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BurmaNet News: August 31
************************** BurmaNet **************************
"Appropriate Information Technologies, Practical Strategies"
**************************************************************
BurmaNet News: Wednesday, August 31, 1994
QUOTES OF THE DAY:
"Using violence to destroy the pipeline would be our last
option, but in the end we would have no choice."
Nai Pe Thein Zea of the New Mon State Party
announcing that the Mons are prepared to destroy
the proposed Thai/Burma gas pipeline.
"You cannot even make a state funeral for Burma's last
President?"
Ne Win, possibly worried about his own upcoming
funeral, berating Lt Gen Khin Nyunt
for giving the late Maung Maung an ordinary
burial.
*************************************************************
Contents:
1: NATION: MON GUERILLAS VOW TO STOP THAI-BURMESE GAS PIPELINE
2: NATION: OFFSHORE GAS TO FLOW FROM PTT FIELD IN BURMA
3: NATION: SLOW PROGRESS IN REFUGEE TALKS
4: IRR: NE WIN UPSET
5: BT: SINGAPORE'S CORPORATE HEAVIES TEAM UP FOR MYANMAR VENTURE
6: IRR: TALL AND UGLY BUILDINGS IN BURMA
7: BKK POST: UNCERTAIN FUTURE FOR GEM TRADERS
8: NATION: LETTER TO THE EDITOR FROM MYINT THEIN
9: BURMANET: NGOS WORKING IN BURMA
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NATION: MON GUERILLA VOW TO STOP THAI-BURMESE GAS PIPELINE
JAMES FAHN
August 31, 1994
SANGHA BURI, Kanchanaburi
Mon guerillas fighting against the military regime ruling Burma will oppose
the construction of a Thai-Burma gas pipeline "by any means possible", a Mon
separatist leader announce yesterday.
"We will try to find a way to stop the pipeline" said Nai Pe Thein Zea. The
assistant in charge of foreign affairs for the MNSP. "Using violence to
destroy the pipeline would be our last option, but in the end we would have
no choice.
"Economic deals between the Slorc and foreign companies will encourage Slorc
to stay in power and buy more arms and equipment to kill and oppress the
people. We cannot allow that,"he said.
Although threats against the pipeline have been made by other Burmese
opposion groups, this is the first time Mon separatist have spoken against
the project, which will transport gas from Burma's Yedena field in the gulf
of Mataban into Thailand.
The threats follow a decision made by the NMSP's central committee to suspend
ceasefire negotiation with Slorc. The decision came because Slorc negotiators
refuse to discuss a political settlement, and offered the Mon too small and
are a to control, according to Pe Thein Zea.
"If they offered us a larger area, it is possible we would accept it. But
this would only be a first step; then we have to go into political issue," he
said.
Burmese and Thai officials have stated that the pipeline will come ashore
between the Burmese town of Ye and Tavoy then run through an area inhabited
largely by ethnic Mon and Karen, until it enters Thailand at Ban I-Tong in
Kanchanaburi province.
Construction will be overseen by a consortium of western oil firm-including
France's Total and the US Unocal-in Burma, and by the Petroleum Authority of
Thailand (PTT) in Thailand.
PTT official have said construction should be complete by 1998. Pe Thein Zea
said the MNSP's official position is that the gas is natural resource which
belonged to the Mon people. "Instead they (Slorc) will force slave labor on
the people without payment. This violates our fundamental human right, so we
will oppose the pipeline by any means.
"Pe Thein Zea said he believes construction of the pipeline had not started
yet. Slorc is using forced labor to complete construction of the Ye-Tavey
railway. This was in order to help secure the pipeline against attack, he
said. Burmese officials have started that the railway laborers were voluntary
workers or were being paid by the government. This claim, though, is
contradicted by reports from human rights groups and by the testimony of
Burmese refugees who have fled to Thailand.
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OFFSHORE GAS TO FLOW FROM PTT FIELD IN BURMA
Supply deal to Thailand struck after 2 years
PICHAYA CHANGSORN
THE NATION,AP-DJ
August 31, 1994
AFTER two year of talks, PTT has finally struck a deal to buy natural gas
from the government,which is
expected to supply 550 million cubic feet of natural gas of per day, starting
in 1998.
