MAY 1997
Volume 8, No.5
Investments:
INVESTMENTS - US\$2.8 BILLION
On 4 Apr, SLORC's Ministry of National Planning and Economic Development said
foreign investment for the 1996-7 fiscal year was US\$2.81 billion. Proposed
direct foreign investment from 1988 to 1997 was US\$6.05 billion (247 projects).
Of this total, US\$2.1 billion (34 projects) were in the petroleum
and natural gas sector and US\$1.1 billion (82 projects) were in manufacturing.
Other industries attracting major foreign investment were real estate - US\$0.9
billion (14 projects); and hotels/tourism - US\$0.8 billion (39 projects)
[Reu970404].
KYAT FALLS
On 7 May, the black market exchange rate in Rangoon rose from 167 to 182 Kyats
to the US dollar. The official exchange rate is 5.8 Kyats to the US dollar.
SLORC's foreign currency reserves are at US\$183 million, which is low when
compared to last year's US\$688 million [AT970508, B970427].
BURMA HOTEL OCCUPANCY DOWN
According to a 18 May report, room occupancy rates in Thai hotels in Burma
dropped to 10\%. Hotels and services make up the bulk of Thai investment in
Burma [B970518].
U.S. SANCTIONS FOR SLORC
On 20 May, US President Bill Clinton signed legislation barring US investment
in Burma. Companies already in Burma are exempt from the law, which threatens
those who break it with 10 years in prison and a US\$55,000 fine. The
sanctions ban `new investment' but until the US Treasury issues its
regulations, it is not clear if the sanctions will also cover new investments
in on-going projects [LAT970528].
Burma Alert - Fax: 1 819 647-5403
The May issue of the `BURMA ALERT' is late due to a re-organization. In
the future, the `ALERT' will be published in cooperation with the yet to be
established Euro-Burma Office in Brussels. Apologies for the delay - Ed.
AUSTRALIA:
FOSTER'S BREWING GROUP said on 11 Apr that it will not include Burma in its
investment strategy and will not sell beer in Burma. Foster's statement came
after the Ethical Investment Group of Victoria organized a consumer boycott
against Foster [FS970411, ES970412].
CANADA:
After talks with Canadian Friends of Burma, SEAGRAM COMPANY LTD announced on 30
Apr that it has stopped distributing its products to Burma. Seagram had been
sourcing Chivas Regal Whisky to Burma through Tanyaung International,
owned by Thein Tun. Tun who was a partner of PepsiCo before its divestment in
January [CFOB970501].
CHINA:
GUANG DON ZHU HAI CORP will build two sugar mills, one in Zeyawady, Pegu
Division, and the other in Taung Zin Aye area in Lewe, Mandalay Division.
The mills will be built in cooperation with Myanmar Sugarcane Enterprise of
the Ministry of Agriculture and Irrigation, and the Zeyawady mill, to cost
\$US 16.43 million, will process up to 1 500 tons of sugar per day [NLM970523].
FRANCE:
On 16 Apr TOTAL SA formally backed a plan by Ultramar Diamond of the USA to
acquire TOTAL's share in its North American assets. Although TOTAL had denied
US sanctions would affect TOTAL's operations, there was speculation that the
move was made in order to avoid confrontation with the US regarding sanctions
against Burma. TOTAL will give up its 55\% share for US\$811
million and retain on an 8\% interest in North America [FT970417].
Investments:
INDONESIA:
P.T. SEMEN CIBINONG and its sister company P.T. TIRTAMAS will hold
70\% of a new US\$210 million cement plant. Myanmar Economic Holdings Ltd,
SLORC's investment arm, will hold the remaining 30\%. The new plant
will triple Burma's cement output [BL970612].
