------------------------ BurmaNet ------------------------ "Appropriate Information Technologies, Practical Strategies" ---------------------------------------------------------- The BurmaNet News: May 29, 1997 Issue #735 Noted in Passing: Thailand is simply being treated in the same manner as a pro-democracy civilian on the streets of Rangoon or a member of a minority living in areas along the border. --see the Bangkok Post Editorial - 'Does Asean Need Such A Brute?' HEADLINES: ========== ALTSEAN PRESS RELEASE: SUU KYI MESSAGE TO ASEAN REUTER: BURMA BID FOR EARLY ASEAN ADMISSION LA TIMES: BAN ON MYANMAR MAY HIT US FIRMS BERNAMA: IF UN CAN ADMIT MYANMAR, SO CAN ASEAN UPI: JAPAN PRIME-MINISTER HASHIMOTO CONCERNED AFP: TOKYO 'TO FREEZE DEVELOPMENT AID TO YANGON' ASIA TIMES: MYANMAR MEANS A LOT TO THE JAPANESE BKK POST: 'PERMISSION OBTAINED' TO DREDGE RIVER THAILAND TIMES: GUNFIRE AT BORDER BKK POST: EDITORIAL - DOES ASEAN NEED SUCH A BRUTE? ASIAWEEK: ASIAWEEK'S POWER 50 BKK POST: CONSTRUCTIVE ENGAGEMENT NEEDS BUSINESS XINHUA NEWS AGENCY : MYANMAR TO INVITE MORE FOREIGN THE NATION: REPRESSIVE SLORC RULED BLAMED ----------------------------------------------------------------- ALTSEAN PRESS RELEASE: SUU KYI MESSAGE TO ASEAN May 29, 1997 ALTSEAN-BURMA A L T E R N A T I V E A S E A N N E T W O R K O N B U R M A tel: 66 2 275 1811, 66 2 693 4515 fax: 66 2 693 4515 c/o FORUM-ASIA 109 SUTHISARNWINICHAI RD SAMSENNOK HUAYKWANG BANGKOK 10320 EMBARGOED: FOR RELEASE ON MAY 29,1997 MEDIA RELEASE SUU KYI ASKS ASEAN: ENGAGE WITH US [BurmaNet Note: Text of media release containing excerpts from video transcript omitted. Please contact altsean@ksc.th.com for full text] ALTSEAN-BURMA Coordinator Debbie Stothard said that Ms Suu Kyi's concerns about the economic and political instability perpetrated by the Slorc were concrete reasons to delay Slorc's entry into Asean: "We should not cheapen ourselves by rushing to grant them membership. The junta's track record is a grave concern not just to the people of Burma, but also to investors and political leaders. The regime is notorious for making promises it has no intention of keeping. The Burmese elections 7 years ago is clear proof of that," said Ms Stothard. Video transcript follows TRANSCRIPT: MESSAGE TO THE LEADERS OF ASEAN FROM AUNG SAN SUU KYI, GENERAL SECRETARY, NATIONAL LEAGUE FOR DEMOCRACY. MAY 1997 Due to the restrictions imposed on Daw Suu Kyi by the military regime, the State Law and Order Restoration Council, this video was recorded under severe technical restraints and was smuggled out of Burma at great risk to those involved. Q: In your view, how has the military regime mismanaged Burma's economy? A: There are several theories about it but one of the most important is the fact that they do not have a proper macro-economic policy. And of course, such institutions like the IMF have great doubts about their deficit funding Now, we think that they have mismanaged the economy by mismanaging the people of Burma. Basically that's why they have made such a mess of the economy. They are not making proper use of our resources, our human resources as well as our material resources. Q: What is the long-term impact of military rule on the workforce? A: Well, this comes back to what I was saying just now about mismanagement of resources. They are not making proper use of our human resources. They are spending much less on education now than was spent eight years ago before the democratic revolution, and of course, they are spending much less money on health care. That means they are not looking after our people either physically or mentally, and that is going to be disastrous in the long run. Q: What does the recent unrest indicate to you about the stability of the country? A: I think unrest anywhere and tension anywhere is symptomatic of instability throughout the country. The fact that (is) people everywhere in Burma have to live under a lot of stress because there is no security for them, and stress leads to instability. Q: In your view, what are the risks involved in the Slorc being admitted into Asean? A: Burma under Slorc is not going to be any credit to Asean, but I think what Burma risks, what the people of Burma risk, is the possibility that admission into Asean will make Slorc even more obdurant and oppressive than ever. Q: Why would a democratic government be a better Asean partner? A: The NLD or any other elected civilian government would have the mandate of the people. It would have the trust and the confidence of the people and I think, also consequently, the confidence of the international community. A government that works on the basis of trust would be a lot more effective than a government that uses the power of arms to keep itself in control , at the helm of state power. Now there's another thing: A civilian government , a democratically elected civilian government would have to listen to the voice of the people. It would have to listen to the voice of the world and by listening, such a government would be able to discover what its mistakes are and be able to correct them. Q: What does the National League for Democracy want Asean to do? A: Asean says that it believes in constructive engagement, so we would like Asean to make sure that the engagement is constructive. And also I think they should be engaged with us as well, the National League for Democracy because we are the party which was elected by the people