------------------------ BurmaNet ------------------------ "Appropriate Information Technologies, Practical Strategies" ---------------------------------------------------------- The BurmaNet News: August 4, 1997 Issue #788 Noted in Passing: It's not only the kyat that has collapsed, it's the entire scheme to liberalize the economy. - Rangoon-based analyst (see FEER: PAPER TIGER) HEADLINES: ========== FEER: PAPER TIGER BKK POST: EXILED PM BEGS EU TO PRESSURE RANGOON ABC NEWS: CHINA, BURMA IN DRUGS CAMPAIGN TALKS BKK POST: POPULAR WAY TO LAUNDER MONEY FROM DRUGS NIKKEI WEEKLY: U.S. COMPANY DROPS MYANMAR GOLD PROBE NEW LIGHT OF MYANMAR: SECRETARY-1 RECEIVES NATIONAL ALTSEAN-BURMA: SLORC TARGETS ASEAN ACTIVISTS ASIAWEEK: TESTS FOR THE ASEAN NINE ASIAWEEK: MAHATHIR VS. SOROS CFOB: URGENT ACTION APPEAL FOR CANADIAN INITIATIVE ON SANCTIONS DBSO(USA): CANDLELIGHT VIGIL FOR MEMORIES OF 8888 ANNOUNCEMENT: AUNG SAN SUU KYI CARDS FOR SALE ANNOUNCEMENT: NEW ENGLAND BURMA ROUNDTABLE / AUGUST 97 ---------------------------------------------------------------------------- --------- FEER: PAPER TIGER August 7, 1997 By Bertil Lintner in Bangkok In the early 1990s Burma seemed on the verge of an economic boom, but gross economic mismanagement and a vastly overvalued currency have brought the country's economy to its knees. In the welter of international reporting about weakening Asian currencies, few have paid much attention to the sickest currency of all. In just over a month Burma's kyat has plummeted on the black-market from 170 to the dollar to 250-300. If the rest of the world hasn't noticed, Burmese consumers have. They began to realize something was wrong when the supermarkets removed price stickers from their goods. "No one knows what to charge for imported items because no one knows what the Burmese currency is worth," says a Rangoon resident. Indeed, Burma is now facing its worst economic crisis since 1988-the year massive unrest brought the current military junta to power. Today's crisis is every bit as explosive. While the plunging kyat is its most obvious symptom, Burma's economic malady runs far deeper. At its heart is gross government mismanagement that has not only debased the currency but fuelled inflation, discouraged foreign investment and depleted reserves. Short of cash, the government has begun stealing from its citizens, denying them access either to gold or to their own foreign exchange accounts. It's a long way from the early 1990s, when Burma seemed on the verge of an economic boom. New buildings were springing up all over Rangoon, and there were more cars in the streets than ever before. But that mini-boom is exactly what caused the kyat's collapse, according to the International Monetary Fund and independent economic analysts. " There was no real growth, no production. Rangoon was little more than a Potemkin village," says Josef Silverstein, professor emeritus at Rutgers University, in the United States. Adds a Rangoon-based economic analyst: " The money came from remittances from workers overseas, and from a massive influx of drug money into the legal economy in the mid-1990s. Money came in-and went out again [much spent on expensive imports]. And now the party is over." The roots of the crisis stretch back to 1989, soon after the State Law and Order Restoration Council seized power. By selling a chunk of its Tokyo embassy compound for what a well-placed source in Rangoon estimates at $300 million, Slorc was able to buy itself a measure of stability and push forward with its economic agenda. " The Slorc appeared to be doing all the right things," says the source. " It liberalized the economy and welcomed foreign investment, and there was some degree of coordination of the government's activities. The government sustained the illusion of progress partly through the fiction of its official exchange rate. Set at six kyats to the dollar, it values the currency at 40-50 times the black-market rate. According to a highly critical IMF report issued in May, the government's use of the official rate to compile macroeconomic figures vastly distorts everything from imports and exports to domestic consumption and GDP. But things began to fall apart in April 1992, when Slorc Chairman Gen. Saw Maung (who died on July 24 this year) was replaced by Gen. Than Shwe. Eager for patronage, Than Shwe redistributed the six economic portfolios then held by Gen. David Abel, who remains minister of national planning and development. As a Rangoon-based Western diplomat puts it: " Economic warlords replaced the economic tsar." The government compounded its woes by creating a three-tier currency regime that all but discredited the already weak kyat. In February 1993 officials introduced foreign-exchange certificates that foreign visitors could swap for dollars, one-to-one, sparing them the need to buy kyats at the official rate. In December 1995 the government also allowed Burmese to hold FECs which they initially could trade at 100 kyats per dollar. As locals