Ptt has agree to buy natural gas for production from its offshore field in
Burma at the price of around US$2.50 per million, a PTT source said.
The singing ceremony for the memorandum of the understanding will take place
on Sep 9 in Rangoon. Industry Minister Sanan and Burmese Energy Minister
Khin Maung Thein are expected to witness the signing ceremony.
The deal will be the first time for Thailand to enter such an agreement to
acquire natural gas from neighboring countries to fuel the country's growing
demand for energy. The MoU will stipulate the conditions for the natural gas
acquisition, under which PTT will buy gas under the long term commitment ,
from Burma's offshore Yadana gas field, which is being developed by a venture
between French base Total Co and Unocal Corp.
The natural gas will be carried by pipeline to a power plant in Ratchburi
Province operated by the state-run Electricity Generating Authority of
Thailand (Egat).
An executive from the PTTEP told the nation that both PTT and the Burmese
government are satisfied with the price. For Thailand, the price is cheaper
than that of the domestically-produced gas, since the agreed price already
includes the transportation cost to transmit the gas for 300 kilo
meters from the field to Thai-Burmese border.
PTT currently acquired the natural gas from Unocal and Total at about
$2-$2.30 per BTU. The actual price will be more expensive than $2.50, if the
transportation cost is included, the source explained.
The total official, JF Arrighi, business development manager for Thailand and
Burma, was quoted by AP-DJ as saying that the two sides agreed late Monday on
a starting price for a 30-years supply contract that is "close to 2.50".
According to AP-DJ Arrighi said, "The parties devised a very peculiar
formula, but asked us to be quiet about it pending the minister signing".
The price will fluctuate over the term of the contract due to changes in
thermal content of the natural gas and other factors, he said.
Total and Unocal expect to begin supplying 525 million cubic per day in
mid-1998 via pipeline to Thailand.
To make use of the gas, PTT plan to build a several hundred kilometers-long
pipeline to transport the gas from a Burma to Thailand's. Egat planing to
construct a gas and oil fired power plant in Ratchaburi province to produce
the electricity with the natural gas from the Burmese site
A natural gas pipeline with a capacity of 800 million cubic feet per day is
scheduled to be built from the gas field in the gulf of Mataban to the
western border of Thailand by the Petroleum Authority of Thailand
Exploration and production co (PTTEP) Plc, an exploration arm of the PTT.
The source in the PTTEP said the company will not have to raise the capital
to finance the pipeline construction for at least two years because the
investment cost in the start-up period was not very much.
*************************************************************
NATION: SLOW PROGRESS IN REFUGEE TALKS
August 31, 1994
DESPITE two days of negotiation between the Border Patrol Police (BOP), the
Mon National Relief Committee (MARC)and refugees talking shelter at New
Halockhani, the refugees still say they "do not dare" go back to Burma.
Phra Wangsa Pala, chair of the MNRC, has been allowed to enter the camp over
the last two days, despite a blockade which has kept out journalist,doctors
and the deliver of suppilies, including rice and medicine. Soldiers from the
Infantry Division were also supposed to enter the camp, but this was
cancelled because poor weather kept their helicopter from landing. However,
Phra Wangsa said there was some forward movement between the two sides and
that negotiations would continue.
*************************************************************
IRR: NE WIN UPSET
[from the forthcoming issue of the Burma Information Group's Irrawaddy
newsletter]
Inside stories has learned that former BSPP chairman Ne Win summoned Khin
Nyunt to his residence in Rangoon. Ne Win's reason to see his adopted son,
Lt Gen Khin Nyunt is the recent death of Dr Maung Maung who died of a heart
attack in July. Maung Maung, 69, a Western-educated intellectual, ruled for
one month as modern Burma's only civilian president in 1988.
Ne Win was upset as Maung Maung was given an ordinary funeral. The source
said, "Ne Win was upset because he wanted a state funeral and entombment for
Maung Maung's body. The source quoted Ne Win as saying, "You cannot even
make a state funeral for Burma's last president?" Khin Nyunt left without a
word, the source reported.
Why was Ne Win so upset? Is he worried about his funeral?
Maung Maung became President in August 1988 when his predecessor was ousted
by student-led pro-democracy demonstrations after only 17 days in office.
