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The BurmaNet News, March 4, 1997
- Subject: The BurmaNet News, March 4, 1997
- From: strider@xxxxxxxxxxx
- Date: Tue, 04 Mar 1997 03:11:00
------------------------ BurmaNet ------------------------
"Appropriate Information Technologies, Practical Strategies"
----------------------------------------------------------
The BurmaNet News: March 4, 1997
Issue #656
HEADLINES:
==========
KYODO:JAPAN TO EXTEND 4 BIL. YEN DEBT-RELIEF GRANT
REUTER:AUSTRALIA CONDEMNS RANGOON OVER KAREN WAR
BURMANET: REFUGEES SPEAK OUT
KNU: PRESS RELEASE NO. 3/97
REUTER:BURMA'S ECONOMY FACING RANGE OF PROBLEMS
AP-DOW JONES:S. KOREA-POSCO PLANS JOINT VENTURE
LETTERS:CONGRESSMAN WRITES TO ALBRIGHT, CLINTON
ASIA TIMES:STATE KEEPS A FINGER IN ALL AIRLINE PIES
THE NEW LIGHT OF MYANMAR: NEWS BRIEFS
AP: ASEAN BROADCASTERS TO FORM CONFEDERATION
-------------------------------------------------------------------------------
KYODO:JAPAN TO EXTEND 4 BIL. YEN DEBT-RELIEF GRANT TO MYANMAR
March 3, 1997
TOKYO - Japan will provide Myanmar with 4 billion yen in a
debt-relief grant to help ease the country's debt burden arising from
repayment of yen loans, the Foreign Ministry said Monday.
The two countries exchanged notes in Yangon earlier in the day on the grant
to be given as a portion for the April-September first half of fiscal 1996,
which ends March 31, the ministry said. Since Myanmar was declared a
least-developed developing country (LDDC) in 1987, Japan has extended
debt-relief grants to cover interest payments and repayments of part of the
principal with the intention of producing an effect equivalent to canceling
its debts. Myanmar owed Japan more than 400 billion yen when Japanese loans
were stopped in 1988 following the military takeover of the
government. This is the 17th debt-relief grant extended to Myanmar by the
Japanese government. The last similar grant of 4 billion yen was
extended last November.
*******************************
REUTER:AUSTRALIA CONDEMNS RANGOON OVER "BRUTAL" KAREN WAR
March 3, 1997
CANBERRA, March 3 (Reuter) - Australia on Monday condemned the Burmese
military regime's "brutal war" against minority ethnic Karens and urged
Thailand to continue protecting the thousands of refugees who have fled
across the border.
"The government condemns the Burmese government's brutal war against the
Karen people living near the border with Thailand," Foreign Minister
Alexander Downer told parliament. Australia, through its embassy in Rangoon,
had repeated its call for the Burmese military to immediately withdraw and
to seek peace with the Karen through negotiations. "Our embassy in Rangoon
has conveyed my call on the Burmese government to withdraw its forces
immediately and seek to resolve its differences with the Karen through
negotiation and dialogue," Downer told parliament.
The latest offensive by Burmese troops against the Karen National Union
rebels, fighting for greater autonomy, forced thousands of Karen civilians
to flee into Thailand last month. Three Karen refugee camps in Thailand were
recently attacked, leaving an estimated 10,000 people homeless, Downer said.
The U.S. State Department and human rights groups have
accused Thailand of forcibly repatriating refugees. Thailand has denied the
allegations.
Downer said Australia's embassy in Bangkok had been assured it was not Thai
policy to forcibly repatriate civilians, but he had sought clarification.
He also said he raised the issue with Thai Foreign Minister Prachuab
Chiayasarn during talks in Canberra last week. "He assured me that Thai
authorities are taking steps to improve the safety of the refugees, such as
moving them away from the border area," Downer said. "I urge the Thai
authorities to continue their policy of providing security to refugees
escaping conflict."
*******************
BURMANET: REFUGEES SPEAK OUT
March 4, 1997
Following are excerpts from conversations with Karens who are Burmese
citizens living in Thailand. The Karens discussed their experiences in
English or through translators. The Karens from Huay Kaloke camp spoke
about their experiences on February 28, 1997, one month after their camp was
razed. Approximately 7,000 refugees live in Huay Kaloke. Betloe, a camp
which houses 30,000 refugees, was also attacked by the DKBA but it was only
partially damaged. Refugees from Bedloe were interviewed on March 1, 1997.
