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The BurmaNet News: AUGUST 8, 1995


THE NATION: PITFALLS FACING THE NATIONS RUSHING IN WITH AID
THE NATION: THE WINDS OF CHANGE
THE NATION: KHUN SA REPORTED TO BE PRODUCING AMPHETAMINES
BKK POST: SUU KYI UNDER FIRE FOR AID REMARKS
BKK POST: THAILAND TO REMAIN NEUTRAL OVER SUU KYI INVITE
BKK POST: WORLD WAR SET STAGE FOR BURMA'S FREEDOM- AND MORE WAR
BKK POST: ASEAN STEPS UP PACE OF TRANSFORMATION
BKK POST: S.KOREA MISSION
BKK POST: BURMA-BRUNEI LINK
BKK POST: SLORC MOVES ON KHUN SA
BKK POST: TALKS BID REJECTED
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===== item =====

PITFALLS FACING THE NATIONS RUSHING IN WITH AID
6 AUGUST 1995, The Nation

Don Pathan

When the Japanese stopped giving aid to Burma in 1988 in deference
to its Western allies' dicision to isolate the ruling State Law and
Order Restoration Council from the world community, rangoon's junta
knew they were in for tough times.

Slorc has since had its hands full containing the country's ethnic
minorities fighting for autonomy yet they have still managed to
strengthen their grip on power despite constant criticism from
foreign governments and condemnation from international human
rights groups for the arbitrary detention of Burmese opposition
leader Aung San Suu Kyi and other political activists.

On July 10, Slorc stunned the international community by releasing
Suu Kyi, who had been under house arrest for nearly six years. The
news was doubly surprising as Slorc intelligence chief Lt Gen Khin
Nyunt had slammed the West just a week before for hypocrisy and
double standard of human rights.

"The rights of 45 million people in the country are more important
than the rights of an individual," said the defiant general.
Whatever Slorc's reasons for releasing Suu Kyi, the ruling junta
must have been certain the action would serve their interests and
be worth the accompanying political instability.

Most analysts agree that Slorc must feel capable of handling any
challenges that may come with Suu Kyi's release. Some also
suggested that Burma may be making overtures to join the Assciation
of South East Asian Nations, which stuck its neck out for Burma
against the Western political community and human rights
organizations.

Other believe Japan worked behind the scenes for Suu Kyi's release.
Shortly after she was freed, Japan's foreign ministry released a
statement calling the event "an important step towards the
democratization of Burma".

A Rangoon based Western diplomat emphasized that Japan's business
community made no attempt to hide their disappointment with Tokyo's
decision to halt Burmese aid in 1988 with no economic sanctions
between the countries and Burma's political instability, most
Japanese businesses felt compelled to pull out of Burma.

Japanese investors were irked when other countries took advantage
of Japanese inactivity by cutting deals with Slorc to exploit the
country's vast natural wealth.

"Before 1988, there were no Koreans, Thais or Singaporeans
investing in Burma," said the foreign diplomat. "It was exclusively
Japan's turf." Indeed, a change in Japan's attitude was apparent in
March this year when Tokyo pledged Y 1 billion ($11.5 million) in
"humanitarian assistance" to Burma. Moreover, two months later a Y4
billion debt-relief grant was arranged despite the West's continued
negative response.

During a recent news conference after a meeting between Asean and
its dialogue partners, which include the US, Japan, South Korea,
Australia, New Zealand, Canada and the European Union, Japanese
Foreign Minister Yohei Kono said he was "encouraged" by the
increasing number of political prisoners being released in Burma.

He also noted that Suu Kyi's release was not due to pressure from
the international community. "We don't believe that the release of
Aung San Suu Kyi was brought about by the continued isolation of
Burma from the international community," he said.

Indonesian Foreign Minister Ali Alatas was quick to credit Suu
Kyi's release to Asean's constructive engagement policy. He was
echoed almost immediately by foreign ministers from Asean, who
steressed the efficacy of constructive engagement which has been
criticized by the international community as a thinly disguised
scheme to protect Asean's business interests with Slorc.

