------------------------ BurmaNet ------------------------
"Appropriate Information Technologies, Practical Strategies"
----------------------------------------------------------

The BurmaNet News: March 25, 1996
Issue #369

Noted in Passing:

                The heroes in the wilderness should know that we
                condemn the Slorc regime for its brutal aggression,
                and that we support their noble struggle for freedom
                and democracy. - US Congressman Dana Rohrabacher
                (see DANA ROHRABACHER: STATEMENT ON THE
                KNPP)

HEADLINES:
==========
MAINICHI: LETTER FROM BURMA #18 BY AUNG SAN SUU KYI
DANA ROHRABACHER: STATEMENT ON THE KNPP
THE HINDU: IT IS A FIGHT OF THE PEOPLE
BURMESE RELIEF CENTRE NEWSLETTER: END OF REFUGE FOR THE MON
MON NATIONAL RELIEF COMMITTEE: RESETTLEMENT IN PROGRESS
INDEPENDENT REPORT: BURMESE MIL GOV CAN NEVER SUBDUE
THE HINDU: TIES WITH MYANMAR
ANNOUNCEMENT: PORTLAND CITY COUNCIL SENDS WARNING
------------------------------------------------------------------------------------

MAINICHI: LETTER FROM BURMA #18 BY AUNG SAN SUU KYI
March 25, 1996
From: Carol Schlenker & Aung Thu <carol@gol.com>

EX-ARMY OFFICERS SERVE THE DEMOCRATIC CAUSE

"A Few Introductions" (1)

In writing about the activities of the National League for Democracy it
will be necessary to mention the names of some of our key personnel from
time to time, so I would like to introduce a quartet of retired army
officers who are leading members of the executive committee of the party.

The chairman of the NLD is U Aung Shwe.  He joined the Burma Independence
Army in 1942, one of the educated young men (he had graduated from Rangoon
University two years previously) who felt they had a duty to serve the
country in any way they could during the war years.  After Burma became an
independent nation in 1948, he continued to serve in the armed forces and by
the end of the 1950s, he had become a brigadier, a rank achieved by few in
those days.  In 1962, while serving as the Commander of the Southern
Command, he was asked to retire from the army and sent as Burmese ambassador
to Australia and New Zealand.  No official explanation of any kind was given
for the transfer at the time.  However as part of the campaign to try to
discredit the leaders of the NLD in the eyes of the people, it has been
written in government publications of recent years that U Aung Shwe had been
allowed to retire from the army because he had displayed partisanship during
the elections of 1960.  It must therefore be assumed that he was a casualty
of an attempt by the armed forces to defend themselves from accusations that
they had tried to engineer the victory of the socialists in the said
elections.
        
Subsequent to his posting in Australia, U Aung Shwe served in Egypt and
then in Paris until his retirement from government service in 1975.  He
settled in Rangoon, where in 1988 public demonstrations erupted that
eventually spread across the country.  The people of Burma were tired of the
authoritarian rule of the Burma Socialist Programmed Party (BSPP) that had
turned their country, once seen as the fastest-developing nation in
Southeast Asia, into one of the poorest in the world.
        
The predictable reaction to the collapse of the one-party system was the
mushrooming of parties at a rate which would be familiar to those who knew
Japan in the immediate postwar period.  Among the parties that sprang up
were the NLD, of which U Aung Shwe was an executive committee member,
and its close official ally, the Patriotic Old Comrades League formed by
retired
members of the armed forces, of which he was the chairman.  Although there
were over 200 political parties, including the BSPP under its new name of
National Union Party, it soon became evident that it was the NLD which had
the support of the vast majority of the people of Burma.  Even as the
popularity and the organizational capacity of the party rose, persecution of
its members and restrictions on its activities increased.  In June 1989 U
Win Tin, one of the two secretaries of the NLD, was imprisoned and in July U
Tin U, the chairman, and I, the general secretary, were placed under house
arrest.  In spite of such setbacks, the NLD was victorious in an
overwhelming 82 percent of the constituencies during the elections of May
1990.  This led not to a transfer to democratic government as the people had
expected, but to a series of intensive measures aimed at debilitating the
party.  In September U Kyi Maung, who was in effect the acting chairman of
the NLD, was arrested, leaving U Aung Shwe with the unenviable task of
piloting the party through a period of burgeoning difficulties.
        
