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Burma Related News - May 14, 2001.



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BURMA RELATED NEWS - May 14, 2001.
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HEADLINES
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AP - Myanmar Demands Thai Troops Vacate Border Outposts
AFP - Thai-Myanmar relations normalise ahead of Thaksin visit to Yangon
AFP - Trafficking of women and children on the rise in East Asia: UNICEF
AFP - China-North Korea set to confront US on missile defence at ASEAN forum
Reuters - Myanmar to help Thailand fight drugs-Thai minister
Reuters - U.N. poll finds Asian youth ignorant about HIV/AIDS
IHT - Burma's Junta 
IHT - U.S. Sanctions Against Burma 
The Star - Myanmar rich in natural resources
The Nation - Burma claims Thai army set up outposts on its soil
The Nation - Rangoon agrees to cool it
The Nation - Ten reasons for Thaksin to skip Burma trip
Bkk Post - Thaksin to sign drug-war memo
Bkk Post - Junta approved attack on Wa insurgents
Bkk Post - What to do with Burma?
Xinhuanet - Thailand, Myanmar to Sign Anti-drug (MOU)
SCMP - Action, not words, needed to stem flow from Burma 
SCMP - Islands net $546m private investment for fishing port 
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Monday May 14, 2:57 PM
Myanmar Demands Thai Troops Vacate Border Outposts
BANGKOK (AP)--Myanmar has asked Thai troops to withdraw from 35 border outposts that it said were erected on its soil, and threatened to use force to reclaim the land, officials said Monday.
But Thailand told Myanmar that its troops were on Thai soil and would not withdraw, Maj. Gen. Somboonkiat Sitthidecha, the deputy commander of the Third Army in northern Thailand, told reporters.
 
The saber rattling is expected to further raise tensions between the two neighbors whose relations have sunk to their lowest point in years after a series of border skirmishes. Their disputes are over border demarcation, activities of ethnic guerrillas and drug smuggling.
 
Somboonkiat said that the Myanmar border committee sent a protest letter to its Thai counterpart, claiming that at least 35 Thai border outposts had encroached into Myanmar territory.
 
"But it is not true, and we will not pull out as they demand," Somboonkiat said.
 
He said that the Myanmar letter warned that if Thailand didn't withdraw, it would use force to reclaim the territory.
 
The outposts are along more than 160 kilometers of the border between the Chiangmai and Chiangrai provinces.
 
Meanwhile, Defense Minister Chavalit Yongchaiyudh told reporters Monday that Thailand will try to resolve its border problems diplomatically "in order to preserve good relations."
 
But "whenever there is violation of sovereignty, the army will use extensive force to settle the problem," Chavalit said, after chairing a special meeting of the National Security Council.
 
The comments were apparently aimed at dispelling recent speculation in the local media that Chavalit doesn't see eye to eye with the army, which advocates a hard-line stand.
 
Chavalit, who is known to be friends with the generals in Myanmar's military junta, has preferred more restraint on the border issue.

Monday May 14, 3:04 PM
Thai-Myanmar relations normalise ahead of Thaksin visit to Yangon
BANGKOK, May 14 (AFP) - Relations between Thailand and Myanmar are back on track after a bitter row in which Bangkok and Yangon accused each other of involvement in the international drugs trade, Thai Defence Minister Chavalit Yongchaiyudh said Monday.
 
Chavalit said a high level visit to Yangon by Thai officials had paved the way for a long-delayed visit to Yangon by Prime Minister Thaksin Shinawatra at a date yet to be agreed on by both sides.
 
"The talks between Thailand and Myanmar went well. The situation is back to normal to a level that the prime minister can visit there," he told reporters.
 
"The foreign ministry has yet to finalise the date (for the visit). There may be further disagreements but we will solve them by negotiation."
 
Officials said Thaksin would likely visit Yangon later this month or early in June to sign a bilateral cooperation agreement on curbing the international trade in illicit narcotics, namely heroin, opium and amphetamines.
 
That visit will take place after a scheduled visit to Bangkok by Myanmar's Foreign Minister Win Aung later this month.
 
Accusations over illicit drugs and skirmishing among ethnic militias along the rugged border touched off a bitter row between the countries, which are historical enemies.
 
In February, fighting between an ethnic Wa force with close ties to Yangon and the rival Shan State Army, which reputedly has the backing of the Thai military, prompted the first clash in years between the two national armies.
 
Since then, the uneasy neighbors have traded barbs over who is responsible for heroin and methamphetamine factories that flourish along the ill-defined mountainous border.
 
In the latest dispute, Myanmar's junta and United Wa State Armyofficials say a Thai F-16 fighter jet fired two rockets near the Myanmar town of Mong Yawn last week, wounding several of their troops.
 
Thailand says the jet was flying surveillance and triggered a sonic boom.
 
Ministers from six Asian nations signed an agreement to boost cooperation in stamping out the regional narcotics trade in Yangon last week.
 
Following two days of meetings between senior officials from Cambodia, China, Laos, Myanmar, Thailand and Vietnam, the ministers approved UN plans to restrict the flow of drug ingredients and launch programs in vulnerable neighboring countries.
 
The ministers meet every two years to evaluate the progress of cross-border anti-narcotics projects and approve new initiatives devised by the United Nations Drugs Control Programme.
 
Collectively they were responsible for more than 75 percent of the world's amphetamine seizures last year, up from 22 percent a decade ago, with China and Myanmar the major culprits.
 
Myanmar and Afghanistan produce the bulk of the world's heroin which is made from opium.

