----------------------------------BurmaNet----------------------------- "Appropriate Information Technologies, Practical Strategies" --------------------------------------------------------------------------- The BurmaNet News: October 17, 1996 Issue #544 Noted in Passing: One can say that the Myanmar democracy virus, which is more dangerous than computer virus, has infected [the US media].-Byatti, NLM: A WRONG MOVE AND ONE COULD LOSE THE GAME HEADLINES: ========== MICKEY MOUSE IN HOT WATER ON BURMA TIES SEEDS OF DIVISION CONSTRUCTIVE ENGAGEMENT IS NOT EVIDENTLY CONSTRUCTIVE MALAYSIAN FM DOES NOT TOUCH ON BURMA'S ASEAN ENTRY NLM: A WRONG MOVE AND ONE COULD LOSE THE GAME MITSUBISHI'S S.F. AIRPORT RAIL CONTRACT SHELVED RANGOON SIGNS OIL GAS DEALS MARYLAND TO BAN DEALINGS WITH SLORC CHINA WHITE' A PURER FORM OF HEROIN FLOODS U.S. CHICAGO - HUB FOR BUSTED NIGERIAN DRUG SYNDICATE PEREGRINE WINS FULL DAMAGES BURMA DENIES VISA TO CORAZON AQUINO BURMA CRACKS DOWN- EDITORIAL/COMMENT ANNOUNCEMENT: PROTEST & FAST FOR A FREE BURMA ---------------------------------------------------------------------------- MICKEY MOUSE IN HOT WATER ON BURMA TIES October 16, 1996 The Walt Disney Company is accused of supporting the Slorc junta. THE company that brought the world Mickey Mouse is in trouble as far as labor groups and pro-democracy activists are concerned over its connections with a garment assembly plant in Burma. Walt Disney Company has received clothing, under a licensing agreement with the New York firm Mamiye Brothers/American Character Classics, from the Rangoon plant in Burma, which is partly owned by that countries repressive military, according to the National Labor Committee (NLC), a New York labor group. As a result of the Burmese junta's 45 percent stake in the Rangoon garment factory and an additional five percent tax on all exports, "50 cents (Bt 12.50) of every dollar earned producing the 'Mickey and Co'label at the Rangoon factory flows back directly into the pockets of the Burmese military," the NLC argues. That money goes a long way to help consolidate Burma's military junta, the State Law and Order Restoration Council (Slorc), added Larry Dohrs, a coordinator in Seattle of the "Free Burma" Campaign. Foreign earnings "The garment industry accounts for a substantial portion of Burma's foreign earnings," Dohrs said, nothing the US Embassy in Rangoon estimates that the country earned some US$65.1 million (Bt1.62 billion)- 80 percent of its total exports to the US-from garment production in 1995. "Disney is a big player in that field," Dohrs added, "and the government dominates all business activity in Burma- that's just a basic fact." For Burmese workers, it is an extremely low-paying field. The US Embassy estimates that many Burmese garment workers spend 60 hours a week assembling clothes, for a wage of only six cents an hour. The NLC contends that, on average, Burmese workers earn only two or three cents for making a Mickey Mouse T-shirt that sells for $17 in the US. In its June 1996 report on foreign economic trends, the US Embassy points out that a large number of the garment assembly firms are at least partly owned by either the Burmese junta or by businessmen in "the opiates sector." Noting the US state Department's recognition of Burma as a major source of world heroin and opium production, Dohrs said that by involving itself in garment production there, "Disney is in with some unsavory company," But a Disney spokesman denies the charges, noting the company has no direct involvement in Burma. "We have decided already not to do any business in Burma as a company," said the spokesman, who insisted on anonymity. The subcontracting agreement at the Rangoon factory is "three steps removed from Disney," he argued. Nevertheless, he said, following reports of low pay and abuses at the plant, Disney is beginning its own investigation of conditions there. A spokesman for Mamiye Brothers said the company " independently pulled out of Burma six months ago." Even before the reports of abuses at the Rangoon plant surfaced, he said, the New York-based firm decided not to place any orders at the plant for its 1997 production. The news about Disney's link to garment assembly in Burma comes even as students at some 60 colleges and 10 high schools fasted to protest at US investment in Burma. The students fasted because "the situation is getting worse in Burma, which mass arrests and a crackdown on the [pro-democracy ] National League for Democracy (NLD), "said Sein Win, a NLD leader now based in Washington and the movement's choice for Burmese Prime Minister. US firms, Sein Win added, should respond by cutting off trade with Burma, which is heavily controlled by the ruling Slorc . "Until we have a system that guarantees rule of law and basic democratic institutions, no amount of aid or investment will benefit our people," Aung San Suu Kyi, the NLD's chief and the 1991 Nobel peace Prize laureate, warned in a taped message to those fasting. "Profits from business enterprises will merely go towards enriching a small, very privileged