The BurmaNet News, May 29, 1997

[strider@xxxxxxxxxxx]

------------------------ BurmaNet ------------------------      
"Appropriate Information Technologies, Practical Strategies"      
----------------------------------------------------------      
      
The BurmaNet News: May 29, 1997      
Issue #735
    
Noted in Passing: 
 
Thailand is simply being treated in the same manner as a pro-democracy
civilian on the streets of Rangoon or a member of a minority living in areas
along the border.

--see the Bangkok Post Editorial - 'Does Asean Need Such A Brute?'


HEADLINES:      
==========    
ALTSEAN PRESS RELEASE: SUU KYI MESSAGE TO ASEAN
REUTER: BURMA BID FOR EARLY ASEAN ADMISSION 
LA TIMES: BAN ON MYANMAR MAY HIT US FIRMS
BERNAMA: IF UN CAN ADMIT MYANMAR, SO CAN ASEAN
UPI: JAPAN PRIME-MINISTER HASHIMOTO CONCERNED 
AFP: TOKYO 'TO FREEZE DEVELOPMENT AID TO YANGON'
ASIA TIMES: MYANMAR MEANS A LOT TO THE JAPANESE
BKK POST: 'PERMISSION OBTAINED' TO DREDGE RIVER
THAILAND TIMES: GUNFIRE AT BORDER 
BKK POST: EDITORIAL - DOES ASEAN NEED SUCH A BRUTE?
ASIAWEEK: ASIAWEEK'S POWER 50 
BKK POST: CONSTRUCTIVE ENGAGEMENT NEEDS BUSINESS  
XINHUA NEWS AGENCY : MYANMAR TO INVITE MORE FOREIGN 
THE NATION: REPRESSIVE SLORC RULED BLAMED 
-----------------------------------------------------------------    

ALTSEAN PRESS RELEASE: SUU KYI MESSAGE TO ASEAN
May 29, 1997
<altsean@xxxxxxxxxx>

ALTSEAN-BURMA
A L T E R N A T I V E    A S E A N   N E T W O R K   O N   B U R M A
tel: 66 2 275 1811, 66 2 693 4515   fax: 66 2 693 4515    <altsean@xxxxxxxxxx>
c/o FORUM-ASIA  109 SUTHISARNWINICHAI RD   SAMSENNOK HUAYKWANG   BANGKOK 10320

EMBARGOED: FOR RELEASE ON MAY 29,1997
MEDIA RELEASE
SUU KYI ASKS ASEAN: ENGAGE WITH US

[BurmaNet Note: Text of media release containing excerpts from video
transcript omitted.  Please contact altsean@xxxxxxxxxx for full text]

ALTSEAN-BURMA Coordinator Debbie Stothard said that Ms Suu Kyi's concerns
about the economic and political instability perpetrated by the Slorc were
concrete reasons to delay Slorc's entry into Asean: "We should not cheapen
ourselves by rushing to grant them membership.  The junta's track record is
a grave concern not just to the people of Burma, but also to investors and
political leaders.  The regime is notorious for making promises it has no
intention of keeping.  The Burmese elections 7 years ago is clear proof of
that," said Ms Stothard.

Video transcript follows

TRANSCRIPT:

MESSAGE TO THE LEADERS OF ASEAN FROM AUNG SAN SUU KYI, GENERAL SECRETARY,
NATIONAL LEAGUE FOR DEMOCRACY.

MAY 1997

Due to the restrictions imposed on Daw Suu Kyi by the military regime, the
State Law and Order Restoration Council, this video was recorded under
severe technical restraints and was smuggled out of Burma at great risk to
those involved.

Q:	In your view, how has the military regime mismanaged Burma's economy?

A:	There are several theories about it but one of the most important  is the
fact that they do not have a proper macro-economic policy.  And of course,
such institutions like the IMF have great doubts about their deficit funding
        Now, we think that they have mismanaged the economy by mismanaging
the people of Burma. Basically that's why they have made such a mess of the
economy.  They are not making proper use of our resources, our human
resources as well as our material resources.

Q:	What is the long-term impact of military rule on the workforce?

A:	Well, this comes back to what I was saying just now about mismanagement
of resources.  They are not making proper use of our human resources.  They
are spending much less on education now than was spent eight years ago
before  the democratic revolution, and of course, they are spending much
less money on health care.  That means they are not looking after our people
either physically or mentally, and that is going to be disastrous in the
long run.

Q:	What does the recent unrest indicate to you about the stability of the
country?

A:	I think unrest anywhere and tension anywhere is symptomatic of
instability throughout the country.  The fact that (is) people everywhere in
Burma have to live under a lot of stress because there is no security for
them, and stress leads to instability.

Q:	In your view, what are the risks involved in the Slorc being admitted
into Asean?

A:	Burma under Slorc is not going to be any credit to Asean, but I think
what Burma risks, what the people of Burma risk, is the possibility that
admission into Asean will make Slorc even more obdurant and oppressive than
ever. 

