News & Articles on Burma -Wednesday, 31 August, 2011-UZL

News & Articles on Burma
Wednesday, 31 August, 2011
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Behind Burma’s Rising FDI
Parliament rejects reform of emergency act
UNFC Forms Peace Group for Govt. Talks
Burma should review its war-game with ethnic groups
Seize opportunities to regain Burma
China Hands KNU Leader over to Burma
Burmese Parliament rejects motion to repeal Emergency Provisions Act
Burma must consider favorably ethnic people’s proposals for peace-talks
Burma jails man for 10 years for web article
Burma's Tortured Prisoners Can't Wait
Govt Officials Implicated in Car Smuggling Ring
Russian gas giant eyeing Burma
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THE DIPLOMAT
Behind Burma’s Rising FDI
By Jared Bissinger
August 31, 2011

If the headlines are any indication, Burma had a banner year for foreign direct investment (FDI) in 2010-11. It approved investments of almost $20 billion – more than the previous two decades combined, and even more than Southeast Asia’s latest investment darling, Vietnam, approved the same year. Investment came exclusively from Asia, not a surprise given that sanctions and a strong social stigma effectively prevent Western companies from investing. But while the headlines tell a story that seems wholly positive, the details should give rise to a more cautious optimism.

The first thing to note is that the figure of $20 billion is for approved investments – in other words, investors have gotten the OK, but almost none of these projects have actually invested any money yet. Real investment inflows from last year, according to the United Nations Conference on Trade and Development (UNCTAD), were a more modest $756 million, on par with Cambodia’s $783 million and not even a tenth of Vietnam’s $8.2 billion. The figure was also largely in line with Burma’s FDI inflows in the last few years.

In addition, Burma’s approved investments came from a very small number of host countries – seven to be precise. The biggest of these, China, has seen its investment in Burma grow markedly. In the 1990s, Chinese investment was a modest $8.3 million, but the country became the largest investor in the late 2000s, with almost $350 million per year in the last two years with data available, FY2007-08 and FY2008-09 (Burma’s fiscal year runs from April 1 to March 31). The other major sources of investment were South Korea, Thailand and Hong Kong, though most companies investing from Hong Kong are owned by mainlanders. For comparisons sake, Vietnam attracted almost as much approved investment as Burma last year (about $19.5 billion for Vietnam and $20 billion for Burma) but it came from 51 different countries as opposed to seven.

Notably absent from the list of investors was India. As much as New Delhi is vaunted as being China’s strategic rival in Burma, the investment numbers tell a different story – through September 2009, India’s cumulative investment came to just $200,000. While India seems to finally be ramping up its flagship project in the country, the $137 million Kaladan Project, it is, at least in terms of FDI, nowhere near China’s investment in Burma.

So, while approved investment can’t tell us much about FDI in the past, it’s very useful in indicating trends in future investment. If Burma’s approvals from this year are any indication, the country is slated for a number of large, high-profile investments in the extractive and power sector. Of the $20 billion, almost all of it was devoted to projects in these sectors – 58 percent for the extractive industries and 41 percent to power, mostly for a few large dams. The remaining 1 percent was in agriculture and manufacturing. Neither real estate nor hotels and tourism – nor any other sector for that matter – received any approved investments. And while the total amount of approved investments from last year was an aberration, their sectoral distribution wasn’t – over the last decade, 98.7 percent of the FDI went to the extractive and power sectors.

While last year’s heavy concentration of investment in the extractive and power sectors is normal for modern Burma, it’s significantly different from FDI worldwide. Figures from UNCTAD show that last year, only 9.6 percent of FDI was in the extractive sector and only 4.1 percent in power, yet these two sectors practically monopolized Burma’s investment approvals. Manufacturing, which accounts for almost one out of every four dollars of FDI worldwide, was only 0.3 percent of Burma’s totals, while finance, which takes one in five dollars of worldwide investment, received nothing in Burma.

What does this tell us about Burma? Well, the extractive and power sectors (at least the dams) share an important and telling attribute – they’re both ‘globally scarce and geographically concentrated’ resources, according to Prof. Andreea Mihalache-O’Keef. To build a copper mine or a dam, you must go where there is a copper deposit or a suitable river valley. It is, in essence, a seller’s market.

Manufacturers, on the other hand, can invest almost anywhere they’d like, normally choosing a location that offers the lowest costs and greatest benefits – they search for comparative advantage. Countries often compete for manufacturing FDI by trying to offer the most competitive business environment, including reasonable tax and export regimes, efficient infrastructure, and a general ease of doing business. So why aren’t investors in these industries, especially those from Asian countries who don’t have investment sanctions, investing in Burma?

