**************************BurmaNet*************************** "Appropriate Information Technologies, Practical Strategies" ************************************************************* The BurmaNet News: 16 APRIL 1995 Issue #148 NOTED IN PASSING: "I want you to know the real situation in Burma...There have been no killings of monks, students and innocent civilians by the military regime... and we protect human rights and have democracy." Lt. Gen Tun Kyi, the unelected Minister for Trade in Burma's unelected regime responding to claims that doing business in Burma is unethical. ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Contents: THE NATION: 'UNRULY' BURMESE WARNED' THE NATION: INFLATED KYAT CASTS SHADOW OVER 'BOOM' THE NATION: LETTER--APRIL FOOL THE NATION: BURMESE ECOMONY STILL STRUGGLING TO REVIVE THE NATION: NEW APPEAL TO FREE SUU KYI THE NATION: 400 DRUG ARRESTS IN BURMA THE NATION: RUNNING A TOUR FIRM IN BURMA IS EASIER SAID THAN DONE BKK POST: BURMA AND INDIA TRADE POST AT BORDER THE NATION: MACY'S TO PULL OUT OF BURMA DUE TO GRAFT BKK POST: QUESTIONABLE MOTIVES OF LATEST SLORC OFFENSIVE BKK POST: TRADE CONTINUES ACROSS BORDER DESPITE CLOSURE THE NATION: FORCED LABOUR ON RAILWAY THE NATION: BURMESE WERE KILLED PEOPLE BKK POST: NIBHON: NO BURMA TRIP UNTIL THE NATION: BURMA SEEKS INDIAN CAPITAL BKK POST: MANDARIN LOOKS TO BURMA HOTEL THE NATION: RANGOON JUNTA-KAREN REBEL PEACE DIALOGUE IS A NON-STARTER THE NATION:BURMESE REBELS CLAIM RELOCATION FORCED ON POOR BKK POST: US DEPARTMENT STORE CUTS TIES WITH BURMA THE NATION: KNU READY FOR TRUCE TALKS WITH SLORC NATION: ANDAMAN CLUB 'NOT A CASINO' ************************************************************** The BurmaNet News is an ********************************* electronic newspaper * Iti * covering Burma. 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Burma Issues is a Bangkok-based non-governmental organization that documents human rights conditions in Burma and maintains an archive of Burma-related documents. Views expressed in The BurmaNet News do not necessarily reflect those of either NCGUB or Burma Issues] ************************************************************** 'UNRULY' BURMESE WARNED' 15 April 1995 Thousands of people took to the streets of Rangoon yesterday to celebrate the traditional water festival ushering in the burmese year of 1357, despite official warnings that "unruly behaviour" would be dealt with effectively. Military auhorities appeared to have gone out of their way to see that "decadent" dress and what they consider "untoward behaviour" do not mar the celebrations, as has happened in previous years. A series of regulations prohibiting drunkenness, unruly behav- iour and unseemly dress were issued before the festival, along with threats of instant punishment for breaches of the rules. (TN) BURMESE ECOMONY STILL STRUGGLING TO REVIVE 15 April 1995 Seven years after emerging from a disastrous experiment with socialism, Burma's military government is still struggling to embrace an open-market system and lift its country out of the least developed nation status. Once seen as one of the region's most promising countries be- cause of its wealth of natural resources and educated workfor ce, Burma's economy has been battered by military-led misman- agement that helped bring the country down to the uneviable status of one of the world's poorest. Diplomats and businessmen say that although the military-led State Law and Order Restoration Council (Slorc) has made im- portant strides to implement economic reforms and allow pri- vate investment since it assumed power in 1988, there is still a good deal to be done. "There is no doubt about it, the economy has opened up," one deplomat said. "There are more goods available, more cars seen in the roads than a decade ago." Burma's economy has grown steadily over the past few years. In terms of gross domestic product the economy grew by 6.4 per cent in the 1994/95 fiscal year to March 31, after a six per cent growth rate the previous year. The Asian Development Bank (ADB) said in its annual survey released recently it expects Burma's economy to grow another six per cent this year. But Burma also has spiralling inflation, which at 35 per cent is the highest in south and southeast Asia, the ADB said. Because of the inflation and an official kyat exchange rate about 20 times the black market rate, many of the newly avail- able international brand-name products just sit on shop shelves gathering dust. Many ordinary Burmese citizens say that despite the economic changes, they still cannot afford to buy much more than they did a decade ago. "It's the military that is getting all the money," said one Rangoon worker. "We are still poor." Despite the relatively poor economic picture, more than one- third of the country's annual budget still goes to defence spending, diplomats said. They one of the Slorc's biggest hurdles is to overcome the legacy of more than a quarter century under the ill-fated "Burmese Way to Socialism" doctrine that many see as the reason for the economy's decline. "They have opened up... there is no likelihood that we are going back to socialism," said one local businessman. "But the people who opened up the economy are not businessmen. They may have a genuine intention... but they don't know how to do it." Many diplomats agreed, nothing the Slorc appeared to have no specific plan in mind