Q:	Why would a democratic government be a better Asean partner?

A:	The NLD or any other elected civilian government would have the mandate
of the people. It would have the trust and the confidence of the people and
I think, also consequently, the confidence of the international community. A
government that works on the basis of trust would be a lot more effective
than a government that uses the power of arms to keep itself in control , at
the helm of state power.
	Now there's another thing: A civilian government , a democratically elected
civilian government would have to listen to the voice of the people. It
would have to listen to the voice of the world and by listening, such a
government would be able to discover what its mistakes are and be able to
correct them.

Q:	What does the National League for Democracy want Asean to do?

A:	Asean says that it believes in constructive engagement, so we would like
Asean to make sure that the engagement is constructive.  And also I think
they should be engaged with us as well, the National League for Democracy
because we are the party which was elected by the people in the democratic
elections of 1990.   We have never been given a chance to do anything about
that, and I think if Asean is truly interested in constructive engagement it
should try engage with both sides in Burma, with the Slorc as well as the
democratic opposition, and make sure the engagement leads to something
constructive, in the way of development towards democracy. 

Q:	What is the NLD's policy on Asean investment in Burma?

A:	We are not against business and we are not against investment.  But we
are not in favour of the kind of investment that simply encourages the
military regime to increase its oppressiveness.  We are not in favour of the
kind of investment that makes some people, a very privileged elite, very,
very rich while the rest of the country stays as poor as ever.
	So, we want responsible government and responsible investment.
----------------------------------------------------------------
For more information, please call BKK (66 2) 693 4515 or 275 1811
or email <altsean@xxxxxxxxxx>

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

REUTER: BURMA BID FOR EARLY ASEAN ADMISSION SEEN STUMBLING 
May 28, 1997 
By Bill Tarrant 

KUALA LUMPUR, May 28 (Reuter) - Burma's bid for early admission into the
Association of South East Asian Nations (ASEAN) appeared doomed by concern
over its human rights record and strife in Cambodia, officials said on
Wednesday. 
	Foreign ministers of the ASEAN nations -- Brunei, Indonesia, Malaysia, the
Philippines, Singapore, Thailand and Vietnam -- will meet in Kuala Lumpur on
Saturday to decide when to admit its final three members. 
	ASEAN said last year it would admit all three together. 
	Malaysia, this year's ASEAN chairman, has been pressing for Burma, Laos and
Cambodia to be inducted at ASEAN's annual ministerial meeting on July 24-25
in Kuala Lumpur. 
	Alternatively, the three could be admitted at an informal ASEAN summit in
December, also in Malaysia. 
	``I've been told the ambassadors of the three (Burma, Laos and Cambodia)
have been asked to stand by for the press conference after Saturday's
meeting,'' a Western diplomat said. 
	Malaysia's acting Prime Minister Anwar Ibrahim told reporters on 
Thursday that the admission of the three countries would take place by 
the end of the year. 
	``Our decision has been rather consistent, that the admission should be the
latest by the summit. Meaning, therefore, that the process can take some
time, particularly because we have always adhered to the principle of
consensus,'' Anwar said. 
	Diplomats said Malaysia preferred the July timeframe because it wants the
December summit -- to which Japan, China and South Korea have also been
invited -- to focus on Asia-wide issues. 
	A senior Cambodian official said on Tuesday that the admission of the three
would have to be delayed because of Cambodia's political problems. 
	A tense feud between the leaders of Cambodia's coalition government has
raised doubts about whether Phnom Penh could pass the necessary legislation
by the July ministerial meeting. 
	Political analysts said the country's instability had also triggered 
concern over Cambodia's readiness to join. 
	Separately, the United States has asked ASEAN to delay Burma's entry
because of its human rights record and the suppression of the democracy
movement led by Aung San Suu Kyi. 
	A senior official in Thailand's foreign ministry said on Wednesday the
combination of factors could result in a delay. 
	``They may delay the decision, and most likely they would decide on the
issue by the end of the year when the heads of government of ASEAN members
meet,'' said the official, who declined to be named. 
	``By now, Kuala Lumpur seems to realise the current situation is not
appropriate to push too hard because of the internal and external 
factors,'' he told Reuters. 
	Malaysian Prime Minister Mahathir Mohamad, who is believed to be keen on
early admission, could have used his prestige in the region to twist some
arms over the issue, diplomats said. 
	But he is in London on a two-month leave. 
	An influential Malaysian Moslem group on Thursday urged that Burma's
admission be deferred over its alleged harassment of the country's 
Moslem minority. 
	The Moslem Youth Movement of Malaysia, in a letter to Anwar and the foreign
ministry, said 30 mosques have been destroyed since mid-March and held
Burma's military rulers responsible. 
	Clashes between Buddhists and Moslems broke out in March in Burma's second
city, Mandalay. Witnesses said mosques were ransacked and monks staged
street protests. The unrest spread to other cities including the capital of
Rangoon. 
	ASEAN members Indonesia, Brunei and Malaysia have Moslem majorities. 
	Indonesian Foreign Minister Ali Alatas said ASEAN would admit its new
members this year, but did not say exactly when. 
	``Our hope is we will reach a consensus that those three nations can become
full members this year,'' Alatas said on Wednesday after meeting President
Suharto. 
	
