Bkk Post-Thai firms get extension o

[tinkyi@xxxxxxxxxxxxx]

Subject: Bkk Post-Thai firms get extension of contracts

Bangkok Post Jone 6, 1999.
Thai firms get extension of contracts
Rumours of timber smuggling in South

Cheewin Sattha Ekarat Mukem

Rangoon authorities have extended the contracts of four Thai timber
companies importing logs from Burma, a source said.

The contracts with Myanmar Timber Enterprise expired on March 30 this year
and the firms-Phon Phana, SA Pharmaceutical, B&F Goodrich and Songkhoh Sahai
Ruam Rop Kaolee-had applied for extensions. Representatives had met
separately with the Burmese forestry minister in Rangoon.

The source said some contracts were extended for three months and others for
six months, but did not give details.

The companies' representatives would soon return in the company of a Burmese
deputy minister for forestry, who would officially inform Thai authorities
of the extensions, the source said.

Mae Hong Son Governor Samroeng Punyopakorn said he had been informed that
only two companies-Phon Phana and SA Pharmaceutical-had been granted
extensions.

Mr Samroeng said he did not believe the importation of Burmese logs this
time would result in Thai logs being felled illegally and falsely
documented, as happened in the Salween forest park previously, if all
agencies cooperated to ensure transparency.

He rejected news reports that a politician had demanded kickbacks in return
for allowing the import of logs.

He had heard claims that a high level forestry official of Mae Hong Son had
made demands, but there was no evidence to support the allegation.

Earlier, the Customs Department denied allowing four Thai logging companies
permission to import Burmese timber through a border checkpoint in Mae Hong
Son which reopened recently.

Critics were concerned that reopening the Mae Sariang checkpoint to permit
the import of 1.2 million cubic metres of Burmese logs by the four firms
would encourage continued illegal logging in the Salween.

Not all logs imported from Burma are believed to be Burmese. Some are
suspected of being felled in Thai reserve forests bordering Burma.

Customs Department chief Somjainuek Engtrakul said the department had never
granted permission to any firm to import logs from Burma. It only had the
authority to acknowlege and process imports.


The Foreign Affairs Ministry had issued an official document allowing the
four companies to import timber under their contracts with Burma, he said.

All log imports required consultation with the Forestry Department in line
with the May 14, 1998, resolution of the National Security Council's border
subcommittee, which forbids log imports through conserved forests, national
parks and wildlife sanctuaries, Mr Somjainuek said.

Deputy Finance Minister Pichet Phanvichartkul said the border panel had
allowed the firms to import logs from Burma on condition the timber haulage
did not damage the environment or disturb wildlife in the area.

In Ranong, it was speculated illegal logs might be smuggled from Burma into
the southern province as a result of the granting of a concession to a Thai
company to build a 183km strategic road in Burma, from Hill 491 near the
border to Kawthaung, or Victoria Point, opposite Ranong.

The company, Andaman Club, had begun construction of the asphalt road in
November last year. The road had been partly completed, mainly between
Kawthaung and Ban Nam Yen.

A source said since Burma had a cash problem it had allowed the Thai
contractor to harvest about 12,000 trees along the route in lieu of payment.

Some of the logs had been smuggled into Thailand to be processed.

This was denied by Uphai Wayuphat, chief of Surat Thani Forestry Zone,
covering Surat Thani, Chumphon and Ranong. No Burmese logs had been brought
into the area, he said.

No private companies had asked permission to import logs and the government
had no policy to import logs from Burma.