but rather just started initiating changes on an ad hoc basis. "The top level generals are ignorant of what the economy needs," one deplomat said. "There are bright civil servants but they haven't been able to get their thoughts heard in the top echelons where they are ignorant of how a free market economyshould work." For example, state--owned enterprises, which account for about one third of public investment, operate way below capacity and contribute only one fifth of government receipts, ADB said. Another hangover of the socialist experiment is the lack of a middle class, or a strong entrepeneurial spirit. "After nearly 30 years of socialism, people don't know how to go about getting loans, or make investments," the businessman said. "And Anyway, banks aren't lending, there is little chance for an entrepeneur." As a result, a good deal of the country's new wealth is int the hands of a few top military officers or business families. "Some people have gotten poorer, but none have gotten more free," a diplomat said. Another factor behind Burma's economic problems is its human rights record, which has led to a drop in aid and loan flows. Many western governments stopped providing economic aid to Burma in protest against the government's dismal human rights record since the Slorc took power. And, despite the Slorc's easing of foreign investment regulations, many international investors are wary of taking any majorstakes in the country because of the human rights problems and political uncertainty, diplomats say. (TN) NEW APPEAL TO FREE SUU KYI 15 April 1995 Retired South Korean dissident leader Kim Dae Jung yesterday renewed his call for the release of Burmese opposition leader Aung San Suu Kyi, saying it is a "test case" for Asian democ- racy. Last December, the inaugural Forum for Democratic Leaders spo- nsored by the Kim Dae jung Peace Foundation called for the unconditional release from house arrest of the 1991 Nobel Peace Prize winner. On Friday, Kim broke away from the prepared text of his speech to the Foreign Correspondents Club of Japan to charge that it is "intolerable" that the State Law and Order Restoration Council has refused to relinquish power to the election win- ners. (TN) The Nation APRIL FOOL 14 April 1995 The Singapore media, both printed and electronic, have high- lighted the news of the impending release of Daw Aung San Suu Kyi, which seems to be just an April Fools joke for those who know the situation intimately. Singapore, being one of the leading countries that have invested in Burma, has shored up its economy and this is tantamount to siding with the Burmese junta in its fight against the pro-democracy movement. The Burmese in diaspora knew that such kind of hopeful news were being spotlighted to encourage more investment in Burma. Now the Singapore maid agencies have switched to recruiting Bur- mese rather than Filipinos, especially Karen now that Manerplaw has fallen. Such trafficking of Burmese women will go on as long as the constructive engagement policy is adopted by Asean. Kanbawza Win INFLATED KYAT CASTS SHADOW OVER 'BOOM' 14 April 1995 Aung Zaw on the woes of doing business in Burma Their major concern is neither the country's poor human rights records nor its democratication but the exchange rate. Almost all businessmen who invest in Burma complain about this. Whatever the case, since Burma's military leaders decided to open its ramshackle economy to the outside world, trade is flourishing and foreign businessmen and tourists flocking there. Some observers have argued Burma can be Asia's next tiger and can develop much faster than Vietnam if foreign exchange problems and political uncertainties are resolved. The largest Thai mission organized by the Board of Trade (BoT) went to Rangoon in February. The 85-member delegation signed a memorandum to increase trade cooperation opportunities in wood-related industries. "Human rights and other political issues are not related to trade and investment. We should take advantage of these opportunities," said Prayoon Talerngsri, executive director of the BoT. "Previously, our businessmen were worried about the political instability. But they seem to be ready to invest now," he added. Burma's ambassador to Thailand, U Tin Win, said total foreign investment in his country as of January was about $2.377 billion and that there are at least 119 projects on the drawing board. At the recent Board of Investment (BoI) fair in Thailand, U Tin Win revealed that a new organization has been formed to handle both domestic and foreign investment in Burma. The Myanmar Investment Commission (MIC) was set up to give initial approval to investment proposals. However, many Burmese complined that the military has been the beggest beneficiary from the present open market policies. "Only a hadful are getting richer, while most people are getting poorer. Relatives, families and friends of government officials are the only ones making money and they control everything," said one. Analysts say the situation in Burma is not quite similar to Indonesia or Vietnam. "Before Indonesia took off, it had in place two pre-conditions for sustained economic growth: low inflation and a convertible currency. Burma has neither," said the Asian Wall Street Journal in a recent editorial. It emphasized that unlike Indonesia, the economy of Burma is still in the hands of the military. Aside from