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Burma Related News - July 08, 2003.



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BURMA RELATED NEWS - July 08, 2003.

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HEADLINES

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AP - Myanmar economy a slippery target for sanctions by West

AP - Sanctions May Have No Effect on Myanmar

AP - EU imposes tougher sanctions on Myanmar for 'serious violations of

AP - Myanmar state media launches fresh attack against Suu Kyi

BBC News - India closes Burma border

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Myanmar economy a slippery target for sanctions by West
By GRANT PECK
The Associated Press
7/8/03 7:52 AM

BANGKOK, Thailand (AP) -- With Myanmar's democracy leader Aung San Suu Kyi again under arrest, the United States is preparing tough economic sanctions against the ruling military junta to make it change its course.

But history and politics argue that such moves may have little effect.

Myanmar, also known as Burma, has come under intense international criticism since arresting Nobel Prize winner Suu Kyi on May 30. Japan, Myanmar's largest aid donor, has announced plans not to extend new development assistance.

Now an imminent U.S. ban on imports from Myanmar could cut its export earnings by one-quarter to one-third. The country's exports to the United States totaled about $356 million in 2002, mostly in garments.

The import ban is part of a package of measures the U.S. Congress assembled to punish the ruling junta for its fresh crackdown on the country's pro-democracy movement. A bill passed by the Senate is awaiting House approval, and President Bush is expected to quickly sign it into law.

Lawmakers were angry at the apparent violent provocation by Myanmar's military which triggered the crackdown and has put Suu Kyi in detention for an indefinite period. Never convicted of a crime, the 1991 Nobel Peace laureate was previously held under house arrest in 1989-95 and again in 2000-02.

"The message that we are sending to the ruling junta in Burma is clear: Its behavior is outrageous," said Sen. Patrick Leahy of Vermont.

Proposed European Union trade barriers would also chip away at export earnings.

But Myanmar, long ruled by generals, has a long history of economic isolation giving it a certain immunity against sanctions.

The late military dictator Gen. Ne Win, who ruled from 1962 to 1988, espoused a "Burmese Road to Socialism" banning most foreign investment which turned one of Southeast Asia's most prosperous economies into a basket case.

The country has gone without much bilateral aid and no new aid from the World Bank and the International Monetary Fund since 1988 when the military brutally crushed a pro-democracy uprising. Washington banned new investment by U.S. companies in 1997.

"People have mixed feelings about sanctions," said U Saw, a businessman. "They know there is a need, but it affects the people."

People are used to hardship, U Saw said. "Forty years ago we are suffering. Today we are suffering," he said.

Global maneuvering may lessen the impact of sanctions.

As Western nations ostracized the military regime, China seized the opportunity to become Myanmar's closest political ally, main military supplier, and, in essence, banker of last resort.

Senior Gen. Than Shwe reaped a $200 million loan in a trip to China along with agreements on health, technical and economic cooperation and the prospects for new industrial projects.

Playing the China card has also pulled India -- once an outspoken friend of Myanmar's pro-democracy movement -- into Yangon's corner.

India has agreements with Myanmar to develop road and port facilities, and to explore for offshore and onshore petroleum and gas. Gas and mineral investment by many countries already promise future income for the junta.

Still, Western nations are committed to imposing sanctions, although their effectiveness as a form of political leverage is sharply debated.

Proponents claim sanctions forced South Africa to abandon its racist apartheid system. Opponents cite Cuba's survival through four decades of financial ostracism by Washington.

"The proposed new sanctions will bring about neither freedom, nor democracy to the Burmese people," said Bill Reinsch, president of the National Foreign Trade Council and co-chairman of USA Engage, a group which opposes economic sanctions.

Sanctions, he said, will hurt the Burmese people because many depend on the export market to earn a living.

But the nonpartisan New York-based Council on Foreign Relations said in a June study that sanctions can make an impact.

"Economic sanctions against the Burmese regime adversely affect industries that directly benefit the military and deprive it of an important source of revenue," says the report.

Repression has driven many of the country's best and brightest abroad, including some notably gifted economists, while the economy is close to dysfunctional.

"Pervasive corruption and continuing economic mismanagement by the regime have hurt the Burmese people even more than sanctions," says the Council on Foreign Relations report.