elite." "It would be fitting, especially during the fast for Burma ... for Disney to announce that it has made a grave mistake and will immediately sever all ties to Burma until the democratic government, which has overwhelming support, is restored to office," said NLC director Charles Kernaghan. The recent focus on Burma, including President Bill Clinton's restrictions on travel to the US of most Slorc members and their families, has already had an effect on US businesses dealing with Burma. Several US apparel firms, including Liz Claiborne, pulled out of Burma. Heineken Brewery ended its contracts with Rangoon recently, explicitly because connections to Slorc "could have an adverse effect on our brand and corporate reputations," according to Heineken chief executive officer Karel Vuurstein. Family -oriented business Disney, because of its image as a family-oriented business, could be equally sensitive to any links with Burma's military regime, Dohrs argued. Disney is such a high profile company that it is quite possible to bring pretty close scrutiny to them, " he said. A campaign against Disney also could help raise awareness about companies more closely linked to deals that allegedly benefit Slorc, including the US petroleum firm UNOCAL and French firm Total SA, Which have invested in a major gas pipeline in Burma, Dohrs added. Sein Win believes the battle over US public opinion is already being won by the NLD and democratic movement. "The movement is gaining support at the city level, at the state level, and among local people," he said. **************************************************************** SEEDS OF DIVISION October 17, 1996 By Michael Vatikiotis in Bangkok The Rangoon junta's latest crackdown on pro-democracy forces brings out differences within ASEAN on the issue of Burma's full membership of the organization. Burma's military rulers may have to pay a stiff price for their crackdown on the opposition National League for Democracy. The United States and the European Union have been pushed closer to imposing sanctions against Rangoon, and ASEAN could close the door to Burma's early admission. Washington could impose sanctions under a new law passed by Congress on September 30. It has already barred members of the Burmese junta or those who benefit from its rule from entering the US, a move reciprocated by Rangoon. The EU, meanwhile, is considering suspending preferential tariffs for Burma. But these measures would be mainly symbolic, given the low levels of European and US investment in Burma. Of more significance to Burma and its Southeast Asian neighbors is the division in Asean on the issue of Burma's membership of the organization. A meeting of ASEAN foreign ministers at the United Nations in New York last month - after the crackdown on the NLD - failed to endorse Burma's admission as a full member in 1997. Juwono Sudarsono, a well-known political scientist at the military-affiliated National Resilience Institute in Jakarta, believes the non-endorsement is "basically posturing by ASEAN to apply delicate pressure on Burma." But delicate though the pressure may be, Juwono adds, ASEAN is banking on it being effective. Indeed, the organization hasn't ruled out Burma's admission next year. As Malaysia's Foreign Minister Abdullah Ahmad Badawi put it: "We have another nine months to make a decision." Clearly, that decision will hinge on how Burma's generals behave in the near future. For the moment, the ruling State Law and Order Restoration Council, or Slorc, seems to be following its old pattern or repression followed by a loosening of the reins. On October 8 the barricades around NLD leader Aung San Suu Kyi's home in Rangoon were removed, and the government announced that all the 583 NLD activists who were arrested had been released. The last crackdown was especially galling to ASEAN because when it granted Burma observer status last July - a precursor to full membership - many within the organization hoped that the junta would be persuaded to moderate its stance towards the opposition. But Slorc launched the latest crackdown barely two months after lodging its formal application to join ASEAN. "Our hope was that when Burma joins ASEAN, they will change. Now it looks like they want to come in before they change," says a senior Indonesian diplomat. As a result, ASEAN faces a dilemma over Burma's early admission. There is agreement that Rangoon should join the group to achieve ASEAN's vision of a union of all 10 Southeast Asian states. But there is also growing concern that Rangoon may use membership as a shield against criticism of its human rights record, tarnishing ASEAN in the process. The problem for ASEAN is that some members are keener than others to accelerate Burma's entry. At one end of the spectrum is president Fidel Ramos of the Philippines. Ramos argues that Asean's policy engagement with Burma should be reviewed. Thailand supports this position. Thai Prime Minister Banharn Silpa-archa told the visiting Norwegian prime minister, Gro Harlem Brundtland, that ASEAN is not ready to accept Burma. A