December 1994 No.12, Volume 5 MANERPLAW ATTACKED BY SLORC On 10 Dec, the ruling State Law and Order Restoration Council (SLORC) in Rangoon broke its own unilateral cease-fire and launched a simultaneous attack on the headquarters of the Karen National Union and Burmese democratic forces at Manerplaw and on the headquarters of the All Burma Students Democratic Front at Dagwin. The attack came just days before the United Nations General Assembly (UNGA) was to adopt a resolution condemning SLORC. Its Foreign Minister U Ohn Gyaw had earlier told the UNGA of the tremendous progress the regime had made in pacifying the country through cease-fire negotiations with ethnic armies. The circumstances were reminiscent of an earlier incident. In July, Ohn Gyaw was reassuring Foreign Ministers of the Association of South East Asian Nations in Bangkok that there were no human rights problems in Burma when SLORC troops attacked a Mon refugee camp inside Burma at Halockani, creating an international incident. The attack on Manerplaw and Dagwin was precipitated by an internal KNU problem. The disagreement escalated into a fire fight between about 300 mutinying Karen soldiers and troops loyal to headquarters. Advancing on Manerplaw, the mutineers withdrew from the front lines and left the way open for SLORC troops to occupy strategic positions on Sleeping Dog Range and penetrate the Dagwin area to the north of Manerplaw. Over 1,400 SLORC troops were reported involved in the initial assault. At one point it was reported that a team of senior KNU officials sent to negotiate with the mutineers had been executed and that Dagwin had been taken by SLORC. Both proved to be false. SLORC artillery, however, pounded Manerplaw and other Karen positions causing concern that an all-out military offensive was under way. Foreign governments including the USA urged SLORC to call off the attacks. After some intense fighting, the military situation seems to have stabilized with SLORC troops withdrawing from the area around Dagwin. However, fighting around Nawta (20km south of Manerplaw) and Kawmoora/Wangka (60km south of Manerplaw) has intensified. SLORC could still be planning to take Manerplaw [KNU/ABSDF/NCGUB, N/Reu/Irr/Net/UPI/B]. The internal KNU problem has been widely reported as a Buddhist-Christian conflict. While it is true that the leadership of the KNU is Christian and the rank and file Buddhist, the conflict involved only a small group of mutineers who happened to be Buddhist by religious affiliation. It is a typical SLORC tactic to manipulate legitimate grievances in such a way as to divide the opposition along ethnic or religious lines - Ed. SECRETARY GENERAL TO MEDIATE On 13 Dec, the UNGA adopted its 4th consecutive consensus resolution on Burma. The resolution, the strongest ever, high-lighted the failure of SLORC to comply with the world community's past resolutions. The lack of progress towards democracy and continuing serious human rights violations were cited. The resolution this year specifically requested the Secretary General to assist in the national reconciliation process in Burma. In his report, Dr Boutros Boutros-Ghali stated that he first approached SLORC on 25 Feb.94, after the UNGA had in Dec.93 requested the Secretary General to assist in implementing its 3rd resolution on Burma. SLORC officially appointed its Foreign Minister U Ohn Gyaw to open a dialogue with Dr Boutros-Ghali only on 24 Aug.94. Subsequently, 3 meetings were held with Ohn Gyaw in New York in Oct.94. The Secretary General's representative then met with Lieutenant-General Khin Nyunt in Rangoon in Nov.94. SLORC, however, did not allow the representative to meet with detained democracy leader Daw Aung San Suu Kyi [UN941125]. It is understood that the Secretary General wants to assist the people of Burma. However, SLORC's representative at the UN, U Win Mra, in response to the resolution, claimed