Wired News on February 28 & 29, 199

[FreeBurma@xxxxxxx]

Subject: Wired News on February 28 & 29, 1995

Attn: Burma Newsreaders
Re: Wired News on February 28 & 29, 1995
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Burma wrestles with gallsping inflation

      By Aung Hla Tun 

    RANGOON, Feb 29 (Reuter) - Rocketing prices of essentials such as rice
and cooking oil have sent inflation soaring in recent months, ringing alarm
bells in impoverished Burma. 

    So severe is the problem that the military government has taken action to
curb runaway prices, heading off the type of crisis that brought down the
previous socialist government in 1988, private analysts and government
sources told Reuters. 

    ``The uprising and demonstrations that took place in 1988 were mainly
because of the economic difficulties,'' Minister of Trade Lieutenant General
Tun Kyi said at a recent symposium. 

    For the first time, after 26 years of isolation and self-imposed exile
from the rest of the world, Burma is enjoying a heavy flow of foreign
investment, mainly in the services sector, under the leadership of the ruling
State Law and Order Restoration Committee (SLORC). 

    The growing foreign investment in the country, and strong economic growth
and certain economic reforms fathered by the SLORC have all fuelled
inflation, analysts and government sources said. 

    The Minister for National Planning and Economic Development, Brigadier
General David Abel, detailed Burma's hefty economic growth rates at a recent
top-level coordination committee meeting. 

    He said Burma's economy as measured by gross domestic product is set to
grow a provisional 9.8 percent in fiscal 1994-95 (April-March) compared with
7.5 percent in 1994-95 and 6.0 percent in 1993-94. 

    Lieutenant General Tun Kyi put foreign investment in Burma, mainly from
Singapore, Thailand, Japan and the United States, at end-December 1995 at a
total of over US$3.0 billion. 

    ``The issue of inflation is inevitable since more and more has to be
invested for national reconstruction, but the rate of inflation must not be
out of control,'' said General Than Shwe, prime minister and head of the
SLORC, at a meeting last week. 

    He called for all-out efforts to bring down production costs by stressing
frugality in spending funds. Commodity prices would stabilise and fall only
when production and distribution costs fell, the general said. 

    Most of the side-effects of inflation are felt in major cities, the
border region and the capital city of Rangoon where the official food price
index has jumped. 

    Official data show the Rangoon index rose to 853.61 (base 100 in 1986) up
to October 1995 from 691.90 in fiscal 1994-95 and 418.65 in 1992-93. 

    Some residents attribute the jump in inflation to increased government
taxes and utility rates. Others said domestic shortages of essentials may be
due to excessive exports of some items to earn much-needed foreign exchange. 

    Asked what he exported, a local exporter who declined to be identified
said ``sesamum, pulses, onions, furniture, leather and marine products - you
name it.'' These are consumer items much sought after by local residents. 

    Electricity and water charges have gone up and parking charges,
previously unheard of in downtown Rangoon, were imposed a few months ago at a
rate of 10 kyats per hour. 

    At the official rate, one U.S. dollar is worth 5.75 kyats while the
blackmarket rate is about 125 kyats to the dollar. Government-licensed
exchanges convert one U.S. dollar into foreign exchange certificates at the
rate of 123 kyats. 

    The price of a pyi (two kilos) of the most popular Emahta rice has now
risen to 60 kyats at retail stores from the officially-announced cost of
41.11 kyats in 1993-94 and 11.72 kyats in 1991. 

    A viss (1.63 kilos) of cooking oil (groundnut oil) costs 200 kyats in
shops now compared with official figures of 129.85 in 1993/94 and 66.51 kyats
in 1991. 

    Two rounds of salary increases for civil servants in 1989 and 1993, the
sale of subsidised commodities and free transport to work have all failed to
cushion the effect of inflation, some government employees said. 

    ``Each month, I get 16 pyis of rice at 15 kyats each, a viss of cooking
oil at 38 kyats and some candles and soap,'' said U Than Sein, a branch clerk
at a service enterprise. 

    ``I wish the government could raise our quota of subsidised goods to meet
our actual demand instead of raising our salaries again,'' he added. 

    ``I also moonlight every evening as a taxi driver and earn about 250
kyats daily. The most precious thing inflation has robbed us of is our
character,'' he said. 

    Struck hard by inflation, many experienced and educated employees of
various ranks have left their jobs for greener pastures abroad or in the
booming domestic private sector. 

    ``In the past in Myanmar we never thought of changing our jobs, let alone
our careers,'' said U Kyaw Maung, a university lecturer turned hotel
supervisor. ``Previously I got only 1,700 kyats per month but my salary is
about 45,000 kyat now, not counting free meals and other facilities.'' 

    ``I will not hesitate to change my career again if I get a better
offer,'' he added. 

    The SLORC set up a task force of high-ranking officials from various
departments to bring down soaring prices. The committee met merchants and
wholesalers dealing in key consumer goods, but little has been heard of this
panel in the official media. 

    ``Life is not as easy as it used to be. What most people are longing for
is not democracy, but only better earnings. It is high time they beat this
enemy (inflation),'' said a retired army officer. 

21:52 02-28-96

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At least 13 killed in Burmese rebel clash

      MAE SOT, Thailand, Feb 29 (Reuter) - At least 13 people were killed in
a clash between rival Karen guerrilla factions in southeastern Burma this
week, rebel and Thai military sources said on Thursday. 

    About 200 guerrillas from the anti-Rangoon Karen National Union (KNU)
recaptured a base from renegade Karen fighters in a dawn attack on Tuesday,
KNU sources said. 

    The KNU sources, speaking on the Thai-Burmese border, said they had found
eight bodies of guerrillas from the Democratic Karen Buddhist Army (DKBA)
when they over-ran the Ta Ok camp. 

    The KNU officials declined to reveal their own losses, but a Thai
security source, monitoring radio intercepts, said five KNU guerrillas were
believed killed in the three-hour battle. 

    Several civilians were also killed in cross-fire, the Thai military
source said. 

    The DKBA was set up by former KNU guerrillas who mutinied against their
leaders in late 1994 and formed an alliance with the Rangoon government. 

    The KNU, which has been fighting the central government for greater
autonomy since 1949, is currently involved in peace talks with Rangoon. 

    One of the KNU officials said this week's attack was aimed not at Rangoon
forces but only at the breakaway Karen faction. 

    ``We didn't fight against the Burmese army. We're only fighting the
traitors to recapture our bases,'' the KNU official, who declined to be
identified, told Reuters. 

23:21 02-28-96
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Natural gas found off Burma's Andaman Sea

    BANGKOK, Feb 28 (Reuter) - PTT Exploration and Production Plc <PTTE.BK>
said on Wednesday it had discovered natural gas off Burma in the Andaman Sea.


    The Thai company said the gas was found 10 km south of the Yadana field,
which PTT Exploration and a consortium are currently drilling.. 

    The well, M5 A1, was tested at 26 million cubic feet per day of gas. It
said further studies would be undertaken soon to confirm that the field is
economically viable. 

    The well was drilled by a joint venture between Total SA <TOTF.PA>,
Unocal Corp <UCL.N>, PTT Exploration and Production and Burmese
government-run Myanma Oil and Gas Enterprise. 

    -- Bangkok newsroom +662 252 9950   

07:04 02-28-96
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