Foreign Ministry official in Bangkok says delaying membership would signal to Rangoon that "democratic principles are valued in Bangkok and Manila." Conversely, Malaysian Prime Mahathir Mohamad maintains that engagement with the military junta in Rangoon has been constructive. "I see evidence that it has caused change," he told the media in Kuala Lumpur. Indonesian Foreign Minister Ali Alatas told journalists in Kuala Lumpur that "as far as Burma's membership in ASEAN is concerned, Indonesia and Malaysia are of the same stand." Singapore, the largest ASEAN investor in Burma, shares this inclusive view. Even among those supporting Burma's admission, however, there are differences on timing. Mahathir is believed to be keen on speeding up Burma's entry partly because it would make next July's ASEAN Ministerial Meeting in Kuala Lumpur a diplomatic landmark. Indeed, Malaysia may have played a role in speeding up the timetable for Burma's entry. Rangoon initially applied to join ASEAN in mid-August. ASEAN diplomats say no time frame was specified. But following a visit to Kuala Lumpur in Late August by Slorc boss Gen Than Shwe, Burma specifically asked to join ASEAN in July 1997. The sudden shift in tack puzzles those close to the issue, who note that Burma has until recently been lukewarm about ASEAN membership. "A year ago, the Burmese were still telling is that ASEAN was a colonial legacy," says a analyst working on Burma-ASEAN affairs at a Malaysian think-tank. Rangoon's eagerness may stem from a conviction that ASEAN membership will help shield the regime from mounting opposition in Western capitals. In recent months, the Slorc has been reaching out with high-level visits to neighboring countries. Than Shwe was to pay an official visit to Cambodia in Mid-October. Some diplomats in the region speculate that Rangoon may have read Malaysia's encouragement as reflecting a consensus within ASEAN on Burma's early membership. Malaysia assumed the standing chairmanship of ASEAN from Indonesia in July. But by taking early admission for granted, Rangoon seems to have ruffled feathers in ASEAN capitals. "If the Burmese thought that they could unilaterally announce they could join, they must realize that membership requires acceptance by consensus," says an ASEAN official. Putting it more bluntly, the Malaysia-based analyst says: "Burma realized it could exploit ASEAN to defend itself against the West - and that was in bad taste." On one point, though, ASEAN officials are in full agreement. They insist they are not bowing to Western pressure over Burma. That could explain why technical issues are being raised to justify delaying Burma's membership - or indeed why there is unlikely to be a clear consensus until the last moment. Juwono Sudarsono, for one, expects ASEAN to vacillate, steering a course "between not succumbing to Western pressure and not too close identification with what is condemned as a pariah state." ***************************************************************** CONSTRUCTIVE ENGAGEMENT IS NOT EVIDENTLY CONSTRUCTIVE October 10, 1996 (translated from Thai) [BurmaNet Editor's Note: "Krungthep Turakit" translates as Bangkok Business. This newspaper is widely read by Thai businessmen.] Philippines President Fidel Ramos was the first of the ASEAN leaders to propose a review of the constructive engagement policy adopted by ASEAN toward the "State Law and Order Restoration Council of Burma." Even Singapore and Malaysia have responded to the call since the Burmese military government has done nothing to promote political development in Burma. Rather, what it did was to increase the suppression of democracy activists, especially opposition leader Aung San Suu Kyi, who has spearheaded a democracy movement in Burma. ASEAN members used to think that their constructive engagement would help Burma's military government to understand that it should give democratic freedom to the Burmese people instead of keeping them under the dictatorial rule that is the cause of the backwardness in Burma. The Burmese junta is also responsible for the lack of human rights and especially for the repression of those opposed to the current Burmese military government. Constructive engagement means that ASEAN countries will associate with Burma but will not interfere in Burma's internal affairs or exert pressure on the Burmese Government. Meanwhile, Burma will be encouraged to participate in ASEAN activities in order to expose it to the economic, social, and political development in ASEAN countries. Burma can look forward to joining ASEAN as a member and contribute to the common efforts of ASEAN to achieve development and peace in the region. In her direct criticism of ASEAN's policy, Aung San Suu Kyi once questioned whether constructive engagement was meant for the Burmese people or for others. She said foreign countries with engagements in Burma were looking for profits instead of providing humanitarian assistance to the Burmese people. Western countries have also expressed curiosity over why ASEAN has had to be good to the Burmese junta and not