dumped kyat and bought FECS, the currency plunged. The FECs might not have mattered had the economy been improving. It was not. Massive problems continued with foreign investment, development and food production. Of the $3.2 billion of investment approved since the first reforms of 1989, only $1.2 billion had been invested by March 31, 1996, according to the IMF. About $900 million went into the oil and gas industry, much of it to drill dry holes onshore in the early 1990s. Other money went into hotels, of which there is now a glut. All in all, says the Rangoon-based analyst, Burma's direct investment " never translated into any significant development of the manufacturing sector." Or of agriculture. Attempts to restore rice exports to their pre-World War II glory have failed miserably. According to government figures, Burma exported $198 million worth of rice in fiscal 1994-95, but rice exports fell to $78 million the following year, and to $47 million in the year to March 31, 1997. As the IMF puts it, " problems related to procurement of crops, agricultural pricing and export policies" continue to hobble the sector. Tourism was no saviour either. The government designated 1996 " Visit Myanmar Year," hoping to draw in visitors. But political unrest and, the government claims, negative publicity abroad, kept foreigners away. By mid-1996 the government was short of cash. The Tokyo-embassy proceeds were depleted, and foreign investment wasn't coming in. Reserves shrank to less than the foreign-currency deposits they are supposed to cover (see chart). More money was printed to buy up dollars and FECs in circulation. " That was also when the government resorted to stealing people's money," says a Western diplomatic source in Rangoon. It did that by, first, luring personal savings. In June 1996 the government announced that bank deposits would start paying interest on foreign-exchange accounts for the first time and that it would abolish a 10% tax on withdrawals. " The outcome was a rush to the banks" to make deposits, says the Rangoon-based analyst. " But three weeks later, the government made it impossible for people to withdraw their savings. " There was no official ban on withdrawals, but by posting inquisitive plainclothes military intelligence officers at the Myanmar Foreign Trade Bank, the government effectively kept customers away. While most depositors can't get to their money (a privileged few have access), the government can-and has spent it freely. By last September, foreign-exchange reserves had fallen to 1.2 billion kyat, about half the level of claims on these assets. " Because of the lack of transparency and accurate market information in Burma, it took almost a year before the final collapse came," says the Rangoon-based analyst. Early this year, even more kyats were printed. And when the usual midyear slump in agricultural exports hit, the bubble finally burst. By July the FECs began to develop their own black-market rate, still. much higher than the official rate but below the price for actual dollars. When people rushed to buy, gold this summer, the government ordered gold shops to stop trading. The government's countermoves are coordinated by a newly formed monetary stabilization committee headed by intelligence chief, Lt.-Gen. Khin Nyunt. But its actions have proved totally counterproductive: Food prices have shot up as the kyat has become almost worthless. " This presents a real crisis for the government, as rising food prices may have an explosive impact," says David Steinberg, director of Asian Studies at Georgetown University who recently visited Burma. Faced with such a critical situation, the government has begun to dictate the kyat's unofficial exchange rate, hoping to restore it to a sustainable 170 to the dollar. " But that's the reintroduction of a command economy, which is not going to help solve Burma's problems," says the Rangoon-based analyst. " It's not only the kyat that has collapsed, it's the entire scheme to liberalize the economy." Those efforts, he says, represented Burma's most significant steps towards a real, market-based economy in years. " Now," he says, " this is the end of that chapter." ***************************************************************** BKK POST: EXILED PM BEGS EU TO PRESSURE RANGOON August 2, 1997 COPENHAGEN, AFP TIME IS OF ESSENCE FOR SOME 'CONCRETE ACTION' Burma's prime minister -in-exile, Sein Win, on Thursday urged the European Union to increase pressure on the Rangoon military junta to restore democracy by following the US example and imposing sanctions. Mr. Sein Win was addressing a press conference after six days of talks with his National Coalition Government of the Union of Burma to discuss strategy in the light of Burma's admission to the Association of Southeast Asian Nations (Asean). He stressed that "concrete action" was necessary in the form of EU sanctions to pressure the military junta into restoring democracy and Aung San Suu Kyi's National League for Democracy, which