in the democratic elections of 1990. We have never been given a chance to do anything about that, and I think if Asean is truly interested in constructive engagement it should try engage with both sides in Burma, with the Slorc as well as the democratic opposition, and make sure the engagement leads to something constructive, in the way of development towards democracy. Q: What is the NLD's policy on Asean investment in Burma? A: We are not against business and we are not against investment. But we are not in favour of the kind of investment that simply encourages the military regime to increase its oppressiveness. We are not in favour of the kind of investment that makes some people, a very privileged elite, very, very rich while the rest of the country stays as poor as ever. So, we want responsible government and responsible investment. ---------------------------------------------------------------- For more information, please call BKK (66 2) 693 4515 or 275 1811 or email *********************************** REUTER: BURMA BID FOR EARLY ASEAN ADMISSION SEEN STUMBLING May 28, 1997 By Bill Tarrant KUALA LUMPUR, May 28 (Reuter) - Burma's bid for early admission into the Association of South East Asian Nations (ASEAN) appeared doomed by concern over its human rights record and strife in Cambodia, officials said on Wednesday. Foreign ministers of the ASEAN nations -- Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam -- will meet in Kuala Lumpur on Saturday to decide when to admit its final three members. ASEAN said last year it would admit all three together. Malaysia, this year's ASEAN chairman, has been pressing for Burma, Laos and Cambodia to be inducted at ASEAN's annual ministerial meeting on July 24-25 in Kuala Lumpur. Alternatively, the three could be admitted at an informal ASEAN summit in December, also in Malaysia. ``I've been told the ambassadors of the three (Burma, Laos and Cambodia) have been asked to stand by for the press conference after Saturday's meeting,'' a Western diplomat said. Malaysia's acting Prime Minister Anwar Ibrahim told reporters on Thursday that the admission of the three countries would take place by the end of the year. ``Our decision has been rather consistent, that the admission should be the latest by the summit. Meaning, therefore, that the process can take some time, particularly because we have always adhered to the principle of consensus,'' Anwar said. Diplomats said Malaysia preferred the July timeframe because it wants the December summit -- to which Japan, China and South Korea have also been invited -- to focus on Asia-wide issues. A senior Cambodian official said on Tuesday that the admission of the three would have to be delayed because of Cambodia's political problems. A tense feud between the leaders of Cambodia's coalition government has raised doubts about whether Phnom Penh could pass the necessary legislation by the July ministerial meeting. Political analysts said the country's instability had also triggered concern over Cambodia's readiness to join. Separately, the United States has asked ASEAN to delay Burma's entry because of its human rights record and the suppression of the democracy movement led by Aung San Suu Kyi. A senior official in Thailand's foreign ministry said on Wednesday the combination of factors could result in a delay. ``They may delay the decision, and most likely they would decide on the issue by the end of the year when the heads of government of ASEAN members meet,'' said the official, who declined to be named. ``By now, Kuala Lumpur seems to realise the current situation is not appropriate to push too hard because of the internal and external factors,'' he told Reuters. Malaysian Prime Minister Mahathir Mohamad, who is believed to be keen on early admission, could have used his prestige in the region to twist some arms over the issue, diplomats said. But he is in London on a two-month leave. An influential Malaysian Moslem group on Thursday urged that Burma's admission be deferred over its alleged harassment of the country's Moslem minority. The Moslem Youth Movement of Malaysia, in a letter to Anwar and the foreign ministry, said 30 mosques have been destroyed since mid-March and held Burma's military rulers responsible. Clashes between Buddhists and Moslems broke out in March in Burma's second city, Mandalay. Witnesses said mosques were ransacked and monks staged street protests. The unrest spread to other cities including the capital of Rangoon. ASEAN members Indonesia, Brunei and Malaysia have Moslem majorities. Indonesian Foreign Minister Ali Alatas said ASEAN would admit its new members this year, but did not say exactly when. ``Our hope is we will reach a consensus that those three nations can become full members this year,'' Alatas said on Wednesday after meeting President Suharto. *************************************** LA TIMES: BAN ON MYANMAR MAY HIT US FIRMS THROUGHOUT SOUTH-EAST ASIA May 28, 1997 WASHINGTON -- American companies may find that the White House ban on new investment in Myanmar has implications extending far beyond that country, jeopardising projects in other South-east Asian economies as well, some experts have said. A broad interpretation of the presidential ban could threaten billions of dollars worth of business throughout South-east Asia, crippling US firms in one of their fastest-growing markets, according to a group representing 450 major