boycott or impose sanctions against it the way the United States has done. It should be noted that, while our neighbors are becoming repulsed by the Burmese Government's attempt to block democracy in Burma, the Thai Government has remained indifferent. Even worse, Prime Minister Banhan Sinlapa-acha paid a visit to Burma to promote investment expansion. It was clear that the Thai Government had no concern about the plight of the Burmese people in general. We would, therefore, like to ask the caretaker government in Thailand what it is going to do regarding the Burma issue: Is it going to wait for the next government to make a decision on any changes? ********************************************************** MALAYSIAN FM DOES NOT TOUCH ON BURMA'S ASEAN ENTRY October 16, 1996 KUALA LUMPUR- Malaysian Foreign Minister Abdullah Badawi yesterday said he would make his first visit to Burma next Sunday in a move destined to give new ammunition to critics of southeast Asia's policy of "constructive engagement " with that country's rulers. Abdullah said Burma's entry into the Association of Southeast Asian Nations (ASEAN) will not be a priority topic for discussions" during his two day stay there. "ASEAN has agreed that it would one day comprise 10 member nations and will encompass (Cambodia and Laos), including Myanmar (Burma, and this remains our policy," he said when detailing the itinerary for his eight -day trip, during which he will also visit Cambodia and Vietnam. "The question of when Myanmar (Burma) will join ASEAN is a secondary matter." Abdullah said. Abdullah will travel to Burma after attending the second meeting of the Malaysia-Vietnam Joint Commission to be held in Hanoi from October 17 to October 20. He visits Cambodia from October 22 to October 24. Several Western countries have grown impatient with ASEAN's so called "constructive engagement' policy on Burma and have prodded the grouping to delay Burma's membership and put more pressure on Rangoon to respect human rights and democracy. Burma's ruling State Law and Order Restoration Council is in the midst of a renewed crackdown on the opposition National League for Democracy (NLD), which claims up to 800 supporters have been detained in recent weeks. Official sources said 537 NLD supporters had been detained. ASEAN secretary general Ajit Singh is due to visit Burma from November 2 to November 9 to prepare for Rangoon's eventual entry into ASEAN. ***************************************************************** NLM: A WRONG MOVE AND ONE COULD LOSE THE GAME October 14, 1996 (New Light of Myanmar - government mouthpiece) by Byatti Excerpts [BurmaNet Editor's Note: Maureen Aung-Thwin is the Director of the Open Society Institute's Burma Project. The Open Society Institute is a branch of the Soros Foundation, founded by international financier George Soros. The Open Society Institute seeks to transform closed societies into open ones, characterized by "the rule of law, a democratically elected government, a diverse and vigorous civil society, a respect for minorities and minority opinions, and a free market economy".] Mrs Michael Aris and ax-handle gangsters accompanying her, who see only the bait, not the hook, cling to and rely on the care of America and Europe and are exaggerating and spotlighting all sorts of trivial matters in the country and are making their voices, at the highest pitch, heard abroad through good links to open the way for them to be able to meddle in and touch off problems, on the pretext of democracy and human rights. Baseless arid exaggerated news from disreputable persons called politicians led by Mrs Michael Aris was measured with the yardstick of American democracy and made to reach US President Clinton's ears through American Congressmen. In a study of the stratum of degenerative elements who are hurting themselves in their efforts to please their masters, one will find that they are all the likes of Mrs Michael Aris. They got married to white, red or multi-coloured foreigners and naturalised, thereby losing purity of genealogy. Maureen Aung Thwin of marred genealogy who was wont to appear on CNN news, for instance, has been away, from the motherland of Myanmar since she was about ten years old. She got married with an American citizen and was naturalized in the US about 20 years ago. Such a one of marred genealogy has no right to say anything about Myanmar and there is no reason to believe what she says. In fact, Maureen Aung Thwin is not doing any service with genuine goodwill towards Myanmar. She is posing as a democracy activist because she finds it easy living with something tasty to chew. For Maureen Aung Thwin and new and old expatriates in the US, the Soros Foundation is like a bank from which they can take money out and spend it and swindle at will. The foundation is known to be an NGO with noble objectives. It is based in the US. It is meant for aiding social and education sectors of the small developing nations. It is distressing to learn that the foundation is at the mercy of deception and concoctions by new and old expatriate