[burmanet2-l] Burma Related News - Sep 03, 2002.

["TIN KYI" <tinkyi@xxxxxxxxxxxxx>]

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BURMA RELATED NEWS - September  03, 2002.
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HEADLINES
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Reuters - Myanmar to Take Action Against Student Protesters
Asia Pulse - Bangladesh to Decide on Gas Exports to India Within a Month
Reuters - 14 dead as houses collapse in rain-soaked Thailand
AP - Myanmar kyat slips to record low against dollar
Xinhuanet - Natural gas contributes much to Myanmar's economy
Reuters - EU mission to urge Myanmar to start democracy talks
AFP - Myanmar junta shrugs off currency's decline, denies rice shortage
AFP - Myanmar says relations with Thailand improving after border row
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Myanmar to Take Action Against Student Protesters
Tue Sep 3, 4:40 AM ET
By Aung Hla Tun
BANGKOK (Reuters) - Myanmar's military government said on Tuesday it would
take legal action against two students arrested in last month for staging an
anti-government protest.
Thet Naung Soe and Khin Maung Win were detained after mounting a protest in
front of the city hall in the capital Yangon. Rights groups say Thet Naung
Soe unfurled the flag of Myanmar's underground student union, which shows a
fighting peacock, while Khin Maung Win handed out leaflets.
The two were among around 15 students arrested last month ahead of a visit
by Malaysian Prime Minister Mahathir Mohamad. The other students --
detained, rights groups say, for belonging to a literary discussion group --
have been released.
The fighting peacock flag is a potent symbol of student protest in Myanmar.
Students were at the forefront of pro-democracy protests in 1988 that were
bloodily put down by the military, earning international condemnation for
the junta.
Asked about the fate of the two students, Major-General Kyaw Win, deputy
chief of military intelligence, told a news conference on Tuesday: "Action
will be taken against the two students who remain in custody, in accordance
with the prevailing laws." He did not say which laws they had broken.
The arrests last month raised concerns among rights groups that the junta
was planning a new crackdown on opponents.
The government has freed hundreds of political prisoners over the last two
years, including more than 300 members of the National League for Democracy
(NLD) led by Nobel peace laureate Aung San Suu Kyi.
The releases began after the ruling generals started confidential talks with
Suu Kyi, which they said were aimed at eventually bringing democracy to
Myanmar, formerly called Burma.
Following strong international pressure, Suu Kyi was released from 19 months
of house arrest in May. But since then she has had no meetings with senior
members of the junta.
Sporadic talks held with the junta over the last two years have yet to move
beyond "confidence building," officials say. Suu Kyi has repeatedly called
for meaningful talks to begin as soon as possible.
The 57-year old Nobel peace laureate has also said the release of all
political prisoners is a precondition for political progress in Myanmar.
Suu Kyi's NLD was the overwhelming winner of an election held in 1990, but
the military refused to hand over power.
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Tuesday September 3, 2:06 PM
Bangladesh to Decide on Gas Exports to India Within a Month

DHAKA, Sept 3 Asia Pulse - Under pressure to export natural gas to India,
Bangladesh on Monday said it will decide on the issue within a month as
further delay would cause loss of market for the country.

Bangladesh's state minister for energy M Mosharraf Hossain said the
authorities have already initiated a dialogue among trade and commercial
bodies in the country over the issue that has become a matter of intense
political debate in the country.

He said delay in making a decision could mean that Bangladesh would lose
market for its gas.

Last week, 2 national committees recommended to the government that with the
present gas reserves, the nation should not export. The experts, however,
said limited exports could start as new discoveries are made.

Upon receiving the committees' recommendations, Khaleda Zia said she would
seek "national consensus" over the issue.

President of main opposition Awami League Sheikh Hasina has expressed
opposition to gas exports.

Mosharraf Hossain said he hoped that international oil companies will start
fresh exploration once a decision on exports is taken. He also said the
government is about to approve a private sector proposal for supply of gas
from Myanmar to India through Bangladesh.

Asian Development Bank last week asked Bangladesh government to decide early
on the issue of gas export to India saying the decision is necessary to
clear a US$250 million pipeline project.
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Tuesday September 3, 6:02 PM
14 dead as houses collapse in rain-soaked Thailand

BANGKOK (Reuters) - At least 14 people were killed and more than 20 were
missing after their makeshift houses on the banks of an overflowing stream
collapsed after heavy rain in northern Thailand, officials said on Tuesday.

Interior ministry and provincial officials said rescue workers found the 14
victims almost 24 hours after a bank of the stream in the northern Mae Hong
Son province collapsed in heavy monsoon rains on Monday.

They said the victims were Karen hilltribe refugees who had fled fighting in
neighbouring Myanmar.

Officials said the search for victims was hampered by problems in reaching
the remote refugee settlement, home to more than 13,000 people. Roads to the
area had been cut off by flood waters, they said.

Widespread monsoon rains have lashed most of Thailand in the past two weeks,
triggering heavy flooding in dozens of provinces.