The answer is that Burma isn’t a competitive destination for most kinds of FDI. There are a number of problems, including poor infrastructure, high port costs, intermittent power supplies, currency convertibility issues, and a number of political obstacles to doing business. These challenges are only complicated by the recent and significant appreciation of the kyat, which has gone from around 1000k/USD to less than 700k/USD in the last year, exacerbating an already tough investment climate.

It’s fairly unlikely, then, that investment sanctions by Western countries have significantly hindered Burma’s economic development. Asian countries don’t restrict investment in Burma, yet there are almost no investments from these countries in manufacturing, real estate, or any other sector that is internationally competitive. Instead, investors in these sectors look elsewhere in Southeast Asia, to places like Vietnam, and only venture to Burma for resources and dams. There’s no reason that Western investors would act differently, and, therefore, even without investment sanctions, it’s unlikely that many Western companies would choose to do business there.

Yet the new government gives rise to cautious optimism, with its acknowledgement of economic distresses and very real talk of reforms. With improved accountability and governance, there’s at least the chance that some of the revenue from the looming resource boom will be used for much needed infrastructure and other public investments. These investments could pay important dividends if they improve the country’s ability to attract other types of FDI, especially in labour intensive industries. But a long history of the ‘resource curse’ elsewhere has shown that it may be better to be cautious than optimistic about Burma’s chances of using new resource revenues to promote real economic development.

Jared Bissinger is a PhD candidate at Macquarie University and former fellow at the National Bureau of Asian Research http://the-diplomat.com/asean-beat/2011/08/31/behind-burmas-rising-fdi/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+the-diplomat+%28The+Diplomat+RSS%29
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Parliament rejects reform of emergency act
By AHUNT PHONE MYAT
Published: 31 August 2011

A proposal in the People’s Parliament made by Thingangyun township’s representative Thein Nyunt to revoke the 1950 Emergency Provisions Act has been rejected by a vote in parliament yesterday.

Independent MP Thein Nyint submitted a proposal to the People’s Parliament to abolish the 1950 Emergency Provisions Act, that was adopted under the pretext of an on-going civil war at the time, along with criminal laws relating to it.

His proposal was discussed by four Union Solidarity and Development Party (USDP) representatives and the parliament voted on whether to accept it or not – the results showed there were 336 votes against, 8 in favour and 41 abstaining votes, said representative Pe Than of Myebon township in Arakan State.

“All parliament representatives who discussed about the proposal spoke out against it and the Union Minister Ko Ko insisted that it should be rejected,” said Pe Than.

When the parliament’s speaker asked for U Thein Nyunt’s opinion, he called to parliament to go for a vote ‘democratically’ so the parliament conducting a voting by headcount.

“All 336 representatives from the military and the USDP stood against the proposal,” said Pe Than.

Thein Nyunt said he; “happily accepted the loss.”

He said he understood the rejection of his proposal showed that the situation with the civil war back in 1950 is still continuing, citing discussions by two USDP representatives from Karen State’s Myawaddy and Kachin State.

“According to their discussion, the country is not yet at peace – there are still external and internal destructive elements – so it is necessary to have the [emergency act] under security concerns,” said Thein Nyunt.

The parliament is overwhelmingly dominated by the military either serving or retired, with 25% of seats reserved automatically for the military and alleged widespread vote rigging in favour of the military proxy party the USDP.

The 1950 Emergency Provisions Act and relating criminal laws were passed by a parliament while the country was wracked by civil war as communists and Karen secessionists fought with the Burmese state. Critics allege that it is widely used by the Burmese government to persecute political activists and journalists.

Article 5 of the law makes it illegal to; “spread false news” or to “to rally people” or “to make the public lose trust in the State’s economy.” http://www.dvb.no/news/parliament-rejects-reform-of-emergency-act/17366
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UNFC Forms Peace Group for Govt. Talks
By LAWI WENG Wednesday, August 31, 2011

Leaders of an umbrella organization of ethnic parties, the United Nationalities Federal Council (UNFC), formed a peace talk group last week in preparation for future negotiations with the Burmese government.

Speaking to The Irrawaddy on Wednesday, UNFC secretary Nai Hang Tha said, “There are eight representatives within the group which includes Mon, Shan, Karenni, Chin, Arakanese, Karen, Kachin and Pa-O people.

Nai Hang Tha explained that he will head the group with Colonel Lapai Hla, from the Kachin Independent Army (KIA), acting as deputy.

“We are prepared to talk about equal rights for ethnic people in the country. We will also talk about reforming the new constitution so that a genuine federal union will exist [in Burma],” he said.

“We will ask [the government] to stop their military offensives launched in ethnic areas and announce a nationwide ceasefire. If possible, we will ask them to have tripartite dialogue,” he added.