Thank you to all those who spoke and gave assistance, but whose names cannot
be acknowledged at this time.
-----------------------------------------------
72 year-old man who has lived in Thailand since 1984
Bedloe Refugee Camp
"We are like the water in the leaf. When the wind blows the water falls.
The wind blows from the east, west, north, south...from any direction.
Q: Is there anything you would like to say to the international community?
"If the international community can help set up democracy in Burma, I think
that everyone in Burma will thank them. They say that SLORC is against
human rights. But why still quiet? The world is still quiet.
Q: How do you feel about the plan to put a barbed wire fence around the camp?
"If they put a fence around the camp we will all have to pass through the
gate. It would take me 40 minutes to 1 hour to walk to the gate. It would
be harder for foreigners to visit. They want to keep foreigners out, the
truth inside.
Q: Many refugees have been here since 1984. Do you worry about losing Karen
culture?
"I told my children that now we are here in Thailand they can use [Thai
culture], but don't forget your own culture. Karen women wear long hair
like this. Many parents don't like it when their children wear modern
clothes and hairstyles. But the children say that when they go on the road
it is better, safer to do like Thai people."
---------------------------------
Karen man who is a teacher in Bedloe Camp
"One Thai authority calls himself the Camp Commander. We can also say that
the Thai security robs the refugees. Everything for the camp goes through
the Thais first, and if they take things the Karen Camp Commander can't do
anything about it. They took 30 sacks of rice. They sell some of our
things in the market, you know. So when the NGOs bring us education
materials, and then later they see someone selling it in the market, they
think 'these refugees are not sincere'. Recently we got old clothes. They
all come from foreigners [relief organizations]. Then they are sold to us
in the camp."
The teacher brought a painted banner. He joked, "Maybe I will make a
demonstration on the road."
CHARTER OF RIGHTS
We want hope, not racism
Brotherhood, not ostracism
Karen advance, not Burmese ascendance
Make us equals, not dependents
We need help, not exploitation
We want freedom, not frustration
Not control, but self-reliance
Not rebuff, but education
Self-respect, not resignation (surrender)
Independence, not compliance
Free us from a mean subjection
>From a bureaucrat protection
Let's forget the old time of slavers
Give us fellowship, not favours
Encouragement, not prohibitions
Homes, not settlements and missions
Give the deal you still deny us
Give good will not bigot bias
Give ambition not prevention
Confidence, not condescension
Give incentive, not restriction
For we are still tabooed and libelled.
The teacher also brought a 'Point to Ponder':
"You must face the thought that your work in the world may be almost ended,
but not nearly finished. You have not solved the problem that perplexed
you. You have not reached the goal that you aimed at. You have not
accomplished the great task that you set for yourself. You are still on
your way and...perhaps...your journey must end now,--nowhere--in the dark."
----------------------------------
84 year-old woman living in Bedloe refugee camp
"Dying here is better than living there right now. I think I will die
before Burma is better."
"It's more important to be with your children. We have enough food to eat.
[In Burma] if you can't give money they will beat you. I'm an old woman,
but if I was there they would take away anything I had. If I had chickens,
the would take them."
-----------------------
Karen man living in Mae Sot-
"We Karen who are Christian bury our dead. Yesterday a baby died in Huay
Kaloke and they wanted to bury it but the Thai authorities wouldn't allow
it. So we had to burn it. This has happened four or five times already."
-----------------------
Karen Pastor at Refugee Camp
Q: Have fears over the DKBA weakened or strengthened the church?
"The church is stronger now [since the DKBA attacks]. Many people come.
But some Christians have also given all the bibles and books that belong to
the Christians back. They are afraid that if people know they are
Christians they will kill them."
------------------------
19 year old Karen woman who has lived in Thailand since 1984
Huay Kaloke Camp
Q: What is your biggest fear at this point?
"The main problem is that now we heard--it may be like a rumour, but it may
be real also--that the Thai authorities will come and want us to go back to
Burma on the fourth of March, because of their constructive engagement about
the friendship bridge.