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Sanctions May Have No Effect on Myanmar
Tue Jul 8, 5:54 AM ET
By GRANT PECK, Associated Press Writer


BANGKOK, Thailand - With Myanmar's democracy leader Aung San Suu Kyi again under arrest, the United States is preparing tough economic sanctions against the ruling military junta to make it change its course.

But history and politics argue that such moves may have little effect.

Myanmar, also known as Burma, has come under intense international criticism since arresting Nobel Prize winner Suu Kyi on May 30. Japan, Myanmar's largest aid donor, has announced plans not to extend new development assistance.

Now an imminent U.S. ban on imports from Myanmar could cut its export earnings by one-quarter to one-third. The country's exports to the United States totaled about $356 million in 2002, mostly in garments.

The import ban is part of a package of measures the U.S. Congress assembled to punish the ruling junta for its fresh crackdown on the country's pro-democracy movement. A bill passed by the Senate is awaiting House approval, and President Bush is expected to quickly sign it into law.

Lawmakers were angry at the apparent violent provocation by Myanmar's military which triggered the crackdown and has put Suu Kyi in detention for an indefinite period. Never convicted of a crime, the 1991 Nobel Peace laureate was previously held under house arrest in 1989-95 and again in 2000-02.

"The message that we are sending to the ruling junta in Burma is clear: Its behavior is outrageous," said Sen. Patrick Leahy of Vermont.

Proposed European Union trade barriers would also chip away at export earnings.

But Myanmar, long ruled by generals, has a long history of economic isolation giving it a certain immunity against sanctions.

The late military dictator Gen. Ne Win, who ruled from 1962 to 1988, espoused a "Burmese Road to Socialism" banning most foreign investment which turned one of Southeast Asia's most prosperous economies into a basket case.

The country has gone without much bilateral aid and no new aid from the World Bank and the International Monetary Fund since 1988 when the military brutally crushed a pro-democracy uprising. Washington banned new investment by U.S. companies in 1997.

"People have mixed feelings about sanctions," said U Saw, a businessman. "They know there is a need, but it affects the people."

People are used to hardship, U Saw said. "Forty years ago we are suffering. Today we are suffering," he said.

Global maneuvering may lessen the impact of sanctions.

As Western nations ostracized the military regime, China seized the opportunity to become Myanmar's closest political ally, main military supplier, and, in essence, banker of last resort.

Senior Gen. Than Shwe reaped a $200 million loan in a trip to China along with agreements on health, technical and economic cooperation and the prospects for new industrial projects.

Playing the China card has also pulled India ? once an outspoken friend of Myanmar's pro-democracy movement ? into Yangon's corner.

India has agreements with Myanmar to develop road and port facilities, and to explore for offshore and onshore petroleum and gas. Gas and mineral investment by many countries already promise future income for the junta.

Still, Western nations are committed to imposing sanctions, although their effectiveness as a form of political leverage is sharply debated.

Proponents claim sanctions forced South Africa to abandon its racist apartheid system. Opponents cite Cuba's survival through four decades of financial ostracism by Washington.

"The proposed new sanctions will bring about neither freedom, nor democracy to the Burmese people," said Bill Reinsch, president of the National Foreign Trade Council and co-chairman of USA Engage, a group which opposes economic sanctions.

Sanctions, he said, will hurt the Burmese people because many depend on the export market to earn a living.

But the nonpartisan New York-based Council on Foreign Relations said in a June study that sanctions can make an impact.

"Economic sanctions against the Burmese regime adversely affect industries that directly benefit the military and deprive it of an important source of revenue," says the report.

Repression has driven many of the country's best and brightest abroad, including some notably gifted economists, while the economy is close to dysfunctional.

"Pervasive corruption and continuing economic mismanagement by the regime have hurt the Burmese people even more than sanctions," says the Council on Foreign Relations report.

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EU imposes tougher sanctions on Myanmar for 'serious violations of human rights

Mon Jul 7, 1:34 PM ET

BRUSSELS, Belgium (AP) _ The European Union on Monday broadened its arms embargo against the military regime in Myanmar, accusing the junta of serious human rights violations.