companies active in the region. While business executives and trade lawyers are still studying the executive order issued last week implementing the ban, the US-Asean Business Council has said it could even prohibit participation in regional projects that extend from another country into Myanmar. If Myanmar joins Asean as expected this year, "all of these regional transportation, telecommunications, all of these regional networks are going to have a Burma element in them," said Mr Ernest Bower, president of the council. "We stand to lose enormous amounts of business." Other experts have said that the ban casts a wider net than expected around projects within Myanmar and may create more problems for energy companies already involved in projects there -- like Unocal Corp, Atlantic Richfield Co and Texaco, the leading US investors -- than those companies realise. President Bill Clinton's order last Tuesday formalised the administration's announcement last month that the ban on new investment was forthcoming. The order prohibits US citizens from entering into contracts that involve the economic development of resources in Myanmar. It also prohibits Americans from purchasing ownership shares in developing resources in the country or helping non-US citizens who wish to perform activities forbidden under the ban. While the executive order allows companies to complete ongoing contracts, it is not clear whether they will be able to engage in any additional work that would require new funds, such as building a pipeline to get their gas to market, according to legal and government sources. "Unocal is going to have trouble going forward under this," said Mr David Schmahmann, an international legal expert with the Boston law firm of Nutter, McClennen & Fish. Mr Schmahmann said that the ban did not define "new investment" clearly and prohibited -- unexpectedly -- investment into not only natural resources but agriculture, financial, industrial and human resources. And while it did not cover foreign subsidiaries of US companies, it prohibited US businesses from approving or facilitating any transactions by foreigners that would be considered illegal under the presidential ban. The ban carries a penalty of up to 10 years in prison and a US$55,000 (S$78,650) fine for violators. But no one is certain yet just what is illegal, which is why these US companies are lining up to meet officials of the Treasury Department, whose Office of Foreign Assets Control will be enforcing this measure. Treasury is expected to issue its enforcement regulations for the Mynmar ban in a month. -- LA Times. ******************************************** BERNAMA: IF UN CAN ADMIT MYANMAR, SO CAN ASEAN May 27, 1997 KUALA LUMPUR -- Myanmar's imminent membership of Asean could be the starting point for improving the human-rights situation in that country, an international expert on human rights said here yesterday. Professor Yozo Yokota, who served as the United Nations special rapporteur on the situation of human rights in Myanmar for four years until May last year, said it was up to the Asean members and the government in Yangon to decide on Myanmar's membership into the grouping. "If the United Nations accepts Myanmar as member, Asean has the right to accept Myanmar," he said during a lecture at the Institute of Strategic and International Studies (Isis) here. "My sincere hope is that the membership of Myanmar into Asean, which is likely to take place soon, will be the starting point for improving the human-rights situation in Myanmar and restoration of democracy," said Prof Yokota, who is attached to the Law Faculty at the University of Tokyo. He said he was aware that some Western governments did not want to see Myanmar accepted by Asean and that Myanmar's opposition leader Aung San Suu Kyi and her National League for Democracy party wanted the ruling State Law and Order Restoration Council to restore democracy and respect human rights first before it is accepted by Asean. Asean foreign ministers are expected to decide on the timing of Myanmar's entry along with Cambodia and Laos at a meeting here on Saturday. Prof Yokota said just as in the case of the UN, which had clear objectives to achieve co-operation among member states for respect of human rights, Myanmar's entry into Asean could further boost the efforts. He said the situation of human rights in Myanmar when he was the special rapporteur until last year was "very bad" and he believed the situation had not improved much. "The government of Myanmar has to respect the human rights of their own people," he added. -- Bernama. ******************************************* UPI: JAPAN PRIME-MINISTER HASHIMOTO CONCERNED OVER BURMA ACTION May 28, 1997 [abridged] TOKYO, May 28 (UPI) _ Prime Minister Ryutaro Hashimoto says he hopes Burma's entry into the Association of Southeast Asian Nations will not mean the military junta is spared criticism in the future. Hashimoto expressed concern to journalists Wednesday over the Burmese junat's blocking of a pro-democracy meeting in Rangoon. The prime minister says, ``We hope (Burma's) membership in ASEAN will not give immunity to the military regime's actions.'' The seven-members ASEAN alliance plans to admit Burma into the regional group this year. ******************************************************* AFP: TOKYO 'TO FREEZE DEVELOPMENT AID TO YANGON' May 24, 1997 [slightly abridged] TOKYO -- The Japanese government is to suspend official development aid to Myanmar to encourage the country's military regime to resume talks with democracy advocates, a press report said yesterday. The government would not restrict corporate investment in Myanmar, but would freeze loans through the Overseas Economic Co-operation Fund to private sector-led projects, said the Nihon Keizai Shimbun. Tokyo was also expected to stop humanitarian assistance in medical and food supplies, excluding small subsidies to non-governmental organisations, said the daily. No immediate comment on the report was available from the Japanese government.