The Irrawaddy Magazine

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• Bomb Blast Kills at Least Three People in Northern Shan State
• After Arrest in Govt Crackdown, Retailer Points to Alcohol Imports by Tycoons
• Burma Public Company Plans to Sell Gold at International Purity
• Military Leases Seized Ngapali Beach Land to Hotel Developers
• Balloon Fireworks Burn Down Tourist Cottages at Inle Lake
• DKBA Aids Letpadaung Activists in Violation of Ceasefire, Military Claims
• West ‘Cannot Afford’ Major Economic Aid to Burma, says China Commentary
• Japanese Beauty Queen Barred From Ceremony
• ADB to Loan $60 Million for Burma’s Electricity Network
• China Says Six Arrested After Deadly Riot in Xinjiang
• US Ups Security Aid to Southeast Asia, Criticizes China
• For Philippine Typhoon Survivors, Christmas Brings Hope Amid the Rubble
• Anger, Disappointment as Burma’s Men Go Down and Out at SEA Games Football

Bomb Blast Kills at Least Three People in Northern Shan State Posted: 17 Dec 2013 08:37 AM PST Rangoon police outside Traders Hotel, which was hit by a bomb blast in October. (Photo: JPaing / The Irrawaddy) RANGOON — At least three people were killed Tuesday when a truck blew up in an apparent bomb attack in Burma's northern Shan State, according to a local resident and a news report. A resident of Kunlong Township told The Irrawaddy that a makeshift truck normally used to carry agricultural products blew up as it drove over a bridge on the way into Kunlong town, which is located only about 10 miles from the Burma-China border. The resident, who requested not to be named, said the driver of the truck was killed instantly in the blast. The truck was carrying no other passengers, but a traffic police officer and two workers for the company Asia World, who were carrying out works on a road, were standing nearby and were also killed in the blast, the resident said. The truck, described as Chinese-made, was traveling from the direction of the larger town of Lashio and toward the Chinese border, the resident said. “The blast happened at about 3:30 pm, and the driver's body was blown all over the place," the resident said. "The police still can't find who the truck belonged to." The resident said the bridge on which the blast took place appeared to be slightly damaged. An official at the police station in Kunlong, contacted by The Irrawaddy late Tuesday, confirmed that a truck had exploded, but would not give his name or corroborate any details of the incident. According to a report from Agence France-Presse (AFP), quoting an official at national police headquarters, only three people were killed and two were injured from the blast. AFP also quoted local Union Solidarity and Development Party lawmaker Haw Shauk Chan—who put the death toll from the bomb at four—describing the explosive device as a "time bomb attached to a mine." The frontier areas of Shan State are home to numerous ethnic armed groups and are infamous for illegal opium and methamphetamine production. The Shan State Army-North, which is stationed in the area near Kunlong, has signed a ceasefire agreement with the government, but sporadic fighting still breaks out and the group has in recent months complained of government army troops being deployed near rebel positions. The blast comes as Burma is in the spotlight internationally, hosting the ongoing Southeast Asian Games and preparing for its chairmanship of the Association of Southeast Asian Nations in 2014. In October, a spate of mysterious small explosive devices—from time-detonated mines to hand grenades—exploded or were discovered around the country. Three people were killed and at least 10 were wounded by bomb blasts in five states and divisions in just a matter of weeks. Burma's police declared the bombings in October solved when they arrested eight suspects. Police claimed the suspects had admitted they were paid to plant the bombs by ethnic Karen businessmen who wanted to sow instability and deter foreign investment. The post Bomb Blast Kills at Least Three People in Northern Shan State appeared first on The Irrawaddy Magazine.