JAPAN:
MITSUI \& CO may guarantee a US\$150 million loan to SLORC through the BANK
OF TOKYO. Commercial loans have not been guaranteed by private investors
since 1987. SLORC is short of foreign exchange and official growth figures of
8\%-9\% are exaggerated. Mitsui, in Burma since 1994, is currently building
an industrial complex located on the northern outskirts of Rangoon. Japanese
companies account for some US\$184 million of foreign investment in Burma
[BA9611, AT970519,28, F970605].
MYANMAR M.C.G.'s 110-room Yangon International Hotel opened on 15 May
[NLM970516].
KOREA:
A consortium of DAEWOO, HYUNDAI, and L.G. INTERNATIONAL CORP signed a US\$15
million contract to supply electronic equipment to SLORC. The contract, signed
28 May with the Myanmar Electric Power Enterprise, will be financed with loans
from the Korean government [NLM970521].
On 20 May, MYANMAR DAEWOO LTD signed a joint-venture agreement with the
Ministry of Rail Transportation to lease construction equipment [NLM970521,
KH970529].
On 2 May, HYUNDAI and Sinmardev International Pte Ltd of Singapore announced
the formation of a consortium to build a US\$300 million industrial complex
in Rangoon. The complex involves construction of a port 18 km southeast of
Rangoon, to be completed by 2000.
HYUNDAI also signed a Memorandum Of Understanding with SLORC on 3 Apr to
set up fertiliser processing plants in Burma. Hyundai agreed to ship 100,000
tons of fertiliser in two years [NLM970407, AFP970502, DJ970403].
LAOS:
LAOS on 19 May signed a bilateral agreement with SLORC to cooperate in tourism
matters. The Lao delegation was led by Cheuang Sombourzkanh, Deputy Minister
of the Prime Minister's office [NLM970516,20].
MALAYSIA:
Three weeks after US sanctions were enacted, Petroleum Nasional Berhad
(PETRONAS), the state-owned oil company of Malaysia, said it is looking into
buying Texaco's stake in Burma's Yetagun gas field. Hassan Marican,
Petronas president, said Texaco had appointed an investment banker to look for
buyers. At its annual meeting in May, Texaco cited financial
concerns as a reason to sell its 42.9% share in Yetagun. Petronas owns 70\%
of OGP Technical Services, which along with Nova Gas International was awarded
the contract in Jan'96 to build the Ban-I-Thong to Ratchburi segment of
the pipeline from Burma [N970523, NLM970529, Reu970610, BT960126].
MBF HOLDINGS BHD is applying for a licence to offer full banking services in
Burma. MBf set up a representative office in Rangoon two months ago [ST970524].
NORWAY:
On 1 May, Foreign Minister Byoern Tore Godal announced that Norway will remove
Burma from its Generalised System of Preferences (GSP). The European Union of
which Norway is not a member, removed Burma from its list of countries
receiving the GSP on 24 Mar [B970326, AFP970501].
SINGAPORE:
On 2 May, SINMARDEV INTERNATIONAL PTE LTD and Hyundai Corp of Korea announced
the formation of a consortium to build a US\$300 million industrial complex
in Rangoon. The complex involves construction of a port 18 km southeast of
Rangoon, to be completed by 2000 [NLM970407, AFP970502, DJ970403].
THAILAND:
ROJANA INDUSTRIAL PARK PLC announced on 17 Apr that it will hold a 60\% stake
in a new US\$23 million joint venture with SLORC's Department of Human
Settlement and Housing Development, to be called `Rojana Yangon' [N970418].
Investments:
THAILAND continued:
The EXPORT-IMPORT BANK (EXIM) OF THAILAND was forced to stop negotiations with
US firms after US sanctions against investment in Burma were imposed on 22 Apr.
EXIM is affected by the sanctions because it has granted a loan to the
Italian-Thai Development Co which is building the Mandalay airport [TT970424].
U.S.A.:
ANHEUSER BUSCH CO said on 25 Apr that it will no longer export BUDWEISER
BEER to Burma (US sanctions imposed 22 Apr). Budweiser was exported to Burma
but the company has no employees or investments there [Reu970425].
