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Burma Related News - April 19, 2001.



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BURMA RELATED NEWS - April 19, 2001.
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HEADLINES
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Reuters - Rays of hope seen for change in Myanmar
Dow Jones - ADB Outlook: Myanmar Urged To Implement Growth Reforms
AFP - UN Human Rights Commission resolution "unfair": Myanmar
BBC - UN hard on Burma
Reuters - Myanmar lashes out at "biased" UN rights resolution
WorldNews.com - Asian Reforms Support Economic Stability
The Nation - Third Army seizes 7.7m pills in Tak
Bkk Post - Army seize speed pills after clash with Karen guerrillas
Xinhuanet - Myanmar Generates More Electricity in 2000
Xinhuanet - Myanmar's Bilateral Trade With ASEAN Members Up in 2000
Xinhuanet - Myanmar Draws 7.3 Bln Dollars' Foreign Investment in 13 Years
Xinhuanet - Myanmar to Establish ICT Park
Xinhuanet - Myanmar Rejects U.N. Resolution on Human Rights
Neue Zürcher Zeitung  - Is Burma Overcoming Its Political Stalemate?
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Thursday April 19, 7:03 AM
Rays of hope seen for change in Myanmar
By Sonya Hepinstall
 
WASHINGTON (Reuters) - For the first time in decades, there are signs of the possibility of real political change in Myanmar, one of the world's most isolated countries, a senior U.S. diplomat said on Wednesday.
 
"We are witnessing for the first time in decades some rays of hope," said Priscilla Clapp, the charge d'affaires at the U.S. Embassy in Myanmar, which is also known as Burma.
 
Clapp said she saw no signs of an heir apparent to Myanmar's top official, Than Shwe, chairman of the State Peace and Development Council, despite reports of a power struggle between his No. 2 and 3 men, Maung Aye and Khin Nyunt.
 
"I don't see a new leadership coming up behind Than Shwe. This may be the end of a military era," she said. "There's no heir apparent."
 
The most obvious sign of change in Yangon, the capital, is a secret dialogue between the government and opposition leader Aung San Suu Kyi, she said, but there are others, including eased pressure on Suu Kyi's National League for Democracy.
 
Between 120 and 150 NLD followers were released from prison recently, and although most were detained only months ago, longer-term political prisoners are also "trickling out," Clapp said.
 
Besides, "the NLD headquarters is operating more freely than it has in a long time," she said. The government has eased surveillance of the headquarters and allowed greater freedom of movement for NLD members, she said.
 
LANGUAGE CHANGES SUBTLY
 
The language and public attitude of the military government has changed as well, Clapp told a breakfast of academics, business people and diplomats sponsored by the Asia Society.
 
"They talk about democracy being their goal, which is a subtle but major change," she said. "Democracy always had some sort of pejorative meaning. ... It always was something that the neo-colonial powers were using as an axe against the regime."
 
Clapp said the government was also now using the term "human rights" less pejoratively and had admitted there was such a thing in Myanmar as forced labour.
 
The International Labour Organization voted in November to urge governments and international bodies to impose sanctions on Myanmar to compel it to respond to concerns about a system under which rural people are forced to work under inhuman conditions and without pay on government projects such as road building.
 
"These are significant developments (but) they are not irreversible. It's still in a very early stage," she said.
 
She credited the tenacity of Suu Kyi and the NLD, which in 1990 won Myanmar's last general election but was not allowed to govern. But she also lauded the international community, including the Association of Southeast Asian Nations.
 
GOAL OF "ENGAGEMENT"
 
ASEAN, which now counts Myanmar among its 10 members, has often been criticized in the West for pursuing "engagement" with Yangon rather than imposing sanctions.
 
"ASEAN exercises its pressure in very friendly ways. You may not recognize it as the kind of pressure that the United States would exercise. It's not straightforward. ... I think that's been going on longer than we realize," Clapp said.
 
She especially praised Razali Ismail, a Malaysian diplomat appointed special representative of U.N. Secretary-General Kofi Annan, for working methodically from last July to hear diverse views and establishing a permanent foothold in Yangon.
 
Razali was the only diplomat given access to Suu Kyi for several months after she was put under de facto house arrest in September. Clapp said it helped that Razali was close to Mahathir Mohamad, prime minister of key ASEAN member Malaysia.
 
"It makes it more difficult for the Burmese government to deny him access," she said.
 