"But then we also think some Thais want us to stay because they tell us to
rebuild our houses and give them 30 baht per month for our house. Before it
was 25 baht. For some of us we can't even earn 1 baht per month when
there's no work. Before our houses were as big as we wanted. Now they tell
us it can only be eight by ten meters. So if you have a big family they
tell you to get 2 houses, but that's 60 baht per month. But something is
better than nothing. We thank them.
"This morning we heard that the Thai authorities said, 'Now we can't give
you any more security with our guards to protect you so do not do or say
anything against us. If you do we can have the power to send you back to
Burma at once'."
Q: What would you like to tell the world?
"The main thing that we want to tell the world is that even though we are
refugees for more than 13 years we are not respected as refugees. So if
they want to do as they want with us they can. SLORC makes it seem as if we
are criminals and afraid to stay in Burma.
Q: What happened when the DKBA attacked?
"Some of the women, when the burning happened, were starting to give birth,
but not finished. How can we do that? One woman was having twins, but she
only gave one birth. It was a problem for her. She had to run. And the
people in the hospitals, they find a way to run too. Even with only one leg.
Q: Does the Thai security help you feel safer?
"Thais come and give security so that we can't go over there for charcoal
and materials for houses. And security so that we won't leave the camp
without paying 10 baht for our pass. That is a lot of money for us.
Q: Are you worried about education in the future?
"We worry about school, but now we might be killed. If we have security
maybe we can rebuild our schools or hospitals."
---------------------
Graffiti on the burnt-out remains of the school building in Huay Kaloke:
"We have no school. We want to go to school. We lost our home but
independence is more important for Karen people."
"SLORC had been burning our school. Please help our refugee people."
"I'm afraid of New Love Aspiration Govt"
"No school"
"I'm Karen"
*******************************
KNU: PRESS RELEASE NO. 3/97
February 28,1997
REGARDING THE 1997 SLORC OFFENSIVE AGAINST THE KNU
In addition to launching a major offensive against the KNU/KNLA 6th Brigade
in Moulamein district and the 4th Brigade in Mergui-Tavoy district, the
SLORC has been launching military offensives against the other KNLA brigades
in the remaining KNU base areas. Reports on battles and the activities of
the SLORC in the 2nd Brigade area in Toungoo and Pyinmana districts are as
follows:
* On February 7,1997, the Southern Military Command (SMC) of the SLORC
forcibly formed militia units in all Karen villages, on or near the
Toungoo-Mawchi road, starting from the Toungoo 13th mile to Kawthedoe
village.
* On February 11,1997, at 9 a.m. KNLA troops clashed with the SLORC troops
from light Infantary Battalion (LIB) 354 at a location known as Patamangon.
No casualty on KNLA side. Casualty on enemy side still
unknown.
Starting from Feburary 14,1997, the SLORC's Southern Military
Command(SMC) has been sending spies disguised as Buddhist monks to Bawgali,
Kawthedoe, Thandaung, Leiktho, the 13th Mile and other Karen towns and
villagers in Toungoo district.
* On February 16,1997, KNLA troops attacked SLORC troops building roads
between Thakwisoe and Buklo villages. No casualty on KNLA side. Casualty on
SLORC side still unknown.
* On February 19,1997, at 11 a.m, KNLA troops clashed with troops from SLORC
LIB 354 near Yegando village in east Pyinmana district. No casualty on KNLA
side.
Casualty on SLORC side still not known.
* On February 20,1997, the SLORC's SMC reinforced its units in the hills, in
the eastern part of Pyinmana district. Troops from Infantary Battalion (IB)
34 of the SLORC arrested Karens from hill villages in the eastern part of
Tantabin township of Toungoo district, if they were found to be carrying
food with them. They were released only on payment of 2,000 Kyat fine.
* SLORC IB 34 ordered four Karen villages of Shazeebo, Yeshan, Zeebyergon
and Tawgoo to send 25 men per month to serve as porters for it. In addition,
the troops forcibly demanded from 1,000 to 2,000 Kyats from each household.
Sometimes, the enemy troops arbitrarily arrested the villagers and demanded
2,000 Kyats for release. At present, the SLORC IB 35 is moving among Karen
villages in the hills in the easterm part of Tantabin township and
ill-treating the villagers.