*************************************************************
BT: SINGAPORE'S CORPORATE HEAVIES TEAM UP FOR MYANMAR VENTURE
August 25
Smile, Myanmar here we come. It's not a campaign to
encourage the Myanmar people to smile. SMILE stands for
Singapore-Myanmar International Leisure Enterprise, a company
being set up by some of Singapore's heavy-weight listed and non-
listed companies to invest in tourism and leisure projects in
Myanmar.
Singapore Airlines, Straits Steamship land, Natsteel,
Intraco and Singapore Bus Service are among the listed companies
which would be shareholders of SMILE. Non-listed companies
include tour operator Ken Air and Representations International,
which is active in the region. Representations is owned by
businessman Tony Chew.
SMILE's foundation was mooted when the Singapore government
felt a coordinated strategy by the private sector would be more
effective in tackling investments in Myanmar's tourism and
leisure industry. SMILE, which is expected to start modestly in
terms of paid up capital, is working on a handful of proposals.
SIA is eyeing a joint venture to provide flights while subsidiary
SATS is keen on ground-handling services. Singapore Bus is
proposing a limousine service and Ken Air, inbound tours.
*************************************************************
IRR: TALL AND UGLY BUILDINGS IN BURMA
[from the forthcoming issue of the Irrawaddy]
Rangoon's downtown's Pa Pa Win and Gong cinemas were demolished recently.
"It's all flat," exclaimed one diplomat in Rangoon. Why has Slorc demolished
these buildings? The diplomat said Slorc would like to build hotels.
Singapore and Hong Kong companies have signed contracts to construct the
hotels.
Apparently, many tall buildings have emerged over night in Burma.
Like Thailand and other countries, Rangoon leaders have been trying to
modernise Rangoon but the questions is will it help the Burmese people or
push them to the brink?
The diplomat expressed his concern for Pagan, where thousands of ancient
pagodas have been built by Burmese kings. Rangoon leaders are eyeing Pagan
as a potential major tourist attraction. "We worry they will come to
demolish these pagodas to build up hotels" a Pagan resident said. In Pagan,
there has been little construction but Slorc has begun a road widening
project near Pagan. Slorc is actively promoting the tourist industry and has
designated 1996 as Visit Myanmar (Burma) year.
*************************************************************
BKK POST: UNCERTAIN FUTURE FOR GEM TRADERS
August 21
Gem traders who have seen their Cambodian ventures crash are
seeking their fortune in the North near the Burmese border. But
their future is uncertain because of conflict stemming from
unclear tax policies, as well as the usual risks of the trade.
SOMBAT RAKSAKUL reports.
"THIS is where my new-found treasure lies," said Sompong
Pholachand in Mae Sai District, a busy frontier town along Mae Sai
River, where he is settled.
Sompong, 46, started his new venture in Chiang Rai province
from zero after his gem business in Trat province went down the
drain.
With just 150 baht, Sompong launched his gem mining business
along the Thai-Burma border.
The closure of the Thai-Cambodian border last year in
compliance with United Nations' sanctions against the Khmer Rouge
changed Sompong's life dramatically.
The trader once owned three luxury cars, including a new BMW
and hundreds of rai of orchards in Chanthaburi province.
Today, he earns little from the gem trade and from burning
gemstones in Mae Sai. His family lives in a small, crowded, rented
room.
"Everything in life is uncertain and transient. I just had no
luck with gem mining in Pailin," he said.
Sompong, resigning himself to fate, said the gem business
could make one rich or poor overnight.
"More than 10,000 gem traders and miners in Chanthaburi and
Trat have met the same fate."
What caused the traders' downfall and exodus, he said, were
the border closure and lack of raw gemstones.
Sompong said two years of large-scale high-tech exploitation
of gem mines in Pailin province had an adverse impact on the
environment. One of the world's biggest ruby sources was wiped
out.
Just as the gem resource declined in Cambodia, a new ruby
source was found in Burma's Shan state, 590 km north of Rangoon.
The discovery gave rise to a gold rush.
Gems traders made a mass exodus to the northern provinces a
thousand kilometres away. Their new settlements ranged from Mae
Sot, Tak province, to Mae Sai, Chiang Rai province.
The gem source in Mong Hsu should be good for more than 50
years, according to Thawatchai Arnampong.