that national reconciliation is an internal Burmese matter and that the UN should not interfere - Ed. SLORC HUMAN RIGHTS VIOLATIONS Prior to the UNGA adopting its resolution on Burma, UN Special Rapporteur for Human Rights Yozo Yokota submitted his report stating that serious human rights violations are continuing in Burma. He said that torture, gang rape, forced labour, destruction or confiscation of private property, and summary executions are commonly practised by SLORC personnel [UN/Reu941127]. Burma News: PEACE AND DEMOCRATIC FRONT Eight ethnic groups that have cease-fire agreements with SLORC, formed an alliance called the Peace and Democracy Front on 3 Nov to back their demands for swifter progress towards democracy. At its first meeting, the Front urged Rangoon to release political prisoners including Daw Aung San Suu Kyi, and to recognize her party's victory in the 1990 elections [F941215]. Front members include: United Wa State Party (Chao Nyi Lai), Palaung State Liberation Party, Shan State Progress Party, Kachin Defense Army (KIA 4th Brigade), Myanmar National Democracy Alliance (Kokang), New Democratic Army (Kachin State), National Democracy Alliance Army (Kengtung), and Karenni National People's Liberation Front. The Lahu National Development Party participated in the Front meeting as an observer. The PDF is headed by Chao Nyi Lai. Wa commander Pao Yu Chang is the deputy head and NDAA's Lin Ming Xian is the Front's secretary. The PDF Committee includes Palaung leader Colonel Ai Mone, Kokang leader Yang Mo Leng, and Kachin leader Ting Ying. The PDF also agreed on military cooperation in case one of its members is attacked [N/Reu941206]. MORE CHINESE ARMS FOR SLORC Lieut-General Tin Oo, Chief of Staff of the Burma Army and SLORC Secretary 2, visited China in Nov.94 to finalize a new arms deal. In 1989, SLORC purchased US$1.4 billion worth of arms from China. The new deal for US$400 million includes AK47 assault rifles, 20 assault helicopters, over 50 artillery pieces, at least 60 tanks and armoured personnel carriers, six Hainan-class patrol boats, a number of smaller gun boats, and parachute equipment [F941201]. N.L.D. PRISONERS' MEETING According to the Far Eastern Economic Review, detained democracy leader Daw Aung San Suu Kyi was allowed to meet with other detained members of her party. The meeting reportedly took place on 1 Nov at the Army Guest house in Rangoon. National League for Democracy (NLD) Chairman Tin Oo (arrested Jul.89) and Party Secretary Kyi Maung (arrested Sep.90) were said to have had extensive discussions with their leader [F941208]. This follows two meetings between Daw Aung San Suu Kyi and SLORC generals in Sep.94 and Oct.94 (BA No.10 and 11, Vol.5, October and November 1994). AUNG SAN SUU KYI SPEAKS OUT On 21 Nov, former Philippines President Corazon Aquino delivered a speech on behalf of Daw Aung San Suu Kyi at the UNESCO World Commission on Culture and Development in Manila. Entitled ``Empowerment for a Culture of Peace and Development'', Aung San Suu Kyi criticized totalitarian regimes for resisting reforms by using culture, economic development, national integrity, national security and social stability as pretexts. She argued that true development involves much more than mere economic growth. For a nation to develop, she said, democracy or the true empowerment of the people, is a prerequisite. In conclusion, she called on the United Nations to support democratic movements around the world [UNESCO941121]. SLORC SNUBS EUROPEAN ENVOY SLORC snubbed an envoy of the European Parliament, Glyn Ford, by refusing to meet with him when he visited Rangoon in Dec.94. He was also not given permission to meet Daw Aung San Suu Kyi. Ford carried a letter from the president of the European Union Klaus Haensch inviting Daw Aung San Suu Kyi to travel to Europe to accept the Sakharov Prize awarded to her in 1990. Ford