Leaders of the UNFC said that they want to hold peace talks with the government on the Burmese border or at a location within a neighboring country.

“It is best to talk within neighboring countries if those nations allow us to do so,” said Nai Hang Tha. Or we can talk at the border where there is security for us, like Kachin people have done in the past as they control their area.”

UNFC leaders decided to invite neutral persons who are well respected in the country—including pro-democracy icon Aung San Suu Kyi—to witness talks, and aim to sign an agreement on paper as evidence of their commitment.

The leaders do not want the government to offer peace talks on a group-by-group basis, as they do not believe this can solve problems in the country.

State-run newspaper The New Light of Myanmar reported on Aug. 18 that the government offered an “olive branch” to the armed groups, encouraging them to contact their respective state or division authorities as a first step toward meeting with a union government delegation.

“The government should not divide groups to have peace talks individually because our country's problems are not down to only one group. They need to talk with the UNFC as we represent all the ethnic groups,” said Nai Hang Tha.

The UNFC was formed in February at a meeting in northern Thailand attended by a dozen ethnic groups. These included the Kachin Independence Organization, Karen National Union, Karenni National Progressive Party, Chin National Front, New Mon State Party, Shan State Progress Party, Pa-O National Liberation Organization, Palaung State Liberation Front, Arakan National Council, Lahu Democratic Union, Wa National Organization and Kachin National Organization. http://www.irrawaddy.org/article.php?art_id=21992
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Burma should review its war-game with ethnic groups
By Zin Linn Aug 31, 2011 9:06PM UTC

A 20-minute armed clash occurred on Tuesday between Burmese Army soldiers and the Kachin Independence Army (KIA) at Yinglung Village, near Mungli Hka stream, in Daw-hpum-Yang sub-township, Manmaw (Bhamo) District, in Kachin State, Northern Burma, referring local witnesses Kachin News Group said. Three Burmese soldiers, from the Dawh-pum-Yang-based Infantry Battalion No. 142, were killed in action.

The government soldiers were ambushed by a KIA unit under Brigade 5, said KIA officials.

Also on August 28 and 29, there was a heavy fighting at Lungja Bum Kadawng (Lungja hillside) in N’Mawk (Momauk) Township in Manmaw (Bhamo) Township, in Northern Kachin State, between KIA and government troops. Not less than seven Burma Army soldiers were killed in the battle and more than three injured, quoting local sources Kachin News Group said.

No political dialogue happened in more than 16-year ceasefire time and the KIO was intimidated to remove weapons and transform into the Burmese Army-controlled Border Guard Force (BGF) before the November 7 election in 2010.

The KIO dismissed the BGF plan, saying it cannot accept transformation of its armed wing. KIA officials constantly said the civil war will spread across Kachin and Shan states if the government did not stop fighting upon the KIO.

During the latest series of armed clashes in Kachin state, Burmese armed forces have suffered heavy casualties.

It was biggest defeat of Burmese troops in fighting with the KIA in Kachin State earlier this week, according to KIA officials at the Laiza headquarters in eastern Kachin State.

The August-28/29 skirmishing happened between over 200 government troops, combined with local battalions and the Sagaing-based Light Infantry Division No. 33 and the KIA fighters under Battalion 15 command, KIA officials said.

On 24 June, Union Parliament Speaker Shwe Mann said to parliament representatives in Yangon Region that the battles between the Burmese soldiers and KIA caused fear among the local people as well as in the nation. In that case, Thein Zaw, a member of parliament in Myitkyina, coordinated with authorities concerned and was able to put the situation under control.

He also said, “As a result, the region has restored peace and stability to nearly a full extent. Duty-conscious people and responsible and dutiful representatives of the people are required to act so in their regions. People’s representatives are to take precautionary measures if there is a likelihood of an attempt to harm peace and stability and to try to solve such problems without fail if they occur.”

However, people all over the country do not agree with his words because they have been listening to update news on the armed conflict in Kachin State aired by foreign radio stations – BBC, VOA, RFA and DVB.

Battles are going on constantly and several Burmese soldiers were killed in various clashes with Kachin Independence Army (KIA) troops in northern Kachin State.

The KIA officials said the recent heavy fighting took place when the government armed forces march into the area adjoining locations entrenched by KIA Battalions 1 and 15, under Brigade 3 command. The fighting has intensified near KIA military bases in Kachin State and Northern Shan State after different ceasefire proposals from each side failed to result in an agreement during two-party talks in early August.

Some analysts deem armed conflicts in Burma possibly will become wider since more ethnic armed groups refuse to accept the junta’s new constitution which says Burma Army is the only military institution in the country.

The armed ethnic groups also consider the incoming nominally civilian government which loyal to the 2008 constitution will not let their basic rights or self-determination in accordance with the 1947 Panglong Agreement.

