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Burma Related News - Feb 28-Mar02, 2003.




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BURMA RELATED NEWS - February 28 - March 02, 2003.

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HEADLINES

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AFP - Afghanistan topples Myanmar as top heroin producer: US

AFP - UN envoy urges world to recognise change in Myanmar

AFP - US classes fight against illegal drugs as part of war on terror

AP - Bangladeshi prime minister to visit Myanmar to bolster ties

AP - Myanmar leader warns of destructive forces trying to undermine government efforts

AP - Asian economic summit to look for ways to build economic momentum

Reuters - Myanmar seeks U.S. help in battle on drugs

Asian Tribune - Appalling working conditions of the Burmese workers in Malaysia exposed

Asian Tribune - Myanmar FM arrives tomorrow

Asian Tribune - International Community should suspend all aid and assistance to Burma forthwith.

Asian Tribune - Secretary 1, reassures public that private banks in Myanmar are safe

ABC online - Thai PM tries to start Burmese peace process

CT - Searching for the truth in Myanmar

Bkk Post - Army told to give rebels a hard time
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Sunday March 2, 11:53 AM
Afghanistan topples Myanmar as top heroin producer: US
 
WASHINGTON, March 1 (AFP) - Afghanistan has toppled Myanmar as the world's top source of illicit opium, but the southeast Asian state is streaking ahead as the region's number one producer of amphetamines, the United States said.
 
In a major drugs strategy report, Washington backed up figures released by the United Nations last week showing an increase in poppy cultivation since the ouster of Afghanistan's former Taliban rulers.
 
It also said it was profoundly troubled by unproven allegations that North Korea is trafficking in narcotics as a source of desperately-needed foreign currency.
 
"The size of the opium harvest in 2002 makes Afghanistan the world's leading opium producer, the report said.
 
"Trafficking of Afghan opium and heroin refined in numerous laboratories inside Afghanistan creates serious problems for Afghanistan and its neighbors."
 
The International Narcotics Control Strategy Report, collated by the State Department said that opium cultivation in the country last year reached 30,750 hectares.
 
The figure rose from a low of 1,685 hectares in 2001 after the fundamentalist Taliban, later ousted by a US-led war banned opium production.
 
The report credited US-backed President Hamid Karzai, who was in Washington this week, with taking a number of important early steps in a British-sponsored effort to cut drugs production.
 
The drive has been complicated by political upheval and uncertain security conditions.
 
Although the report found that Myanmar was still a major source of opium, it concluded that production had declined for the sixth straight year to 630 metric tonnes in 2002 down 26 percent from a year earlier.
 
It called on the military regime in Yangon, which earns frequent criticism here for its human rights record, to carry on the fight against narcotics -- which it said had yielded "measurable results."
 
But the report found Myanmar delinquent in cracking down on bans on opium production in areas controlled by ethnic Wa groups.
 
It branded the country as Asia's top source of amphetamine-type products, and said it had not taken "significant steps" to stop the trafficking of the tablets.
 
President George W. Bush in January accused Myanmar of failing to adequately battle drugs production, in a body blow to Yangon's bid to shed its reputation as "narco-state."
 
The decision featured in the president's annual report to Congress listing countries which fail to meet US standards for combating the drugs trade, and which are therefore liable for US sanctions.
 
Saturday's report is billed as the factual basis for those assessments which saw Bush designate 23 countries as major drugs producers.
 
With Washington locked in a standoff with North Korea over its nuclear weapons program, the drugs report raised serious questions about Pyongyang's complicity in the global narcotics trade.
 
"Allegations of North Korean state complicity in the illicit narcotics trade and in other criminal enterprises remain profoundly troubling," the report said, but admitted the United States could find no concrete evidence that abuses were taking place.
 
Elsewhere, the report surveyed efforts by other Asian countries, many on the roots of drugs traffickers or in traditional narcotics growing areas.
 
Pakistan was praised for "excellent" cooperation with US anti-drugs efforts, Cambodia's conduct was seen as "spotty and ineffective" and China won kudos for "strong measures" against the narcotics trade.
 