Monday May 14, 6:40 PM
Trafficking of women and children on the rise in East Asia: UNICEF
BEIJING, May 14 (AFP) - Hundreds of thousands of women and children in the East Asia and Pacific region are being trafficked, frequently kidnapped and sold to the highest bidder, said a UNICEF report released Monday.
 
Many victims are forced to work as prostitutes while others are sold to sweatshops or forced to join begging gangs, said the report, which studied the welfare of children in the region in the past decade.
 
The UN Children's Fund (UNICEF) report said the full scale of the problem was difficult to assess.
 
But the International Organisation for Migration (IOM) estimates up to 300,000 women and children are trapped in "slavery-like" conditions in the Mekong Delta region comprising Cambodia, Laos, Myanmar, Thailand, Vietnam and the two southern Chinese provinces of Yunnan and Guangxi.
 
It is also believed that in recent decades more than 250,000 women and children have been victims of trafficking within China alone, said the report presented at a UNICEF-sponsored conference in Beijing.
 
Some of the most serious problems have appeared in the Mekong sub-region, according to the report "Every Last Child."
 
Thailand is the main destination with traffickers luring girls there from Myanmar, Laos, Cambodia and the southern provinces of China.
 
Thailand has some 16,000 foreign prostitutes, of whom a significant proportion are trafficked and about one-third are under 18, said UNICEF, citing 1998 data.
 
Most victims will get no further than Thai brothels, but Thailand has also become a regional hub through which people are diverted to Malaysia, Hong Kong, Taiwan and Japan.
 
More children are trafficked within their own countries than across international borders, the report said.
 
In Thailand, many are moved from the north to south and Vietnam has similar routes, said UNICEF.
 
The largest internal trafficking flows are within China, where the main sources are the provinces of Sichuan, Guizhou and Hubei, the report said.
 
The victims are usually the rural poor and often from ethnic minorities.
 
"Relatively isolated and less alert to the dangers, they are vulnerable to deception," said the report.
 
The majority of child victims in the Mekong sub-region are girls aged 13 to 17. In China, however, two-thirds of the children trafficked are young boys under seven years old who are sold to families that have a traditional preference for sons.
 
In the southern Chinese province of Guangdong last year, police broke up a 20-member trafficking ring that was luring children into vans with sweets and toys and then selling them for up to 1,200 dollars each.
 
Quite often, trafficking involves intermediaries, typically women who are known to the family or the community. Many former sex workers are sent to their home villages to draw other women or children into the same trade, said the report.
 
As well as making promises about employment or even education, the traffickers will also pay the family an "advance" on earnings, which exerts a strong hold on the child.
 
In cases where the victims are destined for developed countries with tighter border controls, trafficking is managed by sophisticated criminal gangs, said UNICEF.
 
In the Philippines, for example, traffickers posing as talent agencies recruit women who want to go to Japan as "entertainers" and may even give them training as singers or dancers, along with fake passports.
 
Once in Japan, the women are met by "maintainers," frequently Yakuza gang members who often rape them before taking them to brothels or nightclubs.
 
Corrupt officials within the police, military or border patrol departments are also involved, offering traffickers protection in return for a share of the profits, said the report.

Monday May 14, 6:48 PM
China-North Korea set to confront US on missile defence at ASEAN forum
HANOI, May 14 (AFP) - China and North Korea were expected to confront the United States over its planned missile defence system when officials meet here for an ASEAN Regional Forum this week, diplomats said Monday.
 
"The issues cover a vast area and any country can raise any issue. I think China and North Korea will raise the missile defence and of course other countries will raise it too," one diplomatic source told AFP.
 
US President George W. Bush has launched a coordinated offensive and despatched several US teams to capitals around the globe to drum up support for the National Missile Defence (NMD) programme.
 
James Kelly, Assistant Secretary of State for East Asia and Pacific Affairs, is leading a team touring Asia. His delegation is due to arrive here for the ASEAN meeting late Wednesday after leaving Beijing. The North Koreans were expected to arrive late Tuesday, a Vietnamese source said.
 
China is among the strongest opponents of NMD saying it violates the Anti-Ballistic Missile (ABM) treaty signed by the former Soviet Union and the US in 1972, which forbids the development of missile defence systems.
 
Washington says NMD is aimed at protecting the US and its allies from rogue states such as North Korea and Iraq.
 
"It won't surprise me. I'm expecting the Chinese and the North Koreans to raise the missile issue," another western diplomatic source said.
 
Sources also said there were no plans for a trilateral meeting between North Korea, the US and South Korea at the forum, although one diplomat added "a brief chat" was possible.
 
"As of now there are no plans for a meeting," the source told AFP. "It could be theoretically possible but there are no such plans."
 
Speculation had risen that the first talks between North Korea and the US since the election of George W. Bush to the White House could take place on the sidelines of the gathering.
 
All three sides will be in Hanoi for the May 15-19 meeting and the diplomatic source confirmed Pyongyang will send a three-member delegation, headed by Ri Yong-ho from North Korea's foreign ministry.
 
"I think that (speculation of a trilateral meeting) is the product of an over-active imagination," the diplomatic source said.
 
Rapprochement talks between North and South Korea have stalled since the Bush administration took power and announced a review of its policy towards Pyongyang.
 
The previous administration of Bill Clinton had sought to back Seoul's efforts to prise Pyongyang out of its shell and achieve a reconciliation on the Korean peninsula.
 
But the US policy review was seen as signalling a shift in stance towards the communist state, with the new administration making no secret of its distaste for the regime led by Kim Jong-Il.
 
