corp., the largest and most-indebted unit of near-insolvent
 Daewoo Group, said it won an oil exploration project in Myanmar, 
could be worth as much as $10 billion.
 Under an agreement signed with state-run Myanma Oil & Gas Enterprise,
Daewoo will invest about $180 million over the next four years for 
the project,
 said Kim Bum Seok, a spokesman for Daewoo Corp. Excavation will 
start Oct. 1,
he said.
 The project will take place on the southern coast of Myanmar on the 
of Bengal. Daewoo will have full ownership of the mine, which is 
expected to
 have a capacity of 500 million barrels of oil and 3 trillion cubic 
of gas, the company said.
 The project is part of Daewoo Corp.'s efforts to expand its presence 
 natural resources excavation projects around the world. The company
earned 15 billion won ($13.5 million) from a similar project in Peru, 
launched in
 1996, and expects to start realizing profit from a liquefied natural 
 development project in Vietnam this year.
 Daewoo Corp. is scheduled to split into three units -- trading,
construction and a holding firm in charge of selling bad debt -- next 
month in an
effort to improve its finances. Daewoo Group owes creditors about $80 
after declaring that it couldn't pay back its debt last year.
 With the spin-off, creditors will swap 375.8 billion won ($338 
of debt for equity in the trading unit and 727.5 billion won of debt 
for a
 stake in the construction company.
 Daewoo Corp. shares gained 2.7 percent to 385 won, adding to its 28
percent gain in the last three months.
 Aug/10/2000 4:22 ET


Business Recorder Report (Pakistan): Myanmar interested in joint 

KARACHI (August 12) : The Board of Investment (BoI) has requested the 
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to 
identify Pakistani companies interested in joining hands with Myanmar 

A high-powered Myanmar delegation led by Lieutenant General Khin 
Nyunt, Secretary (I), State Peace and Development Council of Myanmar, 
had held a meeting with the federal minister for commerce, industries 
and production on July 6.

The delegation had identified following areas for Pakistan's 
investment in Myanmar:

New textile mills, pulp and paper mills, diesel engines (1000 HP and 
above), tractors and combined harvesters, chemical industry, 
multipurpose engines, machine tools, and BMR in consumer goods 



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