BI Weekly No. 268

February 23rd - March 1st, 2006

The BI Weekly archive is available on our website: www.burmaissues.org

Inside

41 anti- Muslim rioters arrested
Burma stops allowing ICRC visits in prisons
Exploration of three new offshore blocks in Burma
Economic growth claimed by SPDC

Border

International

Indonesian FM remains silent in Burma question
India gesture to the Junta
Suu Kyi wins Olof Palme Prize 2005
Cooperation between Burma and South Korea grows

* denotes BI commentary

Burmese authorities arrested 41 people in Chauk, Magwe Division. They got caught after anti- Muslim riots.

First, 14 people became arrested by police officers and sentenced to two years in Thayet prison. Further 27 people are still in custody of the Magwe police. The 14 already sentenced people had no chance to see a lawyer, local sources told.

The riots started in Ushik Kone village in Sin Phyu Kyun Township , Magwe division on February 16 and fast spilled over to Salin, Pwintphyu and Chauk townships within days. Since then, several people became injured, Mosques, shops, and houses were destroyed.

"Burmese military arrest 41 over anti-Muslim riots", Mizzima News, February 28, 2006.

The Junta hinders the work of international NGOs. Currently, the Red Cross is not allowed to visit the 90 prisons and labour camps that they were working with before, anymore.

There was no specific reason given for the prohibition of the visits that were going on since 1999. Prior to the denial of authorization, the ICRC had made 453 visits to prisoners and two to Aung San Suu Kyi.

There are around 1100 political prisoners in Burma but exact numbers became never released by the ICRC. Obviously the work of the ICRC became more difficult after the damning of Khin Nyunt. This happens although the ICRC works confidential with facts and information of Burma . They even tried to engage with the government affiliated organisations, like the Myanmar Red Cross or Myanmar Women's Federation.

Since Nyunt's removal travel bans and other restrictions have been laid on several NGOs, including the World Food Program and the Global Fund which then stopped supporting of Burma . The ICRC is negotiating for a solution, but is hindered by the move of the capital. No one knows how long the process will take. During this time the imprisoned people have even more to suffer.

Pinheiro, UN envoy to Burma , said that the ban on the ICRC is an evidence for the worsening of the situation inside Burma .

"Red Cross says Myanmar junta stops prison visits", Reuters, February 26, 2006

Exploration of three new offshore blocks in Burma

Together with Petronas, the Myanmar Oil and Gas Company is exploring three more offshore blocks for drilling gas on the southern Tenasserim coast. There will be blocks M-16, M-17 and M-18, with areas ranging from about 13,000 square-kilometers (sq-km) to 14, 000 sq-km. The recovery has begun this week and the survey will last over a month until late March. Petronas had already been involved in another field in the same area.

They are not the only firm investing in Burma 's oil. There has been an increased engagement in oil and gas exploration in Burma . Thailand 's PTTEP, for example, has covered a number of blocks including M-3, M-4, M- 7, M-9 and M-11 under contracts.

A consortium comprising South Korea's Daewoo International, South Korea Gas Corporation, the ONGC Videsh Ltd of India and the Gas Authority of India are involved in gas exploration at block A-1 off Burma's western Rakhine coast since 2000. There a huge field (up to 14 trillion cubic feet of gas) was discovered.

Chinese and Singaporean companies are also engaged in oil and gas exploration in some onshore and offshore areas. Burma has also further negotiations with China and India .

Involved companies come mainly from Australia , Britain , Canada , China , Indonesia , India , South Korea , Malaysia and Thailand . With the produced 7.48 million barrels of crude oil and 10.69 billion cubic meters (BCM) of gas Burma erned over $ 1Billion in the last fiscal year.

"Three more offshore blocks in Myanmar under gas exploration" Xinhua General News Service, February 26, 2006

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Economic growth claimed by SPDC

This would mean there was a bigger rise in Burma than in China with 8.5% the global leader, according to the Asian Development Outlook 2005, produced by the Asian Development Bank.

