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Burma Net News June 1, 1996 #429



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------------------------ BurmaNet ------------------------
"Appropriate Information Technologies, Practical Strategies"
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The BurmaNet News: June 1, 1996
Issue #428

HEADLINES:
==========
THE TIME OF INDIA : BURMESE GOVERNMENT FREES 74 DISSIDENTS
THE TIME OF INDIA : JUNTA FREES 60 SUU KYI MEN, 9 TO BE PUT TRIAL

(BURMANET : BRIEF BUSINESS REPORTS
JUNE 1, 1996.
Compiled by Burma Net from information provided by Mbeer.)
AP : ALLEGED ABUSES ON PIPELINE
MAINICHI DAILY NEWS : BUSINESS GROUP UPGRADES TIES 
WITH BURMA
FRIENDS OF BURMA FRANCE : THE TOTAL STATEMENT 
NDF : POSITION ON CURRENT POLITICAL SITUATION IN BURMA
XINHUA NEWS AGENCY : MYANMAR ENCOURAGES WOOD-BASED 
INDUSTRY
BBC : FOREIGN RELATIONS
PHILIP SHERWELL  : BURMESE DEMOCRATS DEFY GENERALS 
MASS ARRESTS OF MPS HAVE FAILED TO
XINHUA NEWS AGENCY : SPEEDY FREIGHT HANDLING ARRANGED 
AT YANGON PORT
BBC : CHINESE COMPANY TO BUILD WHARF IN RANGOON
MYNANMAR ALIN : OPPOSITION ACTIVITIES; "ANTI-PEPSI"
AFP : FOREIGN CAR FIRMS GEAR UP FOR BURMA'S 
NASCENT AUTO MARKET
THE NEW YORK TIMES : BURMESE DISSIDENT PRESSES DEMANDS, 
PUTTING JUNTA ON DEFENSIVE
XINHUA NEWS AGENCY : SINGAPORE FIRM TO INSTALL PHONE 
SYSTEM IN MYANMAR
AFP : MITSUI ENGINEERING LIFTS PROFIT 58.7 PERCENT
FINANCIAL TIMES : INDIAN SUGAR MILLS SEEK EXPORT BOOST
THE INDEPENDENT : CRUELTY AND KINDNESS
IHT : ISOLATE BURMA'S JUNTA
FINANCIAL TIMES : RELEASING BURMA'S OPPOSITION LEADER HAS 
EXPOSED THE DIVISIONS IN THE MILITARY,
XINHUA NEWS AGENCY : MYANMAR MINISTER OF FORESTRY 
VISITS CHINA
--------------------------------------------------------------------------------------------

BURMESE GOVERNMENT FREES 74 DISSIDENTS

June 1st 1996, The Time of India (New Delhi)
By Robert Horn
Rangoon, May 31.
Burma's military regime on Friday freed at least 74 of the 262 people
detained in a failed bid to stop pro-democracy leader Aung San Suu
Kyi from holding a party congress.

Ms Suu Kyi debriefed about two dozens of those released at her
lakeside home. Opposition leaders speculated that the regime may be
softening its opposition t a dialogue with Ms Suu Kyi's National
League for Democracy.

"When these people were detained, they were all asked a set of five or
six questions," said Kyi Maung, party vice chairman. The one they
really seemed to focus on was, "what do you think NLD really wants
from a dialogue."

Mr. Kyi Maung concluded: "I think they are seriously contemplating a
dialogue. That is my gut feeling."

State radio announced on Friday that those detained as "guest of the
government" were being freed, but it was unclear if all would be
released. The detainees comprised 238 conference delegates, plus 24
ordinary party members.

Despite the mass arrests, the party conference led by Ms Suu Kyi,
winner of the 1991 Nobel peace prize for her nonviolent promotion of
democracy, posed the biggest challenge to the regime since she was
freed form six years of house arrest last July.

Japan and Thailand have been two of the chief investors in Burma,
arguing that foreign investment will improve the lives of the country's
desperately poor people and give outsiders leverage to moderate the
regime.

Embarrassed by the crackdown, both countries condemned the mass
arrest and sent diplomatic observers to the arrest-depleted congress in
a sign of support for Ms Suu Kyi.

The releases came hours after the United States announced plans to
send a envoy to Burma to push for freedom for the activists. US state
department spokesman Nicholas Burns said in Washington that the
Burmese authorities "should not be left off scot free." (AP)

********************

JUNTA FREES 60 SUU KYI MEN, 9 TO BE PUT TRIAL

June 1st 1996, The Asian Age (New Delhi)
Rangoon May 31: The military regime on Friday released at lease 60
of the 262 detainees round up in a failed to prevent democracy leader
Aung San Suu Kyi from holding a party congress. However, nine
others were to put on trial, Opposition sources said.

The Opposition reported that 59 of those freed on Friday came form
the ranks of 238 conference delegates detained in the past week. The
other freed detained, plus three others released earlier, were ordinary
supporters of Ms Suu Kyi's National League for Democracy. Government
radio announced that those detained as so-called "guest of the
government" were being freed.

This may reflect an easing of tensions in the biggest confrontation
between Ms Suu Kyi and the junta since her release from six years of house arrest
last July. Unlike in recent days, the state-run press on Friday refrained
from calling her a "stooge" or "maggot" taking orders from foreign
powers. The release came hours after the US announced plans to send an envoy to
Burma to seek the release of the activists.

"The Burmese authorities, US state department spokesman Nicholas Burns
said in Washington, "should not be let off scot free."

The Opposition predicted that activists considered a particular threat by
the regime will not freed. Some have already been sent to Insein prison
near Rangoon, notorious for torture, and face national security charges
that allow indefinite detention.

Those freed reported no ill-treatment, the Opposition said. They had been
held at military mess halls and clubs and at houses kept by military
intelligence. The crackdown had been aimed at stopping a party conference
that marked a symbolic challenge to the regime by Ms Suu Kyi. (AP)
***************************************************

ALLEGED ABUSES ON PIPELINE
        
By ROBERT HORN  Associated Press Writer
May 31, 1996        

RANGOON, Burma (AP) - The Burmese military burned down villages
and used forced labor to build the infrastructure for a gas pipeline
partly owned by U.S. and French oil companies, human rights groups
said Friday.
        
The 60-page report compiled by the Southeast Asian Information
Network and Earth Rights International criticized the $1.4-billion
project, which is half-owned by Burma's ruling military.
        