However, US Deputy Secretary of State Richard Armitage said last week the review was nearly complete, sparking some hope of rejuvenating South Korea's "Sunshine Policy".
 
"I suspect that we will (be talking with the North) in the near future," Armitage said.
 
The Association of Southeast Asian Nations (ASEAN) groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The ASEAN Regional Forum encompasses 23 ASEAN and outside countries.

Sunday May 13, 4:08 PM
Myanmar to help Thailand fight drugs-Thai minister
BANGKOK, May 13 (Reuters) - Thailand said on Sunday that the relationship with Myanmar remained good and the neighbouring country would cooperate closely with Thailand to fight drug production and trafficking.
 
"The relationship between Thailand and Myanmar is still good, there are no problems between us," Thammarak Isarangura, a Thai minister at the Prime Minister's Office told reporters upon his return from Yangon.
 
The Thai minister held a meeting on Friday with Khin Nyunt, the powerful Secretary One of Myanmar's ruling State Peace and Development Council government.
 
Following the meeting, held on the sidelines of the United Nations-sponsored drug conference, the two countries have agreed to hold a joint-committee meeting to discuss ways to solve the drugs problem, Thammarak said.
 
"Myanmar informed us in the meeting that they would cooperate closely with Thailand to help solve the drug problems," said Thammarak.
 
The meeting date has yet to be set, however.
 
Thailand would also seek meetings with China for the same purpose, the Thai minister said. He did not elaborate further.
 
Thailand has been urging Myanmar's military government to help stem an estimated 700 million methamphetamine tablets flooding across the border from Myanmar every year.
 
"About the conflicts between the two countries at the borders, Thailand and Myanmar will hold as many meetings as possible between the two countries to solve the problems," said Thammarak.
 
Bilateral relations between Thailand and Myanmar are at their lowest ebb in years following cross-border shelling over two months ago.
 
The relations worsened when military-ruled Myanmar said on Friday that two Thai F-16 jet fighters separately fired rockets inside Myanmar, wounded six people and killed three head of cattle.
 
Bangkok has denied the accusation, saying Yangon appeared to have mistaken a routine air exercise on Thursday for an air raid.

Monday May 14, 5:15 PM
U.N. poll finds Asian youth ignorant about HIV/AIDS
 
BEIJING (Reuters) - Young people in East Asia and the Pacific are "woefully unprepared" to deal with HIV/AIDS, which is expected to spread dramatically in the region, the United Nations Children's Fund (UNICEF) said on Monday.
 
A UNICEF poll of youths aged 9-17 in 17 Asia-Pacific countries or regions found alarming ignorance about HIV/AIDS and its causes, the agency said in a statement issued in Beijing at a regional ministerial conference.
 
"The results of this survey should serve as a wake-up call to the governments and societies in this region on how much more needs to be done to educate young people, especially about HIV and AIDS," Mehr Khan, UNICEF East Asia and Pacific regional director, said in the statement.
 
"If this region is to avoid the fate of sub-Saharan Africa, where the spread of the epidemic has been truly catastrophic, we need decisive and urgent action," he said.
 
The survey of 10,000 children and adolescents UNICEF said were a representative sample of 300 million East Asian and Pacific people in the 9-17 age group found strong optimism about the future coupled with ignorance about HIV/AIDS, it said.
 
Sixty percent of those 9-13 years old and 25 percent of the 14-17 age group said they knew "absolutely nothing" or "only the name" of HIV/AIDS, UNICEF said.
 
Of the 14-17 year olds, 68 percent identified unprotected sexual intercourse as a major route of HIV/AIDS infection, but only 41 percent said they knew what a condom was, it said.
 
UNICEF said the survey results indicated that 33 million teenagers in East Asia and the Pacific lacked basic knowledge about the disease. Some 2.4 million people are infected in the region, it said.
 
HIV or human immunodeficiency virus can lead to the fatal disease AIDS, or acquired immune deficiency syndrome.
 
UNICEF said the level of awareness about HIV/AIDS was lowest in East Timor, Laos, Indonesia, the Philippines, Mongolia, China and South Korea.
 
Other countries and territories whose youth were surveyed were Australia, Cambodia, Hong Kong, Macau, Malaysia, Myanmar, Papua New Guinea, Singapore, Thailand and Vietnam.
 
The survey result was presented at the start of the Fifth Ministerial Consultation in East Asia and the Pacific on Shaping the Future for Children, a three-day meeting of U.N. and government officials, aid donors and non-governmental organisations.

The International Herald Tribune
Monday, May 14, 2001
Burma's Junta 

A few months ago it looked as if the military junta in Burma might ease its repressive rule slightly. The regime was talking with the country's courageous pro-democracy leader, Daw Aung San Suu Kyi, and there even seemed to be a possibility that she would be liberated from the prolonged house arrest the government has enforced. But those hopes have all but vanished. If the Bush administration means to speak out against human rights abuses abroad and pressure governments to treat their citizens humanely, Burma would be a fine place to start.
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The military leaders of Burma are among the world's cruelest violators of human rights. The junta has tortured and executed political opponents, exploited forced labor and condoned a burgeoning traffic in heroin and amphetamines. In the clearest indication that the regime has little intention of reforming, the special United Nations envoy who acted as a catalyst for the talks between the government and Daw Aung San Suu Kyi has been denied permission to visit the country since January. Also, an anticipated release of political prisoners has failed to materialize, as has a pledge by the junta that Daw Aung San Suu Kyi's party, the National League for Democracy, would be allowed to resume activity.
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This year the junta released 120 mostly youthful members of the party who had been imprisoned the previous year, but it is still believed to be holding as many as 1,700 political prisoners, including 35 people who were elected to Parliament in 1990. Daw Aung San Suu Kyi's party won more than three-quarters of the seats in that election, but the junta annulled the results.
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The United States and the European Union have cooperated to isolate Burma, and in 1997 the Clinton administration banned new U.S. investments there. But some Asian countries have been reluctant to join in sanctions. China, in particular, has helped sustain the junta with military aid. Regrettably, last month Japan broke ranks with a Western-led 12-year ban on nonhumanitarian assistance to Burma by approving a $29 million grant for a hydroelectric dam.
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Last year the International Labor Organization, responding to concerns about forced labor, voted to urge governments and international donors to impose further sanctions on Burma. Washington should consider a ban on imports from that nation, including textiles. Burma is rapidly increasing apparel exports to the United States. Daw Aung San Suu Kyi's allies have argued that the hard currency earnings primarily benefit the military, not the laborers who make the garments. Washington should certainly be using its influence with Japan and other Asian countries to deter any further nonhumanitarian assistance.