won a decisive victory in 1990 general elections that were never recognised. Mr. Sein Win continued: "[Action] is very much needed. The EU should not wait for the result of the US embargo, which has some effect. We need at least a declaration of support from the Europeans." The six days of talks brought together the exiled government's nine ministers -who live in exile in India, Thailand and the United States for the first time in two years. Four chief councillors also attended the meeting. Mr. Sein Win stated that the situation in Burma was "getting worse, economically and politically", and added: "We request humanitarian aid inside Burma and along the borders to help and assist the refugees." He also called on Burma's neighbours, particularly China and India, 'in the interests of regional security, to help the Burmese people find a political solution and bring about national reconciliation and stability. "We call on Japan, other aid donors and international financial institutions, to refrain from making the situation in Burma worse by giving aid or encouraging investments until democracy is restored." Burma, along with Laos, was admitted into Asean last week at the group's 30th annual meeting in Kuala Lumpur, despite objections from western nations critical of the Burmese junta's human rights record and suppression of democracy. Mr. Sein Win called on Asean members "to exercise their responsibility now that they have accepted Burma as a member, to help bring about political change in Burma". He called for talks between the National League for Democracy, "the ethnic leaders of Burma", and the National Coalition Government of the Union of Burma. The Copenhagen talks were organised by the Danish Burma Committee and financed with the help of 500,000 kroner (2.2 million baht) from the Danish foreign ministry. As soon as they ended, all the ministers, except Mr. Sein Win, left Denmark for security reasons. ***************************************************************** ABC NEWS: CHINA, BURMA IN DRUGS CAMPAIGN TALKS July 31, 1997(Australian Broadcasting Corporation) abridged Burma's official narcotics fighter has flown to Beijing for drug talks, just two weeks after similar bilateral talks in Rangoon. The Xinhua news agency says the secretary of the Burmese junta's central committee for drug abuse control, Soe Win, will hold meetings with senior Government officials in Beijing and will also travel to Nanjing. In mid-July, China's Deputy Minister for Public Security, Bai Jingfu, held talks with Mr. Soe Win on co-ordinating law enforcement and supply reduction of heroin. ***************************************************************** BKK POST: POPULAR WAY TO LAUNDER MONEY FROM DRUGS AND ILLEGAL DEALS August 3, 1997 by Nauvarat Suksamran and Chakrit Waewkraihong EXPERT: IMPOSSIBLE TO BUILD ECONOMIC HUB Investing in businesses including a casino in Koh Kong province of Cambodia, the Golden Triangle and Kawthaung of Burma is known as a popular method for many Thai businessmen to launder money from illegal activities including the drug trade. Director of the Northern Narcotics Suppression Centre (NNSC) Banpot Piamdee accepted that casinos have been operated by people involved in the drug trade partly to launder dirty money. To push Chiang Rai to become an economic hub under the Economic Quadrangle Development Project, the government aimed to attract investors to this northern province and the Golden Triangle area. However, a leading politician who asked for anonymity said it was impossible to improve the image of the Golden Triangle make the area free from drugs or turn it into an international investment hub. Although many drug dealers who were previously backed by drug kingpin Khun Sa had turned to other businesses including jewellery trade, the Golden Triangle has remained one of the largest sources of narcotics in this region. At present, the area is also known as a major production base of amphetamine, especially the orange-coloured one. Large amphetamine production units in the area are owned by the Red Wa, a Burmese rebel group. One of the most profitable businesses in the area besides the drug trade is the casino. Some small casinos are in Tachilek of Burma and Chiang Saen district of Chiang Rai and a large one was recently set up in Chiang Saen. Many politicians, businessmen and northern influential figures are regular customers of these casinos. Some of them are involved in illegal businesses including the drug trade and smuggling and are believed to launder their dirty money there. Kawthaung of Burma opposite Ranong is known as another major drug production base and a gateway to smuggle heroin out of the country. Amphetamine is widely produced there and delivered to Thailand but it is hard to locate the production plants which are frequently moved from one area to another. Money from the drug trade and other illegal activities is believed to be laundered through several businesses there including the casino. A Thai owned casino has been