gang members from Myanmar for their own gain. Maureen Aung Thwin was the strongest in her approach to that foundation than other new and old expatriates. She has been able to take the money out of the foundation using her womanly wiles and guiles in addition to the pretext of democracy and human rights. Out of the dollars which she had so obtained, she stole some for her and provided the paltry remainder to the remnant armed groups; she then gave them various incentives and instigated them to have her way. She paved her way with dollars in her approach to some US Senators. She shared those dollars with fellow new and old expatriates who were less fortunate. The name of the foundation which was established to serve the interests of the human race got tarnished by the crooks and democracy awards. Its objectives came to naught. Some sub-standard US Congressmen who have been lobbied by dollars obtained through mischievous means then blindly echoed the voice of expatriates because of the might of the dollar. Here, the most modern news gathering machinery of the US which is at the top in the world has gone wrong. One can say that the Myanmar democracy virus, which is more dangerous than computer virus, has infected it. Actions of Mrs Michael Aris are not up to the standard to compare with that of the present government. In fact, Mrs Michael Aris is a hindrance or an obstruction. She prevented, through devious means, the flow into the country of foreign assistance. Similarly, she stopped international assistance. She also obstructed the visit of tourists. Her acts have become excessive, undisciplined and unruly. A study of these facts makes obvious how rude, aggressive, morally petty and lowly she is. With the passage of time, diplomatic circles in Myanmar on their part have come to know her fouls one after another after dealing with her first thinking highly of her, and have begun to realize her situation. Being diplomats, they have not spoken out, though. If the new US Charge d'Affaires who will soon arrive and discharge his duty were someone who is interested in psychiatry or who has some knowledge about the nature of psychiatry, he will find an easy answer as to which ywathuma [village woman] is responsible for the state of Myanmar-American relations within minutes after he has talked with her. Both the American government and the public should study to see the objective conditions of Myanmar. They should bear in mind that Myanmar has an attitude of peaceful co-existence with each and every nation. The American college students too should see the schemes and steps of Myanmar new and old expatriates who are spreading falsehood on their campuses. The American authorities should note that such people have taken part in a role to disrupt peaceful pursuit of education in Myanmar. With advantage taken of President Clinton's preoccupation in the forthcoming presidential elections, the President was driven into decision on Myanmar with no time to think; some time should be taken to ponder over misrepresentations about Myanmar. *************************************************************** MITSUBISHI'S S.F. AIRPORT RAIL CONTRACT SHELVED October 11, 1996 The San Francisco airport commission Friday unveiled its decision to postpone awarding Japanese trader Mitsubishi Corp. a big-ticket project to build a light railway system inside San Francisco international airport. The airport commission cited Mitsubishi's business relations with Myanmarese companies. One of San Francisco's municipal ordinances bars doing business with companies that have business ties with firms of Myanmar, out of humanitarian concerns over the Myanmarese military regime's oppressive rule. The commission has a budget of 140 million dollars for the development of the intra-airport light railway system for passengers and airline staff, according to Ron Wilson, public relations director of the airport. In a late-September tender for the shuttle train project, Mitsubishi outbid other contestants, putting in a bid about 20 million dollars lower than the second lowest bidder, Wilson said. But the airport authority decided it was best to wait a little while before declaring Mitsubishi the winner for the bidding race, at least until it can clear relevant legal hurdles. However, Wilson said "There might be a way to sanction the project to Mitsubishi" since it is not an iron-clad ordinance and economic benefits to the community is to be taken into consideration in making decisions. ********************************************************** RANGOON SIGNS OIL GAS DEALS October 16, 1996 The Burmese government earlier this month entered into oil and natural gas production sharing contracts with oil firms from Indonesia and Malaysia, both Association of Southeast Asian Nations ASEAN members, according to the New Light of Myanmar. The state owned Myanmar Oil and Gas Enterprise signed the contracts to jointly explore for oil and natural gas in the Mergui Division of Burma's western coast with APN Petroleum Ltd of Indonesia, and in the Gulf of Martaban with Gentling Sanyen Sdn