A July-28-open-letter offered by Burma’s pro-democracy leader, Aung San Suu Kyi, strongly called for a ceasefire between the Burmese government, led by President Thein Sein, and ethnic armed groups, including the KIO, Karen National Union (KNU), New Mon State Party (NMSP) and the Shan State Army (SSA).

Thus, several ethnic armed groups including the KIA have already decided to defend their basic rights by holding their guns. If the new President Thein Sein government took no notice of addressing this delicate political issue by way of genuine political dialogue, the ongoing civil war may not be put out. http://asiancorrespondent.com/63881/burma-should-review-its-war-game-with-ethnic-groups/
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Seize opportunities to regain Burma
By Nalin Viboonchart
The Nation
Published on September 1, 2011

China has become Burma's biggest business partner in terms of trading value, replacing Thailand, and is likely to benefit from the open-market policy the most, said Burmese and Thai businesspeople as well as the Thai Board of Investment (BoI).

Thai investors should penetrate potential markets such as Burma more, while the government must facilitate Thai companies wishing to expand their business not only in Burma but in other countries, including India and China, a seminar heard.

Vasana Mututanont, director of the BoI's International Affairs Bureau, said during the seminar titled "Thai Investors Move Forward in India and Burma" that the Kingdom had been Burma's largest business partner from 1988 to 2008, but it had lost this position to China over the past few years. China is expanding aggressively into Burma and now markets many consumer products there.

"Thai investors and the government cannot ignore Burma and should think about playing a greater role in the country," she said. "The government of Burma has set a target to transform it from an agricultural-oriented to an industrial country by 2030. It needs more investment and trade. Thailand has an opportunity from this policy."

The seminar was held by the Office of Industrial Economics and the Centre for International Trade Studies of the University of the Thai Chamber of Commerce to disclose research on the opportunities for Thai enterprises to invest in India and Burma.

Moe Myint Kyaw, president of the Myanmar Fishery Products Processors and Exporters Association, said Burma imported US$4.53 billion (Bt136 billion) worth of goods last year, with China, Thailand and Singapore the top three suppliers, in that order. China's trade value was the largest at about $9.5 billion, followed by Thailand with a little bit lower value.

He said Thai businesspeople had many opportunities to invest in various sectors in Burma, particularly fishery, agriculture, food, wood, cement and infrastructure. However, Thai investors do not benefit as much as they could. Collaboration between the two countries is needed.

"The two governments should have a good relationship. I think the relationship today is so far so good.??? Good cooperation will prevent investors conducting hit-and-run-style business in Burma," he said.

Thai businesses should think beyond how to sell their products in the Burmese market and plan to invest there, he said. Burma has limitations for exporting goods to other markets, lacking facilities such as ports. It needs Thailand as an export centre, as the cost may be lower than exporting directly from Burma. Hence Thai companies could use raw materials from Burma for production, while Burmese firms could undertake reprocessing and packaging in Thailand and use this country as their distribution centre.

Vichai Kemtongkum, managing director of Oriental Unique, a Thai trading company that has done business in Burma since 1994, said Thailand had lost market share in the neighbouring country to China even though it should have a trade value of many billions of baht with Burma. One obstacle may be concern about the security and stability of doing business with Burmese investors.

"As far as I'm concerned, Burma is safer than Thailand. Burmese investors are reliable. I have done business in Burma for many years and never experienced cheating by Burmese partners," he said.

Surasak Chuasuknothip, deputy director-general of the Foreign Ministry's Department of International Economic Affairs, said India needed to invest more than $1 trillion in infrastructure, and there was an opportunity for Thai contractors to take part in the investment. http://www.nationmultimedia.com/home/2011/09/01/business/Seize-opportunities-to-regain-Burma-30164191.html
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China Hands KNU Leader over to Burma
By SAW YAN NAING Wednesday, August 31, 2011

Mahn Nyein Maung, a leading member of the Karen National Union (KNU) who once escaped from Burma's most notorious penal colony, is again in the hands of the Burmese authorities after being sent to Rangoon by Chinese officials, according to family members.
“The latest information we have is that our father was handed over to Burmese intelligence agents by officials in Kunming,” said his eldest son, who asked not to be identified by name.

The family said that Mahn Nyein Maung was arrested in the capital of China's Yunnan Province in July after being sent back from Bangkok, where he was denied entry by Thai immigration officials.

Mahn Nyein Maung had earlier traveled to Yunnan from Thailand, where he lived, to observe the armed conflict between the Kachin Independence Army (KIA) and government troops near the Sino-Burmese border.

Mahn Nyein Maung made the trip in his capacity as a central committee member of the United Nationalities Federal Council (UNFC), an alliance of ethnic armed groups, said Nai Hang Thar, the UNFC secretary.