Constructive engagement calls for a constant, low-key dialogue with
Rangoon, continued investment and trade, and the non-imposition of
sanctions.

Such a policy, Aean argued, would eventually take Burma out of its
self-imposed isolation and bring its government in line with the
international norms of the world community.

But while Asena is quick to pat itself on the back, Suu Kyi
questioned the policy's effectiveness. She also asked foreign
governments to wait before rushing in with aid.

"The question is, for whom has [constructive engagement] been
constructive? Was it constructive for the forces of democracy? Was
it constructive for the Burmese people in general? Was it
constructive for limited business community? Or was it constructive
for Slorc" she asked. (TN)

===== item =====

THE WINDS OF CHANGE
6 AUGUST 1995, The Nation

Ancient traditions way for new, modern terns as Burma struggles to
find its feet in a fast paced, changing world. Don Pathan wondered,
however, what price the Burmese will have to pay for such changes.

Driving through the city of Rangoon, it is quite obvious that Burma
is no longer a country where time has stood still. Throughout the
city, remnants of the old blends quite well with the new.

The busy traffic in front of the two-thousand year old pagodas
creates an impression that Burma is on its way to modernity a long,
rough road from which there is no turning back. And in spite of the
fact that the people of Burma have a strong sense of history,
changes, like anywhere in the world, will always come with a price.

Throughout downtown Rangoon, numerous billboards of various seizes
advertize local and foreign goods. But unlike other major cities of
the developing world, American fast-food franchises are nowhere in
sight.

Hotels and shopping centres are being erected throughout the city
and many of these constructions are expected to be completed in the
next few months.

"The Slorc is looking twenty years ahead," said a Rangoon-based
foreign diplomat. "These hotels are not being built for the 1996
Visit Myanmar Year. They are being built now because the
construction cost is quite cheap at the moment," he added.

In the foreground of these constructions, the sight of some one
hundred people waiting in line in front of the post office nearly
one hour before it opens shows that Burma has long way to go with
its infrastructure.

Burma knows quite well what it has to do to be in line with the
trend of post-World War II era. Now, it is the question of
political will. It is quite clear that after two decade of self-
imposed isolation from the international community, Burma is trying
desperately to jump on to the market-oriented economy band wagon a
path that has brought a great deal of wealth to many of its
neighbouring countries.

But unlike many major cities in the region which went through
modernization and unbanization, homelessness, pan-han-dling,
violent crimes, prostitution and other social ills that accompany
the process are virtually non-existant in Rangoon.

Also, Rangoon's neightlife has been toned-down quite a bit in the
last two years. This, however, does not mean that the city or the4
country as a whole is without problems the memory of the brutal
military crackdown in 1988 is still fresh in the minds of many
Burmese and moreover, the lack of trust between the military junta
and the people will always be an obstacle to modernization and
national reconciliation.

Nevertheless, the people of Rangoon continue to trudge along with
the hope for a better tomorrow. Like anywhere else in the world,
life in rangoon goes on in spite of the great uncertainly.

Churches, mosques and temples are well-attended and many find
comfort from their faith as seen at the Shwedagon Pagoda where many
loals mediate, in spite of the fact that it's also a major tourist
spot.

Rangoon residents say Thailand's newly appointed Defence Minister
Gen Chavalit Yongchaiyudh had visited Sule Pagoda to make a special
wish to Bodawgyi, a diety enshrined there. The former army chief is
said to have prayed for his long-awaited dream of becoming
Thailand's prime minister. Local people said his wish wasn't
granted because his offerings to the deity were far too small. (TN)

====item====

SUU KYI UNDER FIRE FOR AID REMARKS

8 August 1995, Bangkok Post

THE New Light of Myanmar, a Burmese state -owned paper, has
criticised  dissident leader Aung San Suu Kyi for urging countries
not to rush to resume  economic aid to Burma. It did not mention
her by name in last week's article, but said the comment was a
hindrance to foreign aid. The article, written by U Phyoe, a former
Buddhist monk, accused Suu Kyi of being motivated by malice,
despite her usual rhetoric about forgiveness, unity and
cooperation. He also said she was jealous of Burma's achievements
and that its 45 million people were going to benefit 
directly from foreign aid. (BP)


====item====

THAILAND TO REMAIN NEUTRAL OVER SUU KYI INVITE

8 August 1995, Bangkok Post

THAILAND will officially remain neutral over a visit to Rangoon by
Democrat Masdit to invite Burmese dissident leader Aung San Suu Kyi
to give a keynote speech at the Non Governmental Forum on Women 95.