-- AFP. ****************************************** ASIA TIMES: MYANMAR MEANS A LOT TO THE JAPANESE May 28, 1997 Stephen Brookes, Yangon There's not much to see yet at the sprawling Mitsui industrial development zone on the northern outskirts of Yangon. It's a flat expanse of virgin ground, broken only by a few scattered construction buildings, stacks of pipe waiting to be laid and cement trucks sending up clouds of dust as they lumber across the landscape. But by the end of the year, said Mike Nagai, the general manager of Mitsui's Yangon office, the site would be a thriving mecca for new manufacturers - part of the growing tide of Japanese traders and investors who are helping to jump-start Myanmar's economy. What was happening now in Myanmar, said Japanese businessmen in Yangon, was the next step in a process that started in the mid-1980s when Japan began promoting industrial development in Thailand, Malaysia and Indonesia. "More than half of the investment for ASEAN's [the Association of Southeast Asian Nations] industrialization came from Japan," said Nagai. "And it was mutually beneficial. We shifted our industry to ASEAN because of the cost difference, and it increased ASEAN's per capita GDP [gross domestic product] three to five times. We'd like to do the same thing in Myanmar." Japanese investors said Myanmar's ragged infrastructure, lack of services and other hurdles were outweighed by the country's low-cost, educated labor force, expected entry in ASEAN and long-term economic potential. "Our experience has been very positive," said Hiroshige Seki, general manager of the Yangon branch of Marubeni Corporation. "The economy is growing, and within five years we expect to see a lot of development." Japan is the ninth-largest investor in Myanmar, with some US$184 million in committed investment at the start of this year, most of it in real estate and hotel development. About 70 Japanese companies now have branches in Yangon, led by large trading groups like Mitsui, Marubeni and Mitsubishi - some of whom have been doing business in Myanmar for decades. In recent years, Japanese construction companies have entered the market, and small enterprises like service centers are now being established. And in Yangon, the Japanese economic profile is increasingly prominent. There are Nissan, Isuzu and Suzuki showrooms downtown, Japan Airlines has a tie-up with Myanmar International Airlines, Japanese banks crowd the prestigious International Business Center, and Daiwa Research is a joint partner in the country's fledgling stock exchange. And some large Japanese companies are expanding in broad areas, and have the resources to bring off major developments independently. "There are 27 companies in the Mitsui group," said Nagai. "We have banking, insurance, petrochemicals. Once our company decides to implement a project, we can organize the financing." But at the official level, Tokyo is still cautious about Myanmar, and many smaller Japanese businessman are waiting until Tokyo restarts matching grants and assistance programs to Myanmar before investing. Official Development Assistance (ODA) has been on hold since 1988, and United States objections over human rights issues have prevented the International Monetary Fund and the Asian Development Bank from extending loans to Myanmar, hindering large-scale infrastructure development. Last year, pro-democracy leader Aung San Suu Kyi attacked Japanese investment in the Tokyo press. "If businessmen do not care that our workers are exposed to exploitation, they should at least be concerned that a dissatisfied labor force will eventually mean social unrest and economic instability," she warned. Large Japanese companies who come to Myanmar "to enrich themselves", she added, were among the "despoilers" of the nation. But Japanese investors said that view was inaccurate. "I don't understand why anyone would complain that we're creating jobs," said one Japanese businessman in Yangon, whose company employs more than a thousand local workers. "People are very happy to have jobs with Japanese companies. We pay better than most other employers, and we take better care of our employees. Other Asian investors complain that we pay our workers too much." "A lot of clients are careful because of the political situation," added Kiyoshi Nakano, general manager of the Yangon branch of the Japanese engineering firm Hazama, which is putting up the Royal Lake Hotel in downtown Yangon. "But the most important thing is to improve the infrastructure, then the awareness of the people will change." Businessmen in Yangon also expressed disappointment with the US decision in April to impose economic sanctions on Myanmar. "It was very sad for us," said one Japanese investor. "The sanctions don't help anyone. America should take an important