Friday, July 5, 2013

The Irrawaddy Magazine

The Irrawaddy Magazine

Wa to Meet Govt Peace Team over ‘Misunderstandings’ in Tense Shan State

Posted: 05 Jul 2013 03:11 AM PDT

Panghsang is Shan State is the headquarters of the United Wa State Army (UWSA). (Photo: Sai Zom Hseng / The Irrawaddy)

Panghsang is Shan State is the headquarters of the United Wa State Army (UWSA). (Photo: Sai Zom Hseng / The Irrawaddy)

Ethnic Wa leaders and the government's peace negotiators are likely to meet next week in Kengtung Township, Shan State, amid escalating tensions between the two sides.

The meeting, originally planned for today, was postponed to await the response from representatives of the Wa's Panghsang headquarters, according to Shan State Chief Minister Sao Aung Myat.

Members of the Union Peacemaking Working Committee, led by its vice chairman Thein Zaw, are expected to attend next week's meeting along with Sao Aung Myat, Shan State's commander-in-chief and members of Parliament.

"As soon as they respond, we could meet within the next week," Sao Aung Myat told The Irrawaddy on Friday.

"The agenda is to talk about the difficulties and any misunderstandings [between the two sides]," he said. "The priority is to manage the local affairs legally, the difficulties they now face."

Sam Khun, a United Wa State Party (UWSP) spokesman, told The Irrawaddy on Thursday that topping the agenda would be developments in the southern Wa region.

"The meeting will be held in Kengtung within a couple of days," Sam Khun said, but added that representatives from the UWSP's Panghsang headquarters had not yet been selected. High-level UWSP leaders and commanders from its militant wing, the United Wa State Army (UWSA), are expected to join the meeting.

Sam Khun did not provide comment on the situation in Tachileik, a town on the border with Thailand where relations between government troops and the UWSA, Burma's largest ethnic armed group, are increasingly strained.

Tensions reportedly escalated after government troops surrounded Wa outposts in Mongton Township. The liaison office in Tachileik, one of four that the Wa have opened in the state, has reportedly been shuttered.

"The root of the tension is the dispute over land in the permitted area [where the Wa people are allowed to do business] in Wa southern region," Sao Aung Myat said.

The ethnic Wa have been granted the right to do business within a designated but occasionally disputed area since the UWSP signed a ceasefire agreement with the military regime in 1989. The exact details of the business arrangement have been muddled by successive peace accords signed by different governments since the 1989 agreement.

The UWSP has been granted autonomy to administer six townships that fall within the Wa self-administered region, as stipulated in the 2008 Constitution.

But a recent push for greater autonomy and recognition of a "Wa State" has complicated relations between the UWSP and the Union government.

"The situation is stable," Sao Aung Myat said. "It [reports of elevated tensions] would be only speculation spread around at the ground level."

Additional reporting by Than Htike Oo.

Ta’ang Army Faces Tough Battle With Opium

Posted: 05 Jul 2013 04:19 AM PDT

Workers cut opium near the Burmese border in this undated handout photo. (Photo: Reuters)

Workers cut opium near the Burmese border in this undated handout photo. (Photo: Reuters)

RANGOON – Fighting government troops on one front, and opium cultivation on another, is no small challenge, says the army chief of the Ta'ang National Liberation Army (TNLA).

The armed rebel group of more than 1,500 troops adopted a policy last year to eradicate opium cultivation in their territory in east Burma, as addiction becomes an increasingly common problem among the ethnic Palaung people, who are also known as Ta'ang,

The policy, adopted in December, calls for a complete end to opium cultivation by 2017 in the Palaung area, but the armed group says it faces several challenges.

"A lot of our men have become opium addicts," Tha Ho Palan, chief of the TNLA, told The Irrawaddy recently. "Even some educated youths have become addicts. We worry that all of our men will become addicted in the next few years. This is why we decided our armed troops should fight opium cultivation."

In east Burma's Shan State, where the armed group operates, the northern townships of Manton and Kutkai are known for growing opium poppies.

Tha Ho Palan, 37, said his troops have destroyed about 3,000 acres of opium poppy fields in the three townships. About 40 percent of the farmers responsible for their cultivation were Palaung, he said, while the rest were ethnic Chinese.

Drug addiction had fueled unemployment in the region, he said, with social problems arising in many communities.

"When men start using opium, their wives struggle to keep their families alive. Most housewives go to China and get [re]married there, and then children from those families become victims," he said.

When the armed group initiated its anti-drug campaign, it faced some resistance, with critics pointing to the government army's own failed attempt to eradicate opium cultivation in the state.

"Our people, including businessmen, told us from the beginning that we couldn't stop opium cultivation," Tha Ho Palan said. "After seeing that our troops were able to stop 75 percent of the cultivation in areas under our control, they support us a lot now."

He said the Palaung troops had warned farmers not to grow opium and were continuing to destroy fields where the poppies were found.

"Opium is our enemy," he said. "Our people have been killed silently, not from the shot of a gun, but from opium."

Additional reporting by Kyaw Kha and Mongra.