Aung Kyaw Zaw, a Burmese observer on the Sino-Burmese border, said he heard that Mahn Nyein Maung had been put on a passenger flight to Rangoon in late July.

However, KNU central committee member Saw Ah Toe said he could not confirm that Mahn Nyein Maung had been sent to Burma.

“If he has been sent back, there's no doubt that he is being punished very severely,” said Saw Ah Toe.

Mahn Nyein Maung was a former underground activist inside Burma. In 1960, he was arrested and sent to the Coco Islands, an infamous detention center for political prisoners located about 300 km off the Burmese mainland in the Indian Ocean.

Mahn Nyein Maung and two other political prisoners, Mahn Aung Kyi and Aung Ngwe, managed to escape from the island by floating across the Indian Ocean clutching driftwood. However, they were rearrested when they reached the Burmese mainland.

It was the only known escape from the prison, known as “Burma's Devils Island”. http://www.irrawaddy.org/article.php?art_id=21991
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Burmese Parliament rejects motion to repeal Emergency Provisions Act
Wednesday, 31 August 2011 11:23 Myo Thant

Chiang Mai (Mizzima) – A motion in the Burmese Lower House to repeal the 1950 Emergency Provisions Act, which is used to imprison democracy activists has been overwhelmingly rejected by the majority opposition dominated by the Union Solidarity and Development Party.

Only 7 MPs supported the motion made by New Democracy Party MP Thein Nyunt. The motion was voted down by 220 USDP MPs; 99 military-appointed MPs; 16 MPs from the National Unity Party (NUP) and other smaller-party MPs. Forty-one MPs abstained.

Voting in favour on Monday were Dr. Than Win and Khaing Khing Maung Yee from the National Democratic Force; Nan Wah Nu from the Shan Nationalities Development Party; Thein Nyunt and Kyi Myint from the New Democracy Party, Zar Telem from the Chin National Party and Myint Than from the All Mon Region Democracy Party.

MPs who rose to speak against the motion were USDP members Than Oo from the Myawaddy constituency; Aung Kyaw Soe from the Natmauk constituency; Soe Paing from the Wuntho constituency; and Zaung Khaung from the Hsawlaw constituency.

In speaking against the motion, Thein Oo argued that the law should be in force because insurgency was still taking place, referring to recent fighting between the Democratic Karen Buddhist Army (DKBA) and government troops.

USDP MP Zaung Khaung said the Emergency Provisions Act was essential to the country, citing recent fighting between the Kachin Independence Organization (KIO) and government troops.

The late Prime Minister U Nu enacted the emergency act two years after Burma regained independence in 1948, to be used for suppression of the civil war. The law says that those who obstruct or delay the performance of duty by the armed forces or police force or those who intend or act to undermine the stability in the government can receive up to life in prison term or capital punishment.

“We are not in a state of emergency. So this law is irrelevant in the current time,” said Khaing Khin Maung Yee, who supported the motion.

According to the figures released by the exile-based Assistance Association of Political Prisoners-Burma (AAPP-B), out of a total of 1,995 political prisoners 500 prisoners were charged and imprisoned under the Emergency Provisions Act.

According to parliamentary procedures, a motion must be seconded and moved by at least one MP for deliberation in the house.

In other Lower House business:

––USDP MP Soe Thar moved a motion to explore ways to help business enterprises which have been struggling as a result of the falling US dollar. MP Nyi Nyi seconded the motion and it will be brought up for deliberation at a later date.

––Former Minister of National Planning and Economic Development Soe Thar told MPs that there was an increase of import volume by 78 per cent in the 2010-11 fiscal year and there was a trade deficit of 796 million kyat (US$1.1 million), decreasing export values and volume of rice, pulses and beans, and fish in moving his motion.

––USDP MP Maung Maung Thein from the Kayan constituency made a motion to exempt income tax on interest earned by treasury bills issued by the government. The motion was seconded by MP Nan Wah Nu from the Kunhing constituency and the motion will be deliberated at a later date. House Speaker Thura Shwe Mahn urged the lawmakers to consult with the Finance and Revenue Ministry and Parliament Bills Committee regarding their motion.

The sessions of the lower and upper houses concluded at 3 p.m. There will be a joint session of Parliament on September 5. http://www.mizzima.com/news/inside-burma/5858-burmese-parliament-rejects-motion-to-repeal-emergency-provisions-act.html
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Burma must consider favorably ethnic people’s proposals for peace-talks
Wed, 2011-08-31 00:37 — editor
Article
By - Zin Linn

Burma’s President Thein Sein government broadcasted a statement on 18 August concerning peace talks; it urged all rebel groups to get in touch with regional governments to initiate dialogue. According to the government, it would be forming a body to deal with ethnic armed-groups in quest of peace talks.

