News & Articles on Burma-Tuesday, 27 December 2011-uzl

News & Articles on Burma Tuesday, 27 December 2011 --------------------------------------- Suu Kyi Urges Japan to Promote Democracy in Burma Japan seeking improved Myanmar relations Emerging Freedoms in Myanmar Burma ready to sign petroleum concession : Surapong Thai banks ready to fund expected boom in Burma Japan urges Burma to continue with reforms Japan prods Burma to continue with reforms: report Burma's Peace Envoy prepares meeting with ethnic rebels' alliance Burma Cuts Interest Rates Banks ready to fund expected boom in Burma Ending ethnic strife needs a new roadmap USDP Accused of Unlawful Election Campaigning Italian-Thai Seeks Japanese Loans for Myanmar Deepsea Port ------------------------------------------ Suu Kyi Urges Japan to Promote Democracy in Burma By WAI MOE Tuesday, December 27, 2011 Pro-democracy leader Aung San Suu Kyi has urged Japan to strengthen Burmas democratic institutions as Tokyo launches a fresh engagement initiative with Naypyidaw that promises more investment for economic and social development. If democratic institutions are strengthened in the country, economic development will be stronger too, Suu Kyi told reporters at a press briefing after she met Japanese Foreign Minister Kocihiro Gemba at her lakeside house in Rangoon on Monday evening. Therefore, I hope Japan will consider strengthening democratic institutions in the country while it aids humanitarian works as well as social and economic development, she added. Japanese Foreign Minister Koichiro Gemba, left, at a press briefing in Rangoon with pro-democracy leader Aung San Suu Kyi. (Photo: AP) The Nobel Laureate also emphasized the importance of national reconciliation, resolving civil wars and maintaining peace for the development of democracy in the country. And she added that humanitarian aid and development should reach all ethnic minority areas equally. Gemba held a meeting with President ex-Gen Thein Sein in Naypyidaw and Suu Kyi in Rangoon, indicating that the East Asian superpower is looking for investment opportunities in Burma. He said that Japan wants to help Burma fight poverty and that the two nations agreed to discuss a treaty to protect Japanese investments in the country. Apart from investment and help combating poverty, Japan will also provide aid for Burmas health, education and agriculture sectors, claimed Gemba. Gemba also met his Burmese counterpart Wunna Maung Lwin in Naypyidaw on Monday before flying to Rangoon. This visit will be a big turning point for Japan-Burma relations, Gemba was quoted by Kyodo News Agency as telling Wunna Maung Lwin. On the meetings between Thein Sein and Gemba, state-run newspaper The New Light of Myanmar reported: They cordially discussed matters related to bilateral multi-faceted cooperation, including strengthening of bilateral friendly ties, bilateral economic cooperation, seeking of ways and means to render assistance by Japan, encouragement and assistance for Myanmars democratization, national reconciliation and bilateral culture exchanges. Gemda is the first Japanese foreign minister to visit Burma since 2002. His visit came after a Japanese delegation, led by Kimihiro Ishikane, deputy director-general of the Japan Foreign Ministrys Southeast & Southwest Affairs on Official Development Assistance (ODA), last month. Both sides talked about the new Naypyidaw government's development policies and Japans assistance programs through ODA for sustainable economic development in Burma, according to the Japanese Ministry of Foreign Affairs. Although Japan is keen to invest in Burma and cooperate with the Burmese government to achieve development, Burmas tentative moves towards democratization and protecting human rights have also been significant in Tokyo's policy of providing assistance. Japan believes that it is important for Myanmar, having just recently shifted to civilian rule, to become a democratic nation based on a market economy and social stability, said a statement from Japans Ministry of Foreign Affairs on Nov. 28. Therefore, Japan intends to implement economic cooperation while watching for improvements in democratization and human rights situations. Burma is one of the areas in which Japan has used ODA diplomacy effectively. From 1960 to 1988, Japan was the main contributor of development aid to the Southeast Asian nationa value totaling US $2.1 billion including compensation for the Japanese occupation during World War II. However, Japan stopped ODA to Burma in 1988 in reaction to the military junta's coup and brutal crackdown on the democracy uprising. But Japan still assisted Burma in less direct methodssuch as loans for Rangoon International Airport and the Baluchaung Hydropower project in Karenni State. From 1991 to 2003, Japanese aid to Burma totaled over 900 billion yen and was closely aligned to democratic reforms. Tokyo decided to approve the airport loan following Suu Kyi's release from her first house arrest in 1995, and the hydropower project aid was offered after her subsequent release from house arrest in 2002. Japan once again suspended ODA to Burma in July 2003 after Suu Kyi and her convoy were brutally ambushed by pro-junta thugs in Dapayin, Sagaing Division, in northern Burma. But using ODA diplomacy to engage with the Burmese regime was perhaps also a counterbalancing act