operating there for a few years. ------------------------------------------ excerpts from a related story: NETWORK OF CASINOS GROWING ON 3 FRONTS (Bkk Post, August 3, 1997) Thai investors are moving to create a network of casinos in areas bordering the South, the North, and the East of Thailand with the aim of attracting local and foreign gamblers from casinos in nearby countries. The three-point network comprises a casino in Kawthaung (Victoria Point) in Burma opposite Ranong province which has been in service for over three years, a casino in the Golden Triangle opposite Chiang Saen district of Chiang Rai, another one in Burma's Tachilek town opposite Mae Sai district of Chiang Rai, and a new one in Koh Kong, Cambodia. [T]he casino opposite Mae Sai district of Chiang Rai has been operating for five years by a joint venture of Thai investors, subordinates of former drug kingpin Khun Sa, and people from Red Wa and Kokang minorities. This place usually serves politicians and businessmen with a turnover of hundreds of millions of baht a year and up to a billion baht annually in some years. The other casino on Kawthaung opposite the southern province of Ranong was reportedly invested by Khun Sa and the State Law and Order Restoration Council. It is in a five star hotel and is as big as -and copied from those in Kowloon, Hong Kong. ******************************************************* NIKKEI WEEKLY: U.S. COMPANY DROPS MYANMAR GOLD PROBE July/August 1997 (sender did not give date) by Katsuhiko Meshino ( staff writer ) Bangkok- Newmont Mineral Exploration B.V., a major U.S natural resources-development company, has decided to pull out of its gold-exploration project in northern Myanmar. Newmont retreat marks the first withdrawal from Myanmar by a U.S. company since U.S. authorities imposed stronger economic sanctions in April. Analysts said the motivating force behind Newmont's move was mounting U.S. public opposition to alleged human-rights abuses committed by Myanmar's ruling State Law and Order Restoration Council ( SLORC ). Newmont's move will have an impact on Myanmar investments by developed countries. Analysts said Newmont's withdrawal is likely to come as a major blow to the military junta. The company's start into Myanmar was marked by the signing of a contract with SLORC officials in July of last year. The project involved investing up to $ 154 million in the country to mine and develop gold deposits in the Kyaukpahto region. Company officials said Newmont has already invested $ 40 million in the project. Technical and financial problems linked with the company's recent merger with Santa Fe Pacific Gold Corp. were cited as the official reason behind the Myanmar pullout. However, the junta has raised concern about the role U.S. public opinion had on Newmont's decision. "We strongly suspect that political considerations were behind the move," a Myanmar official said. The U.S. administration continues to strongly criticize business ventures to Myanmar. Newmont is not the only company with large-scale plans in Myanmar to be confronted by the harsh glare of U.S. public sentiment. Oil giants Unocal Corp. and Texaco Inc. are involved in offshore natural-gas projects in Myanmar. Texaco executives have started talks with Malaysia's state-run oil company, Petroliam Nasional Bhd (Petronas), about the sale of its stake in the Yetagun project. PepsiCo Inc., which once dominated the Myanmar soft-drink market, left the country in March. Public pressure forced the company to pull out of Myanma on all fronts in March. Compared with consumer-product companies like PepsiCo, natural- resource developers are not as exposed to public opinion. Analysts said more companies are being forced to consider public opinion because of growing opposition at a grassroots level in the U.S. ******************************************************** NEW LIGHT OF MYANMAR: SECRETARY-1 RECEIVES NATIONAL RACE LEADER OF KACHIN STATE SPECIAL REGION 2 August 1, 1997 YANGON, 31 July -Chairman of Work Committee for Development of Border Areas and National Races Secretary-1 of the State Law and Order Restoration Council Lt-Gen Khin Nyunt received national race leader of Kachin State Special Region 2 U Zaw Hmaing and party at Tatmadaw Guest House on Inya Road, this afternoon. Present also were U Lamon Tu Jai, U Sai Phone, Dr La Ja, Dr Tu Ja, peace negotiators U Khun Myat, U Zabwe Jung and U La Wom. They discussed development of transport, education, health and other sectors in the region. ************************************************ ALTSEAN-BURMA: SLORC TARGETS ASEAN ACTIVISTS August 3, 1997 From: altsean@ksc.th.com A L T S E A N - B U R M A ALTERNATIVE ASEAN NETWORK ON BURMA *tel: [662] 275 1811/693 4515 *fax: [662] 693 4515 *e-mail: altsean@ksc.th.com __________________________________________________________________ On July 23, a representative of the Slorc Embassy in Manila met with a Philippines trade unionist in attempt to undermine support for the Federation on Trade Unions Burma (FTUB). U Than Tun, a counselor with the Embassy in Manila, made several calls to the trade unionist to ask for a meeting. The trade unionist from the BAGONG KAPISANAN NG MGA MANGGAGAWA SA PNR-ITF (Railwaymen's Union of the Philippines) finally agreed and met with U Than Tun at a coffee-shop. During the meeting, U Than Tun displayed photos of activists connected to the FTUB and asked the trade union representative not to assist FTUB because it was an "illegitimate organization". The diplomat revealed that he had information about the organization's activities and knew of plans to establish an FTUB office in Manila. The trade unionist responded that his organization supported workers rights and were acting in consonance with the ITF since it belonged to that organization. This meeting has resulted in a proposal to organize a protest meeting between ITF affiliates and U Than Tun. It would appear that the Slorc has decided to attempt dialogue with Asean activists while neglecting dialogue with the democracy movement in Burma. Of course, the objective of such efforts is to undermine support by Asean-based activists for Burma's democracy movement. It is a heartening sign that Asean-based activism on Burma continues to be a threat to the Slorc despite membership in Asean. Please keep us informed of any similar approaches by Slorc personnel and we will update you as developments occur. Debbie Stothard ********************************************************** ASIAWEEK: TESTS FOR THE ASEAN NINE August 8, 1997 As Myanmar and Laos join the group, it is rethinking its approach to diplomacy and economic development. The poorest members are a special cause for concern. BY TODD CROWELL AND ROGER MITTON KUALA LUMPUR The lavish new Sunway Lagoon Resort Hotel in suburban Kuala Lumpur is a sprawling palace with a gaudy, pseudo-Egyptian decor and echoes of ancient Rome and Disneyland. Its eclecticism made it a fitting venue last week for the annual meeting of ASEAN's foreign ministers. Adding to the sense of make-believe were flags proudly displaying the group's new logo with ten rice stalks, representing all Southeast Asia's nations bound closely together. Except that the association, for the moment at least, is not that cohesive and doesn't even add up to ten. What would have been the first meeting of the long-heralded ASEAN Ten turned into a conclave of the ASEAN Nine plus one non-member. The odd man out was, of course, Cambodia. On July 5, that country's Co-Prime Minister Hun Sen dispatched his partner, Norodom Ranariddh, in a violent putsch. That meant ASEAN had to make a tough political decision and quickly. On July 10, its foreign ministers deliberated behind closed doors in Kuala Lumpur. Vietnam pushed to admit Cambodia on schedule while Indonesia led the opponents of that notion. A's usual, the view of ASEAN's biggest member prevailed: Cambodia's entry was postponed. But probably not for long. ASEAN opinion has always been shaped by pragmatic considerations. In Phnom Penh, Hun Sen is in and Ranariddh out. In any case, some members privately believe the new Cambodian setup may be better since the previous government was, as one official put it, "hopelessly inadequate." The next step for the grouping is to determine if the willful Hun Sen can be trusted when he says he welcomes ASEAN's assistance in resolving the crisis. If so, then finessing a relatively quick entry for Cambodia would become easier. Insiders are betting that admission will occur in time for ASEAN's 30-year commemorative summit in December, hosted by Malaysian Prime Minister Mahathir Mohamad. That the group wants Cambodia in as soon as possible is beyond doubt. After all, several members have committed huge investments in the country. Malaysia is one of the largest with $2 billion. That gives Hun Sen leverage. He can say: deal with me or your investments go down the tube. Japan, an ASEAN dialogue partner, is by far the largest aid donor to Cambodia. Says a senior Japanese official: "Our policy is realistic. We're committed to Cambodia, our interests are at stake. So our aid will continue. We don't condone or reward Hun Sen, but we have to deal with the people in charge." For ASEAN, expansion even to nine members has brought some loss of internal cohesion and a weakening of the group's famed penchant for consensual politics. "The original core of five non-communist nations [Indonesia, Malaysia, the Philippines, Singapore and Thailand] had common aims and gave priority to economic development and non-interference," says Mak Joon Num, regional strategist at the Malaysian Institute of Maritime Affairs. "That meant consensus could be achieved, though it was a very slow process even then." Brunei's admission in 1984 changed little. But Vietnam's entry in 1995 was a watershed. The association of generally free-market economies now included a Marxist state, one with long-standing antagonisms with China. Of the two newest members, tiny Laos is likely to be absorbed with few difficulties. But