The junta is currently engaged in a crackdown on the pro-
democracy movement led by 1991 Nobel Peace Prize-winner Aung San Suu
Kyi. The arrest of hundreds of her supporters has focused attention
on the regime's business dealings with foreign companies profiting
from the developing country's economy.
        
The 254-mile Burmese end of the pipeline, to be completed in
1998, will carry gas from the Gulf of Martaban to Thailand. It is
expected to earn Burma's military government $400 million a year in
foreign exchange.
        
The oil companies involved - Total of France and Unocal of the
United States - have already denied many of the accusations in the
report.
        
Unocal officials have said there have been no forced relocations
since it signed a contract for the project in 1992. Unocal says it
has been welcomed by villagers, and that charges of forced labor
were false.
        
The remote region is off-limits to foreigners without permission.
But rights advocates who traveled there surreptitiously tell a
different story.
        
They accuse the oil companies of awareness of and complicity in
forced labor and relocations, arbitrary killings, rape and torture
committed by Burma's military to build a railway, roads, helicopter
pads and other infrastructure used to bring in equipment for the
pipeline.
        
Since the contract was signed, the report says, Burmese troop
strength in the area has increased from five to 14 battalions. U.N.
investigators have said that human-rights abuses go hand-in-hand
with the presence of the Burmese army.
        
"In October 1993, up to 2,000 people every day were reportedly
being forced to labor on the construction of (the) railway," the
report said.
        
An ad last year for the Electricity Generating Authority of
Thailand - the sole purchaser of gas from the pipeline - confirmed
that 11 ethnic Karen villages have been relocated.
        
The report also cites three attacks on pipeline workers, one by a
rebel army and two by villagers.
        
Oil companies have denied that two of the attacks took place, but
villagers say they did and the Burmese army executed villagers and
burned homes in response.
        
In response to the report, Burma's state-owned New Light of
Myanmar newspaper chastised foreign critics, noting the poor
conditions under which Chinese immigrants built railroads in 19th-
century America.
        
It said Burma's ancient temples could never have been built in
the presence of "organizations such as Human Rights Watch and
Amnesty International, broadcasting stations such as BBC and VOA and
U.S. Congressmen who like to interfere in other people's affairs."
        
The Information Network campaigns on human rights and
environmental issues in Burma. Earth Rights International, also
Thailand-based, studies legal aspects of environmental issues.
 
Copyright 1996 The Associated Press. All rights reserved.
******************************************

BUSINESS GROUP UPGRADES TIES WITH BURMA

Mainichi Daily News, Wednesday, May 29, 1996
by Sumire Kunieda, Staff Writer
Japan's largest business federation set up an official channel with Burma
on Tuesday, just as the international outcry over Rangoon's round up of
opposition members hit a fevered pitch.

Keidanren (Federation of Economic Organizations) upgraded its informal
study group of private companies aiming to invest in Burma.  In its new
status, the group's official name becomes the "Japan-Myanmar Economic
Committee." The military government renamed Myanmar when it took over in 1990.

Aung San Suu Kyi, Burma's pro-democracy leader, has slammed Japan's
continued economic ties to the country's military rulers.  She has urged
that Japan cut off its investments and financial aid to the country.

The Burmese government detained more than 200 members of Suu Kyi's National
League for Democracy (NLD) leading up to the anniversary of 1990 elections
in which the NLD scored an overwhelming victory.

Masashi Oshita, official of the Keidanren's Asian Affairs Department,
admitted that now is a "bad time" to upgrade the study group.  But he added:
"There is no turning back."

The plan for upgrading the informal study group has been in the works for a
while, according to Oshita who said the private companies in the group had
looked forward to its upgrade to committee status.

The study group formed in February last year.  During its meetings, high
level officials from both the Japanese and Burmese governments have been
invited to speak.

Minoru Kiryu, a professor of Chubu University, sees the group's upgrade as
a step in the right direction.  According to Kiryu, Tokyo's decision in 1987
to end most of its official development assistance (ODA) to Burma has dealt
a serious blow to the country's economy.

He recommended a resumption of ODA under the condition that Rangoon takes
steps toward democracy.  Still, he believes that Tokyo is not likely to
resume the assistance as long as the State Law and Order Restoration Council
(SLORC) stays in power.

"The Burmese public is fed up with the disputes between the NLD and
SLORC,"said Kiryu, who has spent 30 years studying and researching in Burma.
"The situation has changed since 1990" when the public overwhelmingly
favored the opposition group.

Kiryu noted that many Asian countries, especially ones which were
colonized, had to endure military regimes before seeing their economies take
off.

On the other hand, Roger Buckley, a professor at the International
Christian University in Tokyo, called the timing of Keidanren's decision
"incredibly insensible" and "self-serving" and said the upgrade benefits
both Japanese industry and the junta.

"The (Japanese) government should try to discourage investment by
corporations, tourism and minimize high-level discussion," said Buckley, who
teaches the history of international relations.

The economic committee's formation comes as Japanese private investment is
flowing into Burma at a growing pace.

According to a survey that Keidanren conducted last December, 42 of 102
companies surveyed answered that they traded with or invested in Burma.
Nineteen companies answered that they are prepared to do so.  Fully 34 said
they are thinking about doing business with Burma sometime in the future.
Only seven of the companies surveyed expressed no such interest.

Japanese companies are not alone in their interest in Burma.  Although
Washington takes a tough line with the junta, U.S. private companies' annual
investment in Burma is more than double that of their Japanese counterparts.
Britain and France which had a relatively tiny amount of investment in
1993-94, invested 643 and 465 million dollars respectively during the first
nine months of 1995.
___________________________

If after reading the  article you are inspired to write a letter,
please address it to the man who is most responsible for this ugly
development.  (Hard as it is, please try to keep your letter polite.)  He is:

Mr. Kazuo Haruna, Chairman
Japan-Myanmar Economic Committee
Keidanren
c/o Marubeni Corporation
1-4-2 Otemachi
Chiyoda-ku, Tokyo 100-88
Fax: +81-3-3282-2331

You may also want to send a copy of your letter to:

Mr. Haruo Nishimura, Managing Editor
Mainichi Daily News
1-1-1 Hitotsubashi
Chiyoda-ku, Tokyo 100-51
Fax: +81-3-3211-2509

*****************************************

THE TOTAL STATEMENT 

" We understand the concerns raised by the television programme on ITV called 'Inside Burma, a land of 
fear'.