role and take part in the international consortiums." Despite the increasingly hard line taken in the West, Japan's Foreign Ministry said recently that Japan is "not contemplating imposing sanctions on Myanmar at the present time", and some analysts believe that ODA may start again soon. "Japanese investment is tentative and will remain so until ODA is resumed, and the Japanese government can guarantee projects," said Michael Dobbs-Higginson, chief executive officer of Myanmar Investments Management in Yangon. "The Foreign Ministry is ultra-conservative and very cautious. But if ASEAN brings Myanmar in, this will change, and then it becomes an interesting equation. Japan has no real friends in Asia - the only friend it has is Myanmar. There's a special relationship with this country." The idea of a special relationship is widely shared among Japanese businessmen, who note that both countries have long historical ties and share non-confrontational cultures. "The Myanmar character is very similar to the Japanese character, and we communicate very easily," explained Marubeni's Seki. "In Japan, we say 'yes' but we don't always mean 'yes'," he said, laughing. "It's the same thing here." Moreover, said one analyst, Myanmar was looking for regional supporters to balance India and China, with which it shares borders. But the most important factor in developing ties, many have said, may be the mutually beneficial marriage of Japanese technology and capital with Myanmar's low-cost labor pool and prime geographic location. The Japan Development Institute (JDI), which has set up industrial zones throughout Southeast Asia, is looking for ways to help Myanmar develop infrastructure - even without aid from the international financial institutions. In this way Japan has a key role to play in Myanmar's development, according to Shoichi Kobayashi, the JDI's deputy director. "I use the metaphor of the bird sanctuary," he said, during a recent trip to Yangon. "In the mid-1980s, Japanese manufacturers began looking for new lower-cost manufacturing areas. But when these industrial 'birds' looked south, they found that the countries of Southeast Asia weren't able to support them, in terms of services, legal structure and infrastructure. So we began developing 'ponds' for these birds to settle in. We developed large-scale industrial zones in Thailand, Malaysia and Indonesia, and you can see that they have had a tremendous impact. It's really nation-building at the core." Kobayashi is helping develop seven special economic zones in Myanmar to draw in investors from Japan, South Korea and other Asian countries. He has drafted plans for special zones around Yangon, Mandalay and other cities, as well as in more remote parts of the country. "This kind of project is not so profitable," he said. "Normally the government should do it, but there's not much money. So it's volunteer work. I've tried to persuade the private sector in ASEAN and Japan to help, and I think I'll get their support." Myanmar's potential was so great, said Kobayashi, that it could fast outstrip many of its neighbors. "They have an open ear compared to Vietnam, where they don't know how to make a decision and are greedy with land," he said. "If properly guided on land and industrial policy, this country could move forward much better than Vietnam, China, Africa and the countries of Eastern Europe." (AT) ******************************************** BKK POST: 'PERMISSION OBTAINED' TO DREDGE RIVER May 28, 1997 [abridged] Supamart Kasem, Tak Burmese authorities claim dredging of the Moei River opposite Mae Sot district is taking place with the consent of Thai authorities. The commander of the 4th Infantry Division, Maj-Gen Chalor Thongsala, quoted Burmese representatives as saying some high-level Thai officials had allowed Burma to dredge the river opposite Ban Rim Moei to change its flow to its original course. The Burmese claim was made yesterday at a meeting of Thai and Burmese officials led by Maj-Gen Chalor and the director-general of the Burmese Treaties and Legal Affairs Department, U Aye Lwin, in Mae Sot. At the meeting, the army asked Burma to stop the dredging and proposed that the two countries withdraw their troops and heavy equipment from the area. Burmese representatives promised to suspend the dredging and agreed in principle to withdraw their soldiers and machinery from the site only after they obtained an order from the authorities. Tak Governor Pongphayome Wasaphuti said higher-level officials had never told provincial officials that Thai and Burmese authorities had allowed Burma to dredge the river. A Thai-Burmese technical committee led by the director-general of the Treaties and Legal Affairs Department, Somboon Sa-ngiambutr, and his Burmese counterpart, would meet on Friday to resolve the problem, the governor said. Informal talks between members of the technical panel might be held sooner as Mr Somboon was scheduled to arrive in Mae Sot district this afternoon, he added. About 100 villagers from Ban Mae Dao and Ban Rim Moei in Tambon Tha Sai Luad gathered yesterday afternoon opposite the dredging site to protest against Rangoon's action and to support Thai troops that are preventing the Burmese from crossing into Thailand. Twenty people who lost their land when Burma began carving out the new channel showed their land ownership papers to the press and urged Deputy Interior Minister Chaipak