The BurmaNet News: February 1, 2000

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=========== The BurmaNet News ===========
February 1, 2000
Issue # 1451
=========================================

Noted in passing: "The Myanmar government's fiscal condition is so 
severe that it has to run just to keep from going bankrupt."  

   Minoru Kiryu, a professor of economics at Osaka 
   Sangyo University (See JAPAN TIMES: MYANMAR 
   GOVERNMENT LOSING ALL FINANCIAL FOOTING)


=========
Headlines
=========

Inside Burma--

JAPAN TIMES: MYANMAR GOVERNMENT LOSING ALL FINANCIAL FOOTING

SIAM RAT (Thailand) SHAN STATE ARMY SEEKING CEASE-FIRE  

SHAN: FLOOD OF NORTHERN OPIUM CUTS PRICES DOWN

DVB: SPDC SAYS IT CAPTURED GOD'S ARMY BASE

AP: MYANMAR REBELS SHELTER GOD'S ARMY

AFP: MAN JAILED FOR LIFE AFTER MYANMAR HOSTAGE DRAMA

===

International--

VBSW: "DEEPLY SORRY FOR RATCHABURI HOSPITAL INCIDENT"

BANGKOK POST: TROOPS WERE TOLD TO USE DISCRETION

AFP: CHINA SENTENCES MYANMAR SAILOR TO DEATH FOR PIRACY

===

=========================================


*-*-*-*-*-*-*-*-*
 INSIDE BURMA
*-*-*-*-*-*-*-*-*

JAPAN TIMES: MYANMAR GOVERNMENT LOSING ALL FINANCIAL FOOTING

By HISANE MASAKI
Staff writer

Nearly half of the approximately 270 billion yen in Japan's outstanding 
official yen loans to Myanmar have gone sour.

As of March 31 last year, the final day of fiscal 1998, Japan's 
outstanding yen loans to developing countries totaled 9.8 trillion yen, 
of which 272.5 billion yen was being held by Myanmar, according to the 
Japan Bank for
International Cooperation.

Of the total outstanding yen loans to developing countries at that time, 
377.8 billion yen had been in arrears for six months or longer, 
according to the JBIC, a government-affiliated aid organ created in 
October through a merger of the Overseas Economic Cooperation Fund and 
the Export-Import Bank of Japan.

According to government sources and people familiar with the matter, the 
amount of arrears on Myanmar's huge official debts to Japan is 
continuing to rise sharply and has already exceeded the 130 billion yen 
level, compared with the 94 billion yen level four years ago.

This means that Myanmar is responsible for about one-third of the total 
amount of arrears on official debts owed to Japan by developing 
countries and that nearly half of the 272.5 billion yen in Japan's 
outstanding loans to Myanmar have gone bad.

For its part, the JBIC refuses to give the names of developing countries 
with overdue official loans, let alone a country-to-country breakdown.

"We have a long-held policy of not making public which country owes 
Japan overdue official debts and how much," a JBIC spokesman said. 
"That's partly because doing that might hurt the credit of countries 
with such debts and partly out of foreign-policy consideration."

Until fiscal 1998, Myanmar had continued to repay several billion yen or 
more in arrears to Japan each year. But no such repayment has been made 
during fiscal 1999, which ends on March 31, further adding to the 
Southeast Asian country's ballooning overdue official debts to Japan.

In accordance with a 1978 resolution by the United Nations Conference on 
Trade and Development, Japan has automatically provided the same amount 
of money Myanmar repays, in the form of grant-in-aid, after an interval 
of only one or two months. The UNCTAD resolution urges aid-donor 
countries to
forgive official debts owed them by the poorest of Third World 
countries.

The fact that Myanmar has stopped making repayments despite this 
arrangement indicates just how tight its financial bind is.

Minoru Kiryu, a professor of economics at Osaka Sangyo University and a 
leading expert on Myanmar affairs, said Myanmar's foreign currency 
reserves are extremely scant.

"The Myanmar government's fiscal condition is so severe that it has to 
run just to keep from going bankrupt."