Khunying Supatra is a convener of the forum which will open in
Beijing on August 31, ahead of the fourth United Nations'
Conference on Women.

We neither support nor oppose (the visit), Foreign Minister M.R.
Kasem S.Kasemsri said yesterday.

He said the Thai Embassy in Rangoon would assist Khyuning Supatra's
visit as  much as it could. She left yesterday. 

Khyuying Supatra said earlier that her visit to Rangoon was on
Behalf of the UN and had nothing to do with politics.

Mrs Suu Kyi's speech will be telecast to the forum, because of her
decision not to leave Burma.

Last Thursday, M. R. Kasem gave approval for Thai Ambassador to
Rangoon Pokask Nilubol to visit Aung San Suu Kyi at her house,
saying  it was the right thing to do to express Thailand's anxiety
over the progress of democracy in Burma following her release from
house arrest. (BP)


====item====

WORLD WAR SET STAGE FOR BURMA'S FREEDOM- AND MORE WAR

8 August 1995, Bangkok Post

THE WELL-TENDED graves at the war cemetery in this small town are a
grim  reminder of the tumultuous period during World War II when
Burma went from British to Japanese and back to British hands all
the while searching for independence.

The cemetery, with its tombstones and columns engraved with the
names of 27,000 Allied soldiers who died in Burma during the war,
shows the obvious physical remnants of the war in Burma.

But to Burma, the war meant more than just being a battle ground
for two colonial powers.

It was also a pivotal period for the country's nascent independence
movement, which wanted to break from British colonial rulers who
had been in Burma since the 1800s. In addition, the war marked the
beginning of ethnic tensions in the nation which continue today.

In the early 1940s, Burmese nationalist leaders decided the best
way to gain independence would be to side with the Japanese against
the British and Allied troops, in exchange for help in gaining
freedom for Burma.

After making a deal with the Japanese to help them occupy Burma- a
strategic gateway to India- and close the Burmese Road into China
in exchange for future independence, a group of young men known as
the Thirty Comrades went abroad in 1941 for military training with
the Japanese.

The Thirty Comrades, led by nationalist leader Aung San, then
formed the Burma Independence Army (BIA) and accompanied the
Japanese into Burma, which they occupied in early 1942.

The march of the BIA into Burma alongside the Japanese troops was
an occasion of great pride and joy to the Burmese who felt that at
last their national honour had been vindicated, wrote Aung San's
daughter and opposition leader Aung San Suu Kyi in a biographical
article of her father.

Others agree, saying the Burmese hoped they could at last be freed
from British rule, with the help of the Japanese.

The Japanese gave us the spirit of independent, and not subject to
British rule, said Vum Ko Hau, now a 78 year old veteran who served
under the British and the Japanese during the war.

But Vun Ko Hau, who sat facing walls adorned with wartime portraits
and pictures, said the joy was shortlived.

The Japanese treated Burmese people in a bad way, he said,
recounting everal incidents where he had to watch Japanese troops
torture, maim or kill Burmese citizens and soldiers.

They slapped us and did things not practised by any other society.
The British were gone but we had new masters. New masters who were
even more cruel than the old ones, but this time the abuse was
physical, not verbal. The British didn't martyr you. But if the
Japanese suspected you of doing some thing wrong they'd kill you,
he said.

Torture, disappearances and forced labour conscription were also
common place under the Japanese, historians said.