The statement is one of several fresh indications of the current controversial civilian government. It is currently attempting to transform its uncompromising portrait. Several ethnic armed groups have been fighting the military-backed government for decades to gain autonomy of groups, such as the Shan, Kachin, Karen and Mon.

Col Sai Htoo, Assistant Secretary General of the Shan State Progress Party / Shan State Army (SSPP/SSA), said the government’s 18-August peace talks call did not reveal any information concerning any preliminary programs at all. At least, he said, it should be focused on clearing the political atmosphere before any meaningful talks set off, according to Shan Herald Agency for News (S.H.A.N.).

“President Thein Sein should first create an environment conducive to friendly negotiations,” he told SHAN on Tuesday morning. According to him, it is important to release political prisoners, to start pulling out troops from the conflict zones and to declare a nationwide ceasefire announcement which will greatly brighten up the atmosphere.

However, at the meeting with Union Chief Justice Tun Tun Oo, Mr Quintana (UN’s Human Rights Envoy) put some questions on prisoners serving terms for their beliefs, amending existing laws to meet international norms, and formation and functions of the Constitutional Tribunal. The Union chief justice said that in Myanmar (Burma) there is no prisoner serving a term for his belief, and prisoners are all serving their terms for crimes they have committed. He also added that courts have powers to hand down sentences in the framework of the prescribed laws, and the accused have the right to argue in line with the law under the current 2008 constitution, revealed New Light of Myanmar newspaper.

Col Sai Htoo believes the 1947 Panglong Agreement that guarantees total autonomy, democracy and human rights for the states should be common ground on which peace talks should be conducted, and not the 2008 constitution, drafted and ratified and forcibly adopted by the previous military junta.

According to Col Sai Htoo, there are reasons for the government offering the peace talks. His rationales are as follow. (1) There is a conflict between Thein Sein government and the armed forces. (2) There is another conflict inside Thein Sein cabinet notably between President Thein Sein and his first-vice president Tin Aung Myint Oo. (3) Disciplinary problems are arising out of the Army’s inability to provide food, clothes and supplies for its troops and their families. (4) The government armed forces have suffered heavy casualties in the war in Kachin, Karen and Shan states. (5) The government hopes to break sanctions imposed by the Western bloc. (6) The government has an ambitious plan to chair the 10 member ASEAN in 2014.

Even though, the government’s “Invitation to peace talks” says that any armed group wishing to hold negotiations, it must contact the state government first individually in order to start preliminary discussion. After completion of which, the government will form a team for peace talks.

On the other hand, the Kachin Independence Organization (KIO) also dismissed the government’s 18-August peace-talk offer. It was sacked by the KIO and the United Nationalities Federal Council (UNFC) since the government uses just two-pronged meeting which in fact is a divide-and rule policy towards ethnic groups devoid of the Panglong Agreement. Talks between the KIO and the Burmese government were also failed in 1963, 1972, and 1980 respectively; they all botched to address the political face-off between the two sides.

Currently, KIO declared that it will talk through the ethnic alliance, the United Nationalities Federal Council (UNFC), maintaining the values of the Panglong Agreement.

The SSA has been combating against the Burma armed forces to gain self-determination for decades. Burma Army and SSA reached a ceasefire deal in 1989.

However, after 22 year of armistice, the ceasefire broken down due to Burma Army’s offensive on 13 March this year. The Shan State Progress Party/Shan State Army (SSPP/SSA) is a member of the newly formed United Nationalities Federal Council (UNFC) as well and it holds that any meaningful negotiations with Burmese government must be with the UNFC and not on the basis of one bilateral talk with individual groups - a provision set by President Thein Sein’s government.

If the government failed honoring the political aspirations of the ethnic groups, it will be pointless to end political and civil conflict all over the ethnic states. As a result, if the Burmese authorities neglected the opinion of the ethnic rebel-alliance, the critics may say that the current government is not heading toward a democratic system; instead it is challenging to pay no attention to the ethnic groups’ self-determination.

Hence, it is time for the government to review its strategy on peace-talks in comparison with the rebel-alliance’s proposal. In such an important time, government should not obstinately take hold of its own ‘modus operandi’ on peace-deal. If the government focused on reconstructing a democratic Myanmar or Burma, it must also respect the proposals of the ethnic people.

- Asian Tribune - http://www.asiantribune.com/news/2011/08/30/burma-must-consider-favourably-ethnic-people%E2%80%99s-proposals-peace-talks
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Bangkok Post
Burma jails man for 10 years for web article

Published: 31/08/2011 at 12:32 AM
Online news: Asia

A court in military-dominated Burma has sentenced a retired major to a decade in prison for writing an article deemed subversive and distributing it to overseas media, his lawyer said Tuesday.