Myanmar has been shunned by many sectors of the international community 
since 1988, when the military took power in a coup. The country's 
military junta, which now refers to itself as the State Peace and 
Development
Council, continues to refuse to accept the results of 1990 national 
elections in which Nobel Peace laureate Aung San Suu Kyi's National 
League for Democracy won a landslide victory.

The United States and other industrialized countries in Europe have 
toughened economic and other sanctions against Myanmar in recent years 
in protest at the military regime's violations of human rights and 
democratic principles, including the continued crackdown on the 
prodemocracy movement led by Suu Kyi.

Since the 1988 coup in Myanmar, or Burma as the country was once called, 
Japan has also frozen fresh yen loans and grant-in-aid, except those for 
humanitarian purposes and debt-relief under the UNCTAD resolution.

In addition to the economic sanctions, the Asian economic crisis that 
erupted in Thailand in the summer of 1997 and spread through much of the 
region dealt a serious blow to Myanmar's economy, which saw a sharp 
decline in foreign investment, especially from its fellow ASEAN members. 
The
Association of Southeast Asian Nations admitted Myanmar immediately 
before the Asian economic crisis occurred.


*-*-*-*-*-*-*-*-*

SIAM RAT (Thailand) SHAN STATE ARMY SEEKING CEASE-FIRE  
 
In Thai 29 Jan 00 p4.  Translation by BBC Summary of World Broadcasts
 
Excerpts from report by Thai newspaper 'Siam Rat' on 29th 
January  
 
The Shan State Army [SSA] under leadership of Col Yotsuk 
reportedly issued a statement on 25th January noting that it  was facing 
many problems and wanted to discontinue the armed  struggle against the 
Burmese military government.  
 
According to the statement, peace and tranquillity are the 
ambition of everyone in the world community, not just in 
Burma and the Shan State. The Shan people were living in 
fear of being killed or tortured. They have had to move 
around as if they were homeless and suffered from hunger. 
Their homes have been destroyed by the policy of the Burmese military 
administration to eliminate ethnic minorities...  
 
A Thai intelligence official said the SSA was ready to enter into a 
cease-fire agreement with the Burmese government because it faced 
various kinds of pressure and its anti-narcotics policy resulted in it 
being ostracized by other ethnic minority groups. The SSA also suffered 
from shortage of fund and ammunition to fight against the Burmese 
government. Many SSA soldiers defected to the government due to hunger 
and loss of confidence in their struggle. The SSA have been avoiding 
clashes with government soldiers. The source said if the Burmese 
government rejected the cease-fire overture of the SSA, the SSA could 
switch to narcotics trafficking for its own survival. This would 
compound the narcotics problem in Shan State and generate more drug 
dilemma for Thailand. 


*-*-*-*-*-*-*-*-*

SHAN: FLOOD OF NORTHERN OPIUM CUTS PRICES DOWN
Shan Herald Agency for News

30 January 2000

No: 1 - 29



Maihoong reported from southern Shan State this morning that the price 
of raw opium along the border had gone down during the last week due to 
the oversupply coming from the north.

Maihoong said, "It was B.24,000 per viss (1.6 kilogram) towards the end 
of December. It then went up as high as B.26,000. But during the last 
week, the drug markets in Hoyawd (Monghsat Township) and Nakawngmu 
(Mongton 
township) were flooded by opium from Wa areas and even Monghsu in the 
north. As a result, the price has plunged down to B.21,000."

"Even so, there are still many traders from the north who were waiting, 
some for delayed payment, and others in expectation of price upsurge," 
he added.

A girl, who makes a living by selling vermicelli, told Maihoong, "These 
people love to spend. I have already made K. 150,000 during the last two 
weeks, a sum I have never dreamt of having by selling Khaosen 
(vermicelli)."

"Hoyawd is under Wa control and Nakawngmu is under Lahu militia control, 
and both with the consent of the Burmese military", concluded Maihoong.