" As a major international company, we do not as a rule comment on the political situation in the 80 
countries we operate. However, we are well aware of the problems that Burma has been facing for many 
years and we hope that it will quickly find its own road to development.

" Our project in Burma consists of the development of a gas field offshore and the building of a gas pipeline 
from the Andaman Sea to the Thai border. Through its presence in Burma, TOTAL has decided to 
participate in the economic development of this country for the benefit of a people who have been isolated 
for many years and wo are in need of energy and hope to shape their future. Indeed, we think it is in the 
interest of a country rich in confirmed energy resources to open up to the rest of the world, to foster social 
change, and to ensure peace in their land.

" We do not intend to express an opinion on the cause defended by the presenter of the programme or on 
his sincerity. However, the report contains many allegations and factual errors which could give a false 
perception of our project. It suggests that TOTAL and US-based UNOCAL, one of our partners in the 
building of the gas pipeline for the Yadana project, would have used or supported the use of forced labor.

" Such allegations are completely unfounded.

" First of all, our project has absolutely nothing to do with the railway of Ye-Tavoy wrongly presented as 
the continuation of the second World War 'death railway'. Our future pipeline is perpendicular to the Ye-
Tavoy railway. during the pipleine construction we will not use the railway. The latter is technically 
incapable of transporting the very large equipment required for a pipeline project. All the pipeline 
equipment is transported by other means such as barges and trucks, and under our supervision.

Furthermore, as far as the laying of the pipeline is concerned, TOTAL invites specialized companies of 
international reputation to make offers for both the offshore and the onshore sections. The selected 
contractors will obviously operate under the same conditions and with the same respoect for international 
employment legislation we ourselves apply everywhere in the world - in particular, the right of every 
employeee to a work contract and personal salaary, as well as working conditions which respect the private 
life, religion and opinions of each. "

It is obviously unthinkable for TOTAL - whether directly or indirectly - to resort to forced labor or any kind 
or to child labor. 

Finally I would like to point out an error in the film's commentary - the amount of money that will be 
provided to the Burmese authorities is not 400M$/year over 30 years, but more or less half of this amount.

We sincerely hope that this has satisfactorily addressed your concern about our project in Burma.

Yours faithfully, 

Joseph Daniel 
Vice-President Public Affairs 
_____________________

We at Friends of Burma France, encourage all readers and interested Free Burma activists and their friends 
to write immediately to TOTAL SA and voice your comments and observations now. Remember, silence 
breeds complicity and indifference. DEBATE TOTAL NOW!
Send your letters now : 

GROUPE TOTAL  
Thierry Desmarest, CEO, President of Exploration and Production,
HQ: 24 Cours Michelet 92800 Paris La Difense 
FRANCE
Tel: 33-1-41-35-40-00  Fax: 33-1-41-35-64-65

Rigis Gaignault
Direction de la Communication
TOTAL SA
Tour Total
24 Cours Michelet 92800 Paris La Difense Cedex
FRANCE
*******************************************

STATEMENT OF NATIONAL DEMOCRATIC FRONT (NDF)'S 
POSITION ON CURRENT POLITICAL SITUATION IN BURMA
Date, 30, May 96

1. the mass arrest of members of parliament of the National League for
Democracy (NLD) shows that the Slorc is acting expressly in opposition to
the democratic rights of a legally instituted political party so as to
perpetuates its military dictatorship. We, the National Democratic Front
(NDF), strongly protest and condemn these acts of perfidy.

2. At the conference of the NLD, held on May 27, 1996, the eminent leader,
Daw Aung San Suu Kyi, in her speech to the masses, mentioned that the NLD
leadership is determined to struggle on, a step further, for the removal
of the military dictatorship and the establishment of a democratic system,
yearned for by the people. The NDF's regards this as a pledge to firmly
fulfill the will and defend the interest of the entire people.

3. It is evident that the refusal to transfer power, up to this day, to
the NLD which won 85% of the seats contested in the May 1900 general
election, the holding of a sham national convention, making its lackey
organization, the so called Union Solidarity and Development Association
(USDA), to demonstrate its support to the 104 principles for a state
constitution laid down by the sham national convention and etc., are
blatant attempts by the Slorc to perpetuate and consolidate the military
dictatorship.

4. Representing all the nationalities and the entire people, the NDF has
been struggling for the emergence of a genuine federal union based on
equality and self-determination. This struggle has been going on since the
time of Burma's independence in 1948.

5. Some resistance organizations of the nationalities, for various
reasons, have to agree to a truce with the Slorc. Though they are desirous
of resolving the political problems by political means, it is clear that
the Slorc is not anxious to show even a pretense of willingness to resolve
political problems through a political dialogue.

6. The Slorc military clique will never forsake its dictatorial powers and
ill-gotten privileges easily. It will continue to use various strategies
so as to cling on to them forever.  Accordingly, it is vitally necessary
for the pro-democracy forces led by Daw Aung San Suu Kyi, and the
resistance forces of the nationalities to coordinate their struggles.

7. We, the NDF, seriously call upon the Slorc to release all the members
of parliament arrested since May 20th, and all the political prisoners
arrested previously.

8. If the Slorc continued to perpetrate the repression, the situation will
deteriorate into a more dangerous state and, if so the Slorc will be held
entirely responsible for it.

9. We, the NLD, earnestly call upon the governments, the NGOs and the
democratic forces of the world to strongly condemn the Slorc for its
unjust acts, including the arrest of members of parliament from the NLD,
and apply pressure on the Slorc by effective means so that the democratic
system will be established sooner, in Burma.

10. W, the NDF, call upon officers and troops of the Burma Army to
remember that the army was born of the people and its primary duties are
to protect the lives and interest of the people. Now is the time for them
to boldly stand up and stoutly act in defense of the interest of the
people and their very lives.

