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The BurmaNet News: February 15, 199



Subject: The BurmaNet News: February 15, 1999

------------------------ BurmaNet ------------------------
"Appropriate Information Technologies, Practical Strategies"
----------------------------------------------------------

The BurmaNet News: February 15, 1999
Issue #1207

Noted in Passing: "Why do they want to give money to the Burmese butchers?
I will continue to protest to the end." - Sulak Sivaraksa [see THE BANGKOK
POST: FUEL TO THE FIRE] 

HEADLINES:
==========
THE NATION: BURMA GENERAL CALLS FOR ANNIHILATION 
BKK POST: CROWDS FLOCK TO SUU KYI'S CEREMONY 
BBC: POLITICAL ACTIVIST FREED FROM PRISON 
CRPP: NOTIFICATION NO. 6 
THE NATION: POLITICS OF THE BURMESE MILITARY CLIQUES 
BKK POST: FUEL TO THE FIRE 
BKK POST: SURIN AIMS TO DEFUSE ROW WITH EU 
****************************************************************

THE NATION: BURMA GENERAL CALLS FOR OPPONENTS' ANNIHILATION 
13 February, 1999 

AP

RANGOON - Burma's leader called for the annihilation of traitors in a
speech yesterday to mark Union Day, a holiday celebrating national unity.

An aide to opposition leader Aung San Suu Kyi said her political party
would hold subdued, private celebrations in her Rangoon compound as many
party members were still being detained by the military government.

"Annihilate internal and external destructive elements who are trying to
disrupt the tranquility and development of the country," Gen Than Shwe,
chairman of the military government, said in a speech read by a subordinate.

The government held a small flag-raising ceremony with members of Burma's
eight major ethnic groups in a Rangoon park to mark the holiday.

Union Day commemorates the signing of the 1947 Panglong Agreement between
the ethnic groups and the Burmans, who make up the majority of the population.

The treaty was engineered by Suu Kyi's father, Gen Aung San, regarded as
the founder of modern Burma, and one of the few Burmese who earned the
trust of the ethnic groups.

Aung San was assassinated in 1947 and relations between the Burmans and the
ethnic groups deteriorated, eventually breaking into open warfare.

The military government has induced many of the ethnic groups to sign
ceasefire agreements, but some ethnic insurgencies are still continuing.

The government has accused Suu Kyi of having illegal contacts with
insurgent groups, an act punishable by a prison term.

In past years, Suu Kyi's party, the National League for Democracy (NLD) has
held large celebrations open to the press and diplomatic community on Union
Day.

Representatives of ethnic groups participated, as Suu Kyi has received some
residual respect for being the daughter of Aung San.

Some insurgent groups have voiced support for the 1991 Nobel Peace Prize
winner's campaign to bring democracy to Burma.

The government, however, has sharply increased its degree of pressure on
the NLD in recent months, detaining nearly 1,000 of its members while,
according to party leaders, coercing thousands of others into resigning.

The government claims the resignations were voluntary.


In Bangkok yesterday, about 40 exiled Burmese students protested against
government repression in front of the Burmese embassy.

Also in Bangkok, a member of Burma's government-in-exile said that although
the military had forced NLD members to resign, support for the party
remained strong.

"Even though they resigned from the NLD, they are still on our side to
support democracy in Myanmar, said Thein Oo, at a news conference.

Thein Oo was elected to parliament in a 1990 election the military refused
to honour. The NLD won 82 per cent of the seats in the legislature.

"Thein Oo called on the international community to step up pressure on the
military to honour the election result.

Also yesterday, 30 of Thailand's most prominent lawyers issued a statement
condemning Burma's military government, which it called illegitimate, for
its treatment of the country's ethnic minorities.

"Today [Friday], we express deep concern at the attempts [of the
government] to destroy the spirit of unity and peace symbolised by the
Panlong Agreement," the lawyers said. 

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

THE BANGKOK POST: CROWDS FLOCK TO SUU KYI'S CEREMONY
13 February, 1999 

RANGOON, AFP

Hundreds of Rangoon's poor flocked to democracy leader Aung San Suu Kyi
yesterday, as Burma's junta leader used a national unity holiday to demand
a patriotic drive to crush her political opposition.