***************************************

LA TIMES: BAN ON MYANMAR MAY HIT US FIRMS THROUGHOUT   SOUTH-EAST ASIA
May 28, 1997

     WASHINGTON -- American companies may find that the White House ban on
new investment in Myanmar has implications extending far beyond that
country, jeopardising projects in other South-east Asian economies as well,
some experts have said.
     A broad interpretation of the presidential ban could threaten billions
of dollars worth of business throughout South-east Asia, crippling US firms
in one of their fastest-growing markets, according to a group representing
450 major companies active in the region.
     While business executives and trade lawyers are still studying the
executive order issued last week implementing the ban, the US-Asean Business
Council has said it could even prohibit participation in regional projects
that extend from another country into Myanmar.
     If Myanmar joins Asean as expected this year, "all of these regional
transportation, telecommunications, all of these regional networks are going
to have a Burma element in them," said Mr Ernest Bower, president of the
council. "We stand to lose enormous amounts of business."
     Other experts have said that the ban casts a wider net than expected
around projects within Myanmar and may create more problems for energy
companies already involved in projects there -- like Unocal Corp, Atlantic
Richfield Co and Texaco, the leading US investors -- than those companies
realise.
     President Bill Clinton's order last Tuesday formalised the
administration's announcement last month that the ban on new investment was
forthcoming.
     The order prohibits US citizens from entering into contracts that
involve the economic development of resources in Myanmar.
     It also prohibits Americans from purchasing ownership shares in
developing resources in the country or helping non-US citizens who wish to
perform activities forbidden under the ban.
     While the executive order allows companies to complete ongoing
contracts, it is not clear whether they will be able to engage in any
additional work that would require new funds, such as building a pipeline to
get their gas to market, according to legal and government sources.
     "Unocal is going to have trouble going forward under this," said Mr
David Schmahmann, an international legal expert with the Boston law firm of
Nutter, McClennen & Fish.
     Mr Schmahmann said that the ban did not define "new investment" clearly
and prohibited -- unexpectedly -- investment into not only natural
resources but agriculture, financial, industrial and human resources.
     And while it did not cover foreign subsidiaries of US companies, it
prohibited US businesses from approving or facilitating any transactions by
foreigners that would be considered illegal under the presidential ban.
     The ban carries a penalty of up to 10 years in prison and a US$55,000
(S$78,650) fine for violators.
     But no one is certain yet just what is illegal, which is why these US
companies are lining up to meet officials of the Treasury Department, whose
Office of Foreign Assets Control will be enforcing this measure.
     Treasury is expected to issue its enforcement regulations for the
Mynmar ban in a month. -- LA Times.

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

BERNAMA: IF UN CAN ADMIT MYANMAR, SO CAN ASEAN
May 27, 1997

     KUALA LUMPUR -- Myanmar's imminent membership of Asean could be the
starting point for improving the human-rights situation in that
country, an international expert on human rights said here yesterday.
     Professor Yozo Yokota, who served as the United Nations special
rapporteur on the situation of human rights in Myanmar for four years until
May last year, said it was up to the Asean members and the government in
Yangon to decide on Myanmar's membership into the grouping.
     "If the United Nations accepts Myanmar as member, Asean has the right
to accept Myanmar," he said during a lecture at the Institute of Strategic
and International Studies (Isis) here.
     "My sincere hope is that the membership of Myanmar into Asean, which is
likely to take place soon, will be the starting point for improving the
human-rights situation in Myanmar and restoration of democracy," said Prof
Yokota, who is attached to the Law Faculty at the University of Tokyo.
     He said he was aware that some Western governments did not want to see
Myanmar accepted by Asean and that Myanmar's opposition leader Aung San Suu
Kyi and her National League for Democracy party wanted the ruling State Law
and Order Restoration Council to restore democracy and respect human rights
first before it is accepted by Asean.
     Asean foreign ministers are expected to decide on the timing of
Myanmar's entry along with Cambodia and Laos at a meeting here on Saturday.
     Prof Yokota said just as in the case of the UN, which had clear
objectives to achieve co-operation among member states for respect of human
rights, Myanmar's entry into Asean could further boost the efforts.
     He said the situation of human rights in Myanmar when he was the
special rapporteur until last year was "very bad" and he believed the
situation had not improved much.
     "The government of Myanmar has to respect the human rights of their own
people," he added. -- Bernama.