Siriwat to help them. ****************************************** THAILAND TIMES: GUNFIRE AT BORDER PUTS TROOPS ON ALERT FOR BATTLE May 28, 1997 [abridged] By Assawin Pinitwong TAK: The sound of gunshots ricocheted through the Thai-Burmese border area yesterday, but fighting between the heavily armed Thai and Burmese troops confronting each other on a disputed island in the Moei River was narrowly avoided. Soldiers from both sides reacted swiftly when they heard the firing, preparing themselves for battle and moving closer to leave a distance of just five meters between them, border officials said. But it soon became apparent that it was a false alarm, the gunshots having come from clashes between Burmese troops and the Karen National Union (KNU) not far from the contested area. The soldiers quickly backed off. Reinforcements brought in on Monday have swelled the number of troops on the contested Kok Chang Phuak island to over 500. Thailand's threat of military force against the Burmese came after repeated requests for the junta's troops to halt their excavation work in the area were turned down. ********************************************* BKK POST: EDITORIAL - DOES ASEAN NEED SUCH A BRUTE? May 28, 1997 Burmese troops have occupied a disputed island along the border with Thailand and are acting in their usual manner of being totally indifferent to even the most basic norms of civilised behaviour. But these men are only acting at the border of people Thailand feels should be welcomed into the regional community. The forced occupation by Burmese troops of a disputed islet in the Moei River to protect a dredging crew is provocative, totally unnecessary and unbefitting of a friendly neighbour. There are civilised means of settling disputes between states sharing a common border, and they most definitely do not include resorting to brute force. Negotiation is the standard practice recognised internationally. The deployment of troops and the planting of flags to lay claim to this small islet inhabitated for generations by Thai villagers clearly demonstrate Rangoon's blatant disregard for accepted practices and Thai sovereignty over the islet. This outrageous action illustrates all too well the Burmese junta's reluctance to settle border disputes with Thailand in a peaceful and civilised manner. But given Slorc's record of blatant human rights violations and its contempt for all things civilised, we should not be surprised by the forced occupation which led to the uneasy confrontation. It was typical of the Burmese military junta's approach to settling disputes - that is, through the barrel of a gun. Thailand is simply being treated in the same manner as a pro-democracy civilian on the streets of Rangoon or a member of a minority living in areas along the border. This latest border conflict should serve as a signal to the Thai government to rethink its support for Burma's early membership of Asean. If the Burmese junta understands only the heavy-handed approach and fails to recognise that peaceful settlement is enshrined in the Asean treaty of amity, then its entry to the regional grouping cannot be allowed - not now and not until it changes its brutish ways. (BP) ******************************************************* ASIAWEEK: ASIAWEEK'S POWER 50 May 30, 1997 [abridged - only includes Burma 'power brokers'] Robin Ajello A year is a long time for power brokers, especially in the New Asia where clout is less a given than a reward. In our second annual ranking, three factors stand out: democracy, globalization and media. 45 Maung Aye ARMY CHIEF, SLORC DEPUTY CHAIRMAN, MYANMAR BORN Dec. 25, 1937, in Sagaing Division, Burma EDUCATION Defense Services Academy, Maymyo FAMILY Married, one daughter ADDRESS Defense Ministry, Yangon POWER SHIFT A hardliner with little time for political niceties, he is the man behind the near-rout of the long-running ethnic Karen resistance. Next in line to take over the State Law & Order Restoration Council and a major force behind the military junta's tougher line on dissidents and rebels. He is suspicious of too much economic liberalization. This man will keep a lid on political freedom. Thirteen people dropped out of the Power 50. Here's why---- Myanmar dissident Aung San Suu Kyi (No. 50 last year)has suffered setbacks in challenging her countrie's dominant power. Suu Kyi's weekly rallies outside her Yangon home have stopped after the ruling junta barricaded her street. Her movements have been more cautious following an attack on her car. Yangon's harder line also suggests that relatively moderate General Khin Nyunt (No. 39) has lost clout; other minuses for the intelligence chief are the failure of his Visit Myanmar Year hospitality offensive, and the recent bomb attack on a top general's daughter. ********************************************* BKK POST: CONSTRUCTIVE ENGAGEMENT NEEDS BUSINESS SUPPORT May 23, 1997 John R.Schermerhorn, JR WITH President Clinton's ban on further US investment in Burma, attention shifts again towards those inclined to get tough with the Slorc. Sentiment against the military junta is running high in the European Union ad North America, fuelled by an April 16 condemnation by the United Nations Human Rights Commission. But as good as confrontational methods may seem to many, Asean's preference for constructive engagement must be respected, Indeed, the policy deserves better support. Even as anti-sanctions