against Chinas influence in the country. Japans ODA to Burma was 876 million yen in 2004, 1.2 billion yen in 2005, 640 million yen in 2006 ad 468 million yen in 2007. Following the killing by security forces of Japanese journalist Kenji Nagai in Rangoon while he was covering the monk-led mass democracy protests in September 2007, Tokyo also temporarily suspended aid to Burma. http://www.irrawaddy.org/article.php?art_id=22735&page=1 --------------------------------------- Japan seeking improved Myanmar relations December 27, 2011, 3:31pm YANGON, Myanmar (AP, AFP) Myanmar and its one-time biggest benefactor, Japan, agreed to talks on a bilateral investment treaty and took other steps toward better relations as the Japanese foreign minister visited Monday. Kocihiro Gemba said afterward Japan wants to help Myanmar fight poverty that grips the country and was pleased they agreed to talks on a treaty to protect Japanese investments. The first Japanese foreign minister to visit Myanmar in nine years, Gemba met President Thein Sein and other government officials in Naypyitaw then later talked to pro-democracy advocate Aung San Suu Kyi in Yangon. A separate AFP report said Gemba on Monday urged Myanmar to push forward its reform process. "This visit will be a big turning point for Japan-Myanmar relations," Gemba told his counterpart, Wunna Maung Lwin, as they sat down for talks. Suu Kyi stressed the importance of Japan's aid reaching ethnic minority areas where it is most needed. Suu Kyi said she also asked Japan to consider strengthening Myanmar's democratic institutions. Japan was Myanmar's largest aid donor until it cut most funds in 2003 after pro-junta thugs attacked Suu Kyi's motorcade on a political organizing trip in northwestern Myanmar. The military government then placed her under house arrest, which ended in November last year. "Japan will continue to do what it can do for Myanmar's national reconciliation to take hold," Kyodo quoted Gemba as saying after a meeting with pro-democracy figure Aung San Suu Kyi at her home in Yangon and extended an offer that she visit Japan in the near future, Kyodo said. Japan has continued small amounts of humanitarian grass-roots aid for the health and education sectors and has also maintained some trade ties with Myanmar since then. The aid was allotted without violating Western sanctions against Myanmar, and Japan did not impose sanctions on its own. But Gemba's visit is considered a reopening of better ties between the countries with a long history. In his meeting with government officials, Japan also offered increased economic help for the education and agriculture sectors. His visit follows several nations that have sent officials to Myanmar after its new, nominally civilian government made political reforms this year. US Secretary of State Hillary Rodham Clinton and Thai Prime Minister Yingluck Shinawatra visited earlier this month. Yingluck, after meeting with President Thein Sein, became the first prime minister from the Southeast Asia region to meet Suu Kyi. Last week, Suu Kyi formally registered her party for any upcoming elections, returning the Nobel laureate to the political arena and winning plaudits from her political rivals in Myanmar's military-dominated parliament. Suu Kyi decided last month to formally rejoin politics after recent government reforms. With National League for Democracy leader Tin Oo and other party members she registered the party at the Union Election Commission in the capital, Naypyitaw. The party boycotted last year's general elections because of restrictive rules that among other things prevented Suu Kyi from being a candidate. The government has since lifted many of those restrictions. http://www.mb.com.ph/articles/346203/japan-seeking-improved-myanmar-relations ------------------------------------------- THE NEW YORK TIMES December 27, 2011, 5:00 am Emerging Freedoms in Myanmar By JAMES ESTRIN Paula Bronstein has been traveling to Myanmar to take photographs for almost 20 years, so she's accustomed to the feeling that she was being followed everywhere. Mind you, it's not paranoia when you're actually being followed . But this trip was very different. "There was always a feeling of paranoia working here but not on this trip," Ms. Bronstein said from Yangon this month." I have been able to do whatever i wanted to do. Previously I was always trying to work under the radar." The military regime that ruled Myanmar for more than 40 years, imprisoned political opponents and monitored journalists seems to be relinquishing some of its power as the country undergoes rapid change. The opposition leader Daw Aung San Suu Kyi has been released from house arrest and Secretary of State Hillary Rodham Clinton visited Myanmar this month to encourage democratic change. Elections are scheduled. Ms. Bronstein arrived in Myanmar to cover Mrs. Clinton but stayed after most of the press corps had departed. She photographed schools, a monastery and even the remote, bizarre, capital of Naypyidaw, a place she had been banned from visiting before. Openly carrying two cameras, she wandered the wide streets that were spotless, well-lighted and almost free of traffic. While there was a big police presence in the capital, Ms. Bronstein was not bothered by the authorities. Several times she photographed the enormous Parliamentary Complex that has more than 