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

UPI: JAPAN PRIME-MINISTER HASHIMOTO CONCERNED OVER BURMA ACTION
May 28, 1997 [abridged]

TOKYO, May 28 (UPI) _ Prime Minister Ryutaro Hashimoto says he hopes Burma's
entry into the Association of Southeast Asian Nations will not mean the
military junta is spared criticism in the future. 
	Hashimoto expressed concern to journalists Wednesday over the Burmese
junat's blocking of a pro-democracy meeting in Rangoon. 
	The prime minister says, ``We hope (Burma's) membership in ASEAN will not
give immunity to the military regime's actions.'' 
	The seven-members ASEAN alliance plans to admit Burma into the regional
group this year. 

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

AFP: TOKYO 'TO FREEZE DEVELOPMENT AID TO YANGON'
May 24, 1997 [slightly abridged]

TOKYO -- The Japanese government is to suspend official development aid to
Myanmar to encourage the country's military regime to resume talks with
democracy advocates, a press report said yesterday.
     The government would not restrict corporate investment in Myanmar, but
would freeze loans through the Overseas Economic Co-operation Fund to
private sector-led projects, said the Nihon Keizai Shimbun.
     Tokyo was also expected to stop humanitarian assistance in medical and
food supplies, excluding small subsidies to non-governmental organisations,
said the daily.
     No immediate comment on the report was available from the Japanese
government.-- AFP.

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

ASIA TIMES: MYANMAR MEANS A LOT TO THE JAPANESE
May 28, 1997
Stephen Brookes, Yangon

	There's not much to see yet at the sprawling Mitsui industrial development
zone on the northern outskirts of Yangon. It's a flat expanse of virgin
ground, broken only by a few scattered construction buildings, stacks of
pipe waiting to be laid and cement trucks sending up clouds of dust as they
lumber across the landscape. 
	But by the end of the year, said Mike Nagai, the general manager of
Mitsui's Yangon office, the site would be a thriving mecca for new
manufacturers - part of the growing tide of Japanese traders and investors
who are helping to jump-start Myanmar's economy. 
	What was happening now in Myanmar, said Japanese businessmen in Yangon, was
the next step in a process that started in the mid-1980s when Japan began
promoting industrial development in Thailand, Malaysia and Indonesia. 
	"More than half of the investment for ASEAN's [the Association of Southeast
Asian Nations] industrialization came from Japan," said Nagai. "And it was
mutually beneficial. We shifted our industry to ASEAN because of the cost
difference, and it increased ASEAN's per capita GDP [gross domestic product]
three to five times. We'd like to do the same thing in Myanmar." 
	Japanese investors said Myanmar's ragged infrastructure, lack of services
and other hurdles were outweighed by the country's low-cost, educated labor
force, expected entry in ASEAN and long-term economic potential. 
	"Our experience has been very positive," said Hiroshige Seki, general
manager of the Yangon branch of Marubeni Corporation. "The economy is
growing, and within five years we expect to see a lot of development." 
	Japan is the ninth-largest investor in Myanmar, with some US$184 million in
committed investment at the start of this year, most of it in real estate
and hotel development. About 70 Japanese companies now have branches in
Yangon, led by large trading groups like Mitsui, Marubeni and Mitsubishi -
some of whom have been doing business in Myanmar for decades. In recent
years, Japanese construction companies have entered the market, and small
enterprises like service centers are now being established. 
	And in Yangon, the Japanese economic profile is increasingly prominent.
There are Nissan, Isuzu and Suzuki showrooms downtown, Japan Airlines has a
tie-up with Myanmar International Airlines, Japanese banks crowd the
prestigious International Business Center, and Daiwa Research is a joint
partner in the country's fledgling stock exchange. 
	And some large Japanese companies are expanding in broad areas, and have
the resources to bring off major developments independently. "There are 27
companies in the Mitsui group," said Nagai. "We have banking, insurance,
petrochemicals. Once our company decides to implement a project, we can
organize the financing." 
	But at the official level, Tokyo is still cautious about Myanmar, and many
smaller Japanese businessman are waiting until Tokyo restarts matching
grants and assistance programs to Myanmar before investing. Official
Development Assistance (ODA) has been on hold since 1988, and United States
objections over human rights issues have prevented the International
Monetary Fund and the Asian Development Bank from extending loans to
Myanmar, hindering large-scale infrastructure development. 
	Last year, pro-democracy leader Aung San Suu Kyi attacked Japanese
investment in the Tokyo press. "If businessmen do not care that our workers
are exposed to exploitation, they should at least be concerned that a
dissatisfied labor force will eventually mean social unrest and economic
instability," she warned. Large Japanese companies who come to Myanmar "to
enrich themselves", she added, were among the "despoilers" of the nation. 
	But Japanese investors said that view was inaccurate. "I don't understand
why anyone would complain that we're creating jobs," said one Japanese
businessman in Yangon, whose company employs more than a thousand local
workers. 
	"People are very happy to have jobs with Japanese companies. We pay better
than most other employers, and we take better care of our employees. Other
Asian investors complain that we pay our workers too much." 
	"A lot of clients are careful because of the political situation," added
Kiyoshi Nakano, general manager of the Yangon branch of the Japanese
engineering firm Hazama, which is putting up the Royal Lake Hotel in
downtown Yangon. "But the most important thing is to improve the
infrastructure, then the awareness of the people will change." 
	Businessmen in Yangon also expressed disappointment with the US decision in
April to impose economic sanctions on Myanmar. "It was very sad for us,"
said one Japanese investor. "The sanctions don't help anyone. America should
take an important role and take part in the international consortiums." 
	Despite the increasingly hard line taken in the West, Japan's Foreign
Ministry said recently that Japan is "not contemplating imposing sanctions
on Myanmar at the present time", and some analysts believe that ODA may
start again soon. 
	"Japanese investment is tentative and will remain so until ODA is resumed,
and the Japanese government can guarantee projects," said Michael
Dobbs-Higginson, chief executive officer of Myanmar Investments Management
in Yangon. 
	"The Foreign Ministry is ultra-conservative and very cautious. But if ASEAN
brings Myanmar in, this will change, and then it becomes an interesting
equation. Japan has no real friends in Asia - the only friend it has is
Myanmar. There's a special relationship with this country." 
	The idea of a special relationship is widely shared among Japanese
businessmen, who note that both countries have long historical ties and
share non-confrontational cultures. "The Myanmar character is very similar
to the Japanese character, and we communicate very easily," explained
Marubeni's Seki. "In Japan, we say 'yes' but we don't always mean 'yes'," he
said, laughing. "It's the same thing here." 
	Moreover, said one analyst, Myanmar was looking for regional supporters to
balance India and China, with which it shares borders. But the most
important factor in developing ties, many have said, may be the mutually
beneficial marriage of Japanese technology and capital with Myanmar's
low-cost labor pool and prime geographic location. 
	The Japan Development Institute (JDI), which has set up industrial zones
throughout Southeast Asia, is looking for ways to help Myanmar develop
infrastructure - even without aid from the international financial
institutions. In this way Japan has a key role to play in Myanmar's
development, according to Shoichi Kobayashi, the JDI's deputy director. 
	"I use the metaphor of the bird sanctuary," he said, during a recent trip
to Yangon. "In the mid-1980s, Japanese manufacturers began looking for new
lower-cost manufacturing areas. But when these industrial 'birds' looked
south, they found that the countries of Southeast Asia weren't able to
support them, in terms of services, legal structure and infrastructure. So
we began developing 'ponds' for these birds to settle in. We developed
large-scale industrial zones in Thailand, Malaysia and Indonesia, and you
can see that they have had a tremendous impact. It's really nation-building
at the core." 
	Kobayashi is helping develop seven special economic zones in Myanmar to
draw in investors from Japan, South Korea and other Asian countries. He has
drafted plans for special zones around Yangon, Mandalay and other cities, as
well as in more remote parts of the country. 
	"This kind of project is not so profitable," he said. "Normally the
government should do it, but there's not much money. So it's volunteer work.
I've tried to persuade the private sector in ASEAN and Japan to help, and I
think I'll get their support." 
	Myanmar's potential was so great, said Kobayashi, that it could fast
outstrip many of its neighbors. "They have an open ear compared to Vietnam,
where they don't know how to make a decision and are greedy with land," he
said. "If properly guided on land and industrial policy, this country could
move forward much better than Vietnam, China, Africa and the countries of
Eastern Europe." (AT)

