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11/05/2012

News – General& International

Myanmar legislators visit EU parliament
AFP - 11 May 2012

Myanmar lawmakers paid the country's first ever visit to the European parliament on Thursday in a new sign of growing warmth between the European Union and the Southeast Asian nation.

Headed by lower house speaker U Shwe Mann, the delegation, including two other parliamentarians and a dozen officials, was to meet EU president Herman Van Rompuy and the bloc's foreign policy chief Catherine Ashton.

The president of the parliament, Martin Schulz, said the talks notably served to recognise reforms carried out so far in the long-isolated nation.

"The recent impressive democratic opening of the country gives us much hope and optimism," Schulz said in a statement.

He said the parliament was ready to assist its partner institution in Naypyidaw and had reiterated a standing invitation to Aung San Suu Kyi to collect personally her 1990 Sakharov Prize for freedom of thought.

"I hope this will become possible in the nearest future," he added.

The EU last month decided to suspend almost all sanctions against Myanmar -- a move due to take effect on Friday -- and sent Ashton to Yangon to open an EU office in a first step towards establishing a full diplomatic mission.

After decades under a repressive junta, Myanmar has seen a thaw in its relations with the international community since President Thein Sein ushered in broad changes on coming to power last year, including welcoming Suu Kyi's party into the political mainstream.

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Press Release: Statement by President of the European Parliament Martin Schultz following the meeting with U Shwe Mann, Speaker of the Lower House of Burma/Myanmar
European Parliament - 10 May 2012

Following the meeting with U Shwe Mann, Speaker of the Lower House of Burma/Myanmar (Pyithu Hluttaw), the President of the European Parliament Martin Schulz stated:

"This was the first ever visit of a Burma/Myanmar parliament delegation to the European Parliament, following my personal invitation. It served the triple purpose of increasing mutual confidence, giving recognition to the Burmese leadership for the reforms carried out so far and to discuss the steps ahead in EU-Burma/Myanmar relations.

In particular, I congratulated the Speaker for the way the April by-elections were carried out and encouraged him to continue to work for the achievement of genuine party pluralism and for the reinforcing of civil society and the protection of human rights.

The recent impressive democratic opening of the country gives us much hope and optimism. The EU has honoured these courageous steps by suspending most of its sanctions and opening its office in Rangoon. Significant new EU funding will be available to assist the reform process and help economic and social development. The European Parliament stands ready to assist our partner parliament in Burma/Myanmar in strengthening its capacities, training its staff and building a stronger parliamentary culture.

I commended the announcement of the commuting of all death sentences into life imprisonment and asked for the release of all the remaining political prisoners. We look forward to further progress in the human rights area for the EU to be able to gradually lift all restrictive measures, which will help boost trade and economic development of the country.

I reminded the Speaker of my standing invitation to Aung San Suu Kyi to come to the European Parliament to collect personally her 1990 Sakharov Prize for Freedom of Thought. I hope this will become possible in the nearest future."

Note to editors:

European Parliament delegation to South-East Asia:
http://www.europarl.europa.eu/delegations/en/dase/home.html

European Parliament resolution on the situation in Burma/Myanmar of 20 April 2012:
http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-%2f%2fEP%2f%2fTEXT%2bTA%2bP7-TA-2012-0142%2b0%2bDOC%2bXML%2bV0%2f%2fEN&language=EN

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DKBA Calls on US Drug Agency to Investigate Thai Allegations

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Saw Lah Pwe, the Democratic Karen Buddhist Army (DKBA) leader who has been named one of Thailand’s most-wanted drug traffickers, has called on international anti-narcotics bodies including the US Drug Enforcement Administration (DEA) to investigate the allegations against him.

At a press conference in Myawaddy Township on Thursday, Saw Lah Pwe told several dozen journalists that his organization wrote to the DEA on May 1 urging the agency to come to the area under his control to determine whether he is involved in drug trafficking.

He said the DEA acknowledged receipt of the letter, but did not immediately respond to the invitation.

Speaking to more than 40 Burmese and around 10 Thai journalists, as well as a number of foreign reporters, he added that he has also extended similar invitations to the Thai and Burmese authorities, but has yet to receive a response from them.

On April, Thailand’s Office of Narcotics Control Board (ONCB) included Saw Lah Pwe, who is also known as Na Kham Mwe, in the top five of a list of Thailand’s 25 most-wanted drug traffickers with an offer of a reward for 1 million baht (US $32,000) for information leading to his arrest.

The DKBA leader immediately challenged the allegations against him, saying he was willing to face the charges in a court of law if Thailand’s Deputy Prime Minister Chalerm Yubamrung, who made the decision to include Saw Lah Pwe on the most-wanted list, could offer any evidence to support the claims.

The DKBA also warned that it would shut down a major border-trade point, the Myawaddy-Mae Sot Friendship Brigade, if tensions between the group and the Thai authorities continued to rise, according to Maj San Aung, a leading DKBA official.

The ONCB has insisted, however, that its reports of the DKBA leader’s alleged involvement in the drug trade are accurate. It said that drugs seized by the Thai authorities in Tak Province in 2003 belonged to relatives of Saw Lah Pwe, and that he was their ringleader.

However, Thai media reports indicate that the Thai authorities appear to be working on the assumption that Saw Lah Pwe was the leader of the DKBA at that time. In fact, he was just the commander of DKBA Brigade 5, which broke away from the rest of the group in 2010 after it decided to disband and join a Border Guard Force (BGF) under Burmese military command.

Since then, Saw Lah Pwe’s faction, consisting of around 1,500 troops—roughly a quarter of the group’s former size—is all that remains of the DKBA.

Saw Lah Pwe also questioned the timing of the Thai charges against him. “Why didn’t they issue an arrest warrant for me in 2003 if that’s when they seized the drugs?” he said.

Accusing Chalerm of stirring up trouble, Saw Lah Pwe said that the Thai deputy prime minister “doesn’t want peace.”

“If he is so interested in hunting down fugitives, he should go after Thaksin,” said the DKBA leader, referring to former Thai Prime Minister Thaksin Shinawatra, who fled Thailand in 2008 after being found guilty of corruption.

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Drugs Kingpin Extradited for Mekong Murders

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Laotian authorities handed over Golden Triangle drug lord Sai Naw Kham to Beijing on Thursday—16 days after his reported arrest for the killing of 13 Chinese sailors on the Mekong River last autumn.

The 42-year old is understood to have started his trafficking career under late drug warlord Khun Sa—the leader of the now defunct Shan rebel Mong Thai Army.

“After joint work by the Chinese, Laotian, Burmese and Thai police, we now have sufficient evidence to prove that Naw Kham and his gang members … have in collusion with illegal Thailand military personnel planned and executed the [murders],” said the head of Chinese investigative group Liu Yuejin in a press statement published by the Chinese Ministry of Public Security on Friday.

Liu, who is also the head of the narcotics control bureau of the Chinese Ministry of Public Security, had been given the task of investigate October slayings.

“Naw Kham has been a leading figure in the production, transport and sale of drugs and other criminal activities in the Mekong River area,” Liu said.

“Chinese police captured two [more] suspects in the case of the killings on Oct. 5. According to their statements, Naw Kham is an important person in this case.”

“Mr [Naw Kham] is a key figure in disturbing the peace along the borders of Laos, China, Thailand and Myanmar,” Brigadier General Sysavath Keomalavong, director general of the Laotian General Police Department, was quoted by the Vientiane Times on Friday.

Naw Kham will face trial in China under Chinese law for the crimes of murder and piracy, according to the Chinese ministry’s statement.

The Burmese national is generally regarded as the mastermind behind an assault on two Chinese freight ships in the Thai part of the Mekong River. All 13 Chinese members of the Huaping and Yuxing 8 vessels were killed in the attack, which caused a media uproar in China.

Synthetic drugs, methamphetamines known as “yaba,” were found on the ships after the assault. Xian Yanping, the deputy head of the Yunnan provincial department for public security, told Chinese Central Television that the two boats were captured by Naw Kham’s men in Burmese waters, where they loaded on the narcotics. Once in Thailand, they killed the 13 crew members and unloaded their illicit cargo.

The assault led to the establishment of multinational armed police patrols along the Mekong River in December, headquartered in the sleepy Chinese port of Guanlei, and the formation of a Chinese special investigative unit tasked to hunt down Naw Kham.

On April 28, after the Chinese unit and its Burmese and Laotian counterparts raided some of his hideouts and arrested several associates, Naw Kham apparently crossed from Burma into Laos by boat to negotiate with Laotian authorities on how to evade arrest there.

But the Laotian police arrested the party as soon as they docked at the pier. Armed with rifles and guns, they surrendered after several warning shots were fired, according to the Chinese account released on Friday.

However, the Bangkok Post quoted a Thai security source in April who claimed that Naw Kham, his Laotian right-hand man Tao Maitaeng and six other collaborates were captured during a raid in Bokeo Province.

Unconfirmed rumors followed that Naw Kham offered 20 million Thai baht (US $640,000) “bail” to the Laotian captors for his release, while others said that the Chinese authorities promised a two million Chinese yuan ($3.16 million) reward for his deportation to China.

Around 11 am yesterday, a short “ceremony” was held at the VIP section of Vientiane Airport marking the handover of Naw Kham with a “memorandum of understanding” signed. At 2 pm the Chinese delegation left by plane with Naw Kham for Beijing, where they arrived two hours later.

Reporters saw Naw Kham formally sign his arrest warrant in Beijing, after which he was taken into police custody. On Thursday evening, Minister of Public Security Meng Jianzhu met with members of the special investigative team headed by Liu and congratulated them on the capture.

Liu Jun, a member of the Chinese investigative team, told Chinese Central Television on Friday that Naw Kham was then taken to Yunnan, the Chinese border province next to Burma, where he will stand trial.

“The arrest of Naw Kham means that we have eradicated his criminal gang,” Liu said, adding that Chinese police will continue along with Burmese, Thai and Laotian authorities to hunt down his associates who are still at large.

Naw Kham remained listed on the Interpol website as wanted by Burmese police on Friday.

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Switzerland latest country to end sanctions
Mizzima - 11 May 2012

Switzerland has lifted all sanctions against Burma with the exception of an embargo on arms and other goods liable to be used in repression, the State Secretariat for Economic Affairs (SECO) said on Wednesday.

The decision comes into force on Thursday, but will be rescinded if the political situation in Burma deteriorates sharply, the government said.

Last month the European Union responded to what it said were historic changes in Burma by suspending for one year a wide range of trade, economic and individual sanctions while leaving intact an arms embargo.

Canada and Australia have also recently eased punitive measures, and Japan has waived US $3.7 billion in debt. The U.S. has also lifted some sanctions.

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Polish FM visits Thein Sein
Mizzima - 11 May 2012

Polish Foreign Minister Radoslaw Sikorski met with Burmese President Thein Sein this week in Naypyitaw, the New Light of Myanmar said this week.

The pair exchanged views on economic development in Burma, the suspension and lifting of sanctions imposed by European Union (EU), targeted investment of Poland in factories, dockyards, rail transportation and energy sector as well as aid to human resources development and the technology sector, the article said.

The Polish foreign minister was scheduled to meet Aung San Suu Kyi, leader of the National League for Democracy (NLD), in Rangoon later on Thursday.

EU foreign ministers announced in Luxemburg on April 23 the suspension of most sanctions against Burma for a year, excluding an arms embargo. The EU's suspension of sanctions rather than complete lifting include a ban on investment and trade related to timber and mining.

EU Foreign Policy Chief Catherine Ashton in late April opened a representative office in Rangoon, a move towards establishing a full diplomatic mission in the future.

Ashton also announced a support package of up to 150 million euro (US$ 198 million) for use in Burma's agricultural sector. The EU is Asean’s second largest trading partner.

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Myanmar's Suu Kyi Meets with Polish Foreign Minister
NTD Television - 11 May 2012

Polish Foreign Minister Radoslaw Sikorski met opposition leader Aung San Suu Kyi on Thursday while on a two-day official visit to Myanmar.

Aung San Suu Kyi called for investors to develop regions where ethnic minorities exist.

[Aung San Suu Kyi, Leader of National League for Democracy]:

"Those who are thinking of giving development aid or investing in Burma should consider having programs not just in the mainly Burmese areas but in the ethnic nationality areas as well. That they should always try to balance one with another. Because although our people are poor, I think, in the main land, I think in the ethnic areas they are even poorer and even in greater need of even more aid.”

Sikorski said the suspension of sanctions posed by the European Union against Myanmar would encourage economic recovery.

[Radoslaw Sikorski, Polish Foreign Minister]:

"By suspending the sanctions, we have removed their effects. So you cannot argue that the Burmese economy is not developing because of sanctions, sanctions are not operable anymore. But at the same time we are sending the signal, 'look, we want to be sure that what you are doing is irreversible.’ And we think in a year maybe we will be sure. And maybe that will be the time to re-examine the policy.”

Prior to his visit Sikorski had emphasized that the demand for all political prisoners be released must be met before permanent lifting of EU's sanctions.

Sikorski was accompanied by Polish businessmen representing heavy industries and infrastructure. The delegation met with Myanmar ministers and business communities.

The Polish and Myanmar's delegation also signed an agreement on financing of technology in the mining industry and geological sciences between the two countries.

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Burma and Poland Reach Agreement
Irrawaddy - 11 May 2012

An agreement on economic collaboration between Burma and Poland including cooperation in the energy sector was reached at a meeting between Polish Foreign Minister Radoslaw Sikorski and Burmese Energy Minister Than Htay in Naypyidaw, according to Bernama. Poland will invest in Burma’s energy sector and supply training and technical services, while Poland will buy machinery from Burma. A memorandum of understanding was also signed between the Myanmar Geoscience Association and the Polish AGH university of Science and Technology while the Poland Development Cooperation Initiative Programme donated teaching aids to four schools in Rangoon.