this, Slorc has no mandate to govern the country since it ignored the election results in 1990. Chatri Sophonpanich, chairman of the board at Bangkok Bank, praised Burma as the gateway between Asean and North Asia, but said a problem lies in the foreign exchange conversion of the kyat, Burma's currency. Ambassador U Tin Win said there was no policy to bring the official rate in line with the black market rate of 100-120 kyats to the dollar. The official rate is six kyat to the dollar. Slorc financial adviser Set Maung was quoted as saying, "Tremendous changes are taking place." But he also ackonowledged later that the military government is reluctant to devalue the kyat. Observers and economists believe devaluation or currency reform is unlikely in the near future. U Thaung, founder of the Mirror newspaper in Burma, expained in a recent article why Burma's present military leaders are reluctant to reform the Burmese currency. In January 1975, he was summoned by the Minister of Finance, who handed him a statement to be released as a communique. At that time, he was the deputy director at the Information Ministry as well as the press liaison officer. The communique indicated that the exchange rate of the kyat would now be K5.35 to the dollar from the previous rate of K4.81. Without hesitation." "No! you must not use that word. Use the word revalued," the minister told U Thaung in all seriousness. The newspapers printed as instructed. The reason, as U Thaung found out later, was that Burmese strongman Gen Ne Win had an inferiority complex about the value of the kyat during his rule. Continued U Thaung: "In the same month, the IMF pressured Ne Win in accordance with the 'Special Drawing Right' and the government had to devalue the kyat as suggested by the IMF." Ne Win, according to U Thaung, was furious about this and summoned all the cabinet ministers. He ordered them not to devalue the kyat. "Over my dead body," Ne Win reportedly shouted. U Thaung said, "The current rate will stay until the death of the great king." If it is true, perhaps the news about the death od Ne Win will not only make Burmese happy but the foreign businessmen as well. (TN) 400 DRUG ARRESTED IN BURMA 13 April 1995 More than 400 people involved in over 200 drug-related cases were arrested in March and are scheduled to go on trial, Burma's officials press reported yesterday. The state-owned Mirror-Daily said that 110 cases involved possession of heroin and a total of 42 kilos of the drug were seized. 31 cases involved opium totalling 18.31 kilos. Of the more than 400 people arrested, 106 ware women, the paper said. During the same period, units of the military also seized over nine kilos of heroin, 22 kilos of opium and more than 11 kilos of marijuana, the Mirror Daily said. (TN) RUNNING A TOUR FIRM IN BURMA IS EASIER SAID THAN DONE 13 APRIL DIETHELM Travels expansion into Burma has changed direction from an earlier wish-list that would have given it 100% ownership of a new agency, to the reality that it needs a local partner to the tune of at least 15%. A tie-up with Myanmar Express, which handles all of American Express's business in the country, should be signed later this month, paving the way for Diethelm to open an office in Rangoon in May. Initially Diethelm was counting on the country's new regulations on investment and tax breaks would have came in handy to buy a fleet of limousines and fourwheel-drive vehicles to transfer tourists to major destinations. Travel companies face taxes as high as 300% on the import of luxury cars, although insiders say there are alternatives such as buying imported four-wheel-drive vehicles from China that cost much less. (TN) BURMA AND INDIA TRADE POST AT BORDER 13 APRIL 1995 INDIA and Burma were to formally open a border trade, ending more than three decades of isolation, officials here said. Burmese Trade Minister Tun Kyi and Indian Minister of State for Commerce Palaniappan Chadambaram were to declare the border open at a ceremony in the Indian town of Moreh, on the eastern fringe of Manipur state, they said. The opening of the border between Moreh and the Burmese border town of Tamu fellows a ground-breaking pact signed in January 1994 between Rangoon and New Delhi. Indian Officials said they hoped the formal opening of the frontier would end a lucrative cross-border smuggling racket. "Trade will be conducted in freely-convertible currencies or in currencies mutually agreed by the two countries including the Burmese Kyat and the Indian rupee," they said. The opening of the Indo-Burmese border should "earn considerable amounts for the governments, provide employment and improve the conditions of hundreds of people," an official said. Indo-Burmese trade grew to $138 million in fiscal 1993-94 from a paltry $27 million in 1989-90 and is basically confined to agricultural products. Paper, breweries, food processing mining energy and tourism have been identified as area of joint cooperation by Lt Gen Kyi and senior Indian officials.