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

BKK POST: 'PERMISSION OBTAINED' TO DREDGE RIVER
May 28, 1997 [abridged]
Supamart Kasem, Tak

Burmese authorities claim dredging of the Moei River opposite Mae Sot
district is taking place with the consent of Thai authorities.
	The commander of the 4th Infantry Division, Maj-Gen Chalor Thongsala,
quoted Burmese representatives as saying some high-level Thai officials had
allowed Burma to dredge the river opposite Ban Rim Moei to change its flow
to its original course.
	The Burmese claim was made yesterday at a meeting of Thai and Burmese
officials led by Maj-Gen Chalor and the director-general of the Burmese
Treaties and Legal Affairs Department, U Aye Lwin, in Mae Sot.
	At the meeting, the army asked Burma to stop the dredging and proposed that
the two countries withdraw their troops and heavy equipment from the area.
	Burmese representatives promised to suspend the dredging and agreed in
principle to withdraw their soldiers and machinery from the site only after
they obtained an order from the authorities.
 	Tak Governor Pongphayome Wasaphuti said higher-level officials had never
told provincial officials that Thai and Burmese authorities had allowed
Burma to dredge the river.
	A Thai-Burmese technical committee led by the director-general of the
Treaties and Legal Affairs Department, Somboon Sa-ngiambutr, and his Burmese
counterpart, would meet on Friday to resolve the problem, the governor said.
	Informal talks between members of the technical panel might be held sooner
as Mr Somboon was scheduled to arrive in Mae Sot district this afternoon, he
added.
	About 100 villagers from Ban Mae Dao and Ban Rim Moei in Tambon Tha Sai
Luad gathered yesterday afternoon opposite the dredging site to protest
against Rangoon's action and to support Thai troops that are preventing the
Burmese from crossing into Thailand.
	Twenty people who lost their land when Burma began carving out the new
channel showed their land ownership papers to the press and urged Deputy
Interior Minister Chaipak Siriwat to help them.