The only original member of the executive committee, who was left after
1990 to help U Aung Shwe in his struggle to keep the NLD intact through the
years that threatened its viability as a political party, was U Lwin, the
treasurer.  U Lwin had joined the Burmese Independence Army as an
18-year-old boy at the outbreak of the war.  In August 1943 he was among a
batch of Burmese cadets chosen to go to Japan for training at the Rikugun
Shikan Gakko (army academy).  By the time the young Burmese officers had
completed their training in April 1945, the anti-fascist resistance movement
had started and U Lwin and his fellow graduates of the military academy
remained in Hakone until October 1945, making charcoal which they sold to
buy food.
        
U Lwin continued with his career in the army after independence and was
sent on training courses to England and West Germany.  In 1959 he was sent
to Washington as military attache.  On his return from the United States he
spent some years as deputy commander of Central Command, then commander
of South Eastern Command before he was asked to come back to Rangoon to
become a deputy minister.  As the military government that assumed power in
1962 took on a civilian garb under the Burmese Socialist Programme Party, U
Lwin served successively as minister of finance, deputy prime minister and a
member of the state council.  It was as a member of the state council that
he resigned in 1980.

U Lwin joined the NLD in 1988 and was appointed treasurer because of his
experience in finances and his unquestioned integrity.  In 1992, when the
NLD was forced to reorganize its executive committee, U Lwin took on the
post of secretary, while U Aung Shwe became chairman.

************************************************************

DANA ROHRABACHER: STATEMENT ON THE KNPP
March 20, 1996

PUBLIC ADDRESS TO U.S. CONGRESS
by Dana Rohrabacher
Member of  U.S. Congress
March 20, 1996

Mr. Speaker, Karenni freedom fighters are today against the
hired thugs of the Burmese Army. Heavily outnumbered and out
gunned, the Karenni are fighting to defend their homes  along
the Thai-Burmese border from the inhuman onslaught of the
Slorc regime. The Slorc regime is using air attacks and heavy
artillery against the Karenni, a peace loving Christian
nation, who defend themselves with a few rifles.

Last year, thousands of Slorc troops attacked the Karen in
neighbouring territory. Then, the Slorc used brutal methods to
systematically terrorize thousands of innocent hilltribe families. That
tragic scene is now being replayed in the Karenni State.

Over 6000 Slorc troops are relentlessly attacking less than
1000 Karenni farmers, fisherman, and schoolteachers. Their men
and women are desperately fighting an honorable battle to
defend their families, heritage, and identity. Although they
may think that they are in the jungle alone, our spirit is
with them. The heroes in the wilderness should know that we
condemn the Slorc regime for its brutal aggression, and that
we support their noble struggle for freedom and democracy.

In the past, the Slorc regime has justified aggression against
the Karenni as a necessary first step before it could control
the activities of Khun Sa, the infamous drug thug. Now, the
Slorc regime has allowed Khun Sa to retire in luxury, while
the aggression continues. It shouldn't surprise anyone that
the Slorc regime was lying. Their entire system is based on lines.

I intend to visit the Karenni during the upcoming Easter break.
Until then, I wish them success against their evil oppressors.
Freedom loving people in the United State are on your side, and
we will remember you in our prayers. Because you strive for
democracy and justice, remember. Your victory is our victory.

******************************************************

THE HINDU: IT IS A FIGHT OF THE PEOPLE
24th March 1996 (New Delhi)
From: chan@.unv.ernet.in

(Interview with Aung San Suu Kyi)

NOTE:  The military government in Myanmar has restricted the movement of
pro-democracy activist Aung San Suu Kyi. Nothing much has happen since her
release nine months ago. But Suu Kyi has been working silently, consulting
 the party colleagues, reorganising her National League for Democracy and
prepa
ring an educational campaign to sensitise the people. She spoke to V. Jayanth
in
Yangon early this month. Excerpts from the interview:

AUNG SAN SUU KYI will be 51 this year though she looks younger, weak and
fragile. But her smiling face, warmth and typical Burmese dress hide a strong
will. The Nobel Laureate is determined to continue with the struggle for
Democracy.

Q:- Has the progress of restarting democracy progressed at all since your
release last year?
A:- Yes. Somewhat. We have looked at the organisation of the National League
for Democracy and this has know been reorganised. We want to work with the
people more closely and towards that end we are bringing about some changes.
But the problem is a lot people are still subject to harassment.