After Arrest in Govt Crackdown, Retailer Points to Alcohol Imports by Tycoons Posted: 17 Dec 2013 07:15 AM PST Imported wine in Rangoon, a product that is hard to come by these days in Burma following a govenrment crackdown. (Photo: The Irrawaddy) RANGOON — Burma's biggest retailer, City Mart Holdings, has defended its business operations following the arrest of one its directors on Friday during a government crackdown on unlicensed imported alcohol. City Mart said the alcohol was imported and supplied by firms belonging to Htoo Group of Companies and ACE Group of Companies, two large conglomerates owned, respectively, by well-known tycoon Tay Za and Phyo Ko Ko Tint San, who is the son of Minister of Sport Tint San. City Mart argued that the importers share blame for the situation and should also be targeted by the Ministry of Commerce, which so far has prosecuted only retailers. The firm also called for a revision of what it deems unclear government policy on alcohol imports. Since October, two mobile taskforces—comprising officials from the Commerce Ministry, customs department and the special investigation bureau of the police—have been raiding retail warehouses in Rangoon and Mandalay to investigate the legal status of imported alcohol, tobacco and preserved frozen foods. Most retailers have now stopped sales of foreign booze out of fear for being raided, leading to a shortfall of liquor supplies and complaints from consumers and restaurants. A Rangoon warehouse belonging to City Mart Holdings' Premium Distribution was raided early this month and last Friday Premium Distribution director Phyo Hein Kyaw was arrested on accusations that he was involved in sales of illegally imported alcohol. He became the second retail executive to be arrested. The managing director of Quarto Products was detained and charged in October following a raid on the Rangoon warehouse of Quarto, a large beverages distributor. The retail executives could face three years imprisonment. Soe Aung, an assistant director of the Rangoon mobile taskforce, said it found 87,000 bottles of wine and 1,200 bottles of liquor, worth about US$560,000, at a Premium Distribution warehouse in Tharketa Township. "We asked Premium Distribution to show the original [import license] documents for these bottles, but they couldn't show them and now we sued them," he said. In an interview on Tuesday, Nge Nge, marketing executive of the Premium Product's marketing department, confirmed that it had been unable to hand over the original import license documents for most of the alcohol, but it said that its suppliers share responsibility for this situation. "Though we have called both our suppliers asking them to show their original import documents for our products [to the taskforce], they actually failed to do that," she said. ACE Trading Co. Ltd and Myanmar Shopping Mall supplied Premium Distribution with its imported alcohol and only ever provided copies of the import licenses, Nge Nge said. "But, the mobile task force neglected the copies and asked for the originals. We could not and then they sued us," she added. ACE Trading is part of ACE Group, a conglomerate with interests in hotels, restaurants, construction, media and travel. ACE is run by Phyo Ko Ko Tint San, who is the son of Sport Minister Tint San. Myanmar Shopping Mall is a duty-free shop in downtown Rangoon that is owned by Htoo Group, one of Burma's largest conglomerates, which has interests in banking, mining, construction and hotels. It is owned by Tay Za, a powerful businessman who the US government has sanctioned for his involvement in arms deals for the Burma Army. Like all retailers in Burma, Premium Distribution was forced to seek supplies of imported alcohol from hotels and duty-free shops due to long-standing government import restrictions. Since the mid-1990s, the government has implemented a ban on the import of alcohol, tobacco and other luxury goods, only allowing certain hotels and duty-free shops to carry out such imports. The ban was part of the former military government's policies under which military- or crony-owned companies controlled large parts of the economy. The hotels and duty-free shops are formally banned from commercial sale of alcohol they are allowed to import. Until recently, however, the government made little effort to prosecute retailers, hotels and duty-free shops for involvement in this supply and import chain. Premium Distribution feels it is unfair that it is only being targeted in the current government crackdown, since ACE Trading and Myanmar Shopping Mall imported and supplied the alcohol. Premium Distribution showed The Irrawaddy letters addressed to the firms, requesting them to send import license documents for the alcohol they sold the retailer. Both companies failed to do so. A reply by ACE Trading Company, dated Dec. 13, denied that it had conducted any transaction with Premium Distribution. It claimed that a director on its board by the name of Thura Soe had acted alone in supplying thousands of bottles of alcohol to Premium Distribution. "Thura Soe has used the company's name for his own initiative to sell imported alcohol that the mobile taskforce has checked. Those products did not come from ACE Company, these came only from Board of Director member Thura Soe," the letter stated. Nge Nge, of Premium Products, said the company found this claim hard to believe, adding that the both ACE Trading and Myanmar Shopping Mall should be included in the Commerce Ministry's investigation. So far, this has not happened. Raids by the mobile teams, led by senior official Nyunt Aung, have only targeted retailers, leading to concerns that authorities are afraid, or unwilling, to tackle the well-connected firms involved in importing and sales of alcohol. Asked about this, Soe Aung, of the Rangoon mobile taskforce, denied that hotels and duty-free shops should also be targeted in the crackdown. "It is not our responsibility to check importers directly; buyers have to deal with importers," he claimed. The Irrawaddy was unable to reach ACE Trading and Myanmar Shopping Mall for comment on Tuesday. The post After Arrest in Govt Crackdown, Retailer Points to Alcohol Imports by Tycoons appeared first on The Irrawaddy Magazine.