They expect that the actual growth rates could be much lower than predicted because of high inflation, lagging income levels and declines in power consumption and fertilizer in the agricultural sector which is the country's main economic motor.

According to his figures, the country exported $2.77 billion in goods in 2005, while the value of imported goods stood at $1.6 billion which would mean a plus of over 1 million US $.The numbers are probably that high because they calculate at constant price instead of current or market price, where the last is the realistic with real every day prices.

Also the covered exchange rate reality is a problem. Officially, the 6 Kyat are worth one dollar but in the black market one dollar makes to 1,163 Kyat which also covers the economic reality inside Burma and makes it difficult for economists to calculate and analyse Burma 's economy. Economic analysts in Rangoon expects the actual growth rate for 2005 to be close to 1.5 percent

"Junta claims substantial economic growth in 2005", Irrawaddy , February 24, 2006

A group of Thai senators plans to resubmit an official letter of inquiry to the Ministry of Energy of Thailand urging the disclosure of details about a proposed dam project on Burma 's Salween River , after a previous request was denied in a meeting with environmental groups and representatives of the Electricity Generating Authority of Thailand on February 28. The company claimed that it could not discuss without getting permission from the Burmese government.

Senators sought details of a memorandum of understanding between Thailand and Burma , signed in December 2005, for the construction of a hydroelectric dam on the Salween River in Karen area.

Their actions were prompted by an unofficial report by local environmentalists that ethnic minority populations had fled the proposed construction area for Mae Hong Son in Thailand and could be adversely affected by the dam project.

The Hat Gyi dam, the first to be built, will be located on the Salween in Karen State . the project has drawn strong protests from environmentalists and human right activists concerned by the potential environmental impact to the region and the effect on the livelihood of local villagers.

"Salween dam project raises objections in Thai Senate", Irrawaddy, March 1, 2006

At least 10 soldiers from Burma and three Indian separatists were killed and several others from both sides were injured in fighting inside Burma .

The fighting between the soldiers and rebels of the separatist National Socialist Council of Nagaland took place in the thick jungles of Burma 's northern Sagaing Division. One of their bases was destroyed by Burmese soldiers, according to the rebel leader.

The rebels are fighting for an independent tribal homeland in India 's northeastern state of Nagaland, which borders Burma . The militants have at least at least 50 camps with around 7,000 rebels entrenched in fortified bunkers in Burma 's thick jungles to evade Indian soldiers.

In an attack last month on rebel bases by Burma troops, 15 soldiers and six rebels were killed.

"13 killed in Myanmar attack on Indian separatists: rebels", Agence France Presse, February 28, 2006 .

Bangladesh FM is unhappy with slow repatriation of Burmese refugees

Officials in Dhaka have expressed their frustration over the slow repatriation of Burmese refugees living in long-term camps in Bangladesh 's Cox's Bazaar district.

Bangladesh 's foreign minister, M Morshed Khan, reportedly told the country's new United Nations High Commissioner for Refugees representative, Pia Prytz Phiri, he was unhappy with the process. Phiri said she would look into the matter.

UNHCR has started the voluntary repatriation of 236,618 of the 250,000 refugees in Bangladesh .

"Dhaka frustrated with slow repatriation of Burmese refugees", Mizzima News, February 23, 2006.

Indonesian FM remains silent in Burma question

On the 1 st March, the Indonesian President Susilo Bambang Yudhoyono met with the Junta leader Than Shwe. This was part of his two days visit at Rangoon where he tried to avoid the ‘development to democracy' theme but instead concentrated on bilateral cooperation between the two countries. He also has no plans to meet the oppositional leaders. Even the denial of the Malaysian FM was not on the agenda.

One spokesman of the Indonesian embassy confirmed that this is ‘only a state visit to discuss things between the two countries, not other items'. In contrast, presidential spokesperson Dino Djalal said the Indonesian president would address the junta's promise to restore democracy to Burma . But there was no confirmation by Yudhoyono. He just said both had signed a Memorandum of Understanding for future bilateral relations.