From Black Market to Stock Market: Changing Times for Money Changers and Tourists in Rangoon

Posted: 05 Jul 2013 05:57 AM PDT

A credit card-accessible ATM near Rangoon's Sule Pagoda. (Photo: Simon Roughneen / The Irrawaddy)

A credit card-accessible ATM near Rangoon's Sule Pagoda. (Photo: Simon Roughneen / The Irrawaddy)

RANGOON – For foreigners edging sweatily along Rangoon's humid streets, "change money?" is a common refrain around tourist attractions and hotels, where local black-market money changers compete to offer bank-beating rates of exchange to dollar-carrying visitors.

But with ATMs being installed across the city, including some that accept Visa and MasterCard, foreigners are no longer completely reliant on the often troublesome need to procure enough pristine new US dollar bills before their trip, for exchange to Burma's kyat after landing in Rangoon.

Harun, who would not divulge his full name, is a money changer working the streets near Rangoon's Sule Pagoda, one of the estimated 100 to 200 black-market dealers who make a living changing dollars to kyat.

"Yes, business has gone down, but we're not sure yet if that's because of the ATMs," he says. Right now, in the middle of the wet season, tourist numbers are down from their usual dry season peak, so it is still difficult for money changers to assess the impact of credit card-friendly ATMs—still just half a year old in Burma—on the tourist dollar-for-kyat exchange trade.

"These days, I have maybe only one business [transaction] each day," says Harun. "Before the wet season, and last year, maybe seven or eight."

Visa says cards can be used at "over 150" ATMs in Burma, with more than 200 point-of-sale (POS) locations across the country in shops, restaurants and hotels. MasterCard users can avail themselves of 140 ATMs in Burma and 72 POS acceptance terminals in Rangoon and Naypyidaw.

"Visa has most recently announced the continued momentum of its payment network expansion in Myanmar with Co-operative Bank (CB), Kanbawza Bank (KBZ) and Myanma Apex Bank (MAB) to further enable point-of-sale (POS) acceptance for Visa payment cards," a company spokesperson told The Irrawaddy by email.

Esther March and Jaume Pedros, two newly arrived visitors from Barcelona, say they knew before their trip that it would be possible to use their credit cards in Burma.

But, given that these facilities are new, they nonetheless brought dollars for exchange—money they plan to swap inside one of Rangoon's banks, rather than on the street.

"It was not clear to us how many ATMs there are and how reliable they can be," says March.

Scanning a map of Burma they draped over a table in a café, March and Pedros point out that they will spend no more than a couple days of their one-month holiday in Rangoon. "We will be in the countryside and traveling most of the time—to Golden Rock, to Inle Lake, to Mandalay, to Bagan," says Pedros, listing some of Burma's tourist draws. "We don't know if there will be ATMs outside Yangon, even if the system here in the city is good."

In Rangoon, ATMs are still scattered, as are POS locations in shops and restaurants where credit cards can be used, so tourists might face a couple miles' walk or a taxi ride to the nearest one—assuming they know where it is. Seeking assistance from a hotel concierge—a usual compass-beating orientation routine for befuddled tourists—might not help, either. Asked if they knew where to find the nearest credit card-friendly ATM, staff members at the nearby Traders and Central hotels advised The Irrawaddy to try some of Rangoon's big shopping malls, such as Junction Mawtin or Yuzana Plaza, although there is an ATM less than a five-minute walk from both hotels.

There, Albert Aung is manager of the CB Bank branch, close to Sule Pagoda and Rangoon's City Hall. He says his usual money-changing business has not yet been affected by the ATM on the wall outside, one of the few locations across the city where a Visa card can be used to withdraw cash.

"Many foreigners don't know that we have a machine [ATM] here in Myanmar," he says. "They still think they need to bring dollars to change."

Another reason the branch's exchange business is holding, for now, is the ongoing fall in value of the kyat, which seems yet to find its optimum market value amid Burma's ongoing economic reforms and uptick in foreign investment.

"The rate has become more or less the black-market rate, or, as we call it nowadays, the 'informal' rate," says Than Lwin, deputy director of KBZ Bank, which has 55 ATMs across Burma.

For Albert Aung, the kyat's slide—it has lost 18 percent of its value against the dollar since being floated in April 2012—means he is mostly just changing small amounts of dollars these days, as the greenback strengthens against the Burmese currency.

"People are keeping dollars, waiting for the best time to change," he says, with the black-market traders watching the bank's rates to see if they can offer a better deal.

Outside the branch, the street-walking money changers linger, whispering the "change money" mantra to the occasional foreigner stopping to withdraw kyat at the CB ATM.

Woo Young-Seok, a Korean businessman now based in Rangoon, says that although the bank system in Burma is "getting better," it is still not up to scratch for foreigners trying to live and work in the country's newly opening economy.

"It's good that there are ATMs now," he says, slipping his Korean-issued Visa card back into his wallet. "But I cannot rely on them completely. Maybe when I come and go, I still bring dollars."

And while Burmese citizens still cannot get a credit card from a local bank, the nascent modernization of Burma's banking and payments regime is proving a boon to Burmese businesses that depend on foreign customers.

Lynn Zaw Wai Mang is executive director of Unique Asia Travel and Tours, and a repository of horror stories about tourists visiting Burma in the pre-ATM era. "I met so many in my office here who came with dollars but ran out of money before their holiday was over," he says.

"I even paid a couple of times for a room for a night for some, just six or seven thousand kyat, after they came in here saying their money was gone and asking if they could use their card somewhere to get cash."