30 buildings, the largest of which has better than 100 rooms. Ms. Bronstein is a Bangkok-based senior staff photographer for Getty Images whose photos from Mongolia were featured in Lens last year. She had previously photographed Ms. Aung San Suu Kyi in her home while the opposition leader was under house arrest. On this trip, she covered her public visit to a Buddhist monastery. Even more striking, after almost two decades of confinement and forced isolation, there were now posters of the pro-democracy activist displayed publicly. The changes are happening so rapidly, it is impossible to know how long they might last or how far they will go. For decades, Myanmar has been a poor, isolated county with a badly managed economy. "I think these changes bring more happiness to the people even though they don't yet have more money," Ms. Bronstein said. "The people have suffered under a repressive regime, but now there's a sense of optimism." http://lens.blogs.nytimes.com/2011/12/27/emerging-freedoms-in-myanmar/ --------------------------------------------- Thai-Burma Relations Burma ready to sign petroleum concession : Surapong Supalak Ganjanakhundee December 27, 2011 1:33 pm New Delhi - Good relations with Burma and recognition of mutual benefits have yielded fast results as Naypyidaw has agreed to sign the petroleum concession with PTTEP shortly after New Year, Foreign Minister Surapong Tovichakchaikul said on Tuesday. He denied that former prime minister Thaksin Shinawatra had been in any way involved. Surapong and energy minister Pichai Naripthaphan discussed the matter with Burma's energy minister Than Htay in Naypyidaw when they accompanied Prime Minister Yingluck Shinawatra to the 4th summit of Greater Mekong Sub-region last week. The Burmese energy authority informed Thailand by phone over the weekend that it was ready and that the PTT Exploration and Production Co should go to sign the concession contract on natural gas in block M3 by January 5-6, Surapong said. Surapong said he did not know the details of the concession contract that the Thai company would sign. Energy minister Pichai would witness the signing ceremony. Block M3, is located in the Gulf of Martaban south of Rangoon, contains good quality natural gas, the by-product of which could be used in the petrochemical industry, he said. Opposition Democrat Party alleged that former Prime Minister Thaksin, who was in Burma shortly before Yingluck's visit, helped in paving the way for the signing of concession contract. Thaksin has a personal interest in the gas deal, the party said. Surapong said Thaksin has nothing to do with the negotiations and that it was his government who had been able to convince the Burmese counterpart to reach agreement. Thailand could help Burma to develop its petrochemical industry by using by-products of the natural gas from block M3, he said. The government would invite representatives from Burma to study the petrochemical industry in Thailand, he said. In fact, the PTTEP has been dealing with Burma on the gas concession for a long time but no progress had been made during the previous government's term due to cold relations between the two countries, Surapong said. "Former Prime Minister Thaksin has no stake in the deal. If the Democrats can prove he has any interests in the concession, I would ask him to hand over the stakes to them," Surapong said. "Otherwise, they should stop such allegations, which hurt the national interest." http://www.nationmultimedia.com/national/Burma-ready-to-sign-petroleum-concession-Surapong-30172728.html ------------------------------------- Thai banks ready to fund expected boom in Burma Sucheera Pinijparakarm The Nation Publication Date : 27-12-2011 Thai banks are optimistic on the growing investment opportunities in Burma and are ready to support Thai firms planning to expand their businesses there. Apisak Tantivorawong, president of Krung Thai Bank (KTB), said recently that Burma was one of the markets in Asean showing high potential for rapid growth, and that all areas of business, including banking, were eyeing greater involvement in the country. Many Thai firms have invested in Burma, including construction giant Italian-Thai Development (ITD), which has been granted a 75-year concession on 160,000 rai (25,600 hectares) in Dawei by the Burmese government. Apisak said the Dawei project was regarded as the largest in Burma in terms of investment value. Many parties plan to join with ITD on projects in the port town, including KTB, which is in talks with investors to provide financing. "We believe all parties want to cash in on the Dawei project. But its large size means all parties can join together to win on this project," he said. Foreign investors are also interested in Burma. This will also benefit Thailand, because of its proximity to the country. When the Asean Economic Community is implemented in 2015, Thai companies will have an advantage if they want to set up plants in Burma to send products back to Thailand because of the Kingdom's position as a logistics centre. Kannikar Chalitaporn, president of Siam Commercial Bank (SCB), said Burma offered many opportunities for investors, but cautioned that investors should expect to look for long-term opportunities. SCB is waiting for approval from the Bank of Thailand to set up a representative office in Burma. Burma's central