Four days before Bill Clinton signed legislation banning investment in Burma,
INTERDIGITAL COMMUNICATIONS CORP of Pennsylvania concluded a contract with
the Myanmar Posts \& Telecommunications department to supply equipment to Burma
for a wireless phone system. The equipment will be manufactured in the US and
assembled in Burma. InterDigital has worked with SLORC twice in the past two
years. In July 1995, InterDigital signed a contract to install 500 lines in
Rangoon, and in March 1996 another contract was signed to install a 250-line
auto-radio system in Mandalay. According to a Xinhua news agency, Burma now
has 170 000 phones, up from 73 000 [Net960305, BA0496, X970521, IHT970522].
On 2 May, after allegations that its Worldperks Frequent Flyer Program is
benefiting heroin producers in Burma, NORTHWEST AIRLINES withdrew the Rangoon
Traders Hotel from its program. The Traders Hotel is part-owned by Lo
Hsing-Han, named by the US State Department as a `narco-trafficker.' Lo's
son and business partner, Steven Law, is barred from visiting the US due to his
involvement in the drug trade [FBC970502, BG970406].
On 13 Apr. TEXACO INC Chief Executive Peter Bijur announced that Texaco is
considering selling its Andaman Sea natural gas project offshore Burma
[Reu970513].
On 24 Apr, John G Vandermeer, Vice-President for new ventures in South and
Southeast Asia of UNOCAL said that due to USA sanctions, UNOCAL will give up
two natural gas blocks in Burma's Andaman sea [AFP970424].
Due to the late publication of the ``BURMA ALERT'', significant news items
will be presented in chronological order in this issue:
News Chronology
SLORC DEMANDS REJECTED
On 31 Mar, SLORC presented the Karen National Union with a demand to withdraw
from the Mae Tha Raw Hta Agreement. The Agreement reached in January with
other ethnic groups in Burma called for an end to military rule and gave
support to the Burmese democracy movement. On 3 Apr, the KNU rejected the
demands. SLORC had reiterated that the KNU must lay down its arms and that
the KNU must not attempt to `collaborate' with other political parties. The
KNU responded by urging SLORC to dialogue with other political parties in
Burma [KNU970508, S970505].
UNOCAL OPENS K.L. OFFICE
On 9 Apr UNOCAL President John Imle said that UNOCAL is opening a new
regional head office in Kuala Lumpur, Malaysia [Reu970409].
SHANS CLASH WITH SLORC
Twenty-three Shan and ten SLORC soldiers were killed on 10 Apr when Shan United
Revolutionary Army (SURA) troops attacked a SLORC base near Ho Mong, the former
headquarters of Khun Sa, the infamous drug lord who surrendered in
1996 [Reu970421].
POWER STRUGGLE WITHIN JUNTA?
Reports of a power struggle between General Maung Aye and Lieut-Gen Khin Nyunt
resurfaced in the wake of the Tin Oo bombing. Tin Oo, SLORC Secretary-2 and
Army Chief-of-Staff, is reported to be allied with Maung Aye, mastermind of
the recent offensive against the KNU. Maung Aye, SLORC Vice Chairman and Army
Commander-in-Chief, is said to be against Burma joining the Association of
South East Asian Nations (ASEAN). Khin Nyunt, SLORC Secretary-1 and head of
military intelligence, is said to favour greater foreign investment and trade
liberalization [JT/B/N970410].
News Chronology:
MOSLEM FESTIVAL RESCHEDULED
On 11 Apr, SLORC announced that the ritual slaughter of animals would be
forbidden. Moslem community leaders, therefore, on 12 Apr cancelled the
rituals and rescheduled the Bakhri Eid Festival from 17 to 19 Apr to coincide
with the Burmese New Year [AFP970417].
