News & Articles on Burma-Thursday, 06 January, 2011

News & Articles on Burma
Thursday, 06 January, 2011
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Tatmadaw Reinforces Troops in Ethnic Areas
Farmers Protest to Demand Return of Land
Burma Army on alert after UAVs invaded its air force
Are UAVs Watching Burma?
Farmers Protest to Demand Return of Land
Large Natural Gas Deposit Discovered: State Media
Sinopec makes Burma find
Sinopec finds large oil and gas deposits in Myanmar
FEC May Be Dropped in Burma
Industry roadshow to Burma this month
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Tatmadaw Reinforces Troops in Ethnic Areas
By SAW YAN NAING Thursday, January 6, 2011

The Burmese regime has been reinforcing its troops in several areas where ethnic armed groups that rejected the border guard force (BGF) order are based, according to ethnic sources.

Armed reinforcements have been reported in southern Karen State and in central and southern Shan State in eastern Burma since early December.

Sporadic fighting has been reported in recent weeks between the Tatmadaw [Burmese government troops] and armed ethnic groups such as the the Karen National Union, the Democratic Karen Buddhist Army (DKBA) Brigade 5, the Shan State Army–North (SSA-North) and Shan State Army-South (SSA-South).

Speaking with The Irrawaddy on Thursday, Brig-Gen Saw Lah Pwe, the commander of DKBA Brigade 5, which recently rejected the junta's plan to merge its battalions with Burmese army units in a BGF, said the regime is continuously reinforcing its units in Myawaddy and in Wah Lay, close to Brigade 5 headquarters, where he estimated Tatmadaw troop strength has increased by 700 men.

“They have a plan to totally defeat us and drive us out of our territory,” he said. “In preparation, they are reinforcing their troop strength near our bases.”

Major clashes between Burmese government forces and Saw Lah Pwe’s troops broke out on Nov. 8 in and around the Burmese border town of Myawaddy, forcing some 20,000 townspeople to flee to the Thai side of the border seeking refuge. Sporadic skirmishes have continued since then.

Saw Lah Pwe said that the regime is reinforcing its battalions in ethnic areas in preparation for further combat.

Win Yan Naing, a BGF soldier who defected to DKBA Brigade 5 on Jan. 5, said that he was disillusioned as a BGF soldier because he was forced to march to the front line during the fighting and act as a human shield.

“During any fighting, the government troops stay behind and order us [BGF fighters] to go ahead,” he said. “It's not fair, but we have to follow orders.”

Meanwhile, armed reinforcements were also reported in central and southern Shan State where SSA-North and SSA-South are active, said Shan sources.

Saengjuen Sarawin, an editor with the Thailand-based Shan Herald Agency for News (SHAN), said that the reinforcements began arriving in December in Namhsan Township. He estimated a combined total of 1,000 fresh troops.

Lt-Gen Yawd Serk, the commander of the SSA-South, told SHAN that the reinforcements are likely part of the Burmese junta’s strategy to target units of the ethnic Wa army, the United Wa State Army (UWSA), which are based in southern Shan State.

Saengjuen Sarawin said the regime's aim is to cut off communications and supply routes between UWSA units in northern Shan State and those based in in southern Shan State.

The UWSA is the largest ethnic armed group in Burma with 30,000 fighters. In 2010, it categorically rejected Naypyidaw's proposal of a joint BGF.

Saengjuen Sarawin, however, said that while the Burmese commanders are clearly threatening the armed ethnic groups by making preparations for war, they will still continue to persuade them to accept their BGF proposal.

Observers say the Burmese army will selectively attack weaker or isolated armed ethnic groups while consulting with the stronger ones.

According to a report by the Thailand-based Kachin News Group (KNG), the junta also began dispatching fresh troops and munitions in Kachin State in late November.

KNG said eye witnesses had confirmed that several vehicles carrying military supplies arrived in Bhamo Township in Kachin State on Nov. 30 from Burma’s second largest city, Mandalay. They said that the military trucks continued to Laiza, close to the headquarters of the Kachin armed group, the Kachin Independence Organization (KIO), which is based at the Sino-Burmese border.

The KIO is the second largest ethnic armed group in Burma with some 10,000 fighters. It, too, has rejected the junta’s BGF plans.

Observers say that the BGF issue remains a major challenge and dilemma for the regime in 2011 even though the junta has been attempting to persuade the ethnic armed groups to join the BGF since April 2009.
They said war would likely break out if no alternative settlement is reached.