The interior ministry said the latest incident raised the death toll from
the floods to 28.
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Myanmar kyat slips to record low against dollar
Tue Sep 3, 7:20 AM ET
YANGON, Myanmar (AP) - With the local kyat currency falling to a record low
against the U.S. dollar, Myanmar's military government on Tuesday denied
rumors that it plans to introduce a larger denomination bank note.
Speculation that the government will withdraw 200- and 500-kyat denomination
notes and introduce a new 5,000 kyat note is "not true," Col. San Pwint of
the Defense Ministry told a news conference.
The kyat has declined in value by more than 15 percent in recent days,
hitting a record low of 1,130 kyats to the U.S. dollar on the black market
Saturday, causing the prices of imported goods such as medicine and
construction materials to soar.
The kyat traded at 740 to the U.S. dollar in February, slipped to 950 in
early August and has been falling steadily since. The kyat exchange rate
improved slightly on Tuesday, reaching 1,090 to the dollar.
The kyat's official exchange rate has stayed at 6 to the dollar, but most
major business transactions and many consumer sales are based on the black
market exchange rate.
The black market is tolerated by the government as necessary to carry on
business, because the kyat is not convertible outside the country.
The government has provided no explanation for the kyat's recent decline,
saying only that exchange rate fluctuations are common in other countries.
"It is hard to give a clear explanation for such a depreciation," Labor and
Culture Minister Tin Win told reporters.
The government usually blames rumormongers and market manipulators for
currency instability. Authorities often react to sudden rises in the
exchange rate by warning black market dealers or in some cases arresting
them and giving them long jail sentences.
The present crop of ruling generals came to power after crushing a popular
uprising for civilian rule, triggered by demonetization of bank notes and
widespread hardship in 26 years of ruinous socialist military rule.
The government also denied rumors of a rice shortage in Yangon due to
flooding in recent weeks. The country's rice stores and paddy fields were
not affected by rising waters in rivers such as the Irrawaddy, it said.
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Natural gas contributes much to Myanmar's economy
Xinhuanet 2002-09-03 10:08:17

YANGON, Sept. 3 (Xinhuanet) -- Natural gas has contributed a lot to
Myanmar's economy with its high export value and extensive use in
electricity generation.

The export earning through gas accounted for about 200 million US dollars or
11 percent of the country's total export value annually in the past four
years, becoming a major dollar earner along with the nation's agricultural,
forestry and fishery export goods.

Myanmar produced 8,787.4 million cubic-meters of natural gas in the fiscal
year 2001-02 ending last March, of which 6,713.4 million cubic-meters or
76.3 percent were exported to earn hard currency, while the rest were stored
for domestic use including for electricity generation.

The electricity yielded by natural gas represents 54 percent ofthe total
produced in the country. In 2001-02, 3,072.69 million kilowatt-hours (kwh)
were generated by gas out of a total of 5,671.78 million kwh yielded by the
state's Myanma Electric Power Enterprise (MEPE).

So far seven new oil and gas fields have been found at the country's inland
blocks, while three discovered at its offshore areas.

According to official statistics, Myanmar has a proven recoverable onshore
natural gas reserve of 1.7 trillion cubic-feet(TCF) (48,110 million
cubic-meters) and offshore gas reserve of 14TCF (396,200 million
cubic-meters).

Meanwhile, foreign investment in Myanmar's oil and gas sector has reached
2.563 billion dollars since late 1988. These investments include those under
34 contracts in exploring oil and gas at 47 inland blocks and 15 joint
venture contracts with Myanmar in the same undertakings at 25 offshore
blocks at Mottama,Tanintharyi and Rakhine coastal areas.
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EU mission to urge Myanmar to start democracy talks
By Aung Hla Tun

YANGON, Sept 3 (Reuters) - A four-member European Union delegation will
visit Myanmar next week, officials said on Tuesday, in a trip aimed at
pressing the junta to free political prisoners and start talks with the
pro-democracy opposition.

``The EU troika delegation is scheduled to visit Myanmar from September 8 to
10,'' foreign ministry official U Thaung Tun told Reuters in Yangon.

Many EU foreign policy missions are undertaken by a so-called troika, a team
led by an official from the country currently holding the presidency of the
bloc. Diplomats said a Danish official would lead the EU team visiting
Myanmar.

The team is due to meet senior leaders of the military government and
members of the opposition National League for Democracy (NLD), including
Nobel peace laureate Aung San Suu Kyi.

``Their terms of reference include discussing the release of all political
prisoners, the chances of holding meaningful political talks between the
military and the NLD, and granting humanitarian assistance to Myanmar,''
said a European diplomat in Yangon.

The visit is the fourth by a EU delegation since 1999.

The previous visit, in March, shed little light on the country's murky
political machinations. Some senior members of the ruling junta said they
were too busy to meet the delegation, and members of the EU team were unable
to reveal any fresh insights into Myanmar's political future.

Since then, the one significant change has been Suu Kyi's release from 19
months of house arrest in May.

But the military government has held no talks with Suu Kyi since her release
from house arrest, and her demands for a substantive dialogue on the
country's political future have so far gone unanswered.

The military began confidential meetings with Suu Kyi in October 2000, but
the two sides have yet to begin substantive political discussions.

