BI Weekly No. 287

July 6th - July 12th, 2006

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

Inside

Border

International

Six Karen villagers including a Christian pastor from Bo Kone village in Tawkywe-inn Township in eastern Pegu Division, were arrested at their homes and sent to Khamti

Jail in northern Burma , on suspicion of being hardcore supporters of the Karen National Union (KNU).

Bo Kone Village is among one of the ten villages which were destroyed by the military which accused the villagers of having contacts with the rebels and it was forcibly relocated just before the SPDC Information minister Kyaw San's visit to Karen State with journalists during last month.

“Six Karen villagers sent to remote Khamti Jail in northern Burma ” Democratic Voice of Burma , July 10, 2006

New regulation for Bank to avoid financial crisis

The Central Bank of Burma has set a minimum ratio of the paid-up capital against deposit amount for private banks to prevent probable financial risk, according to Weekly Eleven News. The new regulation states that the paid-up capital of bank shall be 10 times the deposit amount.

All banks' paid-up capital was designated as seven times the deposit after the outbreak of Burma 's financial crisis in 2003. Before the crisis, there had been no such limit.

With the take-over of the three banks by the government and the merger of three other cooperative banks in recent years, there remained 15 of private banks in operation as of the end of 2005. There are also five main state-owned banks known as the Central Bank, Myanmar Economic Bank, Myanmar Foreign Trade Bank, Myanmar Investment and Commercial Bank and Myanmar Agricultural and Rural Development Bank.

“ Myanmar sets bank regulations to prevent financial risk” Xinhua General News Service, July 11, 2006

“Realizing the national development endeavors and sincerity of the government, the entire people and the Tatmadaw (Armed Forces), 848 members of Shan State Army-South … returned to the legal fold,” official The New Light of Myanmar reported on July 8.

It was also reported that the group of defectors, led by SSA-S Col Moengzuen, commander of Brigade 758, surrendered to the State Peace and Development Council with scores of arms, including heavy weapons, following peace talks with the Burma Army's eastern command last week.

The SSA-S disputes, according to its early report, these figures were about 60,and it later turned out to be around 30.

Col Moengzuen was previously involved with a group of Shan in exile conducting a preliminary census prior to forming an independent Shan State in 2004. The following year, he supports the Interim Shan Government, which declared a Federated Shan State in April 2005.

These actions, taken independent of the SSA-S leadership, led government troops to respond with increased military campaigns in the region.

“Shan rebels dismiss claims of mass defections”, The Irrawaddy, July 10, 2006

Thai Army call Burma to response for shooting helicopter

Thai military authorities were still awaiting a response from Burma on a proposal to discuss an incident in which Thailand says Burmese forces fired at a Thai helicopter.

Thailand says small arms fire from Burma hit and damaged a Thai supply helicopter as it was flying over the Pangmapa district of northern Thailand 's Mae Hong Son province the Shan State border on July 10. It was able to land safely at a military base in Pangkong village and nobody was hurt.

The Thai Third Army has lodged a strong protest over the incident and called for the punishment of those responsible and the payment of compensation for the damage incurred by the helicopter.

The incident recalled a similar case in August, 1997, when a Thai helicopter was shot down by Burma Army fire near Mae Sot on Thailand 's border with Karen State . The two pilots and two Thai soldiers died in the crash.

“Thais demand talks on helicopter incident,” The Irrawaddy , July 12, 2006

Nasaka, a border security force, has been holding basic military training in its respective areas since 7 July 2006 for female dependents of Nasaka officers in Arakan State .

Nasaka sources report that 320 females, mostly from family members of Nasaka, are currently attending the training being held at nine Nasaka regional area headquarters, and Nasaka central headquarters in Kyigan Bying, Maungdaw, a western border town of Burma .

The training began on July 7 and will continue for one month. The trainees will learn such methods as the use of small arms in battle, said the Nasaka source.

The basic military training for women is intended to allow the females to hold up the rear and defend headquarters while the Nasaka soldiers are away on the battle front lines.

“Over 300 Females Attend Nasaka Training”, Narinjara News, July 12, 2006

US House extend sanctions on Burma another year

The U.S. House of Representatives voted to extend sanctions on Burma for an additional year.

"The Burmese government has an egregious record of human rights abuses," House Ways and Means Chairman Bill Thomas, a California Republican, said in a statement after the voice vote. "Continued U.S. sanctions on Burmese imports send an appropriate message that these violations of basic human rights will not be ignored."

The bill approved by the House will give Congress the option to annually extend them for two additional years.

“House extends sanctions on Myanmar ” Reuters, July 11, 2006

Thailand studies the feasibility of investment in Mergui and Tavoy

The National Economic and Social Advisory Council (Nesac) is making a feasibility study of tourism and fisheries investment in Burma 's Tavoy and Mergui townships, opposite the western provinces of Ratchaburi and Kanchanaburi of Thailand.

The study follows a recent request from local businessmen, who said cross-border investments would generate economic growth and improve the lives of people in the western region.

The Kanchanaburi-Tavoy highway, a joint venture between Thai contractors and Burmese military authorities, would open the area up to investment and development. the construction should have started several years ago but was delayed because of the Thai companies' financial problems and lack of support from the Thai government.

Under the Burmese government's economic development policy, Mergui would be developed into a regional centre for the fishery industry. The town also had long beaches that could compete with Thailand 's famous beaches in Phuket and other islands.

However, Thai businessmen could possibly be left behind because the Burmese prefer investors from countries other than Thailand .

Investors from Malaysia , Singapore , South Korea and Japan already had joint investments with local businessmen and Burmese authorities in Tavoy and Mergui.

“Nesac studying Burma townships”, Bangkok Post, July 10, 2006