While the regime reinforces its troops in ethnic areas, sources report that several of the ethnic armies have formed closer ties and established an alliance aimed at repelling future Tatmadaw attacks.

On Jan. 3, an ethnic Arakanese armed group, the Arakan Liberation Army (ALA) attacked a Tatmadaw base in Paletwa in Arakan State, western Burma. One ALA soldier and four government soldiers died in the clash, according to Khine Thu Kha, a spokesperson for the ALA.
http://www.irrawaddy.org/article.php?art_id=20476
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Farmers Protest to Demand Return of Land
By THE IRRAWADDY Thursday, January 6, 2011

RANGOON — Around 200 farmers peacefully demonstrated for two hours in front of the office of the General Administrative Department of Eastern Rangoon District this morning to protest land confiscations by local authorities and to demand the return of their land by 11 private companies.

According to one of the farmers who took part in the protest, 5,500 acres of land previously held by farmers from at least seven villages in Southern and Eastern Dagon Myothit townships have been transferred to the companies since 2008 under orders from Burma's military junta.

The farmers were originally paid 50,000 to 100,000 kyat (US $59-118) per acre of land as compensation, but were also told that they would be able to return to work on the land on a contract basis once it had been prepared for cultivation. Two years later, however, much of the land is still not ready, they said.

“We haven't worked for two years. That's why we came to demonstrate,” said another farmer who joined today's protest, which began at 10 am and ended at noon.

“They agreed to provide loans and heavy equipment such as tractors and we were supposed to produce 3,360 kilograms of rice per acre. They would keep 60 percent of the harvest, and we would get the rest,” said the farmer, speaking on condition of anonymity.

Although some farmers have started working in the fields under the agreement made with the companies, the majority are still waiting. Meanwhile, even farmers who are back on their land say that they are worried that they may not be allowed to stay in the future if the companies decide to bring in farm laborers from elsewhere—something that has reportedly already happened in some areas.

For the farmers still waiting to get back on the land, the more immediate concern is how they will be able to support themselves. They said that if the companies are not going to use the land, they should let the farmers return so they can make a living.

“If we don’t have a chance to work in our fields, we won't have anything to eat. We will give the companies their money back if they let us return to our farms,” said another one of the protesting farmers.

The companies involved are some of Burma's largest privately owned enterprises, including Htoo Trading, Max Myanmar, Eden, Asia World, Shwe Nagar Minn and Zay Kaber. All are owned by businessmen closely associated with the Burmese regime, including leading members of the junta-backed Union Solidarity and Development Party, which claimed a landslide victory in Burma's recent election.

The demonstration was organized by Pho Phyu, a lawyer representing the farmers.

“We will use the 1975 Farm Act and send an open letter to [junta leader] Snr-Gen Than Shwe, the Ministry of Agriculture and Irrigation and the Department of Farm Enterprises,” said another lawyer representing the group.
http://www.irrawaddy.org/article.php?art_id=20472
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Burma Army on alert after UAVs invaded its air force
Thursday, 06 January 2011 14:11 Hseng Khio Fah

Air Force of the Burma’s ruling military junta has recently given a tall directive to battalions in Shan State East’s Kengtung township under Triangle Region Command, to arm their weapons to be ready to shoot any type of plane that flies over their army bases, according to sources from Kengtung.

[RQ-4A Global Hawk, Unmanned aerial vehicle (UAV) (Photo: www.armybase.us)]

RQ-4A Global Hawk, Unmanned aerial vehicle (UAV) (Photo: www.armybase.us)
The directive followed invasions of UAV (Unmanned Aerial Vehicles) on the Burma Army’s radar station based in Loi Mwe, 20 miles southeast of Kengtung and 82 miles north of Maesai, Thailand on December 21 at around 11:00 and again on 1 January 2011 in Shan State South’s Namzarng-based air force.

“The planes appeared from somewhere along the Thai-Burma border areas, but it was not known who the owners were. It flied about 3 minutes long with the height of 5,000 ft. It was seen by some officers from air force based on the Loi Mew Mountain,” said a source close to junta in Kengtung.

The directive therefore was passed to all soldiers to inform relevant military headquarters and air force in time if they see more planes come up again. In addition, the soldiers were also ordered to arm all their anti-aircraft guns and to place Igla Missile on 24 hour-standby.

“In order to be line with the order, they [the junta authorities] are also planning to give military training,” the source added.

Regarding the reason for the UAV movements, some border watchers on the Thai-Burma border commented that the planes would come to check poppy plantations being planted along the border as it is poppy growing season. Some people in Burma thought that the UAVs also came to investigate Burma Army’s movement.