(BP) QUESTIONABLE MOTIVES OF LATEST SLORC OFFENSIVE 13 April 1995 The latest attempt by the Burmese army to gain control of northeastern Burma is going slowly. The recent heavy fighting in and around the Thai border town of Tachilek has subsided, but Rangoon forces continue to press on the other defences of Khun Sa's Mong Tai army. It is the second time in a year Slorc forces have tried to subdue the jungle-based Shan movement. The area is the last major part of Burma which Rangoon seeks to control. The army defeated the Karen National Union in eastern Burma earlier this year. It caused a refugee exodus and other serious problems for Thailand. Slorc's offensive against the private army of Khun Sa has won mild support in many quarters. Even the US State Department has issued a cautious welcome for the Rangoon move. The reason lies in the stated motives for the Burmese attacks. The regime has won support because it seeks to destory the base of the world's largest heroin dealer. Khun Sa claims the title od Shan independence leader. Despite this, there is no credible evidence he is the area has been directly purchased with the proceeds of drug sales. Just this week, Chinese officials announced the largest single narcotics seizure since the communists began ruling the country. Yunnan police discovered 128.8 kg of heroin smuggled into China from Khun Sa's territory in the so-called Golden Triangle. Beijing has grown increasingly concerned about its drugs problem in recent years, as has Thailand. In Yunnan alone, there now are 30,000 registered heroin addicts. Officials believe the total is more than three times that number. Cases of AIDS spread by use of intravenous drug kits are reported almost daily in Yunan. In Thailand, which is both a market and smuggling route for Khun Sa, the problem is even worse. In the North, close to the drug warlord's border area, heroin addiction has risen to epidemic proportions. Some village officials in northern Thailand have reported that 100 per cent of their adult populations are addicts. Bangkok Post reporters have turned up many cases od children who are addicts. Many experts link the addiction to the high rates of HIV infections in that part of our country. Thailand has come a long way in the past generation. From a producer and exporter of opium and heroin, our nation has turned into one of honest, if not entirely prosperous, farmers. There is a twin purpose to Slorc's military offensive against Khun Sa's army. The first is to disrupt the warlord's narcotics manufacturing and trading, and to move in short order towards wiping it out. This is a laudable goal. There is no defence for Khun Sa's heroin trade. The nercotics cartel he has forged over the past 20 years is a massive organisation aiming to flood the world with heroin and create new addicts. The harm he has done is immeasurable. In addition to leading countless Thais to heroin addiction, he has done our country a further disservice by giving it a reputation as a smuggling conduit to the rest of the world. Slorc has another main motive. This is to subdue yet another minority in Burma. It must be noted that if these two goals interlock and they do it is largely Khun Sa's fault. By making international narcotics trafficking the sole industry in his area, Khun Sa has invited retribution. And this is exactly why there is support for the Rangoon offensive, as well as horror. The leaders of the Burmese junta have openly stated they will not negotiate with Shan independence officials. The hard line on drugs is welcome. The hard line on the political front, from a group such as Slorc, is a serious matter. In short, Rangoon would be unwise to view support for its crackdown against Khun Sa's narcotics activities as enthusiasm for Slorc politics. We can only hope that if the Burmese offensive against the Mong Tai army is successful, the junta will show sympathy for the people in northeastern Burma. The lukewarm understanding for the attacks against Khun Sa will quickly fade to renewed opposition if the Slorc misuses its power in Shan areas as it has in the rest of Burma in recent years. (BP) TRADE CONTINUES ACROSS BORDER DESPITE CLOSURE 13 April 1995 Cross-Border trade between Burma and Thailand in Mae Sai District of Chiang Rai has been slightly affected by the Burmese Government's battle with Khun Sa's Mong Tai Army, according to a provincial commerce official. Although the battle prompted the Burmese Government to close its Tachilek pass opposite the Mae Sai checkpoint since March 26, the volume of trade last month was still much higher than that of March last year, said Wairak Walairat, Chiang Rai provincial commerce official. Thai exports to Burma through the district last month was estimated at 320 million baht, compared with that of March 1994, which was only 171 million baht, he said. The closure of Tachilek did not hinder cross-border trade too much because there were two other temporary border passes in Ban Muang Daeng and Ban Parng Ha villages of Mae Sai District, Mr Wairak said. It was necessary for Thailand to open such temporary border passes as almost all consumer products of Burmese people opposite Chiang Rai were imports from Thailand, he said. Otherwise, Thailand would have to face influexs of starving Burmese people, Mr Wairak said, adding that the Burmese border closure in Tachilek did not stop exports through Mae Sai. Thai exports to the neighbouring country centred around garments, medicines, refreshing beverages and cement while imports from Burma focused on precious stones, he said. Imports from Burma through Mae Sai amounted to only slightly more than one million baht last month. The mentioned trade volumes were only those sold through customs services and smuggled goods were actually about 200-300 per cent