said, ``Clearly, they don't want a dialogue with the European Union... People keep saying the regime has improved. I saw no evidence of that [Reu941206]. AUNG GYI LEAVES POLITICS Former Brigadier-General Aung Gyi, 75, a co-founder of the National League for Democracy (NLD), and leader of the Union National Democracy Party, announced in Rangoon that his party has been scrapped and that he will become a business man. His Dingar Co Ltd is said to have signed 25 contracts with Kuala Lumpur- based Nopas Lion Group, and will be investing in banking, construction, communications, industry and agricultural projects (see Investments). Aung Gyi was General Ne Win's right-hand man in the 1962 coup d'etat but later fell out with his boss. He was imprisoned in 1965 (3 years), 1973 (1 year), and in 1992 (six months). His open letters to Ne Win are credited with having fanned the flames of political discontent which led to the country-wide democracy uprising in 1988 [LNB9410]. ARMED GROUPS AGAINST SLORC The following are the groups that are still resisting SLORC, Together they represent about 30,000 armed men: - Karen National Union (5,000 men) - New Mon State Party (1,000 men) - Karenni National Progress Party (1,000 men) - Merng Tai Army (18,000 men) - Chin National Army (200 men) - Rohingya Solidarity Organization (300 men) - Arakan Rohingya Islamic Front (200 men) - National Socialist Council of Nagaland (Both factions 1,000 men) - Arakan Liberation Army (100 men) - Arakan Army (100 men) - All Burma Students Democratic Front (All factions 2,000 men) - Peoples' Liberation Front (100 men) - Tavoyan Army (100 men) - Wa National Organization (200 men) - Various smaller groups Note: Figures are compiled from different sources including SLORC, Bertil Lintner and BA sources. Burma News: DR SEIN WIN IN KOREA Seoul - Dr Sein Win, Prime Minister of the National Coalition Government of the Union of Burma, attended the inaugural meeting of the Forum of Democratic Leaders in Asia Pacific, 1-2 Dec. Co-hosts were Kim Dae-Jung, former presidential candidate, and Corazon Aquino, former president of the Philippines. The FDL-AP is the region's first democracy forum which Kim hopes will become a strong counter-force to voices that use ``development'' as an excuse for totalitarianism or who argue that democracy is a western transplant. Kim hopes the FDL-AP will be a base of moral pressure on totalitarian governments, and a rallying point for Asian pro-democracy advocates [BA]. CEASE-FIRE GROUPS The following are the groups that have concluded military cease-fire agreements with SLORC, They together represent about 30,000 armed men: - Myanmar National Democracy Alliance (Hpong Kyar Shin - 2,000 men 31 Mar.89) - Myanmar National Solidarity Party (Wa) (Chao Nyi Lai - 15,000 men 9 May 89) - National Democracy Alliance Army (Sai Lin - 2,000 men 30 Jun.89) - Shan State Army (Hso Htien - 2,000 men 24 Sep.89) - New Democratic Army (Kachin State) (Sa Khone Taing Yin - 400 men 15 Dec.89) - Kachin Defense Army (KIA 4th Brigade) (Mahtu Naw - 900 men 11 Jan.91) - Pa-O National Organization (Shan State) (Aung Hkam Hti - 500 men 18 Feb.91) - Palaung State Liberation Party (Ai Mone - 800 men 21 Apr.91) - Kayan National Guards (Karenni) (Gabriel Byan - 200 men? 27 Feb.92) - Kachin Independence Organization (Zau Mai - 5,000 men 1 Oct.93) - Karenni National People's Liberation Front (Htun Kyaw - 300 men 9 May 94) - Kayan Pyithit Party (26 Jul.94) - Shan State Nationalities Peoples Liberation Organization, (Tha Kalei - 700 men 9 Oct.94) Note: In November 1994, eight of the above cease-fire groups founded a new organization, the Peace and Democratic Front (Page 2). ARMY CHIEF VISITS SINGAPORE Burma Army Chief of Staff Lieut-Gen Tin Oo led a 16-man delegation to Singapore in Nov.94. He met with Defence and Labour Minister Dr Lee Boon Yang, Minister of State for Defence and Finance, Rear-Admiral Teo Chee Hean, and