The 15 EU governments imposed the tougher sanctions in line with an agreement reached at their summit last month in Greece. They add the provision of any arms-related technical training and assistance to a general arms embargo.

In a statement, the EU said it acted ``in view of the further deterioration in the political situation there and the continuing serious violations of human rights.''

The Red Cross last week said the military regime in Myanmar has at least 30 prisoners from a May 30 clash that triggered a crackdown on dissidents and to the jailing of opposition leader Aung San Suu Kyi, who received the Nobel prize in 1991 for her nonviolent promotion of democracy in the country also known as Burma.

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Myanmar state media launches fresh attack against Suu Kyi

Tue Jul 8, 5:08 AM ET

YANGON, Myanmar (AP) - Myanmar's state media stepped up its criticism of detained opposition leader Aung San Suu Kyi on Tuesday, accusing her pro-democracy party of breaking the law by drafting a national constitution.

The charge was made in an article published in The New Light of Myanmar newspaper, allegedly written by a disgruntled member of Suu Kyi's party who said the plans showed that the party's leaders were ``not genuinely concerned in the future of the country.''

Writing a constitution other than one being drafted by the government is outlawed. Groups breaking the law face suspension or dissolution while individuals face a penalty of five to 20 years in prison.

The article was the latest in a series in the state-controlled press critical of Suu Kyi, who was detained after a bloody May 30 clash in northern Myanmar between her supporters and backers of the ruling junta.

Diplomats and observers say the articles _ which in the past four days have accused her of being inflexible, confrontational and a pawn of the United States _ indicate that the Nobel Peace laureate will probably not be freed soon despite a mounting international outcry for her release.

Myanmar has not had a constitution since 1988, when the current military government took power and the country's previous socialist constitution was abrogated.

An officially sanctioned national convention to draw up guidelines for a new constitution began in 1993 and has been suspended since 1996. It was rejected by Suu Kyi's National League for Democracy as undemocratic.

The law outlawing an alternative constitution was introduced in June 1996 after Suu Kyi announced plans to draft one.

The NLD won 1990 general elections but was barred by the military from taking power.

In Tuesday's article, by a writer named as Maung Yin Hmaing, referred to a meeting of the NLD's central executive committee that reportedly discussed certain provisions of the party's draft constitution.

``Can a constitution of state, which is as precious as life itself, be drawn up by just two or three people?'' the article said. ``Since this draft constitution had been drawn up and our party leaders had accepted it, it obviously shows that they are not genuinely concerned in the future of the country,'' it said.

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BBC News
India closes Burma border
By Subir Bhaumik

BBC correspondent in Calcutta
Tuesday, 8 July, 2003

Naga rebels have fought India for more than 40 years

Indian military officials say they have sealed off the border with Burma's Sagaing region after receiving reports that the Burmese troops have overrun the headquarters of a Naga separatist group in the remote Patkai mountains.

India's eastern army officials told the BBC the Burmese army took over the headquarters of a faction of the National Socialist Council of Nagaland (NSCN) led by Burmese Naga leader SS Khaplang, without much of a fight.

The army's chief of staff, Lieutenant General JR Mukherji, said his troops had been positioned to seal off possible routes that the NSCN rebels may take to enter the Indian state of Nagaland and Arunachal Pradesh.

The NSCN's breakaway Khaplang faction had been well entrenched in the remote Patkai mountains in western Sagaing for well over a decade.

Previous attempts by the Burmese army to drive the rebels out had failed because the remoteness and inaccessibility of the hill terrain makes sustaining an offensive difficult and logistics a nightmare.

Blistering attack

Lt Gen Mukherji said the Burmese troops have stayed put after overrunning the rebel headquarters last week and forcing the rebels to flee.

A spokesman of the NSCN's Khaplang faction said two light infantry regiments of the Burmese army launched a blistering assault on the group's headquarters using rockets and mortars last week.

It was not yet clear whether the Burmese troops would dig in and occupy the rebel camp during the monsoon.

The NSCN's Khaplang faction maintains a ceasefire with Indian troops, but Delhi has not invited its leader for the negotiations that has been going on with the NSCN's main faction led by Issac Chisi Swu and Thuingaleng Muivah for six years now.
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