Premier to discuss US sanctions wit

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Subject: Premier to discuss US sanctions with Burma 



Date: 14 May 1997 
The Nation 
Premier to discuss US sanctions with Burma 

BY PIYANART SRIVALO, SURACHAI CHUPAKA 

PRIME Minister Chavalit Yongchaiyudh will discuss several economic issues, 
including US sanctions, when he makes an official two-day visit to Burma 
starting on Friday. 

Informed sources said that all government and security agencies will hold a 
final round of discussions today to finalise the premier's agenda with top 
Burmese junta leaders, including Gen Than Shwe, Gen Maung Aye and Gen Khin 
Nyunt. 

Chavalit is expected to hold private talks with some of Burma's leaders during 
which he will reiterate Thailand's support for the country's admission as a 
full member of the Association of Southeast Asian Nations. He will also 
discuss the problems of illegal Burmese immigrants and refugees in Thailand. 

According to one official source, Burma is likely to be badly hurt by US 
economic sanctions that ban new American investment in the country. But at the 
same time, many countries both near and far are waiting to take advantage of 
the sanctions by taking over any prospective economic projects, he said. 

During the visit, Chavalit is expected to assure the Burmese junta of 
Thailand's readiness to assist Burma in times of critical economic woes by 
urging the junta to facilitate the entry of Thai investors into the country, 
the source added. 

He said that Chavalit's team of economic advisers has already held a meeting 
with representatives of seven big Thai companies investing in Burma to work 
out part of the premier's agenda and a common position on Thailand's economic 
activity into the country. Some of the firms present included Italian-Thai 
Development, Petroleum Authority of Thailand, Sahavirija, Cosmo Oil and the 
Thai Fisheries Association. 

According to Wirachai Techawichit, one of Chavalit's economic advisers, three 
pressing issues will top the economic agenda of bilateral talks, including a 
request for the junta to reform the country's dual kyat currency to promote 
foreign and Thai investment in Burma. 

Wirachai said that the dual currency is one of the biggest hurdles for Thai 
investors as the Burmese government uses an official exchange rate of six kyat 
to the dollar to calculate the value of Thai investment, while the black 
market rate stands at 160 kyat to the dollar. 

The official rate does not reflect the true value of the kyat and subsequently 
makes the chance of profits unrealistically low in terms of value, he said. 

The economic adviser said that Chavalit will also urge the ruling State Law 
and Order Restoration Council (Slorc) to establish a one-stop service that 
will consider and grant projects to prospective investors. 

At the moment a foreign investment proposal has to be scrutinised and approved 
by 13 Burmese ministries, a lengthy time-consuming process. 

Thailand, which used to produce similar bureaucratic red tape before it set up 
the Board of Investment as a one-stop foreign investment service, can relate 
its experience to Slorc, Wirachai said. 

He said that Chavalit, who has developed close relations with Slorc leaders, 
will also discuss the prospect of Thailand's fishing fleet being allowed to 
use Burmese waters. 

Chavalit will urge Slorc to reconsider granting fishing concessions to Thai 
companies which were banned from Burmese waters after several violent 
incidents and the high exploitation of marine resources. 

The premier will tell Slorc to deal directly with the Thai Fisheries 
Association, which will have strict control over the economic behaviour of its 
member companies. 

During the meetings with Slorc leaders, Chavalit will discuss the prospect of 
constructing a highway from the Thai-Burmese bridge across the Moei River to 
Rangoon, the sources said. 

The sources added that the premier will also talk about the prospect of 
several deep-sea ports on the Burmese southern Tenasserim coast, which would 
link Thailand's western provinces with the Andaman Sea and the Indian Ocean. 

Chavalit will inform Slorc of Thailand's proposal to construct a hospital in 
Burma as a gift to celebrate the 50th anniversary of Thai-Burmese diplomatic 
relations next year, the sources said. 

Army Chief Gen Chettha Thanajaro, who will accompany the premier to Burma, 
said yesterday that the problem surrounding hundreds of thousands of Burmese 
refugees and illegal immigrants in Thailand will be discussed.