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‘You are not alone’ Poland’s foreign minister tells Burmese opposition
Polskie Radio - 10 May 2012

By John Beauchamp

“You are not alone in your struggle for change,” Poland’s foreign minister Radek Sikorski told a journalists’ workshop in Burma, attended by Nobel Peace Prize winner Aung San Suu Kyi.

“You have many friends ready to help. Poland, like all EU countries, is one of them,” Sikorski said, who was attending the workshop in the capital Naypyidaw, as part of a three-day trip to Burma.

Minister Sikorski told the journalists that there were similarities between the Burmese struggle for freedom and Poland’s experience under communism.

“You have Ms Suu Kyi, we had Lech Walesa,” he said

“I hope that you are on the road to democracy [...]. but there is still much to do.”

Suu Kyi received a passport from the Burmese authorities this week ahead of planned trips to Norway - to belatedly collect the Nobel Peace Prize she won in 1991 - and the UK, following her election to parliament last year after 15 years of house arrest.

The then ruling junta in Burma released her from house arrest in November 2010.

During a short speech at the journalists’ workshop, Suu Kyi thanked Radek Sikorski for visiting Burma and agreed with him that though recent reforms were welcome, the Asian nation still has a long path to tread before democratic transition is complete.

She emphasized that the opposition movement badly needs training sessions like the one at the workshop to help realize that transition.

Burma, also known as the Republic of the Union of Myanmar, underwent partial democratic reforms last year, when power was handed over to the military backed Solidarity Union and Development Party.

Poland’s foreign minister has also met with former political prisoners of the Generation 88 Student Group and representatives of opposition parties.

Sikorski, who is being accompanied on his visit by a group of Polish business people, said that Poland supports a further easing of sanctions against the country to encourage further progress in the transition to democracy. (pg)

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Thai, Burmese bank open remittance service
DVB - 11 May 2012

By Nang Mya Nadi

Asian Green Development Bank and Thailand’s Kasikorn Bank signed an agreement on 8 May to create a remittance service between the two countries.

On Tuesday, AGDB’s deputy-chairman Zaw Min and the K-Bank’s Senior Executive Vice President Somkid Jiranuntarat signed an agreement in Bangkok at Kasikorn’s headquarters in front of officials from the Burmese embassy and the World Bank.

“Migrants sending their hard-earn cash from Thailand back to their homes via unofficial money transfer services often end up losing their money so based on this consideration, we sought approval from the World Bank to run an official remittance service,” said an official from K-Bank.

The exchange rate will be based on daily EU currency rates. The bank said it will offer special discount services to migrant workers and is looking to hire Burmese staff at select branches.

K-Bank said they aim to have the service up and running in June. The first bank to host the service will be in Mahachai district near Bangkok, where a large Burmese community is located.

Kasikorn is the first bank to use Burmese language interface with their ATM machines at more than 20 locations in Thailand.

Asia Green Development Bank is owned by the powerful businessman Tay Za, whom Forbes has described as Burma’s first billionaire and who has benefited from close relations with top-level government officials.

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News – Government / Political Parties

VP Quit Rumors Grow with Photo No-Show
Irrawaddy - 11 May 2012

The reported resignation of Burmese Vice-President Tin Aung Myint Oo became more that mere media speculation on Friday after a photo emerged which showed his empty seat at a cabinet meeting.

The image released on the President’s Office website showed President Thein Sein holding a meeting with his administration, but Tin Aung Myint Oo, who normally sits next to the head of state, was conspicuously absent. By contrast, Sai Mauk Kham, Burma’s other vice-president, was shown in his usual place.

The President’s Office launched its own website on Friday as the latest step in Burma’s current program of tentative democratic reforms.

Rumors that Tin Aung Myint Oo offered his resignation last month spread after he returned from a trip to Singapore which was apparently for medical treatment. The 61-year-old has not been seen in public or state-run media since the conjecture concerning his possible resignation.

However, the government has still not made an official announcement about his position and even banned local journals inside Burma from reporting the speculation. The latest photo from the President’s Office may not prove that Tin Aung Myint Oo has quit, although observers have taken it as a strong indication.

Tin Aung Myint Oo was one of the most powerful opponents of reform in Burma and widely regarded as a key figure in the government’s hardliner faction.

Reports of his resignation have been carried by many different media outlets. Tin Aung Myint Oo was among several hardliners slated to be “moved to different roles or have their responsibilities reduced” over concerns that they could become an obstacle to having Western sanctions lifted, claim sources close to the government.

Thein Sein and Tin Aung Myint Oo were both favorites of former junta chief Snr-Gen Than Shwe, who selected them to run in the 2010 general election as leaders of the military-backed ruling Union Solidarity and Development Party. Than Shwe is also believed to have appointed them to their current government posts.

However, there have been persistent reports since last year that the pair are on bad terms. The clash may have had as much to do with personality differences as any power struggle—Thein Sein is widely regarded as the least corrupt of Burma’s former military leaders, and he and his family have no known connections with any of the country’s tycoons.

Some suspect, however, that he does not enjoy broad support within the government. The President’s Office is known to be displeased with several ministers’ performances and corruption scandals, although Thein Sein himself has also been criticized for the sluggish pace of reforms by Lower House Speaker Shwe Mann, another key member of the former regime.

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New Shan party (TNDP) approved to register
Mizzima - 11 May 2012

The Burmese Election Commission has approved the Tailai (Red Shan) Nationalities Development Party (TNDP) to register as political party.

Four former members of the Shan Nationalities Democratic Party (SNDP) and 14 Tailai (Red Shan) members organized the new party, according to a January 25 article in the Shan Herald News.

The founders include former SNDP members Sai Htay Aung, Sai Kyaw Sway, Saw Win Tun and Saw Min Htin. The 18 TNDP members represent Tailai communities in upper Burma. The group’s headquarters is in Mandalay.

The TNDP name was chosen by the Tailai community in Mandalay on January 19, said Sai Htay Aung, who added that the party would represent not only Tailai people (Red Shan) but also other Shan communities in the area such as Tai Ner, Thai Khamti and others.

The party would like to organize all Shan into one community, he said.

Many Shan are also living in Kachin State and other divisions such as Sagaing, Mandalay, Rangoon.

Although Shan refers to themselves as Tai, they are known by a different names, such as, Thai Yai in Thailand, Dai in China, Tai Ahom in northeast India and Shan in Burma.

Tai-Shan live in Shan State, Burma, and in Yunnan Province in southern China and are classified into different groups: such as Tai Lai, Tai Nüa, Tai Long, Tai Sã, Tai Leng, and others.

Shan State is the largest of Burma’s 14 states and divisions covering 60,000 square miles (23 per cent of the of the entire country with 9 million Shan inhabitants along with other migrants.

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Burma's NLD parliamentarians study Australian system
ABC Radio Australia - 10 May 2012

Over a month since historic by-elections, Burma's parliament was sworn in earlier this month, including veteran democracy figure and Nobel Laureate, Aung San Suu Kyi.

While all that was happening, some MPs from Ms Suu Kyi's National League for Democracy was visiting Australia, on a so-called 'political advisory course' run by the University of Sydney and supported by the ruling Australian Labor Party.

Presenter: Sen Lam

Speaker: Khin Mar Win, Burmese Service, Radio Australia

Please go to the website in order listen to the story.

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What Does the Future Hold for Aung Thaung & Sons?

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Reports this week that Lower House MP Aung Thaung, a former general who served as Burma’s industry minister in the previous military junta, will no longer head efforts to reach a peace agreement with the Kachin Independence Organization (KIO) are just the latest twist in the long career of a man regarded as one of the country’s most corrupt officials.

According to an anonymous government official quoted by Agence France-Presse, Aung Thaung will not be included in a new Kachin negotiation team that will reportedly be led by President Thein Sein “because of a health condition.” Aung Thaung’s apparent ouster is similar to the fate of Vice President Tin Aung Myint Oo, who reportedly resigned last week, also for health reasons.

The move to sideline Aung Thaung from his position as chief of the parliamentary negotiating team, the Union Level Peace Committee, leaves many questions unanswered, including how much influence he still yields and whether more allies of former junta supremo Than Shwe will also be purged from influential positions in the new government. It is also unclear if the shakeup in the negotiating team will actually lead to better relations between the government and the KIO.

Burma’s army under the leadership of Commander-in-Chief Gen Min Aung Hlaing has twice over the past six months ignored Thein Sein’s public orders to halt the offensive against the KIO—a strong indication that Thein Sein and his allies have little control over the country’s armed forces.

Aung Thaung, who is widely believed to have profited immensely from corrupt business deals involving firms owned by his sons, is not known for his negotiating skills. A leaked September 2008 US diplomatic cable describe him as a “notorious hardliner” and noted his close relationship with Than Shwe.

Over the past six months Aung Thaung led a series of meetings with the KIO in the Chinese city of Ruili—talks that failed to reach any form of agreement to end the 11 month conflict between the army and Burma’s second-largest armed ethnic group.

Although Aung Thaung’s team successfully reached agreements with two relatively small groups, the Shan State Army—North and a breakaway faction of the Democratic Karen Buddhist Army, the parliamentary group’s failure to make a deal with the KIO stood in sharp contrast with the negotiating team led by Railways Minister Aung Min.

Aung Min’s team has concluded a flurry of high-profile ceasefire agreements with more than half a dozen groups since early January, when a deal was reached with the Shan State Army—South (SSA-South). The pact with the SSA-South was quickly followed by similar agreements with the Chin National Front, the Karen National Union (KNU) and the New Mon State Party. Aung Min’s tentative agreement with the KNU, which brought a pause to one of the world’s longest-running conflicts, gained international attention and praise from numerous Western governments.

While Aung Min recently traveled to Switzerland and Norway to discuss ways of ending Burma’s civil wars, Aung Thaung and his team continued to be largely shunned by Western governments. Although Aung Thaung, Aung Min and Thein Sein all served as senior figures in the notorious State Peace and Development Council (SPDC), Aung Thaung has had far more difficulty rehabilitating his image.

A key figure in the leadership of the Union Solidarity and Development Association (USDA), the pro-military group that was later transformed into the similarly named political party currently in power, Aung Thaung is often cited by opposition activists as one of the key architects of the Depayin massacre. This was the infamous May 30, 2003, incident in which a mob of stick-wielding USDA cadres attacked supporters of National League for Democracy (NLD) leader Aung San Suu Kyi while she was on a speaking tour in Upper Burma. The coordinated attack left several dozen NLD activists dead, a fate which Suu Kyi herself only narrowly escaped.

Although Aung Thaung and the other alleged organizers of the Depayin attack will likely never face trial for their involvement in this horrendous event, his association with one of the more notorious episodes in recent Burmese history is one possible reason that he has met with few international visitors to Burma, in stark contrast with the showering of praise Aung Min has received. The Norwegian government will reportedly spend millions of dollars over the next five years funding ceasefire-related development programs backed by Aung Min in Karen State and other areas of eastern Burma.

Reports from Naypyidaw suggest a rivalry between Aung Min and Aung Thaung, though as with many reports from anonymous individuals speaking about the small clique who run Burma, it is difficult to tell how far these tensions actually run and whether this led to Aung Thaung’s removal. Nirmal Ghosh, a correspondent for Singapore’s Straits Times, wrote on May 3 that “Sources said Mr Aung Thaung has been privately critical of Mr Aung Min for making too many concessions to the ethnic groups.”

These and other reports that Aung Thaung took a tougher line are hardly surprising given Aung Thaung’s role in escalating tensions with the KIO prior to the end of the group’s 17-year ceasefire with the central government.

During negotiations in early 2010, Aung Thaung and then Communications, Post and Telegraph Minister Thein Zaw gave the KIO until July of that year to join a Border Guard Force under Burmese military command. The decision by the KIO to ignore this deadline led to the 50-year-old organization being declared a terrorist group in state media shortly afterward. Thein Zaw, who has also made the transition from the army to Parliament, currently serves as the second-ranked member of the Union Peace Committee.

How Aung Thaung helped his sons become millionaires

Aung Thaung served as Burma’s Industry Minister (1) from 1997 until the official end of the ruling SPDC last year, a 14-year period in which Burma’s industrial sector came to be dominated by a small group of businessman connected to the military leadership, including Aung Thaung’s own children.

Although they may have not made as much money as billionaire Tay Za, two of Aung Thaung sons, Pyi Aung (also spelled Pye Aung) and Nay Aung are thought to have become multimillionaires using their father’s position in Than Shwe’s junta to advance their business interests, which include timber, oil, gas, electricity, banking, hotels and construction.

The brothers’ business empire is based on a series of interconnected firms, most prominently IGE Co Ltd (also listed as International Group of Entrepreneurs and IGE Pte Ltd). According to a company brochure UNOG Pte Ltd, which deals in oil, gas and mining (also UNOG Co Ltd and United National Oil & Gas), is also under the IGE umbrella, as is another firm that deals in timber called MRT Co Ltd.

A 2008 diplomatic cable states that Win Aung, owner of the timber company United International, told US diplomats that “IGE is the second largest timber company in Burma, earning more than
USD 75 million in 2007.”

According to the pamphlet, other parts of the IGE group of companies include FCGC Co, which deals in “infrastructure development,” and the Hotel Amara in Naypyidaw, where many recent international conferences have been held. Aung Thaung’s family also owns United Amara Bank, formed in 2010.