While it is not known who sent the UAVs, neighboring countries of Burma that have them are Malaysia, Thailand, Vietnam, China and Hong Kong. http://www.shanland.org/index.php?option=com_content&view=article&id=3397:burma-army-on-alert-after-uavs-invaded-its-air-force-&catid=86:war&Itemid=284
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Are UAVs Watching Burma?
By KO HTWE Thursday, January 6, 2011

An unidentified flying object assumed to be an Unmanned Aerial Vehicle (UAV) was spotted by soldiers from the Burmese army on Saturday flying over eastern Shan State.

No country or organization has accepted responsibility for the mysterious aircraft, and the Burmese Air Force has reportedly been ordered to shoot it down if spotted again in Burmese airspace, according to the Thailand-based Shan Herald Agency for News (SHAN).

Several Burma observers have said that the unarmed drone is monitoring military maneuvers and opium production in the region. December and January mark the season for harvesting opium poppies.

According to Khuensai Jaiyen, the editor of SHAN, the UAV flew across Namhsan Township on Saturday, and was identical to a UAV spotted by government troops in the last week of December over Kengtung Township.

“I spoke with an official from the Shan State Army-South [SSA-South] and he said that the UAV is causing great concern within the Burmese army,” said Khuensai Jaiyen. “The SSA-South do not believe they are being targeted, but would not say who they believe is operating the small aircraft.”

Three years ago, a similar incident took place near Ho Mong in southern Shan State when the Burmese army seized and destroyed an unidentified UAV, he added.

“When I asked Thai military sources, they confirmed that they know of the incident, but say the UAV is not theirs,” the SHAN editor said.

UAVs are aircraft that are flown without a human crew and are largely used for military applications. They are also known as Remotely Piloted Vehicles or Unmanned Aircraft Systems. According to Wikipedia: “UAVs come in two varieties: some are controlled from a remote location, and others fly autonomously based on pre-programmed flight plans using more complex dynamic automation systems.
http://www.irrawaddy.org/article.php?art_id=20473
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Farmers Protest to Demand Return of Land
By THE IRRAWADDY Thursday, January 6, 2011

RANGOON — Around 200 farmers peacefully demonstrated for two hours in front of the office of the General Administrative Department of Eastern Rangoon District this morning to protest land confiscations by local authorities and to demand the return of their land by 11 private companies.

According to one of the farmers who took part in the protest, 5,500 acres of land previously held by farmers from at least seven villages in Southern and Eastern Dagon Myothit townships have been transferred to the companies since 2008 under orders from Burma's military junta.

The farmers were originally paid 50,000 to 100,000 kyat (US $59-118) per acre of land as compensation, but were also told that they would be able to return to work on the land on a contract basis once it had been prepared for cultivation. Two years later, however, much of the land is still not ready, they said.

“We haven't worked for two years. That's why we came to demonstrate,” said another farmer who joined today's protest, which began at 10 am and ended at noon.

“They agreed to provide loans and heavy equipment such as tractors and we were supposed to produce 3,360 kilograms of rice per acre. They would keep 60 percent of the harvest, and we would get the rest,” said the farmer, speaking on condition of anonymity.

Although some farmers have started working in the fields under the agreement made with the companies, the majority are still waiting. Meanwhile, even farmers who are back on their land say that they are worried that they may not be allowed to stay in the future if the companies decide to bring in farm laborers from elsewhere—something that has reportedly already happened in some areas.

For the farmers still waiting to get back on the land, the more immediate concern is how they will be able to support themselves. They said that if the companies are not going to use the land, they should let the farmers return so they can make a living.

“If we don’t have a chance to work in our fields, we won't have anything to eat. We will give the companies their money back if they let us return to our farms,” said another one of the protesting farmers.

The companies involved are some of Burma's largest privately owned enterprises, including Htoo Trading, Max Myanmar, Eden, Asia World, Shwe Nagar Minn and Zay Kaber. All are owned by businessmen closely associated with the Burmese regime, including leading members of the junta-backed Union Solidarity and Development Party, which claimed a landslide victory in Burma's recent election.

The demonstration was organized by Pho Phyu, a lawyer representing the farmers.

“We will use the 1975 Farm Act and send an open letter to [junta leader] Snr-Gen Than Shwe, the Ministry of Agriculture and Irrigation and the Department of Farm Enterprises,” said another lawyer representing the group.
http://www.irrawaddy.org/article.php?art_id=20472
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Large Natural Gas Deposit Discovered: State Media
By WAI MOE Thursday, January 6, 2011

Burma’s state-run media announced on Thursday that large natural gas deposits have been found in central Burma in a block being developed by a Sino-Burmese joint venture, in the biggest onshore discovery since the country opened its energy sector to foreign investment in 1988.