Now that foreigners can use credit cards at ATMs, Lynn Zaw Wai Mang says his business is slowly growing as a consequence. "If they know they can withdraw money here, then they will spend more for a bus ticket, flight ticket or hotel," he says.

"Before they could only spend whatever amount of dollars they brought into the country, and could not change plans or spend more because of that. Now they can change plans after they arrive, maybe rent a car, have more financial security for their vacation."

The next step for his business and for others in the sector, he says, is installing an in-house point of sale for foreign credit card users, so he can sell flights and hotel rooms that way in his shop. "We are talking to CB Bank about this," he says. "Hopefully we will have [POS] by October or November."

But another money changer, San Win—who estimates that there about 150 others doing the same work these days in Rangoon—believes that in two to three years the illicit money exchange market will fade away as Burma's wider economy modernizes.

"I think once they [the Burmese government] bring in the new central bank law, the situation for the black market will change," he says.

A new central bank law is one of several economic and financial reforms expected to be introduced in Burma over the coming months.

But that will take time to implement, says Than Lwin, cautioning that even if Parliament passes the law, "it will then be a slow process to draw up the central bank rules and regulations, and then to build capacity for staff."

Than Lwin believes the black market—or informal market, as he prefers to call it now—will continue to play a role as Burma slowly develops more modern banking and financial systems.

"We have had a black market in money for 50 years, we will still have some of it, particularly the hundi system, for a long time," he says, referring to an informal cross-border money transfer system often used by overseas Burmese to remit to families. "It will be still difficult for some time for banks to compete."

Nonetheless, some of Burma's money changers are hedging against a shift away from the informal money market, and looking ahead to what the country's other economic reforms might bring.

"I'm making plans for other business," says San Win, tapping a coin on the table in a Rangoon bakehouse, as if to emphasize his sense of anticipation. "There will be a stock exchange here by 2015. I am researching that now and how maybe I can get some business that way."

Photo of the Week 09

Posted: 05 Jul 2013 05:52 AM PDT

Buddhist monks stand outside a mosque in Rangoon's North Okkalapa Township on Wednesday, following an interfaith event with Muslim leaders to discuss ways of alleviating religious tension in the country. (Photo: JPaing / The Irrawaddy)

Buddhist monks stand outside a mosque in Rangoon’s North Okkalapa Township on Wednesday, following an interfaith event with Muslim leaders to discuss ways of alleviating religious tension in the country. (Photo: JPaing / The Irrawaddy)

Tycoon Reportedly Met Burma Military Chief During Russia Visit

Posted: 05 Jul 2013 05:11 AM PDT

Burmese tycoon Tay Za at his office. (ygnutd.com)

Burmese tycoon Tay Za at his office. (ygnutd.com)

Sources in Rangoon's business community report that tycoon Tay Za visited Russia in June at the same time as Burma's Commander-in-Chief Min Aung Hlaing. The commander is believed to have gone to Moscow to settle arms deals that were signed with Russia under Burma's past military regime.

Sen Gen Min Aung Hlaing visited Moscow on June 23-29 at the invitation of Russian Defense Minister Sergey Shoigu.

He inspected the JSC RAC MiG plant near the capital Moscow and was provided with a test flight demonstration of Russia's newly upgraded jet fighter, the MiG-29 M, government newspaper The New Light of Myanmar has reported. He also met Burmese military scholarship trainees who are receiving Russian training.

Tay Za, who is on a US sanctions list for procuring arms for Burma's former military regime, flew to Moscow shortly after Ming Aung Hlaing arrived, several sources in Rangoon's business community told The Irrawaddy.

Three prominent Burmese businessmen said during separate conversations that Tay Za met up with Min Aung Hlaing in the Russian capital, adding that the tycoon had also met the Burmese military trainees and provided them with some of money for their overseas stay. They said Tay Za had flown to Russia in the company of several other Burmese tycoons.

The businessmen declined to be named because of the sensitivity of the topic.

Tay Za, 48, is one of Burma's richest men and is the chairman of Htoo Group, a conglomerate with businesses interests in teak trade, banking, hotels and the airline industry.

He has been on the US government sanction list since 2008 because he helped Burma's repressive military regime procure weapons overseas. The US Treasury has described him as "an arms dealer and financial henchman of Burma's repressive junta." Tay Za has denied the charges.

He allegedly helped the junta obtain arms during Burma's decades of international isolation, when it could only buy weapons from China, Russia and North Korea. On at least one occasion he reportedly helped secure a deal to buy Russian-made helicopter gunships and other military hardware.

Maj Aung Lynn Htut, a former Burmese intelligence officer who currently lives in the United States as a political refugee, said Tay Za had first helped the junta with illicit export of Burmese timber and later used his connections to put the regime in touch with Russian arms dealers.

"When the SLORC [State Law and Order Restoration Council] just came to have power [in 1988], it had no money. So a large amount timber was cut down to sell. That's how the SLORC became acquainted with Tay Za," Aung Lynn Htut told The Irrawaddy.

"[Later] the regime could buy MI 17 [helicopters] from Russia, thanks to Tay Za's links," he said.

Burma's Air Force fleet currently consists of aircraft models from Russia, such as the Mikoyan MiG-29 fighters and several types of attack helicopters, and Chinese, American and European models. Burma's army is known to have Russian surface-to-air missiles and artillery.