During the great asset sell-off that took place at the end of the SPDC regime, IGE gained control of what was previously a state-owned 50 percent stake in three upscale hotels in Rangoon—the famed Strand, the Dusit Inya Lake and the Thammada. Another firm, Aung Yee Phyoe Co (also Aung Yee Phyo), which deals in agricultural products, is also part of the family empire.

A US diplomatic cable from 2008 reports that IGE was formed in 1994 and later registered in Singapore in 2001. UNOG, which is also registered in both Burma and Singapore, was created in 2000.

The 2008 cable states: “Nay Aung’s best friend, Win Kyaing, is the Managing Director of IGE Co. and UNOG Co.” Recent reports in Burmese state-controlled media suggest that four years later, Win Kyaing remains managing director with IGE while his friend Nay Aung continues to serve as the chairman of both IGE and UNOG. In January of this year, the New Light of Myanmar listed a woman named Thazin Aung as the managing director of UNOG.

The revealing US diplomatic cable goes on to describe both of Aung Thaung’s sons as being “close to Senior General Than Shwe, who allegedly regards them as family.” The cable quotes a Rangoon-based businessman as stating that both men “use their family connections and close ties to the regime to amass great wealth.”

In addition to being the son of Aung Thaung, Pyi Aung is married to Nandar Aye, the daughter of retired Ge Maung Aye, who for many years was the second-highest ranking member of the SPDC. A US diplomatic cable dated June 2009 suggested that Maung Aye preferred his son-in-law over Tay Za when handing out lucrative business deals.

The 2009 cable cites another Rangoon businessman who told US diplomats that the Joint Chief of Staff Gen Shwe Mann and Vice Snr-Gen Maung Aye were favoring Nay Aung, Zaw Zaw (head of Max Myanmar) and Aung Thet Mann (Shwe Mann’s son) “for new projects and licenses in return for their ‘assistance.’”

The leaked 2008 cable also reports that IGE “was one of eight companies to construct buildings in Nay Pyi Taw. In addition to building several government housing complexes in the capital, the company built IGE Hotel [now Hotel Amara], a four-star hotel with thirty bungalows. As with other construction companies, the GOB [Government of Burma] did not pay IGE for its services, instead providing it with 15 vehicle import licenses, worth USD 200,000 each.”

According to business sources in Burma who spoke to The Irrawaddy last year, in early January 2011, IGE received an official permit from the government’s Trade Policy Council (TPC) to import pipeline material to be used for the Shwe pipeline project which will send fuel from the Arakanese coast to China’s Yunnan Province, literally cutting Burma in half. The billion-dollar project’s twin oil and gas pipelines will be operated by a consortium led by the state-owned Myanmar Oil and Gas Enterprise (MOGE) and the China National Petroleum Company (CNPC).

The route of the pipelines goes through a lengthy strip of northern Shan State controlled by the KIO, where heavy fighting is reportedly continuing between the group’s armed wing and Burma’s military. It is unknown if IGE’s involvement in the pipeline was a topic of discussion during the KIO’s negotiations with Aung Thaung.

IGE and UNOG may not major be players in Burma’s oil industry, however the Aung Thaung family empire is in a good position to receive a percentage of the lucrative royalties that will flow if the oil and gas blocks UNOG co-owns become operational.

In April 2012, UNOG and Petronas Carigali, the exploration and production arm of Malaysia’s state-owned energy firm, obtained the rights for two onshore blocks, RSF-2 and RSF-3. In 2010, Petrnoas Carigali and UNOG reached a similar deal for the rights to offshore blocks in the Gulf of Martaban, MD-4, MD-5 and MD-6. UNOG also currently co-owns the rights to the M1 offshore block with another foreign firm.

Norwegian firm ignored sanctions targeting Thaung Aung’s kids

In May and June 2011 Norwegian firm Seadrill conducted drilling work in the M1 offshore block despite the fact that the block’s co-owners, Aung Thaung’s sons, were subject to EU sanctions. Though Norway is not in the EU, Oslo officially adopted the EU’s Burma sanctions, which were in effect until last month.

Despite the notorious reputation of Aung Thaung and his sons, Seadrill did not appear to be concerned about being associated with them. The New Light of Myanmar reported that Seadrill staff attended a June 1, 2011, ceremony that was held on Seadrill’s West Juno drilling rig to mark the beginning of drilling at the M1 block’s test well, Shwepyitan No. 1. Left unreported in state media was any mention of the fact that the M1 block is located in the ecologically sensitive Irrawaddy delta, home to the increasingly rare Irrawaddy dolphin.

In March 2007, the New Light of Myanmar reported that UNOG Pte Ltd had teamed up with Rimbunan Petrogas (also known as RH Petrogas), a British Virgin Islands-registered firm to sign a production-sharing agreement with MOGE.

According to Burma’s paper of record “MOGE and the two companies will explore, drill and produce oil and natural gas at M-1 block in Mottama offshore.” Leaked US diplomatic cables state that the agreement signed in 2007 gave UNOG and their partner firm the rights to M1 for thirty years.

An August 2011 report produced by MOGE continues to list UNOG as co-owner of the M1 offshore block with its partner, Rimbunan Petrogas.

Seadrill’s regulatory filings with the US Securities and Exchange Commission (SEC) suggest that Rimbunan Petrogas was the lead operator in the venture between the Malaysian-owned firm and UNOG, a technicality that may have legally allowed Seadrill to circumvent restrictions on doing business with Aung Thang’s blacklisted progeny.

Seadrill’s 6 K filing dated August 2011 shows that West Juno was hired by Rimbunan Petrogas for a one-month contract beginning in May 11, 2011, at a day rate of US $124,500, a slight reduction from the $129,500 rate Seadrill received from Thailand’s PTTEP for a four-month drilling contract in Burmese waters from Jan. 11 to May 11, 2011.

The reputation of the Malaysian timber and media tycoon behind Rimbunan Petrogas is not much better than the family behind UNOG. While registered in the British Virgin Islands, Rimbunan Petrogas is part of Tiong Hiew King’s Rimbunan Hijau Group.

The ethnic Chinese billionaire has come under repeated scrutiny from international environmental groups concerned about his companies’ destructive timber practices in Malaysia and Papua New Guineau, both places where Tiong Hiew King uses his substantial ownership in the local media to advance his firm’s interests, a practice that has earned him comparisons with Rupert Murdoch.

Greenpeace has described the 75-year-old Tiong Hiew King as operating a “global logging empire” that is “responsible for the destruction of huge swathes of pristine rainforest in Southeast Asia.”

Offshore gas rules bent for Thaung Aung’s sons

Another US government cable dated June 5, 2009, describes how in late 2008 IGE was able to keep its partial ownership of potentially lucrative offshore gas exploration block A5 after the firm’s Malaysian partners Rimbunan Petrogas opted to pull out from the block.

According to the cable, under rules put in place by MOGE, when Rinmbunan Petrogas withdrew from the exploration block, MOGE should have made it available for auction again. Instead, it held on to the block and in early 2009 entered into an agreement with Indian’s Reliance Industries to develop it.

In April 2011 this block was taken over by Korea-Myanmar Development Co Ltd and Brilliant Oil Corporation Pte, a Singaporean firm controlled by Silver Wave Energy chief Minn Minn Oung, an individual described in a US cable as a front man for infamous regime crony Tay Za.

IGE involved in log export scam

Leaked US diplomatic cables from September 2008 reveal that IGE benefited from a blatantly corrupt practice in which the state-owned Myanmar Timber Enterprise (MTE) “pre-sells uncut timber to well-connected Burmese companies at below-market prices.” MTE has an official monopoly on the exporting of logs but the cronies, including IGE, were able to twist this to suit their own needs.

According to the US cable, IGE along with other crony-controlled firms, including Tay Za’s Htoo Trading, Win Aung’s Dagon Timber and Tin Win’s Tin Wun Tun Company, used “their connections to ensure they received the best quality timber, and often felled them in place of MTE.”

The cable said that IGE and the other firms “exported all logs under MTE’s name” and went on to report that firms in fact received the entire profit from the sale of the logs. According to the cable, the “companies, like others in the industry, exported all logs under MTE’s name, but in their case MTE did not take a percentage cut.”

In another cable from June 2009, a former senior official from the Ministry of Forestry told US embassy staff that although the government had given Htoo Trading and IGE Co Ltd permits to engage in reforestation programs, both firms were using the permits as an excuse to build plantations.

The cable noted that according to the official, “instead of promoting reforestation, these companies [Htoo Trading and IGE] are instead using the land for teak plantations, which he argues is not reforestation. The objective of these plantations, he noted, is to grow teak for future export.”

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News – Ethnic nationalities / Border conflict / Ethnic Armies

Kachin army takes control of key Burma army post on Putao route
KNG - 11 May 2012

Thursday morning saw troops from the Kachin Independence Army (KIA) capture a key Burma army post on the Myitkyina to Putao road in the north of Kachin state. Hka Garan post fell after a one hour firefight, according to local residents.

The post manned which is usually manned by soldiers from the Putao based Infantry Battalion No. 138 was attacked at 5 AM by KIA troops from Brigade 2, a KIA official told the Kachin News Group.

8 Burma army soldiers fell in battle, according to the KIA official who requested anonymity.  The KIA also seized 18 MA rifles, 5 cases of bullets, one pistol, one machine gun, several sacks of rice and about 100 military uniforms when they took the post.

Local residents report that the Kachin flag is now flying at Hka Garan post having replaced the Burmese flag.

It is believed that the extra uniforms were stored at the post because soldiers travel to the remote post wearing civilian clothes and then change into uniform upon arrival.

This week marks 11th month of the Kachin conflict. News service AFP reported today that President Thein Sein will now personally oversee peace talks between the nominally civilian government and the Kachin Independence Organization (KIO).

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Heavy fighting continues in Kachin state: rebels
DVB - 11 May 2012

By Nang Mya Nadi

Fighting in northern Burma’s Kachin state between the Kachin Independence Army and government forces intensified this month, according to the rebels.

La Nan, spokesperson from the Kachin Independence Organisation — the KIA’s political wing — said 52 clashes have taken place this month inside the group’s territories on the eastern banks of the Irrawaddy River.

He said fighting inside KIA brigade-5’s territory, where their stronghold Laiza is located, has been the most intense.

“We are seeing clashes inside all our brigades’ territories. There were four clashes [near] our stronghold,” said La Nan. “The clashes usually are brief but intense – the [Burmese Army] is mainly relying on artillery fire, which they are utilising on a daily basis.”

Locals in the area have been relocating to a KIO-run refugee camp in Laiza, where an estimated 15,000 refugees are living.

According to the spokesperson, KIO officials are increasingly concerned that the overcrowded camp may be hit with outbreaks of diarrhea and malaria, along with food shortages.

The KIO said it sent a letter to the Parliament’s Peace Making Committee led by Aung Thaung on April 29 asking to continue talks; however, the group claims they have yet to receive a response.

La Nan says that for the talks to progress the government’s roadmap to peace should not be one-sided affair and should include ethnic minorities voices.

Earlier this month, the president’s office created a new union-level peace committee filled with the government’s top leaders, which hopes to end the conflict in Kachin state.

President Thein Sein claims to have ordered the government’s troops to cease combat operations in Kachin state; however fighting continues.

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Mon language study only allowed on weekends in government schools
IMNA - 10 May 2012

LayiHtawMon language study is only permitted in Mon State government schools two days a week, on Saturdays and Sundays, according to a source from Mon National Education Committee (MNEC) Center.

During a meeting on April 11th between the New Mon State Party (NMSP) and U Aung Min, the chief government peace negotiator, Mi Sar Dar, an official of MNEC, presented a Mon language program to be taught in governmental schools.

“The MNEC will negotiate with the government this Mayregarding future plans [for studying Mon language],” said an official of MNEC.

The main objectives of MNEC are to maintain Mon literature and culture, to teach Mon language to Mon youths, and to teach Mon grammar usage to Mon people.

In 1995, during a previous NMSP ceasefire, there were 109 governmental schools in Moulmein, Kawkareik, Kyaikmayaw, Kyarinnseikyi, and Southern and Northern Ye Townships that allowed Mon language study.

Now, according to the official of MNEC, the Committeeplans to get permission to offer Mon language in about 400 governmental schools in Mon State, and to institute the changes with three years.

“The plan will start in 2012. [Mon language will be] offered from first to fifth grades. The primary school textbooks will be based on a curriculum designedby MNEC.”

Subjects to be covered include Mon history, poetry, culture, art, and grammar.

During the early years of independence under U Nu, government schools allowed the study of Mon language, and a Board of Mon Education was organized in 1954. Mon teachers were appointed to government schools and Mon language was officially allowed in primary education.

The first set back occurred in 1962, when Mon language was prohibited by the Burma Socialist Programme Party, although it was still offered part-time at some governmental schools through unofficial agreements.

Responding to growing constraints, the NMSP founded the MNEC in 1972 and provided grade-by-grade study of Mon language. The Party also formed a small, central education delegation in 1984-85.

Finally, in 1988, the study of Mon language was completely banned in government schools. Mon people, like other ethnic groups,lost the right to study their mother language.

Today, there are almost three million Mon people living in lower Burma.

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New hopes for Myanmar peace talks: experts
Channel News Asia - 10 May 2012

Bangkok - A bold move by Myanmar's president to take charge of peace talks with ethnic rebels has revived hope of an end to a war in the far north perpetuated by mutual distrust and vested interests, experts say.

Conflict between Myanmar's army and ethnic rebels in Kachin state has raged for a year, displacing around 50,000 civilians and casting a shadow over hard-won government ceasefires in other parts of the country.

