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BurmaNet News Aug 8 1995



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The BurmaNet News: August 8, 1995


SLORC OPENS A DOOR BUT THE THICK WALL REMAINS IN PLACE 
THAILAND'S POLICY ON BURMA MUST BE GIVEN NEW DIRECTION 
BURMESE TROOPS AND KARENNI FIGHTERS SAID TO HAVE CLASHED 
KAREN REFUSING RESETTLEMENT FACE ARREST
CONVENOR TO SEE SUU KYI
FOREIGN MINISTRY DESERVES CREDIT FOR BRAVING SLORC IRE
CONVENOR TO SEE SUU KYI
FOREIGN MINISTRY DESERVES CREDIT FIR BRAVING SLORC IRE
PITFALLS FACING THE NATIONS RUSHING IN WITH AID
THE WINDS OF CHANGE
SUU KYI UNDER FIRE FOR AID REMARKS
THAILAND TO REMAIN NEUTRAL OVER SUU KYI INVITE
WORLD WAR SET STAGE FOR BURMA'S FREEDOM- AND MORE WAR
ASEAN STEPS UP PACE OF TRANSFORMATION
S.KOREA MISSION
BURMA-BRUNEI LINK
SLORC MOVES ON KHUN SA
KHUN SA REPORTED TO BE PRODUCING AMPHETAMINES
TALKS BID REJECTED

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===== item =====

SLORC OPENS A DOOR BUT THE THICK WALL REMAINS IN PLACE 
6 AUGUST 1995, The Nation  

By Don Pathan  The release of Aung San Suu Kyi from her six-years
house arrest came as a surprise to the international community, not
to mention the people of Burma.  But while foreign governments
welcomed the good news, Western nations were saying that they would
like to see further political progress in the country.  

"It is impossible to think that Slorc was not aware that freeing Suu
Kyi would become a source of instability for them," said a
Rangoon-based foreign diplomat.  At present, the State Law and Order
Restoration Council's, as the Burmese government is known, next task
was to look for a way to turn Suu Kyi's release, which was a
well-publicized event, into something personally beneficial. The
process seems to have started already when Rangoon decided to allow
a large group of foreign press, including some journalists who were
previously black-listed, to cover the release.  Slorc's decision to
allow such a large group of foreign press to cover the event was
supposed to show the world that Burma was ready to put up with such
coverage that was an integral part of a modern political state.  In
other words, it was a way of saying to the international media that
Burma had nothing to hide, and that the country was ready to
follow_to a certain extent_the international norm from which it had
isolated itself from the last two decades.  

What is even more surprising was that just before midnight on the
day of Suu Kyi's release, Burmese television aired the first footage
from Suu Kyi's residence on University Avenue.  The unedited report
filmed by a Japanese TV crew showed two prominent National League
for Democracy leaders, U Tin Oo and U Kyi Maung, leaving her
residence.  

Ironically, the same footage was taped and shown at the Burmese
embassy in Bangkok a few days after her release. Suu Kyi's picture
on TV came as a surprised to just about everybody who were waiting
for a visa to Burma.  For a country that has been holding out
against international condemnation over the last six years, it was
important for Slorc that the world saw them as having complete
control over the new political landscape that they had created by
releasing Suu Kyi.  

Also, it was just as important that the international community
acknowledged that Slorc was dealing with the whole situation from a
position of power.  

Aside from the release itself, one of Slorc's first major schemes
was to invite Suu Kyi, who they previously referred to as "the
lady", to attend this year Martyrs' Day ceremony to commemorate
Burma's assassinated national heroes who liberated Burma from
British rule.  

Although the invitation came as a surprise to some_her presence was
appropriate because one of the hero being commemorated was her
father, Gen Aung San_Slorc had to make sure that her appearance
would be low-key.  

Most importantly, they had to make sure that  her entrance into
Burma's political arena took a direction that would not in any way
jeapordize their existence.  As a result, Suu Kyi first public
appearance in six years had to be isolated from the thousands of
spectator who waited patiently outside the park where the official
ceremony was being conducted.  

Moreover, extra precautions were taken on the day to prevent any
possible disturbance from the public, with armed guards posted
throughout the city.  

Foreign journalists were also invited to attend, although they were
kept away from Suu Kyi and all the Rangoon-based foreign diplomats. 
And on the next day the government newspaper, The New Light of
Myanmar, showed on its front page a picture of Suu Kyi's laying a
wreath, but the caption and the story failed to elaborte on her
presence. 

 "It is logical for Slorc to play such an event [Suu Kyi at the
Martyrs' Day ceremony] up because it would show that they were ready
to participate in the new era they had created by releasing Suu
Kyi," said the Rangoon-based foreign diplomat.  

Moreover, a picture of her husband and son, Dr Michael Aris and Kim,
taken on the day of their arrival in Rangoon, appeared on the paper
the next day.  For the Japanese business community, who were eagerly
waiting the green light from Tokyo to invest in earnest, Slorc's
handling of whole situation came as a blessing.  

At the recent Asean ministerial meeting in Brunei, a senior Japanese
official hinted that the Japanese government was considering
resuming official aid to Burma.  

"We have been encouraged by the recent development there," said
Japan's Deputy Foreign Minister Hiroshi Fukyda after meeting with
his Burmese counterpart U Ohn Gyaw.  

Earlier this year, Japan gave humanitarian aid, to the sum of one
billion yen, to minority groups in Burma in an attempt to convey a
message to Slorc that it had to improve its human rights record, as
well as its democratic reform.  

But to dismiss all these recent developments_Suu Kyi's release, the
acceptance of foreign press and the Martyrs Day ceremony_as
something incidental is to undermine Slorc's power of manipulation
in Burma, as well as the junta's rigid control over its people.  It
is worth nothing that the Burmese press is still heavily censored,
people are prohibited from holding group meetings without permission
and some human rights activists and political prisoners are still in
prison.  

Moreover, Rangoon University, once a centre for the democracy
movement, is strategically fenced off in certain areas to prevent
students from gathering [to unite and protest]. The campus grounds
has been off-limits to foreign visitors since the 1988 uprising and
a sign at the entrance threatened legal action against any
unauthorized person found on the campus. Nevertheless, Slorc knows
only too well that removing their protective wall, separating them
from the outside world has its price.  

Soliciting much needed foreign capital will always come with
conditions. After all, there is a fine line drawn between foreign
policy and foreign interests.  Slorc is well aware that taking money
from donor countries comes with a list of conditions. This is not to
say that these conditions would force them to turn into angles
overnight.  

If anything, it means that, for the first time, they would be held
accountable to outside powers_the people that they had isolated
themselves from for the last two decades.  How the military junta
handles the external pressure remains to be seen. Nevertheless, it
will be interesting to see how this group of military generals, who
are not use to taking orders, behave themselves.  Suu Kyi's release
was also much welcomed by Burma's neighbouring countries,
particularly Thailand and Singapore, who had hoped that such action
would some how elevate the Association of Southeast Asian Nation's
(Asean) profile as an organization that can actually accomplish
things. 

In this case through their so-called constructive engagement with
Slorc.  But while Asean was quick to take credit for her release,
representatives from the member countries were very cautious about
making any contact with Suu Kyi's camp fearing retaliation from
Slorc, as seen when Asean invited her to attend a luncheon but later
did a U-turn because of objections from Slorc.  Furthermore,
supporters of the constructive engagement policy had hoped that her
release would at least quietened some of the critics of the policy.
It was often criticized as a thinly disguised agreement aimed at
protecting business interests in Burma.  