U.N. EXTENDS MANDATE
The UN Commission on Human Rights in Geneva at its 53rd session, resolved on
16 Apr to extend the mandate of the Special Rapporteur for Human Rights in
Burma for another year. The UNCHR asked the Special Rapporteur to submit an
interim report to the UN General Assembly in New York in Oct'97 and to report
back to the Commission in Geneva in Apr'98. The UNCHR also expressed concern
at SLORC's continuing human rights abuses that include torture, arbitrary
executions, forced labour of children and adults, arbitrary detentions, forced
relocations, the oppression of ethnic minorities, and restrictions placed on
the National League for Democracy and its leader, Daw Aung San Suu Kyi
[UN9704].
UNOCAL LIABLE FOR ABUSES
US District Judge Richard Paez of Los Angeles, ruled on 18 Apr that UNOCAL
can be held liable for human rights abuses committed by SLORC.
UNOCAL will appeal the decision. The National Coalition Government of the
Union of Burma (NCGUB) and the Federation of Trade Unions of Burma (FTUB) filed
a lawsuit against UNOCAL on 3 Sept 1996, accusing UNOCAL of relying on SLORC
for the security of its gas pipeline in the Tenasserim division. Human rights
abuses, particularly involuntary labour and forced relocation, have been
documented in the area of the proposed pipeline [LAT970418, BA9609].
A.S.E.A.N. MISSION TO BURMA
On 21 Apr, a delegation from ASEAN visited Burma to assess its readiness for
joining the organization [F970508, B970421, NLM970422].
BANGLADESH REPATRIATION
On 21 Apr the United Nations High Commissioner for Refugees resumed the
repatriation of 250,000 Rohingya refugees to Burma. The repatriation had been
suspended on 1 Apr. SLORC and Bangladesh had agreed that all
refugees would be repatriated by 31 Mar, and as of 1 Apr, only 229,000
refugees living in Cox's Bazaar had been sent back [Reu970421].
A.B.S.D.F. CAMP CAPTURED
On 22 Apr, the All Burma Students' Democratic Front's 8888 base was taken
by SLORC troops commanded by Strategic Commander Colonel Zaw Tun. SLORC troops
from Light Infantry Battalions No.358, 224, 262 and 432 attacked the base on
11 Apr. The 8888 camp is located opposite Thap Sakae in Thailand's Prachuab
Kiri Khan Province, in the area of the planned land bridge between Burma's
Bote Pyin Industrial Estate and Bang Saphan in Thailand [ABSDF970418,
AFP970419, BR970429]
AUSTRALIA FUNDS REFUGEES
Australia's Foreign Minister Alexander Downer said 22 Apr that Australia will
give A\$1.8 million to help Burmese refugees. A\$1 million will go to the
World Food Program, another A\$300,000 will go to the United Nations High
Commission for Refugees for resettlement issues, and A\$500,000 will go to the
Australian branch of Medecins Sans Frontieres [AAP970422].
SOUTH AFRICAN HONOUR
The University of Natal on 23 Apr, awarded Daw Aung San Suu Kyi
an honorary Doctorate of Law in recognition of her work to promote
democracy and freedom in Burma. Daw Suu's husband, Dr Michael Aris received
the award on her behalf at the University of Natal, Durban, and delivered
her address. Daw Suu said that the same issues surrounding the efficacy
of sanctions against Burma exists now as they did in South Africa ten years
ago [SK970423, FBS970418, ST970420].
INDIA-BURMA TRADE HALTED
Indian traders decided to halt the flow of Indian goods to Burma in April
to protest the closure of a trade route from Prem Nagar in India, to Tamu in
Burma. The route was closed when cross-border trade between Burma and India
was legalised [TH970423].
News Chronology:
SLORC-WA TALKS FAIL
Talks between SLORC and the United Wa State Army failed when the UWSA refused
to accept SLORC's demand that they put down their arms by 1999. SLORC also
wanted to construct a dam on the Mae Kon River south of Ban Peng Kam, 15
km from the Thai border. UWSA and SLORC officials met at Ban Pengkam opposite
Thailand's Mae Ai in Chiang Mai province. Over 100 Wa and SLORC troops have
died in recent months in clashes around the area of the planned dam
[TT970421, N970425].
