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Burma Related News - Mar 30, 2003.



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BURMA RELATED NEWS - March 30, 2003.

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HEADLINES

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AFP - Second national airline for Myanmar to launch this year: report

AP - Court Ruling May Lead To Unocal Trial Over Myanmar Project

AP - Myanmar junta urges borrowers to repay banks quickly to end crisis

Bkk Post - Red Wa `gearing up' for big drugs push into Thailand

HT - "Yaa baa", the drug driving Thais crazy

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Sunday March 30, 11:42 AM
Second national airline for Myanmar to launch this year: report
 
BANGKOK, March 30 (AFP) - Military-ruled Myanmar is expected to launch a second national airline named United Myanmar Air (UMA) later this year, a report said citing airline sources.
 
UMA is scheduled to begin operations in June using two leased Boeing 737 planes capable of carrying up to 400 passengers each, according to a report in the forthcoming Monday edition of the Myanmar Times.
 
Airline sources told the semi-official weekly that the carrier plans to fly to Bangkok, Kuala Lumpur and Singapore, the same destinations currently served by national carrier Myanmar Airways International (MAI).
 
The UMA flights would replace some MAI services already cut to those destinations, the report said.
 
An airline source was cited as saying that UMA would increase its fleet to five if there was strong demand for its flights, and would probably lease another aircraft and begin services to destinations in India and Japan once the airline was operating.
 
The new carrier will be a joint venture between the Hong Kong-based Sunshine Strategic Investment Company and domestic carrier Myanmar Airways, an enterprise of the Ministry of Transport, the report said.
 
Tourism is seen by Myanmar's junta as a key way of earning foreign exchange to boost the country's economy, which is in tatters due both to economic mismanagement and a slew of tough international sanctions aimed at persuading the generals to shift towards democracy.

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Sunday March 30, 1:20 AM
U.S. Court Ruling May Lead To Unocal Trial Over Myanmar Project
 
LOS ANGELES (AP)--A California appellate court ruling could lead to a trial against Unocal Corp.(UCL) over allegations that it shares responsibility for abuses allegedly conducted by troops guarding a pipeline project in Myanmar.
 
Refugees from the southeast Asian nation also known as Burma have accused Unocal of being complicit in slavery, murder and rape related to the 1990s construction of the US$1.2 billion Yadana pipeline. The pipeline was built by a consortium that includes El Segundo-based Unocal.
 
Superior Court Judge Victoria Chaney last year ruled that Unocal should stand trial. Lawyers for Unocal, however, argued that the case did not belong in a state court because it involved crimes allegedly perpetrated by foreign troops outside California.
 
In a ruling dated Wednesday, the 2nd District Court of Appeal denied Unocal's request, stating only that the company failed to make a case for preventing a trial.
 
"That was Unocal's last hope to avoid trial," said attorney Katie Redford, a co-founder of Earthrights International, a human rights group backing the suit. "It's the last obstacle between our clients and trial."
 
Charles Strathman, Unocal's chief legal officer, said the company would consider an appeal to the California Supreme Court.
 
The refugees first filed suit seven years ago in federal court, but U.S. District Judge Ronald S.W. Lew found that Unocal was unaware of the military's abuses and could not stand trial for liability since it did not control the troops.
 
After the case was dismissed by Lew, the refugees filed a second suit in October 2000 under state law in Superior Court.
 
A three-judge panel of the 9th U.S. Circuit Court of Appeals reinstated the federal lawsuit in September, after finding that Unocal was potentially liable because there was evidence the company knowingly encouraged the alleged abuses. Unocal challenged the judges' ruling and the San Francisco-based court in February announced it would hear the case in June with 11 judges to determine if Unocal should face a federal trial.

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Myanmar junta urges borrowers to repay banks quickly to end crisis
 
YANGON, Myanmar (AP) _ A senior leader of Myanmar's ruling military junta has urged those who have borrowed from crippled banks to repay their debts quickly to alleviate the plight of depositors and the country's economy, a newspaper reported Sunday.
 