The military has been in charge of Burma since General Ne Win staged a coup in 1962.
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Thursday April 19, 1:04 PM
ADB Outlook: Myanmar Urged To Implement Growth Reforms
 
BANGKOK (Dow Jones)--The Asian Development Bank has urged the Government of Myanmar to introduce structural reforms to help the country boost economic growth and reduce poverty, the bank said in its Asian Development Outlook Thursday.
"The most urgent challenge facing the government is to achieve rapid economic growth to reduce poverty," the bank said. "If it can initiate a program of policy reform measures and external aid agencies can provide assistance, the economy has the potential to maintain broad-based growth."
 
Myanmar's economy grew 11% in the fiscal year ended March 31, 2000, according to official estimates. Growth was mainly underpinned by a strong agricultural performance due to good weather and the expansion of areas under cultivation.
 
However, following an initial liberalization of the economy in 1998 progress has slowed. The ADB warned that unless more comprehensive and consistent structural reforms are undertaken and additional domestic and external resources are mobilized, economic growth will remain sluggish and vulnerable to exogenous factors, such as weather, the regional economic environment and fluctuations in global commodity prices.
 
ADB noted that the government should boost investment and savings ratios, which stood at about 12% to 13% in 2000, reduce the budget deficit and promote exports. It also noted the need to strengthen the banking sector and enhance the supervisory and regulatory capacities of the central bank.
 
Total exports stood at $1.1 billion in 1999, consisting mainly of primary products but with an increasing share of garments and agro-based manufactured goods. Imports amounted to $2.4 billion resulting in a trade deficit of $1.3 billion in 1999, while the current account registered a smaller deficit of $494 million.
 
The country's foreign exchange market also remains highly distorted, the bank said, with a parallel market rate of 460 kyat to the dollar compared to an official rate of MMK6 to the dollar.
 
"The policy of multiple and widely divergent foreign exchange rates has to be given up and unification of the exchange rate implemented as soon as possible" to remove the distortion in resource allocation and a strong disincentive to investment, the ADB said.
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Thursday April 19, 8:32 PM
UN Human Rights Commission resolution "unfair": Myanmar
 
BANGKOK, April 19 (AFP) - Myanmar's ruling junta Thursday dismissed a resolution by the UN Human Rights Commission that said rights abuses in the country remained at an unacceptable level.
 
The resolution, passed without a vote by 53 member countries of the commission in Geneva, said the body was deeply concerned over Myanmar's continued persecution of the political opposition, including Nobel Peace Prize winner Aung San Suu Kyi.
 
But Myanmar's ruling junta insisted the resolution failed to accurately portray the situation in the country, particularly because it relied on information supplied by the UN's previous human rights rapporteur.
 
The UN's new human rights envoy Paulo Sergio Pinheiro travelled to Myanmar earlier this month for what the junta called a "constructive" visit, the first time in five years such a visit was allowed.
 
"The observations and concerns of the previous special rapporteur, which have lost touch with the current reality in Myanmar, are given undue prominence," Myanmar's Ministry of Foreign Affairs said in a statement.
 
Pinheiro replaced Rajsoomer Lallah, who quit last year having never being given permission to travel to Yangon.
 
In contrast to the outspoken Lallah, Pinheiro is said to have adopted a non-confrontational approach which won plaudits among the notoriously touchy generals in Yangon.
 
The resolution also held up for criticism Yangon's failure to end the generalised and systematic use of forced labour despite three injunctions by the International Labour Organisation.
 
However the commission "noted with satisfaction" contacts between the government and Aung San Suu Kyi as well as the liberation of several political militants.
 
Nevertheless, Myanmar blasted the resolution as an unfair and biased attack that was politically motivated and designed to exert pressure on the government in a counter-productive way.
 
"As the resolution is derogatory, unfair and partial, still retaining many negative elements representing policy of strong-armed tactics by a clearly biased group of countries, Myanmar has no other alternative but to have dissociated itself from the resolution."
 
The UN commission also called on Myanmar to stop laying landmines and to end the forced displacement of people.
 
Rights groups have singled out the Myanmar regime as one of the world's worst human rights offenders.
 
The UN Human Rights Commission last year passed a resolution expressing grave concern at the "systematic and increasingly severe" rights violations in the country.
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BBC - Wednesday, 18 April, 2001, 20:22 GMT 21:22 UK
UN hard on Burma
 
The United Nations Commission of Human Rights has formally passed a resolution on Burma welcoming some progress, but expressing grave concern over a number of violations.
 