Q:- Now that the League is out of the National Convention, how do you plan
 to continue with the struggle?
A:- The fight for Democracy is a struggle of the people and we will keep it
that
way. It is not just for one organisation, the NLD. We want to get the people
involved and with them. The National Convention, which is supposed to draft
the new constitution, does not represent the pinion of the people . It will
not
allow the will of the people to prevail. We have not diverted from our policy
when we decided to pull out the National Convention.

Q:- Your repeated calls for a dialogue with the military junta have brought no

response at all. Have they marginalised the pro-democracy movement?
A:- There is no question of marginalising us. We tell journalists who keep
 asking us about the dialogue policy that we will soon come out with a
statement
of policy on this question. Just as we did with regard to the National Conven
tion we are working on a policy on the question of a dialogue.

Q:- You have argued foreign investors to be cautions. But many neighbours
view Myanmar as a land of opportunity. What do you feel about this engagement?
A:- It is certainly not helping speed up the process of democratisation. It
has not
helped the people of the so called land of opportunity. I want to tell the
foreign
investors that Burma does not have the structures for sustaining economic
growth and there are no signs that such structures are being put in place.
 So it is not in their own interests and they must rethink their strategy even
from
the point of view of economic benefits.
    
Some people have a mistaken view that Myanmar is a potential Singapore
or Malaysia. It lacks an educational system to achieve that. More people are
coming to the conclusion that economic success is linked to education. They
will realise that an educational foundation is required for sustained
development.
If foreign investors study beneath the surface , they will realise this and
not
go by the mere attractions held out to them.

Q:- Why have you still not attempted to address public meetings and move out
of Yangon?
A:- We do not have meetings. But in the first place, I have not found enough
time as yet. We hold two meetings every week, during the weekends and
these are enough to cope with for now.

Q:- Why are you putting up a temporary shed in your premises?
A:- We have fouthnightly lectures here. These are educational lectures by
the NLD. They cover history, literature, culture and even some politics. All
these are our responsibilities now. We want to broaden the horizons and
outlook
of the people. We get NLD members, youth and also invite some scholars and
academics.

Q:- If the Slorc completes the constitution and establishes a role for the
 military, what can you do after that?
A:- Our struggles goes on. What they will have is a piece of paper. What
is a constitution if  it does not have the support and respect of the people?
It
is no more than a piece of paper. Any body can draw up such a constitution.
Support of the people and their approval of it is what makes a constitution.

Q:- Are you sure you must stay on here and get on with the struggle or go
abroad briefly to mobilise international support?
A:- I am not going abroad. I am with the people and will continue to work
here. There are enough people outside who are supporting us and working for
us. My work is here.

Q:- The universities were the centre of action in the 1988-89 struggle. What
is
 the mood in the universities today?
A:- I am not much in touch. But I understand  that many of the youth today are

interested only in money. Some have understood that money is not everything
in life. But it is a bait held out to them, not to get involved in a movement
like
ours.

Q:- Foreign investments are coming in. New projects are being taken up. Have
the people not benefited from all this, is the economy not doing well now?
A:- Some investments have come in, no doubt. But now have the people
benefited from it? These are hotels and commercial complexes. How can they
benefit the Burmese people? The understanding of a lot of people I have met is

that economy is not doing very well. A Burmese magazine published an
analysis recently in which local economics said the state was not doing well.
Either the Burmese economy has already peaked, or it is in recession. If it
has
peaked already, I suppose there is nothing much to write home about.

Q:- Myanmar is planning to joining to the ASEAN in a few years. Will that
mean a complete establishment of the junta?
A:- We believe that Burma must join ASEAN because it is a part of Southeast
Asia. But even Mr. Lee Kuan Yew has it will be some time before it becomes
a full member. I know ASEAN does not make democracy a pre-requisite to join
the group. But changes must take place if Burma must be to join the ASEAN.
They will find that unless there are political changes in Burma it cannot
have the kind of economic situation that can make it a suitable member.

Q:-When will you start moving out of Yangon to meet people?
A:- I know it difficult for the people in all areas to come here. They will
find it
difficult to travel and it is also quite costly. We do not have a satisfactory

transport system, especially in the remote areas. The mail  service also does
not work too well, nor do the telephones. So we will think of this, though we
have no final programme or format.

Q:- Do you think you will be re-arrested and detained if you start mobilising
the
people?
A:- They do not work very logically. If they arrest or detain me again, it
 will be good for the restoration of democracy.