Nevertheless, with or without the presence of the foreign press,
Burma is still a very restricted country. The local press is
censored and there is no freedom of speech.  Arbitrary arrests, as
well as other from abuses, were still being reported by human rights
groups. At the moment, it remain to be seen whether Slorc can adjust
when its protective wall finally comes down.  Though Slorc has
acknowledged that engaging in an international arena requires them
to behave a certain way.  Nevertheless, it remain to be seen whether
the country continues along this line or retreats back into
isolation. And if it does go forward, will the rest of the world
continue to ignore the injustice and suffering that has become any
everyday occurrence in Burma, and go on with its business-as-usual
attitude? (TN)   


===== item =====

THAILAND'S POLICY ON BURMA MUST BE GIVEN NEW DIRECTION 
6 AUGUST 1995, The Nation  

Thailand's controversial policy of "constructive engagement" has
been criticized not only by the West but also by Thai academics and
opposition politicians. Rita Patiyasevi gives the low-down on the
domestic criticism of the policy.  Thailand's tow-track policy
towards Burma has often landed the country in deep water.
Inconsistency among Thai policy-makers has destabilished conditions
along the Thai-Burmese border and subsequently deteriorated the
government's relationship with the ruling State Law and Order
Restoration Council.  Time and again, academics, opposition
politicians and non-government organizations have strongly
criticized Bangkok's policy of "constructive engagement", giving
rise to the question of who actually benefits from the policy.  

As such, Thailand has been urged by many to seriously review its
controversial policy with Burma and to clarify the direction of its
future relationship with its western neighbour.  The futility of
maintaining a policy that establishes positive relations with Slorc
while at the same time forging shady relations with minority groups
fighting for greater autonomy from Rangoon was underlined almost
immediately after the junta seized power in a coup in 1988.  

Thailand gained the dubious distinction of being the first country
to recognize Slorc's illegal rule when the then army chief Gen
Chavalit Yongchaiyudh visited Burma in December 1988.  That same
time, Gen Chavalit came in for strong criticism from Thai student
leaders and NGOs for arranging the repatriations of several hundred
Burmese students without any guarantee of their safety back home.  

In all, more than 100 students were sent back to an unknown future
in exchange for access to Burma's natural resources, according to
several academics and human rights agencies.  In 1990, when Slorc
refused to acknowledge the victory of the opposition National League
for Democracy in the May 1990 general elections, the Thai military
sent a soccer team for a friendly match in Rangoon with Gen Chavalit
as the guest of honour.  

After the unexpected release of Burma's pro-democracy leader Aung
San Suu Kyi from nearly six years of house arrest, it is perhaps the
right time for a change in Thailand's approach towards its western
neighbour. The Thai policy is badly in need of reform and a sense of
unity and direction.  The Foreign Ministry should be in control of
the direction of the new policy towards Burma and should not leave
it in the hands of the military and the National Security Council,
several members of which have either developed a completely
distorted picture of Burma or have cultivated vested interests in
the country.  

Critics and academics have often debated and tried to formulate a
new approach to replace the "constructive engagement" policy.  In
many forums, like one held over a week ago at Thammasat University,
panel speakers agree the "constructive engagement" policy only
benefits selective groups of people.  

"The [constructive engagement] policy might have contributed to some
positive economic changes in Burma, but economic gains should not be
the sole rationale for the policy," said Palang Dharma MP Suthin
Noppakhet.  

"No doubt every country wants to progress but the practise of
obtaining benefits in complete disregard of the rights of the
Burmese people should be discouraged."  Suthin, the former chairman
of House committee on foreign affairs and human rights, over the
last two years has called on the government to revise its policy,
arguing it would be more effective to deal with Slorc through
dialogue.  "Dialogue does not constitute interference and it should
be something that both sides can accept," he said.   

He disagreed with previous governments' stance of non-interference
in other country's internal matters, saying it was time for Thailand
to reconsider the idea for the sake of a more peaceful co-existence
between the two countries.  

"The Foreign Ministry must take the lead and adopt a pro-active
stance and not wait to tackle problems when they occur," he said. 
Suthin called for a transparent foreign policy and changes in the
attitude of Thai politicians and authorities.  He also urged law
enforcement officers to stop sexually harassing young Burmese girls,
many of whom are forced into prostitution and later arrested by Thai
police. "How can we call this constructive engagement," he said.  

Foreign Minister MR Kasem S Kasemsri, while rejecting accusations
that the is trying to pursue a "double-edged policy" towards Burma,
last week instructed the Thai Ambassador to Rangoon Poksak Nillubon
to pay a visit on Suu Kyi.  The visit, which took place only after
Kasem cleared the matter with his Burmese counterpart U Ohn Gyaw,
was a positive step and can be seen as a indicating gradual progress
in Thailand's attempt to establish contacts with Burmese  opposition
or pro-democracy groups.  In the past, Thailand as well as other
Asean members, avoided any such contacts for fear of antagonizing
Slorc, which considers the activities of Suu Kyi and other the
domestic affair of Burma.  Kraisak Chonhavan, a personal adviser top
former prime minister Chatichai Choonhavan, criticized Slorc, saying
Suu Kyi's freedom was a publicity stunt which would allow Burma a
smooth entry into Asean.  

Although resource-rich Burma is attractive economically, the Thai
government should integrate it into the regional grouping only when
Burma makes significant improvement in human rights and democracy
issues.  "There remain some 50 well-known political prisoners and
hundreds of others who are still locked in jail," he said, quoting
figures from the London-based Amnesty International.  Kraisak has
urged the government to adopt a more humanitarian attitude towards
Burmese refugees, citing the Indian policy towards the Burmese
fugitives there.  In India, exiled Burmese are provided access to
academic studies and enjoy a certain freedom in conducing peaceful
political activities.  

"Over 30 temporary refugee camps along the border should be
transformed into permanent ones with possible access to the
International Committee of the Red Cross, the UN High Commissioner
for Refugees and other private relief agencies," he said.  "Over
thousands of Burmese students here should be given the right to
pursue higher education, to freely travel and work," he added.   Suu
Kyi's release was only the first-step in democratic reform in Burma.
Slorc, in fact, has not taken any other steps since it began its
rule in 1988 to show that it is serious in bringing about political,
it not democratic, reform, in Burma.  Slorc, from the very
beginning, neither had the public mandate nor the right to rule and
it should be told so. Thailand as well as the other members of the
international community has to prove its commitment to democratic
changes in Burma and continue to provide strong moral and political
support to the Burmese opposition. (TN)  


===== item =====

BURMESE TROOPS AND KARENNI FIGHTERS SAID TO HAVE CLASHED 

6 AUGUST 1995, The Nation  

Burmese troops and Karenni fighters have traded attacks in Burma's
eastern Kayah state 10 kilometres from Mae Hong Son, it was reported
on Friday.  A number of Burmese troops from Sop Huay Mae Yu launched
a surprise attack on a Karenni National Progressive Party (KNPP)
frontline base and were met with fierce resistance, Channel 7 said. 
Seven Karenni were killed and four wounded in the hour-long clash.
Casualties on the Burmese side were not known, the report said. 