The reformist regime has now overhauled its negotiating team, putting the president at the helm of the process and removing some elements of the previous delegation seen by Kachin rebels as linked to army hardliners.

The involvement of President Thein Sein, who has won plaudits for a series of reform launched since he took power last year, is a "strong indication that a deal with the Kachin Independence Army (KIA) can be reached", said Nicholas Farrelly, research fellow at the Australian National University.

"This is overdue but suggests a realisation that hesitant steps will not bring peace to war-torn northern Burma. It will take bold leadership and reservoirs of goodwill," he added, using the country's former name.

Myanmar has signed tentative ceasefire deals with a number of rebel groups in recent months as it seeks to draw a line under civil conflicts that have racked parts of the country since independence in 1948.

But fighting has continued in Kachin state since a 17-year ceasefire broke down last June, as previous government negotiator Aung Thaung failed to win the KIA's trust.

An MP with the ruling army-backed party, he was seen by the rebels as actively trying to hamper talks to buy time as the army pushed for territory, and has now been removed from negotiations.

Win Min, an expert with the Thailand-based Vahu Development Institute, said the new line-up was likely to be welcomed because it boosts the political and military clout of the negotiators -- adding the chief of the army for the first time as well as ethnic Shan vice president Sai Mauk Kham.

He said another welcome inclusion was Railway Minister Aung Min, seen as a pivotal figure in other ceasefire deals, including with rebels from eastern Karen state, the scene of the country's longest-running insurgency.

The Kachin for their part have held out for a political deal to avoid falling "into the same vicious circle of making ceasefire, then making business-oriented regional development and finally falling into fighting again", Win Min said.

A KIA official, who asked not to be named, told AFP that Thein Sein's involvement was welcome.

But he said the success of the talks "will depend on their policy, their willingness to talk to us. It doesn't depend on people".

Negotiators will be faced with the immediate task of securing a temporary halt to fighting, which appears to have gained momentum in recent weeks, despite international calls for a ceasefire.

The KIA has raised fears of an impending assault on their northern stronghold of Laiza near the Chinese border.

State media have also increased the heat with claims of rebel attacks, some wounding civilians -- allegations the KIA denies.

Experts said that both sides are likely to vie for strategic positions before they return to the negotiating table.

Myanmar's military, which traditionally used the ethnic conflicts as a justification for its near half century dictatorship, may also be reluctant to see an end to the fighting.

"Without an internal enemy their budgets and combat strength are hard to justify," said Farrelly.

Independent Myanmar analyst Richard Horsey said the Kachin conflict has been particularly hard to calm because on-going fighting made the military reluctant to back down while suffering casualties.

But he said the KIA were uncomfortable being the only major group not to strike a deal, and were likely to be open to negotiations that gave them the same standing as other ethnic minority rebels.

"There was the wrong negotiating team. It wasn't ready to offer the same terms to the Kachin as had offered to the Karen for example," said Horsey, citing international monitors and codes of conduct for troops as examples.

But peace may imperil the standing of rebel commanders who enjoy much greater power in a conflict situation, he added, while others benefit personally from controlling land linked to lucrative logging and mining deals with Chinese firms.

The KIA may also be reluctant to lay down its arms at a time when it is enjoying a surge of popular support.

"Kachin society is really animated, really angry and people feel emboldened and for the first time in years the KIA have support. They are suddenly feeling like they are the heroes," Horsey said.

- AFP/cc

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Shan army to discuss cooperation against drugs with Naypyitaw
Shan Herald - 11 May 2012

The Restoration Council of Shan State / Shan State Army (RCSS/SSA) that had concluded a ceasefire pact with the Thein Sein government last December announced yesterday one of the three key topics to be discussed at the next union level meeting will be cooperation against drugs.

“It is destroying our new generation and hence the future of our country,” said a draft proposal seen by SHAN last month. “It has also been tarnishing the reputation of the country for so long. But now that a ceasefire has been achieved to resolve our political problems within the country by political means, we think it is time we join hands together to deal with the drug question.”

According to the statement, dated 8 May 2012, that was released yesterday, the SSA South, as the RCSS/SSA is popularly known, had formed a drug eradication committee at the meeting held on 7 May at its Loi Taileng base, opposite Maehongson.

The draft proposal also calls for coordination and cooperation with government departments concerned, the armed movements all of which have been more or less tainted by drugs, the people, neighboring countries and the international community. “We cannot do it alone,” said Lt-Gen Yawd Serk, the SSA leader. “Nobody can do it alone.”

Cooperation against drug is included in the second stage of the peace process declared by President Thein Sein in his speech to the parliament on 1 March.

“Everyone who has a gun is involved,” said a Palaung leader years ago.

Shan State, the biggest state in the Union, boasts a horde of armed organizations beginning with the Burma Army, followed by militia forces run by it and the armed resistance movements that have been either fighting against it or have reached truce with it.

Groups that have signed ceasefire agreements

1.     Restoration Council of Shan State / Shan State Army (RCSS/SSA)

2.     Shan State Progress Party / Shan State Army (SSPP/SSA)

3.     United Wa State Party / United Wa State Army (UWSP/UWSA)

4.     National Democratic Alliance Army (NDAA)

5.     Kayan New Land Party (KNLP) *since 1994*

Groups yet to sign ceasefire agreements

1.     Palaung State Liberation Front (PSLF)

2.     PaO National Liberation Organization (PNLO)

3.     Lahu Democratic Union (LDU)

4.     Wa National Organization (WNO)

5.     Kachin Independence Organization / Kachin Independence Army (KIO/KIA) *Its 4th Brigade is active in Shan State’s top north*

Burma Army-run Border Guard Forces (BGFs) and People Militia Forces (PMFs), with investments from financiers in neighboring countries, are increasingly well known for their involvement in drug production and trafficking.

Burma Army, forced to stand on their own feet, are also deeply involved especially in the protection and transportation sectors.

Beside drugs, the SSA South has proposed to discuss resettlement of the IDPs and agricultural project, according to Yawd Serk. The meeting has been set for 19 May in Kengtung, capital of Shan State East, 160 km north of Thailand’s Mae Sai. Academics, legal experts and the international media are also expected to witness the event.

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Ethnic groups seek the Lady's help in peace talks
The Nation - 11 May 2012

By Supalak Ganjanakhundee

Myanmar's ethnic groups called yesterday for Nobel Laureate Aung San Suu Kyi to play a significant role in their peace talks with the Myanmar government, saying the current truce seems to be yielding few benefits.

President Thein Sein, Aung San Suu Kyi and leaders of all ethnic groups should sit together with open minds to talk about the future of ethnic minorities, said Timothy Laklem, executive of the Karen National Liberation Army (KNLA) Peace Council.

The Karen peace council reached an initial truce with the Myanmar government in last February, but many of its seven-point agreements have not yet been enforced, he said.

"If peace talks are conducted like playing games, the people will end up with all the worst results," Laklem said in an interview.

One point the Karen agreed was important was that: "the state will allow and render assistance for … quickly fulfilling the basic needs, education, health, transport, water and electricity supply in the area for resettlement of the national race residing in another country, and [help it] to become self reliant."

"In the months since then, nothing really has happened," Laklem said, "This really matters for us. Peace talk is not about us, the peace council, but about the people. If they get nothing from the truce, the peace talk is useless."

Since the current regime took power last year, the Myanmar government has reached peace agreements with 11 ethnic groups which had taken up weapons against it for decades.

There are three steps for peace talks. The initial step takes place at state level, the second step at union level and the final step would be held in the parliament where all ethnic groups would sit with the government to determine their future.

Many groups such as the Karen National Union (KNU) and the Shan group are now at the union level while the KNLA Peace Council is only on the first step. The Shan will have its next round of talks next week but the Karen peace council has not yet fixed a date for its round.

Other groups which managed to up the level of their talks, continue to have much doubt about their fate at the end. Ethnic groups had talked with the government without trust and knew the government was not being sincere with them, Laklem said.

They needed a trusted agent to guarantee a peace would be fully enforced. If Aung San Suu Kyi could actively participate in the peace process, it could guarantee a truce that would benefit the people and minorities, he said.

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DKBA general defiant over drug charges
Mizzima -11 May 2012

A colorful Democratic Karen Buddhist Army leader, Major General Na Kham Mwe, who is accused of drug running by Thai authorities, held a press conference at his headquarters on Thursday and blasted back, insisting he is not involved in drugs.

Thai authorities have asked Burma to assist in his arrest. A warrant for his arrest was issued by Thailand in 2003.

Surrounding by around 500 armed Karen soldiers, he said Thai authorities were welcome to inspect his camp opposite Tak’s Phop Phra District, and their safety would be guaranteed. About 100 reporters gathered to hear his remarks. The event was reportedly approved by the Burmese authorities.

The DKBA faction led by Na Kham Mwe broke away from the Karen National Union in 2010. It signed a cease-fire agreement with the Burmese government this year. Its troops are estimated to number around 1,500.

Defending himself, the general told reporters his income came from business ventures, concessions and taxes from trade gates under DKBA control.

Formerly known as “Colonel Moustache,” the general is listed fifth on Thailand's list of most-wanted drug dealers. He insisted he would never stand trial in a Thai court because he was a Karen with Burmese nationality, according to an article in The Bangkok Post.

Described as “furious” over the allegations, he retaliated by closing 12 border crossings in areas under DKBA influence from Tak to Kanchanaburi Province.

He said he had done nothing wrong and wondered why the government brought up the drug case against him at the same time as he was preparing to hold peace talks with the Burmese government.

Thai Deputy Prime Minister Chalerm Yubamrung, who head’s Thailand anti-drugs effort, leveled the charges against the general this week. He said the government is expecting a response soon to its request for help in securing his arrest.

Chalerm, who made his allegations and called for the general’s arrest on a television program, been engaged in a running verbal duel with the general.

Continuing the exchange, Chalerm said, “Most minority groups have not sided with Na Kha Muay's men, which are made up of hundreds of troops, who could not flex [sufficient] muscle against the might of the Thai military. I'm not giving them [DKBA] any credit.”

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Burma reforms cause unexpected side effect for refugees
Mission News Network - 9 May 2012

Burma ― Global euphoria over changes in Burma isn't trickling down to the ones it should most affect: the Karen Christian refugees.

There's still a great deal of danger and  mistrust surrounding the camps, which prevents many of the Internally Displaced People from making their way back to home villages in the heart of Burma.

A case in point: one reform initiative involves the Burmese government, rebels, and a ceasefire agreement. Although inked, there's concern that the talks were a cover for another conflict.

Since the January accord went into effect, there have still be sporadic reports of shooting civilians and other attacks. According to Compass Direct News reports, four months ago, more than 1,100 new refugees--about 450 of them Christian--arrived at the seven refugee camps in Thailand. Those numbers swelled the 74,000 registered IDPs and additional 53,000 unregistered refugees crammed into the space.

Still, the government insists change is on the winds. There have been several concessions in recent days, not the least of which involved activist Aung Sung Suu Kyi winning a Parliament seat. It all resulted in an easing of the sanctions.

However, that's presented an unexpected side-effect for the refugees: aid is drying up. Since people are expecting that the fighting is nearing an end, they also expect that refugees will soon be able to return to their homes, therefore needing less aid in a camp.

Patrick Klein with Vision Beyond Borders says, "We're really concerned about it. The European Union was talking about redistributing some of the funds even before the sanctions were lifted. We felt this would really affect people in the refugee  camps. I believe this is an opportunity for the Church to step up more and more."

However, it's not safe yet for IDPs to leave. "For one thing, there's a lot of landmines", explains Klein. "It's going to take years to clear those landmines. One thing we've found too, like with the orphans, are these kids really ready to go back into Burma? We're trying to figure out how we prepare them to go back. They don't really have family."

The refugees are effectively trapped between malnutrition and getting blown up. "Let's help them. Let's give them the supplies, the funds...whatever they need, so that they can minister to these needs."

Now is the time to answer the call for aid. It's especially necessary because the silence has been overwhelming. "Their cry throughout has been: 'Does the Church care about us?' And, 'How come the world doesn't really seem to care?' I believe this is a great opportunity for the Church, for God's people, to step up and say, 'Let's help.'"

Those in place with a network of believers add another caution as the country continues to experience the throes of freedom. "We also need to be praying that God would keep out adverse elements as well. As the country opens up, there's a lot of people going in to try to exploit people, especially in a country like Burma. The people have been cut off. They're very naïve."

Klein says the problems in Burma are a long way from over. However, the good news is: "We are seeing people more and more open to the Gospel. We're excited because we're seeing prayers answered. But I believe we're going to see people coming back. It's a great opportunity to minister to people. They're open. They've seen a lot of times Christians have been the ones who've come in and brought aid to them."

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News – Business / Economy / Industry

The Nation and Myanmar's Eleven Media sign a joint publishing venture pact
The Nation - 10 May 2012

Yangon - Thailand's Nation Multimedia Group Plc has signed a comprehensive agreement of cooperation with Myanmar's Eleven Media Group Co Ltd that will lead to the formation of a joint venture in a wide range of English-language publications in the near future.

A Memorandum of Understanding (MoU) was signed in Yangon last Friday by Nation Multimedia Group chairman Suthichai Yoon and Eleven Media Group chairman and CEO Dr Than Htut Aung.

Both pledged to combine their editorial and business efforts to benefit the peoples of both countries and the Asean region with high professional standards and ethics.

"The Eleven Media Group is Myanmar's No 1 private publishing group with a highly impressive record of independent and hard-hitting coverage against corruption and undemocratic activities in Myanmar. I have great respect for Dr Than Htut Aung's crusade against dictatorship and corruption," Suthichai said after the signing ceremony.