Acting Chief of Defence Forces Rear Admiral Kwek Siew Jin [ST941116]. Foreign Investments: SLORC'S F.X. RATE DILEMMA One of the obstacles to economic development in Burma is the discrepancy between the official foreign exchange rate of US$=1 Kyat and the unofficial rate of US$1=120 Kyats. Acknowledging this problem, Brigadier-General Win Tin, SLORC Minister of Finance, said that the regime needs a fund of US$2-3 billion to cushion the impact of allowing the rate to float. Without the fund, he fears mass unemployment, runaway inflation and social unrest. He feel that the risks could be minimized if enough foreign direct investments can be attracted. He also acknowledged that SLORC is compounding the problem by continuing to incur budget deficits (US$5.9 billion in 1993-94) used to build roads, bridges and dams (not to mention buying arms -Ed). Again SLORC is gambling that the infrastructure projects will attract enough trade, investments and jobs to offset the inflationary pressure from the deficit spending. Win Tin said that the introduction of the Foreign Exchange Certificate is designed to unofficially get the Burmese economy accustomed to working at exchange levels closer to the unofficial rate so that adjustments will not be as great when the time comes to float the Kyat. SLORC is also privatizing to reduce the government and state economic enterprise sector which depends on the official exchange rate to survive. SLORC will continue to liberalize the economy to convince the Asian Development Bank, the World Bank and the International Monetary Fund to finance the transition. (At present, the US Government is legally bound to veto all IMF/World Bank loans to SLORC because the US claims that SLORC is not cooperating in combating the illegal opium/heroin trade -Ed). To fight inflation, SLORC is expanding the private banking system to mop up excess liquidity. No questions are asked regarding the source of funds when they are deposited with the banks or are used to buy treasury bonds. SLORC is also trying to broaden its tax base. To do so, the source of capital is neither questioned nor taxed [MB940803]. (The fact that no questions are asked regarding the source of funds works against SLORC's claim that it is serious about drug eradication because drug barons around the world will be able to launder their drug money with ease in Burma. On the other hand, if SLORC imposes any restrictions, confidence in its banking system will evaporate, given the military's past record of seizing bank accounts and demonitizing Burma's currencies - Ed. INDONESIA: INDONESIA HOUSE has been set up to co-ordinate and facilitate private investment and trade with SLORC. The agency is headed by Hutomo (Tommy) Mandala Putra, Chairman of Humpuss Group [MB940803]. BURSA TOBACCO CORP formed a joint venture with ZAYKABA CO LTD to lease land and a building from the Ministry of Industry [UPI94111120]. CHINA: YUNNAN MACHINERY IMPORT & EXPORT CORP granted SLORC a US$40 million interest-free loan to buy 30 passenger boats. In Jun.94, a US$30 million interest-free loan was given to SLORC by the same state-owned company to buy 14 river craft and 28 barges [F941208]. WUYANG BICYCLE PRODUCTION is supplying raw material and training engineers at the YADANAR MYINN BICYCLE FACTORY. 6,000 bicycles a month will be produced for export. Yadanar Myinn's four factories employ 88 people and are located on a 6.7 acre site near Hlaing University, Rangoon [MB940907]. MALAYSIA: NOPAS LION GROUP and Aung Gyi's DINGAR CO LTD are establishing DINGAR LION BANK OF MYANMAR, a commercial bank, with a paid-up capital of US$50 million [MB940907]. ARDHUNA HOLDINGS SDN BHD, a Nopas trading subsidiary, will manage a US$36 million joint venture with DINGAR to supply palm oil and other Malaysian products [MB940907]. NOPAS will invest US$20 million in a rice cultivation venture with DINGAR [MB940907]. DINGAR LION HOLDING