-- END --

Today's issue this newspaper, The Hindu, also mentions the complete text
 of  Daw Aung San Suu Kyi92s "Freedom From Fear" article on its cover page
of its Sunday Magazine.

********************************************************

BURMESE RELIEF CENTRE NEWSLETTER: END OF REFUGE FOR THE MON
March, 1996
From: brelief@gol.com (Ken and Visakha Kawasaki)

"Even though there is a cease-fire, the war has not ended."

This woman's concerns appear to be typical of most, if not all
Mon refugees in this area of Kanchanaburi province on the
border of Thailand and Burma. Her statement, and the fact that
hundreds of new refugees have fled to Thailand recently, are
testimony that the horrors of war are far from over.

While the Thai and Burmese governments are in the process of
repatriating the Mon refugees to Burma, Mon villagers are still
fleeing into Thailand. In the past few months, over 100 families
have sought refuge in Payaw Camp, west of Sangklaburi.

In June 1995, the New Mon State Party (NMSP), the pro -
democratic Mon government, and the SLORC signed a cease -
fire agreement. Despite the cessation of fighting between the
Mon army and the SLORC, the civilians continue to suffer
heavily under the Burmese army.

One of the conditions of the cease - fire was that the SLORC
stop the practice of forced labour in Mon areas, but this promise
has not been kept. As the completion of the Ye - Tavoy railway
nears, more and more villagers are being forced to work on its
construction

The new arrivals to Payaw camp report how they were given no
food, medicine, tools or wages when they were taken. Villagers
who fell ill were beaten for working slowly. If they were unable
to build shelters, they had to sleep in the cold or rain.

"SLORC doesn't say exactly what will happen to you if you
don't finish the work, but everybody knows. They have the right
even to shoot you, or to say, "You can't live in this village
anymore..." They have that power ... Since the cease-fire, the
SLORC treats the people just like before," says a recently
arrived Mon refugee.

The SLORC has argued that the use of volunteer labour is
actually a traditional practice, as villagers wish to make merit
and help the country in its development. "This was NEVER a
custom!" a Mon woman passionately exclaims. "We never
worked without the promise of pay. Yes, in hard times we
would help each other out in the community, but it was never
like this! Now we must leave our villages, we are never paid,
and our rice paddies suffer."

If villagers cannot provide the labour, they must pay the
SLORC up to 4,000 kyats, and up to 2,000 kyats to hire
someone to replace them. "We also have to pay porter fees, 200
Kyat per month. If the soldiers ask (the village headman) for
pork we have to give pork. If they ask for 1,000 Kyat we have
to pay it," recounts a young Mon fisherman, who fled to the
border four months ago.

Women and children continue to suffer gross human rights
violations. One Mon woman, returning to Payaw from a family
visit over Christmas, was captured along with 7 girls in the
jungle. She was forced to witness the rape of a 17 - year - old
girl by a SLORC soldier, later that night, a fellow soldier came
to the group, claiming concern about the girl's condition, but
then forced the 55 - year - old woman into his barrack and
raped her as another soldier looked on.

It is apparent that the Mon - SLORC cease - fire has not
improved conditions for civilians. Forced labour, porterage,
torture, rape and arbitrary killings continue to this day. Given
this level of abuse, it is inevitable that many more Mon will
continue to flee. However, as the camps will soon be closed,
these new refugees will have nowhere to go.

*****************************************************
MON NATIONAL RELIEF COMMITTEE: RESETTLEMENT IN PROGRESS
February, 1996 - monthly report  (abridged)
from brelief@gol.com

For the smooth repatriation and resettlement of refugees, the
MNRC and Mon Resettlement Committee hired a bulldozer to
rebuild the road to Payaw Mon refugee camp. Even though the
road rebuilding process has been implemented since mid of
January, it has been delayed as the machine sometime broke
down and had to repair. However, the road rebuilding was
completed in mid of February. At the moment, the transportation
of supplies to Payaw camp is easier than before.

At the same time, when the MNRC transporting supplies to
Payaw, it also arranged to bring back the refugees who would
like to move Bee Ree or Halockhani camps.

The making of permission for transportation of rice in District
level is smooth without any problem and hopefully, the MNRC
can send all assistance in time. But on 20th and 21th February,
the unexpected heavy rain in the border area had destroyed the
road to every camp and the MNRC and its camp residents had
to fix it and took some time and delay for transportation. It had
made time waste and if the MNRC did not complete its
transportation process in time with April 30 deadline, it may
have to ask the Thai authorities for time extension.