Myanmar's induction brings a range of problems, not least constant criticism from Western capitals that the regional partners are not doing enough to tame the country's ruling junta. But ever since Yangon's admission was agreed upon in 1995, the developed democracies tended to do little more than protest loudly, largely for home consumption. Last week, for example, Britain sent only its No. 2 diplomat to the induction ceremony. But privately, most Western nations are pleased to see Myanmar inside an essentially free-market, Western-oriented grouping. Said a senior Japanese official: "What's the alternative? You want to isolate Myanmar? Drive it into the arms of the Chinese?" Western foreign ministers attending made ritual protests about Myanmar's entry but it was a done deal by the time they arrived for the second and third parts of the Kuala Lumpur pow-wow: the ASEAN Regional Forum on security and the meeting with dialogue partners. Now that Myanmar is inside ASEAN, pressure is likely to build on Yangon's military leaders to tone down their repressive policies. Says analyst Mak: "It makes sense to get Myanmar into a group that has economic stability and progress as its main goal. The middle class will build up, the values will change and institutions will evolve." Adds Bunn Nagara of the Kuala Lumpur-based Geopolicy Research consultancy: "Being in ASEAN should help moderate the Yangon regime and may lead to it dealing with the opposition." Malaysian Deputy PM Anwar Ibrahim, who recently advocated a change in ASEAN policy from "constructive engagement" to "constructive intervention," told Asiaweek his new line was meant to apply to Myanmar as well as Cambodia. He has urged Yangon's military chief to have an open dialogue with democracy leader Aung San Suu Kyi, whose party won the 1990 election but was prevented from taking office by the army. Says Anwar: "I don't think they should [have done] that. This is a sentiment shared by many ASEAN leaders." Some observers believe ASEAN started to "intervene" when it sent a delegation to mediate the crisis in Phnom Penh. "It's basically how you define the term." says Mak. "If you go in and persuade people and they accept it, then that's not interference but persuasion." Maybe, but ASEAN certainly appeared to be taking a different tack with Cambodia than with Myanmar, raising talk of a double standard. Says former Malaysian opposition MP Fan Yew Teng: "The decision to postpone Cambodia's membership but to admit Myanmar confirms ASEAN's hypocrisy." Rebuttals of that view are again based on realpolitik: you deal with the government in power - and the junta has held sway in Myanmar for nearly nine years. But in the immediate aftermath of the July coup in Phnom Penh, there were legitimate doubts about who was in charge and what form of government remained. If events continue to show Hun Sen firmly in control, goes the mainstream thinking in ASEAN, a Cambodia with him at the helm will be admitted. But will members stay united? ASEAN governments may insist that internal political and economic differences will not be allowed to produce serious rifts, but that is already happening and may worsen. One fear is that the newer members, led by Vietnam, may constitute a subgroup of ',slow-track" nations, as distinct from the original core members, headed by Indonesia. "That is already happening with the tariff-reduction provisions, whereby new members are getting long deadline extensions," says Mak. Indeed, Vietnam, Myanmar and Laos are going to need a lot of help if their economies are to develop properly. But these are problems that come with expansion. In a larger context, it is significant that ASEAN has taken the initiative to mediate in Cambodia. The move underscores the enlarged stature the association has already achieved. So do certain less dramatic accomplishments - such as ASEAN's central role in keeping once-volatile Southeast Asia largely peaceful for two decades. Also noteworthy is the fact that all the world's great powers China, Japan, the U.S., Russia, India and the European Union - came to Kuala Lumpur last week. Perhaps that is the best single pointer to where ASEAN is today. ******************************************************* ASIAWEEK: MAHATHIR VS. SOROS August 8, 1997 By Roger Mitton/Kuala Lumpur A plan to weaken the region's currencies? Was there a conspiracy? The Association of Southeast Asian Nations certainly felt under 1919 siege. Hence the "serious concerns over well-coordinated efforts to destabilize ASEAN currencies for self-serving purposes" expressed in a joint communique issued by the group's foreign ministers in Kuala Lumpur. It was an unusual comment from primarily a political group - and a measure of how frazzled ASEAN governments are by the regional currency turmoil. Malaysian Prime Minister Mahathir Mohamad thought he knew who was behind it all: George Soros, the world's premier currency trader. Dr. M said Soros was using the wealth under his control to punish ASEAN for welcoming