The report's findings had been released about a week ago and came up at the Commission's meeting in Geneva.
 
The resolution welcomed contacts between Burma's military rulers and the National League for Democracy led by Aung San Suu Kyi.
 
But it criticised Burma for what it called systematic persecution against the League, as well as gross human rights violations including executions, mass arrests and forced labour.
 
From the newsroom of the BBC World Service
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WIRE: 04/19/2001 9:09 am ET
Myanmar lashes out at "biased" UN rights resolution
By Aung Hla Tun
 
YANGON, April 19 (Reuters) - Myanmar's military government lashed out on Thursday at the latest United Nations human rights resolution on the country, branding it "derogatory, unfair and partial" and denying accusations of rights abuses.
It also said the resolution would damage "the momentum of cooperation" between the government and the new U.N. human rights envoy to Myanmar, Paulo Sergio Pinheiro.
 
"The resolution is politically motivated and clearly aimed at exerting continued pressure on the government of Myanmar, which is a misplaced policy that will in no way contribute to the promotion and protection of human rights," the government said in a statement.
 
"As a government fully compassionate towards its citizenry, the government of Myanmar will unswervingly continue its efforts to improve the life of the people of Myanmar."
 
In Geneva on Wednesday, the United Nations Commission on Human Rights adopted a resolution which praised Myanmar's ruling generals for taking part in talks with pro-democracy opposition leader Aung San Suu Kyi but alleged major violations of human rights including executions, mass arrests and forced labour.
 
The resolution expressed grave concern at what it called "the systematic policy of the government of Myanmar of persecuting the democratic opposition...members and their families, as well as ethnic opposition parties."
 
It called on the ruling military to ensure the safety and freedom of movement of all political leaders, including Nobel Peace Prize laureate Suu Kyi, held under de facto arrest since September with access to her strictly controlled.
 
STALEMATE
 
Myanmar noted the few positive elements in the resolution but said the criticisms were unfair.
 
"The resolution, except for a few elements, is far from being objective, impartial or fair," it said.
 
"Even the reflection in the resolution of the positive and encouraging developments in the country is offset in the later part of the resolution by accentuating the unfounded allegations."
 
The resolution alleged that the government used intimidatory methods such as arbitrary arrest and detention, and harsh long-term prison sentences which "has forced many to refrain from exercising their legitimate political rights."
 
Myanmar has been locked in political stalemate for years. Suu Kyi's opposition National League for Democracy won elections in 1990 by a landslide but has never been allowed to govern.
 
But relations between the military and the opposition have improved in recent months with a series of meetings between Suu Kyi and senior generals.
 
The government says it is committed to building democracy but the country could disintegrate if political transition is too fast.
 
The U.N. resolution comes after a visit to Myanmar early this month by Pinheiro, a Brazilian who took over as U.N. special rapporteur for the country after the resignation of his predecessor Rajsoomer Lallah in November.
 
Myanmar's government never allowed Lallah to visit, and its decision to allow Pinheiro into the country was widely seen as an olive branch to the international community.
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Asian Reforms Support Economic Stability
WorldNews.com
, Wed 18 Apr 2001
 
World Bank News Roundup.
 
The Asian currencies, together with the Japanese yen, are once again under pressure, and some analysts are beginning to wonder whether the region is in for another 1997-style crisis, notes World Bank chief economist for East Asia Masahiro Kawai in the Business Times (Singapore). We think not, he says. Though the symptoms may look similar-falling yen leading to falling currencies across East Asia-there are major and fundamental differences between then and now.
 
Over the last three-and-a-half years, East Asian economies have made their exchange rates more flexible, run sizeable current account surpluses, reduced short-term external debt, and accumulated foreign exchange reserves. Essentially, their economic adjustment and structural reforms paid important dividends. Today, their short-term external debt is much smaller than their foreign exchange reserves. This strengthened external position can help fend off speculative attacks on the currencies in the region. In addition, greater exchange rate flexibility is providing a cushion to the authorities.
 
Nevertheless, while a repeat of the 1997 type of currency crisis is unlikely, some cautions are necessary. First, Malaysia, Hong Kong SAR and China currently peg their currencies to the US dollar and as a result may suffer a loss of international price competitiveness due to currency depreciation in the neighboring countries. At the appropriate time, some of them may consider stabilizing their exchange rates against a basket of major international currencies including the US dollar, the Japanese yen, and the euro, to provide some flexibility and international price competitiveness while reducing volatility.
 