higher, he said. Demands on the Burmese side also prompted the Chiang Rai Chamber of Commerce to seek permission to export construction materials through the temporary border passes at Ban Muang Daeng and Ban Parng Ha, he said. He said Thai traders had not received any payment for their exports to the Tachilek side since the battle between the Burmese Government and Khun Sa's armed forces, adding that the unpaid amount was expected to total several million baht. (BP) FORCED LABOUR ON RAILWAY 13 April 1995 The military government in Rangoon is using forced labour to build a railway line in southern Burma, student dissidents said in a statement seen in Bangkok yesterday. Men, women and children have been forced to work as porters on the Tavoy to Yebyu link of the railroad in a bid to finish it in time for "Visit Burma Year" in 1996, the All Burma Students Democratic Front (ABSDF) said. Residents of Tavoy, Yebyu, longlon and Thayetchaung townships were being pressed into working for one in every 15 days, the ABSDF Central Committee said. The workers are not paid and must meet their own expenses, it charged. (TN) MACY'S TO PULL OUT OF BURMA DUE TO GRAFT 13 April 1995 Macy's, a leading US department store chain, has decided to pull out of Burma within 90 days due to "corruption that makes normal operations impossible". While the clothing store has declined to make an official announcement of the decision, the New York-based human rights group Coalition for Corporate Withdrawal from Burma issued a statement on Monday quoting company officials as disclosing the information on April 6. Macy's is the latest US firm to end its economic activities in Burma. It joins a growing list of American companies which have pulled out of Burma or refused to do business there, including Levi Strauss, Reebok, Liz Claiborne and Eddie Bauer. According to the statement seen here yesterday, a Macy's executive told members of the coalition at Macy's offices in New York that the company's decision was "based purely on economic grounds". Business in Burma, the executive explained, "Is hampered by corruption that makes normal operations impossible". The executive was quoted as saying that "widespread official bribery is routine in Burma", and Macy's "was unwilling to make payments that could violate the US Foreign Corrupt Practices Act, which bars US companies from making unofficial payments to foreign officials". Without such payments, the executive added, foreign companies would have great difficulty operating efficiently and profitably. The company said it was also misled regarding ownership of the factories producing clothing for Macy's private "Club Room" and "INC" labels. Macy's was told that the factories were joint ventures between investors from Asian countries outside Burma and private Burmese citizens. "The real Burmese partner, it was later discovered, is the military-controlled Burmese government," said the Coalition.(TN) BURMESE WERE KILLED PEOPLE 13 APRIL 1995 Three Burmese soldiers were killed and three other people, including one thought to be Thai, were wounded when five bombs exploded at different times shorly after midnight yesterday at the highly-protected Burmese border town of Tachilek. The wounded were later sent across the border into Thailand's Mae Sai district for medical treatment at a local hospital. Mae Sai District Chief Pakdi Rattanaphol ordered an investigation to find out whether one of the wounded victims, whose first name is Yongyuth, is a Thai or a Burmese with a Thai name. Yongyuth, whose family name is not known, was said to be a resident of Mae Sai who crossed into Tachilek at predawn. He stepped on a mine, severely injuring his legs. The explosions took place amid widespread rumours and fear that opium warlord Khun Sa's Mong Tai Army (MTA), which launched a successful lightning raid into Tachilek on March 20, would attack the town again between April 10-16. Shortly after last month's MTA assault, in which three Burmese troops were killed, Burmese authorities abruptly closed the town off to crossborder communications and economic activities and began searches for MTA suspects. Heavy artillery and thousands more Burmese troops were sent in to strengthen the town, which has not been re-opened since. According to eyewithnesses, the first explosion went off at 1.20 am yesterday at an unidenttified location. Five minutes later a second bomb exploded, accompanied by several gunshots. At 5.30 am the third bomb exploded, creating chaos in the town. People on both sides of the border were in fear as they did not known if the explosions were part of a renewed MTA attack. Ten minutes later another bomb exploded, and at 6.35 am the fifth bomb went off. Witnesses said the Burmese troops in Tachilek were thrown into disarray by the explosions, but at 8.30 am began to search for and de-activate more bombs and landmines. (TN) NIBHON: NO BURMA TRIP UNTIL 13 April 1995 The Burmese government has been trying unsucessfully during the past years to get members of the Thai Justice and Human Rights House Committee to pay an official visit to the country known for its human rights abuse. "We will certaingly go there if they agreed to accept our condition. We are ready to hold talks with senior members in the State Law and Order Restoration Council (Slorc) but we should be given a chance to meet Aung San Suu Kyi, or else we would not go there at