KNU Information Center
***********************
REUTER:BURMA'S ECONOMY FACING RANGE OF PROBLEMS
March 2, 1997
By Deborah Charles
RANGOON, March 2 (Reuter) - Although Burma's ruling generals
say their economy is booming, macroeconomic problems and political
uncertainty paint a much less rosy picture for the economy, diplomats and
economists said.
Rising prices, growing international complaints about the military
regime and the threat of looming sanctions by the United States have
hindered economic progress, they said.
Government officials say Burma's economy is growing and on the road to
recovery after more than 25 years of declines under an isolationist
socialist policy.
They say liberalisation efforts made since the State Law and
Order Restoration Council (SLORC) seized power in 1988 have been
beneficial as the economy opens up to foreign investment.
Total approved foreign investment from 1988 to January this
year totalled about $5.36 billion from 237 projects.
But economists estimate only about half of that has actually
been invested since SLORC opened up the economy.
Some of the companies are awaiting more political stability
before beginning operations. The SLORC also continues to come
under international pressure for human rights abuses and for
failing to recognise a democratically elected government.
Opposition leader Aung San Suu Kyi's National League for Democracy won
elections in 1990 but the SLORC never recognised the result.
Others are waiting to see if the economy is on track, and
many economists say it is not.
The International Monetary Fund (IMF) said in a report to be presented
to Burma's rulers on Wednesday that the economy was still suffering serious
macroeconomic problems and the SLORC needed to adopt sweeping reform
programmes to set it straight.
"The macroeconomic situation has taken a marked turn for the worse since
April 1996," said the IMF report, a copy of which was obtained by Reuters.
"Foreign exchange reserves have fallen sharply, the exchange rate in the
parallel market depreciated by 40 percent in six months and inflation has
accelerated."
Economic problems could spark political instability if left unchecked,
diplomats said.
"The biggest problem is inflation, especially in the city,"one Asian
diplomat said, noting inflation is around 30-40 percent a year. "Incomes of
people are still low and the lives of ordinary people are still very hard."
He said the SLORC could face political as well as economic problems if
prices continued to rise and the Burmese people were unable to buy even
staple goods.
"As long as Myanmar (Burma) can produce enough rice there will be no
uprising. But if a problem occurs with rice maybe people will turn to the
streets," he said.
"The government knows the potential problems, that is why it is always
trying to keep stocks of rice and stay in control. It does not want unrest,
especially now," the Asian diplomat said noting that Burma was awaiting
approval to become a full member of the Association of Southeast Asian Nations.
And the nagging fear adding to all the other problems is the
threat of possible economic sanctions by the United States.
Washington has approved a bill for sanctions if the political situation
in Burma worsens, and some diplomats say recent repression of the democracy
movement led by Nobel Peace laureate Suu Kyi is enough to trigger the law.
Suu Kyi's movements have been severely restricted since
student unrest in December.
"The main concern for companies...is economic sanctions," one diplomat
said. "If the U.S. imposes economic sanctions it will have a big impact on
all companies -- not just Americans."
He said even Asian companies, which have been showing the most interest
in Burma over the past few years, could be convinced to pull out or not to
invest in Burma if the U.S. sanctions are imposed.
Suu Kyi, who was released from six years of house arrest in July 1995,
favours sanctions and has urged foreigners not to invest in Burma until the
situation improves.
***********************
AP-DOW JONES:S. KOREA-POSCO PLANS JOINT VENTURE IN BURMA
February 27, 1997
SEOUL (AP-Dow Jones)--South Korea's steel giant Pohang Iron & Steel Co.
(Q.PIS), said Thursday it plans to team up with Union of Myanma Economic
Holding Ltd., or UMEHL, of Burma to set up a plant to produce
galvanized ironsheets.
POSCO will hold a 70% stake in the venture, to be capitalized at US$3.2
million, while the remaining equity will be held by UMEHL, according
to a POSCO official.
A total of $5 million will be invested in the construction of the
plant, which will be located in the industrial complex of Pyinmabin near
Rangoon, the official said. Construction is slated for completion by July
1998, he added.
POSCO expects to produce 30,000 tons of galvanized iron sheets
annually.
All output will be sold in Burma, he said.