Second, Indonesia continues to be problematic. The private corporations' external debt overhang is still large and unresolved, the Indonesian Bank Restructuring Agency's asset sales and disposal have been slow, and fiscal pressure is mounting, thereby posing serious problems for the domestic economy, reform agendas and external payments solvency. National consensus as to how to accelerate economic reforms must be reached quickly.
 
Third, despite the remarkable progress made on financial and corporate sector restructuring in former crisis-affected countries, the restructuring efforts have not been followed through adequately, diminishing business and investor confidence and leaving the financial and corporate sectors vulnerable to external shocks. The current global slowdown is reducing corporate profits and adding distress in the banking sectors. Without resolving bank non-performing loans (Naples) and corporate debt overhangs, these economies face the risk of prolonged slow growth.
 
Despite being in a better position now than four years ago, the countries of East Asia cannot afford to be complacent about reforms, Kawai says. The prospect of a slowdown should send a signal to all policymakers across East Asia and the Pacific that the region has a large, unfinished reform agenda-one which includes bank and corporate restructuring; poverty reduction (with nearly half the population of East Asia still living on less than $2 a day); governance, judicial, and public sector reforms; further progress on social development goals in education and health; renewed attention to environmental issues; and greater emphasis on trade and investment liberalization and regional integration. Only steady, sustained progress in these key areas will attract sufficient investment to create the jobs needed to lift people from poverty and set the region on a sustainable growth path.
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The Nation - April 19, 2001.
Third Army seizes 7.7m pills in Tak
 
THE Third Army has seized a record haul of methamphetamine pills from a group of traffickers on the Burma border, army spokesman Col Somkuan Sangpattaranet announced yesterday.
 
Some 7.7 million methamphetamine tablets were seized after the Third Army's Naresuan Task Force ambushed a drug caravan protected by unidentified gunmen in Tak province on Monday night, Somkuan said.
 
"We believe the drugs belonged to the Democratic Karen Buddhist Army," Somkuan said, adding that the gunmen abandoned the drugs after a brief firefight.
 
"Precise intelligence" could be credited for the success of the operation, he said.
 
The drug haul was later transferred to police in Chiang Mai.
 
Monday's haul was the country's second-largest drug seizure after 7.8 million methamphetamine pills and 779 kilograms of heroin were found on a boat in the Andaman Sea in January.
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Bangkok Post - April 19, 2001.
Army seize speed pills after clash with Karen guerrillas
Wassana Nanuam
 
An army special task force clashed with pro-Rangoon Karen guerrillas in Tak's Phop Phra district on Monday and seized 7.6 million speed pills.
 
The Naresuan task force, from the Fourth Infantry Regiment, ambushed the guerrillas of the Democratic Karen Buddhist Army near Chong Khaep village following a tip-off that they would try to smuggle a large quantity of drugs into Thailand.
 
The Karen fled after a brief clash, leaving behind 7.6 million methamphetamine pills.
 
Army spokesman Col Somkhuan Saengpattharanet said the Thai side suffered no death or injuries. It was not known if there were any casualties among the Karen.
 
A border source said the drugs seized from the Karen were part of some 40 million speed pills the Red Wa planned to smuggle into Thailand during the Songkran festival. The shipment was meant to be delivered to Hmong and Chinese Haw dealers in Phop Phra, the source said.
 
Lt-Gen Wattanachai Chaimuenwong, the Third Army chief, said he would meet Burma's Triangle Region commander Maj-Gen Thein Sein to discuss Thai-Burmese agreements reached at the April 2-4 Regional Border Committee meeting in Kengtung
 
Burmese leaders promised during the meeting to help destroy illicit drug factories in their territory if Thailand could pinpoint their locations.
 
Lt-Gen Wattanachai said he would pass on such information to Rangoon so the Burmese could take action.
 
He would also watch Rangoon closely to see if it keeps its promise.
 
So far, there has been no progress in drug suppression on the part of Burma.
 