The former MP from Chanthaburi, who also took part in the
gems rush, said about 20 per cent of the ruby stones found were
valuable.
The precious raw materials in Mong Hsu also attracted opium
warlord Khun Sa, who is cleaning up his drug image by making it
appear that his income is from the gem trade.
He opened a workshop at his Ho Mong headquarters opposite Mae
Hong Son province, employing about 100 workers to cut raw
gemstones and make jewellery.
Khun Sa is also selling valuable raw materials to Thai
merchants.
Most raw gemstones are sold through Tachilek on the Burmese
side and Mae Sai by "soldiers of the ant army".
The ruby trade was very profitable to Khun Sa. His ruby
products found their way to markets abroad with the help of Thai
middlemen.
Mae Sai's gem market enjoys some advantages because of its
proximity to the Burmese border. However, the gem trade in the
district is on a small scale because of a lack of skilled workers.
Newcomers can easily start their businesses in the country's
northernmost town.
It does not take them long to learn the art of gem burning
and cutting. To boost their profits, they choose raw materials
accurately and buy cheap raw gemstones from traffickers.
Some traders venture across the border for cheap raw
gemstones in Tachilek. The products are later sold at much higher
prices in Mae Sai market, making at least tenfold profits after
processing.
Thailand's rivals in gem trade are India, Sri Lanka and
China.
Thailand has the edge in gem-cutting skill and in the
technique of raw gemstone burning, which has been passed on from
generation to generation.
Apart from regular incomes, some gem traders make a lot of
money from burning gemstones. Of the total 10,000 people in the
gem traders' community, only about 100 know the art of burning
gemstones.
Sompong said his main income came from burning raw gemstones.
"Thais are peerless in the art of burning raw gemstones and
gem-cutting," he said.
Gem traders from the eastern provinces have made the Mae Sai
market a noisy business area. The insignificant streetside shops
are now the centre of business.
Building construction has become a highly competitive
venture. An apartment now costs 2,500 to 3,000 baht a month to
rent.
Mae Sai, with abundant raw gemstones and skilled workers, has
become the country's gem trade centre. In fact, it could some day
rise to the international level.
High-budget businessmen including bankers and jewellery
traders from Chiang Rai and Chanthaburi are planning to invest 200
million baht to build a jewellery centre on 20-rai near the Mae
Sai border checkpoint, according to Thawatchai.
The centre, two kilometres from the border checkpoint, will
have cutting and polishing facilities manned by skilled labour to
improve the jewellery's quality.
Right now gemstones have to be sent from Mae Sai to be cut
and polished in Chanthaburi, hundreds of kilometres away, and then
returned for sale in Mae Sai.
Thawatchai said that with an influx of gem traders, Mae Sai
could some day rank among the world's biggest jewellery markets.
Because of the project, Chiang Rai, he said, would draw gem
and jewellery investors from Europe, North America, Hong Kong,
Malaysia and, especially, Japan.
When they came, Chiang Rai Deputy Governor Peera Manatas said,
there would be job opportunities for local people. About 150-300
million baht circulates in the Mae Sai ruby market daily.
The region is enjoying a reasonable increase in jobs and new
investments. However, foreign investors are deeply concerned about
Thailand's substandard tax system.
"The Mae Sai Customs office's value-added tax on gemstones
is unreasonably high," said Thawatchai Arnampong, recently elected
as chairman of the Mae Sai Jewellery Traders' Club.
"The Government should waive VAT on gems and jewellery to
attract provincial investment as well as to give the industry --
the country's second largest export -- a shot in the arm,"
Thawatchai said.
According to the Gems and Jewellery Traders' Association in
Bangkok, the country's gems exports this year are projected at 52
billion baht, 20 per cent more than last year.
But the trade is risky. The success of the business depends on
speculation and the global market. Unrealistic regulations could
ruin the prosperous and yet fragile Mae Sai gem market. The tax
collection and promotion policies are not clear. The authorities
have exploited the situation to their advantage.
Recent conflict nearly turned into rioting just four days
before the establishment of the gem traders' club.
Customs officers were trapped in the middle of hundreds of
traders while trying to confiscate two valuable ruby bags from a
Burmese trafficker. One of the ruby bags worth about 500,000 baht
was stolen.