Last month, the United Nations special envoy to Myanmar, Razali Ismail, said
meaningful talks would begin soon. But since then, hopes of an imminent
breakthrough have faded.

Diplomats say the main reason the junta has eased its stance towards Suu Kyi
is the dismal state of the economy -- the ruling generals want to get
international sanctions lifted. But they say the junta hopes to avoid making
any further concessions to Suu Kyi and the NLD.

The EU maintains a range of sanctions on Myanmar, and has said it will not
ease sanctions unless there is political change.

The NLD won Myanmar's last elections, in 1990, by a landslide. But the
military refused to hand over power.
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Myanmar junta shrugs off currency's decline, denies rice shortage

YANGON, Sept 3 (AFP) - Myanmar's military junta Tuesday shrugged off the
currency's alarming slide to record lows of 1,150 to the dollar and denied
rumours that Yangon is facing a severe rice shortage.

"This is no big deal... many countries regularly face currency fluctuations
and Myanmar is no exception," said Labor Minister Tin Winn.

"It is difficult to assess the reasons even after studying all the factors
involved," he told reporters at a regular press conference.

After hovering around the 1,150 mark for the past few days, the kyat has now
strengthened slightly to 1,100 amid rumours that the government is planning
to intervene to prop up the currency, perhaps by flooding the market with
dollars.

Market observers said that if nothing was done to curb the losses, the kyat
could fall to 1,500 "any time now". They also noted that the government's
previous measures to protect the currency had only had a temporary impact.

Deputy military intelligence chief Major General Kyaw Win said at the same
briefing that he was unsure if any specific measures were to be taken on the
kyat, which spent most of last year at about 600-700 to the dollar.

"We are constantly trying to control the situation so that the kyat will not
deteriorate too much and that there will not be too much fluctuation," he
told reporters.

A range of factors are putting pressure on the currency, including the
closure of the Thai-Myanmar border since May, a new money-laundering law and
the military regime's efforts to put illegal currency traders out of
business.

Another junta spokeman, Colonel San Pwint San Pwint, also quashed widespread
rumours that the capital Yangon is facing a severe rice shortage because of
recent flooding in parts of the country.

"There has been no destruction of any rice-storage facilities anywhere in
the country because of the floods, and there is a regular flow of rice to
Yangon so no shortage is being experienced here," he told reporters.

San Pwint attributed the rumours to "speculators" attempting to "manipulate
prices".

Shops in Yangon have hiked the prices of basic commodities such as rice and
cooking oil in recent weeks but the junta is trying to ensure limited
amounts of the staples are available to poor citizens.

Long queues can be seen around Yangon as people wait for their turn to buy
small amounts of subsidised commodities at prices well below those on the
spiralling open market.

The Myanmar Times said late last month that the military-run country is
battling its worst floods in more than 30 years and that up to a million
acres (404,700 hectares) of land has been affected.

There have been reports of looting in far-flung states as supplies run low
despite government efforts to enforce rationing.
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Myanmar says relations with Thailand improving after border row

YANGON, Sept 3 (AFP) - Myanmar's ruling military junta said Tuesday that its
relations with historic adversary Thailand were on the mend, after a May
border clash sparked a diplomatic row between the neighbours.

"Bilateral relations will improve in the future, it will not do otherwise,"
deputy military intelligence chief Major General Kyaw Win told reporters
here ahead of key talks between the two sides set for Friday.

Foreign Minister Win Aung is due to travel to Thailand for the meeting aimed
at ending the rancor and divisiveness that have marked bilateral ties over
the past four months.

Kyaw Win said that the talks would also address the re-opening of the common
border, which has been sealed since Yangon slammed shut border crossings in
the wake of the row.

The spokesman admitted that bilateral ties have been at a "standstill"
lately, but that Yangon was now "quite positive" about the future of
relations with Thailand.

He also dismissed criticism of the junta by dissident groups and Thai
politicians as "insignificant".

Relations between the two countries spiralled on May 20 when border clashes
erupted between the Myanmar junta and ethnic Shan rebels, which Yangon
accuses Thailand of assisting.

The two countries exchanged official protest notes, and Myanmar barred
official visits and sealed all the border checkpoints, crippling bilateral
trade.

But after returning from a fence-mending trip to Yangon last month Surakiart
said relations had "normalized".

Lawmakers and human rights groups criticised a crackdown on Myanmar
activists in Thailand last month and said it was clearly part of the Thai
government's efforts to secure Myanmar's agreement on reopening the border.

Myanmar opposition leader Aung San Suu Kyi also protested the action,
telling the Chiang Mai-based magazine Irrawaddy that "it is not appropriate
to crack down on dissidents and pro-democracy supporters who do not break
the laws."

Meanwhile, a foreign ministry source confirmed that a European Union
delegation would arrive in Yangon on September 8, describing it as a
"routine visit" ahead of the United Nations General Assembly.

"The team is expected to be here for two days and will meet with top leaders
as well as high officials of the foreign ministry,' the source told AFP, but
declined to give specifics as their program "has not been finalised".
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