Requesting for International Presence

As the MNRC has described in previous reports, it firmly
believes that only international monitoring or presence in the
repatriation process can create the self - confidence of the
returnees and assure for the safety of them. The Mon
community that is weak in every sectors in politics, economy
and protection forces, always needs to appeal for the protection
of world community in accordance with international principles.
The community is an ethnic minority group and has been
suppressed for many decades from central government and its
armed forces. Like the Mon community, the other ethnic
communities have also experienced prolonged suffering.

When concerned authorities of UNHCR and US Embassy
visited to Payaw, they had chances to meet and conduct
interview with some new arrivals escaped forced labours from
Ye - Tavoy railway construction and other violations of human
rights. To realize the real situation of Burma's ethnic
communities, the MNRC makes a suggestion to international
community, to create a monitoring body for investigation of
human rights situation in Burma. The serial cease fire
agreement in Burma could not protect all abuses in local areas
and clearly, it need the international access in Burma.

Even though the UN Human Rights Commission has adopted
serial resolution every year on Burma human rights situation,
but no permanent international access or monitoring in the areas
where the abuses has consistently violated. For Mon refugees
who have no more choice except returning to New Mon State
Party controlled areas, they also need protections according to
international recognized principles adopted by international
conventions of refugees and asylum seekers.

The MNRC has asked for international community, to
participate in the repatriation process of Mon refugees and
hopefully, information for that process must provide how to
solve the problems in Burma and implement according to UN
resolutions on Burma.

At the moment, the MNRC already started the repatriation
process of refugees and therefore, it really needs the
international organization to carry out their responsibility
permanently in refugee camps and resettlement sites. The
MNRC and Mon Resettlement Committee ask for the attention
and collaboration of international community in time before
April 30 deadline.

*******************************************************

INDEPENDENT REPORT: BURMESE MIL GOV CAN NEVER SUBDUE
INFLATION       by U Thaung
March 20, 1996
From: Uthaung@aol.com

These days,  the State Law and Order Restoration Committee government of
Burma started talking about  inflation.  The  generals begin to confess that
there is a phenomenon called inflation, which exists in the midst of their
military
economic system.  One  after another, the generals talked about the ills and
remedy to cure the sickness.

Essential food prices have been rising in Burma every day. A Reuters news
dispatch stated   that the official food price index  in Rangoon rose to
853.61 ( base 100 in 1986) up to October 1995 from 691.90 in fiscal 1994-95
and 418.65 in 1992-93.

Five years ago in November  1991, General Myo Nyunt, Minister of Religious
affairs  blamed the  workers and commercial community as the culprit for the
rocketing price of rice.. He said, "We the higher level leaders had planned
sufficient rice to reach to the citizens,  but lower level officers and
workers did not fulfill their duties.  Moreover the commercial circles waged
rumors and make the rice price  increase."

This time,  the generals did not make such foolish remarks,  instead they
used economic jargons. "Issue of inflation is inevitable, since more and more
has to be invested for national reconstruction, but the rate of inflation
must not be out of control",  said General Than Shwe,  prime minister and
head of the SLORC.  General Maung Aye, number two man devised a formula
to subdue inflation by  reducing  the cost of production.

"Elementary !  Elementary, My dear Watson," the fame detective Sherlock
Holmes used to make remarks for such kind of enigma.  For the Burmese people
the inflation is as simple as  elementary arithmetic;  less income with over
spending equal to the increase of debt.

The SLORC had been running red in government budget  and with great deficit
 in foreign trade, since they took the power in 1988.  Why don't the generals,
who recently become aware of inflation,  simply look at those figures?

                         Foreign trade                                                                 (in Kyat millions)
                       Year                           Export
            Import               Balance
                     1988-89                       2169                3443
               --2411
                     1989-90                       2834                3395
               --  561
                     1990-91                       2953                5523
               --2570
                     1991-92                       2926                5537
               --2411
                     1992-93                       3590                5356
               --1775
                     1993-94                       4158                7800
               --3642
                     1994-95                       4893                9360
               --4467

The total deficit of foreign trade during the SLORC rule was 17.837 billion
kyats.  And in accordance with the foreign trade shortage, the government
budget ran with deficit too.  Total budget deficit for five years of their
rule  was  kyat 28.931 billions.