Aung San Suu Kyi handed out free rice to huge Union Day crowds thronging
the headquarters of her National League for Democracy (NLD), witnesses said.

Teams of security officials kept a close watch on the crowds, and official
photographers snapped pictures of supporters outside the city-centre offices.

Nobel laureate Aung San Suu Kyi refrained from addressing the crowds to
avoid provoking authorities who had earlier tightened Rangoon's visible
security measures, witnesses said.

[ ... ] 

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

BBC: HIGH PROFILE POLITICAL ACTIVIST FREE FROM PRISON 
11 February, 1999 by Larry Jagen

[BurmaNet Editor's Note:  Please see an AFP article on Ma Thida's release
in The BurmaNet News, 12 February, 1999 (Issue #1206) for more information
on Ma Thida's release.]

Burmese Authorities Make Human Rights Gesture?

This release could be seen as a human rights gesture to the West

The Burmese writer, Ma Thida, has been released from jail after serving
five years of a twenty-year sentence. She was jailed in October 1993 after
being found guilty of illegally distributing materials published by
anti-government groups. A government statement said she was pardoned on
humanitarian grounds. Ma Thida is a former associate of pro-democracy
leader Aung San Suu Kyi. East Asia Today's Larry Jagan has this report:

Sources close to the writer's family told the BBC that Ma Thida, who was
released on Thursday, is very happy and in good health. There have been
grave concerns about her health since she was imprisoned five years ago.
According to her family, she'd been hospitalised several times during her
imprisonment. A doctor by profession, Ma Thida is one of Burma's most
famous contemporary writers. She started writing short stories portraying
the harsh realities of Burmese life while she was an undergraduate in
Rangoon fifteen years ago. They were widely read and her distinctive style
earned her a national reputation almost overnight. But it was Ma Thida's
political association with the opposition leader, Aung San Suu Kyi, that
finally led to her imprisonment. During the election campaign a decade ago,
she toured the countryside with Aung San Suu Kyi, campaigning for the
National League for Democracy.


After Aung San Suu Kyi was put under house arrest in June 1989, Ma Thida
continued to be politically active. The Burmese authorities say she's been
pardoned for humanitarian reasons. But analysts believe that her release
may also be part of the government's attempt to improve its international
image and deflect criticism of its human rights record. In the past few
days, the European Union has urged Rangoon to make a human rights gesture
if it hopes to participate in the EU-ASEAN meeting scheduled to take place
in German capital Berlin at the end of next month. Burma's generals will
not want to be seen to be making concessions to Western pressure, but there
is no doubt that they will be hoping for some reward after the release of
such a high-profile prisoner. 

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

COMMITTEE REPRESENTING PEOPLE'S PARLIAMENT: NOTIFICATION NO. 6 
9 February, 1999 

Representatives of the People elected to the People's Parliament in the
1990 multiparty democratic elections (Committee representing People's
Parliament)

Notification No 6 (2/99)

1. NLD parliamentarians-elect U Bo Zan and U Ngwe Tun of Kyaukpadaung
township in Mandalay Division were overwhelmingly voted in by their
respective constituents. Information to hand now is that authorities are
resorting to every illegal devise using force and intimidation to get them
to relinquish their positions and that the individual actually engaged in
this activity is U Zaw Lwin, township chairman.

2. The above mentioned parliamentarians-elect are the legal People's
Parliament representatives as per the laws and rules decreed by those who
unjustly usurped state power in 1988. They have violated no provision of
law. Therefore they can not be ousted from their positions by any law or
any means. The authorities are in breach of the law of crimes in resorting
to criminal intimidation and coercion.