Burma Public Company Plans to Sell Gold at International Purity Posted: 17 Dec 2013 06:55 AM PST A worker melts gold to make jewelry in Rangoon. (Photo: Reuters) RANGOON — A Burmese public company says it will begin selling solid gold of 99.99 percent purity, the international standard, early next year. Burma is rich in gold and already has a number mines extracting the precious metal, but exports of gold are currently banned. A new mining law is reportedly in the works and the some local miners and gold sellers in 2012 formed the Myanmar Gold Development Public Company ahead of an expected influx of international mining firms. Kyaw Win, the owner of U Htone Gold Smith Shop and the senior vice president of Myanmar Gold Development, told The Irrawaddy on Tuesday that the firm was getting ready to produce high purity gold. He said that by Feb. 12, 2014, people would be able to buy coins and plates of 99.99 percent pure gold. "The local pure gold is only 99.7 percent pure at the most, he said. "Local gold can't meet the standard in international market." He said the gold would be produced using machinery from Hong Kong, and using techniques developed in Australia, and would be measured in grams rather than local Burmese units. In lieu of a reliable banking system and a stable currency, Burmese have over the years bought gold as a secure asset for savings. Ye Thu Aung, vice president of Myanmar Gold Development, said initially the gold would be sold on a small scale to savers. "We mainly intend to make affordable amounts for all customers who want to save using solid gold individually with small amounts," he said. Solid gold will be sold in weights ranging from 2.5 grams to 100 grams, the smaller amount costing about 200,000 kyats, or about US$200, depending on the going rate. "We did a survey in the local market and we found most customers are interesting to buy solid gold that meets the international standard," Ye Thu Aung said. According to the Ministry of Mines, there are five large-scale and 472 small-scale gold mines across the Burma. And the industry is gearing up for changes, despite the official ban on exports remaining in place. Reuters reported in October that the Ministry of Mines had submitted a draft of a new mining law to Burma's Parliament, and that it was expected to be passed into law in March. The law is expected to open Burma up to foreign investment in the extractive industries. Ye Thu Aung said the higher purity gold could eventually be for international sales. "We intend not only for local gold buyers but also for the international market. We have been connecting with foreign countries about selling gold to the international market," he said. The owner of Aung Thamardi Gold Shop in Mandalay, who goes by the name Aung, said the other gold sellers would not be too perturbed by Myanmar Gold Development's plans. Gold with a purity of 99.98 percent is already widely available, he claimed, adding that 99.99 percent pure gold was rare elsewhere in the region. "It might be difficult to distribute in the market, I think," said Aung, noting that the Myanmar Gold Development will sell shares to the public and therefore have numerous shareholders to think about. "We need to change the local gold price according to the fluctuation of the world gold price, but since they are a public company, it will be difficult to change their solid gold price in a timely way because they need to get approval from many parties." Aung explained that when the local gold price is low, Burmese gold is smuggled to neighboring countries, and when the price is high, gold from China and Thailand floods the market. The price of local gold price on Tuesday stood at 656,200 kyats ($667.55) per tical, the local measure for gold that is equal to 0.576 ounces. The international gold price was $1,240 per ounce, equivalent to about $714 per tical. The post Burma Public Company Plans to Sell Gold at International Purity appeared first on The Irrawaddy Magazine.