The International Herald Tribune
Monday, May 14, 2001
OTHER COMMENT U.S. Sanctions Against Burma 

In a letter last month to President George W. Bush, 35 U.S. senators made a strong case for maintaining sanctions against Burma, noting that "the sanctions have been partially responsible for prompting the regime to engage in political dialogue with Aung San Suu Kyi and her supporters." The letter also said there was "strong evidence directly linking members of the regime" to the trafficking of "the heroin which plagues our communities."
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Mr. Bush should insist that the junta take measurable steps toward the retrieval of democracy in Burma, and not merely for altruistic reasons. Next to the regime in North Korea, the Burmese junta has been Beijing's chummiest ally, permitting China to project its burgeoning power into the Bay of Bengal, to the dismay of India.
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Were a democratic government to replace the junta, neighboring Thailand, suffering from an influx of drugs from Burma, would join India and the rest of the region in breathing a sigh of relief.

The Star - May 14, 2001.
Myanmar rich in natural resources
By Joseph Raj in Myanmar
 
MYANMAR is inviting foreign investors to help the country and its people utilise effectively its rich natural resources.
 
Government spokesman Lt Col Hla Min proudly announced during a briefing for Malaysian journalists last month:"You name it, we have it.".
 
And this is no exaggeration. Myanmar, which has the biggest land mass in mainland South-East Asia--it is about twice the size of Malaysia--is blessed with minerals like high-grade rubies, jades and sapphires; oil and gas; teak forests and fertile agricultural soil. Its many rivers also present rich pickings for irrigation and hydro-electric power.
 
But what it lacks is foreign investments to maximise these resources--the country sorely lacks the technology and financing to fully tap them.
 
Mandalay-based chairman of Hi-Tech Forest Industries Co Ltd U Aung Win Khaing, whose business interests vary from timber to banking and cement production, readily admits that high technology would take his timber business to a higher platform.
 
"Rather than just supplying raw wood to clients in Europe, the next step for me will be to venture into value-added products like furniture for exports.
 
"But to do so we need to produce knock-down furniture. This will require a high-level of precision as the furniture would have to be assembled in the importing countries.
 
"This is where the expertise of a country like Malaysia is needed. You have a mature hi-tech furniture industry," said Win Khaing, who now procures machinery via deferred payment schemes or pays for them with his products.
 
He added that part of the difficulty of doing business in Myanmar was the inavailability of funds.
 
"The banking system is a bit weak. Loans are still collateral-based and not on project financing. This means an investor would need to come in with hard cash," added Win Khaing.
 
Another factor that has worked against Myanmar, is fear among some that it would be "unsafe" to invest in the country despite it having adopted a free-market economy since 1988. A further worry is the possibility of policy changes that may completely alter the facet of investments.
 
The director of the Myanmar Investment Commission (MIC), Si Si Win, cited the Foreign Investment Law (FIL) as an example why such fears were unfounded.
 
The FIL forms the backbone of Myanmar's economic policy. Its main focus is to attract foreign direct investment and encourage private sector development. The MIC, which was formed to oversee and administer the FIL, acts as the initial approving authority for investment proposals.
 
"The FIL was promulgated in 1988 and has been in force since then. This is proof that we are consistent with our economic policies," she said.
 
Under the FIL, the Myanmar government also guarantees that a business set up under a permit issued by the MIC would not be nationalised during the term of a contract or during an extended term.
 
As further proof of investor-confidence, Si Si Win said the country had from 1988 to March 2001, attracted foreign investment to the tune of US$7.4bil.
 
"More than 50% of this is from Asean nations, with Singapore being the biggest investor, followed by Britain, Thailand, Malaysia, the United States and France.
 
"Our priority for investments is resource-based industries--both natural and human (Myanmar has an active labour force of 18.72 million)--and also those to improve infrastructure. But we also welcome investments in other sectors," said Si Si Win.
 
Malaysia's ambassador to Myanmar, Datuk Mohammad Noh, felt the time is ripe for Malaysian businessman to venture into Myanmar.
 
"Malaysian businessman should park themselves here ... they should come in before the big boys do. They can start small, grow and be ready to expand when the time comes," said Mohammad.
 
He, however, stressed that doing business in Myanmar required some perseverance. "A lot of emphasis is placed on personal relationship," said Mohamad.
 
Win Khaing said it would be better to "work step-by-step and grow.
 
"Our government is very cautious. It does not want the country to grow too big too fast and face all the consequences of such accelerated growth, especially the adverse effects it may have on the people. So, it is better for us to grow slowly and steadily," he said.
 