lobbies and anti-constructive engagement activists criticise each other's tactics, Slorc's generals continue their reprehensible ways. National League for Democracy leader Aung San Suu Kyi is harassed, the democratic government elected in 1990 is kept from taking office, sanctuary is lent to drug lords, and citizens are mistreated through forced labour, involuntary reallocations and more. It is time for those concerned about Burma's social and economic future to find the common ground - the desire to change the present situation for the better as soon as possible without physically harming anyone in the process. What that world needs is a coherent sanctions and constructive engagement strategy. Step one is for governments inclined towards sanctions to stop simply talking tough ad start walking the tough talk. President Clinton took a half-step in dealing with others by banning future American investment; a full step would have banned all of them. As it is, the US$1.2 billion (31.2 billion baht) Yadana gas pipeline project (involving America's Unocal, France's Total and the Petroleum Authority of Thailand) continue unscathed. The largest of all the foreign investments, it is reputably worth some $400 million (10.2bilion baht) in annual revenues to Slorc when operational. With the junta teetering on bankruptcy, cancellation or loss of business deals further hits where it hurts most - in the pocketbook. Levi Strauss, Carlsberg, Eddie Bauer, J.Crew. Liz Claiborne, Apple Computer and other multinationals have left voluntarily. Even Pepsi Co, wit its bottling operation long a trump card in Slorc's public relations battle for credibility, finally cut its ties with Burma. Step two in the two-pronged strategy is to add real meaning to constructive engagement. Tough sanctions and boycotts can actually help the Asean policy by making a financially-weakened Slorc more dependent on its neighbours. But this power must be well used. Deals with Asian businesses shouldn't be sold cheap or for money alone. They should be available but expensive, and they should be sealed with commitments to demonstrable social and economic progress. The economic risk of the Asean policy is that; in practice, "constructive" really means "business as usual". If there is an available resource in Burma, someone will go after it. The Yadana projects is a reminder of that. When foreign firms persisted in dealing with apartheid South Africa, Leon Sullivan, an African American minister and director of General Motors, challenged their support of an immoral regime by proposing a set of investment principles. The goal of this well-respected "Sullivan Code" was to at least commit investors to hiring, pay, training. Promotion and community development practices that could help weaken apartheid from within. Similar principle can guide Asean's constructive engagement of Burma. But they should be of Asean creation, not Western imposition. Leaders of Asia's world-class firms must declare their values, individually and collectively, and act on them. One of Southeast Asia's prestigious universities or institutes now has a perfect opportunity to host a forum that tallies the region's indisputably respected business leaders to address this challenge. The goal would be noble - to commit their names and corporate reputations to a statement of principle guiding foreign investments in Burma. Asian businesses must set standards for operations management and conditions of employment consistent with the April 16 UNHCR resolution regarding human rights, democratic processes and minority populations. Asian businesses must take bold steps to invest in social development - perhaps arranging revenue set-asides to directly fund improved living standards such as housing, public services, education and health care. If Asian businesses do this, and hopefully more, Slorc will then understand the real terms for those business deals it so desperately wants and needs. Constructive engagement of Burma is a broader task than Asean governments can shoulder alone. Asia's businesses must contribute their share of leadership support. Now is the right time for all forces to act in concert. While the threat of losing investors to sanctions and boycotts puts Slorc on the run, Asean diplomacy and business-supported constructive engagement must actively guide it in the right running fast enough, those generals won't have time to shoot. John R. Schermerhorn, Jr is a member of the Faculty of Southeast Asian Studies at Ohio University. A visitor to Bangkok University, he has worked extensively in Asia as an educator, researcher and consultant. (BP) *************************************** XINHUA NEWS AGENCY : MYANMAR TO INVITE MORE FOREIGN FIRMS FOR MINING May 27, 1997 Arrangements are being made to invite more foreign companies for the third time for exploration of new mineral deposits in Myanmar, Minister for Mines Kyaw Min was quoted by today's New Light of Myanmar as saying. In a report to the Myanmar Foreign Investment Commission here on Monday, the minister disclosed that 14 blocks were granted to six foreign companies in 1994 for the first time and nine others to five companies in 1995 for the second time for exploration of gold, copper, lead, zinc and nickel in prospective areas in the country. Of the first 14 blocks, those in Banmauk, Thabeikkyin areas were most promising and could become major mines with five other areas such as