Military Leases Seized Ngapali Beach Land to Hotel Developers Posted: 17 Dec 2013 05:19 AM PST Hotel construction underway on confiscated lands in Ngapali Beach. (Photo: Khin Oo Tha / The Irrawaddy) Burma's military has allegedly leased lands it confiscated in the Ngapali Beach area of Burma's western Arakan State to five construction companies, contravening a promise to return the plots to their original owners if they were not used for defense purposes. A number of area residents, whose lands were seized in 2000, told The Irrawaddy that their property was ostensibly taken more than a decade ago for the construction of army buildings and related purposes. If not used for these purposes, locals say they were told the land would be returned to its owners. However, private companies are currently building hotels on those lands instead, after receiving 30-year leases on the properties, they said. "It seems that the army is pushing the companies to finish the construction of hotels as soon as possible, probably because they know they have to give the confiscated lands back to us if they remain unused," said one victim. "Since the Ngapali area was granted township status, the price of an acre of land along the beach has risen to 2.5 to 3 billion kyats [US$2.5 to $3 million]." The former landholder, who requested anonymity, listed Max Myanmar, Eden Group, Min Zar Ni, Amazing Hotels and Paw Kyun as the companies that were granted leases. Attempts by The Irrawaddy to contact Eden Group and Max Myanmar to seek more information about the alleged hotel construction projects were not successful. According to locals, nearly 36 acres of lands were confiscated in 2000, but none of the victims has yet received proper compensation. "We also had to dismantle our guesthouses on our lands before they were taken by force," recalled Mu Mu, one of the former guesthouse owners. "Lands belonging to 60 people like me were part of those plots that the army grabbed, but we were not given any compensation." Myint Hlaing, a Ngapali resident and member of the Upper House of Parliament, told The Irrawaddy that he had brought the issue before the legislature many times, proposing that the confiscated lands be returned if they were not in use. Earlier this year, Defense Minister Lt-Gen Wai Lwin made a similar promise, saying in July that lands confiscated by the military that were not being used would be returned to the original owners. "The defense minister [Lt-Gen Wai Lwin] said the army does not own the money it gains from land leases and has to hand it over to the State," said Myint Hlaing. "But he didn't answer clearly when I asked him how the army would take care of the victims." Meanwhile, villagers living around the beach say they are worried that they will be relocated elsewhere in the aftermath of an administrative reshuffle that saw the village of Ngapali upgraded to township status. "Locals are worried that their houses will be removed because of news about the building of hotel zones," Htun Oo, a Ngapali resident, told The Irrawaddy. "Government authorities here, however, haven't explained anything to us openly." According to Htun Wai, the administrator of Thandwe District, which Ngapali falls within, President Thein Sein during his visit to Arakan State last month instructed local authorities to upgrade the administrative status of the village of Ngapali in order to promote tourism. "As local authorities, we do not confiscate farmlands by force or relocate people," said Htun Wai. "We just upgrade the status of our people here from villagers to townsmen." Ngapali Township will reportedly comprise 10 villages, including the village from which the new township derives its namesake. The post Military Leases Seized Ngapali Beach Land to Hotel Developers appeared first on The Irrawaddy Magazine.

Balloon Fireworks Burn Down Tourist Cottages at Inle Lake Posted: 17 Dec 2013 03:18 AM PST A promotional image of the Inle Khaung Daing Village Resort, where a fire destroyed 18 floating cottages on Monday. (Photo: Inle Khaung Daing Village Resort) RANGOON — A fire caused by a wayward hot air balloon Monday night destroyed 18 floating cottages at a high-end tourism resort on eastern Shan State's Inle Lake, hotel staff said. According to staff, a homemade balloon launched by locals in Khaung Daing village celebrating a pagoda festival was blown in the wrong direction by strong winds and flew low over the Inle Khaung Daing Village Resort, on the lake's western shore. Fireworks attached to the bottom of the balloon shot downward at the resort's cottages, causing raging fires that devastated the thatch and bamboo huts suspended above the lake. "The wind was so strong last night so that the fire easily spread from a cottage to another," a member of the resort's staff who was on duty Monday night told The Irrawaddy, asking not to be named. "Since the cottages were built with thatch and bamboo, the fire spread very quickly. But we managed to evacuate all 30 guests and get all their belongings out in time." The nearby Shan State capital of Taunggyi is famed for its annual fire balloon celebration—taking place every November to mark the Buddhist Tazaungdaing festival—at which locals launch numerous homemade balloons and attach large batteries of fireworks. According to resort staff, guests had been given substitute rooms at the resort's main hotel building on the bank of Inle Lake. "I think it will take some time to rebuild them, so that we will need to handover booked clients to some other hotels," another member of staff said. The Inle Khaung Daing Village Resort, which is part of the group that also owns the Hupin Hotel in Nyaung Shwe, was built in 2007. Rooms cost between US$120 and $250 per night. With the fire occurring as the high season for tourism gets into full swing, tour operators in Rangoon, Mandalay and Taunggyi said they are trying to shift bookings to other hotels, but are facing difficulties. Thandar Win, a tour operator in Rangoon, said the fire meant she would have to make new arrangements for some tourists who had planned to stay at the resort in January. "Since it was an accident, we understand and will not complaint. The hotel has already suffered because they will lose a lot of money from all of their investment in those cozy cottages," she said. "Hopefully we will find rooms for our clients in other hotels. It is difficult to find another hotel because the peak tour season is on its way." The post Balloon Fireworks Burn Down Tourist Cottages at Inle Lake appeared first on The Irrawaddy Magazine.