This also looks to be a good success recipe for potential investors--Malaysian-based company Mamee Double-Decker first tested waters by exporting its noodles to Myanmar.
 
"We wanted to get the locals to know about Mamee noodles first. Once we discovered there was a market for it in Myanmar, we decided to set up a factory," said the general Manager of Myanmar Mamee-Double Decker Ltd Chew Chin Teck.
 
The factory was set up in the Pyin Ma Bin industrial area in Yangon with an initial capital of US$5mil. Now, the investment is reaping rich dividends. Mamee noodles' product tag line Khaung Mha Khaung (tasty and delicious) has become a popular jingle in Myanmar and the company also looks set to take over the top spot from closest competitor, Thailand's Yum Yum, by the end of the year.
 
Chew, who hailed praises on his 130 workers, said the productivity rate at his factory exceeded that of Mamee's factory in Malacca.
 
"Our target has been to register a growth rate of 60% every year. So far we have been able to achieve it. The locals are not only conscientious workers but also easy to train," said Chew, who added his production staff earn about RM70 a month.
 
The FIL also has a few carrots of its own, besides inexpensive labour, to entice investors, including a tax holiday for three consecutive years beginning from the year of commencing operation.
 
The MIC's Si Si Win said further tax exemption or relief may also be granted if a particular investment was considered beneficial for Myanmar.
 
"Foreign investors can also import machinery, construction material, equipment, instruments, machinery components, spare parts and materials used in their business duty-free.
 
"There will also be customs duty and tax exemptions on raw materials imported for the first three years of commercial production," said Si Si Win, who added that applications for investments would be processed within six weeks by the MIC.
 
Ambassador Mohammad said among the areas that Malaysians could venture into in Myanmar was the agriculture sector.
 
"They are encouraged to go into maize cultivation and palm oil plantations. There are also vast opportunities in the mining and manufacturing industries and tourism," said Mohammad.
 
Win Khaing suggested that Malaysians could also consider taking up infrastructure projects.
 
"As a matter of fact, we have an urgent need for more cement to cater for the various infrastructure development projects being undertaken by the government.
 
"There are eight cement factories in Myanmar now with an annual production capacity of about 600,000 tonnes, leaving a shortage of 2.4 million tonnes," said Win Khaing.
 
Whatever industry or sector Malaysians may want to look at, as Mohammad says, there are abundant opportunities for doing business at Suvanna Bhumi (Golden Earth).
 
"Malaysians must take advantage of our country's current good relationship with Myanmar. Myanmar is really looking forward to Malaysian participation in its economy.
 
"Malaysian businessman should come and study the investment climate in Myanmar ... and to establish and get to know their contacts.
 
"But they must come now. If they only decide to do so after the economy is fully opened up, it will be too late," said Mohammad.

Burma claims Thai army set up outposts on its soil
 
CHIANG MAI, May 14 (The Nation) -- Burma on Monday demanded the withdrawal of Third Army troops from 35 border outposts, which it claimed had been set up either on its territory or in "buffer zones", and threatened to attack unless the Thai forces were pulled back.
 
Maj Gen Somboonkiat Sitthidecha, deputy commander of the Third Army, denied that the regional army had encroached upon Burmese soil as it reinforced military positions along the volatile border with Burma, stretching from Mae Ai-Chiang Dao-Fang districts.
 
"All 35 border outposts are located in Thai territory," Somboonkiat said. "We have no intention of pulling back."
 
The deputy regional army chief said Burma had sent a protested note, alleging that Thai troops had set up 26 outposts inside Burmese territory and nine others in "demilitarised zones".
 
Third Army sources said the regional army had put on standby several rapid-deployment units behind its border outposts which faced possible attack by Burmese troops.
 
Last week, the Third Army repelled scores of United Wa State Army guerrillas backed by Burmese army from a strategic hill in Fang district, which they had held for a week.

The Nation - May 14, 2001.
Rangoon agrees to cool it
 
Thailand and Burma have vowed to stop making public accusations against one another, and promised closer cooperation on drug eradication, said PM's Office Minister Thamarak Isarangura.
 
Speaking to reporters on his return from Rangoon, where he attended a three-day meeting organised by the United Nations Drug Control Programme, Thama-rak said both sides realised they needed to end the recent spate of finger pointing.
 
Burma's military government and the Thai Army have been engaged in a war of words following a cross-border shelling incident three months ago. Last Friday, Rangoon accused Thailand of violating its territorial integrity by allowing two Thai F-16 jet fighters to fire rockets inside Burma, wounding six people and killing three head of cattle. Bangkok denied the accusation.
 
During Foreign Minister Sura-kiart Sathirathai visit to Burma two weeks ago, members of the pro-Rangoon Democratic Karen Buddhist Army (DKBA) crossed into Thailand, attacking a village and killing three people, reportedly in retaliation for the confiscation of more than 13 million methamphetamine pills by Thai soldiers.
 
Third Army commander Lt- Gen Wattanachai Chaimuanwong suggested the DKBA was given the green light by Rangoon to try to humiliate Thailand. In a tit-for-tat response, Rangoon insisted the drugs belonged to the Thai Army.
 
Similar accusations from the militaries of both sides have been made on an almost weekly basis for the past three months, since the two sides traded mortar and artillery shells across the northern border in the Mae Sai-Tachilek border crossing area.Thamarak told a press conference yesterday the two countries had agreed to hold a joint meeting to look for ways to curb the illicit drugs trade.
 