K.N.U. ATTACKS SLORC BASE
In retaliation for the torture of a Karen boy by SLORC soldiers, a combined
force of ABSDF and KNU troops attacked a SLORC camp (Mor Ta) opposite Umphang
in Thailand's Tak province [TT970424].
KAREN CAMP ATTACKED BY SLORC
At midnight on 26 Apr, SLORC and Democratic Karen Buddhist Army (DKBA) troops
attacked Ta Per Poo camp in Umphang, Thailand. The intruders looted goods and
cash worth Baht 150,000 (US\$6,000) and set fire to 19 houses and shop stalls.
Colonel Suwit Maenmuen, commander of the 4th Army Regiment Task Force, said
the Thai-Burmese Border Committee had sent a letter to the Burmese military on
5 May in protest of the attack on Ta Per Poo. The Thai-Burmese Border Committee
consists of Thai and Burmese government and army officials. About 2,200
refugees from Burma live in Ta Per Poo [TT970505, KNU970427, N970428],
CAMPS TO AMALGAMATE
The Thai Army's 9th Division is planning to combine refugee camps in
Kanchanaburi and Ratchburi provinces. Huay Sut and Bo Wi in Ratchburi will
become one camp called Tham Hin, with a population of 7,200. Htee Lai Pah and
Thu Kah in Kanchanaburi will be amalgamated at a place named Maw Raka, near
Sankhlaburi province, with a population of 4,000. Refugees at Thu Kah were
told on 16 Apr to leave within one week and either go to Phu Muang or
Halockani refugee camps, or return to Burma. Major-Gen eral Thaweep Suwan
Nasingh of the Thai 9th Div made the announcement shortly after Thu Kah
received heavy shelling from SLORC troops on 12-13 Apr. Phu Muang camp was
reported on 29 Apr as having 2,700 people, who are sheltering under plastic
sheets as the wet season begins [BR0429, N970418].
E.U. ARMS SANCTIONS
On 29 Apr, the European Union has agreed to extend sanctions against Burma
for another 6 months. This embargo prevents EU nations or companies from
providing military assistance or aid to Burma [AFP970429].
DRUG FACTORIES MOVED
On 2 May, Veerakorn Kamprakob of Thailand's Office of the Narcotics Control
Board said seven or eight factories producing amphetamines, run by the UWSA,
had been relocated from Shan State to Karen State, opposite Tak province in
Thailand. It was reported that Pao Yochang, leader of the UWSA, had met with
Chinese officials in February and was told to stop the flow of drugs, including
amphetamines, into Yunnan province [B970502, F970508].
U.S.D.A. BLAMES DAW SUU
At a mass rally of 30,000 people on 4 May in Rangoon, Union for Solidarity
and Development Association spokesman Kyi Kyi Htway accused Daw Aung San Suu
Kyi of `falsehoods' which had influenced the USA to invoke sanctions against
SLORC. Kyi Kyi Htway said Daw Suu and others `bent on subverting the economy'
should be driven out of the country. Meanwhile, sources predicted mass
rallies would be held throughout Burma by USDA to condemn US sanctions. An
unconfirmed report on 8 May said the USDA group that attacked Daw Suu's
motorcade in 1996 is now undergoing further training and may be planning
another attack [AP970505, N970508].
PRISONERS TRANSFERRED
The Southeast Asian Information Network reported on 6 May that since April,
SLORC has transferred 46 prisoners from Rangoon jail to other prisons
upcountry where they cannot receive food and material support from family
members. The transferral, named `Operation Crow,' apparently affects doctors
active in the NLD who were arrested during the SLORC's `Operation Ngwe Byaing
Phyu'. SAIN gave the names and whereabouts of 46 political prisoners [SAIN
970506].