The KNPP fighters struck back at Burmese troops at Sop Huay Mae Yu,
killing 12 soldiers and wounding several. The Karenni suffered no
losses in the two-hour encounter ands seized food supplies and arms,
it said. (TN)  

A NEW DAWN 
6 AUGUST 1995, The Nation  
The ruling Burmese junta is slowly projecting the country as an
economically attractive destination. Don Pathan reports on the
changes and the public mood towards the changing environment after a
two-week visit to the country. 

After two decades of self-imposed isolation, signs are beginning to
emerge throughout Rangoon suggesting the ruling State Law and Order
restoration Council would like to crawl out of its shell to join the
post-Cold War global trend towards privatization and pursuing a
market-led economy.  Throughout the city, billboards and
constructions are becoming increasingly prominent. Many hotels and
shopping centres are being constructed and they are expected to be
completed within the next few months.  

A Rangoon-based foreign diplomat pointed out Slorc is not building
these hotels and shopping plazas for the 1996 "Visit Myanmar Year."
He said Slorc is looking 20 years ahead and is currently taking
advantage of cheap labour and low construction costs.  

While no one is disputing the rate economic growth, critics are
quick to point out that the economic growth id benefiting only an
elite. Indeed, with an inflation rate of 32 per cent annually and a
sense of uncertainty, many Burmese are finding it increasingly
difficult to move up the social ladder.  Burmese democracy leader
Aung San Suu Kyi herself has questioned whether the economic growth
of the past six years has reached a few of the privileged or Burma
as a whole. Moreover, she said the numerous constructions are quite
worrisome.  

"When we think about development, we should think of the broader
human development of the country rather than economic development in
the narrow terms of more investment, tourists and hotels," said Suu
Kyi.  Furthermore, she added that despite the growth, the people of
Burma still have a strong desire for political reform.  

"The overt demand for democracy has quietened down but this has
nothing to do with what the people fear inside," said Suu Kyi. 
Nevertheless, the military junta has given strong indications it is
ready to rejoin the outside world and follow in the footsteps of
some of its wealthier neighbours, namely Thailand and Singapore.  

"The Burmese authorities, particularly the finance and commerce
ministries, have been making trips abroad to meet with potential
investors," said Siam City Bank representative in Rangoon, Aroon
Buranatanyarat.  One of the first indications of their intention of
joining the international bandwagon came at the recent annual Asean
Ministerial Meeting in Brunei. Slorc  took the world by surprise
when they acceded to the association's founding treaty.  Indeed, the
accession to the 1976 Asean Treaty of Amity and Cooperation would
bring the region one step closer to its ultimate goal of "one
Southeast Asia".  

Among other sceptics, however, Burma's accession would allow Slorc
an arena, namely the Asean Regional Forum (ARF), to present their
arguments to their Western counterparts who have consistently over
the past six years condemned Rangoon's human rights records.  But
whether Asean will allow Burma to use the grouping in such a way
remains to be seen. Judging from Slorc's behaviour over the past six
years when international pressure did not seems to trouble it, Asean
might be seeing some difficult days ahead.  

While a tradition of frankness among Asean members has yet to be
developed, it would be interesting to see how long the association
will remains silent if Rangoon decides to take advantage of the
opportunities made available by becoming a member of Asean. 
Currently, Rangoon is being comforted by Asean and the Japanese
pledge of a 1 billion yen in "humanitarian assistance" earlier this
year and a 4 billion yen debt-relief grant just two months later.  

Rangoon is likely to sustain this positive momentum by completing
the new constitution they have been sitting on since 1993.  Among
other things, the constitution will definitely provide a clause
ensuring Slorc's reign continues. But as it stands, several major
points are being contested by Suu Kyi's supporters.  

For one thing, the requires that the head of state be "familiar"
with military affairs. Moreover, it specifically bars anyone married
to a foreign citizen or who has lived outside of Burma for a number
of years. Both of these provisions, needless to say, apply to Suu
Kyi.  While the idea of transforming the Burmese political system is
still far from the minds of the Slorc generals, they know very well
that acceding to Asean's founding treaty will mean Rangoon can no
longer enjoy the business-as-usual attitude of the old days.  

And as the country opens itself up politically and economically,
sooner or later Burma will see that its people will discover new
aspirations and inevitably, develop new expections of their leaders. 


However, this is not to say that with an open economy, Burma will
immediately put an end to its oppressive ways. If anything, it would
make Slorc more accountable to accepted international standards.  

Meanwhile, Washington's threats of economic sanctions will most
likely be toned down, despite the rhetoric of some congressman
calling for a punitive economic embargo.  But regardless of what the
United States may do, plenty of investors in the region are ready
and able to take advantage of Burma's vast resources in case
American firms pull out.  

To be consistent with other Western countries who previously called
on Asean to go beyond constructive engagement, Washington will adopt
a more precautionary stance towards Rangoon and play the waiting
game.  Furthermore, the presence of foreign journalists in recent
weeks suggest the authorities may have begun to ease up their firm
rule over the people.  Nevertheless, the press is still strictly
censored, the law still prohibits people from meeting in groups and
forced labour is still being reported by international human rights
groups.  

Many investors have complained of corruption and red-tape, while
some Thais are suggesting they are steadily falling behind
Singaporeans in getting lucrative business contracts.  Aroon stated
that Burma's conservation laws may seem too rigid to some foreign
investors but insisted the government must be firm because they
"don't want to make the same mistake their more-developed neighbours
have made with regard to natural resources."  

The official exchange rate for the Burmese currency is six kyats for
one US dollar. However, one greenback can easily attract as much as
100-110 kyats on the black-market.  Moreover, gasoline is rationed
at four gallons a week per car. But throughout the city, one can
find easily find illegal stations where gas is sold from a bottle or
a plastic container.  

The black-market activities do not go unnoticed. The government
tolerates it because it has no choice. But for foreign investors who
are not used to this type of uncertainty, doing business in Burma
can be a different kind of challenge. (TN)    


===== item =====

KAREN REFUSING RESETTLEMENT FACE ARREST

7 August 1995, Bangkok Post

THAI authorities will next month begin arresting more than 10,000 Karen
refugees who have refused to move to two camps arranged for them by the
Thai government in Tha Song Yang District.

A series of attacks on Karen refugee camps along the Thai Burmese border
by the DKBA earlier this year prompted the Thai authorities to set up Mae
Hla and Sho Klo camps in Tha Song Yang District, to ensure security as well
as for better control of refugees.

So far 20,173 Karen refugees have moved to Mae Hla camp and 8,8979 in Sho
Klo camps.

About 1000 refugees living at Mae Woei, Mae Pho Hta and Kaw Theelu camps
and nearby mountainous areas have refused to be resettled at the two "safe
camps".

The KRC and Thai authorities yesterday met at Sho Klo camp and agreed that
the refugees who refused to move into the two camps will be arrested,
starting from next month.

At the same time, NGOs have declared they will not provide any assistance
to the refugees outside the two camps.

Those arrested will be given two choice - to go into the camps or to be
sent back to Burma. If they did not select either option, they will face
legal action for illegal entry which mean both a jail term and a fine.

KRC vice-chairman Valles said the KRC will today again warn the refugees
outside Mae Hla and Sho Klo camps to make a decision. Those who want to
enter the camps will be provided with transportation, he said.