Central Committee National Democratic Front 
******************************************

MYANMAR ENCOURAGES WOOD-BASED INDUSTRY

Copyright 1996 Xinhua News Agency
DATELINE: yangon, may 28; ITEM NO: 0528049
Myanmar is encouraging wood-based industry, said Myanmar minister for
forestry lieutenant general chit shwe.  Speaking at a meeting here on monday
with local industrialists, the minister called for full support of the private
sector in the development of forestry, the official paper "The new light of
Myanmar" reported today.  He said the government is providing assistance to
private entrepreneurs in wood-based industry in terms of market expansion,
investment capacity and technical know-how.  Meanwhile, Myanmar has exempted
some export items from commercial tax including forestry products since may 15,
according to earlier official report.
*****************************

SOUTHEAST ASIA; BURMA; EE/D2623/B
FOREIGN RELATIONS;

Copyright 1996 British Broadcasting Corporation   
May 27, 1996, Monday
Military leader Khin Nyunt urges students not to "fall under the influence of
others"
SOURCE: Radio Myanmar, Rangoon, in Burmese 1330 gmt 26 May 96
[4] Excerpts from report by Burmese radio

Lt-Gen Khin Nyunt, chairman of the Myanmar Burma Education Committee and
secretary-1 of the State Law and Order Restoration Council SLORC , attended and
delivered an address at Mandalay Hall's education funds and award presentation
ceremonies held in Room 108 of Mandalay Hall at Yangon Rangoon University at
0815 today 26th May .

In his address, SLORC Secretary-1 Lt-Gen Khin Nyunt said: Announcer-read ...
While meeting today's new generation of students I would like to talk about
international affairs. Formerly, the two world's powerful blocs resolved
international affairs while maintaining their balance of power. They didn't
reach to extreme solutions in resolving affairs because neither side could act
partially or dictate matters. Today one of the blocs that tried to transform
from one system to another in haste has come under the direction and management
of the other bloc and disintegrated. Now there is only one powerful bloc and
there are no other blocs to control this powerful bloc's manipulation. That is
why, this bloc - wanting to be a superpower - is trying to control small
developing countries, and so far many countries have came under the influence of
this bloc.

The people of Myanmar can never forget the misfortune of Myanmar under more
than 100 years of servitude, and they also realize that their country will
disappear if it comes under the influence of others. The Union of Myanmar is a
union that comprises national races so there is always a threat from plans to
disintegrate the union by creating discord among the nation's races. That is
why, state leaders with great tradition established the national consolidation
to prevent the union from disintegrating, and have continuously defended the
long-term existence of the Union of Myanmar.

The Western bloc is always trying to get Myanmar under its influence because
Myanmar is located strategically in Southeast Asia. While properly observing the
Five Principles of Peaceful Coexistence, Myanmar is maintaining relations with
the international community. In particular Myanmar is cooperating with
neighbouring countries and ASEAN nations in a friendly manner. There is a group
in the country that is being deceived by the instigation from a country that
wants to be a superpower and that uses democracy and human rights as a pretext
to get Myanmar under its influence. This group that sees only the bait but not
the hook, that thinks only about becoming rich and prosperous, that predicts
that Myanmar will prosper and become rich like that country in a short time,
that ignores the conditions of Myanmar and other neighbouring countries, and
that accepts the deception of others as reality is following the path it has
been shown.

Following the intrusions, Myanmar which had been a kingdom for thousands of
years, faced misfortunes and came under servitude but Myanmar gained its
independence through the unity of the national races. This is why it is
necessary for all of Myanmar to nurture the spirit to never become servile or to
fall under the influence of others.

He also urged the new generation of students to have the spirit to build the
country on a self-reliant basis and to be fully convinced that they will never
let the country become servile again, and will never let Myanmar become
dependent and fall under the influence of others, and that they will uphold
three national causes when they become the leaders of the country in the future.
*****************************************

BURMESE DEMOCRATS DEFY GENERALS MASS ARRESTS 
OF MPS HAVE FAILED TO

Stifle the opposition, reports Philip Sherwell in Rangoon
BYLINE: By PHILIP SHERWELL
THE Burmese opposition held its first party conference for six years
yesterday at the home in Rangoon of the pro-democracy leader Aung San Suu Kyi,
despite the recent round-up of more than 250 of her key supporters by the ruling
junta. To loud applause, Miss Suu Kyi told delegates that the National League
for Democracy (NLD) was stepping up its struggle, and the current three-day
meeting would be the first in a series of party congresses. The announcement is
likely to provoke a tough response from the military hardliners, who accuse her
of trying to form a parallel government. She said that the NLD's flagship policy
was the recognition of the results of the 1990 elections when the Burmese people
voted "to replace dictatorship with democracy".  Although the party won a
landslide victory, the generals refused to accept the outcome and never convened
parliament, actions Miss Suu Kyi called "illegal". The detentions appeared to be
an attempt by the junta to prevent yesterday's meeting from taking place. MPs
were taken from their homes in night-time raids or picked up as they tried to
travel to Rangoon, although the authorities said they had been detained only for
questioning. But the crackdown partly backfired after it gained international
publicity for the conference and earned a fierce rebuke from Washington. The NLD
leader and her colleagues had privately expected the authorities to put up
barricades overnight to block access to her home. But, apart from the usual
huddle of military intelligence agents monitoring the comings and goings at her
compound, there was no security presence.   As tensions increased in Burma, the
White House said that President Clinton was to send a special envoy to consult
European and Asian allies about a co-ordinated response to the junta. The US
urged the regime to release all detainees immediately and unconditionally and
recommended its own citizens not to travel to Burma. The NLD conference has
prompted the biggest confrontation in Burma since Miss Suu Kyi's release from
house arrest last July. But yesterday passed off without incident, despite
venomous attacks in the state media on "the democracy sorceress" and her
"Aids-infected" party. Miss Suu Kyi, a Nobel Peace Prize winner, has
consistently urged her supporters not to take their protests back to the
streets, where unarmed pro-democracy demonstrators were massacred by the
military in 1988. Opening the meeting, she said: "However much they [the junta]
try to ignore the results of 1990, they will not be able to annihilate the
desire for democracy that has taken root in the hearts of our people. "We cannot
build the future of our country on a foundation of broken promises, insults to
the people's elected representatives and opposition to the will of the people."
The gathering, on the sixth anniversary of the 1990 ballot, was originally
intended to be a meeting of the elected NLD MPs. But following the detention of
at least 238 deputies last week, only 17 MPs made it to the first session. The
rest of the chairs were taken by more than 250 delegates from Rangoon and the
surrounding districts. Many wore the party's tangerine tunic and badges
displaying a fighting peacock, the symbol of Burmese resistance, and portraits
of Miss Suu Kyi's father, Aung San, who led the country to independence from
Britain. In a further challenge to the regime, Miss Suu Kyi said they would be
discussing "the kind of constitution that Burma deserves" and not the sham
documents being drawn up by the junta's rubber-stamping National Convention. She
said the decision to press ahead with the meeting proved that "perseverance pays
and we should not be intimidated . . . I think the authorities probably expected
us to back down". Later a crowd of 10,000 massed outside the lakeside compound
to hear her weekly Sunday address. "We are no longer angry, we are no longer
intimidated. But we are determined, because we have a job to do and we are going
to carry on," said Nyunt We, an executive committee member and one of the few
MPs present.
******************************************