On the 2 nd March, just before leaving, the Indonesian delegation including Coordinating Minister for Economic Affairs Boediono, State Secretary Yusril Ihza Mahendra and Foreign Minister Hassan Wirajudawere met members of Rangoon 's Indonesian community. This means, that there was no reaction in relation to the petition of the Indonesian Caucus on Myanmar ( Burma ) to urge the junta to move to democracy and release their prisoners. The NLD also said there was no try by the Indonesian PM to contact them. Yodhoyono got harsh critics from his home press agencies.

"Democracy not the Issue as Indonesian leader visits Burma ", Irrawaddy , March 1, 2006

India gesture to the Junta

The first visit of an Indian Head of State in Burma will be a further step in the Indian ‘look east' policy. On March 8, President A.P.J. Abdul Kalam will hold talks in Rangoon with Burma 's military leader Than Shwe before traveling to Mandalay and Bagan's Buddhist temples.

Kalam is probably not the person who aims for big agreements but the journal is an important gesture after Than Shwe's path-breaking visit to India in October 2004. A further strengthening of the bilateral relations can be expected.

After 1988 India positioned itself against Burma and Aung San Suu Kyi who studied in Delhi . The growing influence of China in the region changed the position of India in the midst 1990s creating better military and economic relations. Hindering China to increase influence weights more than the illegitimacy of a regime and justifies this visit which is demanded to be postponed by Suu Kyi supporters. Those see the Indian political position as opportune.

Another reason for the closer relations are that the military co-operation with Rangoon is considered important for reining in separatist groups of Indians northeastern states and across the border in Burma, and for getting control in the drugs trade.

"Indian president's Yangon trip seen as important gesture", South China Morning Post, February 24, 2006

Suu Kyi wins Olof Palme Prize 2005

On the occasion of today's award of the Olof Palme Prize 2005 to Daw Aung San Suu Kyi, acknowledging her tireless peaceful struggle for democracy and human rights in Burma , the European Union voices her deep regret that Aung San Suu Kyi remains deprived of her personal freedom which will prevent her from accepting the award in person.

The European Union (EU) urges the State Peace and Development Council (SPDC) to release Aung San Suu Kyi and all other political prisoners immediately. The EU remains gravely concerned over the human rights situation in Burma and wishes to reiterate its commitment to supporting national reconciliation and respect for human rights and democracy in Burma . The EU again calls upon the SPDC to enter into a genuine dialogue with the National League for Democracy and with ethnic representatives and remains strongly committed to addressing the needs of the poorest in Burma , in particular in the areas of health, education and community development.

The Acceding Countries Bulgaria and Romania, the Candidate Countries Turkey, Croatia* and the former Yugoslav Republic of Macedonia*, the Countries of the Stabilisation and Association Process and potential candidates Albania, Bosnia and Herzegovina, Serbia and Montenegro, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine and the Republic of Moldova align themselves with this declaration.

* Croatia and the former Yugoslav Republic of Macedonia continue to be part of the Stabilisation and Association Process.

"Declaration by the Austrian Presidency of the Council of the European Union 2006 regarding the award of the Olof Palme Prize 2005 to Daw Aung San Suu Kyi ", CFSP Statement, February 2, 2006

Cooperation between Burma and South Korea grows

Burma and South Korea will cooperate in a project of "Specialized Complex of Agriculture" under mutually beneficial basis to boost the development of Burma 's agriculture through agricultural research, human resources development, growing of agricultural crops on commercial scale for export, dissemination of agricultural technique to Burma experts and exchange of information and communications technology.

Discussions have been conducted over the move between the Myanmar Agriculture Department, the Chonnam National University and the KBH Company of (South) Korea during a recent visit to Rangoon by the South Korean representatives; the Flower News quoted the Burmese department as saying.

The South Korean International Cooperation Agency ( KOICA) will also fund Burma 's development programs, which cover the sectors of health, agriculture, electric power and rail transportation, with 2 million U.S. dollars during this year.

"Myanmar, S. Korea to cooperate in special agricultural project", Xinhua General News Service, February 26, 2006