3. Because the above two persons have not lawfully resigned the said
township chairman U Zaw Lwin has resorted to the illegal methods as set out
below:-

(a) U Bo Zan's wife who suffers from a nervous disorder was summoned to the
Township Chairman's office on the 3 February 1999 at about 9:30 a.m and in
a rude and dicsourteous manner threatened and frightened her thus within
hearing of her husband:-

- that the NLD would inevitably be destroyed;

- that family members would be removed from public service and the children
would be expelled from school;

- that every means would be used to cause loss in any business undertaking;

- action would be taken against them for any  bank loans and future bank
loans would be refused;

- that NLD is an organisation that is in opposition to the government;

- that these measures formed part  of a special campaign.

(b) The same threats were made to U Ngwe Tun's family members.

4. U Ngwe Tun and U Bo Zan were arrested and produced before the
authorities at about 12:30 and 13:00 on 4 February 1999 respectively and
pressured to resign but both adamantly refused. They were then released at
night (22:00 hours).


5. Information to hand is that because of this, the authorities will
resort to the tactics used in the case of U Than Tun.

6. Ko Aung Win Kyi, Secretary of the USDA organisation has been assigned
the task (to be completed by the 15 February 1999) of forcibly seizing
family members card that each household has to be hold and to complete a
prescribed form (attached below) by visiting every house and after entering
the list of persons to obtain only the signature of the head of the
household. These forms would be used to proclaim the loss of confidence and
support for their elected representatives.

7. Though voting was not compulsory, on the eve of the general elections in
1990, in spite of some threats and intimidation, people cast their vote out
personal conviction and choice resulting in the election of these People's
Parliament representatives. This fact has been acknowledged by the
authorities. Only after establishment of a People's Parliament, if a member
so desires, he must present his resignation to the Speaker of the House and
only with the approval of all the members of the House will that
resignation be effective. There is no other way and no one has legal
authority to permit and proclaim such resignation.

8. Because the authorities have failed to convene a People's Parliament as
prescribed by law the people's representatives have not been able to act
for the people and now that they have indicated that they will convene
parliament themselves, illegal and unjust measures are taken against them.
No blame can be attached to the People's Parliament representatives. The
blame is entirely on the heads of the authorities and they will suffer the
ire of the people.

9. Besides, the authorities have prevented the people's representatives
from visiting their constituencies by all sorts of illegal means. How can
anyone fulfil their legal obligations under these circumstances? People are
capable of thinking.

10. In addition to U Bo San and U Ngwe Tun, information to hand is that the
authorities intend to apply the same illegal tactics in the near future to
U Lun Tin, member of the Central Executive Committee of the NLD and
People's Parliament Representative for Mon State, Moulmein township,
Constituency Number 2. U Lun Tin was actively engaged in the struggle for
independence of the country up to 1948.

11. Further information received is that similar illegal tactics will be
used against U Hla Pe, another person actively involved in the independence
movement. He is an NLD Central Executive Committee member and People's
Parliament member for Irrawaddy Division, Moulmeingyun Township,
Constituency No.1. The same will happen to U Tin Oo and U Myint Thein,
members for Constituencies 1 and 2 of Myanaung Township.

12. The measures taken by the authorities as shown in paragraph above is in
no way consistent with law. It is meaningless and futile. Sovereign power
of the people is being violated by the authorities. This flagrant abuse of
power and browbeating tactics is an affront to the people.

13. To promote one's policies by deceitful, browbeating and vaunting
tactics is wrong and fraudulent. The authorities will not achieve the
results that they envisage. It will create more opposition and the people
are very aware of this fact.


Committee Representing People's Parliament
(Responsibility for this publication is taken by the National League for
Democracy.)

----------------

(The following forms are used by SPDC to record signatures from the people
for this purpose.)

Form (1)

Record of signatures of the constituents alleging non-confidence in U Ngwe
Tun, Representative from MyinGyan District, Kyaukpadaung township No (2)
Constituency.


No: / Name / Father / National / age / Job / Village / Village / Signature
/ Remark 
	name   Registration             tract
		No


--------------------------------------------


Form (2)

Record of signatures of constituents alleging non-confidence in U Bo Zan,
Representative from MyinGyan District, Kyaukpadaung township No (1)
Constituency.