Mr Valles said some of these refugees want to return home because they fear
being attacked again by the DKBA if they remain in Thailand. (BP)


===== item =====

CONVENOR TO SEE SUU KYI
7 August 1995, The Nation

THE convenor of a NGO forum on women to be held in Beijing said yesterday
she would go to Burma to discuss how newly-released democracy leader Suu
Kyi might contribute to the meeting.

Supatra Masdit, convenor of the NGO Forum on Women, said Suu Kyi had
declined an invitation to attend the meeting but said they would meet in
Rangoon tomorrow to discuss how Suu Kyi might send an address to the
gathering. (TN)


===== item =====

FOREIGN MINISTRY DESERVES CREDIT FOR BRAVING SLORC IRE

7 August 1995, The Nation

RATHER than ending the debate with the widely-reviled junta in Burma, the
surprise July 10 release of opposition leader Suu Kyi has only intensified
it.

>From Asean which advocates reform by a kind of osmosis, to Washington where
US congressmen want to impose stringent economic sanctions, Suu Kyi's
release was taken as vindication for a wide number of approaches being
pursued to reform the Rangoon government. Further, it provide the impetus
for the leading international players in Burma to intensify their divergent
and often conflicting effort to bring prosperity and democracy to the
military-controlled state.

Australia and European Union said they would re-evaluate their goals push
ahead with their "critical dialogue" with Rangoon; Tokyo dropped broad
hints that the release was a victory for its "quite diplomacy" and talked
of more aid and investment guarantees.

Asean hailed Suu Kyi's release as proof of the efficacy of "constructive
engagement" and warmly embraced Foreign Minister Ohn Gyaw at last week's
annual meeting in Brunei. Burma was allowed to accede to the Treaty of
Amity and Cooperation, a primary step for membership, and Asean elders
painted grand visions of a prosperous 10-state Asean that included the
international pariah. Back in Washington, congressmen were drawing up new
deadlines for more punitive action to take against Burma unless Rangoon
releases political prisoners and implements democratic reforms.

About the only country that had nothing to say was China, which is
obviously quite content with the current leading role it has in Burma's
affairs.

Rangoon's intentions
What the generals in Rangoon themselves are planning to do remains
something of a mystery. They have yet to give any indication that they are
preparing to follow up Suu Kyi's release with meaningful political changes
or lighten their heavy-handedrule.

Instead, they are showing more of the same contempt for reconciliation that
has marked there seven-year regime. Suu Kyi and her family again being
maligned in the state-controlled press and her appeals for dialogue
ignored. Ohn Gyaw reiterated in Brunei that a new constitution from the
ruling Slorc would exclude Suu Kyi for the fatuous reason that she is
married to a foreigner.

Encouraging stands
Against this dim background it is encouraging to see the Thai Foreign
Ministry taking a more aggressive and demanding position in relation to its
ties with Burma. The visit last week by Thai ambassador to Burma Posak to
Suu Kyi was the first by an envoy from an Asean country and risked raising
the ire of the Slorc.
But it was important for two reasons. Firstly, it served as a reminder to
Slorc, and to Thailand's Asean partners, that constructive engagement is
a give and take situation. The diplomatic recognition Slorc so desperately
wants and which it has been awarded by Asean is not being granted without
conditions - namely that it work toward a more open, democratic society.

Secondly, it was a prudent move on the part of Thailand to open up a
high-level contact with Suu Kyi who is destined to play a major role in
Burma's future despite the efforts of the Slorc.

In an interview with Thai television last week, Suu Kyi was highly
skeptical of Asean's constructive engagement approach, implying that so far
the only people to benefit had been businessmen and the government.

She also noted that her release means nothing if it does not lead to an
easing of the repression and terror that are part of life in Burma and the
eventual return of democracy.

The first law of international relationships id the establishment of mutual
respect. But respect has been sorely missing from the Thai-Burmese
relations and much of the blame must rest with Thailand.

Since the Slorc came to power in 1988 after killing thousands of
pro-democracy protestors, Thailand has displayed an embarrassing eagerness
to exploit Burma commercially ana a lamentable lack of interest in seeing
the country develop democratically.

Within months of the Rangoon massacres, then army-chief Gen Chavalit led
the first the first official foreign delegation to ]Burma to sign up
logging and fishing deals. On his return, hundreds of student dissidents
were forcibly repatriated to Burma.

Seven years later, Chavalit id talking of going back to Rangoon in a bid
to improve the current strained relations between the two countries. But
Chavalit's clubby, officer-to officer, business-first type of diplomacy is
outdated and will do little to improve long-term relations.

Real hope lies with the Foreign Ministry, which is taking moves to wrest
control for foreign policy away from the military and intelligence
services, a move which will hopefully lead to the forging of a sustainable
relationship built on the principle of mutual respect for the people's of
each country.

It may not happen soon, but it is the only hope for he future. (TN)


===== item =====

CONVENOR TO SEE SUU KYI
The Nation/7.8.95

The Convenor of a non-governmental organization forum on women ro
be held in Beijing forum said yesterday she would go to Burma to
discuss how newly-released democracy leader Aung San Suu Kyi
might contribute to the meeting.

Supratra Masdit, convenor of the NGO Forum on Women, said Suu Kyi
h ad declined an invitation to attend the meeting but said they
would meet in Rangoon tomorrow to discuss how Suu Kyi might send
an address to the gathering.


===== item =====

FOREIGN MINISTRY DESERVES CREDIT FIR BRAVING SLORC IRE
The Nation/August 7, 1995

Rather than ending the debate over the best way to deal with the
widely-reviled junta in Burma, the surprise July 10 release of
opposition leader Aung San Suu Kyi has only intensified it.

>From Asean, which advocates reform by a kind of osmosis, to
Washington where US congressmen want to impose stringent economic
sanctions, Suu Kyi's release was taken as vindication for a wide
number of approaches being pursued to reform the Rangoon
government. Further, it provided the impetus for the leading
international players in Burma to intensify their divergent and
often conflicting efforts to bring prosperity and democracy to
the military controlled state.

Australia and the European Union said they would re-evaluate
their goals and push ahead with their "critical dialogue" with
Rangoon, Tokyo dropped broad hints that the release was a victory
for its "quite diplomacy" and talked of more aid and investment
guarantees.

Asean hailed Suu Kyi's release as proof of the efficacy of
"constructive engagement" and warmly embraced Foreign Minister
Ohn Gyaw at last week's annual meeting in Brunei. Burma was
allowed to accede to the Treaty of Amity and Cooperation, a
primary step for membership, and Asean elders painted grand
visions of a prosperous 10-state Asean that included the
international pariah. Back in Washington, congressmen were
drawing up new deadlines for more punitive action to take against
Burma unless Rangoon releases political prisoners and implements
democratic reforms.

About the only country that had nothing to say was China, which
is obviously quite content with the current leading role it has
in Burma's affairs.

Rangoon's intentions
--------------------

What the generals in Rangoon themselves are planning to do
remains something of a mystery. They have yet to give any
indication that they are preparing to follow up Suu Kyi's release
with meaningful political changes or lighten their heavy-handed
rule.

Instead, they are showing more of the same contempt for
reconciliation that has marked there seven-year regime. Suu Kyi
and her family are again being maligned in the state-controlled
press and her appeals for dialogue ignored. Ohn Gyaw reiterated
in Brunei that a new constitution from the ruling Slorc would
exclude Suu Kyi for the fatuous reason that she is married to a
foreigner.