A woman works online in her office in Beijing 2010. A court in military-dominated Myanmar has sentenced a retired major to a decade in prison for writing an article deemed subversive and distributing it to overseas media, his lawyer said Tuesday.

Nay Myo Zin, 36, was arrested in April, accused of harming national security, the rule of law, peace and stability and national unity with his article on reforming Burma's military and dictatorship.

He was accused of sending the article by email to pro-democracy activists and media-in-exile, such as the Norway-based Democratic Voice of Burma (DVB). The article is believed to have been published on the Internet.

"He was sentenced to 10 years imprisonment last Friday under the electronic act at a closed-door special court in Insein prison," one of his lawyers, Hla Myo Myint, told AFP.

"After his sentence, he said he didn't do anything to harm the country, the people and the military. He said he was sentenced unfairly."

Hla Myo Myint said the defence planned to appeal on behalf of the defendant.

A civilian administration has been nominally in charge of Burma since March, following a controversial election last year, but its ranks are dominated by former generals.

Media watchdog Reporters Without Borders describes Burma's legislation on Internet use, the Electronic Act, as "one of the most liberticidal laws in the world", with online dissidents facing lengthy prison terms.

Courts in Burma have a record of handing long prison sentences to journalists found working for overseas media critical of the regime.

In May, the DVB launched an appeal for worldwide pressure to secure the release of its 17 video journalists in jail in Burma.

The lawyer said Nay Myo Zin cannot walk after an accident in prison and his family was unable to attend the trial.

He said the defendant retired from the military in 2005 and went to work as a driver in Singapore before returning in 2007 and opening an Internet cafe. http://www.bangkokpost.com/news/asia/254233/burma-jails-man-for-10-years-for-web-article
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Burma's Tortured Prisoners Can't Wait
Posted: 31/8/11 00:00 GMT

The recent meeting between Aung San Suu Kyi and President Thein Sein, the new dictator of Burma, has given many in Burma some hope that there may be a chance of political progress at last. The UN Special Rapporteur on Human Rights in Burma also reflected this hope in comments after his visit to Burma at the end of August. But he was also cautious, talking about the potential for change, not actual change, and the fact that serious human rights abuses continue to be committed.

Those of us from Burma will remember similar hopeful statements from UN Envoys in the past, and also that Aung San Suu Kyi meeting the President has happened before, as long ago as 1994,and led nowhere. We know to judge the dictatorship by its actions, not its words.

In Burma, as in other countries ruled by dictatorship, the release of political prisoners has always been seen as a key benchmark for judging progress towards political reform. By that benchmark it's clear that Burma's new dictator, Thein Sein, isn't bringing change to my country. His government denies the 1,995 political prisoners even exist. The international community must now try something new to finally push the dictatorship to go beyond words.
A rare opportunity to try something new is fast approaching, with European Union diplomats currently discussing what will go into the next UN General Assembly resolution on Burma.
It will be the 21st Resolution on Burma, and it always calls for the release of political prisoners, a call which is always ignored.

Yet despite the critical benchmark of the release of political prisoners not being met, some European governments are arguing that before taking any new action in the Resolution, we must still wait and see if there will be change in Burma.
They would not see it like this if they looked at the situation from inside a prison cell, as I have. Every day is a crisis, a living hell. To survive with your mental and physical health intact is literally a life and death struggle.
Political prisoners face what amounts to two kinds of torture. The first is the torture more widely known about, which often takes place during interrogation. This includes beatings, electric shocks, stress positions, and many many other horrific acts.
The other form of torture inflicted upon prisoners is just as serious, but gets little attention.
The Rome Statute, which has legal definitions of crimes against humanity, describes torture as: 'the intentional infliction of severe pain or suffering, whether physical or mental, upon a person in the custody or under the control of the accused.'

Physical and mental suffering is deliberately inflicted upon political prisoners as a matter of government policy. Prisoners suffer from grossly inadequate medical care for small and serious illnesses and from untreated injuries from torture. They are subjected to mental suffering, being transferred to remote prisons away from families whose visits would lift their spirit, and who can bring them decent food and vital medicine. They are forced to live in horrific prison conditions, and threats and actual violence are routine.

On December 8th Buddhist monk U Naymeinda died in prison. His death was due to malnutrition, maltreatment and inadequate medical care. He was the 146th documented political prisoner to die in prison in Burma since 1988. The true number is believed to be much higher.

Ko Min Aung, a member of the National League for Democracy, has been denied urgent medical treatment for heart disease for over 11 months. In addition he is serving a sentence in Kale prison, Sagaing division, 800 miles from his home. Min Ko Naing, a member of the 88 generation students' group, is suffering from heart disease, gout, and is often very dizzy. He is being held in a remote prison, making it very difficult for his family to provide him with essential medicine.