all," said committee chairman Nibhon Visityuthasart, a Chart Thai MP for Ang Thong. When Tibetan spiritual leader the Dalai Lama visited Thailand in early 1993 in the company of a group of Nobel Prize laureates of Aung San Suu Kyi, it was Mr Nibhon's Justice and Human Rights Committee which voiced strong support for the Government's decision to allow the spiritual leader to visit Thailand. At the time several senior government officials including Army Commander Gen Wimol Wongwanich voiced his disagreement with the decision on the Dalai Lama's visit. The visit drew strong protest from the Chinese government which considered the trip as an interference in China's internal affairs. "The committee was in an awkward political sttuation at the time. You can see that even my Chart Thai Party opposed the Dalai Lama's visit but the Human Rights committee voiced its support. "I made the issue clear to my party that was not a party matter and I could not follow the party's line as it would not doubt gravely affect the committee's image," recalled Mr Nibhon. Mr Nibhon said unless the Burmese government changed its mind over Aung San Suu Kyi it was unlikely that the his committee would go to Burma. "It would be useless trip. There is no reason to go there if we were not given a chance to talk to her. She was overwhelmingly elected by the Burmese people but was detained by the military junta. Don't you think it's strange?" asked Mr Nibhon. (BP) RANGOON JUNTA-KAREN REBEL PEACE DIALOGUE IS A NON-STARTER 12 April 1995 Peace talks between Burma's ethnic Karen rebels and the Ran- goon junta have have stalled before starting, with both sides setting conditions as to who may negotiate a treaty, rebel sources said on Monday. Junta representatives have demanded to talk with the command- ers of two military brigates in the Karen National Union (KNU), a senior KNU official said. "They have already approached the Fourth and Sixth Brigades," he said, to the ethnic Liberation Army (KNLA) units, which control substantial territory in Burma, including a stretch of land over which the junta plans to construct a multi-million- dollar natural gas pipeline. "But from the KNU side, there cannot be anyone to reach an agreement at that level," he said. Representatives of KNU have expected meetings to include their political leader, President Bo Mya. But the junta representatives have made talks conditional on the participation only of the brigade commanders. (TN) US DEPARTMENT STORE CUTS TIES WITH BURMA 12 April 1995 Business 'hurt by corruption' MAcy's Department Store chain is ending its clothing manufacturing operations in Burma after discovering that doing business in that country is hampered by corruption that makes normal operations impossible. The announcement was made at Macy's offices in New York on December 6 during a meeting with members of the Coalition for Corporate Withdrawal from Burma. The press release was received by the Bangkok Post yesterday. In doing so, Macy's joins a growing list of American companies which have pulled out of Burma or refused to do business there. The list includes Levi Strauss, Reebok, Liz Clairborne and Eddie Bauer. While expressing awareness of continuing grave human rights violations in Burma, a senior Macy's executive said the firms's decision was based purely on economic grounds. "Business in Burma," the executive explained, "is hampared by corruption that makes normal operations impossible." Widespread official bribery is routine in Burma, the executive said. Macy's however was unwilling to make payments that could violate the US Foreign Corrupt Practices Act, which bars US companies from making unofficial payments to foreign officials. "Without such payments," the executive said Macy's was also misled regarding ownership of the factories producing clothing for the firm's private "Club Room" and INC" labels. Macy's was told that the factories were joint ventures between investors from Asian countries outside Burma and private Burmese citizens. The real Burmese partner, it was later dis- covered, is the militaty-controlled Burmese Government. Meanwhile, New York City based supporters of democracy and human rights in Burma say they are dropping plans for a mid- April demonstration in front of Macy's flagship store in mid- town Manhattan. But they have renewed calls for consumers not to buy any goods labeled "Made in Myanmar" at Macy's or elsewhere. Myanmar is the name for Burma now used by that nation's military dicta- tors but rejected by Burmese democratic forces. Consumer boycotts of companies doing business in Burma are gaining momentum. Current targets include the Los Ageles-based oil giant Unocal and Pepsi-Cola. Unocal is building a half-billion dollar natural gas pipeline through rain forests which critics claim uses slave labour. Pepsi has opened a bottling plant in that cpuntry and is coop- erating with the illegitimate military government to promote Burmese exports. (BP) BURMESE REBELS CLAIM RELOCATION FORCED ON POOR 14 April 1995 The Burmese government is ordering impoverished residents to rebuild homes on main streets and is moving out those who can- not afford the modernizations, rebels charged yesterday. The All Burma Student Democratic Front issued a statement from its sanctuary in Thailand, saying those along the main street in Loikaw city were forced on Feb 23 to sell their houses at extremely low prices