No: / Name / Father / National / age / Job / Village / Village / Signature
/ Remark 
	name   Registration             tract
		No

--------------------------------


Form (3)

Record of signatures of constituents alleging non confidence in U Lun Tin,
Representative from Moulmein Township No (1) Constituency.


No: / Constituent's name / National / age  / Address / Signature / Remark 
		      Registration
			   No

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

THE NATION: THE POLITICS OF THE BURMESE MILITARY CLIQUES 
14 February, 1999 by Chao-Tzang Yawnghwe 

WHAT HAPPENS (OR DOES NOT HAPPEN) IN COUNTRIES UNDER MILITARY RULE IS THE
FUNCTION OF INTRA-MILITARY POLITICS AND THE EXISTING POWER EQUATION WITHIN
A POLITICALLY DOMINANT SEGMENT OF THE MILITARY.

On an official visit to Japan in January 1999, courtesy of the Japanese
Foreign Ministry, Gen Kyaw Win, No. 2 to Khin Nyunt - the defacto strongman
of Burma - accused Daw Aung San Suu Kyi of obstructing the path to a
multiparty system and "hampering national unification and economic
development".

The military's version of why there has been no change or progress seems
plausible on the surface. But a more rational explanation for stagnancy is
to be found elsewhere. According to analysts who are familiar with the
power dynamics of military regimes, what happens (or does not happen) in
countries under military rule is the function of intra-military politics
and the existing power equation within a politically dominant segment of
the military. In a political landscape where there is no other centre of
power, it is misleading to read too much into what the opposition, if it is
allowed to exist, say or do.

In the aftermath of a military seizure (unlawful by definition) of power,
no military leader claims as the new regime's goal, the perpetuation of
military rule. Coup-makers invariably proclaim that their goal is to hand
power over to elected politicians (or parliament) as soon as things return
to normal, or a certain economic benchmark is attained.

What transpires however is that, once in power, the ruling generals tend to
proclaim that the goals, the benchmarks for the transfer of power to
civilians, are still too far away. And they give many reasons for their
failure (where, in such cases, failure serves their interest). They range
from continuing armed rebellions, foreign threats or subversion,
intransigent opposition groups or leaders, the inherent backwardness or
immaturity of the people (and their unfitness for democracy), low or
unsatisfactory economic growth (owing to foreign sanctions, for example, or
drought, crop failure, etc), or best of all, the argument that only the
military "can do", and are therefore indispensable.


Military regimes however do not last forever. As put by a scholar of
military politics with long experience in Burma watching, these regimes are
weakest when the strongman-ruler, the No.1 -- Gen Ne Win in Burma's case --
is in decline, physically or otherwise.

It is at such a time that the military ruling bloc is more or less
paralysed. Its only strategy then is to maintain an uneasy status quo
because no one can (or dares to) act decisively for fear of displeasing or
arousing the suspicion of the old No.1 whose role is that of an erratic
"wild card", owed to the residual power he holds and fear he still inspires.

The survival and future of every potential or aspiring successor is
dependent on how he plays the "wild card" in the game of "court intrigues".
Anyone aspiring to become the new No.1 -- Lt Gen Khin Nyunt, in Burma's
case -- must necessarily be skilled in handling the old No. 1, lest his
rivals -- ie, Gens Maung Aye, Tin U, and a clique around Senior Gen Than
Shwe -- succeed in turning the old No. 1 against him. As noted by a
military specialist stationed at a Western embassy in Rangoon, so long as
the old No. 1, Gen Ne Win, is alive, there can and will be no new
initiatives. An example given of this, is the lack of progress in the
drafting of a new constitution and the frequent postponement of "National
Convention", which was first convened in January 1993.

As well, knowledgeable Burmese attribute the refusal of the junta to hold
meaningful talks, its unwillingness to discuss anything of substance with
the opposition, the NLD (National League for Democracy), and especially
with the popular, charismatic Nobel laureate, Daw Aung San Suu Kyi, to what
can be termed, the "Ne Win factor". It is widely believed in Burma that Ne
Win, the old No.1, was deeply offended by a remark made by Daw Suu Kyi's in
1989, asserting that the armed force, the  tatmadaw, should play the role
envisioned for it by her father, Gen Aung San: the role of a professional
body under the command of a legitimate, civilian government -- implying
that Ne Win had corrupted the tatmadaw.