The New Light of Myanmar reported that recent test runs of oil wells in Pahtolon, in Magwe Division's Gangaw Township, has rich oil and gas deposits. The wells are operated by the state-owned Myanmar Oil and Gas Enterprise and SIPC Myanmar Petroleum Ltd, owned by Sinopec International Petroleum (SIPC), the international trading arm of Chinese energy giant Sinopec Corp.

The Burmese Ministry of Energy and SIPC signed a production-sharing contract in September 2004. The discovered deposit contains an estimated 909 billion cubic feet of natural gas and 7.16 million barrels of condensate in Block D, The New Light of Myanmar reported.

All state-run newspapers ran reports of the newly discovered oil and gas deposits on their front pages, highlighting the significance of this major find for Burma's military rulers.

SIPC has not yet announced the discovery on its official website, but in statements issued in August 2010, the company reported that the presence of high-yield gas flow in Pahtolon Well-2ST, in addition to a previous discovery in Pahtolon Well-1, suggested huge potential in Block D.

Sixteen Chinese multinational companies, including the three major Chinese oil and natural gas companies—SIPC, China National Petroleum Corporation and China National Offshore Oil Corporation—have invested in 21 onshore and offshore oil and natural gas projects in Burma, according to the US-based EarthRights International.

The Burmese junta earned an estimated US $4 billion by selling natural gas from the Yadana and Yetagon offshore fields to Thailand in 2010.
http://www.irrawaddy.org/article.php?art_id=20475
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Sinopec makes Burma find

Sinopec has confirmed a major gas discovery in Burma, but needs approval from Burmese authorities to endorse the final reserve size before public announcement.

Xu Yihe 06 January 2011 07:43 GMT

Burma media reported that Sinopec International Petroleum Corporation (SIPC) has discovered proven reserves of 909 billion cubic feet of gas and 7.16 million barrels of condensate in Pahtolon oilfield in central part of the country.

While confirming the discovery, a Sinopec official said the reserve size was slightly lower than reported.

“The reserves will be announced after being confirmed by government authorities,” he told Upstream.

The discovery is made by SIPC Burma Petroleum Co. Ltd. a joint venture between SIPC’s joint venture between state-owned Myanma Oil and Gas Enterprise.

The official said more exploration is being planned at the field.

Sinopec’s latest gas discovery will further consolidate China’s energy position in Burma, where other Chinese oil majors including PetroChina and China National Offshore Oil Corporation also have upstream interests.

The most ambitious project is for PetroChina to build two parallel oil and gas pipelines between Burma and China’s Yunnan province.

PetroChina has secured a sales contract to get gas from blocks A-1 and A-3, which have proven reserves of up to 10 trillion cubic feet, with up to 8.6 TCF recoverable.

Published: 06 January 2011 07:43 GMT | Last updated: 06 January 2011 08:57 GMT
http://www.upstreamonline.com/incoming/article240762.ece
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Sinopec finds large oil and gas deposits in Myanmar
YANGON | Thu Jan 6, 2011 1:03am EST

YANGON Jan 6 (Reuters) - Sinopec International Petroleum has discovered estimated deposits of 909 billion cubic feet of gas and 7.16 million barrels of condensate in central Myanmar, state media in Myanmar reported on Thursday.

The company, the international trading arm of China Petroleum & Chemical Corp (Sinopec) (0386.HK), made the find in the Pahtolon oilfield after extensive testing and planned to carry out more in the future, official newspapers said. (Reporting by Aung Hla Tun; Writing by Martin Petty; Editing by Alan Raybould) http://www.reuters.com/article/idUSSGE70503K20110106?rpc=401&feedType=RSS&feedName=hotStocksNews&rpc=401
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FEC May Be Dropped in Burma
By WAI MOE Thursday, January 6, 2011

With US dollar and Foreign Exchange Certificate (FEC) exchange rates unstable for an extended period, rumors are circulating among the business community in Rangoon that the military government may withdraw the FEC after nearly 18 years on the market.

The exchange rates have been falling against the Burmese currency, the kyat, since late November, and black market rates have decreased to 820 kyat for the dollar while the FEC is selling at 780 kyat. “Export earnings,” on the other hand, are currently valued at 900 kyat to the dollar on the black market.