He said the inaction might be because border authorities were still waiting for instructions from Rangoon.
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Myanmar Generates More Electricity in 2000
2001.04.19 10:03:32 
 
YANGON, April 19 (Xinhuanet) -- Electric power generated by the  state-run Myanma Electric Power Enterprise (MEPE), the main  electricity supplier of the country, totaled 5.028 billion  kilowatt-hours (kwh) in 2000, 17 percent more than in 1999, said  the latest issue of the government Economic Indicators.
Meanwhile, the installed generating capacity of the MEPE  reached 1,172 megawatts (mw) at the end of 2000.
According to the MEPE, since 1988, Myanmar's electric power  installed generating capacity has increased by 509 mw, of which  that of natural gas power plants rose by 255 mw, while that of  steam power ones by 143 mw and that of hydropower ones by 111 mw.
Myanmar is implementing five more hydropower plants --  Paunglaung, Zaungtu, Mone, Thaphanseik and Maipan. Three of them  are being built by China.
Upon their completion, the five power plants will add 407 mw  to Myanmar's installed generating capacity and is expected to  greatly ease the serious electricity shortage problem of the  country.
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Myanmar's Bilateral Trade With ASEAN Members Up in 2000
2001.04.19 10:04:03 
 
YANGON, April 19 (Xinhuanet) -- Myanmar's bilateral trade with  five other member countries of the Association of Southeast Asian  Nations (ASEAN) -- Singapore, Thailand, Malaysia, Indonesia and  the Philippines -- totaled 1.651 billion U.S. dollars in 2000, up  8.76 percent from 1999.
According to the latest figures published by the country's  Central Statistical Organization, trade with the five countries  accounted for 40.4 percent of Myanmar's total foreign trade during the year with its import from these ASEAN members amounting to 1. 243 billion dollars, while its export to them valued at 408  million dollars.
Of Myanmar's bilateral trade with these ASEAN member states  during 2000, that with Singapore accounted for the highest volume  with 756.96 million dollars or 18.5 percent of the country's total foreign trade, followed by that with Thailand, 534.41 million  dollars or 13 percent, that with Malaysia 242.39 million dollars  or 5.93 percent and that with Indonesia 114.26 million dollars or  2.79 percent.
However, import from the Philippines was nil, and the export to that country was worth only 3.85 million dollars. 
In 2000, Myanmar's total foreign trade, including the border  trade, totaled 4.086 billion dollars, of which imports were valued at 2.567 billion dollars, while exports amounted to 1.519 billion  dollars. The trade deficit stood at 1.048 billion dollars.
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Myanmar Draws 7.3 Bln Dollars' Foreign Investment in 13 Years
2001.04.19 10:05:33 
 
YANGON, April 19 (Xinhuanet) -- Contracted foreign investment in  Myanmar totaled 7.312 billion U.S. dollars in 345 projects as of  the end of 2000 since the country opened to such investment in  late 1988, according to the latest figures issued by the country's Central Statistical Organization.
Of the leading foreign investors, Singapore ranked first with 1. 504 billion dollars, followed by Britain with 1.401 billion  dollars and Thailand with 1.264 billion dollars.
Other investors are successively Malaysia, United States,  France, Netherlands, Indonesia, Japan, Hong Kong Special  Administrative Region (SAR), China, Philippines, Republic of Korea, Austria, Australia, Canada, Panama, Germany, Denmark, Cyprus,  India Macao SAR, Bangladesh, Israel and Sri Lanka.
Of the 10 sectors into which the foreign investment was  injected, oil and gas stood atop with 2.355 billion dollars,  followed by manufacturing with 1.552 billion dollars and hotels  and tourism with 1.054 billion dollars.
After the outbreak of the Asian financial crisis in mid-1997,  Myanmar's foreign investment fell year by year.
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Myanmar to Establish ICT Park
2001.04.19 10:58:08 
 
YANGON, April 19 (Xinhuanet) -- Myanmar is planning to establish  an information and communications technology (ICT) park, aimed at  paving way for the country's youths to enter the field of computer science, widening the future information technology (IT) field and accelerating its functions.
According to sources at the Myanmar Computer Science  Development Council, arrangements are also being made to set up a  telecommunication data center in the ICT park.
The ICT park to be set up will render much assistance to the  country to partake in the globally developing software program  with the available human resources, Chairman of the council,  Lieutenant General Khin Nyunt, said at a function here Thursday.
Myanmar has been striving for the development of the ICT,  working out strategies and policies to meet the challenges arising in this knowledge and participate in the global competition.
Accordingly, the Myanmar government is giving encouragement and incentive to investment in the field by private sector, especially in education and human resources development for the IT.
In order to create a favorable environment to facilitate  cooperation with other countries, the government synchronized its  IT principles and codes, enacted necessary laws and standardized  criteria.
In cooperation with fellow members of the Association of  Southeast Asian Nations (ASEAN), Myanmar joined in signing the  Electronic(e)-ASEAN Framework Agreement in November 2000, pledging to implement the e-ASEAN initiative to strive for providing access to the country's 50 million people having a tele-density of 0.53  per 100 people.  
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Myanmar Rejects U.N. Resolution on Human Rights
2001.04.19 20:34:44 
 