As such, no ruling general, including the now quite powerful Khin Nyunt,
dares to engage in any dialogue with the NLD, especially with Daw Aung San
Suu Kyi, for to do so would provide his rivals with an opportunity to
jettison him, with the blessing of the No. 1. This was precisely what
happened to a handful of generals senior in rank to Khin Nyunt - Gens Kyaw
Ba, Tun Kyi. Myo Nyunt -- who flouted their wealth and power, over whom
Khin Nyunt apparently had very little control.

Complicating life further for Gen Khin Nyunt, the defacto but shaky No. 1,
is the existence of a hardcore "old guard" faction led by former Gen Sein
Lwin, notorious and hated for his role in the bloody suppression of student
protesters in 1988. It is said that Sein Lwin's henchmen are in charge of
the military's pseudo-political "mass organisation", the USDA (Union
Solidarity Development Association).

Given the power dynamics and the prevailing political equation within the
ruling military bloc, composed of aspiring strongmen-rulers and various
cliques and factions, it is only natural that there is no forward movement
in Burma. The only kind of politics aspiring strongmen and rival cliques
and factions are able to safely play in such an environment is one where
they try to prove to the old No.1 and to each other, that they are tougher,
more hardline, than the rest - ie, the kind of politics witnessed in recent
months in the form of holding mass rallies to denounce Daw Aung San Suu
Kyi, shutting down branch offices of the NLD and harassing its members.


Inertia, the lack of progress on almost every front, stagnancy, and so on,
are inherent in systems where power is monopolised by a few men (in uniform
or otherwise). This becomes more pronounced in periods when there is a
growing power vacuum, as the decline (physical or otherwise) of a military
strongman, or the old No.1, progresses.

Therefore, to blame the opposition -- in Burma's case, Daw Aung San Suu Kyi
-- for lack of progress and deadlock, can be compared to blaming the
passengers rather than the crews for an air disaster.

However, with rumours emerging again, that the old No.1 is about to pass
away, and if these rumours are valid, one can expect to see substantial
changes in Burma by this time next year.

One would either see Lt Gen Khin Nyunt becoming -- since he is the
brightest of the lot -- the new No.1, with-the military in charge for
perhaps another decade. Alternatively, there could be in place by this time
next year, a transition in progress, facilitated, paradoxically it would
seem, by none other than Khin Nyunt, he being, in the view of knowledgeable
Burmese, the most intelligent and flexible military leader in Burma.

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

THE BANGKOK POST: FUEL TO THE FIRE 
14 February, 1999 by Win Htein & Ralph Bachoe 

YADANA GAS PIPELINE: OIL INDUSTRY GIANTS HAVE ADDED TO TENSIONS ALONG THE
THAI-BURMESE BORDER.

In a silent market shrouded in morning mist near this western Thai border
pass, a group of Buddhist monks winds its way from one devotee to another
to accept meagre and humble offerings. Devout Buddhists, in return, receive
merit for filling the bowls of these pious men in saffron robes.

"Since the Burmese army ordered the pass closed, the merchants and traders
have vanished," lamented U Pha Su, a Tavoyan who has spent half of his 60
years in the once bustling village of Ban I-Taung.

Ban I-Taung, known to Thais as Thong Pha Phum, is in Kanchanaburi province
where the 700-kilometre Yadana gas pipeline crosses the border. The
pipeline stretches from the Gulf of Martaban in Burma to Ratchaburi
province in Thailand.


The pipeline project began in the summer of 1995 after the then ruling
State Law and Order Restoration Council, now the State Peace and
Development Council, granted gas exploration rights in Burmese waters in
1992 to Total of France and Unocal (Union Oil of California) of the United
States. The Petroleum Authority of Thailand signed a contract to buy the
gas from these two Western oil giants.

The project has since drawn protests from human rights groups,
environmentalists and Burmese villagers affected from the laying of the
pipeline.