SPEEDY FREIGHT HANDLING ARRANGED AT YANGON PORT

Copyright 1996 Xinhua News Agency
Yangon, May 29; ITEM NO: 0529060
Arrangements are being made on prompt entry of freight vessels into Yangon
port and speedy freight handling, according to the new light of Myanmar today.
at a coordination meeting here tuesday of the committee for bringing about
speedy freight handling at ports, Myanmar minister at the Prime Minister's
office brigadier general Lun Maung, who is vice-chairman of the committee,
warned against late claims of imported cars and goods at yangon port, adding
that consignees would be fined and action be taken against them for the late
claims.  Meanwhile, Myanmar minister for transport lieutenant general Thein Win,
at a recent contract signing ceremony on building a container wharf at Yangon
port, stressed the need to enhance the capacity of ports to cope with the rising
export and import services.  He said that by the end of this year, the capacity
of freight handling at Yangon port would improve.  Yangon port, Myanmar's main
gateway to the world, handles nearly all of its imports and over 90 percent of
exports.  at present, the port handles only 7.037 million tons of cargo annually
which is far from coping with the rising imports usually taking many days for
freight handling.
*****************************

CHINESE COMPANY TO BUILD WHARF IN RANGOON
TRANSPORT;

BBC Summary of World Broadcasts
SOURCE: Source: Xinhua news agency, Beijing, in English 0319 gmt 21 May 96
   [16] China's Yunnan Machinery Equipment Import and Export Corp (YMEC) on 21st
May signed a contract in Rangoon with the Myanmar Port Authority to carry out
the Bo Aung Gyaw wharf extension project in Rangoon, Xinhua news agency
reported. The project, to be completed within 21 months, will cost about 30m US
dollars. The YMEC will design and build a wharf that can handle container ships.

Last June, C and P Holdings Pte Ltd of Singapore signed a contract to build
two container terminals at Thilawa port in Rangoon, initially costing 48.16m US
dollars.
****************************

OPPOSITION ACTIVITIES; "ANTI-PEPSI"

Opposition leader Suu Kyi berated for "anti-Pepsi" campaign
SOURCE: Source: Myanmar Alin', Rangoon, in Burmese 22 May 96 p5
 [5] Excerpts from report by Burmese newspaper Myanmar Alin'

   Gradually the inner self and true character of a woman referring to Aung San
Suu Kyi - who says in her high-pitched voice that she respects the people,
regards the people as her parents and will work from the forefront for the
people - is becoming clearer, the way the whitewash on a tree trunk peels off.

   The woman - who does not even use local pepper but craves foreign goods, who
does not use Myanmar's Burmese currency but foreign exchange certificates, and
who is also the mother of two mixed-race sons - is recklessly and impudently
saying things that concern the affairs of Myanmar Burma . I have learned this
from a radio station referring to the BBC that is providing a service to her.

   In a loud and rude manner, she told the international community not to trade
and invest in Myanmar and also told tourists not to visit. In a brazen manner,
she also instigated the people by saying that democracy-loving people do not
drink Pepsi. This act of instigation is to confuse people who do not have any
information and to achieve political gain. The people, who first came to know
about the Pepsi Company headquarters announcement that it would withdraw 40 per
cent of its investment from the Pepsi Company in Myanmar, use their chicaneries
to exploit the situation. Some sick Myanmar people in the United States and
England, who cannot afford to buy or who do not like Pepsi, also made loud
noises that they do not drink Pepsi because of the democratic cause.

The instigation to boycott Pepsi started when these loud noises reached their
counterparts in Myanmar. Actually, the withdrawal of a small investment by a big
company like Pepsi, which has a yearly income of 30bn US dollars, is not because
of slander by the foreign media and lackeys in the country, nor because of
pressure from democracy-loving students and consumers from the United States and
England.

Father Jilama name as transliterated , who takes care of more than 39,000
shares of the Maryknoll Fathers and Brothers religious organization and
Missionary O'Barake name as transliterated of the Immaculate religious
organization, caused some trouble at the Pepsi Company's annual
shareholders'meeting. This incident was not related to politics; it was a
shareholder problem commonly faced by a company in business.

The main Pepsi Company reduced its investment in Myanmar for this reason. The
reduction of investment did not take place because of the interdependence
between politics and economy. The action of the main Pepsi Company is not
cutting off trade with Myanmar. The action taken by the main Pepsi Company is to
sell its 40 per cent shares and continue to sell needed supplies to the
Myanmar Pepsi Company.

The BBC, while exploiting the situation, also broadcast reports implying that
the students and people in Myanmar are boycotting Pepsi for a democratic cause.
In other word, the BBC provided a service to spread agitation to the whole of
Myanmar.

Whether or not the people boycott Pepsi can be proven by the scenes of daily
distribution of Pepsi in small and big cars. They are spreading rumours, and
these rumours can scare consumers. There was an incident in which a type of
canned fish disappeared from the market because of rumours that somebody found a
human finger inside a can. Moreover, people stopped eating at a well-known rice
noodle shop because of rumours that the shop owner used eels from the cemetery
to cook the curry that goes with the rice noodle. The sale of popular Coca-Cola
was slowed down completely in the Middle East, where the majority of Muslims
reside, when there were rumours that pig's blood had been mixed in Coca-Cola.

Now there are rumours about Pepsi that the mixture of seasoning powder and
Pepsi can intoxicate a person or make that person unconscious... These
fabrications and efforts to scare people into not drinking Pepsi are
praiseworthy.

Moreover, they say that university students bring seasoning powder to the
university to mix and drink with Pepsi. They spread rumours that a mixture of
seasoning powder and Pepsi is now used as a substitute for Phensedyl cough
mixture which is consumed by drug addicts in Burma . These rumours are designed
to tarnish the name of Pepsi and to scare the shops selling Pepsi near the
university. On one hand, they spread rumours; on the other hand, they make gains
by political exploitation.