Laos meanwhile was chided as the world's third-largest source of illicit opium and the Philippines was said to be facing a "pivotal" year in the war on drugs.
 
Thailand's drive against corruption among public officials was seen as a boon for the anti-drug war, and it won new US praise for "one of the most successful drug crop control programs in the world."
 
But there was no detailed analysis into the Thai government's controversial drugs crackdown, which has left more than 1,120 people allegedly linked to the drugs trade dead.

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Sunday March 2, 02:36 AM

UN envoy urges world to recognise change in Myanmar
 
YANGON, March 2 (AFP) - A UN envoy has urged the international community to drop its high expectations for transition in Myanmar and recognise the incremental changes taking place, the Myanmar Times said in its edition to be published Monday.
 
The United Nations special human rights rapporteur on Myanmar, Paulo Sergio Pinheiro, also reiterated his call for countries to engage and not isolate military-ruled Myanmar, the semi-official weekly said.
 
"It is time to take stock of, acknowledge and evaluate the ongoing effects of incremental change which have taken place," the Brazilian academic wrote in a report to be presented to a meeting of the UN Human Rights Commission in Geneva starting this month.
 
"It is high time to replace the high expectations of the ideal game scenario and the writing of constitutional models, with a down-to-earth discussion of less prescriptive requirements which will be able to stimulate a real process of change," he wrote.
He stressed that "the policy option now should be engagement, not isolation."
 
"The sooner the international community is ready to assist, the better and smoother the change will be in Myanmar," Pinheiro said in the report.
 
"The people of the country should not be held hostage to a political transition."
 
He said the United Nations would compile a report on the basic needs of the population of impoverished Myanmar, formerly called Burma, and urge the international community to consider being actively involved.
 
Western governments have led the push for Myanmar to be subject to sanctions until its military rulers makes concessions to the democratic opposition led by Aung San Suu Kyi.
 
They have said they would not consider comprehensive aid for the country, which is battling malnutrition, poor education and a burgeoning AIDS crisis, until the regime commits to a full political dialogue with Aung San Suu Kyi.
 
The United States threatened last month it would consider further sanctions against the country in light of a lack of political reform.
 
Aung San Suu Kyi said last month that international pressure should be maintained to force progress in Myanmar, according to Jody Williams, a fellow Nobel peace laureate who visited her.
 
Williams said Aung San Suu Kyi was "very clear that pressure both inside and outside the country are critical to bringing about democracy in Burma."

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Saturday March 1, 14:26 PM

US classes fight against illegal drugs as part of war on terror
 
WASHINGTON, March 1 (AFP) - The fight against illegal drug trafficking is part of US efforts to defeat international terrorism, according to the US State Department.
 
"The US campaign against global terrorism in 2002 highlighted the importance of our international drug control programs," the department said in its annual International Narcotics Control Strategy report, released Saturday.
 
"As the single greatest source of illegal revenue, the drug trade has long been the mainstay of violent political insurgencies, rogue regimes, international criminal organizations and terrorists of every stripe," it added.
 
"Whether through the heroin that financed the former Taliban regime in Afghanistan or the cocaine that sustains the decades-old insurgency in Colombia, the drug trade generates the money that is the lifeblood of the violence that increasingly threatens global peace and stability," it stressed.
 
The report restated a list of 23 countries released in January which Washington considers producers or major transit points: Afghanistan, the Bahamas, Bolivia, Brazil, Burma (Myanmar), China, Colombia, the Dominican Republic, Ecuador, Guatemala, Haiti, India, Jamaica, Laos, Mexico, Nigeria, Pakistan, Panama, Paraguay, Peru, Thailand, Venezuela and Vietnam.
 
The US government considers Afghanistan to be the world's top heroin producer, and Colombia the top cocaine producer.
 
The report also listed countries considered "major sources of precursor or essential chemicals used in the production of illicit narcotics" -- including the United States, plus Argentina, Brazil, Canada, China, Germany, India, Mexico, and the Netherlands.
 
