Burma News Upadate No. 74

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Burma Project
Open Society Institute

Burma News Update No. 74
06 January 1999


JAPAN AID  DIVERTED
   Vehicles imported for civilian use under Japanese debt relief
programs are being improperly diverted to military use by Burma's army
junta, according to the December issue of Jane's Intelligence Review.
Burma is receiving weapons assistance from China, Israel and Singapore,
and is also using dual-use imports from the United States in a crash
program to develop an indigenous arms industry. The "Special Combat
Vehicle," a Nissan purchased with Japanese Government debt relief grant
credits and modified for crowd control and urban warfare, was first
publicly deployed during student protests in Rangoon in December 1996.
Jane's Intelligence Review says American exports to Burma of "explosives
and pyrotechnics" and ball bearings and other industrial goods are
probably being used in the regime's weapons industries.
Jane's Intelligence Review, December, 1998 


ECONOMIC PROSPECTS "GRIM"
   In an article assessing Burma's economic prospects, the Wall Street
Journal wrote: "Power cuts have reduced factory output, gasoline
rationing has been reintroduced, and the cost of living has soared.
Foreign-exchange reserves remain critically low, despite extreme
measures to conserve them. ... The government continues to control the
currency and to dominate the nonfarm economy, operating companies that
account for about 25% of gross domestic product. Despite tax and other
privileges, state-owned enterprises generally are inefficient and their
collective losses shave an estimated two percentage points off economic
growth. Only a few of the 69 state enterprises scheduled for
privatization in 1995 have changed hands, largely because private
capital is scarce and some ministers have maneuvered to retain control.
The government still contends economic output grew 6% last year and
should hit 6.5% this year, but the IMF reckons it expanded only 4% last
year and will slow to a 'grim' 2.5% in the medium term, unless there is
'a significant policy overhaul.'" [The Bangkok Post added on 30
December: "The plummeting Burmese economy has shaken the confidence of
Thai investors and they are packing their bags and leaving, or at least
freezing, projects in a country they once saw as Southeast Asia's new
business frontier."]
Rangoon, Wall Street Journal,  28 December


JUNTA INDEPENDENCE GREETINGS
   Excerpts from a message by the head of Burma's army junta, Senior
General Than Shwe, marking Burma's 51st anniversary of independence from
Britain: [T]he people of the country have strongly pledged to safeguard
the nation ... against destructive threats of negative-viewed
axe-handles [the usual regime reference to Daw Aung San Suu Kyi-Ed] in
the country and the neocolonialists accrued perpetrating hindrances and
obstructions to deviate from the right way in implementing the national
objectives. ... Today, we are seeing with our very own eyes numerous
pillars of success scored by the people as one in planning and
implementing for progress of the agriculture sector and boosting
production, progress in the transport and communications, preparations
for building a discipline-flourishing democracy...  reflecting
already-achieved State peace and stability and improved economy and
food, clothing and shelter situation of the people. We must also put on
record the role of organizational endeavours of the Union Solidarity and
Development Associations at different levels in the people's
participation....
New Light of Myanmar, online version, 04 January 


JUNTA RENEWS OFFENSIVE
   Troops of Burma's army junta clashed with guerrilla fighters of the
Karenni National Progressive Party (KNPP) near the Thai frontier in what
may be the start of a dry season offensive by the Rangoon junta against
four armed ethnic movements. Assaults against Karen, Shan and Wa groups
are also expected in the coming weeks. About 100,000 Karen refugees are
already in Thailand, and each new offensive drives thousands more people
from Burma.
Bangkok, Agence France Presse, 01 January


SUU KYI EXPULSION THREATS CONTINUE
   An official statement by Burma's military junta accused democracy
leader Daw Aung San Suu Kyi of "playing politics" by declaring that she
would fight any attempt to expel her from Burma. Numerous commentaries
in state-run media and speeches at regime-organized mass rallies in
recent months have demanded that Daw Suu Kyi, head of the National
League for Democracy, be deported. 
Bangkok, Associated Press, 28 December