Diplomatic sources in Rangoon said they believe that Min Aung Hlaing has been trying to clear arms deals with Russia, China and North Korea that were signed under Burma's past military regime.

A Western diplomat said Min Aung Hlaing might have called on certain Burmese businessmen, such as Tay Za, to help settle these deals, adding that it was not uncommon for businessmen to sort out international weapons sales. "There are many brokers in the business and millions of cash involved," he said.

Aung Lynn Htut, the former Burmese intelligence officer, said he believes that Ming Aung Hlaing's recent trip to Russia had been part of a Burmese effort to maintain good relationships and smooth out past deals with Moscow for supply of military hardware.

"Since Burma is in an early stage of military cooperation with the US, I think it has to go to Russia to counterbalance its relations," the ex-spy said in late June. "I also think that his trip is to settle contracted deals between Russia and the previous military regime, which were signed by Vice Snr-Gen Maung Aye, the then second-in-command of the Burmese junta."

The American government has greatly improved its ties with Burma in the past two years following the introduction of political reforms under President Thein Sein. The US is rebuilding its ties with Burma's military, while urging it to cut its ties with North Korea and clean up its poor human rights record.

Earlier this week, the US imposed sanctions on Lt-Gen Thein Htay, the head of Burma's Directorate of Defense Industries. Washington said that the organization had carried out missile research and development and used North Korean experts in violation of a UN Security Council ban arms deals with the isolated communist regime.

Shwe Mann to Take Over As Union Parliament Speaker

Posted: 05 Jul 2013 05:08 AM PDT

Lower House Speaker Shwe Mann speaks during a meeting OF Parliament in Naypyidaw. (Photo: Irrawaddy)

Lower House Speaker Shwe Mann speaks during a meeting OF Parliament in Naypyidaw. (Photo: Irrawaddy)

RANGOON — Lower House Speaker Shwe Mann will take over the position of Union Parliament speaker from Khin Aung Mying, the Upper House Speaker, on August 1, lawmakers in Naypyidaw said.

The Union Parliament speaker represents the two chambers of Burma's legislature, the upper and the lower house. The position, which holds great political power, is rotated between the speakers of the two chambers every two and a half years.

"As Parliament came into operation on January 31, 2011, Khin Aung Myint's period as the Union Parliament Speaker ends on July 31, 2013. Shwe Mann will take over this position on August 1," said Kyi Myint, a lawmaker with the National Democratic Force (NDF), a small opposition party.

Shwe Mann chairs the ruling Union Solidarity and Development Party (USDP), which comprises members of Burma's former military regime. Khin Aung Mying is also USDP member.

Shwe Mann will stay on as Union Parliament Speaker until the 2015 elections. The USDP chairman has said recently that he wants to run for president in the election, which is supposed to be Burma's first free and fair vote in decades.

Shwe Man was the third most powerful general in Burma's former military junta, after Senior General Than Shwe and Vice-Senior-General Maung Aye.

NDF lawmaker Phone Myint Aung said Shwe Mann would have to prove his political talents in the new position if he wanted to convince the Burmese public that he would make a good future leader for the country.

"Shwe Man, who expressed his desire to be president, needs to concentrate on reforms while he is Union Parliament Speaker. He must try hard in order to show that he is a real leader who is supported not only by the public, but also by the military," Phone Myint Aung said.

"How much he can persuade and exhort others to amend the Constitution will be very crucial for the 2015 election," he added.

The Constitution, drafted by the junta in 2008, has numerous undemocratic provisions that gives sweeping powers to the military and puts Burma's conflict-ridden ethnic regions under strict control of the central government. It also prevents opposition leader Aung San Suu Kyi from becoming president as she was married to a foreigner.

Suu Kyi has said she wants to work with the ruling USDP and the military to amend the Constitution. USDP members have said they are willing to consider constitutional amendments.

Burma's ethnic rebel groups are demanding amendments that would give their regions greater political autonomy. Naypyidaw has told the rebels during the ongoing peace talks that only Parliament can address such political demands.

Phone Myint Aung said Shwe Mann would face a complex task of resolving the issues related to the peace process in Parliament.

"After getting cease-fire agreements with different armed groups of ethnic minorities, political dialogue will follow. The government has nothing to do with political dialogue, only the Parliament," the lawmaker said.

"As the parliament has to hold political dialogue, the roles of the Union Parliament Speaker Shwe Man and also that of Aung San Su Kyi will be very important," he said.

Dr Yan Myo Thein, a Rangoon-based political commentator, said that it remained to be seen whether Shwe Mann would be a force for constitutional change and reform in his new role of Union Parliament Speaker.

"I don't presume like it is 100 percent sure that there will be reforms in the Parliament after Shwe Mann becomes Union Parliament Speaker. Besides, I foresee just very little scope for constitutional change in Parliament," he said.

Burma-Indo Border Market Threatened by Indian Insurgents

Posted: 05 Jul 2013 02:45 AM PDT

Nant Pha Lon Market is seen in Tamu, Sagaing Division. (Photo: Zoin.info)

Nant Pha Lon Market is seen in Tamu, Sagaing Division. (Photo: Zoin.info)

MANDALAY — Two Indian border traders were temporarily detained Thursday on the Indo-Burma border by members of an Indian insurgency who attempted to rob them, in the latest attack that has left traders and shop owners in the area calling for improved security.