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

THAILAND TIMES: GUNFIRE AT BORDER PUTS TROOPS ON ALERT FOR BATTLE
May 28, 1997 [abridged]
By Assawin Pinitwong

TAK: The sound of gunshots ricocheted through the Thai-Burmese border area
yesterday, but fighting between the heavily armed Thai and Burmese troops
confronting each other on a disputed island in the Moei River was narrowly
avoided.
	Soldiers from both sides reacted swiftly when they heard the firing,
preparing themselves for battle and moving closer to leave a distance of
just five meters between them, border officials said.
	But it soon became apparent that it was a false alarm, the gunshots having
come from clashes between Burmese troops and the Karen National Union (KNU)
not far from the contested area. The soldiers quickly backed off.
	Reinforcements brought in on Monday have swelled the number of troops on
the contested Kok Chang Phuak island to over 500. Thailand's threat of
military force against the Burmese came after repeated requests for the
junta's troops to halt their excavation work in the area were turned down.
	
*********************************************

BKK POST: EDITORIAL - DOES ASEAN NEED SUCH A BRUTE?
May 28, 1997

Burmese troops have occupied a disputed island along the border with
Thailand and are acting in their usual manner of being totally indifferent
to even the most basic norms of civilised behaviour. But these men are only
acting at the border of people Thailand feels should be welcomed into the
regional community.

The forced occupation by Burmese troops of a disputed islet in the Moei
River to protect a dredging crew is provocative, totally unnecessary and
unbefitting of a friendly neighbour. There are civilised means of settling
disputes between states sharing a common border, and they most definitely do
not include resorting to brute force. 

Negotiation is the standard practice recognised internationally.

The deployment of troops and the planting of flags to lay claim to this
small islet inhabitated for generations by Thai villagers clearly
demonstrate Rangoon's blatant disregard for accepted practices and Thai
sovereignty over the islet. This outrageous action illustrates all too well
the Burmese junta's reluctance to settle border disputes with Thailand in a
peaceful and civilised manner.

But given Slorc's record of blatant human rights violations and its contempt
for all things civilised, we should not be surprised by the forced
occupation which led to the uneasy confrontation. It was typical of the
Burmese military junta's approach to settling disputes - that is, through
the barrel of a gun.

 Thailand is simply being treated in the same manner as a pro-democracy
civilian on the streets of Rangoon or a member of a minority living in areas
along the border.

This latest border conflict should serve as a signal to the Thai government
to rethink its support for Burma's early membership of Asean. If the Burmese
junta understands only the heavy-handed approach and fails to recognise that
peaceful settlement is enshrined in the Asean treaty of amity, then its
entry to the regional grouping cannot be allowed - not now and not until it
changes its brutish ways. (BP)

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

ASIAWEEK: ASIAWEEK'S POWER 50 
May 30, 1997 [abridged - only includes Burma 'power brokers']
Robin Ajello 
 
  A year is a long time for power brokers, especially in the New Asia 
where clout is less a given than a reward. In our second annual ranking, 
three factors stand out: democracy, globalization and media. 
 
                                45 Maung Aye 
 
ARMY CHIEF, SLORC DEPUTY CHAIRMAN, MYANMAR 
BORN Dec. 25, 1937, in Sagaing Division, Burma 
EDUCATION Defense Services Academy, Maymyo 
FAMILY Married, one daughter 
ADDRESS Defense Ministry, Yangon 
 
POWER SHIFT A hardliner with little time for political niceties, he is 
the man behind the near-rout of the long-running ethnic Karen 
resistance. Next in line to take over the State Law & Order Restoration 
Council and a major force behind the military junta's tougher line on 
dissidents and rebels. He is suspicious of too much economic 
liberalization. This man will keep a lid on political freedom. 
 
Thirteen people dropped out of the Power 50. Here's why---- 
Myanmar dissident Aung San Suu Kyi (No. 50 last year)has suffered 
setbacks in challenging her countrie's dominant power. Suu Kyi's weekly 
rallies outside her Yangon home have stopped after the ruling junta 
barricaded her street. Her movements have been more cautious following 
an attack on her car. 
Yangon's harder line also suggests that relatively moderate General Khin 
Nyunt (No. 39) has lost clout; other minuses for the intelligence chief 
are the failure of his Visit Myanmar Year hospitality offensive, and the 
recent bomb attack on a top general's daughter. 
 