"This is a landmark agreement with both media organisations sharing similar histories in independent and impartial news reporting, as well as supporting democracy," said Aung.

Both sides also announced an immediate set-up of editorial offices in Yangon and Bangkok with immediate effect. The initiative will intensify news coverage of Myanmar and Asean affairs out of Thailand and Thai and Asean affairs out of Myanmar at a time of significant international interest in Myanmar.

Eleven Media publishes the largest-circulation newspaper, operates websites in local and English languages, and is the pioneer and leader in SMS English-language news. Nation Multimedia publishes Thailand's leading newspaper The Nation, which is also co-founder of Asia News Network, an alliance of 21 leading newspapers in 18 Asian countries.

Aung founded Eleven Media 11 years ago as a sports weekly. The group has since expanded to general news publishing with an aim of promoting democracy for the people and adhering to a public interest agenda in Myanmar. Eleven Media is also preparing for Myanmar's further integration into Asean and the international arena as the country opens up.

"We share the same mission in freedom of the press, public interest agenda and democracy as well as regional outlook. Nation Multimedia Group and Eleven Media will utilise and optimise existing assets with minimal new investment in our various aspects of close cooperation," said Suthichai.

Both sides will proceed to form a joint venture for an English-language website as soon as possible and to set up a daily English-language newspaper at an appropriate time. Eleven Media will have a majority in the partnership. The joint venture hopes to be listed as a public company when Myanmar sets up a stock exchange scheduled in 2016.

Eleven Media has also entered into a broad professional cooperation with NMG in the areas of editorial staff exchange, training, new media, English-language training and editing. The Nation and Eleven Media local and English-language websites will exchange news on a daily basis.

Eleven Media will represent distribution of NMG publications in Myanmar and NMG can represent distribution of EMG publication in Thailand. Both will also work together on organising conferences and events. In advertising and commercial areas, NMG will act as media representative for EMG in Thailand and EMG will act as NMG's media representative in Myanmar.

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Rangoon Hair Factory Strikers Win Wage Hike
Irrawaddy -10 May 2012

By Nyein Nyein

Striking employees at an artificial hair factory in Rangoon’s Industrial Zone 4 were granted their demands for a wage hike as well as increased workers’ rights on Thursday.

More than 1,800 staff at HI Mo High Art factory walked out over demands for increased pay on Wednesday. They then marched to the Labor Office in Mayangone Tonwship and expressed their wishes to officials there.

An agreement was reached after seven workers’ representatives along with Managing Director Nan Tao Yin and Director-General Win Shein of the factory held a meeting at the Labor Law Administrative office in Hlaing Thar Yar Township on Thursday.

Ya Min Lwin, a female worker representative, told The Irrawaddy that, “all of our demands have been agreed to after negotiations at 2 pm today.”

“We will be able to decide whether to work overtime or not, which in the past we did not have a choice about,” she added. “The factory also agreed not to cut the water and electricity for workers as before.”

In the agreement the workers will also receive daily pay, overtime pay and ferry allowance as usual.

The workers demanded a pay raise from 8,000 kyat (US $9.6) to 30,000 kyat ($36.3) per month. In addition, they wanted overtime pay, a clean working environment, sanitary meals and action to be taken against bad supervisors.

Workers only receive 78 kyat ($0.09) for overtime and must work from 5 pm to 9 pm.

Speaking to The Irrawaddy on Thursday morning, May Phyu Win, who came to work at the factory from a rural area and so lives in the building, said, “We are provided with unclean meals in the factory every day. Sometimes there were even worms in the vegetables curries so the workers would suffer diarrhea regularly.”

“The supervisors at the factory treat us badly, and we cannot even talk on phone in the case of an emergency,” she added.

The workers had already demanded a salary raise last year but the protest was not serious enough at the time and their demands were unsuccessful. A worker said, “In April 2011, similar demands for a wage hike happened, but at that time we were put in a locked room inside the factory after they told us that they will solve the matter.”

The factory is owned by a Korean businessman with products exported to South Korea, Japan, China and, occasionally, the Philippines.

In similar industrial action, workers at the Myanmar Winery & Distillery Co. Ltd factory in Shwe Pyi Thar Industrial Zone demanded a salary raise on Tuesday, but had still not reached an agreement at the time of publication.

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Analysis / Opinion

Commentary: A Cabinet Shuffle in Burma? - By Larry Jagan
RFA - 10 May 2012

The resignation of Burma's vice president may signal major changes in the cabinet.

Rumors of a reshuffle in Burma's cabinet, fueled by hints from senior government advisers, have been circulating for months amid reports—strenuously denied by President Thein Sein himself—of a battle between the liberals and hardliners in the government.

Nevertheless, major changes to the cabinet and government policies are in the pipeline.

The massive victory of the National League for Democracy (NLD) in the recent by-elections has made government changes inevitable, and has made the position of the hardliners in government even more untenable.

But first, Thein Sein has to announce the replacement for Vice President Tin Aung Myint Oo, who is seen by many as a hardliner though in recent months he had begun to swing in behind the president.

The Burmese government remains highly secretive, similar to the Chinese government, which  resists having internal disputes and divisions made public. But there is, no doubt, a lot of horse trading and private discussion going on behind the scenes.

The current speaker of the lower house, Shwe Mann, seems to be the hot favorite to take on the vice president’s role.

A calming move?

Shwe Mann has become a thorn in Thein Sein’s side as the parliament battles with the president over legislation and the constitution. So moving the speaker to vice president would help calm the personal feud between the two of them.

This would also give the ambitious politician a better springboard for the 2015 elections and for the presidency, as Thein Sein has repeatedly told government insiders he will not be seeking a second term.

The question then becomes who will fill the vacant role of speaker of the lower house, who in turn will become the main speaker in the middle of next year.

This has now become a very powerful position, as parliament has become a significant political institution and has not been shy of flexing its muscles under Shwe Mann’s leadership.

For months now, government insiders have hinted that the president favors giving that post to Aung San Suu Kyi, now that she is a parliamentarian.

Diplomats in Rangoon are skeptical, though, saying she has repeatedly told them that she would not take an administrative post in the government.

She is particularly keen to pursue the political role of an MP and be a watchdog on government action—or inaction--and policies.

An opportunity

In reality though, the speaker’s job would be ideal for her to prove her political weight and help deliver a democracy dividend to the people. That has been one of her and the NLD’s constant concerns.

It would be an excellent opportunity for her to demand accountability and transparency from the ministers and the government bureaucracy.

She could also provide a role model and authority for the military MPs. There is no doubt that they respect her greatly, because of their high regard for her father, General Aung San. It would also put her in a pivotal position to push for constitutional reform.

But it is still unclear if the president will follow the counsel of his senior advisers, or even if the Lady would accept the offer. If not, then it may be a significant independent in parliament—like Aye Maung—that Thein Sein calls upon.

Of course, whoever is nominated needs to be endorsed or elected by the parliament.

Then there is the more vexed question of the cabinet reshuffle. Thein Sein, according to sources close to him, is wrestling with various options. The most critical is whether members of the NLD apart from Aung San Suu Kyi might be offered ministerial posts.

More civilians or civil servants are also being considered for less politically sensitive posts like the planned new minister for aid coordination in the president’s office.

Rumors

In light of the election results—though it was on Thein Sein’s mind even before that—it seems likely that the liberals in the cabinet will be strengthened at the expense of the hardliners.

The rumor mills have been working overtime in recent months, with several names consistently being mooted for the chop.

These include the electricity minister Zaw Min, the fisheries minister Tin Naing Thein, the foreign minister Wunna Maung Lwin, the information minister Kyaw Hsan, and the sports minister Tint San.

There has been mounting speculation that a cabinet shuffle was imminent after several trips abroad, including the electricity minister’s trip to Switzerland, were cancelled more than a week ago on the president’s orders.

But one change that seems certain is that Aung Min, the railways minister and lead negotiator with many of the ceasefire groups, will give up his current post and become a minister in the president’s office put in charge of a revamped peace negotiating team.

This is all in the pipeline and will be announced within the next few weeks, according to government advisers. Under the constitution, the president has to announce to the parliament—the Pyihtawnsu Hluttaw or Union Parliament—the vice president’s resignation within seven days.

But if the parliament is in recess, he has to ask for an emergency session within 21 days, according to a government adviser.

Then the process of replacing will begin. And it is expected that the long-awaited cabinet shake-up will be announced at that time.

Larry Jagan is a former BBC regional correspondent who is based in Bangkok and has extensively covered Burma issues.

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Commentary: Burmese democracy and ‘freedom without fear’- By May Ng
Mizzima - 11 May 2012

When Aung San Suu Kyi speaks of “freedom from fear,” she is not only speaking to the people she is also speaking to the army that her father helped found.

She wants, most of all, the army to stop seeing the people of Burma as enemies – out of fear. And while taking an enormous gamble, she joined the junta’s Parliament to reassure the military that in her vision for democracy in Burma, she wants to represent the military as well.

In the future, even assuming that democracy is restored in Burma by a transfer of power to the civilian government, the task of restructuring the economy by privatization pose sthe most difficult problem. How to dismantle the decades old supra governmental state enterprises and end the entrenchment of economic power in the hands of the former military commanders and their families will not be easy.

One of the toughest problems in developing countries lies in the relative weakness of the rule of law, and the emergence of a capitalist economy is broadly dependent on the prior existence of a rule of law.

Unfortunately for Burma, even if the Naypyitaw government successfully changes the Constitution, if the power elites of the army cannot be constrained under the rule of law, there will be no security for the people or their property to propel economic prosperity in Burma. Evidently, as Suu Kyi has said, the rule of law exists only when individuals who hold political power feel bound by the law.

Alarmingly, the Naypyitaw generals recently declared their renewed commitment to defend the 2008 army supremacist Constitution, which they term as the Burmese way to a disciplined flourishing democracy. Like many times before, the names and faces have changed, but the core values of military rule remains.

This should trouble the international community, even as they are softening their approach toward Burma

At the moment, Suu Kyi brings her innate ability to transcend politics and her reverence for the deeply held cultural and religious values of Burma. Suu Kyi and her father’s legacy could help put an end to the wars against the ethnic nationalities if a genuine peace agreement can be implemented with provisional changes in the Constitution to protect the ethnic people’s political rights.

In addition, to rebuild a viable political institution in Burma, the government must stop meddling in the country’s religious affairs, for Buddhism continues to be a powerful legitimizing institution in Burma. Also, the government must reopen all the major university campuses and restore the rights of the students to organize, since the studeny unions play an enormous part in bolstering Burma’s political institutions.

Burmese people and the world have shown good will toward the junta’s recent efforts to open up the country. But to encourage further cooperation from the world’s leaders, the government must immediately release all political prisoners and immediately cease armed conflicts with all ethnic nationalities.

While Suu Kyi and her party’s position in Parliament is still only symbolic, Burma’s dire economic condition and staggering poverty are real.

Unless the great economic inequality and the lack of opportunity for youth are addressed urgently, Suu Kyi will not be able to stem the tide of popular anger against the ruling elites, similar to the 1988 and 2007 unrest in Burma.

Burma’s only choice now is peace and hope instead of fear and violence. Someone like Suu Kyi does not come along very often. We must all abandon our fear and take advantage of this once in a lifetime opportunity to embrace freedom and democracy.

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Burmese democracy still a distant dream - By Bertil Lintner
The Australian – 11 May 2012

Pro Democracy leader Aung San Suu Kyi has taken her seat in Burma's parliament, following a landslide victory for her party in April 1 by-elections. Then, on Sunday, Burmese media reported that the alleged hardline vice-president, ex-general Tin Aung Myint Oo, had resigned "for health reasons".

This and similar signs have led many outside observers to assume that "reformist" elements within Burma's quasi-civilian government are strengthening their positions vis-a-vis more "conservative" elements, and that Burma, at long last, may be on its way to becoming a functioning democracy. In an official statement late last month, the EU's External Action Service counsellor, Robert Cooper, even went as far as characterising recent developments as Burma's "Berlin Wall moment"…

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Analysis: The Last Frontier: Burma's Chinland
Mizzima - 11 May 2012

In mid-2012, with reforms taking hold in central Burma, war raging in the north, and a possible peace process in the east, little attention was being paid to Burma's western regions, including the homelands of the indigenous peoples known as the Chins.In remote “Chinland,” civil society organizations and institutions are emerging more slowly than elsewhere, says a new report by Project Maje.

The report says civil society organizations and international aid are desperately needed in the Chin regions; Chin State is said to be Burma's poorest state, with severely undeveloped transportation and communications infrastructure.

Food insecurity remains a serious problem in Chinland. The lingering effects of the Mautam bamboo/rat famine continue to cause hunger and malnutrition in parts of the region.

It is very important to note that if Burma's reforms bring economic development to Chinland, this may open the area up to environmentally disastrous projects for outside profit, the report said.

“Much of the formerly thickly forested state has already been logged for timber export. This deforestation may be made permanent by the introduction of commercial monoculture plantation crops to replace such natural vegetation as secondary-growth hardwood trees and bamboo,” the report said. “Oil palm plantations (which have already taken over some of Mizoram's deforested hills) are a particular danger, as they obliterate the growth of other plants and deplete the soil, then leave desertification after short-term productivity.”

A number of large development projects pose a threat to Chinland, which lacks enough local NGO groups to raise questions and demand answers.