************************************
LETTERS:CONGRESSMAN WRITES TO ALBRIGHT, CLINTON
February 28, 1996
Letter from Congressman Dennis Kucinich, 10th District, Ohio
To: Madeleine Albright, Secretary of State
February 28, 1996
The Honorable Madeleine Albright
Secretary of State
22001 C Street, NW
Washington, DC 20520
Dear Secretary Albright,
Since you testified before the International Relations Committee on
February 11, the situation in Burma has deteriorated. During the past
month, the military rulers of Burma have unleashed a bloody offensive
against Burmese citizens from the minority Karen ethnic group. News reports
have characterized this wave of oppression as an "orgy of violence,"
consisting of burning villages, extrajudicial executions and the
impressment of women, children and men into forced labor for the Army.
In a reversal of its past policy of offering safe haven to Karen refugees,
the Thai government has refused entry to 5,000 ethnic Karen, including
women, children, young boys and old men fleeing the violence. That shift in
policy followed a meeting that occurred this past Tuesday, February 25
between the Thai military's commander-in-chief and his Burmese counterpart.
In the past, the Thais supported the Karen as a buffer against the Burmese
army. According to an AP dispatch from Thailand yesterday, "the potential
for greater economic development has warmed relations between Thailand and
Burma."
A critical foundation for that diplomatic warming is the natural gas
pipeline under construction in Burma, as referenced in my statements before
the International Relations committee and in my letter to you, dated
February 11. Unocal, a U.S. -based transnational corporation, is a leading
partner in the pipeline project. Unocal's business in Burma is at cross
purposes with U.S. foreign policy. That policy was made clear in the
Cohen-Feinstein amendment to the Foreign Operations Appropriations Act (PL
104-208), which the President signed into law on September 30, 1996.
Madam Secretary, in light of the increased in brutality visited upon the
Karen and other minorities by the Burmese military, and the closing of key
areas of the Thai Border by a government newly linked to me military by the
pipeline project, and stated U.S. foreign policy as it related to Burma
will you:
1) certify that the conditions for the invocation of sanctions called for
in Section 568 of PL 104-208, including the prohibition of new investment,
have been met, and recommend to the President to invoke sanctions?
2) recommend publicly that Unocal, which is working at cross purposes with
U.S. foreign policy, stop its business activities in Burma?
3) recommend that the U.S. close all tax breaks and end all direct
subsidies to Unocal if, despite the advice of the State Department to cease
operations, Unocal continues to conduct business with Burma?
4) begin monitoring and publishing reports on the conditions faced by
workers and residents of areas surrounding the plants and facilities of
Unocal in Burma?
The time is now for the State Department to send an unequivocal message to
Unocal.
Sincerely,
Dennis J. Kucinich
Member of Congress
-----------------
Letter from Rep. Dennis Kucinich, 10th District, Ohio
To President Clinton
-------------------
February 28, 1997
The Honorable William J. Clinton
White House
Washington, DC
Dear Mr. President,
The situation in Burma has deteriorated. During the past month, the
military rulers of Burma have unleashed a bloody offensive against Burmese
citizens from the minority Karen ethnic group. News reports have
characterized this wave of oppression as an "orgy of violence," consisting
of burning villages, extrajudicial executions and the impressment of women,
children and men into forced labor for the Army.
U.S. policy is clear with respect to Burma. Sanctions against the military
regime were called for by the Cohen-Feinstein amendment to the Foreign
Operations Appropriation Act (PL 104-208), which you signed into law on
September 30, 1996.
Mr. President, invoking sanctions called for in Section 568 of PL 104-208,
including the prohibition of new investment, is overdue. Nobel Prize winner
Suu Kyi has repeated her call for the implementation of sanctions. The time
is now for the U.S. to send an unequivocal message to the Burmese military
rulers. Brute force and aggression against one's citizens are unacceptable.
As a member of the U.S. House of Representatives, I urge you to invoke
sanctions against Burma immediately.
Sincerely,
Dennis J. Kucinich
Member of Congress
*****************************
ASIA TIMES:STATE KEEPS A FINGER IN ALL AIRLINE PIES
March 3, 1997
Stephen Brookes
Stephen Brookes, Asia Times Yangon correspondent, reports on how the five
airlines running or planned in Myanmar should offer plenty of competition,
except that they all share the same partner.