 In due course the volume of foreign debt also  has to  increase because of
the shortage.  The foreign debt is estimated about $5.5  billion this year,
and the government could not  pay,  even the  interests to the creditor
countries.  Last month the Japanese Government had to extend Burma a
grant-in-aid of $ 48 million for debt relief, to pay the amount of their loan
due in 1966.

The figures are quite simple answer to the inflation that invaded and
 conquered Burma today.   The SLORC  cannot blame anyone,  but themselves.
 Instead of doing effective measures the generals simply  print more
 currency notes continuously for their expenses.
                        
                Currency in circulation
                                                (In Kyats million)

                        1991 March    35140
                        1992 March    46584
                        1993 March    63871
                        1994 March    76749
                        1995 March   106023

While  the money in circulation is increasing  alarmingly,  foreign exchange
reserves are  decreasing  continuously.  Even though  a great amount of
foreign
investment has been signed foreign exchange reserves in Burma were merely
$533.9 million in March 1995.  The government claimed that  the total foreign
investment in that month was $2.75 billion.   There never was an explanation
for such low reserves.

To make the matter worse  the generals introduced another kind  of currency
called FEC.  It was introduced a few years ago for the tourist to exchange
their foreign moneys into token dollar notes. All the tourists must buy at
least $300.00 to spend while visiting the country.  It was quite reasonable
for a tourist to spend about  three hundred dollars  for a trip, and  the
token notes should be absorbed into kyat currency when the tourists depart.

Nevertheless, somehow, the FEC  notes did not change back into kyat currency
and the notes circulate as a quasi-hard currency in Burma today.  Some foreign

firms are permitted to buy FEC notes for their foreign staff and  the
circulation
of FEC notes  becomes  another inflated currency. The FEC note in
 circulation was $108 million. in September 1995,  official rate valued kyat
648 million,  and  in black market rate  worth  about  kyat13284 million.
 Thus  the value of the new kind of currency  in circulation today is around
kyat 13284 million, in addition to  the  kyat notes in circulation  of
 106023 millions.  As the values of FEC  token notes are about one eighth of
the circulation notes, again the situation looks alarming.

Recently, the government issued a license to a firm (rumored to be owned by
General Than Shwe's son) to buy and sell FEC notes into kyats legally.
 Latest rate is one FEC dollar =122.50 buying and 123.00 kyat selling.
                          
Printing of the  two kinds of currency notes could not stop or even delay,
 because of trade balance and budget deficit.   The generals could not stop
the printing press that are running day and night two shifts, six days a week.
 
The problem for the Burmese generals is that they dare not do anything
drastically to the kyat currency notes.  They still do not dare to devalue to
a reasonable rate.  In 1975, when kyat notes were devalued for  the fourth
time
under the military rule,  the Boss, General Ne Win ordered," Never devalue
the kyat again.  If you ministers want to do it , do it over my dead body."
 He is still alive.

Even though the kyat notes are devalued  today,  evidently inflation could not
be wiped out in Burma with  such earning and such spending.

Simple answer for curbing inflation  in Burma is,  instead of buying arms to
suppress the people,  the SLORC urgently needed to make friends with the
people.

******************************************************

THE HINDU: TIES WITH MYANMAR
March 19, 1996    New Delhi
By V. Jayanth
from chan@unv.ernet.in
__________________________________________
NOTE: Protagonists of a pro-Myanmar policy suggest that India must adopt a
more positive approach to Yangon and initiate confidence building measures.
__________________________________________