It also identified "major money laundering countries" and jurisdictions as those "whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking."
 
They were: Antigua and Barbuda, Australia, Austria, the Bahamas, Brazil, Burma (Myanmar), Canada, Cayman Islands, China, Colombia, Costa Rica, Cyprus, Dominica, the Dominican Republic, France, Germany, Greece, Guernsey, Haiti, Hong Kong, Hungary, India, Indonesia, the Isle of Man, Israel, Italy, Japan, Jersey, Lebanon, Liechtenstein, Luxembourg, Macau, Mexico, Nauru, the Netherlands, Nigeria, Pakistan, Panama, Paraguay, Philippines, Russia, Singapore, Spain, Switzerland, Taiwan, Thailand, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, and Venezuela.

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Bangladeshi prime minister to visit Myanmar to bolster ties
Sat Mar 1, 5:42 AM ET 
 
YANGON, Myanmar (AP)- Bangladesh's prime minister is expected to visit Myanmar later this month to strengthen trade and diplomatic relations between the neighboring countries, an official said.
 
Prime Minister Khaleda Zia will visit March 19-20, becoming the first Bangladeshi leader to travel to Myanmar since the current government took power in 1988, a Myanmar diplomat said on condition of anonymity.
 
Zia will discuss establishment of a road link between the countries, improved trade ties and other issues, the diplomat said Friday.
 
The state visit would come just three months after Myanmar junta leader Senior Gen. Than Shwe traveled to Bangladesh for the first time in two decades.
 
During the December 2002 visit, the two countries agreed to improve cultural exchanges and hold annual meetings between their foreign ministers to strengthen bilateral ties.
 
Bangladesh and Myanmar have long had historical ties and conduct both informal and official trade, mostly in raw materials, agriculture products and consumer goods.
 
Relations between the countries, which share a 256-kilometer (159-mile) border, were strained in 1991, when more than 2.5 million Muslims fled to Bangladesh from Myanmar's northwestern Rakhine state to escape alleged persecution by the junta. Western governments and human rights groups have accused the junta of widespread rights abuses.
 
More than 230,000 Muslims have returned to Myanmar since 1993, when the U.N. High Commissioner for Refugees began a repatriation program. About 22,000 Muslim refugees are still waiting to go back, according to the agency.

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Myanmar leader warns of destructive forces trying to undermine government efforts

Sun Mar 2, 1:05 AM ET
 
YANGON, Myanmar (AP) _ The leader of Myanmar's ruling junta warned Sunday that ``destructive elements'' and neocolonialists were trying to undermine government efforts to stabilize and develop the country.
 
Senior Gen. Than Shwe did not name the destructive elements, but the term has been used in the past to refer to opposition leader Aung San Suu Kyi, her National League for Democracy and anti-Yangon groups.
 
``The internal and external destructive elements, in collusion with neocolonialists, are making attempts and disseminating fabrications and rumors to disturb peace and stability of the state,'' Than Shwe said in a statement published on the front page of Myanmar's three official newspapers.
 
His comments marked the 41st anniversary of Peasant's Day.
 
The forces are trying to ``destroy the developing economic foundations, spoil the success of the border development efforts, break up national unity and hamper the pace of the anti-narcotic drive,'' the statement said.
 
He added that destructive acts must be ``opposed and thwarted'' by all people in Myanmar, ``including the peasants.''
 
The ruling junta came to power in Myanmar, also known as Burma, after crushing a pro-democracy movement in 1988. It called elections two years later but refused to honor the results, which gave the National League for Democracy, led by Nobel Peace laureate Suu Kyi, a landslide victory.
 
The two sides have been holding reconciliation talks since late 2000, but no real progress appears to have been made.

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Asian economic summit to look for ways to build economic momentum 

Sat Mar 1, 4:17 AM ET
 
SINGAPORE (AP) - Asian government, business and civil leaders will debate how to increase economic growth in the region, which is already outperforming the rest the world, when they gather in Singapore in October, the World Economic Forum's Asia director said Saturday.
 