*-*-*-*-*-*-*-*-*

DVB: SPDC SAYS IT CAPTURED GOD'S ARMY BASE

[In Burmese, translated by the Foreign Broadcast Information Service 
(FBIS)] 

The SPDC [State Peace and Development Council] has captured the major 
sites of the God's Army's base in Kamerplaw at 1000 today following 
fierce clashes lasting for over 3 hours from 0600 and 0900 this morning. 
It has been learned that the God's Army members have retreated from the 
main site of the base where the church and 40 huts are located. Due to 
the systematic retreat, the SPDC Army was not able to seize any men, 
weapons or important military equipment.

According to border sources, the troops from Nos. 539, 380, and 375 
Light Infantry Battalions [LIB] were able to seize the Kamerplaw Church 
after holding a three-day siege and suffering heavy casualties and 
losses.

However, there have been reports of renewed clashed between the SPDC and 
God's Army troops at about 1500 today near Kamerplaw and the situation 
remains confused. DVB [Democratic Voice of Burma] interviewed Padoh Kueh 
Htoo, district chairman from KNU [Karen National Union] 4th Brigade area 
where God's Army is located. 

[Begin recording] [Padoh Kueh Htoo] We have heard about this
[capture of God's Army base]. I think they are cornered up to 1400 
today. However, they may have retaken the upper part of Kamerplaw field.

[Unidentified DVB announcer] Can you say with certainty?
[Padoh Kueh Htoo] It is difficult to say as we do not know for sure. 
They remain in the field at the moment. It is very
difficult for us to describe the situation. 

[DVB] What is the latest news that you have heard?
[Padoh Kueh Htoo] As of about 1100 and noon the clashes were
continuing. However, the clashes were taking place outside the Kamerplaw 
field, about 1 kilometer outside.

[DVB] So the clashes are continuing?
[Padoh Kueh Htoo] Yes. I cannot really confirm because the
people who have fled are still at the border and they have not crossed 
over to this side. The people have not yet crossed over and I cannot 
describe the situation with certainty. There are people still inside the 
field. However, they are no longer at the church where their office is 
located.

[DVB] Yes.
[Padoh Kueh Htoo] The clashes  continuing outside [the
field]. [end recording] 

According to the latest news that has just come in, the clashes between 
the SPDC and God's Army troops are continuing 2 kilometers north of 
Kamerplaw headquarters.

[Description of Source: Democratic Voice of
Burma--anti-government radio run by the National Coalition
Government of the Union of Burma]


*-*-*-*-*-*-*-*-*

AP: MYANMAR REBELS SHELTER GOD'S ARMY
Mon 31 Jan 2000

WALAY KHEE, Myanmar (AP) - Myanmar's main ethnic rebel group said Monday 
it would shelter members of a beleaguered guerrilla gang led by twin 
12-year-old boys, but only if they accept the larger group's leadership.

God's Army, led by Johnny and Luther Htoo, was blamed for the armed 
takeover of a hospital in Thailand last week and was engaged in heavy 
fighting with the Myanmar military on Monday.

David Tharckabaw of the Karen National Union said the group was 
preparing to contact God's Army with an offer to take them in, but 
``only if they agree to follow our leadership and promise not to do any 
more foolish acts.''

A senior leader in the Karen National Union, Bo Mya, said the group 
believes God's Army was manipulated into the hospital raid by another 
group, the Vigorous Burmese Student Warriors, who could have been 
provocateurs sent by the Myanmar government.

Five of the student warriors briefly took over the Myanmar Embassy in 
Thailand last October, and at least one of its members took part in the 
hospital takeover in Ratchaburi in western Thailand. The hospital siege 
ended when all 10 Myanmar raiders were shot dead by Thai security 
forces.

Bo Mya and other KNU officials spoke at a celebration of Karen 
Revolution Day, held at a base not far from the border with Thailand. 
About 300 people shared a communal breakfast of rice and potato-chicken 
curry and listened to songs and speeches.

The Karen National Union, whose fighting force has dropped in recent 
years to an estimated 3,000 to 4,000 troops, has been seeking autonomy 
from the government of Myanmar, also known as Burma, since the country 
gained independence from Britain in 1948.