Myanmar. "There is definite evidence that we cannot disclose," said the PM. "There is no doubt he did it." Soros has never hidden his unhappiness with the Yangon government. His philanthropic Open Society Institute, which promotes democracy worldwide, has been critical of Myanmar's ruling State Law and Order Restoration Council (SLORC) for human rights abuses against minorities and political opponents. But Soros insists he wasn't involved in the currency attacks. Except for a single trade in mid-June, he said his funds had not sold ringgit or baht in the past two months. Asia based financial experts agreed Soros's role was overblown - though not non-existent. "He was just one of many players in the market, albeit a bigger player than most," says Desmond Supple of BZW Securities in Singapore. If he did speculate, Soros was hardly alone. In the days following the ASEAN conference, Mahathir was even critical of Malaysians who profited by "selling and buying the ringgit for quick gains." There is probably bad blood between Soros and Mahathir that goes back to one of the currency trader's triumphs: his successful attempt to drive down the value of the British pound in 1992. Betting against Soros at the time: Bank Negara, Malaysia's central bank. In doing so, the bank reportedly rang up nearly $6 billion in losses. Ironically, Mahathir, 71, and his new antagonist have much in common. Both have strong opinions about how to improve the human condition and are fearlessly outspoken. One grew up in a village in northern Malaysia and became a doctor en route to the premiership. The other, a refugee from the Nazis, fled to the U.S. and made millions on Wall Street. Both are ambitious and watch markets carefully one on behalf of his business, the other on behalf of his nation. ******************************************************** CFOB: URGENT ACTION APPEAL FOR CANADIAN INITIATIVE ON SANCTIONS August 1, 1997 from cfob@web.net Canadian Friends of Burma is appealing to all Free Burma activists inside and outside Canada to write a letter of support to Foreign Affairs Minister Axworthy in his push for sanctions and urge the Minister to implement full economic sanctions on Burma. Minister Axworthy stated at the ASEAN Regional Forum that upon his return to Canada he would recommend to cabinet that sanctions be imposed on Burma. He has not specified what kind of sanctions but said it would affect trade, investment and financing. It is imperative that Minister Axworthy know of the widespread support from Canadians and Burma activists abroad for his initiative. Please write a letter to him, endorsing his move and urging that full economic sanctions be imposed on Burma. Please write to: Foreign Affairs Minister Lloyd Axworthy Lester B. Pearson Building 125 Sussex Drive, Ottawa, ON K1A 0G2, Canada or fax your letter to his office at 613-947-4442. Thank you in advance for taking action. Canadian Friends of Burma cfob@web.net Ottawa ************************************************************* DBSO(USA): CANDLELIGHT VIGIL FOR MEMORIES OF 8888 August 1, 1997 From: Dbsousa@aol.com Commemoration of the 9th Anniversary of 8.8.88 "Join us in protest against the SLORC rule in Burma" Dear Friends of Burma: On August 8, 1997, people of Burma of near and far will recall the painful memories of brutal massacres in our homeland nine years ago. In 1988, millions of people took to the streets and demanded the restoration of democracy in the land of repression. Many thousands sacrificed their lives in the peaceful movement. The largest show of people's power turned out on the auspicious day of 8.8.88 (August 8, 1988) and on the same day, the government's brutal crackdown took hundreds of lives. Young people and students led these protests and many of them paid with their lives. Some of them have been arrested and detained since then. Schools were closed for the next three years, shutting out any educational opportunities for Burma's future generation. Since then, the democratic movement has sustained and continued the non-violent activities inside and outside of Burma. Today, there are thousands of political prisoners suffering in the hands of brutal dictators. Among them are students and young activists. Many are dying under hellish prison conditions while some have gone through severe tortures. The list includes Min Ko Naing, chairman of the All Burma Federation of Student Unions (ABSFU) that has played a major role in the democratic uprising. Not only are the activist students under severe restrictions, but all the schools of higher learning have been closed for months. Thus, Burma is deprived of her potentials of young educated generation. In the light of these circumstances, we, the Democratic Burmese Students Organization (USA) will hold a candlelight vigil in front of the SLORC Ambassador's residence in Washington D.C., to commemorate the 9th anniversary of 8-8-88 massacre. Please join us to show your support for the democratic cause in Burma. Date: August 8, 1997 (Friday) Place: 