Among the potential threats to the environment is the area is the Kaladan Multimodal Transport project is an India-backed trade corridor under construction, stretching from a seaport in Arakan, north along the Kaladan River to Paletwa, and including a new highway to the India border. Another area of concern is the China-backed Lemro [aka Laymro, aka Phunglong] River hydropower project in southern Chin State, which reportedly may damage fish stocks, destroy forest and cause flooding.

The large-scale Manipur River multipurpose project, intended mainly to provide hydropower to central Burma, creates a flood risk in northern Chin State and Sagaing Division. In 2009, several villages of the Khumi (aka Khami) Chin-related indigenous people were forcibly relocated for the Sai Dan hydroelectric dam project in far northern Arakan.

The projects are not receiving as much international attention as environmental issues elsewhere in Burma, but they are of great importance for their effects on the watersheds and ecosystems of the western Burma.

“Chinland crucially needs its own environmental NGOs and sustainable development projects, including alternative energy such as solar and mini/microhydro,” said the report.

Even with democratic reforms, an end to Burmese military occupation, and regional autonomy, the people of Chinland will face the need to work towards common goals and forge an inclusive cultural identity.

“Chin” as an “umbrella” construct promoted by the CNF for the region's people still meets with opposition, especially by Zo-identifying ethnic people. Language divisions form barriers, and stereotypes about people of various regional townships persist. Even in exile, organizations and projects have broken down into narrow regional classifications, which may date back to the times when tribes were isolated by mountains and raiding. The potential for lack of intra-ethnic cooperation in a free Chinland is very real.

The worst case scenario would follow the pattern of severe, chronic ethnic/tribal violence which has plagued Northeast Indian states such as Manipur and Assam, said the report.

While the Mizo people of Mizoram and the Chin/Zo people from across the border are strongly related culturally, there are language differences between them.

Refugees and migrants from the Chinland side of the border are currently estimated at as much as 10% of Mizoram's 1,091,000 population. In recent years, efforts to improve communication and find common ground appear to be paying off with more tolerance for the Burma-origin residents.

Some analysts perceive a new spirit in Northeast India of abandoning ethnic tension and violence in favor of improving regional ties and economic development. If that is the case, and if Burma demilitarizes and continues democratic reform, the frontiers of Chinland and India's Northeast may become important trade corridors.

In Mizoram, one can see maps of a “Greater Zoram” which includes Chinland along with Mizoram, as a vision of a pan-Chin/Zo nation, defying the borders of India and Burma. The term “Zomia” as used by academics such as the University of Amsterdam's Willem van Schendel and Yale University's James C. Scott, extends to an entire alternative swath of Asia, sometimes sweeping all the way from the Central Asian "'Stans" to the Montagnard uplands of Vietnam. It is the egalitarian realm of “refusenik” populations, the "hill tribes" who have for millennia strived to remain independent of nation states and authoritarian, rice paddy, city cultures.

This profile certainly fits the Chin/Zo people (even if many of them actually live in valley towns and grow wet rice) as well as it fits the Mizos with their spectacular, isolated ridgetop capital, Aizawl.

But at present the vision of a free, autonomous and at least loosely unified Chinland faces many challenges before it even fits into a federal Burma, much less forming a keystone of a vast continental entity.

For the Chin/Zo refugees, life in kindred-spirit Mizoram tends to be less difficult than subsistence in urban India. They have nonetheless been drawn to Delhi because of the office of the United National High Commissioner for Refugees, (UNHCR) which holds the possibility of registration and therefore legal status in India.

In 2004, there were an estimated 1,300 Chin refugees in Delhi (see Project Maje's 2004 report, "Razor's Edge: Survival Crisis for Refugees from Burma in Delhi, India").

As of early 2012, this had increased to as many as 8,000 in Delhi's western slums, although thousands have reportedly gone back to Mizoram since 2010. Employment for Chin/Zo refugees remains extremely difficult in Delhi, and what there is usually pays less than a living wage.

Housing in the lowest-rent sections of neighborhoods including Vikaspuri and Janakpuri is substandard and overcrowded, violent attacks are frequent, and the children of the refugee "baby boom" are bullied at school and on the streets. As Christians, the Chin/Zo families are acutely aware of their religious minority status in Hindu, Muslim and Sikh Delhi.

India also has thousands of other ethnic refugees from Burma, including Rohingyas and Rakhines from Arakan State. A number of Burmese (Burman) dissidents have been resettled overseas or have chosen to return to Burma in the new climate of reform. Additionally, India is host to refugees from Tibet, Afghanistan, Africa and other regions.

Projects started by exile NGOs, such as preschools, health clinics and women's advocacy have become lifelines for the refugees from Chinland in India. They also provide working models for NGO activity back in Chinland.

The future of Chinland will be enhanced by returning exiles, with their awareness of environmental issues, sustainable development, indigenous rights and women's rights, and their experience with international networking, constructive dialogue and ethnic inclusiveness.

Until Chinland is safe enough for mass returns, international funders should continue to provide financial backing and other support for NGOs in exile, while also encouraging the emerging growth of civil society inside Chinland, the report concluded.

To learn more about Project Maje, go to http://www.projectmaje.org/chinland_in_transition.htm

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Opinion: Asean Engagement With Burma Shows Power of Good Neighbors – By John Riady
The Jakarta Globe -10 May 2012

Aung San Suu Kyi has finally been allowed to win. Her by-election victory in Burma last month brought home the scale of the political earthquake taking place there after half a century of military rule. The government is reforming at an unprecedented pace, land prices are rising and tourists are preparing their itineraries.

It is, at the very least, a reminder of the power of a single person committed to change. Suu Kyi’s long house arrest in Burma, on and off since 1990, took her away from the West, where she studied, and her family — her husband died and her children grew up in her absence. Of persistent ideas it is said that ninety-nine times out of a hundred they are smashed to bits; the hundredth time they can change the world. If nothing else, Suu Kyi’s persistence has changed Burma.

But why now? The opening came as a surprise to many, particularly since the regime went to great trouble to secure sham electoral victories in 2010. Some say the pressure from international sanctions are what precipitated the recent thaw (even though sanctions have been ongoing in some form since 1988).

Others, like Singaporean diplomat Kishore Mahbubani, argue that the engagement by the Association of Southeast Asian Nations is what led to big changes (even though this has been going on longer than sanctions have). But pay attention to the way Mahbubani makes the argument: “Western sanctions did not work. Asean engagement with Myanmar did. The regional organization forced Myanmar’s officials and leaders to attend thousands of meetings in Asean countries. These travels opened their eyes to how far Myanmar was falling behind: they realized it had to become a more ‘normal’ country.”

The crux here is that only in the context of rising economic growth does Asean engagement matter. If Southeast Asia were an economic basket case, then the Burmese leadership, no matter how many KrisFlyer miles it racked up, would not be persuaded to follow its example.

This “good neighbor” theory of economic growth roughly goes like this: regions develop by comparing themselves to their neighbors (both in terms of general economic prosperity and its accoutrements: like military spending and public monuments) but also by attracting investment and trade from them. This may explain why a country like Greece, with a sclerotic political culture and limited industrial capacity, is still many times richer than Indonesia: proximity to Germany, France and Northern Europe brought with it spillover effects. In this view, Burma opened up because it saw all of Southeast Asia advancing and needed to keep up.

The case of Burma reminds me of the long debate among economists and political scientists about why Indonesia and Nigeria, similar countries in many respects, have turned out so differently.

Of course, there is the famous joke about our bureaucrats: a man from dictator Gen. Sani Abacha’s Nigeria is impressed by an Indonesian bureaucrat’s house and Mercedes. “Do you see that road?” the Indonesian asks. “Ten percent,” he says. A couple years later, Suharto’s man visits the Nigerian in a palace with Ferraris, amazed. “Do you see that road,” says the Nigerian, gesturing at virgin rainforest. “One hundred percent.”

The joke is glib but the point is not: a distinction can and must be made between a corruption that facilitates and one that obstructs. The question is why some nations end up with the former and others with the latter.

Both Nigeria and Indonesia are regional giants, the former in West Africa, the latter in Southeast Asia. Both are large — the seventh and fourth most populous countries, respectively, with remarkable diversity. Indonesia has some 200 languages and Nigeria 400. Indonesia has three to four prominent religions, Nigeria has two. Politically, both are recent creations, forged from ancient states by Europeans, then governed as one country. Both are home to large immigrant business communities: the Chinese in Indonesia and the Lebanese in Nigeria. Both have oil.

Even their histories mirror each other. Independence was gained within a dozen years of each other, coups launched within a few months — September 1965 for Indonesia and January 1966 in Nigeria. Their strongmen left power around the same time too — May 1998 in Jakarta and May 1999 in Abuja. In its teeming, mad wonder, Lagos is also like Jakarta; both are megalopolises of countries besieged by secessionist movements, civil unrest, corruption and human rights violations.

Yet, Indonesia is not Nigeria. The 2011 nominal per capita GDP is $3,509 for the former and $1,490 for the latter, according to the International Monetary Fund. Peter Cunliffe-Jones, who compared the countries in his book “My Nigeria: Five Decades of Independence,” points out that when Suharto took power in 1967, the number of people in poverty was the same as Nigeria: around 6 out of 10.

Three decades later, it had fallen to two in Indonesia but risen to seven in Nigeria. The average Nigerian lives to 47, the average Indonesian to 70. At independence, he notes, both countries were comparable; today Indonesia does better on most fronts: growth, average income, health and education.

Why is this the case? The conclusion Cunliffe-Jones reaches is that Suharto, despite everything, felt pressure to perform throughout his rule from the media, the business elite, the urban poor and the rural areas. In Nigeria, this sort of pressure did not exist. He quotes a retired Supreme Court justice of Nigeria as saying: “We have not fought, not really, or not enough. And if you do not fight for your rights, nobody will fight for you.”

It’s an intriguing argument, and it could be taken further. Much of the pressure for Indonesia’s advancement may have been driven by a comparison with regional neighbors. Indonesians had Singapore, Kuala Lumpur, Bangkok (and later Perth) within a few hours of air travel, whereas Nigerians, further away from Southern and Northern Europe, were more likely to compare themselves to their West African neighbors. Singapore, in particular, was always the glaring comparison for Indonesians: geographically an hour away and yet quite a civilizational distance.

If this is the right way to approach growth, then it casts the Burmese opening in a new light. It seems that once you get the ball rolling, it is difficult to stop. Expectations have risen permanently, something widespread Internet access and cheap flights will do little to lower.

In this kind of world, the best Asean foreign policy toward Burma is paradoxically domestic growth and prudent policy-making. By itself of course this is not sufficient — we must continue to engage Burma and make sure the “dividends of reform” are felt by its citizens. But setting a good example is ultimately what will keep the pressure for reform alive.

John Riady is a lecturer at Pelita Harapan University Law School and editor-at-large at BeritaSatu Media Holdings.

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Senator Webb is (still) wrong on Burma - By Tom Andrews, United to End Genocide
The Hill (Congress Blogs) - 10 May 2012

Senator Jim Webb (D-Va.), perennially oblivious to the brutality of the Burmese military government, has always opposed United States economic sanctions on the junta. Despite his attempts to gut them, U.S. sanctions were not only maintained but strengthened and are beginning to produce important results.

Now, in a letter to Secretary of State Clinton, Senator Webb is attempting to use the progress made in the April 1 elections as a pretext for repeating his call. In other words, he was first against them because they were supposedly not working and now he is against them because they are. This, despite clear evidence that the regime continues to make war on many of its citizens, recently attacking and killing ethnic minorities in Kachin State.

It’s certainly promising that some advances toward a more democratic Burma have been made. This progress should be encouraged. However, there is so much yet to be accomplished and we must recognize that this is the beginning of the road, not the end. The small steps forward on democracy can easily be undone and there are still ongoing and widespread atrocities being perpetrated by the army in Burma’s ethnic national states.

I just returned from one such state, Kachin, where I witnessed the escalation of Burmese troops and spoke with families fleeing the army’s attacks. The situation there continues to worsen. I met people like Nang Bauk, whose village had been attacked and husband captured, and the family of an elderly man who had been shot by the army while tending to his crops.

Recent reports indicate that 2,000 troops had moved in on the town of Laiza, which is home to thousands of displaced people, sparking fears that a major assault is imminent. Is this the type of behavior that should be encouraged?

Being cautious when easing restrictions on the Burmese regime isn’t just about maintaining consequences for ongoing bad behavior. It’s recognizing that years of pressure have encouraged a desire for progress. We must exercise prudence in removing this pressure by gradually rolling back sanctions in exchange for verifiable changes on the ground. The United States should also be clear about what it considers to be the benchmarks of progress.

As a starting point, the U.S. should require that the Burmese government end gross violations of international human rights law and humanitarian law; enter meaningful collective nationwide negotiations that lead to a political settlement with ethnic national groups; release all political prisoners and repeal laws that prohibit basic freedom including freedoms of assembly, speech, and press; implement constitutional changes that enable a civilian government to hold the military accountable; and establish the rule of law, including the creation of an independent judiciary.

What many people don’t know is that Burma is home to some of the longest running conflicts in the world. It has the highest number of child soldiers. There are decades of well-documented cases of war crimes and crimes against humanity, particularly against Burma’s ethnic national population. It’s going to take time and effort to address these challenges.

Even worse than rewarding the regime prematurely by rolling back sanctions, U.S. companies would actually be in a position to further exacerbate atrocities by rushing into Burma prematurely. At this point, the Burmese regime and its cronies still control the most lucrative sectors of the economy—including natural gas, gems, timber and mining—exploiting Burma’s natural resources at the expense of the people. These men with blood on their hands are exact same people that U.S. companies will be dealing with as they rush to invest.