God's Army, which has at most 200 people, is only loosely associated 
with the KNU but the hospital takeover caused outrage in Thailand and a 
backlash against the Karen cause.

The Karen National Union relies on Bangkok's goodwill to operate, since 
most of its supply lines run through Thailand, which is also the only 
safe refuge for its civilian followers.

``There will be a systematic approach to neighboring countries for 
understanding and sympathy,'' Bo Mya said in apparent reference to 
strained relations with Thailand.

Tharckabaw said the KNU had information about fighting around the God's 
Army base and that the Htoo twins - whom their followers believe have 
magical powers of victory - were still alive.

``We are concerned about their safety and well-being,'' he said. ``We 
don't want to see them killed.''

Thai television reported Monday that five Thai troops were seriously 
injured by a land mine they triggered while patrolling near the border 
with Myanmar, where fighting has been raging between government forces 
and God's Army.

Myanmar troops were getting close to the frontier in pursuit of God's 
Army and Karen National Union troops, ITV television said. It was 
unclear who planted the mine.



*-*-*-*-*-*-*-*-*

AFP: MAN JAILED FOR LIFE AFTER MYANMAR HOSTAGE DRAMA

YANGON, Feb 1 (AFP) - A Yangon timber trader has been jailed for life 
for shooting a woman and holding her 10-year-old daughter hostage in a 
dramatic siege triggered by an unpaid debt, legal sources said Tuesday.

The man, identified as Archun, led a three-man armed gang and took the 
girl, Ma Thiri Kay, hostage and demanded a large sum of money alelgedly 
owed by her father, Kyaw Myint, be paid as a ransom.

The girl's mother, San San Win, was shot in the stomach and is believed 
to have died after an ill-fated attempt to rescue her daughter during 
the hold-up last month.

Hundreds of onlookers were drawn to a three-hour siege which included 
exchanges of fire between the hostage-takers and police, the officials 
said.

The drama ended when police used tear gas to force the men out of an 
apartment where they were holed up. The girl was released unharmed. 
Archun, from the Lahu ethnic group, was sentenced to life in jail but 
the fate of his two accomplices has yet to be announced.

Observers said the incident highlighted the growing criminal culture in 
Yangon surrounding ethnic fighters who have made peace with the central 
government.

"Anyone running foul of them is like likely to risk the same kind of 
treatment," said a businessman. Many former armed groups, including 
those led by former drugs lords Khun Sa 
and Lo Hsing Han, now run large bona-fide businesses in construction, 
transport, banking and timber.

Elements of the Lahu minority, based mainly in northern Shan State, have 
made peace with the government as part of a series of ceasefires reached 
to end decades of insurgencies.


*-*-*-*-*-*-*-*-*

*-*-*-*-*-*-*-*-*
 INTERNATIONAL
*-*-*-*-*-*-*-*-*



VBSW: "DEEPLY SORRY FOR RATCHABURI HOSPITAL INCIDENT"

PRESS RELEASE OF VIGOROUS BURMESE STUDENT WARRIORS
     
         Date. 31 Jan 00
     Ref  . 08 

We [are] deeply sorry for Ratchaburi Hospital incident and cold blooded 
killings of restraint and civilized 10 gunmen from God's Army by Thai 
Government.

We seriously concerned and discussed about latest developments that lead 
to  tragic end, also we contest the tricky handling of Thai  Government. 
We urge to stop bombarding in border area with heavy artillery  from the 
rear to assist the oppressive military regime of Burma.
 
The responsibility of all consequence lie on Burmese military junta, 
which works very hard to cleanse the pro-democracy groups and ethnic 
minorities forces from liberated area. It is the state terrorism of 
military junta  which is root of all people's sufferings and current 
incident.

To Thai government, we VBSW have involved in the democracy movement 
since 1988 in Burma and Thai Burma border. We absolutely understand 
relationship between Thai authorities and Burmese student activists who 
have been in Thai- Burma border.