bank will not allow foreign banks to set up branches yet. Kannikar said that when the central bank in Burma gives licences to foreign banks to open branches, SCB would be ready to jump in. SCB prefers to expand its financial services to Laos and Burma rather than Malaysia and Indonesia. "SCB can handle many overseas deals from Thailand. Therefore, the bank believes it can service all financial services even it has no branches overseas," she said. Banthoon Lamsam, chief executive officer and president of Kasikornbank, said Burma was a potential market for investors. However, it was not an appropriate arena for all businesses, the banker said, pointing out that the initial wave of investors in Burma were involved in infrastructure. http://www.asianewsnet.net/home/news.php?id=25499&sec=2 ------------------------------------------- Radio Australia News Japan urges Burma to continue with reforms 27/12/2011 Opening doors. US Secretary of State Hillary Clinton and Burma democracy leader , Aung San Suu Kyi hold talks in Rangoon this year. [AFP] Last Updated: 18 hours 8 minutes ago Japan's Foreign Minister Koichiro Gemba is urging Burma to push forward with its reform process. Mr Gemba made the call in Burma during talks to launch a bilateral investment accord. During meetings with President Thein Sein and his counterpart Wunna Maung Lwin, Mr Gemba also expressed Japan's readiness to assist Burma to transform itself into a democratic country and to reduce poverty, especially in rural areas. Mr Gemba also pressed Burmese officials to break off military ties and suspected nuclear links with Pyongyang. http://www.radioaustralianews.net.au/stories/201112/3398271.htm ------------------------------------- Japan prods Burma to continue with reforms: report Published: 27/12/2011 at 11:32 AM Online news: Asia Japanese Foreign Minister Koichiro Gemba on Monday urged Burma to push forward its reform process, as the two nations agreed to launch talks on a bilateral investment accord, a report said. Myanmar democracy icon Aung San Suu Kyi (L) speaks next to Japanese Foreign Minister Koichiro Gemba after their meeting at her house in Yangon. Gemba on Monday urged Myanmar to push forward its reform process, as the two nations agreed to launch talks on a bilateral investment accord, a report said. Gemba, the first Japanese foreign minister to visit Burma since 2002, met President Thein Sein and his counterpart Wunna Maung Lwin in Burma's remote capital of Naypyidaw, Japan's Kyodo News reported. During the meeting, Gemba expressed Japan's readiness to assist Burma in transforming itself into a democratic country and reducing poverty, especially in rural areas, Kyodo said. "This visit will be a big turning point for Japan-Burma relations," Gemba told Wunna Maung Lwin, according to Kyodo, as they sat down for talks in the capital. Gemba urged more progress on reforms, which have so far seen the new nominally civilian government release some political prisoners and ease restrictions on the media and business, Kyodo said. The Burma foreign minister vowed to free some of those being held, it said. Gemba also asked that Japan and Burma begin negotiations on an investment treaty, which would create an easier environment for Japanese companies to do business in the country, Kyodo said. Unlike major Western nations, Japan has maintained trade ties and dialogue with Burma, warning a hardline approach could push Burma closer to neighbouring China, its main political supporter and commercial partner. A week after the abrupt announcement of North Korean leader Kim Jong Il's death, Gemba pressed Burma officials to break off military and suspected nuclear links with Pyongyang, Kyodo said. Gemba later met iconic pro-democracy figure Aung San Suu Kyi at her home in Rangoon and extended an offer that she visit Japan in the near future, Kyodo said. "Japan will continue to do what it can do for Burma's national reconciliation to take hold," Kyodo quoted Gemba as saying after their meeting. Japan has continued to provide humanitarian and emergency aid to the country, but halted regular economic assistance in 2003 following the arrest and subsequent detention of Suu Kyi. Burma's government has rolled out a series of reformist measures since it took office as the former generals who dominate it have sought to reach out to political opponents and the West. Suu Kyi was freed in November 2010 from seven years of house arrest, and has re-registered her previously banned opposition National League for Democracy (NLD) as a political party, clearing the way for her to take part in elections. Hillary Clinton visited Burma earlier this month in the first trip there by a US Secretary of State in more than 50 years. http://www.bangkokpost.com/news/asia/272634/japan-prods-burma-to-continue-with-reforms-report ----------------------------------------- Burma's Peace Envoy prepares meeting with ethnic rebels' alliance By Zin Linn Dec 27, 2011 12:41AM UTC On 23 December, President Thein Sein's cabinet member and peacemaking team leader Aung Min revealed he was ready to meet the United Nationalities Federal Council (UNFC), the alliance of 11 armed groups. He announced this during a meeting with Hkun Okker, PaO National Liberation Organization (PNLO) president, in Bangkok, Shan Herald Agency for News (S.H.A.N.) reported today. "This is a major departure from its initial 