On the Thai-Burma border, the Japanese forced Allied prisoners  and
slave labourers to build a 415 km railway through thick jungle-
covered mountains between the two countries.

Atrocious working conditions in the tropical climate, coupled with
a near starvation diet and brutal treatment, killed one in five
prisoners of war during the construction.

About 16,000 Allied soldiers and 100,000 enforced labourers died in
the 16 month construction of what became known as the Death
Railway.

Although the Japanese officially  declared Burma a sovereign nation
on August 1, 1943, Burmese nationalists quickly realised it was a
farce and the  Japanese planned to remain in control.

So the nationalists and various ethnic groups formed resistance
groups and contacted the British for arms and support. Eventually,
with the help of British and Allied troops they ran the Japanese
out of the country in mid 1945.

But they years of fighting took their toll.

Burma, once considered the rice basket of the region, was
devastated by the armies that had trampled across its soil for
three years. In addition, Burma's extensive oil production
facilities were destroyed.

The fighting also exacerbated traditional suspicions between the
ethnic minorities of the frontier areas and the majority Burmans
from the central plains.

Minorities such as the Karen, Kachin and Karenni sided with the
British and fought  alongside Allied commandoes parachuted in to
help infiltrate behind the Japanese lanes.

Fifty years on, those conflicts still trouble modern Burma. (BP)

====item====

ASEAN STEPS UP PACE OF TRANSFORMATION

8 August 1995, Bangkok Post 

THE annual round of Asean foreign ministers' meetings has become
such a complex event that it is sometimes difficult to sort out the
important bits from the detail. In some respects this year's
meetings appear bland, but on a handful of important issues, Asean
has taken significant steps towards further future change.

The most obvious achievement in his torical terms was the formal
admission of Vietnam as Asean's seventh member. In Brunei this
might not have appeared too exciting since all the preparations had
been concluded in advance. Nevertheless, the achievement was
historical. With so many past expectations ending in
disappointment, one important but intangible virtue remains- the
high level of comfort Asean's members enjoy in each others'
company. Now a former enemy is on the way hopefully to becoming a
good friend, and the Association of Southeast Asian Nations might
never be the same again.

A lot of questions remain to be settled about Vietnam's
participation in Asean, however. two issues dominate: whether
Vietnam will be able to attend all the many Asean meetings and if
not whether Asean can streamline its increasingly cumbersome
structure of committees, and challenge of the Asean Free Trade
Area, even if it is allowed a three year delay.

But the fact that doubts remain does not mean the issue will be
insoluble. A year ago, when Asean agreed to negotiate Vietnam's
membership it seemed questionable whether the necessary details
could be completed even by this year's summit in Bangkok in
December. So now, Asean and Vietnam have concluded the important
first step ahead of schedule.

Vietnam's membership has increased the tempo for Asean to expand.
The talk is now of Laos and Cambodia joiningly by 1997 when Asean
reaches its 30th birthday. Some analysts belive that so long as
Cambodia's internal conflict is settled, both could adjust to the
commitments of Asean more easily than Vietnam.

Free trade would be easier to achieve, for example, because the
state's economic machinery is less entrenched in Cambodia and Laos
than in Vietnam. Whether this means the two could adhere to Asean's
timetable for free trade by 2003 remains in doubt. They could be
granted  Vietnam's three year delay. 

Separate timetables for all new members would make administering
the free trade area quite complex.

Perhaps the biggest question about future expansion is Burma. The
feeling in Brunei last week seemed to be that Burma could join by
1997 too. But some senior Asean diplomats- not necessarily Thai-are
warning privately that Rangoon would have to convince its
neighbours that reform is genuinely and irreversibly under way.

Simply releasing Aung San Suu Kyi is not enough; the permanent
establishment of an elected assembly would be a prerequisite, one
diplomat says. But the first step of admitting Burma as an observer
might take place next year. In this context, the Thai ambassador in
Rangoon's decision to visit Aung San Suu Kyi, apparently in the
face of Slorc disapproval, was a good move. 