Frank-Juergen Richter said the East Asia Economic Summit, Asia's equivalent of the annual World Economic Forum in Davos, Switzerland, will also focus on geopolitical developments, including the fallout from the Iraq crisis and the rising importance of Islam.
 
While other regions have slowed economically, Asia has generally continued to grow _ driven by rapid development in China, he said.
 
The summit _ to be held Oct. 12-14 _ will grapple with how to manage crises in a world where people have lost trust in business, governments and international organizations, Richter said.
 
He noted surveys showed trust in religious groups has risen.
 
``What we saw in Davos was international institutions that we used to believe in like NATO, the United Nations and the World Trade Organization have lost their appeal and people do not trust them anymore,'' Richter told reporters.
 
``We will integrate discussions on the clash of civilizations, religion, and role of Islam. These are all important elements because we know business is not being conducted in a room of clear determining factors,'' he said.
 
The Singapore summit aims to bring together 800 leaders. Sessions will also look at ways to remove trade barriers and bridge cultural gaps between China, Japan, Korea and the 10-member Association of Southeast Asian Nations, Richter added.
 
ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Thailand, the Philippines, Singapore and Vietnam.

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Myanmar seeks U.S. help in battle on drugs
 
YANGON, March 2 (Reuters) - Myanmar's military government urged the United States on Sunday to help it fight drug production and trafficking or risk losing out to powerful drug lords.
 
The United States has put Myanmar, considered one of the world's top opium sources, on a list of countries it says have done so little to fight drugs that they are ineligible for U.S. aid, but helps conduct an annual poppy survey in the country.
 
But the impoverished southeast Asian nation said it had slashed opium production 70 percent in the past five years to around 600 metric tonnes in 2002, a drop of 26 percent from 2001.
 
``By working together, we can win the war on drugs. But if we fail to work together, the drug traffickers gain the advantage,'' a government statement faxed to Reuters said.
 
This year's joint U.S.-Myanmar poppy survey is due to finish on Monday.
 
Myanmar's views come a little more than a week after it invited the United States to enter dialogue on the country's political future following U.S. criticism of Myanmar's human rights record and stalled transition to democracy.
 
The military, which has wielded power in various guises for four decades, refused to recognise a 1990 landslide election victory by Nobel peace laureate Aung San Suu Kyi's pro-democracy party.
 
The ruling junta released Suu Kyi from house arrest last May, raising hopes of a democratic transition, but has so far been reluctant to enter into talks with her party, the National League for Democracy (NLD).

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Asian Tribune
Date : 2003-03-02
Appalling working conditions of the Burmese workers in Malaysia exposed
 
By arrangement between the Myanmar and Malaysian governments thousand of workers were legally sent to work in Malaysia. But it is learnt all those Burmese workers are in a spot and find life miserable over there.
 
It is now reported, according to a news report of the BBC Burmese language service, the working condition in Malaysia is appalling and the Burmese workers are paid pittance compared to the earnings of the illegal workers in over there.
 
It was reported by some Burmese workers in Kuala Lumpur that many have quit their jobs due to conflicts with their employers. Recently, one of them told the BBC that they were worse off than the illegal Burmese working there. It was told that one U Ko Ko went to Malaysia personally and interviewed the Burmese workers and he gave this report to the BBC.
 
It is estimated that there are thousands of Burmese workers in Malaysia as arranged and agreed upon by the two governments. At the end of one year it was found that a large number have left their placements.
 
Ko Thet Tun Aung is one of them and he told: â?? Because this was an arrangement between the mighty bosses, we thought it would be alright. On arrival here we were paid 18 kyats per day. Sometimes we can work overtime. Not always. Though kyats 3.50 per hour are the rate for overtime, we are paid only 2.00. We have to buy our own food, cooking utensils, beds, mattresses, and pillows. There are lots of illegal workers and they are able to negotiate and are better paid. Now I am out of that arrangement and I get more money.â??
 