Many Thai Army and government officials were doubtful the two sides could let bygones be bygones, however. The military units on the front lines had taken a firm stance towards Rangoon, while the government, whose members reportedly have close personal relations with the junta, appeared to be clueless, the officials said.

The Nation - May 14, 2001.
REGIONAL PERSEPCTIVE: Ten reasons for Thaksin to skip Burma trip
KAVI CHONGKITTAVORN
 
Before he became prime minister nine weeks ago, Thaksin said he would go to Burma, but the trip was then postponed owing to mounting problems between Thailand and its western neighbour. Now he is going ahead with the planned visit.
 
Why the rush? Here are 10 salient points he should think through before he leaves from Don Muang.
 
1. The Burmese leaders have never said even once they want to visit Bangkok to improve ties with Thailand. The Thai leaders think of going to Burma to help the troubled relationship as if they were the guilty party. By their nature, Thai-Burmese bilateral issues will take time to resolve. A visit by a Thai prime minister at this point in time could be very counter-productive. Foreign Minister Surakiart Sathirathai has visited Rangoon, and the situation has yet to improve. The battle of Hua Lone in Chiang Mai last week was a case in point.
 
2. Burma has yet to cooperate with Thailand over drugs and other serious border issues affecting Thailand. Burma rejected Thailand's longstanding proposal to set up a joint border-patrol force. A special envoy was dispatched to Rangoon last year to work out the joint project but was spurned by Burma. At the moment some of the permanent border checkpoints remain closed. There has been a lot of talk and empty promises.
 
3. In the wake of the break-up of Yugoslavia in the early 1990s, Thai policy-makers believed the unity of Burma was crucial to the security and stability of Thailand. They feared that if Burma became another Yugoslavia it would harm Thailand's security and destabilise the region. Therefore all efforts had to be expended to prevent any possible break-up of Burma. It was a period of uncertainty. Thai policy towards Burma was conducted on an ad-hoc basis without a long-term plan. At one point the security forces even compromised the country's sovereignty. There was an idee fixe that any deterioration of Burma's internal security would affect Thailand with an exodus of refugees and hordes of other problems.
 
4. However, in 1998 the Thai leaders, including the highest in the land, had a change of heart. They believed that their concern was somehow misplaced. They now realised that Burma's support of the United Wa State Army and its drug machinery was indeed the single most serious threat to Thailand's political, economic and social security. In the past few years Thailand has been wrestling with the problem. In other words, if the drug flow continues unabated, it could annihilate Thailand as a nation. It took all of five to seven years for the Thais leaders to become aware of this apocalyptic consequence what with the country going through political reforms.
 
5. In early 2000 His Majesty the King started a series of new projects at the village level in all provinces along the Thai-Burmese border to combat the drug trafficking by using successful development models from the North. This project is producing results. The prime minister should inform himself of the outcome of the project before he decides to go to Burma.
 
6. Burma has yet to retract the allegation made last year in the state-owned New Light of Myanmar that a member of the royal family was involved in drug trafficking. Thailand protested twice to the Burmese leaders. Former foreign minister Surin Pitsuwan met and raised this issue with the junta's Number-two leader Khin Kyunt at Don Muang last year when he was on his way to Japan and once again at the Asean summit in Singapore last November.
 
7. Burma has yet to improve its record on forced labour as recommended by the International Labour Organisation (ILO). Burma's political overtures in the past few weeks have been primarily aimed at diluting future support for ILO sanctions. Indeed Rangoon succeeded in convincing the Asean labour ministers' meeting in Kuala Lumpur last week to urge the ILO not to take further punitive action against Burma. Thailand, which was the only Asean member that skipped the ILO vote last year to punish Burma, went along with the group.
 
8. Third Army Region commander General Wattanachai Chaimuenwong must continue to do his job. If Thaksin goes to Rangoon now while Wattanachai is still on the border watching over security, it could be detrimental to the national interest. One has to keep in mind that since the fall of Ayutthaya 337 years ago no Thai army has stood up to Burma as courageously and firmly as Wattanachai is doing.
 
9. Thailand should go ahead with hefty scholarships for the Burmese students living in exile to prepare for the country's democratic future. Past scholarships and training for Burmese officials are now considered a waste.
 
10. Finally something somehow must be done about Defence Minister General Chavalit Yongchaiyudh. It was a national disgrace that one in his position should state publicly that the violation of sovereignty was not a serious matter. Unfortunately the junta leaders only respect those who use force and stand tall. The fact that Burmese strongman General Maung Aye specifically asked to see Wattanachai in Rangoon at the end of the regional border meeting recently shows that border incursions must be dealt with seriously by force, not through negotiation as Chavalit suggests.

Bangkok Post - May 14, 2001.
Thaksin to sign drug-war memo
Bilateral agreements expected in six areas
Wassana Nanuam
 
Thailand and Burma will sign a memorandum of understanding on drug suppression when Prime Minister Thaksin Shinawatra visits Rangoon later this month.
 
It will be the second such memo signed by Rangoon, which earlier signed an MoU on drugs with China, said Gen Thammarak Issarangkul na Ayutthaya, PM's Office minister.
 
The signing agreement follows a ministerial meeting on regional drug control co-operation which Gen Thammarak attended in Rangoon from May 9-11. Thailand, China, Burma, Laos, Vietnam and Cambodia sent representatives to the UN-sponsored meeting.
 
The meeting agreed co-operation on drug suppression would be direct instead of through the United Nations. This closer co-operation would be enabled by recognition of the addendum of partnership to be signed later.
 
In addition to assistance from the UN and other donors, the six partner countries would also contribute toward a drug suppression fund: Thailand and China would jointly pay US$10,000, Burma-Vietnam $5,000, and Cambodia-Laos $3,000.
 