Rules may keep carriers from competing directly Indonesiass President
Suharto came to Yangon late last month, but it was not only a pre-ASEAN
courtesy call. The Indonesian mission also signed agreements to set up joint
ventures ranging from cement manufacturing to animal feed and even to
establish a new airline.
When it gets off the ground in six months or so, the new venture will bring
the total number of domestic airlines in Myanmar to five. That should create
a healthy atmosphere for competition, except for one thing: All the joint
ventures share the same partner - the Ministry of Transportation.
And within the next decade, all the airlines will belong to, and be fully
managed by, the government.
Myanmar officials say this is the smoothest way to expand and develop the
market. "We're the majority partners in competing airlines, but this is
commercially viable," said Lieutenant Colonel Aung Nyunt, managing director
of Myanma Airways, the national airline. "We told our partners to compete in
good ways, not to be cut-throat."
But to some analysts in Yangon, the approach suggests that the overall
strategy is to gradually supplant the state-owned Myanma Airways whose
aging fleet of Fokker 27s is rapidly approaching obsolescence with a number
of new carriers that may eventually be merged into a new, refurbished
national airline.
"Myanma Airways doesn't have a good safety or service record, and it's
difficult to wipe out a bad image," said one analyst. "So it's smarter and
cheaper to start something new, and combine with partners who can provide
the equipment."
That's creating opportunities and complications for foreign investors.
"Air travel is definitely a sunrise industry in Myanmar," said Michael
Chang, one of a group of Singaporean investors who founded Air Mandalay in 1994.
"Myanmar has 47 million people and a land mass twice the size of France, but
the road network is still undeveloped. Until the roads are built, air travel
will be the major way to connect all the areas of the country. And you need
more than just a few airplanes to do that."
Chang's group sold out their majority share in Air Mandalay to Malaysia's
Kemayan Corp in late 1995, after receiving what Chang calls "an offer we
couldn't refuse". Fourteen months later, the airline is back "on track" for
profitability by servicing the main tourist routes between Yangon, Bagan and
Mandalay with three 70-seat ATR 72-210s, according to its new owners. "I
think the market will develop fairly rapidly," said managing director
Rajinder Singh. "Myanmar's [expected] entry into ASEAN will certainly boost
the numbers of businessmen and tourists coming in," he said, adding that the
large number of new hotels opening should also increase demand.
The promise of an expanding market is also raising investor interest.
Last October, the Thai group Krongsombat, led by Adul Chayopas, formed the
joint venture Yangon Airways with the government, and now has two ATR
72-210s serving Mandalay, Bagan and border towns such as Tachilek,
Kawthaung and Putao.
The latest entrant into Myanmar's skies is the Indonesian company Triputra
Unggul Utama, which will be providing two 24-seat turboprop planes built by
Industri Pesawat Terbang Nusantara (IPTN), a state-owned company whose
president is B J Habibie, Indonesia's minister for research and technology.
"These planes can land on rugged, short airfields," said Myanma Airways'
Aung Nyunt. "So we can use them to open up the border areas and provide
feeder services into the main hubs."
That's a good strategy, say analysts, given the rough state of Myanmar's
airfields. But a similar service was started last year by Air Myawaddy,
which ran scheduled flights from Mandalay to Lashio, Mogok and Muse in
northeastern Myanmar, using two Russian-built MI-17 23-seat helicopters.
Low demand and poor management --flights were often cancelled at the last
minute, or the helicopters commandeered for official use - sank the regular
service, and flights are now made largely on a charter basis, according to
one aviation expert in Yangon.
But for investors a key concern is whether, with all the airlines in
partnership with the government, normal competition is possible.
Typical of the new ventures is the one with IPTN, in which the government
holds a 51 percent share but gives responsibility for management to the
partner. "The funding comes from the Indonesian side, while the Myanmar side
provides the rights and the supporting assistance," said Myanma Airway's
Aung Nyunt. The Indonesians will manage the company, he added, but a Myanmar
official will head the board of directors.
A similar situation prevails at Yangon Airways, which is 51 percent owned by
the government, but managed by the minority owner. The company's chairman,
Captain Tin Hlaing Hmee, is also the general manager of Myanma Airways.