The New Light of Myanmar newspaper quoted Gen. Khin Nyunt, the No. 3 leader in the junta, as saying that the condition of crippled banks has improved in the last few weeks but much more needs to be done.
 
``I would like to urge those who have taken loans from the banks to strive to repay their debts speedily in consideration of those who had deposited money in the banks and to ensure long term interests of the banks and to strengthen the national economy,'' he was quoted as saying.
 
Khin Nyunt was speaking at the annual meeting of the Federation of Chamber of Commerce and Industry on Saturday, the newspaper said.
 
Myanmar's financial crisis started in February with a panic withdrawal by depositors from the country's 20 private banks following the collapse of about a dozen private financial companies.
 
The companies had illegally sold shares to the public, offering greater returns than the interest given by banks.
 
Assurances given by the Central Bank governor on Feb. 10 exacerbated the run on the banks because many account holders believed the rare comment by a normally tightlipped government hid a big underlying problem.
 
In a bailout package, the Central Bank is believed to have given a total credit of 25 billion kyat to the Asia Wealth Bank, the Kanbawza Bank and the Yoma Bank _ three of the biggest private banks in the country.
 
The amount is worth about US$4 billion at the official exchange rate or US$25 million at the widely used black market rate.
 
Still, the rush for withdrawals led the three banks to suspend credit card services, and the Central Bank imposed a limit on withdrawals.
 
Depositors were allowed to withdraw 500,000 kyat a week on Feb. 18 and the amount was later reduced to 100,000 kyat a week. Lately, some major banks have further reduced the withdrawal limit to 50,000 kyat a week.
 
Many people have been forced by banks to repay their loans, often selling their assets, mostly cars, at a loss, said one businessman forced to repay his loan who spoke on condition of anonymity.
 
A second-hand car dealer said one of his customers sold his vehicle in desperation for about half the market price because of pressure to pay back his loan.
 
Ordinary people who took out loans to buy consumer goods or property have also been hard hit by the new bank regulations.
 
``This is a breach of contract by the bank. I have been paying the interest regularly and I have the right to get an extension for the loan as I have given collateral for the loan,'' said Khin Khin San, who said she had bought a plot of land with the money.

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Bangkok Post - Sunday 30 March 2003
Red Wa `gearing up' for big drugs push into Thailand
Wassana Nanuam
 
The Pha Muang task force chief-of-staff says 500 Red Wa soldiers are being trained to provide security for drug caravans expected to head for Thailand next month.
 
Col Somsak Nilbanjerdkul said a big push was expected by Red Wa drug producers to smuggle millions of speed pills into Thailand next month, especially during Songkran festival.
 
Up to 500 Red Wa soldiers had been sent for training at a military school in New Yawn town, opposite Chiang Rai's Mae Fa Luang district.
 
Ready to be smuggled were about three million speed pills at Ban Na Mon, opposite Mae Hong Son, two million at a Burmese town opposite Chiang Mai's Wiang Haeng district, and one million pills at Laos' Bo Keo, opposite Chiang Rai. The government's war on drugs had curbed the inflow, causing shortages.
 
Col Apichart Meesommon, commander of the 5th Cavalry Regiment, said the way the Red Wa increased the number of soldiers for training to 500 from 100-200, reflected their preparations for drug trafficking. He said there were up to 50 methamphetamine production sources in Burma along the northern border including a major one belonging to the Red Wa at Ban Hong.
 
Pithaya Jinawat, director of Northern Narcotics Control Office, said he doubted whether the Red Wa would stop producing drugs by 2005, as promised.
 
A Third Army intelligence officer said the Red Wa's Hong Pang Company in Burma's Tachilek province was renamed Green Land Company and still being used for money laundering.

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Hindustan Times
Sunday, March 30, 2003 | Updated: 11:02 IST
"Yaa baa", the drug driving Thais crazy
Agence France-Presse
Bangkok, March 30
 
From the clandestine laboratories of Myanmar to the pockets of several million Thai users, the methamphetamine pills known as yaa baa are wreaking havoc in supplanting heroin as Thailand's number one killer drug.
 