YANGON, April 19 (Xinhuanet) -- The Myanmar government Thursday  rejected a resolution adopted on Wednesday by the U.N. Human  Rights Commission on the country's human rights situation, calling the resolution far from being objective, impartial or fair.
"Even the reflection in the resolution of the positive and  encouraging developments in the country is offset in the later  part of the resolution by accentuating the unfounded allegations  of human rights emanating from those elements who are bent on  tarnishing the image of the government," the Myanmar Foreign  Ministry blamed in a press release here Thursday.
The press release also charged that the resolution is  politically motivated and aimed at exerting continued pressure on  the Myanmar government, which it said is a misplaced policy that  will in no way contribute to the promotion and protection on human rights.
Charging that the resolution is derogatory, unfair and partial, still retaining many negative elements representing a policy of  strong-armed tactics by a clearly biased group of countries,  Myanmar has decided to dissociate itself from the resolution  having no other alternative, the press release said.
It warned that the continued pursuit of this policy will not  serve any useful purpose, pledging that the Myanmar government  will unswervingly continue its efforts to improve the life of the  Myanmar people.
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Neue Zürcher Zeitung - April 19, 2001.
Is Burma Overcoming Its Political Stalemate?
Dialogue between the Junta and Aung San Suu Kyi
Urs Morf
 
A recent visit to Burma by a UN human rights reporter is the latest link in a chain of events which seems to indicate some political movement within the country's military dictatorship. The ruling junta and opposition leader Suu Kyi have resumed a dialogue, though no one can say whether it will ultimately lead to the generals' relinquishing power.
 
Last week, Paulo Sergio Pinheiro, the UN's human rights reporter for Burma, was allowed a three-day visit to that country, which has been ruled by a military dictatorship since 1962 and remains largely isolated from the rest of the world. After the visit, Pinheiro reported on his exploratory tour to the UN Human Rights Commission in Geneva. He noted that he had been treated correctly and with distinct courtesy by the junta, which now calls itself the "State Peace and Development Council" (SPDC). His hosts permitted him to conduct whatever talks he wished, both with members of the ruling elite and with representatives of the opposition camp. The UN emissary also met with Nobel Peace Prize winner Aung San Suu Kyi, the charismatic opposition leader who, since her National League for Democracy (NLD) won a landslide victory in 1990 elections, has spent more time under government-ordered house arrest than she has in freedom. To this day, Burma's ruling generals still refuse to permit her and her party to form a government and to hand over power to it. Without going into detail about his talks, Pinheiro stated that representatives of both sides had expressed "cautious optimism" that the 11-year-old political stalemate may soon be broken.
 
The Junta Shifts Course
Actually, the mere fact that the Burmese junta permitted the Brazilian political science professor to enter the country was noteworthy in itself. Pinheiro was named UN human rights reporter last December. His predecessor, Rajsoomer Lallah, a former high judge from Mauritius, had not been allowed into Burma even once during his entire tenure, which ran from 1996 until his resignation last autumn. Consequently, in composing his reports on the human rights situation in Burma, Lallah had had to rely entirely on information from exiled dissidents and from Burmese refugees living in neighboring Thailand. Among the things he regularly listed as the most widespread human rights violations in Burma were: systematic extortion, rape, torture, exploitation, and summary execution of family members, especially of Burma's numerous ethnic minorities. Just as regularly, Burma's junta rejected the reports as lies and anti-Burmese propaganda, with no bearing on the reality of life in that country.
Perhaps the regime has finally taken note of the fact that its denials were given far less credibility by world opinion than were the Lallah Reports, which seriously damaged Burma's prestige abroad. In any event, Pinheiro's visit is the latest link in a whole chain of events indicating that there has been some movement in Burma lately. At the least, there has been some slight softening in the junta's previously very tough stance toward the opposition and toward foreign critics.
 