He referred about the workers compensation:-
 
â?? Some have sustained injuries in the collar bone, but the employers only provide treatment and no compensation is paid. A friend of mine who worked in an office injured his hand. He was only given medicine and nothing by way of compensation. They consider medical treatment as compensation.â??
 
Ko Thet Tung Aung found that quite a large number of legal workers have left because of unsatisfactory working conditions.
 
According to Ko Thet Tung Aung, the employers do not return their passports to them when they quit, therefore these workers are now considered as illegal. If such people want to return back home in Burma, they have to slip into Thailand illegally and then sneak into Burma. There are many who are facing such difficulties. Some are apprehended, and some have to pay bribes to escape the long arm of the law.
 
There are two categories of workers. One category pays its own way to work in Malaysia. The other category consists of children of retired military personnel and USDA members who are subsidized at first by government and subsequently deductions made from their earnings. Both categories experience the same difficulties and the number of quitters is increasing by the day.

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Asian Tribune
Date : 2003-03-02
Myanmar FM arrives tomorrow
 
Yangon, March 01: Foreign Minister of Myanmar Win Aung arrives in Dhaka tomorrow (Sunday) on a brief visit to Bangladesh to deliver formal invitation letter to Prime Minister Begum Khaleda Zia from Myanmar Prime Minister General Than Shew to visit Yangon.
 
The Bangladesh Prime Minister is due to pay an official visit to Myanmar on March 19-20, which the Myanmar Ambassador to Bangladesh has described as a goodwill one.
 
The envoy said that during the visit the two heads of government will hold a summit meeting and discuss the entire gamut of bilateral relations as well as regional and international issues of common concern.
 
The Myanmar Foreign Minister will also meet with his Bangladesh counterpart M Morshed Khan.
 
On the occasion, Bangladesh will arrange in the Myanmar capital a single country trade fair, food festival, fashion show and a cultural function.
 
The Myanmar Prime Minister, during his visit to Dhaka in December last, extended an invitation to his Bangladesh counterpart to visit his country.(The Independent)

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Asian Tribune
Date : 2003-03-01
International Community should suspend all aid and assistance to Burma forthwith.
 
Washington, Feb. 26: International organizations and agencies are urged to suspend all forms of aid and assistance the ruling junta in Burma until a political change towards genuine democracy in Burma is perceived.
 
The Federation of Trade Unions ? Burma, in a hard hitting statement regarding the collapse of the banking business in Burma, has warned that the entire banking system of Myanmar is on the verge of collapse, the hard-earned money and savings of the public, together with the private banking business of the military authority and its cronies shall vanish into thin air.
 
Exiled workers and students who had participated in the 8 August 1988 peoplesâ?? uprising formed the Federation of Trade Unions-Burma (FTUB) in 1991. Today it is a trade union with office located in Washington DC and Hla Oo, the president is an elected people's representative of the 1990 general election in Burma.
 
The FTU Burma was organized with the view to -
To uphold democracy and human rights in Burma
To establish free trade unions
To achieve equal distribution of wealth by emphasizing equal opportunity.
 
The FTU Burma in its statement flayed the State Peace and Development Council for the messy state of affairs in the banking sector. They added: â??This nasty catastrophe is obvious evidence that without any political change and reform, the country's economic and social aspects shall remain in deplorable conditions. Therefore it is urged that international organizations and agencies to suspend aid and assistance until a political change towards genuine democracy in Burma is perceived."
 
The full text of the statement is given below:
 
# On 14/ 02/ 03 the Central Bank of Myanmar issued a directive, restricting the private bank on the withdrawals of money. After that, the private banks were faced with the problem, of cash exhaustion. Therefore not only the private economic sector but also the general public and the people in government service all are facing difficulties in procuring money. As the entire banking system of Myanmar is on the verge of collapse, the hard-earned money and savings of the public, together with the private banking business of the military authority and its cronies shall vanish into thin air.
 