Bhn of Malaysia. Burma is jointly exploring for oil and natural gas in the Yadana field with the Petroleum Authority of Thailand, Total of France and UNOCAL of America. ***************************************************************** MARYLAND TO BAN DEALINGS WITH SLORC October 16, 1996 Takoma Park city in Maryland will pass a bill alter this month to prohibit the city entering contracts with American or overseas firms which deal with Burma, according to the Free Burma Campaign of Takoma Park's press release. Once the law is passed, expected on October 28, the city will join Madison October 28, the city will join Madison in Wisconsin: Ann Arbor in Michigan; Santa Monica, San Francisco, Oakland and Berkeley in California; and the state of Massachusetts in boycotting the Burmese military junta, the release. _ ***************************************************************** CHINA WHITE' A PURER FORM OF HEROIN FLOODS U.S. October 13, 1996 (Knight-Ridder Newspapers) by Michael Dorgan (abridged) When federal agents seized $ 1 billion worth of "China white" heroin and five suspects in Hayward, Calif., the Drug Enforcement Administration's special agent in charge boasted that "we've cut the head off the dragon." Robert Bender had reason to brag. That 1991 seizure of more than half a ton of 90 percent pure China white was enough to keep every junkie in the country high for a month. It was - and remains - the biggest heroin bust ever in the United States. But five years later, this much is clear: Federal drug officials were left holding not the head of the dragon but a piece of its tail. Huge quantities of China white continue to flow into the country. According to a DEA report, China white, produced by ethnic Chinese opium armies in the so-called Golden Triangle region of Southeast Asia, represents 57 percent of the heroin seized in the United States. So pure it can be smoked or snorted, China white has extended heroin use beyond those willing to jab needles into their arms. The drug's strength and popularity help explain why heroin-related emergency-room admissions have nearly doubled nationwide in the past five years. Street heroin is stronger now because dealers must compete for sales in a market glutted with drugs not only from Southeast Asia but also from Southwest Asia, South America and Mexico. But ethnic Chinese crime groups claim the dominant market share. "Large Southeast Asian heroin-trafficking organizations, often controlled by ethnic Chinese criminal groups, directed the smuggling of [China white] heroin into the United States," says a DEA report on heroin-trafficking patterns during 1995. "United States-based ethnic Chinese traffickers with links to these international criminal groups were the most prolific importers and distributors of Southeast Asian heroin." Despite all the talk about a war on drugs, the DEA and other federal agencies seem impotent in their efforts to staunch the flow of China white. In Burma, the world's primary source of heroin, the industry is protected by cease-fire agreements between the Rangoon government and the ethnic Chinese opium armies, which are remnants of the Nationalist army driven out of China by Mao Tse-tung's communist forces in 1949. The U.S. State Department's latest International Narcotics Control Strategy Report says leaders of the opium armies in Burma - also known as Myanmar - have such a cozy relationship with Rangoon that some have been given governmental positions as representatives of Burma's Chinese minority. And given that U.S. Customs' staffing is sufficient to check just 1 percent of the millions of cargo containers entering the country each year, Klink has no illusions about the ability of the government to stop the heroin flow at the U.S. borders. "My personal opinion is that we could go (to the Oakland Port) tomorrow and, if we knew what container to look in, could find 1,000 pounds more," he said. ******************************************************** CHICAGO - HUB FOR BUSTED NIGERIAN DRUG SYNDICATE October 12, 1996 (abridged) by Gerard Aziakou Federal agents tapped telephone conversations in Yoruba, a Nigerian lanaguage, helping US authorities and counterparts around the world to break up a global drug smuggling ring, officials here said. The arrests by US police and their counterparts in several countries has turned the spotlight on Chicago as a US hub for heroin trafficking and the key role allegedly played by Nigerian women. The head of the US Drug Enforcement Administration (DEA), Thomas Constantine, said the arrests, most them in the Chicago area, "immobilized an important international Nigerian syndicate based in Bangkok which smuggled heroin through Europe and Mexico and distributed to street gangs in the Midwest." Bill Modesitt, a DEA official here, said the Nigerians "are probably the biggest movers of heroin into the US from the Golden Triangle of Burma, Laos and Thailand." "They are probably the predominant group controlling 80 to 90 percent of all white heroin entering the United States and especially Chicago," he added. US officials said the