Letpadaung, Kwinthonze, Popa, Banmauk and Pinlebu showing encouraging signs, he said. However, the results of the second nine blocks were unknown yet since they are being under survey, he added. In addition to cooperating with foreign companies for exploration of new mineral deposits, Myanmar also expanded the existing and already established mines of its state-owned enterprises in production of copper, gold, lead, zinc, silver, iron ore, steel and coal with foreign companies which include those from Canada, the United States and Australia respectively undertaking copper, gold and other mining in the country. According to the latest official statistics, foreign investment in Myanmar's mining sector amounted to 498 million US Dollars in 42 permitted projects at the end of March this year. Myanmar's gross domestic product of mines increased 6.5 percent in the 1996-97 fiscal year over the previous year's. The sector enjoyed an average annual production growth of 10.5 percent during the previous four-year short-term national economic plan (1992-93 to 1995-96). ************************************************ THE NATION: REPRESSIVE SLORC RULED BLAMED FOR BURMESE INFLUX May 28, 1997 By Yindee Lertcharoenchok BURMA'S repressive military rule and absence of democracy, rule of law and respect of human rights were the major causes of the influx of about one million illegal immigrants into Thailand, academics and scholars said yesterday. They said if Burma's living and economic conditions was as good as the Burmese junta has always claimed, the people would not leave the country in huge and incessant numbers as life in refuge countries can lead to hardship and uncertainty. The discussions were part of a three-day national seminar entitled: ''Policy Options for the Importation of Foreign Labour into Thailand: A Study of Interest Parties, Legal Issues, and the State Management System". The seminar, which ends today, has drawn some 400 academics, scholars, representatives from the government and private sectors, as well as social workers to discuss and brainstorm the findings of a research project on illegal immigrants and foreign labour. The seminar, organised by Mahidol University's Institute for Population and Social Research and Thailand Research Fund, will later submit its findings and recommendations to the government for use as a guideline in formulating a more viable national policy towards foreign labour, Kritaya Archavanitkul, the project director, said. The speakers urged Thailand to review and reform its ''underhanded" policy towards Burma, saying the current ''constructive engagement" strategy, which has also been adopted by the Asean grouping, was not well-balanced in its implementation. hey also criticised Asean's constructive engagement policy which aimed at only engaging the ruling Burmese State Law and Order Restoration Council (Slorc) in return for economic benefits, ignoring the public and pro-democracy movement. The policy has not helped bring about openness and democratisation, they said. From her joint studies and field interviews with Kritaya, Ponsook Kertsawang, from Mahidol University's Institute for Population and Social Research, concluded that the root cause of the massive outflow of Burmese was ''the government in power which has been instigating lasting conflicts, imposing widespread human rights abuses and all forms of compulsory taxation, fees, quotas and donations". She said Slorc has implemented a policy of Burmanisation (the assimilation of all people in the country), religious, language and social discrimination, as well as forcibly relocating people and forcibly conscripting them for use as labour, porters and soldiers. Slorc's economic policy relied heavily on its black market economy and although the regime has claimed to have adopted a free market economy, the country's ''dictatorial system" only supported widespread corruption and abuse, but given economic gains to the powers-that-be, she said. ''From the continuous exodus of the Burmese people, particularly those in the last year, we found that these people, especially the ethnic Shan and Karen, must be living under such intolerable conditions to make them become asylum seekers in Thailand, where they also face and risk mistreatment, instead of remaining in Burma," Ponsook said. Supang Jantawanit, from Chulalongkorn University's Asian Research Centre for Migration, warned that the presence of a huge number of Burmese immigrants here posed a big threat to Thailand's national security concerning crime, socio-politics, economics, health care and foreign policy. Somchai Hom-La-or, from Forum Asia, said Thailand's national policy towards Burma was ''underhanded" as it has been directed by economic lobbyists and various interest groups who want to exploit Burma's rich economic potential. Thailand has never really understood Slorc and thus has been playing ''the underdog" to the regime in expectation for a return of Burmese economic contracts, even to the extent of destroying Thailand's historical relations with various Burmese ethnic groups along the border, he said. He urged Thailand to balance its national policy by cultivating relations with Burmese pro-democracy politicians and the ethnic groups or it could face difficulties as he strongly believed that Slorc would be replaced in five to 10 years by a democratic government. (TN) *******************************************************