Encouraging stand
-----------------

Against this dim background it is encouraging to see the Thai
Foreign Ministry taking a more aggressive and demanding position
in relation to its ties with Burma. The visit last week by Thai
ambassador to Burma Poksak Nillubon to Suu Kyi was the first by
and envoy from an Asean country and risked raising the ire of the
Slorc.

But it was important for two reasons. Firstly, it served as a
reminder to Slorc, and to Thailand's Asean partners, that
constructive engagement is a give and take situation. The
diplomatic recognition Slorc so desperately wants and which it
has been awarded by Asean is not being granted without conditions
namely that it work toward a more open, democratic society.

Secondly, it was a prudent move on the part of Thailand to open
up a high-level contact with Suu Kyi who is destined to play a
major role in Burma's future despite the efforts of the Slorc.

In an interview with Thai television last week, Suu Kyi was
highly skeptical of Asean's constructive engagement approach,
implying that so far the only people to benefit had been
businessmen and the government.

She also noted that her release means nothing if it does not lead
to an easing of the repression and terror that are part of life
in Burma and the eventual return of democracy.

The first law of international relationships is the establishment
of mutual respect. But respect has been sorely missing from the
Thai-Burmese relations and much of the blame must rest with
Thailand.

Since the Slorc came to power in 1988 after killing thousands of
pro-democracy protestors, Thailand has displayed an embarrassing
eagerness to exploit Burma commercially and a lamentable lack of
interest in seeing  the country develop democratically.

Within months of the Rangoon massacres, then army-chief Gen
Chavalit Yongchaiyudh led the first official foreign delegation
to Burma to sign up logging and fishing deals. On his return,
hundreds of student dissidents were forcibly repatriated to
Burma.

Seven years later, Chavalit is talking of going back to Rangoon
in a bid to improve the current strained relations between the
two countries. But Chavalit's clubby, officer-to-officer,
business-first type of diplomacy is outdated and will do little
to improve long-term relations.

Real hope lies with the Foreign Ministry which is taking moves to
wrest control for foreign policy away from the military and
intelligence services, a move which will hopefully lead to the
forging of a sustainable relationship built on the principle of
mutual respect for the people's of each country.

It may not happen soon, but it is the only hope for the future.


===== item =====

PITFALLS FACING THE NATIONS RUSHING IN WITH AID
6 AUGUST 1995, The Nation

Don Pathan

When the Japanese stopped giving aid to Burma in 1988 in deference
to its Western allies' dicision to isolate the ruling State Law and
Order Restoration Council from the world community, rangoon's junta
knew they were in for tough times.

Slorc has since had its hands full containing the country's ethnic
minorities fighting for autonomy yet they have still managed to
strengthen their grip on power despite constant criticism from
foreign governments and condemnation from international human
rights groups for the arbitrary detention of Burmese opposition
leader Aung San Suu Kyi and other political activists.

On July 10, Slorc stunned the international community by releasing
Suu Kyi, who had been under house arrest for nearly six years. The
news was doubly surprising as Slorc intelligence chief Lt Gen Khin
Nyunt had slammed the West just a week before for hypocrisy and
double standard of human rights.

"The rights of 45 million people in the country are more important
than the rights of an individual," said the defiant general.
Whatever Slorc's reasons for releasing Suu Kyi, the ruling junta
must have been certain the action would serve their interests and
be worth the accompanying political instability.

Most analysts agree that Slorc must feel capable of handling any
challenges that may come with Suu Kyi's release. Some also
suggested that Burma may be making overtures to join the Assciation
of South East Asian Nations, which stuck its neck out for Burma
against the Western political community and human rights
organizations.

Other believe Japan worked behind the scenes for Suu Kyi's release.
Shortly after she was freed, Japan's foreign ministry released a
statement calling the event "an important step towards the
democratization of Burma".

A Rangoon based Western diplomat emphasized that Japan's business
community made no attempt to hide their disappointment with Tokyo's
decision to halt Burmese aid in 1988 with no economic sanctions
between the countries and Burma's political instability, most
Japanese businesses felt compelled to pull out of Burma.

Japanese investors were irked when other countries took advantage
of Japanese inactivity by cutting deals with Slorc to exploit the
country's vast natural wealth.

"Before 1988, there were no Koreans, Thais or Singaporeans
investing in Burma," said the foreign diplomat. "It was exclusively
Japan's turf." Indeed, a change in Japan's attitude was apparent in
March this year when Tokyo pledged Y 1 billion ($11.5 million) in
"humanitarian assistance" to Burma. Moreover, two months later a Y4
billion debt-relief grant was arranged despite the West's continued
negative response.

During a recent news conference after a meeting between Asean and
its dialogue partners, which include the US, Japan, South Korea,
Australia, New Zealand, Canada and the European Union, Japanese
Foreign Minister Yohei Kono said he was "encouraged" by the
increasing number of political prisoners being released in Burma.

He also noted that Suu Kyi's release was not due to pressure from
the international community. "We don't believe that the release of
Aung San Suu Kyi was brought about by the continued isolation of
Burma from the international community," he said.

Indonesian Foreign Minister Ali Alatas was quick to credit Suu
Kyi's release to Asean's constructive engagement policy. He was
echoed almost immediately by foreign ministers from Asean, who
steressed the efficacy of constructive engagement which has been
criticized by the international community as a thinly disguised
scheme to protect Asean's business interests with Slorc.

Constructive engagement calls for a constant, low-key dialogue with
Rangoon, continued investment and trade, and the non-imposition of
sanctions.

Such a policy, Aean argued, would eventually take Burma out of its
self-imposed isolation and bring its government in line with the
international norms of the world community.

But while Asena is quick to pat itself on the back, Suu Kyi
questioned the policy's effectiveness. She also asked foreign
governments to wait before rushing in with aid.

"The question is, for whom has [constructive engagement] been
constructive? Was it constructive for the forces of democracy? Was
it constructive for the Burmese people in general? Was it
constructive for limited business community? Or was it constructive
for Slorc" she asked. (TN)


===== item =====

THE WINDS OF CHANGE
6 AUGUST 1995, The Nation

Ancient traditions way for new, modern terns as Burma struggles to
find its feet in a fast paced, changing world. Don Pathan wondered,
however, what price the Burmese will have to pay for such changes.

Driving through the city of Rangoon, it is quite obvious that Burma
is no longer a country where time has stood still. Throughout the
city, remnants of the old blends quite well with the new.

The busy traffic in front of the two-thousand year old pagodas
creates an impression that Burma is on its way to modernity a long,
rough road from which there is no turning back. And in spite of the
fact that the people of Burma have a strong sense of history,
changes, like anywhere in the world, will always come with a price.

Throughout downtown Rangoon, numerous billboards of various seizes
advertize local and foreign goods. But unlike other major cities of
the developing world, American fast-food franchises are nowhere in
sight.

Hotels and shopping centres are being erected throughout the city
and many of these constructions are expected to be completed in the
next few months.

"The Slorc is looking twenty years ahead," said a Rangoon-based
foreign diplomat. "These hotels are not being built for the 1996
Visit Myanmar Year. They are being built now because the
construction cost is quite cheap at the moment," he added.