# Economists observed that in the predicament of soaring costs and economic downturn, the private banks are now faced with a financial crisis that started with the failure of the (14) Financial Services established lay the junta and its followers. The main shareholders of the Savings and Loan associations, Private Construction Industries and Banking Business are the SPDC general and their supporters, the drug lords.
 
# Since the military seizure of power in 1988 and up to this day, it is the SLORC/SPDC military government that has planned, decided and implemented the financial and economic plans and projects to which the population has followed without any questions. Because of the junta's incompetence and mismanagement, inflation is spiraling out of control and the populace at large suffers in dire poverty and is miserably hard-pressed. The SPDC alone has the sole responsibility for the ill effects that shall ensue as a consequence of such failure in the banking business.
 
# In 1999, the World Bank and the International Monetary Fund (IMF) had extended to help for the reform of the country's Economic and Financial system in accordance with the international procedures. Fearing their tight control of power might loosen and fearing the emergence of a true market economic system in the country, the junta declined the offer.
 
# This nasty catastrophe is obvious evidence that without any political change and reform, the country's economic and social aspects shall remain in deplorable conditions. Therefore it is urged that international organizations and agencies to suspend aid and assistance until a political change towards genuine democracy in Burma is perceived.
 
# The population of Burma is economically impoverished and socially disadvantaged because of serious errors committed by the SPDC military government in all avenues of social, political and economic sectors. It is exhorted that to be free from such ills, cooperation of the entire population plays a vital role in exerting for the democratic reformation.

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Asian Tribune

Date : 2003-03-01

Secretary 1, reassures public that private banks in Myanmar are safe

By Win Kyaw Oo and Moe Zaw Myint

 

Secretary 1, General Khin Nyunt, last Friday reassured the business community and hundreds of thousands of bank customers nationwide that their money was safe despite some short- term concerns within the private sector financial institutions.

 

Speaking at the annual meeting of the Ministry of Commerce, he said: "Now many people are withdrawing their deposits from the private banks in a rush because of rumors. Some are withdrawing their money for need in their business operations, but some are withdrawing money because of fear of loss," he said.

 

"Actually, the banks are safe." "For the people who have unnecessarily withdrawn money, there is no safer place for them to keep money than in the banks. "Now, the government is also providing the necessary support so that people do not face (financial) difficulties. So, regarding the banks I want to tell the public not to panic and to go about their business as usual."

 

The words from General Khin Nyunt are certain to allay fears that a run on savings accounts at the big banks during the past seven days had been swiftly dealt with by the government. To solve the predicament the Central Bank stepped in to avoid a costly run on privately owned banks, said Minister Brig-Gen Abel, a high-ranking government minister.

 

"The Central Bank of Myanmar helped the dozen or so private banks through an inter-bank loan scheme between them," said Brig-Gen Abel, the minister for the Office of the Chairman of the State Peace and Development Council. He said the government had an inalienable commitment to the banking sector at a time of distress.

 

His comments came last week to ease fears of a larger scale meltdown after thousands of confused and irrational customers rushed to the banks in all parts of the country to withdraw cash, sparked ostensibly by unfounded rumors of the nationalization of a private bank. "Some private banks were found to be not operating in line with the Financial Institutions Law," the minister said, referring to instances of just a few of the 20 private banks which gave loans more than they have been permitted to under Myanmarç?´ law.

 

Those laws stipulate that private banks are obliged to keep 20 per cent of their deposited funds in cash while 80 per cent of funds can be used for loan purposes. "We have granted loans of up to about 85 per cent of deposits to borrowers. But, when people want all their deposits back, how can we give them back immediately? We couldn� do anything, apart from taking the blame," said U Thein Tun, chairman of Tun Foundation Bank. U Thein Tun said he believed the Central Bank was right to solve the problem and view actions as urgent.

 

Meanwhile, banks, which are releasing depositors, cash in a limited way, assured customers that banks would fulfill the requirements of all the depositors with the help of the Central Bank. "The problem we face can be worked out soon, and it is a temporary problem," U Zaw Win Naing, the managing director of Kanbawza Bank, a major local bank, told Myanmar Times.