The humble security safety valve, the informal Asean Regional Forum
that met for the second time immediately after the foreign
ministers' annual conference, also made some modest progress,
mainly through franker airing of opinions.

France - so anxious to attend last years as one of the European
Union's troika of past, present and future six month presidents -
found itself this year confronted with regional disquiet about its
nuclear testing plans. And China remained "engaged" in the forum's
attempt to avoid conflict over the Spratlys. 

The testing has not been stopped, and war could still break out in
the South China Sea, so the forum's real worth has not yet been
proved.

Next on Asean's main fixtures list are the economic ministers
meeting in October and the Bangkok summit it December. The Sultan
of Brunei's proposal for free trade to be achieved in 2000 instead
of 2003 is likely to be discussed seriously. So are further
institutional reforms. Asean's new members and the increasing scope
of the subjects covered - services and intellectual property could
be next in line for Asean liberalisation for the secretariat and
for the various committees.

We will still have to wait some years to see if any of this has a
real impact on the economies or the security of the region. But for
the time being, the pace of Asean's transformation has quietly
stepped up a gear. (BP)

====item====

S.KOREA MISSION

8 August 1995, Bangkok Post

SOUTH Korea's Deputy Foreign Minister for Planning and Management,
Kim Hang-Kyung, begun a four-day visit to Burma to strengthen trade
and business ties between the two countries. Kim, who will be
acting as a special envoy of Foreign Minister Gong Ro-Myung, will
meet Gong's counterpart David Abel and Vice-premier Maung Maung
Khin. (BP)

====item====

BURMA-BRUNEI LINK

8 August 1995, Bangkok Post

BRUNEI and Burma have discussed the extension of commercial fights
between the two countries and the construction of an international
airport in Rangoon . Brunei Communications Minister Dato Seri Laila
Jasa Haji Awang Zakaria Sulaiman led a delegation to Rangoon from
August 2 for talks with BUrmese Transport Minister Air Chief
Marshall Thein Win and Post and Telecommunication Minister Soe Tha.
(BP)


===== item =====


SLORC MOVES ON KHUN SA
8 AUGUST 1995, Bangkok Post
Shan leaders increasingly see drug warlord as barrier to outside
support for independence cause Report: Subin Khuenkaew and Nussara
Sawatsawang, Chiang Rai

The State Law and Order Restoration Council has been massing troops
along the Thai-Burmese border from Mae Hong Son to Chiang Rai in
what is described as an all-out attempt to crush the forces of drug
warlord Khun Sa by the end of the year.

The first hint of a large-scale war against Khun Sa came from Lt-
Gen Khin Nyunt, Slorc's strongman, when he announced that the drug
baron's strongholds would be the next target after the defeat of
the Karen National Union early this year.

He said Burma's 200,000 troops would be mobilised to crush Khun
Sa's Mong Tai Army. Although Khin Nyunt had ex-aggerated the number
of troops to be put on the warpath, about 10,000 troops have been
committed for the operation.

Well-informed sources said at least 10 battalions or about 4,000
Burmese infantary have since June crossed the Salween River to face
the Karenni National Progressive Party's stronghold, opposite Ban
Nai Soi village in Muang district of Mae Hong Son.

The troops were sent there under the pretext of settling a logging
row with the KNPP. But one of Khun Sa's close aides told Inside
Indochina that Slorc troops intended to secure safe passage through
the KNPP's area to attack Ho Mong township, Khun Sa's headquarters.

About 90 per cent of the KNPP's territory has fallen to Slorc. On
another front at Doi Pa Daeng Luang, another Khun Sa stronghold,
only 30 kilometres south from Tachilek in Burma, another 4,000
Burmese soldiers have been engaged in a protracted battle with the
MTA since March. This is the second attempt to break Khun Sa's
defence after a humiliating defeat last November.

About 2,000 Burmese troops have also been massing at Ban Doi Lang,
opposite Mae Ai destrict, Chiang Mai, which is under the control of
the United Wa State Army (UWSA).