Only four months old, Yangon Airlines is operating at 35 percent of
capacity, said Akkaphan S Photphibul, assistant to the managing director.
"We have to follow the system of Myanma Airways' commercial management, and
there hasn't been much time to focus on marketing."
Air Mandalay, the first and most successful of the joint ventures, was set
up three years ago with a 60 percent share for the private side, and 40
percent for the government. Nevertheless, said Singh, there are tight
restrictions on what the company can do, stipulated in the joint venture
agreement.
And under the terms of the agreement, ownership is being transferred to the
government at a rate of 1.5 percent per year, making the Ministry of
Transport the majority shareholder after seven years.
"The foreign partners get very little freedom to manage," said one business
analyst in Yangon. "It's still a young industry here, and there are different
government ministries involved. And the different ministries have different
criteria. So you need to understand the protocols involved, if you want to be
successful."
"You've got to be diplomatic," added another airline professional. "You
can't be seen as competing with Myanma Airways." As another airline official
put it privately: "We're all wives to the same husband, so we have to learn
to live under the same roof."
Yet most analysts in Yangon said the government's hands-on approach is more
likely to hamper than help the growth of the industry. "You can't develop in
a textbook way, by adding capacity to stimulate demand," said one analyst in
Yangon. "The government says that the airlines can't add planes until
they've reached full capacity - but that's not possible in this industry,
given the current routing structure. There are in-built restrictions on how
the airlines can expand."
Moreover, tour operators in Yangon said they avoided using Myanma and Yangon
airlines because of poor service and unreliability. "Those airlines are
managed by the government, and the government has certain priorities," said
a manager at a major tour service.
"If a VIP wants to use one of the planes, then the regular flight is
canceled. And if we get a big group of tourists stranded somewhere, we're in
trouble. We can't afford to risk it, so we stay with Air Mandalay."
Other airline officials say that due to the short tourist season, the
airlines will need to be flexible to survive during the May to October
monsoon season. "We are shortly going to make an application to do cargo
flights during the monsoon," said Air Mandalay's Singh, noting that the
airline's planes can be converted to dedicated freighters capable of moving
9,000 kilograms per flight.
Many of the domestic airlines are also involved in parallel economic
projects. Air Mandalay's owner Kemayan, for example, is looking into resort
development, especially in the coastal beach area of Ngapoli.
"We'd like to achieve vertical and horizontal integration with a number of
projects," said Singh. Yangon Airways' Thai partner is also involved in the
tourism and hotel business.
Despite the hurdles caused by government involvement in the market, however,
many analysts are optimistic. Some 15 international airlines now feed
passengers into Myanmar, and airport infrastructure is being overhauled.
Many of the country's 60 small airstrips are being upgraded, a new
international airport is being built in Mandalay, and there are plans to
extend the airfields in Tachilek, Kawthaung, Bagan and Ngapoli. A massive
new airport is also planned to serve Yangon, although it will not be
finished until the turn of the century.
All that adds up to a market that is only beginning to take off, said some
observers. "When the 747s start landing in Yangon," said Chang, "even 20
flights a day to Bagan won't be enough." Passsengers at Yangon's airport
walk toward a Myanma Airways jet. Five domestic airlines intend to
capitalize on the expected rise in tourism in Myanmar but government
restrictions may hamper their ability to compete effectively.
John Lehmann/Asia Times
**********************************
THE NEW LIGHT OF MYANMAR: NEWS BRIEFS
March 2, 1997
MINISTER INSPECTS FOREST CONSERVATION WORKS IN MAGWAY, MANDALAY DIVISIONS
YANGON, 1 March-Minister for Forestry Lt-Gen Chit Swe
inspected works for conservation of forests and development of the
forestry sector in Magway and Mandalay Divisions from 26 to 28
February. On 26 February, he inspected construction works at Mount
Popa Resort.
The resort is being built with the help of technicians and
designers of Australia. Construction of the resort that will
contribute to eco-tourism began four months ago and it is
scheduled for completion in May. The resort will have eight hostels,
a restaurant and a reception hall and can accommodate 35 visitors.
Officer in charge of Mount Popa Resort U Hse and U Win Aung
of Wood-land Travel Co Ltd, which is undertaking construction
works, reported on progress of work.