and move out of the area because they could not afford tear down their. Loikaw is 365 kilometres northest of the Burmese capital of Rangoon, the control base of the ruling State Law and Order Restoration Council (Slorc). The rebels, who are fighting the central administration for greater freedoms, said the forced renovations are aimed at making the country look developed and peaceful to entice for- eign tourists. They also said that on Sept 22 the government ordered people from 37 other villages to quickly build 28 homes, with their own money, to house former rebels who had surrendered to the military junta. The houses had to be wooden, with concrete foundations and zinc roofs and cost 119,500 kyats (US$19,916 officially or US$995 unofficially) a piece to build. Burmese authorities do not respond to accusations from the rebels. (TN) BURMA SEEKS INDIAN CAPITAL 11 April 1995 Burmese Trade Minister Tun Kyi yesterday urged Indian indus- trialists to invest in his country, saying their countries' first agreement to govern border trade would help to boost business ties. "India tops the list of countries in the developing world and we are keen to expand trade," Lieutenant General Kyi told a business chamber here. "The recent border agreement is a step in the right direction." New Delhi and Rangoon signed the treaty in January 1994 and a border trade post between the two neighbours, which had curso- ry diplomatic links for more than three decades, will reopen tomorrow at a ceremony attended by Kyi. The minister said Rangoon had launched irreversible market reforms in September 1998, ending decades of socialist insula- tion and attracting foreign investment worth $2.3 billion from 17 countries. "Britain and Thailand are the leading foreign investors in Burma," he said, adding that the economy had grown steadily since 1990, with the gross domestic product posting a six-per- cent rise in 1993-94. "There are 120 investment projects at the implementation stage," he said. "We have social and economic reform, we are lifting technical barriers to trade and are going towards privatisation. "we have to do it (liberalise) carefully," he added. Kyi accused the Western media of waging a "disinformation" campaign, saying it sought to dissuade overseas businessmen on moral and economic grounds. "I want you to know the real situation in Burma," he said. "There have been no killings of monks, students and innocent civilians by the military regime ... and we protect human rights and have democracy." "The concept of human rights differs in the East and the West," he said. Burma's military government has been frequently criticised by numerous countries and human rights organizations for cracking down on dissidents and the prolonged house detention of opposition leader Aung San Suu Kyi. Khin Maung Oo, a senior trade official accompanying Kyi, said Burma offered three-year renewable tax holidays for joint ventures in which the minimum foreign capital participation would be 35% of the equity. Indo-Burmese trade grew to $138 million in fiscal 1993-94 form a paltry $27 million in 1989-90, but is far below the potential. Meanwhile, the historic Burmese city of Bagan is set to have a $23 million luxury hotel following a memorandum of understanding with Mandarin Oriental Hotel Group Ltd, it was announced yesterday in Hong Kong. In a statement, Mandarin Oriental said the single-storey hotel, set amid landscaped gardens, would comprise 100 suites 'in full harmony with the cultural and environmental sensitivities of the region.' It is to open in mid-1997, added the group, which is controlled by Hong Kong-based Jardine Matheson ltd and is best known for The Oriental in Bangkok and the Mandarin Oriental in Hong Kong. (Bp) KNU READY FOR TRUCE TALKS WITH SLORC 11 April 1995 The Karen National Union is ready to negotiate a ceasefire with the State Law and Order Restoration Council as soon as the Burmese government wants, said a KNU source living near the Thai-Burmese border line in Tak Province. The stance was proposed by KNU president Gen Bo Mya in his letter sent on April 2, 1995, to a reconciliation committee set up by the Slorc, the source said yesterday. The committee consists of a legal expert, Tun Aung Chin, retired military officers, Aye Soe Myint and Saw Richard, a priest, Saw Mar Gay Gyi and a university lecturer, Saw Ka Daw, according to the source. The reconciliation committee responded in another letter dated April 3, 1995, that Gen Bo Mya's letter had already been sent to Let Gen Khin Nyunt, First General Secretary of Slorc, said the source, adding it was expected that Slorc's decision on the cease-fire proposal could be made known soon. The hand-written letter of Gen Bo Mya stated that the KNU wanted Burma to become peaceful and called for the Slorc to be sincere in peace negotiations as previous rounds of talks always failed to yield a positive result due to misunderstanding between both parties, the source said. In his letter, Gen Bo Mya also informed Slorc chairman Gen Than Shwe's recent speech urging all Burmese minorities to join peace talks for the sake of Burma, the source said. The speech was delivered on the occasion of the celebration of the 50th anniversary of the foundation of the Burmese armed forces on March 27, 1995. The request had caused about 40 minorities, including 13 powerful groups, to seal cease-fire agreement with Slorc, the