The UWSA, which is made up former members of the Burmese Communist
Party, surrendered to the junta in 1993 and has since been allowed
to remain in the BCP's territory to guard against the MTA. However,
there is no sign whether the UWSA will join the Slorc in the battle
against the MTA.

Observers said Slorc chose to launch an offensive now because it
felt Khun Sa's military power had been weakened and he also had
been plagued with internal rebellion.

Maj Karnyord, deputy commander of the 16th Brigade, recently broke
ranks from the MTA with 500 men to form his own independent army.
Karnyord, a young turk in the MTA, reportedly quit the army because
of "discrimination" in the ranks, the MTA's deviation from the
state's struggle for independence, and its infamous drug dealing
image.

Zao Gunjade, chairman of the Shan State National Congress (SSNC)
believed Karnyord's split was instigated by the Slorc which noted
the Shan resistance would not be able to get any outside help as
long as it associated with Khun Sa.

Analysts said Karnyord's defection was the result of the same trick
employed by the Slorc which led to the Democratic Kayin Buddhist
Organisation's breaking away from the KNU.

The defection of the Karen Buddhists, from the mostly Christian
Karens, caused the eventual fall of the KNU's Manerplaw and
Kawmoora strongholds this year.

"The DABO was supposed to inform the Slorc of all it knew about the
KNU, both its weak and strong points. Karnyord will likely do the
same about the MTA," they said.

The recent speculation that Khun Sa may soon be forced to step down
as head of the MTA indicates some serious internal problem. Several
leaders in the Shan State National Congress have begun to feel that
Khun Sa's notoriety as a drug warlord is an obstacle to their
tasks.

The SSNC is to hold a meeting to determine Khun Sa's fate. No dates
have been fixed but Gunjade,a much-respected congressman and a
veteran army leader who is tipped to succeed Khun Sa, told Inside
Indochina the meeting is due to be held before the end of October.

Military and political objectives aside, economic reasons have
played a role in prompting the Slorc to launch all-out war against
the MTA.

A border source said the rich natural resources in the Shan State,
as well as numerous heroin refineries under the control of the Wa
and Khun Sa, could bring in millions of dollars for cash strapped
Burma.

Apotential site for a 5,000 megawatt hydro dam on the Salween River
is in Khun Sa's territory, opposite Wiang Haeng sub-district,
Chiang Mai.

In Loi Kaw, the Karenni State's capital, a Thai company has
proposed an inland site for the Salween dam. A recent trip to the
site organised by the state-owned Myanmar Electric Power Enterprise
was cancelled owing to security problems, a delegation member said.

A Thai-Burmese border observer said Slorc had prepared its plans
well in advance. he said that in the past two years, the Slorc had
sent intelligence units into Thai-Burmese border provinces to learn
about the MTA's movements.

"They did a good job in identifying Khun Sa's safe houses," he
said. But Thai authorities had trouble taking action against the
occupants of the safe houses, who hold Thai identification cards.

The Burmese military junta has spent millions of kyats to build
roads and bridges over the Salween River toward Shan State. A Thai
logging company, Thai-Sawasdi, has been granted a contract to build
a road not far from the state's capital, Taunggyi, in exchange for
2,000 tons of logs.

Infrastructure in sensitive areas such as Keng Tung province and
nearby has been completed while that south of Shan State, from
Taunggyi to Mawkmai and Namsang-Mong Nai-Mawkmai to meet Ta-sobteng
bridge over the Salween River, is due to be completed this year.

"This means Burmese troops are getting closer to our Ho Mong
headquarters," an MTA officer conceded. Slorc's cabinet reshuffle
in mid-June saw Maj-Gen Tin Htut appointed commander of the Eastern
Command, replacing Maj-Gen Saw Tun, who was promoted to
Construction Minister.

Maj-Gen Tin Htut from the 33th Division was said to be under the
direct command of Gen Maung Aye, Slorc's vice-chairman and the
former eastern force commander.

A Thai observer predicted that Khun Sa's strongholds would fall by
the end of this year. According to Gen Zang Zhi Chen of the MTA,
Burmese troops recently received 5,000 mortar shells from a
neighbouring country, apparently China.