ring began operating five years ago, with Nigerian women allegedly smuggling small quantities of heroin for existing organized crime groups. But Constantine said the ring developed "to the point where they are as powerful as any in the world." The cartel's reputed leader, identified as Musiliu Balogun, was not arrested in the sting operation. Bangkok-based Balogun, also known as Olopa and its English equivalent, "the Policeman" for his discipline of errant cartel members, is now on the run. ****************************************************** PEREGRINE WINS FULL DAMAGES October 11, 1996 by Karen Cooper Peregrine Investments Holdings has won damages of US$ 4.1 million - the full amount it was seeking - in a legal action against the former chairman of its Burma operation. The judgment, in a Federal District Court in New York, comes more than a year after Miriam Segal was dismissed by the investment bank when it uncovered her involvement in an alleged plot to damage its Burma business. Peregrine said yesterday its lawsuit against Ms Segal alleged breach of fiduciary duties and the terms of her employment contract. It said the outcome of the latest trial, which was limited to the quantum of damages suffered by the investment bank, "fully vindicated the company's position". "We are especially gratified that Ms Segal's evidence, by affidavit and live at trial, on all material matters were rejected by the court," Alan Mercer, Peregrine's counsel, said after the judgment was handed down. He said he did not know whether Ms Segal planned to appeal against the court's verdict. Mr Mercer said Peregrine had also issued proceedings in Hong Kong against Claude Charles, a former main board director with responsibility for Burma. Those proceedings also relate to breach of fiduciary duty in respect of the Mafco controversy and will not be heard until later next year. Mr Charles, who is now a director of Hong Kong-based investment house Equinox, said yesterday he would strongly defend himself against his former employer's allegations. "They are claiming I had something to do with her (Ms Segal's) actions," he said. "I absolutely deny that. There's no truth to what they are saying and that's why I'll be vigorously defending myself." In its action against Ms Segal which Peregrine said it resorted to after she attempted to bar the bank's representatives from its Burma business, Peregrine said she conspired with purported representatives of a multi-national group to create losses in Mafco, a fisheries business sold by her into a newly incorporated Peregrine company. By the middle of last year, Peregrine said it had invested more than $ 4 million initially in Ms Segal's investment vehicle and later in Mafco. Peregrine said Ms Segal "planned to maneuver it into a situation where it would opt to cut its losses by selling its one half interest in Mafco at a drastically diminished value to a buyer representing the conspirators". The plot came to light when a fax intended for one of her partners was mistakenly sent to Peregrine by Ms Segal's secretary. ***************************************************************** BURMA DENIES VISA TO CORAZON AQUINO October 16, 1996 MANILA: Burma has denied a visa to former Philippine President Corazon Aquino who has openly spoken out against Rangoon's ruling junta, Foreign Secretary Domingo Siazon said yesterday. "Ex-president Aquino applied on her own. As a private individual, they (Burmese authorities) can do that (reject her application), "Siazon told reporters at the presidential palace here. He did not say when or where the visa application was denied or what kind of visa Aquino had applied for. Asked if Manila can help the former president, Sizaon said it would be difficult, Siazon said it would be difficult since her visa application had already been rejected. Aquino, a widow who led a popular uprising that toppled dictator Ferdinand Marcos in 1986, has been vocal in her support of the struggle of Burmese opposition leader Aung San Suu Kyi to bring about democratic reforms in Burma. On Friday, Aquino urged international support for the democracy movement in Burma which has been locked in a bitter stalemate with the junta, officially known as the State Law and Order Restoration Council. She made the remarks at a State Department ceremony in Washington during which she was awarded the J William Fulbright Prize for International Understanding. ***************************************************************** BURMA CRACKS DOWN- EDITORIAL/COMMENT November 1996 It's boycott time again. Burma's repressive government continues its campaign against the pro-democracy movement and Aung San Suu Kyi. The winner of the Nobel Peace Prize, Suu Kyi was elected as the country's leader by landslide vote in 1991, but was never allowed to serve. The SLORC (State Law and Order Restoration Council), Burma's military government, held Suu Kyi under house arrest from 1989 until 1995. Today, the repression of Burma's democracy movement is escalating. In the final days of September, the SLORC rounded up hundreds of Suu Kyi's