INDIA and its private sector are still on the horns of a dilemma when it comes

to a policy are strategy for Myanmar. Is it time for India to engage itself
more
closely with this neighbour, despite there being a military regime in the
country
and the history of bilateral relations?
   Unlike the other countries which has launched constructive engagement with
Myanmar, India and its industry are exactly looking for that new market, nor
is
India industry so outlook or flush with funds to go and capture an emerging
 market. But in the light of the approach of many South-East Asian countries,
and of course, China and Japan, questions are being asked for India is doing
the
right thing by adopting a half-hearted, stand-off attitude to Myanmar. Given
the
fact that ties with Bangladesh have not exactly been too friendly, there are
suspicions over Chinese supplies and ties-up with Pakistan, protagonists of a
pro-Myanmar policy suggest that India must adopt a more positive approach to
Yangon and initiate a series of confidence building measures.
   Though a border trade agreement was reached and the borders opened up for
traffic last year, there has not been too much progress on that front. Except
for a
visit by the Commerce Minister, Mr. P. Chidambaram, last year, and then the
official level meetings, bilateral ties have remained on a plateau.
   There are many reservations no doubt. Apart from the historical
contradictions
and problem, moral question have arisen in some quarters about dealing with a
junta. Will engagement with Myanmar now mean recognition of the junta there?
   Here again, the pro-Myanmar lobby poses an interesting question: "If it is
for
the private sector to engage itself, why should the Government India have any
reservations? And even if the pace has to be set by the administration, what
is
wrong  in Government-to-Government dealings or agreements, so long as it is
not inimical to the interests of both countries?
   Recently, the Foreign Minister, Mr. Pranab Mukherjee, on a tour of
Indochina,
said India was committed to a policy of non-interference in the "internal
affairs"
of another country. And he describe the 'pro-democracy movement' as an
internal
problem. He also took pains to argue that there was no link between the
official
position and the conferring of the Jawaharlal Nehru award on Ms. Aung San Suu
Kyi last year. That award stirred a honest's nest in Yangon. It certainly
troubled
the State Law and Order Restoration Council (SLORC), which rules the country.
It raised suspicions about India's policy and message it was conveying to the
Nobel laureate and the junta. (Hence Mr. Mukherjee's explanation)
   The Foreign Minister's enunciation of policy, which was also conveyed
through
diplomatic channels to the SLORC did not exactly convince the military rulers.

The suspicions those who have been there, as well as ASEAN officials and
Singapore businessmen, give the impression that India is missing an
opportunity.
Without mixing politics with business, India could establish a strategically
important relationship for the benefit of both the peoples.
   Ministers of ASEAN countries _ not always known for strong democratic
credentials _ have invariably argued that the private sector's engagement or
investments in a country that provided opportunities for trade, had no
political
implications.
   It has been ASEAN's policy that the best thing for Myanmar was
'constructive engagement'; that economic development would lead to changes in
the political system and improvements and progress for the people in the long
run. Isolation of the country could only lead to more problems. During the
early
phase of isolation since 1988, the junta has ties only with China, which still

enjoys an edge because of that relationship.
   After considerable hesitation and serious thought, Japan, a major donor
country in this region, resumed partial aid for Myanmar. It pressured the
SLORC to release Ms. Suu Kyi from house arrest in July last year, but gave the

green signal for its private sector to take up some project to Myanmar.
   Diplomats in Yangon and people of Indian origin there feel India could
greatly
benefit from ties with Myanmar. Some of the minerals and raw materials that
Indian companies now source from East Africa for instance, are more cheaply
and readily available in Myanmar.
   Discussion on this issue inevitably turns to the Chinese factor. For the
kind of
trade and credit provided by Beijing, and its involvement in strategic
projects
such as the development of sea and air ports, New Delhi's relative
indifference
can be costly in the long run.
   Chinese goods have an easy march over rival products from other countries
because of their access through border trade and the competitive prices.
Though
their quality may be interior, afford ability is certainly a factor in Myanmar

because a majority of the rural population is still poor.
   Aside from competition for lost opportunities, there are real economic
questions. The first centres on the difficult-to-comprehend dual exchange rate
in
operation in Myanmar. The official rate privates for six Kyats to American
Dollar, but the unofficial, market rate is 20 times higher--- 120 Kyats to one

Dollar. This astounding difference makes nonsense of economics.
   But traders hasten to argue that import duties and taxes are paid on the
official
exchange rate only. When the goods enter the market, the conversion takes
place
in the unofficial rate, with multiplier effect. It is believed that sooner
than later,
this distortion could be rectified by the Government.
   Another major hurdle facing investors revolves on the repatriation of
profits.
Business circle in Yangon, concede thin is a grey area. "For some time, we
have
to be content with ploughing back profits, reinvesting in assets within the
country or even acquiring property. We planned our project in such a way that
only 40% of capacity was build with foreign investment. The profits generated
after starting the project have helped us complete the entire plan over a
period
of time", says an investor from Singapore.
   He and his friends some other suggestion too. Apart from hoping  that
things
will change soon, they suggest that foreign player could also utilise profit
to
start an export trade from Myanmar, since there are many raw materials and
agricultural products that can be exported.
   As for dealing with the military generals, the message seems to be uniform.
It
is so much easier to deal with the uniformed leaders than with politicians.
The
generals are stated to be 'quite understanding' and things move when they
decide.
That is important.
   There are fear too about the military rulers losing control and Myanmar
returning to the democratic process. But this is countered by arguments that
so
long as a project benefits the country or people, no Government will want to
close it down or oppose it.
   What can India do in the present situation? First of all, there offers from