'group-wise' approach," said the 65-year-old PaO leader, whose PNLO is a member of the UNFC. "The policy has apparently proved a waste of time and resources with most of the groups that he had met." Burma's 11 ethnic groups made a historical accord in a conference at an undisclosed venue along the Thai-Burma border in mid-February. They reached an agreement unanimously forming an umbrella alliance called the United Nationalities Federal Council (UNFC). The President's special peace envoy, Aung Min, has triumphed only one truce with the Restoration Council of Shan State / Shan State Army (RCSS/SSA) led by Lt-Gen Yawdserk, whose delegation signed a ceasefire accord with the Shan State Government on 2 December. Aung Min, who is also Minister of Railway Transport, met the Karen National Union (KNU) in Maesot on 21 December and the New Mon State Party (NMSP) in Sangklaburi the following day. Nyo Ohn Myint, an executive of the National League for Democracy-Liberated Area (NLD-LA), acted as moderator during the meetings with KNU and NMSP. At that time Aung Min was still apparently sticking to the group-wise approach stance. "He said the government would hold talks with dialogue only at the third stage of the three-stage peace process," said a Karen source. The three stages are Ceasefire, Development and what is known as "Panglong-like Conference". The UNFC, formed in February, is made up of Kachin Independence Organization (KIO), Karenni National Progressive Party (KNPP), Chin National Front (CNF), Lahu Democratic Union (LDU), Palaung State Liberation Front (PSLF), Wa National Organization (WNO), National Unity Party of Arakan (NUPA), and Shan State Progress Party / Shan State Army (SSPP/SSA), KNU, NMSP and PNLO. The ethnic alliance has yet to meet and make a decision on its imminent remarkable meeting with the government's special envoy Aung Min. The UNFC has selected six Central Executive Committee members and 10 Central Committee members. Gen Mutu Saypo of the Karen National Union (KNU) becomes Chairman and Lt Gen Gauri Zau Seng of the Kachin Independence Organization (KIO) Vice Chairman-1, Maj Gen Abel Tweed of the Karenni National Progressive Party (KNPP) Vice Chairman-2, and Nai Hongsa of the New Mon State Party (NMSP) General Secretary) respectively. In a statement issued on 17 February, the UNFC said part of its basic principles and aims were to work for a better recognition of the ethnic armed groups, for ethnic equality, rights and self-determination, and for a genuine democratic federal union of Burma. At the same time, the government's envoy Aung Min also had a 30-minute meeting with former leader of All Burma Students' Democratic Front (ABSDF) Dr. Naing Aung on 21 December. During the meeting, Dr. Naing Aung proposed a four-point agenda for ceasefire talks, in keeping with a statement issued by him, according to sources in Mae Sot. The four points are to implement an all-inclusive rebuilding programme, to bring to end human rights violations, not to hurt civilians in fighting, and to release all political prisoners including rebels who are regarded as special prisoners. Political analysts are watching the peace activities of Aung Min in great expectation of good results. http://asiancorrespondent.com/72768/burma%E2%80%99s-peace-envoy-prepares-meeting-with-ethnic-rebels%E2%80%99-alliance/ -------------------------------------------- Burma Cuts Interest Rates By NAW KA PAW Monday, December 26, 2011 RANGOON---Burma's Minister for Finance and Revenue Hla Tun announced on Dec. 23 that the Central Bank of Myanmar will cut interest rates from 12 to 10 percent starting on Jan. 1, a move several bankers in Rangoon say will allow many businesses to be more cost effective. It is hoped a cut in interest rates will accelerate the national economy, encourage investment, and create higher performance through competition among banks. The growth of the national economy has been relatively slow lately, with obersvers saying that any monthly increases at Burmese banks were due to a growth in savings. It was this factor, they say, that prompted the Ministry of Finance and Revenue to reduce interest rates once more. Under the new interest rates, deposits are to be met with returns of not less than 8 percent, while borrowers are not to be charged more than 13 percent. Financial observers predict a mixed bag of positive and negative impacts. A retired senior officer from the budget department under the Ministry of Finance and Revenue said, "The positive is that a borrower who is involved in business can get a loan at a low rate of interest. It is good for him, but not for investors." Deputy Chairman of Kanbawza Bank Than Lwin said, "It has more positive impacts than negative. When the bank rate decreases, prices decrease. A decrease in prices can quicken the economy. Low interest rates, on the other hand, are not good for either the investor or the borrower." A global economic crisis, usually causes interest rates to lower, he added. Burma currently has the highest interest rates in the region. In Singapore, banks pay out less than one percent on deposits. A spokesperson from Asia Green Development Bank said, "Decreasing interest rates is good for business. It reduces prices. Burmese businesses cannot compete with those in Thailand, Singapore and Malaysia because of the high costs. A reduction in interest rates