Actually, Pepsi is not Myanmar's staple food. Nobody is saying that you will
not become a modern person if you do not drink Pepsi. It does not matter if
there is no Pepsi. I once asked a family that works abroad and drinks Pepsi like
water during vacation in Myanmar. They said they drink Pepsi instead of water
and think it is good for the health and added that the people of Myanmar prefer
the taste of Pepsi to Coca-Cola. Pepsi has its own customers and I do not think
it is good to destroy the business with its own patrons when a boycott of Pepsi
will not affect the main Pepsi Company. I reality, it will only affect the small
retail shop owners who sell Pepsi.

Because of that woman and her associates, not only Pepsi but a large number
of people have also lost their businesses, especially people working in the
construction business, which relies on foreign investment, and people with good
earnings in the tourism industry. These people are ordinary people and
middle-class entrepreneurs. They should know this fact. Anyway, the people of
Myanmar now know very well that they cannot mix and drink democracy and Pepsi.
**************************************

FOREIGN CAR FIRMS GEAR UP FOR BURMA'S 
NASCENT AUTO MARKET

By Philip McClellan
RANGOON, May 30 (AFP) - Foreign companies are beginning a drive into
Burma's nascent auto market, hoping that the country's fitful economic awakening
and a growing number of consumers will fuel demand for new cars.

The country's first-ever auto show opened here last week, attracting a steady
stream of Burmese businessmen and officials eager to catch the latest offerings
from firms such as Germany's BMW and Honda of Japan.

A handful of foreign auto firms have set up shop here and others are on their
way, hoping to sell their wares in one of the poorest countries in the region,
and one in which the dominant market is for used cars from abroad.

"Basically the word has gotten out that Myanmar (Burma) is open for
business," said Charles Stroud, a manager for Britain's Land Rover who set up
one of the first auto showrooms here in a joint venture with BMW.  

"You only need one person to jump in the pool to see how cold or warm it is
and the rest will follow," he said.

Joint ventures involving Japanese auto giants Honda, Nissan and Mazda are all
waiting impatiently for distribution licences to come through so that they can
sell their wares from showrooms in downtown Rangoon.

"We are still waiting for a licence, but hope to get one within two weeks,"
says Patrick Sain Yin, a Burmese who operated a used car dealership before he
was approached by Nissan to open a sales office here.

"Things are looking very good as our country is opening up and some people
have been getting very rich," he said.

However, most car firms say they are not expecting business to explode
overnight, and that they are merely taking their positions in the race for a
market which has just begun to open up to the outside.

Sain Yin said Nissan hoped to sell 50 units by the end of the year, and boost
that number to 200 vehicles for calender 1997. Land Rover has set a sales target
of 100 units this year, with the aim of moving some 300 cars a year within five
years.

"At the moment we are just testing the waters and are doing a lot of market
research to see how people think, what their buying habits are, who makes
choices for the family and so on," said Arndt Focken, BMW's country
representative.

A major marketing problem for car firms is that few people can afford the
huge prices required to drive off with a new Mazda or Nissan car -- let alone
the exorbitant prices demanded by the likes of BMW and Range Rover.

The cheapest Mazda model on show at the Rangoon motor show had a 23,000
dollar price tag, while a dark blue BMW 735 IL surrounded by a crowd of coveting
admirers, was going for over 100,000 dollars.

Analysts say the only people able to afford such cars in Burma are the
military, government officials and wealthy local businessmen -- as well as
foreign investors and embassy staff.

In particular demand, according to car company representatives at the Rangoon
show, are four wheel drive vehicles -- especially for the military and mining
companies operating in the rugged north of the country.

Car firms say that while the market for cars in Burma is growing, bringing
them into the country is hampered by huge import taxes.

These taxes can be as high as 500 percent, a Burmese auto consultant said,
adding that they were unlikely to come down any time soon.

Another problem for auto firms here is the market's reliance on cheap second
hand cars, making expensive new vehicles difficult to sell.

"It's very difficult breaking into this market right now, because 90-95
percent of the vehicles sold here are second hand cars from Japan," said Satoshi
Suzuki, a representative for Mazda here.

Suzuki said that some 2,000 second hand cars were being brought into Burma
every month, as was evident by the capital's growing traffic woes.

"Unless the government stops the sale of second hand vehicles, it won't be
easy for us to sell new cars," he said.

The week-long auto show, which Stroud said had been attended by almost all
senior government officials, ends on Friday.
*****************************

BURMESE DISSIDENT PRESSES DEMANDS, 
PUTTING JUNTA ON DEFENSIVE

Copyright 1996 The New York Times Company   
BYLINE:  By SETH MYDANS
SINGAPORE, May 29
In the last few days, the military Government of Myanmar has imprisoned
hundreds of its opponents, filled the controlled press with threats against
them, and gathered tens of thousands of people for pro-Government rallies. But
it is on the defensive as it has not been for years.

After a mass gathering of her supporters that the military had tried
desperately to suppress, the Burmese pro-democracy leader, Daw Aung San Suu Kyi,
said today in a telephone interview from her home in Myanmar, formerly known as
Burma, that she planned to move forward with a program of action that is a
direct challenge to the ruling junta.  

She said her party, the National League for Democracy, would start
immediately to prepare a new draft constitution that would remove the military
from power and begin to formulate its own economic policies. And she said she
planned to hold more mass meetings, in defiance of Government threats.

The Government seemed inconsistent in its response, in what some analysts
said could be a sign of internal divisions.

It arrested what Mrs. Aung San Suu Kyi said were 252 of her party's elected
representatives, plus 12 supporters, in a clear effort to block a three-day
party meeting that began on Sunday. Although only 18 delegates managed to
attend, the Government permitted crowds of cheering supporters that diplomats
estimated at 10,000 people to gather in front of her house.

And in the press this week, commentaries appeared to take slightly varying
approaches, some warning that the opposition is committing treason by acting at
the behest of foreign governments, and others praising democratic principles.

Whether or not there are divisions, Mrs. Aung San Suu Kyi has left the
Government with no easy options, and for the moment is holding out only a very
thin olive branch.

"What we want is dialogue," she said, "but only under conditions in which
such a dialogue can be useful.

A foreign diplomat in Yangon, formerly Rangoon, said the defiant crowds that
gathered at her home were a sign that her popularity remains high, despite the
Government's attempts to discredit her.

"Now they have a dilemma," the diplomat said. "If they have a moderate
reaction they see themselves as losing face. If they overreact the way they have
this weekend, they will continue to raise international outcries."