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BKK POST: CONSTRUCTIVE ENGAGEMENT NEEDS BUSINESS  
SUPPORT 
May 23, 1997 
John R.Schermerhorn, JR 
 
WITH President Clinton's ban on further US investment in Burma,  
attention shifts again towards those inclined to get tough with the Slorc. 
 	Sentiment against the military junta is running high in the European Union
ad North America, fuelled by an April 16 condemnation by the  United Nations
Human Rights Commission. But as good as confrontational methods may seem to
many, Asean's preference for constructive  engagement must be respected,
Indeed, the policy deserves better support. 
 	Even as anti-sanctions lobbies and anti-constructive engagement activists
criticise each other's tactics, Slorc's generals continue their 
reprehensible ways. National League for Democracy leader Aung San Suu  
Kyi is harassed, the democratic government elected in 1990 is kept from  
taking office, sanctuary is lent to drug lords, and citizens are mistreated  
through forced labour, involuntary reallocations and more. 
 	It is time for those concerned about Burma's social and economic future to
find the common ground - the desire to change the present situation for the
better as soon as possible without physically harming anyone in the process.
What that world needs is a coherent sanctions and constructive engagement
strategy. 
 	Step one is for governments inclined towards sanctions to stop simply
talking tough ad start walking the tough talk. President Clinton took a
half-step in dealing with others by banning future American investment; a
full step would have banned all of them. As it is, the US$1.2 billion (31.2
billion baht) Yadana gas pipeline project (involving America's Unocal,
France's Total and the Petroleum Authority of Thailand) continue  
unscathed. The largest of all the foreign investments, it is reputably worth  
some $400 million (10.2bilion baht) in annual revenues to Slorc when  
operational. 
 	With the junta teetering on bankruptcy, cancellation or loss of business
deals further hits where it hurts most - in the pocketbook. Levi Strauss,
Carlsberg, Eddie Bauer, J.Crew. Liz Claiborne, Apple Computer and other
multinationals have left voluntarily. Even Pepsi Co, wit its bottling
operation long a trump card in Slorc's public relations battle for 
credibility, finally cut its ties with Burma. 
 	Step two in the two-pronged strategy is to add real meaning to
constructive engagement. 
 	Tough sanctions and boycotts can actually help the Asean policy by  making
a financially-weakened Slorc more dependent on its neighbours. But this
power must be well used. Deals with Asian businesses shouldn't be sold cheap
or for money alone. They should be available but expensive, and they should
be sealed with commitments to demonstrable social and  economic progress. 
 	The economic risk of the Asean policy is that; in practice, "constructive"
really means "business as usual". If there is an available resource in
Burma, someone will go after it. The Yadana projects is a reminder of that. 
 	When foreign firms persisted in dealing with apartheid South Africa, Leon
Sullivan, an African American minister and director of General Motors,
challenged their support of an immoral regime by proposing a set of
investment principles. The goal of this well-respected "Sullivan Code" was
to at least commit investors to hiring, pay, training. Promotion and
community development practices that could help weaken apartheid from within. 
 	Similar principle can guide Asean's constructive engagement of Burma.  But
they should be of Asean creation, not Western imposition. 
 	Leaders of Asia's world-class firms must declare their values,
individually and collectively, and act on them. One of Southeast Asia's
prestigious universities or institutes now has a perfect opportunity to host
a forum that tallies the region's indisputably respected business leaders to
address this challenge. The goal would be noble - to commit their names and
corporate reputations to a statement of principle guiding foreign 
investments in Burma. 
 	Asian businesses must set standards for operations management and
conditions of employment consistent with the April 16 UNHCR resolution
regarding human rights, democratic processes and minority populations. Asian
businesses must take bold steps to invest in social development - perhaps
arranging revenue set-asides to directly fund improved living standards such
as housing, public services, education and health care. If Asian businesses
do this, and hopefully more, Slorc will then understand the real terms for
those business deals it so desperately wants and needs. 
 	Constructive engagement of Burma is a broader task than Asean  
governments can shoulder alone. 
 	Asia's businesses must contribute their share of leadership support. Now
is the right time for all forces to act in concert. While the threat of
losing investors to sanctions and boycotts puts Slorc on the run, Asean
diplomacy and business-supported constructive engagement must actively guide
it in the right running fast enough, those generals won't have time to shoot.  
 