Myanmar for the purchase of natural gas and electricity from proposed
projects
near the Indian border. It may be worthwhile for New Delhi to examine these
proposals, find out if either West Bengal or the North-Eastern States can
benefit
from them and decide accordingly. Myanmar will go in for those projects only
if
India is interested in buying gas and power so that Yangon can generate some
funds for investment and development.
   Many Indian companies and their top executives have visited Myanmar, but
no decisions are being taken about investments or joints ventures. Some public

sector undertaking have also evinced interest, but their decisions could rest
with
the Government. New Delhi promised to lay and strengthen roads with an
investment of Rs. 100 crores to facilitate border trade, but this has not
materialised. RITES, the railway consultancy and study unit, conducted a
survey and identified scope for development. Since funding poses problems and
international financial institutions will not support these projects, there
has been
no movement.
   At least after the general elections, it may be time for the new Government
and
its Foreign Minister to re-evaluate Myanmar and develop a clear approach and
policy that could benefit the peoples of both countries. Too much time has
been
lost already and India can engage itself constructively without offending the
pro-democracy movement, which will not oppose the benefits that the people
of Myanmar may get out such ties, Ms. Suu Kyi's opposition has been to the
'show piece' projects like hotels and office complexes which do not offer the
people anything.

**********************************************************

ANNOUNCEMENT: PORTLAND CITY COUNCIL SENDS WARNING
TO CONTRACTORS DOING BUSINESS WITH BURMA
March 22, 1996
From: Brischmidt@aol.com

for more information:  Matt Donohue (503) 786-9517, Brian Schmidt (503)
236-9776, brischmidt@aol.com

Portland OR:  An open letter signed by all four city council members and the
mayor states that Burma's elected leaders have asked businesses to stay out
of Burma and that Portland citizens have asked the city to end contracting to
businesses engaged in Burma.

Brian Schmidt of the Burma Action Committee said, "This letter is a great
first step for the city to take and is a clear warning to businesses that
stay in Burma of the problem they will face if they don't pull out. We
congratulate the city on its action which supports the growing movement to
deny contracts to businesses in Burma as well as supporting Burma sanctions
legislation currently in Congress. Portland knows that business ethics do not
stop at the Pacific Ocean."

The letter states a deep concern with the dictatorship of Burma as a widely
condemned human rights violator that denies power to an elected government.
The letter refers to the elected leadership and the Nobel Peace Prize Winner
Aung San Suu Kyi as opposing trade, saying that Burma "represents a unique
situation today where the legitimate leaders of the country oppose trade
until democracy is restored."

Matt Donohue of the Burma Action Committee said "This is just more evidence
that Burma is the South Africa of the 1990's. If the  businesses still there
do not decide to leave soon, we hope to see Portland taking stronger steps of
voting for withdrawal at shareholder meetings and finally just end business
with contractors. This city does not want to deal with businesses that have
blood on their hands."

"We hope this sends a special message to Portland's own, Columbia
Sportswear," Donohue continued. "Columbia does business in Burma when its
competitors have withdrawn and with the knowledge that the factory it uses
diverts a share of profits directly to military purchases. Columbia's
hometown is renouncing its actions."

To our contractors doing business with Burma:

We, the Portland City Council, are deeply concerned with the situation in
Burma, considered one of the worst human rights violators in the world.
 Though Burma's pro-democracy leaders won elections in 1990, they were denied
power by the military.  The military government which currently runs Burma
has been universally condemned by human rights organizations and the United
Nations for denying fundamental freedoms to its people.

The rightfully elected leaders of Burma have said consistenly since 1989 that
now is not the time to do business in Burma.  The 1991 Nobel Peace Prize
Winner Aung San Suu Kyi has reaffirmed her stance against doing business
since her release from imprisonment last   :3 year.  Burma thus represents a
unique situation today where the legitimate leaders of the country oppose
trade until democracy is restored.

It is our understanding that companies such as Coca-Cola, Amoco, Eddie Bauer,
Liz Claiborne, Levi Strauss, Reebok International and others have stopped
doing business in Burma in reaction to the human rights abuses.  Portland
citizens have asked us to end contracting business to companies trading with
Burma.  As their elected representatives we feel obliged to consider their
concerns, and communicate them to you.

Sincerely,
(City Council members and mayor)