U Pha Suu and other shopowners say the project damaged their business after
the Burmese army shut the border pass. Before the project was launched,
Thong Pha Phum, like any other border village, was a bustling trading
outpost where thousands of dollars changed hands on the black market. Goods
from Burma - jade, lead, tin, wolfram, seafood, cattle and other resources
were transacted in return for electrical components, auto spares, garments,
canned food, soft-drinks and gold from Thailand.

In December 1991, the Burmese army launched a major offensive at Nat
I-Taung (opposite Ban I-Taung) controlled by the Karen National Union
(KNU) and the All Burma Students' Democratic Front (ABSDF). During the
attack, about 100 houses, a school, a monastery and a church were torched.
About 1,000 Tavoyans fled to the Thai border.

Of the 40 battalions now scattered along the Tenasserim Division in
southern Burma, 10 are assigned to secure the pipeline and five to guard
construction of the Kanchanaburi Tavoy highway. The 10 battalions come
under Strategic Command No.8 (Light Infantry Battalions 401 and 410) and
have now been joined by Infantry Battalions 273 and 282.

Accommodation for the troops along the pipeline route was allegedly built
by forced labour, with villagers not only put to work from dawn to dusk but
providing construction materials like wood, bamboo and thatch. In addition,
land was allegedly confiscated without any compensation.

"In the summer of 1996, we had to work for the soldiers using our own
building tools [knives, hammers, saws, mattocks, etc] and material [wood,
bamboo, thatch]," said a refugee from Ohn-pyin-gwin; near Kanbauk village,
in Tavoy district.

"We were ordered to arrive at their compound by 7 a.m. and work until 5
p.m. We also had to bring our own food," he said.

He was talking to a reporter from the Democratic Voice of Burma at a
Burmese quarters of 3,000 in Thong Pha Phum who had fled Kanbauk to escape
harassment from the military.

Accusations of forced labour were also voiced by the Burmese opposition in
exile and international organisations such as Amnesty International, the
International Labour Organisation and Asia Watch. They claimed a
160-kilometre railway line had been built with forced labour to help
facilitate construction of the pipeline.


The $1-billion Yadana project was completed last year and has already began
pumping gas to Thailand.

An official from Total has denied the allegations, saying the region "has
shown speedy progress" since the company arrived. The company has also
published a pictorial depicting how it had aided development in 12 villages
in the Kanbauk area by building schools, dispensaries, markets,
monasteries, churches and by promoting livestock farming.

However, an information officer of the ABSDF brushed aside this publication
as sheer propaganda. "Why" he said, "if all this is true, are people
fleeing to Thailand?" In truth, he said, the people faced all kinds of
suffering such as portering, forced labour, land confiscation and
displacement.

According to local estimates, 15,000 refugees displaced by the project are
now sheltered in camps in Tham Hin, in Ratchaburi, and Ban Taung Yan in
Sangkhla Buri district, Kanchanaburi.

In September 1996, Burmese opposition groups sued Unocal, alleging the gas
deal with the Burmese regime resulted in widespread human rights abuses.

The suit was filed in Los Angeles, where Unocal has its main office by the
National Coalition Government of the Union of Burma (the parallel
government-in-exile) and the Federation of Trade Unions of Burma. It was
filed on behalf on the Burmese who had been displaced, killed or forced to
work without pay on a railway in preparation for the pipeline construction.

Also, mounting pressure from American and Burmese activists in exile to
halt investments in Burma, eventually forced the US administration to
impose economic sanctions on the military government in late 1997.

President Clinton issued an executive order to ban new US investments in
Burma because of the country's increased repression of democracy efforts.

Since then, multi-national giants such as Texaco, Arco and Pepsi have
withdrawn from Burma.

Earlier, in 1997, Texaco together with Premier Petroleum of the United
Kingdom, Nippon Oil Exploration and PTT Exploration and Production of
Thailand, a wholly-owned affiliate of PTT, signed a 30-year contract with
Myanmar (Burma) oil and Gas Enterprise to supply Thailand will natural gas
from Burma's Yetagun offshore field.