CO LTD will operate a US$45 million department store [MB940907]. KASYA JAYA (M) SDN BHD, a Nopas manufacturing subsidiary, and DINGAR will invest US$22 million on infrastructure for cellular telecommunications [MB940907]. KASYA JAYA and DINGAR will invest US$30 million in a beach resort [MB940907]. NOPAS and DINGAR will invest US$19 million in a soap and detergent plant [MB940907]. NOPAS and DINGAR will invest US$5 million in gemstone mining machinery [MB940907]. NOPAS and DINGAR will invest US$8 million to supply stationary and books [MB940907]. Foreign Investments: JAPAN: DAIWA SECURITIES signed a Memorandum of Understanding with SLORC to help set up a capital market in Rangoon and aid its privatization efforts [F941215]. Daiwa is Japan's second biggest securities house. Zenichi Ishikawa, Director of Daiwa Institute of Research Ltd, stressed that the MoU is an advisory agreement and that it is different from a business agreement on a commercial basis. He also said that ``It will take more than one or two years to improve the infrastructure of Burma's financial sector'' [Reu941204]. KOREA: Korea donated 2 bulldozers, one road roller and spare parts worth US$200,000 to SLORC for road building along Burma's borders [Reu941206]. THAILAND: Thailand will give US$0.8 million to SLORC as Technical and Economic aid [B941109]. UNITED FOODS CO is planning to set up a joint venture to produce snacks in Burma. It currently exports, wafers, biscuits and candies to Burma [MB940907]. UNITED STATES OF AMERICA: CALTEX will set up a representative office in Burma and Cambodia in 1995. Chairman and Chief Executive of Caltex Singapore Clifton Hon disclosed that Caltex has been doing a market study since 1993 and that a final decision will be made in 1995. Caltex is planning a US$5 billion expansion over the next five years in Vietnam, Cambodia and Burma. According to John McPhail, Senior Vice-President of Caltex Petroleum Corp, 60% of the budget will be for oil refinery projects [BT941024]. PEPSI-COLA PRODUCTS MYANMAR, a 60% owned subsidiary of PEPSICO INTERNATIONAL, is building a second bottling plan for US$10 million in Mandalay. The new plant will have a capacity of 21,000 cases a day. The present plant in Rangoon will double its capacity to 42,000 cases a day. The Pepsi-Cola, an orange flavoured drink and lemonade are sold in 10 ounce bottles for Kyat 10 each (US$1.65). Myanmar Golden Star is the local partner [N941102]. SANTA FE ENERGY RESOURCES (S.E.Asia) Chairman Duane Radtke visited Rangoon to discuss Santa Fe's oil and gas exploration project in Pakokku [X941117]. NEWS SOURCES THIS ISSUE: ABSDF = All Burma Students Democratic Front, B = Bangkok Post, BA = Burma Alert, BT = Business Times, Singapore, F = Far Eastern Economic Review, Irr = Irrawaddy/Burma Information Group, KNU = Karen National Union, MB = Myanmar Business, Rangoon, N = The Nation, Bangkok, Net = BurmaNet, NCGUB = National Coalition Government of the Union of Burma, Reu = Reuters, SCB = Soc.Culture.Burma Newsgroup, SLORC = State Law and Order Restoration Council/Embassy, ST = Straits Times, Singapore, WPD = Working People's Daily, now New Light of Myanmar. UN = United Nations, UPI = United Press International, X = Xinhua News Agency, Beijing. FOR HUMAN RIGHTS REASONS The following companies withdrew after finding out about the human rights situation, or made a conscious decision not to do business in Burma because of SLORC's gross human rights violations: Smith & Hawkins, USA Levi Strauss, USA Liz Claiborne, USA Reebok International, USA ************* FOR ECONOMIC REASONS The following companies did business in Burma. They withdrew because of economic reasons: Petro-Canada Amoco, USA Yukong, Korea Royal Dutch Shell BHP Petroleum, Australia ************* FOR PROFIT The following companies are doing business in Burma in spite of SLORC's gross human rights violations including slave labour: Total