In Kachin State—home to major dam projects and adjacent to the new Shwe oil and natural gas pipeline project—Chinese investment is fueling the current conflict.  With an eye to their economic interests, the Burmese army broke a 17-year ceasefire when they launched a military offensive last June. In less than a year, tens of thousands have been displaced from the homes because of the Burmese army’s attacks.

The attacks by the army in Kachin underscore two important points: first, the ongoing need for political agreements between the central government and each of Burma’s ethnic national groups and second, the Burmese army is still willing to employ the same brutal tactics today to target minorities that it has for decades.

The United States has led the international community in support of peace, human rights and democracy in Burma for years. Burma is at the beginning of a crossroads and U.S. leadership is being tested. By hastily removing sanctions the risk of reinforcing and exacerbating rights violations is great. By exercising patience and prudence, the U.S. can support real progress that lasts.

Andrews is president of United to End Genocide.

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OpEd: Free To Exploit Burma - By Kanbawza Win
Eurasia Review - 10 May 2012

It seems that the pressure within the Burma had built up to such a degree that the Junta was forced to look for a way to open up, if they were to survive, while at the same time, the regional and international environments have changed and most of the neighbouring countries are concentrating more on accelerating their economic growth and building the region as a community.

The new generation in the army has become more progressive and less conservative. There seems to have been an agreement among the elite on the need to transform Burma before it is too late and be left totally powerless. Hence, the political reforms have begun.

Opening up the country economically is an initial step towards a strategic move that allows the regime to cling on to political power while promoting liberal economic policy to justify its ongoing reform process. No doubt Daw Aung Suu Kyi would have an immense influence on the West’s decision to lift sanctions against the regime but whether lifting of sanctions will do ‘good’ for the people or not is still to be seen. The one thing which is very sure is that the of lifting sanctions by the West will not improve the human rights situation as there is still a long way to go. The US and the West must be very careful that it does not place human rights on the back burner, as it seems to be doing in the case of Chen Guangcheng in Beijing.

The power distribution which is taking place in Burma nowadays is essentially among elite groups themselves, of which Daw Aung San Suu Kyi is a part. The so called national reconciliation therefore, in Burma is focus mainly on mending ties between the government and the NLD and did not incorporate various ethnic nationalities into the nation-building process without which there is little chance of success as it did not encompass the political involvement. Major military offensive using intensive air power in Kachin state is a classic example of the ongoing ethnic cleansing policy and so there is serious doubt whether the government’s policy be truly people-oriented even though the NLD is targeting the empowerment of the masses economically and seek further support from the public whereas the regime is to legitimise its grips on power.

Call me a pessimist because I foresee only a depressing picture. With the help of the “agents of capitalism” posing as scholars, diplomats, development aid experts, representatives of international agencies, investors, entrepreneurs etc, I foresee the land and people of Burma will be robbed and sold off under the lie of development and democratic change. The exploitation of man by man is now very much encouraged on all sides. Perhaps this policy will be just a little better than the Constructive Engagement Policy as practiced by ASEAN and the neighboring countries. The quasi military government now wearing Longyi (Burmese Sarong) and Gaungboung (headdress with a flag) is now being supported by many whose interests lie in having their way with the riches of Burma.  David Cameron, for example, took ten businessmen with him to Rangoon, only as tourists because Britain still had some economic sanctions in place.

Real citizen involvement is needed in creating a federal democratic Burma and not just token involvement by a few. Now Western governments are praising the regime to open new markets for their corporations. They talk only business the market and debt, not health, education, ecology or the common good of the people of Burma. The administrative authorities of the EU, Norway, Canada, the USA, and Australia have suspended most sanctions on Burma, rewarding the ‘quasi civilian government’ for its democratic changes. In fact the cut throat Australian government has never sanctioned investment in Burma as it send only human rights trainers, which is just like trying to straightened a dog’s tail with a pipe as according to the Burmese proverb..

Yet Australian, French, American, Thai, Chinese, Indian, Russian, Malaysian oil and gas companies currently operate there. Oil and gas exports are the Burmese leaders’ largest source of income, amounting to nearly US $3 Billion in the 2011-12 fiscal year. Despite this resource wealth, the oil and gas revenues over the last decades have been pocketed by a few corrupt military generals and the people of Burma benefit nothing.

Several hundred political prisoners remain in jail, repressive laws remain in place and the Constitution has not yet been amended. Although the government has negotiated some cease-fire agreements with some ethnic groups, no inclusive, nationwide political dialogue with the ethnic nationalities has yet been initiated. That is a pre requisite in a country where more than half a century of civil war has been waging.. A cease-fire is simply pressing the pause button. A major offensive was launching in Kachin state where the government boated of claiming killing more than 30 resistance fighters although it dared not release its own casualties according to the CMA (Controller of Military Accounts)figure is 3,278 is KIA, (Kill In Action) since the offensive started in Kachin state. What is needed is a peace process that stops the conflict for good. For now, what is occurring is primarily a change in atmosphere, not yet a change in system.

Of course the Thein Sein administration realized that the status quo was not sustainable and the country is crumbling by successive corrupt, incompetent and brutal military dictatorships. For ordinary people of Burma, each day is a struggle for survival while many of them could not afford a square meal. Discontent is simmering. Sanctions by the West bites much to the regime’s self-esteem and the regime unlike the previous Junta is not longer proud to be a pariah state. All indications point out that Burma was in danger of becoming one of the autonomous regions of China like Tibet. The Junta saw the clear writings of the Arab Spring.

What happened to Tunisia’s Zine al-Abidine Ben Ali, Egypt’s Hosni Mubarak, Libya’s Moammar Gaddafi and other leaders in the Middle East and North Africa, gave them a serious thought. The supremo Than Shwe realized that he faced two choices: leave things as they are and, in a matter of time, Burma could have another popular uprising, on a larger scale than the 2007 Saffron Revolution, in which his own personal security, wealth and welfare, and that of his family, could be in jeopardy; or, he could approve a process of gradual change, in which at least he, his family and his assets are protected. He chose what to him was the lesser of two evils. This is the real cause of change in Burma. Perhaps Than Shwe wants to be to be remembered as the man who gave the nod to a democratic transition, rather than the man who butchered thousands of his people, monks and is guilty of war crimes and crimes against humanity.

Or maybe he may conjecture that by allowing Thein Sein to talk with Suu Kyi–something he would never do–bring her into the process and proceed on the path of reform, he can compensate for the horrific suffering he inflicted on his people, wipe the blood from his hands and change his karma. Whatever his motivations, Thein Sein could not have got this far without Than Shwe, and that means Burma’s spring is still fragile. If Than Shwe is still helping to pull some strings, could he call an end to the reforms if he feels they go too far and threaten his interests? as even now his right hand man Tin Aung Myint Oo the architect of the Kachin Offensive has resigned as a Vice President.

Many young bright Burmese who ran away following the deadly crackdowns in 1988 has not given any incentive to return to become a part of nation building even though several thousands have worked in different professions elsewhere could contribute to the nation nor there is, political stability, supported by democracy and sound economic policy, to encourage those educated to remain in the country rather than finding opportunities outside the country. But so far nothing has moved.

Currently it seems that the senior generals an older generation feel that their political space is shrinking too fast for a comfortable stay and the Burmese army obsession of a state within a state is very much alive and do what it like independent of the central government. Hence, the international community should wait for sometimes, iinstead of rushing in to Burma, one need to study the truth of how Western actions will affect current tensions, relationships and life for the Burmese people whether it is better or for worst for the regime is still too early to be trusted.

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Burma could be next Asian Tiger
ABC Radio Australia - 10 May 2012

Burma is poised to become Asia's next boom economy as international companies clamour to invest there.

But while the country is resource rich, it's expected to be some time before the Burmese people see any economic benefits.

Correspondent: Zoe Daniel

Speakers: Khine Kine New, Garment Manufacturers Association; U Moe Myint, businessman; Daniel Gelfer, development consultant

Zoe Daniel: All of a sudden - Burma is on the move.

Rapid political reform is bringing with it economic change and this nation run ragged by repression is finally full of possibilities. Industries previously flattened by trade restrictions are preparing for an economic revival.

Among them - the garment sector, which before sanctions employed more than 300,000 people - although exports to the US are still not allowed, for the moment.

Khine Khine Nwe is from the country's Garment Manufacturers Association.

Khine Kine Nwe: We have about 150 factories running at this moment with 100,000 workers at one time down to 60,000 workers from 350,000 workers and we are trying to create a job opportunity for them, the government also and our industry also, to bring them back.

Zoe Daniel: Already Australia and the United States have eased sanctions and the EU has suspended all but the arms embargo for a year.

There are visible changes on the streets of Rangoon, new cars on the road, new goods in the shops - and a sense of surprise among the Burmese people - rich and poor.

Moe Myint: What has happened over the year, has been a, shall I say, a surprise. I never expected that something like this would happen in my lifetime, I'm 60 years old now.

Zoe Daniel: U Moe Myint is one of Burma's top businessmen. His oil and gas exploration company operates one of the most productive oil fields in a country perfectly positioned to provide energy to both China and India.

He's known for the fact that he's avoided the crony system that pervades business in Burma where military mates foster business success. But he was still affected by US travel bans on those seen to be profiting from the spoils of the regime.

Moe Myint: I find that it was totally unfair but what I was very annoyed with when they imposed it on my family, including my young son who has nothing to do with it, at that time my son was working for Chevron in Bakersfield, and then he left the States for Canada and he couldn't get back in on account of the visa imposed on him and that shocked us.

Zoe Daniel: Now those bans have been lifted and there's finally a chance to truly explore the potential of the place and its people, but with care.

Moe Myint: I would like to see more investment, more big qualified companies, like for instance from Australia, you have Woodside Petroleum, you have BHP, I would very much like to see companies like that come in. Because when these companies come in, you know, it will have a very positive effect or impact on the environmental, education, health standards of the country and that will help grow a middle class.

But what has happened over the past 20 years, the country has gone poorer.

Zoe Daniel: Already there's an emphasis on corporate social responsibility, amid concern that people will be forgotten by international investors who are only looking to extract profits.

Development consultant Daniel Gelfer.

Daniel Gelfer: This is a labour-intensive country, there's lots of labour available, people need jobs, people are unemployed, people are impoverished, people are underemployed. There's a need for massive employment both in skilled and unskilled labour, and I would hope that investment could help fill some of those gaps.

Zoe Daniel: Known as an untapped, resource-rich place, there are predictions that Burma could be a new Asian tiger - if reforms continue.

Note: Please go to the website in order listen to the story.

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Burma to jump-start development
ABC Radio Australia - 10 May 2012

The International Monetary Fund says Burma could be Asia's next boom economy if it stays on the path of political and economic reforms.

The IMF this week noted Burma's moves to free up its currency and said the nation faces an historic opportunity to jump-start development and lift living standards.

It also points to the country's rich natural resources, young labor force, and proximity to some of Asia's most dynamic economies to its advantage.

But while Asian firms are poised to compete for business opportunities, the challenges are many.

Presenter: Sen Lam

Speaker: Shigeki Maeda, managing director of the Singapore office of the Japan External Trade Organisation, JETRO

Maeda: At this moment, I don't think so. There're still unclear factors remaining. For example, the new investment law, that is a very critical factor for the Japanese investor, who'd like to penetrate the market. So, so far from the Japanese company's viewpoint, they're still in the wait-and-see position, looking forward to the opening of the gate.

Lam: But it would seem that Japan is leading the way. Isn't Tokyo helping Burma set up a stock exchange?

Maeda: Yes, and (Japanese) government has already officially announced to list out the ODA - the Official Development Assistance - but from the private sector's viewpoint, it remains still unclear factor. They're watching seriously the market, what's going on. While the big trading companies have already established their offices in Naypyidaw and large offices in Yangon, but real business is still "in the air."

Lam: Would some of the challenges be the uncertainties of doing business in Burma? For example, the lack of rule of law, or opaque laws. The uncertain or unreliable electricity supply system?

Maeda: Oh, yes, almost always uncertainties. For example, the legislation rule of business or investment is still uncertain. Government procedures are still unclear. The infrastructure is still not well organised. If the Japanese companies would like to start a joint venture with a local partner, the information is not enough. In the past, or under the military administration, the powerful economic companies were strongly linked to the government. But now, it might be shifting and changing, and so, with whom are the Japanese companies cooperating? That is still unclear. So, in such transition periods, the economic structure is also changing and so how are the Japanese companies to start up their new business under such conditiions? That is always with some confusion.

Lam: So there are positives there, but the picture is not so clear at the moment?

Maeda: Yes.

Lam: And what about Burma's complex exchange rate system? Do you think that might be problematic? Might that hinder direct foreign investment?

Maeda: Yes, yes, of course. But the government is now introducing the new system, with the consultation of the IMF, and it's a good sign for the other countries. So, as time goes on, the situation would be better, I hope.

Lam: As you say, the picture is unclear, and doing business in Burma is still an unknown quantity, but going by the number of Asia countries rushing into Burma to invest, particularly Japan, China, Korea, for instance, these countries do see the potential there, don't they? Do you think that despite the uncertainties, that it is important for countries to get in first, to stake a claim, if you like?

Maeda: Ya, ya, ya. Of course, of course. They are waiting or looking forward to the opening gate. And they're now trying to keep a good position, just in front of the gate. So Japanese companies are now rushing to visit, just visit so far, but it takes a bit of time to start the real business in Myanmar.

Lam: Time and patience, I imagine?

Maeda: Ya, ya, ya.

Note: Please go to the website in order listen to the story.