DKBA Aids Letpadaung Activists in Violation of Ceasefire, Military Claims Posted: 17 Dec 2013 02:32 AM PST Col San Aung from the Democratic Karen Buddhist Army (DKBA) is pictured in Hsi Hseng Township, Shan State. (Photo: Lawi Weng / The Irrawaddy) RANGOON — The Burmese military's Southeast Command has warned the Democratic Karen Buddhist Army (DKBA) that it is in violation of a ceasefire agreement signed between the two parties, with the former accusing the ethnic armed group of supporting activists against the controversial Letpadaung mine in central Burma. The warning letter from Col Aung Lwin, the Karen State border security affairs minister from the Southeast Command in Mon State, claims that the DKBA provided 10 million kyats (US$10,200) to activists protesting the Chinese company Wanbao and its copper mining venture in Burma's Sagaing Division. The letter said San Aung, a DKBA colonel, visited a protest camp near the Letpadaung mine last month, where he met with activists and donated food and the 10 million kyats. "The case of the Letpadaung protesters does not concern the DKBA, and Col San Aung from the DKBA has violated the ceasefire agreement by providing money to the protesters," the letter stated, accusing San Aung of using religion to foment unrest in the country. In the latest effort to contest the Letpadaung project, a group of activists set up a protest camp in November on Ingyin Mountain near the mine. The DKBA is an ethnic Karen armed group that signed a ceasefire agreement with the government in November 2011. It is not the first time the DKBA, which controls territory more than 400 miles from the Letpadaung mine, has involved itself in the Wanbao dispute, which has centered around locals' environmental concerns, claims of inadequate compensation for confiscated lands, and questions about equitable resource sharing. In December 2012, DKBA members protested in the border town of Myawaddy, with troops marching in the streets with guns raised in the aftermath of a police crackdown on protesters near Letpadaung. More than 80 people, including Buddhist monks, were wounded in the crackdown, which included the use of white-phosphorus bombs to disperse the crowd. Speaking to The Irrawaddy, San Aung denied having provided any money to the activists, calling the accusation from the Southeast Command leader "groundless." "Look, they are accusing me as a person who used religion to oppose the Letpadaung [project]. I am not afraid to confront their accusation, nor am I afraid to even face trial as a war criminal," San Aung said. The DKBA colonel said he was concerned to hear that some Letpadaung activists had gone into hiding following an incident that involved the burning of a Chinese flag outside the Chinese Embassy in Rangoon on Nov. 29. Authorities are searching for people suspected of involvement in the flag burning, which was part of a protest to mark the one-year anniversary of the Letpadaung police crackdown. "There are no problems for protesters from other countries who burn flags during their protests. So, what is wrong with burning a Chinese flag for protesters in our country? This government is not doing their job," San Aung said. A group of activists from Letpadaung met with San Aung when he attended the 64th anniversary of anti-feudalism movement known as the Shan State Nationalities Peoples' Liberation Organization (SSNPLO) in Hsi Hseng Township, Shan State, last week. During the meeting, he told the activists that he understood their grievances over the copper mining project, which is a joint venture between China's Wanbao and the Burmese military-backed Union of Myanmar Economic Holdings Ltd (UMEHL). Authorities have frequently taken action against persistent protests near the mining site, with several activists including prominent ethnic Karen land rights campaigner Naw Ohn Hla jailed for their activities. The post DKBA Aids Letpadaung Activists in Violation of Ceasefire, Military Claims appeared first on The Irrawaddy Magazine.