The meeting had been planned to mark the sixth anniversary of parliamentary
elections in 1990 in which the opposition won 392 of 485 contested seats. The
military, which had taken power in 1988 after the killings of hundreds of
pro-democracy demonstrators, refused to give up power.

Its policy since then has been to stifle opposition while opening its
economy. Last July it released Mrs. Aung San Suu Kyi from six years of house
arrest in the hope of quieting human rights protests abroad. Its wish seemed to
be that attention would now focus on economic development and that the
democratic opposition would lose momentum.

The events of the last few days appear to have dashed these hopes.

In addition, the Government may be having less success in improving the
economy than some indicators seemed to show. Although there is considerable new
foreign investment, the currency remains weak and there are signs of food
shortages and rising rice prices.
**********************************

SINGAPORE FIRM TO INSTALL PHONE SYSTEM IN MYANMAR

Copyright 1996 Xinhua News Agency
DATELINE: yangon, may 30; ITEM NO: 0530040
   singapore's ericsson telecommunications pte ltd. will install digital
european cordless telecommunications (dect) system in five myanmar cities, the
first radio telephone system in the country, the official new light of myanmar
reported today.  under an agreement signed here wednesday between the state-run
myanmar posts and telecommunication and the singaporean company, the
installation will be made in yangon, mandalay, pakokku, monywa and twantay.  the
agreement will add 1,000 dect lines in yangon, 1,000 in mandalay, 400 in
pakokku, 350 in monywa and 250 in twantay, the report said.  since last year, a
number of foreign companies have signed contracts with the myanmar
communications authorities to install telephone lines in the country.  they are
from israel, japan, the united states and australia.
******************************

MITSUI ENGINEERING LIFTS PROFIT 58.7 PERCENT

Copyright 1996 Agence France Presse   
DATELINE: TOKYO, May 29
Japan's Mitsui Engineering and Shipbuilding Co. Ltd.  reported a 58.7 percent
increase in consolidated pre-tax profit from a year earlier to 4.3 billion yen
in the year to March.

   One of Japan's leading shipbuilders and the world's top producers of marine
diesel engines, it said in a statement received Wednesday revenue rose 3.9
percent from a year earlier to 380.7 billion yen.

   Mitsui Engineering, which is involved in steel structure joint ventures in
Indonesia and Vietnam, and a shipbuilding tie-up in Burma, did not give
consolidated forecasts for the year to March 1997.
******************************

RELEASING BURMA'S OPPOSITION LEADER HAS EXPOSED 
THE DIVISIONS IN THE MILITARY,

Copyright 1996 The Financial Times Limited;   
Writes Ted Bardacke
When Burma's military junta released the pro-democracy leader Ms Aung San
Suu Kyi from house arrest nearly a year ago it was widely seen as a sign of
strength. The economy was growing and ethnic unrest had been subdued. Freedom
for their most feared opponent was a luxury the State Law and Order Restoration
Council (Slorc) felt it could afford.

At first they seemed to be proved right. Japanese business started to take a
keen interest and the country was promised admission to the Association of
South-East Asian Nations.  

Events of the past week have taken off some of that shine. The regime's
hardline response to Ms Suu Kyi's seemingly innocuous plans for a conference of
her National League for Democracy has backfired both internally and externally.
Despite harsh warnings from the official media, the crowds who gathered outside
her house were the largest ever, and external criticism came not only from the
West, as expected, but also from previously silent partners such as Japan, South
Korea and Thailand.

But despite the regime's claims that last week's arrests of more than 250
NLD leaders saved the country from 'anarchy', the government, backed by a
380,000-strong army, is not about to be challenged by a small unarmed group with
little more than courage and a six-year-old election victory on their side.

'Short of violence, there isn't going to be much change in the short term,'
said Mr Eugene Davis, managing director of Finansa Thai, a merchant bank which
invests in Burma. 'Whatever she (Ms Suu Kyi) does won't undermine stability.
Slorc is pretty firmly in control.'

'Slorc actually thinks they have been lenient,' said one observer in
Rangoon. 'They can always crack down for real. Some officials might worry about
what the international reaction would be, but many really mean it when they say
they don't give a damn.'

Much of Slorc's bravado stems from having been able to tame the ethnic
strife that plagued them through much of the early 1990s. Ceasefire agreements
have been signed with 15 of the 16 armed groups operating around the country and
negotiations are currently under way with the last to hold out, the Karen
National Union. Khun Sa's opium army surrendered early this year, leaving the
drug trade untouched but allowing Slorc to redirect troops elsewhere.

Meanwhile, the economy continues to grow, although how much and why is a
subject of debate. Because of a dual exchange rate which subsidises the most
important state enterprises, 8 per cent growth rates are probably inflated. The
budget deficit and consumption levels have been increasing while overall and
private investment (as a percentage of gross domestic product) have been
declining, according to the International Monetary Fund.

Yet because most private investment is funnelled through joint ventures with
state enterprises or other government-affiliated organisations, Slorc officials
are the ones that feel the economic growth most directly and are able to funnel
some of the proceeds into increased military spending.

But if Ms Suu Kyi cannot directly challenge Slorc's rule, she can provoke
it, as she did again yesterday by announcing that the NLD would draw up a new
constitution to rival that being drafted by the military.

This fluid situation is likely to expose rifts within Slorc. 'As long as
they did nothing, it was easy to remain unified,' one diplomat said.  'But if
they are forced to react, debates about how to do so are bound to appear. That
could be a real problem for them down the line.'

Negotiations with the ethnic groups already may have provoked some
disagreements, analysts say. Efforts to deal with the groups by Gen Khin Nyunt,
Slorc's first secretary, have been viewed with some scepticism by the more
hardened military men who would prefer to pursue all-out military victory.

This rift is said to extend into how to deal with the NLD, with the military
establishment preaching relative restraint to avoid bearing the responsibility
for a potentially bloody crackdown, and Gen Kyin Nyunt taking a harder line,
fearing that momentum for the NLD could upset the delicate balance he has forged
in the provinces.
****************************

INDIAN SUGAR MILLS SEEK EXPORT BOOST

BYLINE: By KUNAL BOSE
DATELINE: CALCUTTA
Copyright 1996 The Financial Times Limited;   
                                Financial Times

The Indian Sugar Mills Association has asked the federal government for a
further release of 1m tonnes of sugar for export in the current season, ending
September 30. Earlier, the government allowed the export of 1m tonnes in two
equal instalments.