followers to prevent Suu Kyi's party, the National League for Democracy, from holding a weekend congress. On September 28, riot police surrounded Suu Kyi's house, preventing her from leaving and from making her customary weekend speeches to the thousands of supporters who gather to hear her. Meanwhile, the SLORC carries on more repressive actions, including forced relocations, village burnings, imposing slave labor, and murder. Here's where the United States comes in: Several U.S. companies have major investments there and are collaborating with the SLORC (see "Burma in Chains," October 1995, and "From Green Bat to Rangoon," Page 30). U.S. investment in Burma last year totaled $245 million, most of it in oil and gas. Because of the conditional sanctions President Clinton signed in September as part of the appropriations bill, U.S. law will prohibit new investment in Burma if Suu Kyi is imprisoned or harmed, or if there is a large-scale crackdown on the pro-democracy movement. But the conditional sanctions will not apply to companies that already have operations in Burma. Zarni, a University of Wisconsin-Madison graduate student and a citizen of Burma, is the founder and coordinator of the Free Burma Coalition, an international network of activists who maintain daily contact with each other via e-mail (zni@students.wisc.edu). "It's better than nothing," Zarni says about the recent legislation. "But it's not enough. We need to get the oil corporations out." The Free Burma Coalition and other groups supporting the pro-democracy movement are calling for a worldwide boycott of companies that continue to do business with the SLORC, including the U.S. companies Total, UNOCAL, Texaco, Arco, and PepsiCo. Six U.S. cities and the State of Massachusetts are boycotting any company that does business in Burma. Already the corporations stand to lose contracts worth millions of dollars, says Simon Billenness, a senior analyst at Franklin Research and Development, a socially responsible investment firm in Boston. "This is a lot of pressure. Boycott them. Let's make sure these companies lose millions of dollars in contracts--they'll notice that. And they *are* noticing." The SLORC is also noticing the effects of the worldwide activism. It has recently enacted a law prohibiting Burmese citizens from owning modems. Punishment for this offense is fifteen years in prison. "The latest wave of repression indicates that the regime is determined to hold on to power at any cost," says Zarni. "The so-called constructive-engagement approach advocated by U.S. investors such as UNOCAL has clearly failed. Until there is a democratic government in Burma, no U.S. investment should be allowed." Unocal managed to persuade the Senate to turn down a total pullout of American investment in Burma. Arco also defended its presence there. "If U.S. companies didn't go into Burma, you can bet the French will," said Mike Bowlin, the company's C.E.O. This is hardly an ethical stance, and it's the kind of claim companies trotted out when they opposed sanctions to end apartheid in South Africa. Then, as now, the moral argument is clear: U.S. companies should not prop up repressive regimes. **************************************************************** ANNOUNCEMENT: PROTEST & FAST FOR A FREE BURMA October 15, 1996 From: "Burma UN Service Office" Help NYC pass Burma sanctions bill Stop Slorc's repression of Burmese people Join the fast & protest in front of city hall, NYC. (At the fountain in the park just south of City Hall) Starting at 6am on Wednesday, Oct 23 and continuing until Sundown Friday, Oct 25 + The State Law and Order Restoration Council (slorc), the military junta now ruling Burma, has arrested nearly 500 civilians, including a majority of the pro- democracy party National League for Democracy (NLD) and 200 students. This most recent wave of oppression was initiated two weeks ago, after Nobel peace prize recipient and NLD leader Aung San Suu Kyi announced a meeting to commemorate the anniversary of the NLD's founding. + Repression in Burma is endemic since the military coup in 1962. In 1990 the military was forced to have free elections, but the democracy party won 82% of the seats, so the military refused to yield power and forced the elected leaders into exile. + Since SLORC's annulment of the election results, it has perpetrated what are among the worst human rights violations in the world, including institutionalized slavery, rape, torture and murder against millions of civilians, even children. + Sixty percent of the heroin coming into NYC originates in Burma. Slorc has tripled its production to become the world's largest heroin supplier, the drug money enabling them to purchase arms and ammunition. NYC council must pass bill 647, selective purchasing legislation against Burma. Other cities such as Santa Monica and Berkeley, California, and the state of Massachusetts have already enacted such legislation. For more information call the Burma UN service office at 212/338-0048 By subway, take the n/r to City Hall or the 4/5/6 to Brooklyn bridge-city hall.