The Indian traders say they were detained by two men, suspected members of an Indian insurgency, while shopping at Nant Pha Lon Market in the Burmese border town of Tamu, in northwest Burma's Sagaing Division. They say they were held in a store and threatened for money, but were then freed after local youths in the town called security, prompting their attackers to escape.

"We were told that we had to give them between 200,000 and 500,000 Indian rupees [US $3,300 and $8,300], depending on the size of our business, otherwise our children would be killed and our shops would be bombed," said one of the traders, who asked to remain anonymous.

The traders and local residents say the suspects belonged to the Kangleipak Communist Party (KCP), a Manipuri insurgent group that operates around the Indo-Burma border, especially in Burma's Tamu area.

"Since they're based in the Tamu area, on Burmese soil, our Indian authorities couldn't do anything," said the trader, who has worked on the border for 25 years. "I'm sure they were not Burmese people but were from the Manipuri insurgency group."

"Thanks to the Burmese youth, we are free—but still not safe," he added. "We just want the Burmese government and local authorities to give us protection."

Local residents say similar incidents have happened frequently and the local authorities have failed to offer security.

Shop owners at the Nant Pha Lon Market have shuttered their stores and said on Thursday they worried the entire market would close in the following days.

"If they treat the Indian traders like this, nobody knows what will happen to us," a Burmese shop owner told The Irrawaddy. "We can't tell if we will be threatened the same way. We're worried our market will close because people are afraid.

"This is not the first time. There are about five to six Indian insurgency groups operating around this area, and each group gives us different problems. If things like this happen, authorities tighten up security for a while but later relax like always, and there's a lack of security and protection, as before."

Local traders say they worry further attacks could threaten border trade.

"Ten years ago, there were many Indian wholesale traders who came to the area, and business was quite good because we could deal directly with the traders," another shop owner said. "But because of these kinds of problems, the wholesalers don't dare come here alone now—they let retailers buy things for them, which can increase the price of commodities.

"In this situation, how can traders sell their goods for a good price? In this way, the market will be broken and there no more traders will do business with us. The authorities must control the situation effectively."

Border traders have cited similar incidents in the past, accusing insurgents of beating porters and dragging Indian traders into deserted corners of stores, threatening them with violence and demanding money.

"We have submitted appeals to the President's Office in Naypyidaw and to the state government several times, but we haven't received any information yet," another Burmese shop owner said. "We can only approach our government, not India, because this is happening on our land. These thug-like people from the other country are bullying on our soil and affecting Burma's image."

Local authorities declined to comment.

Nant Pha Lon Market includes more than 1,000 shops that sell basic commodities, rice and clothing, often to Indian traders who bring the goods back to India's Manipur State via the Tamu-Moreh border highway. Medicine, dyes and cotton are often brought to Burma from India.

The Indian government and Indian media say Manipuri insurgencies, including the KCP, operate in Tamu and other areas in northwest Burma. However, the Burmese government has said these groups are not allowed to operate on Burmese soil.

Something Burmese Patriots Should Consider

Posted: 04 Jul 2013 10:21 PM PDT

The sectarian conflict between Muslims and Buddhists, which started last year in western Burma's Arakan State, is becoming increasingly complicated. In order to analyze why it is taking place and how it has spread to other cities and areas quickly, I want to go back to the beginning of the problem.

The inter-communal riots broke out following an alleged rape and killing of Thida Htwe, an Arakanese woman from Kyauknimaw Village in Arakan's Ramree Township in late May 2012, by three Muslim youth. Many people have heard about this case but few know about its details. A closer study reveals however, that there is something unusual about the alleged crime and the way that information about it was spread.

The supposed rape took place in a place on Ramree Island, a very remote area off the Burmese coast, yet it was reported online in Facebook posts the very next day. The news spread rapidly on the social network and quickly inflamed lingering tensions between Muslims and Buddhists in Arakan State.

The victim's photo and related instigation, as everybody knows, provoked a Buddhist mob attack on a bus of Muslim pilgrims visiting Taunggup a few days later. Then violence rapidly spread through different parts the state and beyond.

Similar incidents occurred in the region in the past, but never before did it spark large-scale inter-communal violence. Unlike in previous cases, an unpleasant photo of the victim was spread through print and online social media, stirring up strong emotions among Buddhist nationalist readers.

I've tried to find out who put the provocative photo online, as I suspected from the start that it was not uploaded by any journalist.

In the news industry, reporters and photographers initially send their material to their organizations, where editors will select photos based on appropriateness and a journalistic code of ethics. News organizations then publish the photos with short description of who took the photo, when and where. However, the photo showing the lifeless body of Thida Htwe was circulated without any attribution.

Seeking more details about the source of the photo, I spoke with several people who live in the victims' village of Kyawnimaw. They said no reporters had visited the village and, more importantly, there was no internet access in the area, raising the question how anyone could have upload the photo of the victim to the internet so soon.

Since a photograph of a crime scene is generally very difficult to obtain for a reporter, I wonder if authorities have deliberately leaked the photo in order to inflame tensions between the two communities. As of yet, officials have made no effort to reveal how the photo was obtained and spread, while authorities have prosecuted few perpetrators of the horrific of inter-communal.