source said. The KNU, which was founded to resist the Burmese Government more than 46 years ago, was supported by a meeting of Burmese minorities, held near the border line recently, to settle its conflict with the Burmese Government, the source said. The meeting was attended by members of the Democratic Alliance of Burma, including Pado Mahn Sha, a KNU representative, U Tin Ohn, vice chairman of the National League for Democracy (NLD), U Tin Saw, a political expert from the New Era newspaper, Moe Thee Zun, chairman of All Burma Students Democratic Front (ABSDF)in South Area, U Mya Saw, member of ABSDF's Central Committee, and U Aung Saw Oh, member of NLD's committee, the source said. (BP & TN) MANDARIN LOOKS TO BURMA HOTEL 11 April 1995 Mandarin Oriental Hotel Group, the parent firm of Oriental hotel Bangkok, has entered into a joint venture with Italian- Thai Development Plc to build a 100-room first class hotel in Burma. A memorandum of understanding (MoU) signed between both parties and the Burmese Ministry for Hotels and Tourism took place on April 7. The MoU calls for construction of a first calls hotel beside the Irrawaddy River, to the east of Pagan, a tourist destination of historical interist destination of historical interest. The project's shareholder structure is: 58% by the Oriental< Bangkok, 25% by Mandarin Oriental Hotel Group, and 25% by Italian-Thai. The project is expected to commence construction around the end of this year and is expected to be operational about mid- 1997. (BP) ANDAMAN CLUB 'NOT A CASINO' 11 April 1995 The Thai owner of 600-million-baht Andaman Club resort on Burma's son Island opposite Ranong province denies his establishment is a casino. But he said the resort, complete with a 210-room luxury hotel and a 18-hole golf course, was equipped with a "games room" where gambling is allowed to entertain tourists. The resort project, located only five kilometres from the Thai border, faced criticism from various sectors in Thailand who claimed it was gambling den, intended to attract Thai gamblers places in Macau and Malaysia. The resort is expected to be open soon. Mr Vikrom Ai-siri of Ves Group, which owns the resort project and a number of other business ventures in Burma, said the games room would not be open to the public, but restricted to "exclusive members." "We just have a 'games room' with various kinds of slot machines," said Mr Vikrom without elaborating. He said the project will boost Ranong's economy by offering a variety of tourist attractions - the Andaman sea, a golf course designed by Jack Nicklaus on the 7,000-rai island, and duty free shopping. "Not everyone likes gambling. There are other attractions in the resort," mr Vikrom, adding tourists can enjoy sightseeing in some beautiful Burmese islands, including parts of the strategic coral of St Mathew island. mr Vikrom said the project is 95 per cent completed, including a pair at Wat Khao Nanghong to transfer tourists to the island. The hotel is preparing to lay a pipeline from Ranong to supply fresh water to the island. The hotel's soft opening is expected at the end of May or beginning of June, while the grand opening is planned for October. The Ves Group is also building a four-star hotel in Ranong to a accommodate tourists prior to going to Son island, also known as the Pulo Ru island. It is scheduled to be completed next year. He said Thai tourists can go there with a border pass. Concerned authorities are working on the possibility of issuing visas to foreigners in Ranong when it becomes a permanent border checkpoint. The Andaman Club is 100 per cent foreign investment under the Build-Operate-Transfer (BOT) condition. Land is leased for 30 years with an annual rental of US$1.25 million. Mr Vikrom is known to be close to some high ranking officials in Burma. He is also involved inn logging business and a gems cutting and setting factory, jointly with the sate-owned Myanmar Gems Enterprise. (BP) ************************************************************** NEWS SOURCES REGULARLY COVERED/ABBREVIATIONS USED BY BURMANET: ABSDF: ALL BURMA STUDENT'S DEMOCRATIC FRONT AMNESTY: AMNESTY INTERNATIONAL AP: ASSOCIATED PRESS AFP: AGENCE FRANCE-PRESSE AW: ASIAWEEK Bt.: THAI BAHT; 25 Bt. EQUALS US$1 (APPROX), BBC: BRITISH BROADCASTING CORPORATION BF: BURMA FORUM BKK POST: BANGKOK POST (DAILY NEWSPAPER, BANGKOK) BRC-CM: BURMESE RELIEF CENTER-CHIANG MAI BRC-J: BURMESE RELIEF CENTER-JAPAN CPPSM:C'TEE FOR PUBLICITY OF THE PEOPLE'S STRUGGLE IN MONLAND FEER: FAR EAST ECONOMIC REVIEW GOA: GOVERNMENT OF AUSTRALIA IRRAWADDY: NEWSLETTER PUBLISHED BY BURMA INFORMATION GROUP KHRG: KAREN HUMAN RIGHTS GROUP KNU: KAREN NATIONAL UNION Kt. BURMESE KYAT; UP TO 150 KYAT-US$1 BLACK MARKET 106 KYAT US$1-SEMI-OFFICIAL 6 KYAT-US$1 OFFICIAL MOA: MIRROR OF ARAKAN MNA: MYANMAR NEWS AGENCY (SLORC) THE NATION: A DAILY NEWSPAPER IN BANGKOK NCGUB: NATIONAL COALITION GOVERNMENT OF THE UNION OF BURMA NLM: NEW LIGHT OF MYANMAR (DAILY STATE-RUN NEWSPAPER,RANGOON) NMSP: NEW MON STATE PARTY RTA:REC.TRAVEL.ASIA NEWSGROUP RTG: ROYAL THAI GOVERNMENT SCB:SOC.CULTURE.BURMA NEWSGROUP SCT:SOC.CULTURE.THAI NEWSGROUP SEASIA-L: S.E.ASIA BITNET MAILING LIST SLORC: STATE LAW AND ORDER RESTORATION COUNCIL TAWSJ: THE ASIAN WALL STREET JOURNAL UPI: UNITED PRESS INTERNATIONAL USG: UNITED STATES GOVERNMENT XNA: XINHUA NEWS AGENCY **************************************************************