 

The Myanmar Times 24 February ã?»02 March ã?»

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ABC Radio Australia News
28/02/2003 10:17:12
Thai PM tries to start Burmese peace process
 
An alliance of Burma's rebel groups says it welcomes a promise from Thailand's Prime Minister Thaksin Shinawatra to instigate peace talks with the Rangoon government.
 
Mr Thaksin says he tried to persuade the junta to negotiate with rebel groups during a visit to Rangoon earlier this month and the leaders told him they will talk with minority groups.
 
Rebel activity along the Thai-Burma border has been a perennial irritant to relations between the two countries.
 
A spokeswoman for the umbrella Shan group, Restoration Council of Shan State, says its members appreciate the Thai proposal, but cautiously welcome the Burmese leaders' response because they have a history of breaking promises.
 
She says the rebels have not received any official information or invitation on the matter from Rangoon or the Thai government yet.
 
The statement came after a meeting of the Military Alliance Group, of five rebel organisations, including the Shan State Army and Karen National Union held in a Burma's border region with Thailand.
 
They meeting on Monday was called to prepare for future peace negotiations with the military regime.

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Chicago Tribune
Searching for the truth in Myanmar
Democracy on hold in nation on edge
By Rafael D. Frankel
Special to the Tribune
Published March 2, 2003
 
YANGON, Myanmar -- In a totalitarian nation where the grapevine has replaced the media as the trusted source of information, two rumors this month--one false, one true--have stirred this nation's simmering cauldron of discontent.
 
The economy had been on a downward spiral long before the first rumor struck--that the commercial banks were about to go bankrupt. Although false, it created a run on banks that prompted some to restrict withdrawals.
 
So when the second rumor--that Nobel laureate Aung San Suu Kyi was headed to jail again--turned out to be true, passions were already high. Soon nearly 2,000 protesters gathered outside a Yangon courthouse, an uncommon occurrence in this nation where a military junta has ruled since 1988.
 
On Feb. 21, a court found Suu Kyi, the leader of the National League for Democracy, guilty of wrongful restraint in a civil suit and gave her the choice of paying a 50-cent fine or spending a week in jail.
 
"The Lady," as she is affectionately known here, chose jail.
 
The suit stemmed from an altercation last year, two days after Suu Kyi was released from house arrest. Her cousin, Soe Aung, punched her after she refused to allow him inside her compound.
 
Suu Kyi filed a lawsuit against her cousin for assault, and he filed a countersuit. Soe Aung also was found guilty and ordered to pay a $1 fine or spend a month in jail. The outcome of his sentence was unclear.
 
The military, faced with a volatile crowd and the uncomfortable prospect of sending the hero of millions of Myanmar people to prison just eight months after her release from a second house arrest, ordered Suu Kyi's sentence suspended.
 
Though Suu Kyi won a minor victory, the path toward democracy has made no headway since her release.
 
"It's obvious the process has stalled," said a Western ambassador, who like most diplomats, political activists and residents spoke only on condition of anonymity.
 
Relations between the military and Suu Kyi's league are extremely tense. Hope for a political reconciliation, which followed Suu Kyi's release May 6, has given way to despair and frustration within the league and among its supporters.
 
Suu Kyi's conviction follows the arrest of seven National League members and five other democracy activists two weeks ago.
 
"The general sense is that the [democratic process] is going nowhere, and we are extraordinarily disappointed with that," a Western diplomat said.
 
Washington is a staunch critic of the Myanmar junta and a strong supporter of Suu Kyi, and the U.S. has imposed an investment ban, travel restrictions for Myanmar officials and an arms embargo, among other sanctions, on the country.
 
An olive branch to U.S.
 
Just this month, Myanmar's junta extended a surprise invitation to the U.S. to enter a dialogue on the country's political future. But Western diplomats here played that off as a public-relations move to ward off new sanctions rather than a serious offer.
 
The appeal followed hints by U.S. Assistant Secretary of State Lorne Craner that Washington would impose new sanctions on the former Burma due to a lack of progress in political dialogue with Suu Kyi and other democracy advocates.
 