Speaking on the occasion, the minister said Popa region is an
oasis of the dry zone and establishment of the resort is a part of
measures for development of eco-tourism.
_______________________________________
MINISTER INSPECTS PAUNGLAUNG HYDRO-ELECTRIC POWER PROIECT
YANGON, 1 March-Minister for Energy U Khin Maung Thein,
together with officials, arrived at Paunglaung Hydro-electric Power
Project of the Myanma Electric Power Enterprise in Pyinmana
Town-ship this morning.
On arrival there, they were welcomed by Assistant Chief
Engineer of MEPE U Win Kyaw and employees of the project,
Manager Mr Shigeto of Kajima Corporation of Japan, Consultant
Engineer Mr Nishimura and experts of Newjec Company, Lt-Col
Tun Tun of Pyinmana Station, Chairman of Pyinmana Township
Law and Order Restoration Council U Tha Tun Oo, trainees from
other ministries attending the on-job training course and executives
of Pyinmana District Union Solidarity and Development
Association.
___________________________________
PRAWN PRODUCTION OF ANNAWADEVI FISHERIES PRODUCTION AND GENERAL TRADING
ENTERPRISE INSPECTED
YANGON, 1 March-Minister for Cooperatives U Than Aung
inspected prawn production factory and cold storage of
Annawadevi Fisheries Production and General Trading Enterprise
Cooperatives Society Ltd in Dawbon Township this morning.
Chairman Daw Toe Nanda Tin reported on organization set-up of
the factory, purchase of fresh water and deep sea prawn and export.
The minister inspected dressing of prawn at the factory and
spoke of cooperation with other cooperative societies and boosting
of foreign exchange earning.
The factory and the cold storage were established at the end of
January at a cost of K 30 million and installed machines worth US $
400,000.
Test operation started in February and packed prawn will be
exported to Malaysia, Japan and Belgium early March.
_____________________________________
ANTI-GOVERNMENT ARMED GROUP MEMBER RETURNS VIA EMBASSY
YANGON, 1 March-Zaw Nyunt (a) Arkar Hein who took part
in the movement of Pyithu Democracy Tatmadaw, an armed
organization in opposition, retumed through the Myanmar Embassy
in Bangkok, Thailand, on 10 February 1997, it is learnt. While he
was in the country, he was a member of the organizations such as
Aloke-thamar Thwaysee Nyinyutyay Aphwe and Pyithu Dernocracy
Tat-U and wrote and distributed anti-government letters. In 1990,
he contacted outlawed organizations abroad for seeking financial
support from them and establishing links with other internal and
external organizations.
When authorities concerned exposed and took action against the
outlawed organizations, Zaw Nyunt (a) Arkar Hein absconded to
Thailand in December 1990.
He took refuge in Bangkokbased Democracy Nyinyutyay
Tatpaungzu Aphwe.In early 1992, he joined the organization called
Pyithu Democracy Tatmadaw. Later on, he came to perceive the
external out-lawed organizations' seeking their selfish ends on the
pretext of doing politics. Fed up with these organizations, which
were living on their begging abroad, he turned to Malaysia and
Singapore to seek jobs there beginning 1992. After resuming
contacts with his family in 1996, he came to realize the
Government's endeavours and situations of progress and returned to the
country through Myanmar Embassy in Bangkok.
http://www.myanmar.com/gov/news/nlm.html
********************************
AP: ASEAN BROADCASTERS TO FORM CONFEDERATION
February 27, 1997
KUALA LUMPUR, Malaysia (AP) _ Broadcasters in member countries
of the Association of Southeast Nations said Thursday they have
decided to form an ASEAN Broadcasters Confederation.
The decision was contained in a declaration at the end of the First ASEAN
Broadcasters Conference in Langkawi, 400 kilometers (250 miles) northwest of
Kuala Lumpur.
The ASEAN members are Brunei, the Philippines, Singapore, Malaysia,
Indonesia, Thailand and Vietnam. Burma, Laos and Cambodia are expected to
join ASEAN soon, and a delegation from Burma supported the declaration.
The conference also recommended setting up four working groups to deal
with training, exchanges of personnel, exchanges of programs, research and
development, and censorship in line with technological advances and the
rapid development of the broadcasting industry in the ASEAN area.
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