would welcome in new busines investors and increase the country's GDP. From that, the government will take in increased taxes and revenue." A retired professor from Yangon Institute of Economics pointed out that a reduction in interest rates would lead to businesspeople borrowing money from the banks, and would subsequently mean higher foreign exchange rates. Another economist warned that if interests rate are decreased, investors will withdraw their money from the banks, and few will make deposits. "The other thing, is inflation," he said. "The interest rate should always outweigh the rate of inflation." Interest rates were stable at 10 percent from April 1, 2000 until April 1, 2006, when they were upped to 12 percent. As part of a series of political and economic reforms initiated by Burma's new quasi-civilian goverment led by ex-army general President Thein Sein, Naypyidaw announced on Friday that it will exempt its citizens working abroad from paying income tax starting Jan. 1 next year. http://www.irrawaddy.org/article.php?art_id=22724 -------------------------------------- Banks ready to fund expected boom in Burma SUCHEERA PINIJPARAKARM THE NATION December 27, 2011 1:00 am Thai banks are optimistic on the growing investment opportunities in Burma and are ready to support Thai firms planning to expand their businesses there. Apisak Tantivorawong, president of Krung Thai Bank (KTB), said recently that Burma was one of the markets in Asean showing high potential for rapid growth, and that all areas of business, including banking, were eyeing greater involvement in the country. Many Thai firms have invested in Burma, including construction giant Italian-Thai Development (ITD), which has been granted a 75-year concession on 160,000 rai (25,600 hectares) in Dawei by the Burmese government. Apisak said the Dawei project was regarded as the largest in Burma in terms of investment value. Many parties plan to join with ITD on projects in the port town, including KTB, which is in talks with investors to provide financing. "We believe all parties want to cash in on the Dawei project. But its large size means all parties can join together to win on this project," he said. Foreign investors are also interested in Burma. This will also benefit Thailand, because of its proximity to the country. When the Asean Economic Community is implemented in 2015, Thai companies will have an advantage if they want to set up plants in Burma to send products back to Thailand because of the Kingdom's position as a logistics centre. Kannikar Chalitaporn, president of Siam Commercial Bank (SCB), said Burma offered many opportunities for investors, but cautioned that investors should expect to look for long-term opportunities. SCB is waiting for approval from the Bank of Thailand to set up a representative office in Burma. Burma's central bank will not allow foreign banks to set up branches yet. Kannikar said that when the central bank in Burma gives licences to foreign banks to open branches, SCB would be ready to jump in. SCB prefers to expand its financial services to Laos and Burma rather than Malaysia and Indonesia. "SCB can handle many overseas deals from Thailand. Therefore, the bank believes it can service all financial services even it has no branches overseas," she said. Banthoon Lamsam, chief executive officer and president of Kasikornbank, said Burma was a potential market for investors. However, it was not an appropriate arena for all businesses, the banker said, pointing out that the initial wave of investors in Burma were involved in infrastructure. http://www.nationmultimedia.com/business/Banks-ready-to-fund-expected-boom-in-Burma-30172691.html ------------------------------------------- Ending ethnic strife needs a new roadmap Published: 27/12/2011 at 12:00 AM Newspaper section: News Earlier this year, Burma rightfully claimed to have completed the Seven-point Roadmap for democracy by successfully installing a new civilian government. Since then, the world has seen an unusual wind of change in Burma, one that the country had not experienced in half a century. However, there was at least one point of the roadmap that was never completely finished and was somewhat pushed aside in order to pave the way for quick changes. This missing link was the establishment of peace with dozens of armed ethnic groups that have fought for autonomy from the central government for several decades. It is high time to revisit this important point of the roadmap, as these incomplete tasks could not only undermine the positive changes in the country but could also derail the whole future of the transition. In that regard, the new campaign of peace overtures embarked upon by the government of Thein Sein is a very welcoming initiative. On one side, his government has demonstrated new resolve to achieve peace in a few years. On the side of the ethnic armed groups, they have seen a glimmer of hope to end hostilities. As such, for the first time in 60 odd years, elusive peace in Burma seems to be possible to achieve. The Burmese government has consolidated its efforts by forming a negotiating team comprised of union-level ministers and prominent parliamentarians. Importantly, as many of them are new to the government, they bring different perspectives and personal resolve to the table as they work to end the conflict. Crucial to this process, the