This lack of a resolute government response has however, benefitted the current administration of President Thein Sein, which comprises mostly members of the ruling Union Solidarity and Development Party (USDP). Naypiydaw's handling of the conflict has garnered it the support from extreme nationalists across the country.

In the year that's passed since the violence first broke out, four public rallies have been organized in the Arakan capital Sittwe in order to show support for the government. I've learned that such rallies can be organized very quickly compared to other types of public protests, as government permission is easily obtained.

Remarkably, the Arakanese Buddhist population — who are not satisfied with the government's slow-moving ethnicity registration process for local Muslims — have chosen not to organize any public rallies that criticize the government on this issue. The most recent demonstration, held early last month, was held in support of a new government policy that would prevent Muslim families in Maungdaw District from having more than two children.

The policy sparked a flurry of critical reactions in the international media and among rights groups. Burma's opposition leaders Aung San Suu Kyi said it would violate basic human rights. Since then, authorities have been vague when asked to explain the policy to the media and foreign diplomats. Recently, Arakan officials have even denied that a two-child order was issued.

Arakan Buddhist communities in the border areas and elsewhere however, believe that the order is effective until it is repealed or overwritten.

After having been inundated with anti-Muslim propaganda for many months, ordinary Arakanese have even become disaffected with the Rakhine Nationalities Development Party (RNDP). The nationalist local party is the main political rival of the USDP in Arakan State and took the majority vote in the 2010 national elections.

RNDP Chairman Dr Aye Maung has seen his popularity plummet and he is reportedly giving up his leadership position. The Arakanese have turned away from the chairman because he had urged Aung San Suu Kyi — who is viewed in Arakan is being pro-Muslim — to contest the 2012 by-election in 2012 and become a parliamentarian.

In a recent discussion in Rangoon on June 22, Igor Blazevic, a Czech-based human rights campaigner of Bosnian origin warned that the current conflicts in Burma, including the sectarian one, could lead to the beginning of a new authoritarian rule in the country. Blazevic, who heads the Educational Initiatives, a training program for Burmese activists based in Thailand, also noted that in Serbia and Ukraine, the ruling parties have used nationalism as a weapon to crush pro-democratic opposition and win elections.

I would therefore like to urge extreme nationalists in Burma to calm down and thoroughly think about what really is happening in our country.

Min Naing Thu is a former Irrawaddy reporter who is currently based in Sittwe. He closely follows the inter-communal tensions in Arakan State.

‘Democracy Is No Guarantee,’ Indonesian Lawmakers Say as Morsi Falls

Posted: 04 Jul 2013 10:04 PM PDT

An anti-Mursi protester waves Egypt's national flag as military jets fly in formation over Tahrir Square in Cairo on July 4, 2013. (Photo: Reuters / Khaled Abdullah)

An anti-Mursi protester waves Egypt's national flag as military jets fly in formation over Tahrir Square in Cairo on July 4, 2013. (Photo: Reuters / Khaled Abdullah)

JAKARTA — Indonesian politicians called on the government to learn from the crisis in Egypt, saying democracy did not guarantee a leader could stay in power despite winning it democratically.

Golkar Party cadre Hajriyanto Tohari said Egypt showed the government should have shared power even if the president was elected fairly, as was the case with Egypt's Mohamed Morsi.

"He should have also listened to the voices that didn't support him. He should have shared power," said Hadjriyanto, adding that a democratic election was not everything.

Susaningtyas Kertopati, a lawmaker from the People's Conscience Party (Hanura), said the Indonesian government should learn from the political turmoil in Egypt because such a situation could happen here if the government committed too many violations.

"This could make the people's emotions escalate. What is feared is that demonstrations are becoming more massive and that they could lead to a coup … That might just happen," Susaningtyas said in Jakarta on Thursday.

Ichsanuddin Noorsy, an expert on public policy, said the democracy in Egypt was not followed up by compliance with its constitution and law, ultimately leading to the president's ousting.

President Susilo Bambang Yudhoyono has called on Indonesians in Egypt, especially students, to stay away from areas prone to clashes.

The president called on the Indonesian Embassy to facilitate the Indonesian citizens to protect them from local political conflicts.

"The president instructed Ambassador Faizi to call on our nationals in Egypt to stay away from Egypt's domestic affairs and to avoid places or situations that could cause danger," presidential spokesman Julian Aldrin Pasha said at the State Palace on Thursday.

Yudhoyono also hoped the transition in Egypt would go smoothly and that Indonesia would only recognize a regime or government if it operated in accordance with the Constitution.

Foreign Affairs Minister Marty Natalegawa said the government was sad to see the recent developments in Egypt.

"All this time the Indonesian government was hoping the transition of democracy process in Egypt could run well, orderly and peacefully. Hopefully the situation in Egypt can recover immediately and the democratic process is in line with what the people of Egypt wanted," Marty said.

Marty also called on Indonesian nationals in Egypt to obey the law and regulations in the country, avoid places where large groups of people were gathering and to stay away from Egypt's domestic affairs.