Following the century-old trade routes used by heroin traffickers and other smugglers, the potent little pill has woven its way into the fabric of Thai society like no other vice in decades, and is having disastrous effects on the brains of its unsuspecting consumers.
 
Yaa baa, or crazy medicine as methamphetamine is known in Thailand, is in the crosshairs of a two-month anti-drugs crackdown here that has resulted in the deaths of nearly 1,900 suspected traffickers.
 
The brutal, no-holds barred blitz indicates the soaring level of concern over the drug since its popularity mushroomed in the mid-1990s, making Thailand the world's number one consumer.
 
What's frightening about the psychotropic drug is its extremely broad use across society, with Thais using it for both work and pleasure, Pierre-Arnaud Chouvy and Joel Meissonnier explain in Yaa Baa, their book recently published by the Institute of Research on Contemporary Southeast Asia (IRASEC).
 
Construction workers, sailors, farmers and taxi drivers take the drug to help them through long working days, students use it to get through exam periods and clubbers use it to help them dance the night away.
 
Yaa baa possesses several qualities that have helped it supplant heroin as the drug of choice in Thailand.
 
The drug, the book's authors write, "conveys a completely positive image". Being synthetic, it appears modern and inoffensive, while the energy, confidence and euphoric feeling it gives users has lent it an image as a "drug of happiness".
 
The small pills, of which there are at least 90 types, can also be easily consumed: similar to an aspirin, they can be popped or dissolved in a glass of water, taken intravenously, pulverised and inhaled, even smoked.
 
For producers, yaa baa is attractive because it is easy to manufacture - instructions are available on the Internet - and free from the climatic uncertainties that dog other drugs.
 
Heroin, on the other hand, requires opium poppy as its raw ingredient while cocaine depends on yields from the coca plant.
 
Another advantage is its extremely affordable price: Before the start of Thailand's drugs war on February 1 pushed the price of yaa baa up by around 300 per cent, it cost a mere 60 baht ($1.50) or so per pill on the streets.
 
But the small price still represents a huge mark-up on the five-cent cost of production - and unleashed the flood of some 800 million pills into Thailand last year from neighbouring Myanmar.
 
"The majority of the drug comes indeed from Myanmar particularly the areas controlled by the Wa of the UWSA (United Wa State Army)," the authors write, referring to the pro-Yangon ethnic group said to operate around 50 laboratories close to the border, as well as mobile production units.
 
Alleged links between Myanmar's military rulers and the UWSA - and the resulting lack of law enforcement - as well as the remote jungle canopy under which the UWSA operate, conspire to make Myanmar an unrivalled regional producer.
 
The drug has become a specialty of the Golden Triangle where Thailand, Laos and Myanmar converge and much of the world's opium is still produced.
 
Methamphetamine is overtaking heroin as the production drug of choice in the area and is profiting enormously from the distribution networks that heroin trafficking has already established, according to Chouvy and Meissonnier.
 
Some five percent of Thailand's population is now estimated to abuse methamphetamine, a figure the International Narcotics Control Bureau says makes it the largest per capita consumer in the world.
 
The drug has been around in other forms for years, first used in the 1920s as an antidepressant and then as a psychostimulant during World War II and the Vietnam war.
 
Armies of "ants," recruited from among impoverished ethnic minorities, transport the pills along a multitude of routes, with protectors including Myanmar soldiers and Thai police and bureaucrats allowing them to eventually reach consumers in Thailand.
 
One pill will pass through seven intermediaries from the frontier runner to the retailer, who will usually sell more to the drug user than he or she requires, the book's authors say.
 
This creates another dealer -- which explains the drug's easy availability across Thailand.
 
Owners of boats in the southern coastal province of Ranong and construction foremen in Bangkok are known to force their workers to take the drug at the beginning of the workday.
 
And occasionally in rural areas, "the farmers dissolve the drug in a bottle which they drink while working."
 
But it is the kingdom's youth who are most at risk. Consumers are as young as seven and "school has become one of the main hubs for trafficking of methamphetamine."

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