John R. Schermerhorn, Jr is a member of the Faculty of Southeast Asian 
Studies at Ohio University. A visitor to Bangkok University, he has worked 
extensively in Asia as an educator, researcher and consultant. (BP) 

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XINHUA NEWS AGENCY : MYANMAR TO INVITE MORE FOREIGN 
FIRMS FOR MINING
May 27, 1997

   Arrangements are being made to invite more foreign companies for the 
third time for exploration of new mineral deposits in Myanmar, Minister 
for Mines Kyaw Min was quoted by today's New Light of Myanmar as 
saying.  In a report to the Myanmar Foreign Investment Commission here 
on Monday, the minister disclosed that 14 blocks were granted to six 
foreign companies in 1994 for the first time and nine others to five 
companies in 1995 for the second time for exploration of gold, copper, 
lead, zinc and nickel in prospective areas in the country.  Of the first 14 
blocks, those in Banmauk, Thabeikkyin areas were most promising and 
could become major mines with five other areas such as Letpadaung, 
Kwinthonze, Popa, Banmauk and Pinlebu showing encouraging signs, he 
said.  However, the results of the second nine blocks were unknown yet 
since they are being under survey, he added.  In addition to cooperating 
with foreign companies for exploration of new mineral deposits, Myanmar 
also expanded the existing and already established mines of its state-owned 
enterprises in production of copper, gold, lead, zinc, silver, iron ore, steel 
and coal with foreign companies which include those from Canada, the 
United States and Australia respectively undertaking copper, gold and 
other mining in the country. According to the latest official statistics, 
foreign investment in Myanmar's mining sector amounted to 498 million 
US Dollars in 42 permitted projects at the end of March this year.  
Myanmar's gross domestic product of mines increased 6.5 percent in the 
1996-97 fiscal year over the previous year's.  The sector enjoyed an average 
annual production growth of 10.5 percent during the previous four-year 
short-term national economic plan (1992-93 to 1995-96).

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THE NATION: REPRESSIVE SLORC RULED BLAMED FOR BURMESE INFLUX
May 28, 1997
By Yindee Lertcharoenchok 

BURMA'S repressive military rule and absence of democracy, rule of law and
respect of human rights were the major causes of the influx of about one
million illegal immigrants into Thailand, academics and scholars said
yesterday. 
	They said if Burma's living and economic conditions was as good as the
Burmese junta has always claimed, the people would not leave the country in
huge and incessant numbers as life in refuge countries can lead to hardship
and uncertainty. 
	The discussions were part of a three-day national seminar entitled:
''Policy Options for the Importation of Foreign Labour into Thailand: A
Study of Interest Parties, Legal Issues, and the State Management System". 
	The seminar, which ends today, has drawn some 400 academics, scholars,
representatives from the government and private sectors, as well as social
workers to discuss and brainstorm the findings of a research project on
illegal immigrants and foreign labour. 
	The seminar, organised by Mahidol University's Institute for Population and
Social Research and Thailand Research Fund, will later submit its findings
and recommendations to the government for use as a guideline in formulating
a more viable national policy towards foreign labour, Kritaya Archavanitkul,
the project director, said. 
	The speakers urged Thailand to review and reform its ''underhanded" policy
towards Burma, saying the current ''constructive engagement" strategy, which
has also been adopted by the Asean grouping, was not well-balanced in its
implementation. 
	hey also criticised Asean's constructive engagement policy which aimed at
only engaging the ruling Burmese State Law and Order Restoration Council
(Slorc) in return for economic benefits, ignoring the public and
pro-democracy movement. The policy has not helped bring about openness and
democratisation, they said. 
	From her joint studies and field interviews with Kritaya, Ponsook
Kertsawang, from Mahidol University's Institute for Population and Social
Research, concluded that the root cause of the massive outflow of Burmese
was ''the government in power which has been instigating lasting conflicts,
imposing widespread human rights abuses and all forms of compulsory
taxation, fees, quotas and donations". 
	She said Slorc has implemented a policy of Burmanisation (the assimilation
of all people in the country), religious, language and social
discrimination, as well as forcibly relocating people and forcibly
conscripting them for use as labour, porters and soldiers. 
	Slorc's economic policy relied heavily on its black market economy and
although the regime has claimed to have adopted a free market economy, the
country's ''dictatorial system" only supported widespread corruption and
abuse, but given economic gains to the powers-that-be, she said.
	''From the continuous exodus of the Burmese people, particularly those in
the last year, we found that these people, especially the ethnic Shan and
Karen, must be living under such intolerable conditions to make them become
asylum seekers in Thailand, where they also face and risk mistreatment,
instead of remaining in Burma," Ponsook said. 
	Supang Jantawanit, from Chulalongkorn University's Asian Research Centre
for Migration, warned that the presence of a huge number of Burmese
immigrants here posed a big threat to Thailand's national security
concerning crime, socio-politics, economics, health care and foreign policy. 
	Somchai Hom-La-or, from Forum Asia, said Thailand's national policy towards
Burma was ''underhanded" as it has been directed by economic lobbyists and
various interest groups who want to exploit Burma's rich economic potential. 
	Thailand has never really understood Slorc and thus has been playing ''the
underdog" to the regime in expectation for a return of Burmese economic
contracts, even to the extent of destroying Thailand's historical relations
with various Burmese ethnic groups along the border, he said. 
	He urged Thailand to balance its national policy by cultivating relations
with Burmese pro-democracy politicians and the ethnic groups or it could
face difficulties as he strongly believed that Slorc would be replaced in
five to 10 years by a democratic government. (TN)

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