Even though we have had too many difficulties such as lack of food, 
financial assistance shelter, we do not have plan to disturb the 
stability of Thailand. Thai government also must be realize the process 
of Burmese democracy movement.

We demand to Thai Government;

allow to stay refugees flee from KAMAPLAW

give medical assistance to those refugees

We Vigorous Burmese Student Warriors, vow to fight for democracy and  
Human-rights to vanish  military dictatorship in Burma, by all means. 
There is no way to deviate from our aim even facing any difficulties and 
disturbances.


Vigorous Burmese Student Warriors

*-*-*-*-*-*-*-*-*
BANGKOK POST: TROOPS WERE TOLD TO USE DISCRETION
'No orders given for them to shoot to kill'

February 1, 2000


Wassana Nanuam


The special forces units who ended the Ratchaburi crisis were told to 
use their discretion and did not have orders to shoot to kill, the army 
spokesman said yesterday.

Gen Surayud Chulanont, who directed the operation in which 10 God's Army 
rebels were killed, told unit commanders their men had freedom to act, 
said Col Somkuan Saengpattaranet.

The army chief was quoted as saying: "We had to give the special forces 
freedom to act because they were risking their lives. If we had allowed 
the situation to continue, the guerrillas might have done something. 
They had M16 rifles, M79 grenades. We didn't know if there were hidden 
explosives. What if they detonated the bombs."

Gen Surayud said the rebels were shot in the head because the special 
forces men used laser sights to ensure accuracy.

He was quoted as saying the guerrillas' morale had been boosted after 
they escaped the Oct 1-2 raid on the Burmese embassy and had been 
pushing their luck since.

According to the spokesman, Gen Surayud felt the special force's move 
was justified considering recent attacks by the rebels on Thai soil 
including the embassy siege.

God's Army, he said, had also planted booby traps which killed four Thai 
soldiers and a civilian.

"We agreed to two original conditions but they later laid down five 
conditions which we found unacceptable-especially the demand to punish 
the gunners who shelled their base," he said.

Gen Surayud also said the media were obstacles in carrying out the 
mission and delayed the attack deadline from 2am to 5.30am.

Unit chiefs have been ordered to clarify what happened at Ratchaburi 
regional hospital to people they know. "If the hostages were harmed or 
killed, we would have taken the blame," he said. "Fortunately the 
situation ended in our favour," adding the army would clarify its action 
through its radio programmes.

*-*-*-*-*-*-*-*-*

AFP: CHINA SENTENCES MYANMAR SAILOR TO DEATH FOR PIRACY

2000-02-01 

	   BEIJING, Feb 1 (AFP) - A member of a Myanmar pirate gang which 
hijacked a cargo vessel in the Andaman Sea was sentenced to death by a 
Chinese court and two other pirates were jailed for life, state media 
said Tuesday.

	   They were part of a 14-strong Myanmar gang found guilty Monday of 
using guns and knives in March last year to overpower the crew of a 
Panama-registered Taiwanese ship transporting cargo from China's 
southern Suzhou province.

	   The gang forced the 21 crew members of the "Marien Master" into life 
rafts after seizing the vessel in the Andaman Sea en route to India, the 
Procuratoaril Daily reported.

	   They then returned to China where they sold 5.8 million yuan (0.7 
million dollars) of its cargo of soda ash in the southern Guangdong 
provncial city of Shantou.

	   Police seized the gang when they stopped in Fangchenggang city in 
southern Gangxi province where they berthed after a breakdown of the 
stolen ship forced them to turn back from their destination in Thailand.

	   The Fangchengang intermediate people's court sentenced the remaining 
11 pirates to prison sentences ranging from five to 13 years.

	   All appealed their sentences.

	   China last Friday executed 13 pirates convicted last year of 
massacring 23 sailors in the country's worst ship hijacking in 50 years.

	  The executed men were among 38 pirates convicted of hijaking the Hong 
Kong-owned "Changsheng" cargo ship on November 16, 1998. The ship's crew 
was murdered and their bodies dumped into the sea.


===END=============END=============END===


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