'We hope to get the sanction for additional export as soon as the new
government settles down to work,' said Mr Vivek Saraogi, president of Isma.  

'There is a strong case for the country exporting 2m tonnes of sugar since
the production in the current season will be a record 15.8m tonnes, against the
earlier estimate of 15.5m tonnes and last year's output of 14.64m tonnes.
Moreover, we opened the year with stocks of nearly 5.6m tonnes. The surplus,
after providing for domestic consumption, will be unmanageable, if we do not
export sugar in a big way.'

    The Indian Sugar & General Industries Exim Corporation, the agency for sugar
exports, has made sales contracts for over 900,000 tonnes out of the sanctioned
quota of 1m tonnes. Shipment of 550,000 tonnes has already been completed.

    'We have been using as many as eight ports for exporting sugar,' said Mr Om
Dhanuka, an Isma spokesman. 'The Bombay port will not be able to handle sugar
once the monsoon starts. But there will be no let up in export shipments from
the other ports. ISGIEC should be able to ship out everything before the current
season is over.'

    Among the principal buyers of Indian sugar are Sri Lanka, Pakistan,
Bangladesh, Burma, Indonesia and Russia. In addition to open market sales India
is exporting a total of 33,893 tonnes of raw and white sugar to the European
Union and the US in the current season.

    While the industry is confident that the government will allow further
exports, it does not know whether its appeal for expanding the buffer stock by
1m tonnes to 1.5m tonnes will meet with official approval. The government
created a buffer of 500,000 tonnes in January 1996 and it pays for the cost of
interest, storage and insurance. It is because of the cost factor that the
government may not raise the size of the buffer.

    'But unlike buffer, the export does not impose any burden on the
government,' said Mr Dhanuka. 'The loss in export sales is equitably shared by
all the sugar factories. Moreover, the excess supply of the commodity in the
current season is a guarantee that sugar prices will remain low whatever the
volume of export.'
*****************************

CRUELTY AND KINDNESS

Copyright 1996 Newspaper Publishing PLC   
The Independent
May 29, 1996, Wednesday
BYLINE: Kate Menzies
Sir: I recently returned to Burma after a 54-year absence (travel column, 25
May). I had agonised over whether or not to go; whether it would be colluding
with an odious tyranny or whether the increasing presence of foreigners might
give hope to a cruelly imprisoned people.   In the end, I went; not with a tour
but travelling by myself. I squashed into sardine cans of trucks, met ordinary
Burmese and used my eyes and ears.

    During the month I spent in Burma, people risked imprisonment - and probably
torture - to talk to me about the military regime and the crimes it had
committed: its cruelty, its ruthlessness, its stupidity. All loathed and
despised the thugs who oppressed them.

    The much-vaunted stability of the country is a sham. It's about as stable as
the old buildings in Rangoon, spick and span painted in front and filthy and
falling to bits at the back. Burma is a country of chain gangs, torture and
corruption. It's also a potential tourist gold mine which is why the Japanese
and Chinese are pouring money in. While the American State Department complains
about human rights abuses our government remains silent.

    If Aung San Suu Kyi had said four months ago "Please don't go to Burma" I
wouldn't have gone. I was a small child there and had memories of kindness,
laughter and warmth. Those qualities - incredibly - are still evident, but I
won't go back until the National League for Democracy is in power.
***********************

ISOLATE BURMA'S JUNTA

London W8
International Herald Tribune, May 29, 1996
The thuggish military men who rule Burma have now rounded up more than 200
democracy activists who were planning to meet last weekend. Again they show
their regime, which goes by the appropriately unappetizing acronym of SLORC Q
State Law and Order Restoration Council Q to be worthy only of international
contempt.

   To the extent that Americans are at all familiar with Burma's plight, it is
thanks to the courage of Daw Aung San Suu Kyi, leader of the nation's democracy
movement. Her National League for Democracy won an overwhelming victory in
parliamentary elections in 1990, but SLORC refused to give up power, putting her
under house arrest and jailing many of her colleagues. Although Daw Aung San Suu
Kyi was nominally freed last July, after winning the Nobel Peace Prize, the
regime has refused even to begin talks on a tran-sition to democratic rule.  

   It was to celebrate, as it were, the sixth anniversary of those betrayed
elections that Daw Aung San Suu Kyi called a meeting. In fear of the democrats'
popularity, SLORC rounded up many of her supporters, including should-be members
of Parliament. This is far from SLORC's only abuse. Even before the latest
events, hundreds of political prisoners remained in jail, according to Human
Rights Watch/Asia. The regime promotes forced labor, press-ganging citizens to
act as porters in areas of armed conflict and to build roads, according to the
U.S. State Department. It has built a massive army, equipped mostly by China.
And Burma is the world's chief source of heroin.

   The United States already has barred official aid or government loans to
Burma and has influenced the World Bank and other multilateral organi-zations to
follow suit. Now Senator Mitch McConnell of Kentucky wants to bar private
investment as well, a step supported by many of Burma's democrats. U.S. firms
are the third-largest investors, Senator McConnell said, led by Unocal Corp.,
which is helping develop Burma's natural gas fields. The structure of the
dictatorship ensures that much of the benefit of foreign investment goes into
the generals' pockets.

   The most active proponents of trade, investment and engagement with Burma
have been its neighbors in Southeast Asia. A nation of 42 million with high
literacy rates and abundant natural resources, Burma cannot be ignored. But
after SLORC's latest abuses, the burden is on those advocates of ''engagement''
to show what they have achieved and explain why sanctions should not be
tightened. As much as South Africa under apartheid, Burma deserves to be a
pariah until SLORC has given way.
*******************

MYANMAR MINISTER OF FORESTRY VISITS CHINA

Copyright 1996 Xinhua News Agency
Yangon, May 29; ITEM NO: 0529112
Myanmar minister for forests lieutenant general Chit Swe left here for
beijing today on a week-long visit to china.  The Myanmar minister is visiting
china at the invitation of chinese minister of forestry xu youfang.  The
five-member Myanmar delegation will visit Beijing, Shanghai, shenzhen and will
have discussions with the Chinese side on cooperation in the field of forestry.
The Myanmar delegation was seen off at the Yangon airport by Myanmar minister
for home affairs lieutenant general Mya Thin and other senior officials.


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