In part, that softening goes back to a clever move on the part of UN Secretary-General Kofi Annan. A year ago, Annan appointed Razali Ismail, a Malaysian career diplomat, to be the UN's special emissary for Burma. Malaysia is the country which, in 1997, pushed hardest for Burma's acceptance as a member of the Association of South-East Asian Nations. Aside from commercial considerations, what admittedly prompted Malaysia's Prime Minister Mahathir to take that stand was largely his traditional anti-Western attitude. He wanted to prove that an "Asian" and "non-confrontational" approach would do more for the economic and political reintegration of a long-isolated Burma than the sanctions policy of "western neocolonialists and preachers of democracy."
 
Initial Success of the "Asian" Approach
Developments in recent months appear to prove Mahathir right, at least so far. Special UN Emissary Razali has not only been officially received on three visits to Burma's capital of Rangoon, he has achieved at least one major breakthrough: thanks to his mediation, there has been a resumption of the direct dialogue between the ruling generals and opposition leader Suu Kyi, which had been broken off in 1995. Suu Kyi's partner in the talks is General Khin Nyunt, the number-three man in Burma's power hierarchy, who is seen as the head of the junta's "enlightened" faction which is working toward a modernization of the country and a gradual easing of the regime. The first round of talks mediated by Razali came last October, only one month after the opposition leader's attempts to leave the capital by car and train in order to visit her supporters in the provinces had so infuriated the generals that they again placed her under house arrest and jailed numerous NLD members.
Suu Kyi's first talks with General Khin apparently initiated a kind of thaw. In January, the junta received an official EU delegation for the first time in years, and at the same time the Burmese media suddenly halted their almost daily, personally insulting polemics against Suu Kyi. In late January, 85 members of the NLD were released from prison. In February, General Khin received the head of the U.S. State Department's East Asia desk and allowed that gentleman to also meet with the opposition leader. In late March, in honor of Army Day, which more or less serves as Burma's national holiday, another 16 NLD members were set free. Above all, talks between Suu Kyi and the generals have continued; according to people close to her, she has already had six visits from General Khin.
 
What keeps foreign diplomats in Rangoon and Burma specialists in Thailand wondering is the still-unanswered question of what those talks have been about, as well as why the generals have been so willing to resume the dialogue. After all, despite the years of Western economic sanctions, they still appear to be firmly in the saddle, and thanks to the ruthless exploitation of their privileges and the country's natural resources, at least some of them enjoy a conspicuously luxurious standard of living - even as the majority of Burma's people are increasingly impoverished by economic mismanagement.
 
No Western Aid without Dialogue
Some observers believe that at least a few of the junta members want to continue modernizing the country and have reached the conclusion that its enormous backwardness cannot be overcome on its own or just with the aid of neighboring Asian countries. A bit of cynicism may be involved as well: The holdings of the individual generals would probably yield still greater profits under the influence of a wave of Western aid money and direct investments, and the regime has to hold a dialogue with Suu Kyi in order to get rid of American and European sanctions.
Prior to the resumption of talks, a better understanding of the objective situation was obviously needed on the other side as well. According to observers, opposition leader Suu Kyi has also taken a marked turn away from her previous strategy. That strategy consisted mainly of keeping up the pressure on the generals through actions aimed at appealing primarily to public sympathy abroad - well-deserved sympathy, be it noted - in the belief that the junta would thus be forced to its knees sooner or later. More recently, however, Suu Kyi seems to have realized that her first task, in order to achieve her long-term goal, is to overcome her growing domestic political isolation. At present, she is obviously deliberately refraining from anything which the junta could interpret as provocation. According to those close to her, on a number of occasions she has even asked foreign emissaries not to visit her any more while she is under house arrest. Moreover, from all foreign visitors she has requested absolute discretion regarding the contents of her talks with the generals, in order not to endanger their continuation.
 
Retreat or Another Freeze?
This policy of secrecy has been successful so far. Considering the circumstances, it may also be justified. But it makes it virtually impossible for outsiders to gauge the content of the dialogue or the chances that Burma may one day evolve into a democracy. At any rate, despite several months of continuing thaw, most observers still consider it inconceivable that, after years of tenaciously clinging to power and privilege, the generals could suddenly be persuaded to relinquish them purely through dialogue. Nor can it be ruled out that the current thaw will be followed by another freeze in the event that the upper hand is again won by the junta's hardline faction, for whom the thoroughly comfortable status quo is much to be preferred over any experimentation with the "good will" of the West and the domestic opposition.
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