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What’s In an Oath? Suu Kyi and the Political Dilemmas of the National League for Democracy in Myanmar - By Ben Hartley
The Atlantic Council of Canada -10 May 2012

In recent weeks, Western states have begun easing sanctions as a result of the Myanmar’s increased pluralism, the most notable example being Aung San Suu Kyi’s election to Parliament. But in the context of new investment and economic growth, the military regime has paradoxically positioned itself to consolidate power and isolate Suu Kyi through political legitimacy.

The difference between the words  ‘respect’ and ‘safeguard’ may not mean a lot to you or me. But if you were to ask Aung San Suu Kyi, Noble Peace laureate and long imprisoned opposition leader, the answer would likely be that it is substantial. Last week, Suu Kyi in a clear sign of acquiescence to the military backed government, agreed to drop her demand to replace the words “safeguard the constitution” with “respect the constitution” in the Parliamentary oath of office.

The difference in phrasing, no small matter, opens legitimate questions as to the degree of political freedom granted to lawmakers in Myanmar as Western countries ease sanctions on the Southeast Asian nation as a reward for increased pluralism. ‘Respecting’ implies the ability to change the constitution’s language. ‘Safeguarding’ implies a legalistic and fiduciary obligation to defending its content.

Suu Kyi, now elected to Parliament, faces a serious long term dilemma. Continue to protest the regime and risk appearing against the newfound economic benefits of liberalization, or condone a regime that needs her support in the eyes of the people and the international community to govern legitimately.

Condoning the government and continuing the process of easing sanctions will deliver clear economic and social benefits to the country. Last week the United States loosened sanctions to allow private US charities and NGOs to do work in the isolated country. The US Treasury’s actions eased restrictions on private groups working in the areas of democratic development, sport, and education

The IMF, for its part, worked discretely but closely with the central bank of Myanmar in preparation for the April 2nd flotation of its currency, the Kyat, and the EU recently lifted a ban on investing in 52 companies controlled by the Myanmar government and lifted travel bans and asset freezes on 491 people with close ties to the regime. Even the economically devastated state of Japan recently cancelled $3.7-billion in debt owed by Myanmar and restarted development loans.

If Suu Kyi condones the government’s actions, it will allow the regime to take credit for new benefits delivered by the international community, and will dilute her voice to merely a contributory piece of a larger successful narrative. Criticism of her being co-opted by the regime will result, and government officials will permanently retain benefits previously denied under sanctions.

Alternatively, Suu Kyi could continue to resist. Rumours abound that if she won a seat in Parliament she would be offered a place in the government as the head of an influential committee, or even the position of Foreign Affairs Minister. Should she refuse and continue to protest, she will be acting against the forces of foreign investment that will contribute to tangible short-term development in the newly opened markets of Myanmar.

Thus, if Suu Kyi should resist but retain her elected position in Parliament, the easing of sanctions will paradoxically contribute to the regime’s consolidation of power. In this sense, Suu Kyi’s Parliamentary victory marks a strategic victory for the regime’s leadership. By vesting her with political legitimacy, Suu Kyi will lose the agency needed criticize the underpinnings of the regime she now participates in. At once, the military regime will have succeeded in opening the country to foreign investment, purchasing enough political capital to make peace with armed rebel groups and the international community, and co-opting the regime’s most vocal critic into political silence.

A key indicator will be Suu Kyi’s party, the National League for Democracy (NLD)’s, stance on the new foreign investment law, which sets out land use terms, legal structures and incentives for foreign investment for the foreseeable future. As the international financial institutions and donor countries prepare to gather in Myanmar to coordinate aid flows, the voice given, and the opinions expressed by the NLD will offer a window into the strategy of the opposition party.

As foreign investors line up to do business in Myanmar, it is important to note that no system-wide political progress can occur while the military controls the largest Parliamentary block. The true test of democratic development will take place in 2015, when national elections are held. This will represent an opportunity for Suu Kyi and her NLD to take power and launch an agenda that could range from small scale reform to full regime change. How aggressively the NLD positions themselves on policy issues such as the foreign investment law will likely determine whether or not the military regime, who in the meantime will enjoy the benefits of open markets, will even allow the NLD the opportunity to legitimately take power.

While a more thorough analysis of the NLD’s political decision making will have to take place in the run up to the 2015 elections, the key question becomes: was Suu Kyi’s acceptance of the oath a choice to lose a battle, but win the wider war? Or was it instead the first of many decisions where the military regime will use her position of legitimacy in Parliament force her to choose between her own agency and the wellbeing of her people.

Ben Hartley is an Asia Pacific Analyst with the Atlantic Council of Canada. He hold a BAH from Queen's University, where he worked as a research assistant at the Queen's Centre for International Relations. Ben specializes in international trade and non-proliferation, and will be pursuing an MA from the Johns Hopkins School of Advanced International Studies in the Fall of 2012.

Any views or opinions expressed in this article are solely those of the authors and the news agencies and do not necessarily represent those of the Atlantic Council of Canada. This article is published for information purposes only.

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Interview: For Burmese dissident, IMF might dream economic boom, but our dignity is worth more - Tint Swe, NLD representative in India
Asia News - 10 May 2012

For Burmese dissident, IMF might dream economic boom, but our dignity is worth more

For the International Monetary Fund, Myanmar could become Asia's "next frontier". Experts call for "appropriate reforms" to go along with the "labour force" and "natural resources." NLD representative in India says wealth "is not the sole aspiration"; what counts is "prosperity for the entire population".

New Delhi - "Most Burmese admire the Asian Tigers," nations like South Korea, Hong Kong, Taiwan and Singapore that led the economic boom of the 1990s; however, "material success is not the sole aspiration." What really counts for Myanmar is "prosperity for the entire population and a life with dignity," said Tint Swe, a Burmese exiled leader and representative of the National league for Democracy (NLD) in India.

Speaking to Asia News about a recent report released by the International Monetary Fund (IMF), the veteran dissident, who fled the crackdown by the military regime in 1990, said, "Economic indicators" set by international financial institutions "should not be the driving factors".

For the IMF's 2011 report on Myanmar, the country "could become the next economic frontier in Asia if, with appropriate reforms, it can turn its rich natural resources, young labour force, and proximity to some of the most dynamic economies, to its advantage."

Last year, the economy grew by an estimated 5.5 per cent and could reach 6 per cent in the current year.

"Economic stability", inflation and "managed float" of the kyat, the national currency, are some of the key goals laid out in the report.

For the IMF, further economic liberalisation and privatisation are necessary even though companies close to the former military junta or connected to foreign interests are the best placed.

Improvements are possible in the energy sector and manufacturing. In an unprecedented move, the authorities have decided to cut military spending and invest more in education.

In order to understand the situation in Myanmar, AsiaNews interviewed Tint Swe, a Burmese dissident and NLD representative in India.

Dr Swe, are Myanmar's reforms only economic or have there been steps towards democracy?

It is clear that real changes are taking place in Burma. The nation is coming out of martial laws, one-party rule and military suppression. For the first time, a constitutional system is in place, although it is not fully democratic. Economic reforms have not yet been implemented even though restrictions have been lifted and new measures are taken. However, it must be noted that all these changes come after those in power entrenched their power base and economic holdings. The constitution favours the military-backed party. The military is guaranteed 25 per cent of the seats in parliament and the head of state must be military-oriented. Economic opportunities have been in the hands of army and cronies.

What about lifting sanctions? Many have been vocal about it?

Some have called for the lifting of sanctions not on a rational basis but for their own sake. Myanmar's neighbours and other Asian countries, which have never cared for human rights, have called for sanctions to be lifted. The economy and wealth are very important. Burma is officially a Least Developed Country (LDC) since 1987. The country is extremely poor but there are millionaires, i.e. generals and their friends.

The country is enormously rich, endowed with a treasure-trove of natural resources. However, teak and hard wood forests as well as under-water fishery were sold out under the State Law and Order Restoration Council (SLORC). Natural Gas was sold out by the State Peace and Development Council (SPDC). The revenue did not come to the State for public use and nothing indicates that Burma will lose its LDC status.

Burma has to rebuild from almost ground zero. So far, changes have been superficial. Millions of migrant workers and refugees cannot return home because there are no new jobs, better education or health care facilities. Sixty five percent of population is in the agricultural sector and have not been uplifted. The education system, which has been systematically destroyed, needs a couple of decades to improved. Deep-rooted corruption is a real challenge. Highly hierarchical workplace practices has to be changed. There are good people who want to change but many of them do not know how to do it.

In the recent past, China has been Myanmar's main trading partner. Will the opening to new markets and countries bring greater attention to human rights?

It will be a big mistake to rely on a single helping hand. It may be good for others but not for Burma. Burma's economic and financial reforms may or may not be good if measured against the IMF yardstick alone. The growth rate and the GDP are not always indicative of a people's wellbeing.

For decades, the people of Burma might have read about impressive growth figures in state-owned newspapers even though they had a hard time finding a square meal.

Since the Foreign Direct Investment Law was enacted in late 1988, over 30 foreign countries invested more than US$ 16 billion in over 400 projects in Burma as of March 2010.

Most foreign direct investment was in oil and natural gas and other energy-related activities. Agriculture and manufacturing have not seen any increase in investment.

Despite greater foreign investment, job opportunities, manufacturing and farming have shown little progress.

Agriculture represents a declining component of GDP: 58.8 per cent in 1991, 57.1 per cent in 2001 and 36.4 per cent in 2010.

Farm workers are thus not profiting from any growth.

Dr Swe, will Myanmar really become Asia's "new frontier"?

Yes, Burma has the potential to be an economic frontier. Burmese have been disgraced and degraded by their dictatorial rulers. They are ashamed of their standing and are eager to show their abilities and talents.

However, they need foreign assistance and more democratic changes to accomplish what amounts to a mission impossible. Businessmen everywhere are the same; they just want to make money and profit.

Sharing benefits is fine. However, at this juncture, mutual benefit cannot be done with multinationals and Burmese tycoons.

What are your main concerns?

Environmental concerns must government the construction of big dams, large-scale projects and cross-country pipelines. Issues such as the displacement of local communities, forced labour and fair compensation must be addressed. Transparency and accountability are still a dream in Burma. A Myanmar National Human Rights Commission has been set up recently, but its officials are not independent.

What impact are foreigners having on Burma's economic and social life?

Burma's civil society has not yet fully formed. Many NGOs have been active in Burma well before the 2010 election. New NGOs have come  only after Daw Aung San Suu Kyi met with President U Thein Sein and was favourably impressed. NGOs in Burma can be divided between those who eagerly endorsed the 2010 elections, and those who came only after Aung San Suu Kyi indicated her support.

Those that existed might have concluded that the National League for Democracy (NLD) had lost the battle and so they tried to create a non-NLD third force. In just a year, they were proven wrong. The NLD has become a legal entity and won a landslide in recent by-elections.

This shows how foreigners created a mess. Some do not understand Burma and failed to read the situation correctly. Although they might be well-intentioned, their plans do not help as intended. This is the situation. Those who lend a helping hand should realise that the bad times are not yet over in Burma. The military is still challenging democracy. Dividing the pro-democracy camp is not a good thing.

Most Burmese admire the Asian Tigers. They want to catch up with them quickly. However, material success is not the sole aspiration. Economic indicators should not be the driving factors. Human rights and environmental concerns are an imperative but what they really want is the prosperity of the entire population and a life with dignity. (DS)

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Previous Headlines:

10/05/2012

News – Ethnic nationalities / Border conflict / Ethnic Armies

Peace team set sights on Kachin conflict - AFP/DVB - 10 May 2012

Ethnic groups welcome new gov’t peace team - Mizzima - 10 May 2012

Myanmar leader reshuffles peace team - Bangkok Post - 10 May 2012

70,000 Kachin refugees in desperate need - Karen News – 10 May 2012

Burma Army Intensifies Attacks In Kachin State Despite Reforms - Asian Tribune - 5 May 2012

NDA-K's Ting Ying declares Burma army will wipeout KIA - KNG - 9 May 2012

Burma Army suffers high casualties along Loije route - KNG - 9 May 2012

CNF and government sign 15-point agreement - Khonumthung - 9 May 2012

New CNF-Govt Agreement Defines Terms of Peace Process - Chinland Guardian - 9 May 2012

KNU questions role of Govt’s business linked ‘peace talk’ advisors - Karen News – 10 May 2012

Naypyitaw minister at Panghsang, Mongla - S.H.A.N. - 10 May 2012

Storm-Hit Villagers Still Struggling in Chin State - Chinland Guardian - 8 May 2012

News – General& International

Human rights violations continue in Burma: report - Mizzima - 10 May 2012

Death sentence of torture victim condemned: AHRC - Mizzima - 10 May 2012

Burma’s Reforms Leave Forgotten Political Prisoners -

Burma suffering from huge shortfall in HIV and Aids drugs, warn doctors - The Guardian- 9 May 2012

Farmers Still Oppressed, Despite New Government - Narinjara – 10 May 2012

Burmese drug outlaw transferred to China - Mizzima - 10 May 2012

Mekong panel calls for construction freeze - Mizzima - 10 May 2012

News – Government / Political Parties

NLD to hold first party conference - Mizzima - 10 May 2012

Pledge to legalize Student Union - Mizzima - 10 May 2012

USDP campaigns for next election in Maungdaw - KPN - 9 May 2012

News – Business / Economy / Industry

Commodity Prices, Cronyism Threaten Burma’s Economy: UN - Irrawaddy –

Myanmar villagers want share of energy bonanza - AFP – 9 May 2012

Analysis / Opinion

Myanmar: The milestones ahead - By S K Chatterji - Reuters - 9 May 2012

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