News Chronology:
U.N. OFFICIAL MEETS DAW SUU
From 6 to 10 May, United Nations Assistant Secretary-General for Political
Affairs Alavaro de Soto visited Burma and met with political leaders including
Daw Aung San Suu Kyi and Lieut-Gen Khin Nyunt, Secretary-1 of SLORC. De Soto
also met with Khun Htun Oo, chairman of the Shan Nationalities League for
Democracy, as well as SLORC Foreign Minister Ohn Gyaw, Chief Justice Aung Toe,
and others [AFP970410].
THAI TRANSPORT LINKS
Thailand's Transport and Communication Minister Suwat Liptapanlop visited
Rangoon 8-9 May to discuss improvement of air, rail and road links between
Burma and Thailand. On the agenda was the extension of the Saiyoke rail link
to Burma through the Three Pagodas Pass, more flights between Bangkok and
Rangoon, and the management of the Thai-Burma friendship bridge in Mae Sot
/Myawaddy. The bridge was completed on 6 May [N970508, B970507].
SLORC TROOPS ATTACK MON BASE
On 10 May, SLORC Infantry Battalion No.106 entered Halockanee, a Mon refugee
camp located about 60 km southwest of Thailand's Sankhlaburi district, and
occupied the camp rice store. A ceasefire agreement signed by SLORC and the
New Mon State Party in June 1995 stipulated that SLORC troops cannot enter
Mon refugee camps. On 28 Apr, SLORC troops also overran a Mon base at Tab
Guncha and burned it down, causing 1,000 Mons to flee to Bang Saphan's Tambon
Chaikasem in Thailand [B970430, MUL970512].
PAKISTAN ATTACHE VISITS BURMA
Lieut-Col Zahid Hussaid Khan, military attache of Pakistan, resident in Dhaka,
Bangladesh, met with Lieut-Gen Tin Ngwe, Commander-in-chief of SLORC's Air
Force on 13 May [NLM970514].
UNOCAL'S IMLE MEETS DAW SUU
On 16 May, John Imle, president of UNOCAL, met with National League for
Democracy (NLD) leader Daw Aung San Suu Kyi at her home. Imle gave
no details saying only that, ``They were useful discussions'' [LAT970515].
CHAVALIT VISITS RANGOON
Thai Prime Minister Chavalit Yongchaiyudh visited Burma 16-17 May. SLORC
Chairman Senior General Than Shwe and Chavalit discussed port construction,
industrial projects, foreign investment in Burma, and Burmese migrant
workers in Thailand. Gen Chettha, Thai Army Commander, accompanied him
[Reu970421, TT970419, B970515].
THAI PRESS CAN'T MEET DAW SUU
Thai press covering Prime Minister Chavalit's visit to Burma, 16-17 May, were
prevented from meeting with NLD members when they were issued two-day visas
instead of the usual 14-day visas. Journalists were told by SLORC to stay away
from the house of Daw Suu and that their movements would be monitored
[B970516].
NEWS SOURCES THIS ISSUE:
The ``Burma Alert'' is published monthly by the Associates to Develop
Democratic Burma Inc to provide data for the Burmese democracy movement.
In 1996, grants were received from the International Centre for Human Rights
and Democratic Development, Montreal, Canada; the Evangelisches Missionswerk,
Germany; the Friedrich Ebert Stiftung, Germany; and the National Endowment for
Democracy, USA. SUBSCRIPTIONS: Institutions - US\$100 (or C$100), Individuals
- US\$25 (or C\$25) per annum. Readers are also invited to become `Associates'
and participate in promoting democracy in Burma by contributing US\$100.00
(or C$100) per annum. All Cheques and money orders are payable to ADDB Inc,
P.O.Box 659, Shawville, Quebec J0X 2Y0, Canada. Fax: 1 (819) 647-5403.
E-mail: yawnghwe@hookup.net
End