After Texaco's withdrawal, Malaysia's Petronas joined the consortium.

AFP, the French news agency, recently quoted official reports from Burma
that the Yetagun pipeline will be completed by the end of this year, after
which it will pump natural gas to Thailand. Construction began in November
last year.

The Yetagun field, in the Andaman Sea west of Burma, lies south of the
massive Yadana field and is estimated to hold 1,100 billion cubic feet (33
billion cubic metres) of gas reserves.


Together with the glut of this energy resource, the rot has set in. The
economic downturn in the region has played a cruel trick on both the buyer
and the seller. PTT now cannot afford to meet the $400-million-a-year
contract committed with the Burmese military regime and faces a huge fine
if its contractual agreements are not met. And SPDC's hopes of realising
this huge income have been dashed.

The Yadana project has also drawn protests from human rights and
environmental groups in Thailand.

Social critic Sulak Sivaraksa recently told DVB: "We have never agreed with
this project, it's a wrong decision by the Thai government. Why do they
want to give money to the Burmese butchers? I will continue to protest to
the end.

Sulak and 40 other activists were arrested in March last year for allegedly
blocking construction of the pipeline in  Kanchanaburi where he had been
staging a solo protest in Huay Khayaeng forest.

They claim the pipeline runs through the region's most pristine forests,
home to rare flora and fauna. Human rights advocates have also refused to
support the project on the grounds revenue from the investment will be used
to buy arms to suppress the democratic groups in Burma.

Sulak is now facing a lawsuit brought by PTT for obstructing the
construction of the pipeline. On the other side of the border, one of the
biggest problems is security. "How effectively can the SPDC troops guard
the pipeline?" said  a Burmese democracy activist.

There are no guarantees in the jungle. The pipeline and construction
compound have been attacked three times and the military bases about 15
times in the past, killing about 50 soldiers. At least five workers,
including a French national from Total, were reported killed and 11 injured
during these raids by forces fighting the Burmese government.

"We believe there will be no development without local stability. If they
want to do business, they must solve the armed crisis with the KNU as a
first step," said Padoe Kwal Htoo, chairman of KNU 4th Brigade Area, which
is believed to have mounted the attacks.

But Gen Bo Mya, the KNU president, insisted that his forces have no plans
to attack the pipeline as they are not terrorists. Instead the KNU wants to
solve the problem by holding talks with the SPDC, Thai officials and the
oil companies. However, there have been frequent clashes between government
troops and the multiple armed rebel groups deployed along the pipeline.

"It is almost impossible for the SPDC to have complete control over the
area," said a former Karen major who is a demolition expert. "There are
many armed factions and they can go wherever they want to and whenever they
wish to."

Last month, a Unocal official denied a Bangkok Post report that its firm
and Total had provided financial backing for Burmese military activities to
protect the Yadana pipeline and to suppress Burmese minorities near the
border.

"The story is baseless. There is no unusual activity in the pipeline area.
We are certainly not a party to financing anyone's military activity," the
official said.

However, sources inside Burma insist that financial aid to the Burmese
military from the oil firms is a fact.

It was alleged that last July, Total contributed five million kyat to the
army's fund for each of the 12 battalions guarding the pipeline and the
battalion commanders given 4-wheel drive vehicles and petrol. In addition,
a fund of 400 kyat a day for each porter was provided by the firm as
requested by IB 373 and 282 commanders. And at times Total's helicopters
and trucks are used to transport food and ammunition for the same two
battalions from Kanbauk to Nat I-Taung.

Padoe Thaw Thi, a spokesman for the KNU 4th Brigade Area said: "This
Bangkok Post report must be true because we have similar information."

In the meantime, plans are afoot between Burma and Thailand to promote
border trade and tourism in the area whereby a road would cut through
Kalai-aung village to take tourists to southern Burma's famous Maung-magan
Beach.

Total, it seems, is not very excited with the idea as it could jeopardise
the safety of the pipeline. People like U Pha Su, however, are hoping all
the troubles and unrest would soon go away so they can resume trading.

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