In the foreground of these constructions, the sight of some one
hundred people waiting in line in front of the post office nearly
one hour before it opens shows that Burma has long way to go with
its infrastructure.

Burma knows quite well what it has to do to be in line with the
trend of post-World War II era. Now, it is the question of
political will. It is quite clear that after two decade of self-
imposed isolation from the international community, Burma is trying
desperately to jump on to the market-oriented economy band wagon a
path that has brought a great deal of wealth to many of its
neighbouring countries.

But unlike many major cities in the region which went through
modernization and unbanization, homelessness, pan-han-dling,
violent crimes, prostitution and other social ills that accompany
the process are virtually non-existant in Rangoon.

Also, Rangoon's neightlife has been toned-down quite a bit in the
last two years. This, however, does not mean that the city or the4
country as a whole is without problems the memory of the brutal
military crackdown in 1988 is still fresh in the minds of many
Burmese and moreover, the lack of trust between the military junta
and the people will always be an obstacle to modernization and
national reconciliation.

Nevertheless, the people of Rangoon continue to trudge along with
the hope for a better tomorrow. Like anywhere else in the world,
life in rangoon goes on in spite of the great uncertainly.

Churches, mosques and temples are well-attended and many find
comfort from their faith as seen at the Shwedagon Pagoda where many
loals mediate, in spite of the fact that it's also a major tourist
spot.

Rangoon residents say Thailand's newly appointed Defence Minister
Gen Chavalit Yongchaiyudh had visited Sule Pagoda to make a special
wish to Bodawgyi, a diety enshrined there. The former army chief is
said to have prayed for his long-awaited dream of becoming
Thailand's prime minister. Local people said his wish wasn't
granted because his offerings to the deity were far too small. (TN)


===== item =====

SUU KYI UNDER FIRE FOR AID REMARKS

8 August 1995, Bangkok Post

THE New Light of Myanmar, a Burmese state -owned paper, has
criticised  dissident leader Aung San Suu Kyi for urging countries
not to rush to resume  economic aid to Burma. It did not mention
her by name in last week's article, but said the comment was a
hindrance to foreign aid. The article, written by U Phyoe, a former
Buddhist monk, accused Suu Kyi of being motivated by malice,
despite her usual rhetoric about forgiveness, unity and
cooperation. He also said she was jealous of Burma's achievements
and that its 45 million people were going to benefit 
directly from foreign aid. (BP)



===== item =====

THAILAND TO REMAIN NEUTRAL OVER SUU KYI INVITE

8 August 1995, Bangkok Post

THAILAND will officially remain neutral over a visit to Rangoon by
Democrat Masdit to invite Burmese dissident leader Aung San Suu Kyi
to give a keynote speech at the Non Governmental Forum on Women 95.

Khunying Supatra is a convener of the forum which will open in
Beijing on August 31, ahead of the fourth United Nations'
Conference on Women.

We neither support nor oppose (the visit), Foreign Minister M.R.
Kasem S.Kasemsri said yesterday.

He said the Thai Embassy in Rangoon would assist Khyuning Supatra's
visit as  much as it could. She left yesterday. 

Khyuying Supatra said earlier that her visit to Rangoon was on
Behalf of the UN and had nothing to do with politics.

Mrs Suu Kyi's speech will be telecast to the forum, because of her
decision not to leave Burma.

Last Thursday, M. R. Kasem gave approval for Thai Ambassador to
Rangoon Pokask Nilubol to visit Aung San Suu Kyi at her house,
saying  it was the right thing to do to express Thailand's anxiety
over the progress of democracy in Burma following her release from
house arrest. (BP)



===== item =====

WORLD WAR SET STAGE FOR BURMA'S FREEDOM- AND MORE WAR

8 August 1995, Bangkok Post

THE WELL-TENDED graves at the war cemetery in this small town are a
grim  reminder of the tumultuous period during World War II when
Burma went from British to Japanese and back to British hands all
the while searching for independence.

The cemetery, with its tombstones and columns engraved with the
names of 27,000 Allied soldiers who died in Burma during the war,
shows the obvious physical remnants of the war in Burma.

But to Burma, the war meant more than just being a battle ground
for two colonial powers.

It was also a pivotal period for the country's nascent independence
movement, which wanted to break from British colonial rulers who
had been in Burma since the 1800s. In addition, the war marked the
beginning of ethnic tensions in the nation which continue today.

In the early 1940s, Burmese nationalist leaders decided the best
way to gain independence would be to side with the Japanese against
the British and Allied troops, in exchange for help in gaining
freedom for Burma.

After making a deal with the Japanese to help them occupy Burma- a
strategic gateway to India- and close the Burmese Road into China
in exchange for future independence, a group of young men known as
the Thirty Comrades went abroad in 1941 for military training with
the Japanese.

The Thirty Comrades, led by nationalist leader Aung San, then
formed the Burma Independence Army (BIA) and accompanied the
Japanese into Burma, which they occupied in early 1942.

The march of the BIA into Burma alongside the Japanese troops was
an occasion of great pride and joy to the Burmese who felt that at
last their national honour had been vindicated, wrote Aung San's
daughter and opposition leader Aung San Suu Kyi in a biographical
article of her father.

Others agree, saying the Burmese hoped they could at last be freed
from British rule, with the help of the Japanese.

The Japanese gave us the spirit of independent, and not subject to
British rule, said Vum Ko Hau, now a 78 year old veteran who served
under the British and the Japanese during the war.

But Vun Ko Hau, who sat facing walls adorned with wartime portraits
and pictures, said the joy was shortlived.

The Japanese treated Burmese people in a bad way, he said,
recounting everal incidents where he had to watch Japanese troops
torture, maim or kill Burmese citizens and soldiers.

They slapped us and did things not practised by any other society.
The British were gone but we had new masters. New masters who were
even more cruel than the old ones, but this time the abuse was
physical, not verbal. The British didn't martyr you. But if the
Japanese suspected you of doing some thing wrong they'd kill you,
he said.

Torture, disappearances and forced labour conscription were also
common place under the Japanese, historians said.

On the Thai-Burma border, the Japanese forced Allied prisoners  and
slave labourers to build a 415 km railway through thick jungle-
covered mountains between the two countries.

Atrocious working conditions in the tropical climate, coupled with
a near starvation diet and brutal treatment, killed one in five
prisoners of war during the construction.

About 16,000 Allied soldiers and 100,000 enforced labourers died in
the 16 month construction of what became known as the Death
Railway.

Although the Japanese officially  declared Burma a sovereign nation
on August 1, 1943, Burmese nationalists quickly realised it was a
farce and the  Japanese planned to remain in control.

So the nationalists and various ethnic groups formed resistance
groups and contacted the British for arms and support. Eventually,
with the help of British and Allied troops they ran the Japanese
out of the country in mid 1945.

But they years of fighting took their toll.

Burma, once considered the rice basket of the region, was
devastated by the armies that had trampled across its soil for
three years. In addition, Burma's extensive oil production
facilities were destroyed.

The fighting also exacerbated traditional suspicions between the
ethnic minorities of the frontier areas and the majority Burmans
from the central plains.

Minorities such as the Karen, Kachin and Karenni sided with the
British and fought  alongside Allied commandoes parachuted in to
help infiltrate behind the Japanese lanes.