Failure to provide prisoners with the basics, such as adequate food and clothing, appropriate medical treatment, and a cell that is clean, is in breach of a number of international laws and standards.

At the upcoming UN General Assembly this September, the 21st Resolution on Burma will call again for the release of political prisoners, and again, it will be ignored.
So this year, we are asking European governments, which draft the Resolution, to try something new. We want them to include the establishment of a Commission of Inquiry into possible war crimes and crimes against humanity in the resolution. It is only a small step, but it would be a significant one. It is a step already recommended by the UN's own Special Rapporteur on human rights in Burma.

An official UN Inquiry, shining a spotlight onto the abuses taking place against political prisoners in Burma's jails, and the abuses taking place against civilians in ethnic areas, could have a real impact in reducing the scale of some of these abuses. The dictatorship craves international acceptance. It does not want the world to know what they are doing in the remote jungles of Burma, and behind the high prison walls.

A UN Inquiry, which can expose the truth and make recommendations for practical action, won't stop Thein Sein from making reforms if he really wants to. But it could help improve the situation for political prisoners in Burma, something which the past 20 General Assembly resolutions have failed to do. Political prisoners can't afford more wait and see. The EU must act now. http://www.huffingtonpost.co.uk/bo-kyi/burmas-tortured-prisoners_b_941896.html
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Govt Officials Implicated in Car Smuggling Ring
By THE IRRAWADDY Wednesday, August 31, 2011

RANGOON — A number of high-ranking Burmese government officials, including cabinet ministers and military generals, are involved in smuggling cars into Burma and illegally registering them in the country, according to sources within the government.

An official from Naypyidaw who spoke to The Irrawaddy on condition of anonymity said that the ministers and other officials receive bribes from smugglers and in some cases sign documents enabling licenses to be printed for illegal vehicles.

Minister of Finance and Revenue Hla Tun and Minister of Industry No. 2 Soe Thein are allegedly among those involved in these practices.

Government sources said that corruption within the Customs Department, which is overseen by the Ministry of Finance and Revenue, has worsened since Tun Thein, a close associate of Hla Tun, was appointed as its director-in-chief, although corruption was also rife under Tun Thein's predecessor, San Thaung, who now serves as the director of the Burmese Economic Bank.

The Ministry of Industry No. 2 has also been accused of playing a key role in facilitating the illegal import of foreign vehicles. According to a Rangoon-based businessman involved in Burma's vehicle manufacturing industry, the ministry issues certificates registering foreign cars as domestically produced, even though it does not have the authority to do this.

According to ministry sources, the ministry imposes a fine of US $13,000-20,000 for every Toyota Hi-Ace illegally imported into the country, although this is enforced only occasionally, as a cover for the more widespread practice of accepting bribes.

While Burma does have some vehicle factories—all owned by generals or their families—they don't have the capacity to produce international models.

The Ministry of Industry No. 2 officially registered 98,884 cars in 2010 and 9,577 so far this year. http://www.irrawaddy.org/article.php?art_id=21994
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Russian gas giant eyeing Burma
By Joseph Allchin
Published: 31 August 2011

Officials from Russian state run gas company, Gazprom visited Burma’s capital Naypyidaw earlier this month, according to the International Oil Daily.

The company is interested in becoming involved in gas projects in Burma as it looks to expand its Asian presence.

Russia has the largest proven reserves of gas in the world and as result the company is the largest extractor of natural gas in the world as well as the largest Russian company.

Its revenues in 2010 alone were in the region of US$ 17.2 billion, which is equivalent to roughly a third of Burma’s total estimated GDP.

The officials who visited however were from Gazprom’s international up stream branch, Gazprom EP International, which is registered in the Netherlands, an EU member state which is party to EU sanctions on the country. The German company E.ON also has a small stake in Gazprom.

The Burmese government for their part are interested in the expertise that the company can offer in terms of equipment, storage facilities, pipelines and fior the company to conduct geological surveys.

The company is reportedly looking to diversify its market away from the sluggish EU economies, as China’s growing appetite for energy looks set to over take demand from the European block in 2030. China however is busy acquiring sources of gas in its neighbourhood in both central Asia and Burma.

The Burmese government has also been looking to acquire more domestic know how in the oil & gas sector. They have been insisting that Burmese companies form joint ventures with foreign companies in the on shore gas sector.

Investment in the gas & oil sector has remained buoyant, so much so that it has caused a massive appreciation of the Burmese kyat as it has increased in value by over 20% over the last year. http://www.dvb.no/news/russian-gas-giant-eyeing-burma/17369
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