2223 R Street, NW, Washington, DC 20008 Time: 7:30 - 10:00 p.m. Direction: Dupont Circle Stop (by Red Line Metro) Contact: Information Committee, DBSO (USA) - East Coast (301) 424-6009 / (301) 468-5754 ************************************************************ ANNOUNCEMENT: AUNG SAN SUU KYI CARDS FOR SALE August 1, 1997 From: Seth Eckstein Attention fellow Free Burma compassionates. The Syllavethy Gallery, in conjuction with Philips & Aris Inc., are selling full color cards beautifully (if I may offer my opinion) depicting the heroic Daw Aung San Suu Kyi by the internationally renowned artist, Chen Yan Ning. The cards sell at 1 English pound per card or 4.5 pounds for 5 (postage NOT included). For Burma help groups, Syllavethy Gallery is selling the cards at .50 pounds per card (postage IS included). All profits go to an Aung San Suu Kyi fund which is used in hopes of alleviating the Burma situation. On the back of each card is a brief description of Aung San Suu Kyi and her quest for democracy. For more ordering information or purchases, the address is: Syllavethy Gallery Montgarrie, Alford Aberdeenshire, Scotland AB33 8AQ Tel: 44 19755 62273 Fax: 44 19755 63173 If you would like to see a low resolution scanned image of the card, please feel free to e-mail me at: ryecatcher@worldnet.att.net Best regards, --Seth Eckstein USA ************************************************************* ANNOUNCEMENT: NEW ENGLAND BURMA ROUNDTABLE / AUGUST 97 August 1, 1997 From: sbillenness@frdc.com 1. Vigil and Rally, August 8, 6.30pm on Boston Common 2. Next Burma Roundtable - Tuesday, August 12 3. News Update: Japan Follows the Lead of the European Commission by Taking the Massachusetts Burma Law to the World Trade Organization ---------------------------------------------------------------------------- 1. Vigil and Rally, August 8, 6:30pm August 8, 1997 Vigil to commemorate those who were killed in the 8-8-88 massacre in Burma. The vigil will begin at 6:30pm on the Boston Common close to the steps leading to the State House. Invited speakers include state representative Byron Rushing, Quincy city counselor Paul Harold, and a member of the democratically elected, National Coalition Government of the Union of Burma (NCGUB). If you get lost, just follow the Burmese music. For more details contact Ko Lay at 617-388-0038. 2. August Roundtable Meeting: Tuesday, August 12, 6:30pm Unitarian Universalist Service Committee, 130 Prospect Street, Cambridge. Take the Redline to Central Square T stop, or the Number 1 bus. The UUSC office is on the corner of Prospect and Harvard streets, a 2-block walk from Central Square. Use the buzzer outside the front door to gain entry into the building; take the elevator to the first floor. We will show a videotape of a British TV documentary's undercover story in State Law and Order Restoration Council (SLORC) controlled factories. Included is an interview with a SLORC general in which he admits to SLORC control of apparel factories and gives economic reasons why foreign investors would choose the military-run option. Katie Redford of Earthrights International is also interviewed. Following the original broadcast of the show, the Burton Group made the decision to stop buying clothes made in Burmese factories. 3. News Update: Japan Follows the Lead of the European Commission by Taking the Massachusetts Burma Law to the World Trade Organization The European Commission and Japan are moving forward with their formal complaint at the World Trade Organization (WTO) against the Massachusetts Burma selective purchasing law. On July 22, the European Union and Japan conducted their first "formal consultations" with the United States under the WTO dispute settlement procedures. Under WTO rules, an aggrieved party must undertake three rounds of formal consultations before requesting that a dispute panel be convened. Modeled after similar South Africa statutes, the Massachusetts Burma selective purchasing effectively bars the Massachusetts state government from buying goods or services from companies that do business in Burma. In Massachusetts, we have generated scores of letters to our elected representatives and officials. This is already encouraging them to stand firm and defend the Burma law. Attorney General Scott Harshbarger told Reuters of his firm support for the Massachusetts Burma law. In Washington, 9 members of the Massachusetts House delegation wrote to US Trade Representative (USTR) Charlene Barshefsky to urge her to strongly oppose the pressure from the European Commission and Japan. A coalition of human rights, environmental, labor and consumer organizations plan to send a similar letter. This pressure is starting to work USTR spokesman, Jay Ziegler, recently criticized the European Union, stating that by taking the Massachusetts Burma law to the World Trade Organization, the European Union was undermining its own principled stand against the Burmese military junta. *************************************************************