The junta, which calls itself the State Peace and Development Council, is supposed to be engaged in UN-brokered talks on national reconciliation with Suu Kyi. The talks began in October 2000.
 
Even so, rather than negotiate, the military regime is conducting a smear campaign against the National League and Suu Kyi in particular, said league spokesman U Luwin.
 
He noted a cartoon published recently in a Yangon newspaper that depicted Suu Kyi and senior league members tarnishing the image of Myanmar.
 
According to local and foreign experts on Myanmar's laws, the trial and eventual finding against Suu Kyi appeared fraught with legal abnormalities.
 
National League officials "believe there is an orchestrated political campaign to embarrass her, to diminish her and make her look ordinary," a Western diplomat said. "The irregularities with the way this case was handled support that."
 
In its defense, the junta said that under Myanmar law "all citizens are treated equally" and that the charge of playing politics in the civil suit "is completely untrue."
 
But the Suu Kyi conviction was just the latest shock to Myanmar. Current events here have the populace on edge and even prompted the UN to issue a warning last week to its employees here to exercise caution.
 
The banking crisis, coupled with rampant inflation, is threatening to grind the economy to a halt. Since the beginning of 2002, prices for rice, cooking oil and gasoline have risen more than 100 percent.
 
Though another Western diplomat said the reasons behind the price increases were murky, the consequences were potentially devastating.
 
"The poorest could face an increasingly difficult situation here," he said. "It's hard to imagine starvation, but malnutrition, which is already a problem, could increase."
 
Talk of discontent
 
Interviews with taxi drivers, hotel clerks, educators and health-care workers here all point to high discontent with the state of affairs in what was previously one of Asia's wealthiest countries. A taxi driver, his voice trembling and rising as he spoke, said he thinks there "will soon be an explosion."
 
Due to the pervasive presence of military intelligence personnel, such "interviews" are conducted in hushed tones at the back tables of tea houses or in private vehicles--when they take place at all.
 
Fearing imprisonment or disappearance, most Myanmar citizens simply shake their head and walk away when asked about any matters concerning the military government.
 
Some 1,300 political prisoners remain jailed and executions and forced labor continue to be reported in ethnic minority areas, according to Amnesty International.
 
Those people who do talk paint a picture of a society deeply frustrated with its plummeting standard of living and an inept government that people blame for their myriad ills.

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Bangkok Post - Sunday 02 March 2003 
Army told to give rebels a hard time
Thammarak wants peace talks to start
Wassana Nanuam
 
The army has been told to play hard-ball with armed ethnic rebels along the Thai-Burmese border to make them go to the negotiating table with Rangoon.
 
Defence Minister Gen Thammarak Isarangkura na Ayudhaya said he had told the Third Army, which oversees the northern region, to give the Karen National Union and the Shan State Army a hard time.
 
``These troops must be pushed out of the country. We must not allow them to come in, even for goods. Give them a hard time and they will negotiate,'' he said.
 
The move follows Prime Minister Thaksin Shinawatra's remark after his return from a visit to Rangoon that Thailand would help bring about national reconciliation in Burma.
 
Five ethnic rebel groups had earlier agreed to the proposed reconciliation dialogue.
 
They are the KNU, the SSA, the Karenni National Progressive Party (KNPP), the Chin National Front (CNF) and the Arakan Liberation Party (ALP).
 
Gen Thammarak said his involvement in resolving border disputes between Thailand and Burma could be traced to border tension at Khao Hua Lone hill in Mae Fa Luang district in May 2001.
 
He said he had called deputy army chief Gen Watanachai Chaimuanwong, then assistant army chief, and told him to hold fire while he was negotiating with senior Burmese authorities.
 
As for drug problems, Gen Thammarak said it would be more practical to join forces with China, which is thought to have influence over drug-running groups like the Wa.
 
Thai authorities have been working closely with Beijing in trading intelligence. A Thai military officer has been dispatched to Beijing and his Chinese counterpart sent here to maintain close ties.

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