S.A., France Unocal, USA Texaco, USA Premier Oil, UK Nippon Oil, Japan Petroleum Authority of Thailand Pepsico, USA Miriam Marshall Associates, USA Eddie Bauer, USA The Limited, USA VISIT MYANMAR YEAR - 1996 In Oct.94, the BURMA ALERT started publishing fax numbers in Burma to help prepare for SLORC's `Visit Myanmar Year' in 1996. Readers were urged to send news and information to the numbers and to send new numbers to the ALERT. The response has been tremendous. A special thanks to friends who sent in numbers A word of caution: SLORC's intelligence services definitely do not like the fax traffic. Unless the recipient is a SLORC operative, please do not repeatedly send to the same number. The person at the other end might be interrogated or even arrested. You may also want to remove your return number before sending the faxes. If possible, send to all the numbers listed. There is safety in numbers. As the volume of fax traffic grows, SLORC intelligence will not be able to monitor all the messages: Myanmar Golden Star 95 (1) 20860 Santi Forest (Myanmar) 95 (1) 22308 Cheery Myko Auto Co 95 (1) 22312 PMK Co Ltd 95 (1) 22677 Delta Combine Co Ltd 95 (1) 26552 Miwon Shwe Tha Jin Co 95 (1) 26654 Simon Petroleum Technology 95 (1) 30032 ABCS Serv, Trading & Consult 95 (1) 30407 Myanma Shipyards 95 (1) 30613 Doo Pung Co Ltd 95 (1) 30947 Komy Trading Co Ltd 95 (1) 31317 Jade Pavilion Inn 95 (1) 31916 Lucky Gold Star Co 95 (1) 32508 Myko Co 95 (1) 33606 Best Industrial Co Ltd 95 (1) 34252 Comfort Inn 95 (1) 34256 Aye's Family Ltd 95 (1) 50399 Multigate Corporation 95 (1) 52062 Baiyoke Kandawgyi Hotel 95 (1) 53062 Sunkyong Co Ltd 95 (1) 53072 Wooshin Sanghap Co 95 (1) 53268 Novel Garden Hotel 95 (1) 53704 Segye International 95 (1) 61909 Korea Myanmar Tourism 95 (1) 62355 Daewoo Electronic Myanmar 95 (1) 62870 Rahu Indus & Chem Enterprises 95 (1) 64088 Myint & Associates Co Ltd 95 (1) 64882 Myanmar Plastic Co Ltd 95 (1) 65251 Naing Yadana Co 95 (1) 65478 Life International Trading 95 (1) 65652 South Asian Nautical Expl 95 (1) 65654 OEM (Myanmar) Co 95 (1) 65769 Glover Electrical Industries 95 (1) 65842 Mok Yang Co Ltd 95 (1) 65955 SMI Corporation 95 (1) 67163 Yangon City Hotel 95 (1) 67763 Asia World Co 95 (1) 72280 Excellent Enterprise 95 (1) 72288 Yinmar Co Ltd 95 (1) 72373 Guest Care Hotel 95 (1) 73573 Hin Hin Trading 95 (1) 74708 Samsung Co ltd 95 (1) 77896 Soe San Trading 95 (1) 78045 Malar Myaing Motel 95 (1) 78312 Venus Trading Co Ltd 95 (1) 78766 Myanmar Daewoo International 95 (1) 78811 Myanmar Daewoo International 95 (1) 80147 Kabs Myanmar Co 95 (1) 80149 Kaiwa Marketing (Myanmar) 95 (1) 80193 Zaburit Engineering Co 95 (1) 81364 Makiya Trading 95 (1) 81684 Golden Global Group Ltd 95 (1) 81940 A & T International Co 95 (1) 82410 Asia World Co 95 (1) 82883 Export Services Ltd 95 (1) 82929 Grand Hotel 95 (1) 83360 Sri Asia Tourism Service 95 (1) 83377 Seven O Seven Travel & Tours 95 (1) 83533 Fuji Asia Co Ltd 95 (1) 83634 Daewoo Corporation 95 (1) 84246 Thanlwin Myanmar Ltd 95 (1) 84373 Myanmar Inspection & Testing 95 (1) 84823 SGS 95 (1) 85277 Showa Auto Enterprise 95 (1) 86090 Eagle Co Ltd 95 (1) 86350 Myanmar Win International 95 (1) 86509 Sanwa Trading 95 (1) 86648 Myanmar Korea Timber 95 (1) 87863 Number One Services 95 (1) 87874 Olympic Co Ltd 95 (1) 87879 U Than Ohn & Sons 95 (1) 89271 Aye International 95 (1) 89568 Pegasus Travel & Tours 95 (1) 89580 Myanmar Singapore Intn'l 95 (1) 89590 Budget Tours 95 (1) 89599 Goldwin Co Ltd 95 (1) 89706 Shining Star Tour Express 95 (1) 89862 Myanmar Leading Logistics 95 (1) 89887 Bandoola International 95 (1) 89965 Tai Yai Co 95 (1) 89972 A & S International 95 (1) 90597 Mingala Than Myint 95 (1) 91443 W & W Co 95 (1) 92600 NTN Myanmar Co 95 (1) 95797 Readers are requested to fax or e-mail additional numbers in their possession to the BURMA ALERT at Fax: 1 (819) 647-5403, E-mail: yawnghwe@hookup.net. Thank you.