Burmese FEC notes currently in circulation.
“Export earnings” is the term given to hard currency that is banked in Burma by companies that are permitted to trade by the Ministry of Commerce. Although their value is estimated at black market rates, it is deposited and taxed at the official rate of exchange.

Rangoon-based businessmen said the falling FEC and dollar rates come soon after Burma’s biggest gem fair in Naypyidaw in November when the Burmese junta and associated companies reportedly earned about $ 1.4 billion from Asian customers.

However, other observers said the low exchange rate could be related to money laundering in the country following the season of opium production.

“I heard that a large amount of black money in the country's financial market has made the kyat firm,” said a business correspondent with a Rangoon-based weekly.

The FEC was firstly introduced in 1993 when the military junta released it in a bid to get foreign currency from tourists and foreign investors. The FEC was designated as a substitute for US dollars and could be exchanged at a fixed rate of 6 kyat per dollar and 450 kyat for an FEC.

Although the black market rate is significantly dominated by the country’s trading, Burmese authorities still maintain the official exchange rate pegged at around 6 kyat per dollar.

However, analysts say the FEC is still significantly overvalued against the dollar even though the government had planned to use the FEC as a “Myanmar dollar” at an equal value to the US currency. In recent months however, the FEC rate has been about 40 or 50 kyat lower than the dollar on the black market.

According to a 2008 US State Department report: “Burma’s multiple exchange rates make conversion and repatriation of foreign exchange very complex, and ripe for corruption.”

The situation has a direct impact on tourism enterprises, international NGOs, exporters and other companies and organizations that pay their staff in FECs.

“The FEC rate is so low that hotels and tourism companies are not willing to take FECs from customers,” said a business source who spoke on condition of anonymity. “Now the Myanmar tourism authority has issued a warning to hotels, guest houses and tourism enterprises to accept FECs following tourists’ complaints.”

NGO staffers said they feel that they are losing a percentage of their salary if they get paid in FECs.

“Since the FEC rate dropped, all Burmese staffers at our office are unhappy on pay day. Some say that if they would prefer to received kyat,” said a staffer with a UN agency in Rangoon.

A business source said he and other mid-ranking import/export agents had stopped trading while the FEC and export earnings (export dollars) were so low and were taking a “wait-and-see” approach.

“Cronies such as Tay Za, Nay Win Tun, Zaw Zaw and others are also affected,” said an editor at a business journal in Rangoon.

But even though the dollar and FEC rates are low, consumer prices are still high or even higher, local media reported, which is another reason the public is frustrated over the drop in the exchange rates.

“The dollar has decreased, but prices have not dropped,” one Rangoon resident was quoted as saying in the Weekly Eleven journal. “One person still needs at least 2,000 kyat to eat. Although some import items are cheaper, electronics are not in our budget.”

Burma’s Trade Policy Council, currently chaired by the junta's Secretary-1 Tin Aung Myint Oo, handles export-import licenses, investments and monetary transactions. The council oversees foreign exchange and banking through three state banks, the Myanma Foreign Trade Bank (MFTB), the Myanma Investment and Commercial Bank (MICB) and the Myanma Economic Bank (MEB).

“The MFTB primarily handles foreign currency transactions for government organizations, businesses and private individuals, while the MICB primarily serves companies and joint ventures. MEB handles foreign currency transactions in the border trade regions,” the US State Department reported in 2008.
Copyright © 2008 Irrawaddy Publishing Group | www.irrawaddy.org
http://www.irrawaddy.org/article.php?art_id=20471
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Industry roadshow to Burma this month

* Published: 6/01/2011 at 03:38 PM
* Online news:

The Ministry of Industry will lead Thai business representatives on a roadshow in Burma from Jan 18-22 to encourage increase investment between the two countries, Industry Minister Chaiwut Bannawat said on Thursday.

Mr Chaiwut said the roadshow would include talks to match businesses in Thailand and Burma in various industries, including food, processed rubber and clothing.

The delegation would also meet Burma’s Prime Minister Gen Teng Seng and the ministers of transport and industry. They would seek information on the Burmese government's investment policy and its framework for the development of a deep sea port at Dawei, directly across the water from Kanchanaburi province.

Thai investors were considering investing in iron smelting and petrochemical projects. These plants might not be able to be built in Thailand in the future, he said.

Mr Chaiwut said Prime Minister Abhisit Vejjajiva had discussed investment cooperation with the Burmese leader when he visited Burma late last month. http://www.bangkokpost.com/breakingnews/214751/industry-to-launch-road-show-in-burma