Gen Thammarak said the six countries realised the threat posed by drugs on their doorstep and were looking for concrete steps to end it.
 
The meeting endorsed a three-point agreement-to impose controls on precursor chemicals, support drug control advocacy and capacity strengthening in the region, and draw up a partnership protocol on drug control.
 
Burma predicted a drastic reduction in drug production within its borders within seven years if precursor chemicals were regulated.
 
Gen Thammarak said understanding with Burma would be reached in six areas during Mr Thaksin's visit-the MoU signing, reaffirmation of a commitment to close bilateral relations, co-operation in regional drug suppression, Burma's pledge to increase drug eradication efforts, organising of a joint committee meeting between foreign ministers, and speedier co-ordination to resolve border disputes.
 
Burma had relocated an ethnic minority population formally residing near its border with China to an area near the Thai border with the aim of reducing poppy growing, he said.
 
They would be encouraged to grow substitution crops instead, under a project similar to that initiated by His Majesty the King.
 
Rangoon had criticised Thailand for portraying Mong Yawn as a permanent drug manufacturing bastion, Gen Thammarak said. This had caused the UN to suspend a $12 million aid fund to develop the township.
 
Representatives of countries attending the drug control co-operation meeting were taken on a tour to Mong Yawn, as Rangoon was determined to rebut the drug-production allegation, he said.
 
Gen Thammarak said the Burmese government had destroyed many drug production plants and seized 27 million methamphetamine pills, which were burnt during the meeting.
 
Rangoon asserted it had no policy to support manufacture of drugs by minority groups. It insisted the Red Wa, believed to be big-time drug traffickers, derived most of their income from longan farming and not from drugs.
 
Gen Thammarak said the Burmese leadership conceded some minority rebel movements were active in drug production and it was powerless to control them.
 
The production bases were small-scale. The process was carried out in small makeshift huts visible in aerial photos shown to delegates at the meeting, he said.

Bangkok Post - May 14, 2001.
Junta approved attack on Wa insurgents
No stray shells over the border warning
 
Burma gave Thailand the green light to attack Red Wa troops who had captured Hua Lone hill to protect their drug production facilities, Supreme Commander Gen Sampao Chusri said.
 
There was no conflict between the Thai and Burmese military over the border incident.
 
Rangoon approved Thailand's retaliation against the rebels, but advised that care be taken to ensure no stray shells landed in Burmese territory, Gen Sampao said.
 
A unit of the pro-Rangoon United Wa State Army last week captured Hua Lone hill, about 400m inside Thailand, but eventually retreated after heavy shelling by Thai artillery.
 
The Third Army reported the Red Wa had taken the hill to protect two large drug plants and its trafficking routes.
 
Gen Sampao said Thai troops were now in full control of the hill, but it would have to be cleared of landmines which the rebels had planted and left behind.
 
- Third Army commander Lt-Gen Wattanachai Chaimuenwong denied any conflict with Defence Minister Chavalit Yongchaiyudh over the Third Army's tough policy against the Red Wa.
 
Lt-Gen Wattanachai said the minister was not angry over his recent order for troops to attack the rebels. "There is no working problem or conflict between the minister and myself.
 
"Gen Chavalit understands the duties of soldiers guarding border areas," Lt-Gen Wattanachai said. The two men were on good terms.
 
Gen Chavalit and top military officers inspected Hua Lone hill and border areas in Chiang Mai province yesterday.
 
Sources said Lt-Gen Wattanachai had led subordinates in wishing Gen Chavalit an early happy birthday.
 
The defence minister's birthday is tomorrow.
 
Gen Chavalit also denied he had given clearance for the shipment of 44 containers carrying Chinese-made generators and construction materials to Burma last month.
 
The convoy was stopped by the Third Army at the border.
 
It was on its way to deliver the equipment to a coal-fired power plant under construction in Tachilek.

Bangkok Post - May 14, 2001.
What to do with Burma?
Editorial from Daily News
 
Are Thailand and Burma on talking terms? Violence erupted along the border in Chiang Mai last week when Thai troops tried to push Burmese and Wa soldiers out of Thailand. The battle raged for three days before the intruders abandoned a hilltop position.
 
When Thailand lodged a protest against the incursion, Burma claimed the intruders were not Burmese, but Wa soldiers who are not under its control.
 
Because the hilltop is in Thai territory, Thai soldiers must do their utmost to dispel intruders.
 
However, as the fighting raged on last week, Defence Minister Chavalit Yongchaiyudh took a soft stance towards Burma. He said the relationship between Thailand and Burma was still good and that both sides were on talking terms.
 
Don't take a negative view of the situation, Gen Chavalit said, adding that Thai soldiers fired warning shots when armed people intruded on to Thai territory.
 
The problem must be solved through peaceful negotiations, the defence minister emphasised. He also dismissed speculation that Burma was supporting the Wa soldiers who intruded into Thailand.
 
Burma is a difficult problem for Thailand. When Prime Minister Thaksin took office in February, he pledged to promote good relations with all neighbours of Thailand. He said some top people in the government had good connections with our neighbouring countries, particularly Burma.
 
His words were proven wrong a few weeks later. After a border clash in Chiang Rai, Burma closed its border checkpoint at Tachilek. And last week its troops overtook a hilltop position inside Thailand.
 
All this shows that Burma is not sincere towards Thailand. It has no qualms about invading the territory of its neighbour.

