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Burma News, Aug. 11





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Burma News: August 11, 1994
Contents:

1 AUTHORITIES SEAL ROAD TO MON CAMP
2 ALL BETS OFF FOR THE KAREN
3 POLITICAL UNCERTAINTIES KEEP BURMA WEAK ECONOMICALLY

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AUTHORITIES SEAL ROAD TO MON CAMP
More than 6,000 ethnic Mon refugees were sealed off from the outside world
yesterday in an attempt by Thai authorities to force them back to Burma.  

A path leading to the refugee camp, about 20 kilometers from Sangkhla Buri
township in Kanchanaburi Province has been blocked.
The 6,072 Mon refugees--1,1209 women, 1,013 men, 1,859 boys and 1,991 girls,
fled to Sangkhla Buri on July 22 after their Halockhani camp was torched by
Burmese troops.

A combined force of Border Patrol Police, provincial police, defence
volunteers and rangers began blocking the muddy path leading to the temporary
campsite yesterday.

Vehicles and unauthorized people have been barred from travelling to the
camp.  Vehicles have used the path in the past to supply the refugees with
food.

Officials with the Mon National Relief Committee at Sangkhla Buri said they
were very concerned about the living conditions of the refugees.

Sick people had been barred from seeking medical treatment at Sangkhlaburi
Christian Hospital and relief workers are not allowed to visit the camp, said
representatives of the committee.

Thai authorities require that the Mons return to Halockhani before reopening
the path so food supplies can get through.  Should they return to Burma, sick
people will be allowed to seek medical attention at a hospital inside
Thailand.

The Mons have refused to return to Halockhani claiming the area is still too
dangerous.

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>From the Bangkok Post's "Inside Politics" column.

ALL BETS OFF FOR THE KAREN


"No more two-faced policy on Burma!"  

That seems to be the
message given to all senior security officers posted along the Thai-Burmese
border.  The border has been plagued by terrorism from Karen rebels, who have
been fighting for an independent state for five decades.
It is no secret that the Thai military has pursued a two-faced policy in
dealing with security along the border--giving military support to the
minority rebels at the same time as trying to foster ties with the Burmese
government.

One insider who once held a key military post in Tak's Mae Sot district
admitted frankly that when he was in charge of the area he was told to
secretly assist Karen rebels in its fight with Burmese troops.  He even
recalled having a chance to meet Gen. Bo Mya, president of the Karen National
Union.
"Everybody knows we supported the Karen rebels at the time because we
considered that it would serve our national interest," said the retired
military officer.

"No more of that now," assured one senior army officer, who is now posted in
the border town's district.  "Let's forget the past and start anew."  

"The situation has changed a lot and bilateral relations between Thailand and
Burma have gradually improved since the new policy has been introduced," said
the officer.

He added that tough action would be taken against security officers who do
not follow the policy.

Asked how seriously the government would pursue the policy, he said that
leading members of the National Security Council, including its Chief, Gen
Charan Kullavaniijaya, had his deputy Kachadpai Burusphat, had personally
visited Mae Sot recently to brief security officers of the Third Army's Task
Force 34.

"Before, they never came here, they just went to the (Third) army, but this
time, they came here and briefed us on why we have to be strict with the new
policy and how the national interest is at stake," he recalled.

Asked whether security officers had heeded the NSC chiefs, he said he doubted
that any senior security officers, including district chiefs, would turn up
at the Karen's annual gathering held at their base along the border.


"We're really getting tough with them (Karen rebels) and they know that our
policy has dramatically changed," he said.

Another insider with close connection to Karen rebels admitted that the
policy to get tough with all minority rebels, initiated by Mr. Suvicha
Hiranyapruek, who is reportedly close to senior members of Burma's SLORC has
caused them much difficulty.

Recent seizures of a large amount of smuggled war weapons destined for Karen
rebels could be interpreted as proof of Thailand's sincerity.

"I'm quite hopeful that the new policy will strengthen understanding between
our two nations," he said.
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POLITICAL UNCERTAINTIES KEEP BURMA WEAK ECONOMICALLY

Political and legislative uncertainty keeps Burma lagging behind its
neighbours in terms of economic activity and investment volume, according to
the manager of Thai Military Bank's Rangoon office.

Promsake Yen-Ura said that after a year in the country, the bank's operations
were stagnating, with very little growth to boast about.

This is as much doe to the sluggishness of the economy as it is to the
complications of its politics and the rigidity of its investment laws.  In
this atmosphere, foreign investors are extremely cautious, he said.

Most of his customers file request for loans at the bank's head office in
Bangkok, and when the applications are approved his office handles related
procedures in Burma.  

His office forwards loan applications of the few retail customers it has in
the country, including some Korean investors, to headquarters for approval. 
These cases are considered high-risk because investment laws in Burma lack
clarity.

He said foreign banks are not allowed to open full branches under Burma's
present financial law.  Only representative offices have been allowed so far.

The Thai banks which are licensed to open representative offices in Burma re
Thai Military Bank and Siam City Bank.  Thai Farmers Bank, Krung Thai Bank
and Bank of Ayudhaya have received authorization to open offices but have not
yet acted.

Mr. Promsake said a representative office is sufficient to match costs and
transaction volume.  

Competition in Burma's financial market is not strong.  Among the 13 banks
there, only DBS Bank, United Overseas Bank of Singapore and the two Thai
banks are foreign-based.  Five are state owned.

The Burmese govt. is believed to be in favor of liberalizing this sector
because of the threat of the far more advanced technology and equipment of
foreign banks, Mr. Promsake said.

He added that the sluggishness of Burma's economy stems in part from the very
large difference between the official foreign exchange rate and the parallel
black market rate.

The discrepancies sow confusion among investors, and the situation is further
complicated by the fact that the kyat, the Burmese currency, is not accepted
on world markets.