governments of the ethnic states have been authorised to engage in peace talks with rebels in each respective state. Over the past few months, the Burmese government itself has held several rounds of negotiations with all armed ethnic groups. These initiatives have already achieved significant results, further reinforcing the credible commitment of the government to build promising peace. Led by a new team of government negotiators, the talks produced several ceasefire agreements, including the ones recently with the Shan State Army-South and the Democratic Karen Buddhist Army in December 2011. An important understanding was also reached with the United Wa State Army as well as the Karen National Union, two major ethnic forces with ample military capabilities. However, there are also worrying trends in Kachin State. Negotiations with the Kachin Independence Organisation have broken down and serious fighting has continued. With rising tensions in Kachin State, peace in Burma may unfortunately remain elusive in the foreseeable future. Negotiations seem to be going around in circles, despite efforts from both sides to give peace a chance. Ethnic conflicts in general are extremely complex. Burma is no exception with multiple players in multifarious groupings pulling and pushing in all directions. Additionally, Burma's neighbours have also been involved in the conflict in one form or another, from the explicit support of the rebels, to benefiting from the illegal sales of minerals, and the smuggling of weapons, the proceeds of which go directly to finance the conflict on all sides. But legacies of protracted military rule are at play here also. Due to years of abuses and repeated broken promises, ethnic groups do not trust the government. They still see the current government as a civilianised extension of the military's rule. And within the government also, there are many ex-army officers who have fought against the ethnic insurgency at one time or another. Some of them still see ethnic conflict from a security point of view and armed groups as separatists wreaking havoc on the nation's progress and potential. For both sides, trust remains the crux of the problem. But all protagonists must get past the positional bargaining in order to achieve peace once and for all. To achieve all these, the new Burmese government cannot afford to treat this simply as tying up loose ends from the previous roadmap. In fact, a new comprehensive roadmap should be adopted to end ethnic conflict. Such a grand overture would certainly be well received by various stakeholders. This kind of initiative would engender immediate collaboration and support from the people. Such a roadmap should include first and foremost a ceasefire to stop the killing. All ceasefires are temporary security arrangements and ideally they should lead to political dialogue and a permanent peace in Burma. The roadmap must include a timeframe for further negotiations, a focus on step-by-step plans for DDR (Disarmament, Demobilisation and Reintegration) peace initiatives, and identification of issues over which to negotiate. Other essential components of the roadmap will need to include political dialogue, political and social reintegration, regional development and economic recovery. It is not possible to undo the destructive effects of a long-standing civil war overnight. Instead, the roadmap should focus on gradually resolving the thorny issues over a period of 5 to 10 years, while trust is built on collaboration between the government and ethnic groups to move the process forward. During this period, perhaps until the time ethnic groups feel confident about the peace process, they may be allowed to retain their weapons. Sometimes, political agreements between elites from both sides of the conflict forget the most important groups that face the war on a daily basis: civilians in conflict zones and the rank and file of rebel armies. It is therefore most crucial that the roadmap pay attention to their long-term welfare and rehabilitation. Equally crucial is the inclusion of emerging democratic institutions and civil society in Burma which should play supporting roles in the implementation of the roadmap. The democratic opening in Burma has afforded a window of opportunity for all to end the armed conflict. They must seize the moment and look at peace from a broader perspective. Aung Naing Oo is the Deputy Director of Vahu Development Institute and former Foreign Affairs Secretary of the All Burma Students Democratic Front. http://www.bangkokpost.com/opinion/opinion/272556/ending-ethnic-strife-needs-a-new-roadmap ------------------------------------------ USDP Accused of Unlawful Election Campaigning By THE IRRAWADDY Monday, December 26, 2011 Burma's military-backed Union Solidarity and Development Party (USDP) which dominates the national Parliament has been accused of unlawful campaigning for the looming parliamentary by-elections in a major Rangoon township. Residents of Mayangone Township told The Irrawaddy that last week USDP campaigners urged them to submit land registration applications to the party. In Burma, the state remains in control of all land with citizens having few rights. People must obtain official documents proving temporary property ownership, but in reality many cannot negotiate the country's unwieldy bureaucracy and fail to receive