Fifty years on, those conflicts still trouble modern Burma. (BP)


===== item =====

ASEAN STEPS UP PACE OF TRANSFORMATION

8 August 1995, Bangkok Post 

THE annual round of Asean foreign ministers' meetings has become
such a complex event that it is sometimes difficult to sort out the
important bits from the detail. In some respects this year's
meetings appear bland, but on a handful of important issues, Asean
has taken significant steps towards further future change.

The most obvious achievement in his torical terms was the formal
admission of Vietnam as Asean's seventh member. In Brunei this
might not have appeared too exciting since all the preparations had
been concluded in advance. Nevertheless, the achievement was
historical. With so many past expectations ending in
disappointment, one important but intangible virtue remains- the
high level of comfort Asean's members enjoy in each others'
company. Now a former enemy is on the way hopefully to becoming a
good friend, and the Association of Southeast Asian Nations might
never be the same again.

A lot of questions remain to be settled about Vietnam's
participation in Asean, however. two issues dominate: whether
Vietnam will be able to attend all the many Asean meetings and if
not whether Asean can streamline its increasingly cumbersome
structure of committees, and challenge of the Asean Free Trade
Area, even if it is allowed a three year delay.

But the fact that doubts remain does not mean the issue will be
insoluble. A year ago, when Asean agreed to negotiate Vietnam's
membership it seemed questionable whether the necessary details
could be completed even by this year's summit in Bangkok in
December. So now, Asean and Vietnam have concluded the important
first step ahead of schedule.

Vietnam's membership has increased the tempo for Asean to expand.
The talk is now of Laos and Cambodia joiningly by 1997 when Asean
reaches its 30th birthday. Some analysts belive that so long as
Cambodia's internal conflict is settled, both could adjust to the
commitments of Asean more easily than Vietnam.

Free trade would be easier to achieve, for example, because the
state's economic machinery is less entrenched in Cambodia and Laos
than in Vietnam. Whether this means the two could adhere to Asean's
timetable for free trade by 2003 remains in doubt. They could be
granted  Vietnam's three year delay. 

Separate timetables for all new members would make administering
the free trade area quite complex.

Perhaps the biggest question about future expansion is Burma. The
feeling in Brunei last week seemed to be that Burma could join by
1997 too. But some senior Asean diplomats- not necessarily Thai-are
warning privately that Rangoon would have to convince its
neighbours that reform is genuinely and irreversibly under way.

Simply releasing Aung San Suu Kyi is not enough; the permanent
establishment of an elected assembly would be a prerequisite, one
diplomat says. But the first step of admitting Burma as an observer
might take place next year. In this context, the Thai ambassador in
Rangoon's decision to visit Aung San Suu Kyi, apparently in the
face of Slorc disapproval, was a good move. 

The humble security safety valve, the informal Asean Regional Forum
that met for the second time immediately after the foreign
ministers' annual conference, also made some modest progress,
mainly through franker airing of opinions.

France - so anxious to attend last years as one of the European
Union's troika of past, present and future six month presidents -
found itself this year confronted with regional disquiet about its
nuclear testing plans. And China remained "engaged" in the forum's
attempt to avoid conflict over the Spratlys. 

The testing has not been stopped, and war could still break out in
the South China Sea, so the forum's real worth has not yet been
proved.

Next on Asean's main fixtures list are the economic ministers
meeting in October and the Bangkok summit it December. The Sultan
of Brunei's proposal for free trade to be achieved in 2000 instead
of 2003 is likely to be discussed seriously. So are further
institutional reforms. Asean's new members and the increasing scope
of the subjects covered - services and intellectual property could
be next in line for Asean liberalisation for the secretariat and
for the various committees.

We will still have to wait some years to see if any of this has a
real impact on the economies or the security of the region. But for
the time being, the pace of Asean's transformation has quietly
stepped up a gear. (BP)


===== item =====

S.KOREA MISSION

8 August 1995, Bangkok Post

SOUTH Korea's Deputy Foreign Minister for Planning and Management,
Kim Hang-Kyung, begun a four-day visit to Burma to strengthen trade
and business ties between the two countries. Kim, who will be
acting as a special envoy of Foreign Minister Gong Ro-Myung, will
meet Gong's counterpart David Abel and Vice-premier Maung Maung
Khin. (BP)


===== item =====

BURMA-BRUNEI LINK

8 August 1995, Bangkok Post

BRUNEI and Burma have discussed the extension of commercial fights
between the two countries and the construction of an international
airport in Rangoon . Brunei Communications Minister Dato Seri Laila
Jasa Haji Awang Zakaria Sulaiman led a delegation to Rangoon from
August 2 for talks with BUrmese Transport Minister Air Chief
Marshall Thein Win and Post and Telecommunication Minister Soe Tha.
(BP)


===== item =====

SLORC MOVES ON KHUN SA
8 AUGUST 1995, Bangkok Post
Shan leaders increasingly see drug warlord as barrier to outside
support for independence cause Report: Subin Khuenkaew and Nussara
Sawatsawang, Chiang Rai

The State Law and Order Restoration Council has been massing troops
along the Thai-Burmese border from Mae Hong Son to Chiang Rai in
what is described as an all-out attempt to crush the forces of drug
warlord Khun Sa by the end of the year.

The first hint of a large-scale war against Khun Sa came from Lt-
Gen Khin Nyunt, Slorc's strongman, when he announced that the drug
baron's strongholds would be the next target after the defeat of
the Karen National Union early this year.

He said Burma's 200,000 troops would be mobilised to crush Khun
Sa's Mong Tai Army. Although Khin Nyunt had ex-aggerated the number
of troops to be put on the warpath, about 10,000 troops have been
committed for the operation.

Well-informed sources said at least 10 battalions or about 4,000
Burmese infantary have since June crossed the Salween River to face
the Karenni National Progressive Party's stronghold, opposite Ban
Nai Soi village in Muang district of Mae Hong Son.

The troops were sent there under the pretext of settling a logging
row with the KNPP. But one of Khun Sa's close aides told Inside
Indochina that Slorc troops intended to secure safe passage through
the KNPP's area to attack Ho Mong township, Khun Sa's headquarters.

About 90 per cent of the KNPP's territory has fallen to Slorc. On
another front at Doi Pa Daeng Luang, another Khun Sa stronghold,
only 30 kilometres south from Tachilek in Burma, another 4,000
Burmese soldiers have been engaged in a protracted battle with the
MTA since March. This is the second attempt to break Khun Sa's
defence after a humiliating defeat last November.

About 2,000 Burmese troops have also been massing at Ban Doi Lang,
opposite Mae Ai destrict, Chiang Mai, which is under the control of
the United Wa State Army (UWSA).

The UWSA, which is made up former members of the Burmese Communist
Party, surrendered to the junta in 1993 and has since been allowed
to remain in the BCP's territory to guard against the MTA. However,
there is no sign whether the UWSA will join the Slorc in the battle
against the MTA.

Observers said Slorc chose to launch an offensive now because it
felt Khun Sa's military power had been weakened and he also had
been plagued with internal rebellion.

Maj Karnyord, deputy commander of the 16th Brigade, recently broke
ranks from the MTA with 500 men to form his own independent army.
Karnyord, a young turk in the MTA, reportedly quit the army because
of "discrimination" in the ranks, the MTA's deviation from the
state's struggle for independence, and its infamous drug dealing
image.