Observers doubted whether it was a coincidence that Chinese Defence
Minister Gen Chi Haotian paid an official visit to Rangoon early in
July. Khun Sa is having problems with logistical supplies. His
supply lines, including Ban Mai checkpoint, which was a major
passage for rice, medicine and clothes, have been cut since July
last year, affecting both the MTA and Shan people.

Ban Mai, the opposite site of the stronghold, 45 kilometres north
of Mae Hong Son province, was closed as a result of the Thai
Government's tightening of security. MTA sources also said the
Slorc tried to close another 30 checkpoints along border on its
side to prevent supplies crossing from Thailand.

Khun Sa's close aide said the MTA could remain strong until next
year and would be ready for any offensive. The SSNC sources said
they would conduct a political offensive to arouse nationalistic
sentiment among the Shan to fight for independence.

"The more they (Shan people) are oppressed, the faster they will
join us. The Slorc only builds roads and bridges, but we help our
people farm their land, repair their houses and give first aid.
This way, they inform us about the Slorc army's movements while
understanding better our goal in fighting for independence," one
member said. (BP)

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KHUN SA REPORTED TO BE PRODUCING AMPHETAMINES
8 AUGUST 1995, The Nation

Golden Triangle warlord Khun Sa his ethnic rival Wa forces, long
involved in the production of heroin, have gegun producing more-
profitable amphetamines, acquiring the raw chemicals from China,
acording to PM's Office Prasong Buranapong.

 Khun Sa has set up laborations in his Hmong headquarters located
opposite Thailand's Mae Hong Son proveince, while the United Wa
State Army is working from its base opposite Chaing Mai province.

Prasong cited information from the Office of Narcotics Control
Board (ONCB) indicating that the two Burma-based group' moving into
amphetamine production was the result of cheap production costs.

The minister said he had instructed the ONCB to cooperate with the
Police Department both the local police force and border patrol
police to prevent the trafficking of amphetamines from Burma into
Thailand.

Cracking down on amphetamines is not very effective because the
drug provides a high return, about 10 times more profitable than
heroin, he said.

In Thailand, amphetamines are produced mainly in the North,
Northeast and the Central regions. The drug is widely abused in Lop
Buri and Ratchaburi provinces and injected amphetamine use is
widespread in Sikhiu idstrict of Nakhon Ratchasima province,
Prasong said.

He said the drug, which used to be abused mainly by long-haul truck
drivers, is now becoming popular among students, factory workers
and fishermen. A new study shows that farmers and villagers who
used to regularly take "Thamjai" caffeine-aspirin pills, are also
turning to amphetamines.

Since the Ministry of Public Health banned caffeine in "Thamjai"
pills last year, farmers and villagers were switching to
amphetamine pill is usually divided into small pieces which are
then taken along with the "Thamjai" pills.

Prasong said the government is considering including money earned
from smuggling, illegal arms and petro-gasoline sales, as well as
trafficking in women into a money laundering bill, which was
initially drafted to allow the government to seize assets and
properties of narcotics traffickers.

The minister said the draft bill would go to Parliament either this
month or next and probably pass Parliament as the current
opposition parties had previously supported it when they were the
government.

He added that he believed all Mps would support the new draft bill
as none would want to support contraband smugglers. Prasong said
the government, however, had not yet reached a dicision as to the
minimum amount of cash a person would be required to explain when
making bank deposits. (TN)

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TALKS BID REJECTED
8 AUGUST 1995, Bangkok Post

The Karenni National Progressive Party has rejected the Burmese
junta's invitation to talks in Loi Kaw, the capital of the eastern
Kayah State, within 10 days or face military action.

The party issued a statement last week saying it could not talk
when the junta constantly attacked it. The Karenni signed a
ceasefire with Burma in March, ending 50 years of hostility, and
became the 13th such ethnic group to make peace with the junta.

But the pact broke down in June when the junta allegedly sent 2,000
troops across the Salween River into the party's designated area.
(BP)