these. "To get these official land certificates many people in several quarters of the township have been asked to go and submit applications and relevant documents to the USDP office," said a local store owner in the town. "The USDP party organizers said they will give this service to us free of charge." Under the country's election laws, political parties can be disbanded if they are found to be using state properties and funds. The activity last week was carried out under the direct instruction of USDP Secretary General Htay Oo, claimed a party organizer in Mayangone Township. A local politician told The Irrawaddy that this activity by the USDP is unlawful and aimed at garnering votes for the upcoming by-election. The opposition National League for Democracy (NLD), led by pro-democracy icon Aung San Suu Kyi, will compete for 48 vacant parliamentary seats during the ballot. "This is a misappropriation of state power. I will be happy if the public gets official land and housing certificates, but if this is just false promises made for the sake of getting votes I will complain that the USDP is rigging the elections," said the politician. The USDP is led by former Burmese generals and was transformed into a political party from a military-sponsored civic organization, the Union Solidarity and Development Association, in June 2010. The party won a large majority in the Union Parliament through last year's election which was widely criticized for heavy vote rigging. But in a recent press conference, the country's Election Commission chief vowed that the looming by-elections will be free and fair. http://www.irrawaddy.org/article.php?art_id=22725 -------------------------------------------- Bloomberg Italian-Thai Seeks Japanese Loans for Myanmar Deepsea Port December 26, 2011, 9:29 PM EST By Suttinee Yuvejwattana and Daniel Ten Kate (Adds chairman's comments in third paragraph.) Dec. 26 (Bloomberg) -- Italian-Thai Development Pcl expects to sign loan agreements next year valued at $12.5 billion to develop a deepsea port, industrial complex and power plants in Myanmar, Chairman Premchai Karnasuta said. Japan Bank for International Cooperation will likely provide most of the funding for the port, road and railway links in Dawei, less than 300 kilometers (186 miles) west of Bangkok, Premchai told reporters. Officials at the Tokyo-based JBIC office were not immediately available to comment, said a spokeswoman who declined to give her name. "We expect to get partners and funding for the project next year," Premchai said in Bangkok today. "It will help reduce logistics costs and relieve congestion in the Malacca Straits." Thailand's government has backed the project in Dawei to provide an alternative route for exporters, including Japanese companies that use the country as a manufacturing base, to ship goods to Europe and the Middle East. Italian-Thai, the nation's biggest construction company which won a contract from Myanmar to develop the port last year, has emphasized the port's potential to connect land routes throughout the region. Italian-Thai expects to win construction contracts valued at 400 billion baht next year, not including the Myanmar projects, up from 170 billion baht this year, Premchai said. The company's shares gained 0.5 percent to 3.72 baht today. The stock has declined 20 percent this year, compared with a 0.02 percent drop in the benchmark SET Index. Land Sales Italian-Thai plans to complete a 132-kilometer road from Dawei to the Thai border within three years, Premchai said. The company expects to gain income from selling 50,000 rai (80 square kilometers) of land, an area equivalent to about a 10th of Singapore, and serving as the main contractor on infrastructure projects, he added. Of the loans Italian-Thai plans to secure next year, $3.5 billion will be for the port and roads, $2 billion for a railway and $7 billion for two power plants, he said. Japan would seek to help finance the project provided it can reach a deal on Myanmar's "huge" outstanding debt, Kimihiro Ishikane, a deputy director of Asian affairs at Japan's foreign ministry, told reporters in Bali on Nov. 16. South Korea's SK Engineering & Construction Co. has shown interest in oil and gas projects in Dawei, Somchet Thinaphong, managing director of Dawei Development Co., an Italian-Thai unit, told reporters at the same event. Steel Mill Italian-Thai is still seeking partners and financing for an integrated steel mill, an oil, gas and petrochemical complex, and fertilizer plants, Premchai said. It signed an initial agreement last month with Ratchaburi Electricity Generating Holding Pcl to develop coal-fired power plants in Myanmar with a combined capacity of 4,000 megawatts. Italian-Thai was founded in 1958 through a partnership of business executives from Italy and Thailand. It oversaw the construction of Bangkok's main international airport and elevated train line and operates in about a dozen countries around Asia. --With assistance from Jae Hur in Tokyo. Editor: Tony Jordan To contact the reporters on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net; Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net To contact the editor responsible for this story: Tony Jordan at tjordan3@bloomberg.net http://www.businessweek.com/news/2011-12-26/italian-thai-seeks-japanese-loans-for-myanmar-deepsea-port.html __._,_.__