Hostile feelings toward corrupt Customs officers could at
times get out of control.
"The substandard tax collection and occasions to make easy
money from the gem market in Mae Sai could lead some authorities
into irregular practices," a gem trader said.
"Some authorities confiscate our gemstones, demand bribes or
replace top-quality gemstones with lower-grade ones," said another
trader.
"The Customs officers were bolder in their corrupt practices
when we first arrived. But when our group got bigger and better
organised, we started resisting their corrupt practices," Sompong
said.
A Joint Public/Private Consultative Committee met late last
month to thrash out the tax problem.
Five Customs officers including a chief were transferred
following complaints against them. Thawatchai, who chaired the
club, said he had no role in the transfer.
*************************************************************
NATION: LETTER TO THE EDITOR FROM MYINT THEIN
August 30, 1994
PEN IS MIGHTIER
The Burmese democracy movement is getting stronger. I see many more letters
in the Nation by Burmese expressing their desire for freedom and democracy in
Burma. The Fourth Estate plays a very important role in a functioning
democracy and Slorc needs to be taught the first lession in democracy..
that.. "the pen is mightier than the sword".
The Burmese democracy movement is also getting stronger in America. Not only
do we have full and complete support from the White House and both houses of
Congress, we now have support from very influential Americans. Recently
George Soros, the legendary billionaire that last year broke the Bank of
England, started supporting, and funding, the Burmese democracy movement.
There is a reasonable chance that negitiations between Aung San Suu Kyi and
Slorc will produce an equitable political settlement acceptable to all
Burmese. If Slorc is smart they will cut a deal with Aung San Suu Kyi. Three
years from now, negotiatiating a political settlement will be more difficult
since complicated plans will have to be formulated on how to integrate the
resistance army into the combined Burma armed forces.
signed Myint Thein
Senior adviser to the
Burmese resistance
Dallas, US
***************************************************************
BURMANET: NGOS WORKING IN BURMA
The following list of NGOs working in Burma is not complete, but should
include the major ones (excluding UNICEF). This list does not include NGOs
doing cross-border work, legally or otherwise, from Thailand, Bangladesh or
India.
--------------------------------------------------------
ORGANIZATION YEAR # OF PROGRAM
STARTED EXPAT
STAFF
--------------------------------------------------------
Medicines sans 1993 5 Basic health services (Rangoon)
Frontiers (MSF- Malaria (Arakan State)
Holland)
Medicens du 1991 1 Surgical training
Monde
Adventist 1992 0 Leprosy hospital and rehab
Development hospital
and Relief
Agency
Family ? 0 Family planning supplies via
Planning Dept. of Health
International
Action 1994 5 Health/Sanitation/Water
International (Arakan and Chin States)
Contre
la Faim
Programs in 1992 0 Medical equipment
Appropriate
Health
Technology
Association 1993 0 Prostitute re-integration/AIDS
Francois- Information
Xavier Bagnoud
World Vision 1993 0 Integrated Health (4 townships)/
International AIDS
Salvation Army ? 0 Welfare activities
NGOs currently planning programs:
World Concern
NGOs who have made recent exploratory missions but have decided not to start
programs in the near future:
Save the Children Fund (UK)
Care Australia
Medicines Sans Frontieres (France)
NGOs currently undertaking exploratory missions:
Concern (Ireland)
Handicap International
Oxfam (UK)
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ABBREVIATIONS USED BY BURMANET:
AP: ASSOCIATED PRESS
AFP: AGENCE FRANCE PRESSE
AWSJ: ASIAN WALL STREET JOURNAL
BBC: BRITISH BROADCASTING CORPORATION
BI: BURMA ISSUES
BIG: BURMA INFORMATION GROUP
BT: BUSINESS TIMES (SINGAPORE)
BKK POST: THE BANGKOK POST
CPPSM: COMMITTEE FOR THE PUBLICITY OF THE PEOPLE'S STRUGGLE IN MONLAND
DA: DEPTHNEWS ASIA
FEER: FAR EAST ECONOMIC REVIEW
IRR: THE IRRAWADDY (BURMA INFORMATION GROUP)
JDW: JANE'S DEFENCE WEEKLY
NATION: THE NATION (DAILY NEWSPAPER, BANGKOK)
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