Thailand, Myanmar to Sign Anti-drug (MOU)
2001.05.14 17:58:34 
 
BANGKOK, May 14 (Xinhuanet) -- Thailand and Myanmar are expected  to sign a memorandum of understanding (MOU) on drug suppression  when Thai premier Thaksin Shinawatra visits Rangoon later this  month, according to local TV news reports Monday.
Thammarak Issarangkul na Ayutthaya, minister at the prime  minister's office, was quoted by the state-owned Channel 9 as  saying that it would be the second such memo signed by Myanmar,  which earlier signed an MOU on drugs with China.
The signing agreement followed a United Nations-sponsored  meeting on regional drug-control cooperation which Thailand, China, Myanmar, Laos, Vietnam and Laos attended between May 9 and 11 in  Rangoon.
The six countries have agreed at the meeting to strengthen  cooperation on drug suppression by signing partnership documents  and co-establishing an anti-drug fund.
Thammarak said Thailand and Myanmar would also forge other key  agreements during Thaksin's visit to Rangoon in addition to the  MOU signing, including reaffirming commitments to closer bilateral ties, cooperation in regional drug-suppression, Myanmar's pledge  to increase anti-drug efforts, organizing a joint committee  meeting between foreign ministers and speedier coordination to  resolve border disputes.
He said the Thai-Myanmar relations "remain good" despite recent clashes along the border, and the two countries would cooperate  closely to fight drug production and trafficking.

South China Morning Post
Monday, May 14, 2001
DRUGS - Action, not words, needed to stem flow from Burma 
WILLIAM BARNES in Bangkok
 
Burma may be learning how to polish up its image as a drug fighter, but most observers are waiting to see action rather than words.
A United Nations-sponsored gathering of the six Mekong region nations in Rangoon last week agreed to try to stop the spread of the precursor chemicals used to make the synthetic drugs that have flooded the region in the past decade. More than three-quarters of the amphetamines seized in the world last year were discovered in the six countries Burma, China, Thailand, Laos, Vietnam and Cambodia. Of these, Burma remains the biggest producer.
 
Besides agreeing to control the movement of chemical precursors such as ephedrine and caffeine, the ''Mekong six'' also promised to try to lift highland villagers out of poverty so they are not tempted to produce drugs.
 
''Some delegates were quite sympathetic to the regime's efforts, but I don't think anyone thought [the Burmese generals] are hurting the traffickers nearly as hard as they could,'' said one official at the meeting.
 
Rangoon cannot or will not move against the country's principal drug traders because they are political allies, he said.
 
Relations between Rangoon and Bangkok are at their lowest ebb for years following a series of border spats triggered by blatant drug production in those regions.
 
Home Affairs Minister Colonel Tin Hlaing told the UN meeting that since 1988 the authorities had destroyed four tonnes of heroin and 82.5 million methamphetamine tablets. Yet this is a fraction of the drugs produced in Burma's Golden Triangle region, where Thai officials estimate 800 million amphetamine tablets will be made this year alone.
 
The Burmese military has hatched ceasefire deals with about 16 rebel groups that effectively allow some to traffic drugs as long as they do not engage in political activity. Many observers claim the Burmese army co-operates with the traffickers and even protects them. The regime does not deny that many drug dealers or retired traffickers invest a lot of their profits in Rangoon's legal economy.
 
Some drug eradication officials hope to see China use its special relationship with Rangoon's ruling generals to persuade them to act with greater determination against the trade.
 
Certainly few doubt that Beijing is fiercely anti-drug, as evidenced by the execution of scores of traffickers. But it may be wishful thinking to imagine that China will insist on a tough crackdown, when it values Burma as an ally in a potentially critical location. Burma offers indirect access to the Indian Ocean for China's western provinces.
 
The most troublesome traffickers ethnic Wa rebels are also former communist fighters, which may blunt any Chinese action, one source said.

South China Morning Post
Monday, May 14, 2001
BURMA - Islands net $546m private investment for fishing port 
AGENCE FRANCE-PRESSE in Mergui
 
Depleted resources: a fisherman inspects his catch of shrimp pulled from the teeming waters of the Mergui archipelago. Agence France-Presse photo
 
For years Burma has dreamed of reclaiming its vast fishery resources, which until now have been far more ably exploited by neighbouring Thailand.
Now a French colonel-turned-businessman is promising to help that dream come true by building the first deep-sea port along the nation's 2,800km coastline. In Mergui, a picturesque archipelago of 800 islands in the south of the country, Jean Pichon plans to construct the ''biggest fishing port in Asia''.
 
Mr Pichon, vice-chairman and chief executive officer of Myanmar Fisheries International, says there is ''an abundance of marine resources in Myanmar's [Burma's] seas, even though others around it have become depleted''.
 
Work began a year ago and the first phase of construction is already complete. Within 12 months there will also be a processing factory and a container port linked to the local airport. The icing on the cake is a planned 120km road linking Mergui with the southern Thai port of Bang Saphan. Bangkok, with its established markets, will then be less than six hours' drive away.
 
The project is worth about US$70 million (HK$546 million) the biggest private investment to benefit the military regime, which has run Burma since 1988.
 
Mr Pichon controls 60 per cent of the project in association with an unnamed Singaporean partner. Burma's Fisheries Ministry holds 30 per cent and Burmese businesswoman Kyawt Kyawt Lwin the other 10 per cent.
 
Today, a 225-metre jetty stands waiting to welcome the first vessels due at the end of this month. Opposite, is an auction room. Soon, Mr Pichon hopes, it will be alive to the cries of traders setting prices for fish destined for Hong Kong, Singapore, Japan and other regional markets.