US Man in N Korean Prison Hopes He’s Released Soon

Posted: 04 Jul 2013 10:01 PM PDT

A North Korean prison policewoman stands guard behind fences at a jail on the banks of Yalu River near the Chongsong county of North Korea, opposite the Chinese border city of Dandong, on May 8, 2011. (Photo: Reuters)

A North Korean prison policewoman stands guard behind fences at a jail on the banks of Yalu River near the Chongsong county of North Korea, opposite the Chinese border city of Dandong, on May 8, 2011. (Photo: Reuters)

TOKYO — An American imprisoned in North Korea has told a pro-Pyongyang media outlet that he wants the United States to "try harder" to help him gain amnesty from a sentence of 15 years of hard labor for alleged crimes against the government.

In what appears to be his first media interview since his November arrest, Kenneth Bae told the Tokyo-based Choson Sinbo in a story published Wednesday that he had hoped to be out by Thursday. That's not only Independence Day but his father's 70th birthday. He said he still hopes the US government will help him get released quickly.

He was sent in May to what the North calls a "special prison," and Pyongyang's decision to allow the interview may have been an attempt to show that he is not being treated harshly. But an analyst said Pyongyang is also trying to use Bae as a bargaining chip to start bilateral talks with the United States.

Bae, 44, of Lynnwood, Washington, was arrested in the northeastern North Korean region of Rason and was interviewed last week at a North Korean prison where he is serving out his sentence. An American of Korean descent, Bae entered the special economic zone as a tour operator but was convicted in late April of plotting to commit "hostile acts" against the North Korean government.

Photos and video of Bae published this week by Choson Sinbo show him with his head shaven and wearing gray overalls bearing the number 103.

Choson Sinbo, which caters to Japan's pro-Pyongyang North Korean community, provided an unusual look at Bae's life inside his "special education center" cell. It is 12 square meters and has a wash basin, a desk and a television.

Bae said he wakes up at 6 every morning. He then does farm work, planting seeds and weeding, until his labor ends at 6 pm. He gets Sundays and holidays off, he told the paper during a June 26 interview.

"People here are very considerate, so I'm not working too hard, but my health is not in the best condition so there are some difficulties," Bae said in a Choson Sinbo video shared with CNN and posted to the paper's Facebook page. It's likely he gave the interview in the presence of North Korean officials.

Many in the United States see Bae's imprisonment as bait with which North Korea hopes to win diplomatic concessions from Washington. North Korea remains locked in a standoff with the United States and its allies for continuing to develop nuclear weapons despite UN sanctions. It launched a long-range rocket in December and conducted a nuclear test in February.

Yoo Ho-yeol, a North Korean studies professor at Korea University in Seoul, said the photos and video of Bae "are purely for propaganda purposes."

Yoo said North Korea hopes to use Bae as an excuse to bring the US government into dialogue. The United States has responded coolly to the North's recent calls for talks, saying that Pyongyang must work toward denuclearization if it wants to improve relations.

Pyongyang denies using Bae, who is known in North Korea by the Korean name Pae Jun Ho, for political purposes.

Choson Sinbo's Pyongyang bureau chief, Kim Ji Yong, said the paper "worked hard to get this interview. Why the officials decided to grant it, however, is for them to say."

Bae informed his family in April he would not be allowed to appeal his sentence and urged them to lobby Washington to push for amnesty, North Korean officials have told The Associated Press.

"July 4th is my father's 70th birthday. So I was hoping that my problem will be worked out by the end of June," Bae said. "So my hope is that North Korea will forgive and the U.S. will try harder to get me out quickly. I'm asking for their help."

Washington has called for Bae's release.

"There is no greater priority for us than the welfare and safety of our US citizens abroad, as I've said many times," State Department spokesman Patrick Ventrell said in May. He urged North Korea to "grant Mr. Bae amnesty and immediate release."

However, there has been no indication that a high-profile American envoy is set to travel to North Korea to negotiate his release.

At least five other Americans have been detained in North Korea since 2009. The others were eventually allowed to leave without serving out their terms, some after clemency missions by prominent Americans, including former Presidents Bill Clinton and Jimmy Carter.

North Korean leader Kim Jong Un has the power to grant special pardons under the North's constitution.

Former NBA star Dennis Rodman has called on Kim to release the fellow American. The basketball player met and dined with Kim during a visit to North Korea earlier this year.

The human rights group Amnesty International has criticized Bae's lack of access to a lawyer. Pyongyang says he confessed and didn't want an attorney at sentencing.

Bae has had limited contact with the outside world. He has been visited by diplomats from the Swedish Embassy, which represents US interests there because Washington and Pyongyang lack official diplomatic ties.

AP Writer Elizabeth Shim in Seoul, South Korea, contributed to this report.

High-Flying Luxury: Battle for Asia’s Jet-Set Is Heating Up

Posted: 04 Jul 2013 09:57 PM PDT

A picture shows the bar in the first class section on board an Airbus A380 passenger plane of Emirates Airline. (Photo: Reuters / Thomas Peter)

A picture shows the bar in the first class section on board an Airbus A380 passenger plane of Emirates Airline. (Photo: Reuters / Thomas Peter)

SINGAPORE — With limousine pick-ups and on-board chefs, Asia's premium airlines are investing hundreds of millions of dollars on luxury services in a bet on a rebound in business from the wealthy, even as low-cost carriers fly high with the booming middle class.

Although business and first-class traffic has fallen significantly in the last few years as companies cut costs, carriers such as Singapore Airlines Ltd (SIA), Cathay Pacific Airways Ltd and Qantas Airways Ltd are estimated to still earn about 35 to 40 percent of passenger revenue from the high-margin segment.