Zao Gunjade, chairman of the Shan State National Congress (SSNC)
believed Karnyord's split was instigated by the Slorc which noted
the Shan resistance would not be able to get any outside help as
long as it associated with Khun Sa.

Analysts said Karnyord's defection was the result of the same trick
employed by the Slorc which led to the Democratic Kayin Buddhist
Organisation's breaking away from the KNU.

The defection of the Karen Buddhists, from the mostly Christian
Karens, caused the eventual fall of the KNU's Manerplaw and
Kawmoora strongholds this year.

"The DABO was supposed to inform the Slorc of all it knew about the
KNU, both its weak and strong points. Karnyord will likely do the
same about the MTA," they said.

The recent speculation that Khun Sa may soon be forced to step down
as head of the MTA indicates some serious internal problem. Several
leaders in the Shan State National Congress have begun to feel that
Khun Sa's notoriety as a drug warlord is an obstacle to their
tasks.

The SSNC is to hold a meeting to determine Khun Sa's fate. No dates
have been fixed but Gunjade,a much-respected congressman and a
veteran army leader who is tipped to succeed Khun Sa, told Inside
Indochina the meeting is due to be held before the end of October.

Military and political objectives aside, economic reasons have
played a role in prompting the Slorc to launch all-out war against
the MTA.

A border source said the rich natural resources in the Shan State,
as well as numerous heroin refineries under the control of the Wa
and Khun Sa, could bring in millions of dollars for cash strapped
Burma.

Apotential site for a 5,000 megawatt hydro dam on the Salween River
is in Khun Sa's territory, opposite Wiang Haeng sub-district,
Chiang Mai.

In Loi Kaw, the Karenni State's capital, a Thai company has
proposed an inland site for the Salween dam. A recent trip to the
site organised by the state-owned Myanmar Electric Power Enterprise
was cancelled owing to security problems, a delegation member said.

A Thai-Burmese border observer said Slorc had prepared its plans
well in advance. he said that in the past two years, the Slorc had
sent intelligence units into Thai-Burmese border provinces to learn
about the MTA's movements.

"They did a good job in identifying Khun Sa's safe houses," he
said. But Thai authorities had trouble taking action against the
occupants of the safe houses, who hold Thai identification cards.

The Burmese military junta has spent millions of kyats to build
roads and bridges over the Salween River toward Shan State. A Thai
logging company, Thai-Sawasdi, has been granted a contract to build
a road not far from the state's capital, Taunggyi, in exchange for
2,000 tons of logs.

Infrastructure in sensitive areas such as Keng Tung province and
nearby has been completed while that south of Shan State, from
Taunggyi to Mawkmai and Namsang-Mong Nai-Mawkmai to meet Ta-sobteng
bridge over the Salween River, is due to be completed this year.

"This means Burmese troops are getting closer to our Ho Mong
headquarters," an MTA officer conceded. Slorc's cabinet reshuffle
in mid-June saw Maj-Gen Tin Htut appointed commander of the Eastern
Command, replacing Maj-Gen Saw Tun, who was promoted to
Construction Minister.

Maj-Gen Tin Htut from the 33th Division was said to be under the
direct command of Gen Maung Aye, Slorc's vice-chairman and the
former eastern force commander.

A Thai observer predicted that Khun Sa's strongholds would fall by
the end of this year. According to Gen Zang Zhi Chen of the MTA,
Burmese troops recently received 5,000 mortar shells from a
neighbouring country, apparently China.

Observers doubted whether it was a coincidence that Chinese Defence
Minister Gen Chi Haotian paid an official visit to Rangoon early in
July. Khun Sa is having problems with logistical supplies. His
supply lines, including Ban Mai checkpoint, which was a major
passage for rice, medicine and clothes, have been cut since July
last year, affecting both the MTA and Shan people.

Ban Mai, the opposite site of the stronghold, 45 kilometres north
of Mae Hong Son province, was closed as a result of the Thai
Government's tightening of security. MTA sources also said the
Slorc tried to close another 30 checkpoints along border on its
side to prevent supplies crossing from Thailand.

Khun Sa's close aide said the MTA could remain strong until next
year and would be ready for any offensive. The SSNC sources said
they would conduct a political offensive to arouse nationalistic
sentiment among the Shan to fight for independence.

"The more they (Shan people) are oppressed, the faster they will
join us. The Slorc only builds roads and bridges, but we help our
people farm their land, repair their houses and give first aid.
This way, they inform us about the Slorc army's movements while
understanding better our goal in fighting for independence," one
member said. (BP)


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KHUN SA REPORTED TO BE PRODUCING AMPHETAMINES
8 AUGUST 1995, The Nation

Golden Triangle warlord Khun Sa his ethnic rival Wa forces, long
involved in the production of heroin, have gegun producing more-
profitable amphetamines, acquiring the raw chemicals from China,
acording to PM's Office Prasong Buranapong.

 Khun Sa has set up laborations in his Hmong headquarters located
opposite Thailand's Mae Hong Son proveince, while the United Wa
State Army is working from its base opposite Chaing Mai province.

Prasong cited information from the Office of Narcotics Control
Board (ONCB) indicating that the two Burma-based group' moving into
amphetamine production was the result of cheap production costs.

The minister said he had instructed the ONCB to cooperate with the
Police Department both the local police force and border patrol
police to prevent the trafficking of amphetamines from Burma into
Thailand.

Cracking down on amphetamines is not very effective because the
drug provides a high return, about 10 times more profitable than
heroin, he said.

In Thailand, amphetamines are produced mainly in the North,
Northeast and the Central regions. The drug is widely abused in Lop
Buri and Ratchaburi provinces and injected amphetamine use is
widespread in Sikhiu idstrict of Nakhon Ratchasima province,
Prasong said.

He said the drug, which used to be abused mainly by long-haul truck
drivers, is now becoming popular among students, factory workers
and fishermen. A new study shows that farmers and villagers who
used to regularly take "Thamjai" caffeine-aspirin pills, are also
turning to amphetamines.

Since the Ministry of Public Health banned caffeine in "Thamjai"
pills last year, farmers and villagers were switching to
amphetamine pill is usually divided into small pieces which are
then taken along with the "Thamjai" pills.

Prasong said the government is considering including money earned
from smuggling, illegal arms and petro-gasoline sales, as well as
trafficking in women into a money laundering bill, which was
initially drafted to allow the government to seize assets and
properties of narcotics traffickers.

The minister said the draft bill would go to Parliament either this
month or next and probably pass Parliament as the current
opposition parties had previously supported it when they were the
government.

He added that he believed all Mps would support the new draft bill
as none would want to support contraband smugglers. Prasong said
the government, however, had not yet reached a dicision as to the
minimum amount of cash a person would be required to explain when
making bank deposits. (TN)


===== item =====

TALKS BID REJECTED
8 AUGUST 1995, Bangkok Post

The Karenni National Progressive Party has rejected the Burmese
junta's invitation to talks in Loi Kaw, the capital of the eastern
Kayah State, within 10 days or face military action.

The party issued a statement last week saying it could not talk
when the junta constantly attacked it. The Karenni signed a
ceasefire with Burma in March, ending 50 years of hostility, and
became the 13th such ethnic group to make peace with the junta.

But the pact broke down in June when the junta allegedly sent 2,000
troops across the Salween River into the party's designated area.
(BP)