Yields per premium passenger are around four to five times higher than those for economy class, underscoring why airlines are keen to pour money on amenities that range from luxurious cabins to fine dining.

Asia-Pacific airlines are the most profitable in the global aviation sector, industry data shows.

"If you don't upgrade your products, you are always going to be under pressure to drop the price more significantly," Tan Pee Teck, SIA's head of product and services, told Reuters in an interview.

"So, when people see the investment, see something new, fresh, there'll always be people who are going to try it, just like the way the A380 was launched."

While low-cost carriers such as Malaysia's AirAsia Bhd and Indonesia's Lion Air have been grabbing headlines with record plane orders to feed rapid demand for travel, the battle for Asia's richer travelers has also been heating up.

Singapore's flagship carrier has hired BMW Group's design unit, DesignworksUSA, to roll out new first-class seats featuring more privacy and personal stowage space.

The first-class cabins, along with more comfortable seats on business class developed by another design firm, will be put on Boeing's 777-300ERs and enter SIA's fleet later this year. SIA will showcase the new products at a media event on July 9.

Shifting Loyalties

The launch comes as SIA, considered the gold standard for customer service, and famous for its iconic "Singapore Girl" in sarong kebaya uniform, faces pressure from free-spending Gulf carriers.

State-backed Emirates Airline, Etihad Airways and Qatar Airways are investing heavily to attract travelers with fleet upgrades, extensive networks and new perks.

On its A380 flights, Emirates offers shower facilities for first-class passengers and an on-board lounge with open bar in first and business class cabins. It also provides a complimentary chauffeur service to first- and business-class passengers in more than 55 cities.

This has not gone unnoticed. "On my long-haul flights these days, I will go for Emirates over Singapore Airlines whenever I can," said Barry Lea, who has flown business class on SIA and Cathay.

"I find their in-flight entertainment top notch. It's all very well taking Singapore Airlines and being sort-of attended to by Miss Worlds but, on a 17-hour flight, the novelty wears off."

Emirates is relentlessly expanding its network from Dubai and this has given it a strategic advantage.

"Schedule is always going to be key," said Nick Rees, who manages Emirates' Singapore and Brunei operations. "Where we see our network being particularly strong is, we have one stop in Dubai to 35 points in Europe."

Ease of connections is a key factor for snagging premium business, and Singapore's location as a gateway into the fast-growing economies of Southeast Asia means the city-state's Changi Airport is still an important hub.

"Most carriers are putting their best product into Changi because of the competition here," said Rees.

Qantas, which has a five-year alliance with Emirates, unveiled a new Singapore lounge in April, with seating for 460, 20 showers and many 80-inch television screens.

As Asia's growth adds to the ranks of the region's super-wealthy, millionaires from countries such as Singapore, China, Hong Kong and Indonesia are splurging on premium air travel.

Asia-Pacific, second only to North America, drove global High Net Worth Individual (HNWI) population growth in 2012, increasing its HNWI population by 9.4 percent to 3.7 million, Capggemini and RBC Wealth Management said in a report.

"You get Indonesians traveling to the US to look at boutique hotels to purchase at a good price. And they are traveling in suites, they are travelling in first class and business class," said Tan.

"Certainly, the relative growth of the premium segment doesn't match the low-end growth. But there will still be growth and, for as far out as we can see, this is a segment we think will be sustainable."

Timothy Ross, Credit Suisse's head of transport research for Asia-Pacific, upgraded his rating on SIA to "outperform" from "neutral" last month, citing sustained growth in demand, the impact of lower jet fuel prices and the emergence of data supporting a recovery in business travel.

"Its challenge is to ensure that it is using its premium product on routes that will support a yield premium and not to gold plate product in markets where customers won't pay for this," Ross said.

Last year, SIA announced it would be stopping its all-business class, 19-hour flight connecting Singapore and Newark later in 2013, the longest scheduled non-stop route in the world, in an industry hit by high fuel costs and weak demand.

Caviar and Lobster

Other Asian airlines are also eyeing the premium market.

The likes of Malaysia Airlines and Thai Airways have introduced A380s and are making a pitch for the wealthier traveler, although they are hampered by less extensive networks.

Malaysia Airlines began serving caviar and lobster to first-class passengers on some routes last year, and has introduced first-class travel on its services from Kuala Lumpur to Hong Kong and Paris.

State-run Garuda Indonesia, in its largest investment ever, is taking delivery of 24 new aircraft this year as it expands further into the long-haul and premium market.

"We are definitely seeing an increasing trend of passengers upgrading and opting for our executive class when traveling with us," said Garuda's Chief Executive Emirsyah Satar.

Garuda plans to launch its first direct Jakarta to London service this year with its new Boeing 777-300ER equipped with eight first-class suites. The suites, featuring outsize seats that can be converted into full-flat beds, will offer live broadcast from six global channels and Wi-Fi connection.

Pre-flight concierge services will include a limousine pick-up and a personal butler. Passengers will be pampered by a chef on board and can enjoy in-flight entertainment on a 23.5-inch touch-screen LCD. The aircraft will also have 38 executive-class seats that can also be converted into a full flat bed.

"As travelers grow increasingly affluent, the demand for exceptional travel experiences is stronger than ever," Satar said.
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