West ‘Cannot Afford’ Major Economic Aid to Burma, says China Commentary Posted: 17 Dec 2013 01:33 AM PST Burmese President Thein Sein, is seen with Xi Jinping, now the president of China, as well as Lao Prime Minister Thongsing Thammavong, at a regional conference in September 2012. (Photo: Reuters) A Chinese government-run newspaper has argued that Western nations cannot afford the cost of reviving the Burmese economy. A hard-hitting commentary in the Chinese Communist Party-controlled Global Times suggested that Washington "will try to foment discord between China and [Burma]" to damage Chinese business relations with Naypyidaw. "However, [Burma] is unlikely to totally throw itself into the arms of the US. Mired in financial crisis, Western countries cannot afford to provide considerable economic assistance to [Burma]," said the commentary. "US and European enterprises are reluctant to invest in a land where the investment environment is not good and the political situation is not stable." But in criticizing Washington's engagement in the new sanction-free Burma, the commentary appears to ignore Japan—a country that is making much bigger investments in Burma than Western countries. And while China bids to invest in extractive industries such as gas and copper, as well as hydropower, for its own benefit, Japan is helping to rebuild Burma's crumbling industrial infrastructure. In recent days, Tokyo has pledged additional loans of US$580 million to Burma for that purpose. "The fresh pledge will push total economic aid promised under [Prime Minister Shinzo Abe's] administration above 150 billion yen (US$1.45 billion)," Japan's Kyodo news agency said. Japan's objectives are not entirely philanthropic though. Major Japanese conglomerates such as Mitsubishi and Sumitomo have said they cannot make large business commitments in Burma until its basic infrastructure, most importantly electricity supply, is improved. "Abe is also expected to pledge assistance in public health, agriculture and other areas to boost the living standards of ethnic minorities living near Burma's border with China and other regions," Kyodo said. The agency quoted unnamed Tokyo government officials saying Japan's aid is "an attempt to counterbalance China's influence in Burma, as well as to support Japanese companies as they move into the country." China's influence in northern Burma bordering the Chinese province of Yunnan is already very strong, said the East Asia Forum, an analysis group based at the Australian National University. "Much of China's growing trade with [Burma] and Laos occurs through cooperation across international boundaries. The role of Yunnan and its capital city of Kunming in China-GMS [Greater Mekong Sub-region] trade cannot be understated," said a Forum study. "Yunnan's GDP skyrocketed from US$33 billion in 2000 to US$160 billion in 2012, and the province aims to double that to US$320 billion by 2017 through even stronger cross-border economic and trade ties. Kunming acts as the origin and core of economic activities that reach into the bordering countries of Laos, Myanmar, Vietnam, and beyond." The inroads China has already made in Burma's border region will be a challenge for Japan or any other country to counter. The Chinese not only dominate trade in this region, they have begun to migrate into it too, said the Forum report. "The border towns of Muse and Namhkam have done well by importing Chinese goods such as garments and consumer electronics, which occupy as much as 80-90% of the local markets in northern [Burma]," Forum said. "In Lashio, a remote but important market town 195 kilometres from Mandalay in northern Shan State, many trucks loaded with Chinese consumer goods rolled through the town and onto the booming city of Mandalay. The population of Lashio is about 50% Chinese, while Mandalay, the seat of Myanmar's culture, is one-fifth Yunnanese Chinese. This Chinese 'on the ground' influence helps pave the way for China's new ambitious outlook for accessing the Indian Ocean over the Lashio–Mandalay land route," it said. And despite China's apparent worry that the US seeks to contain Beijing's economic influence, the Naypyidaw government has appealed to the Chinese to press ahead with proposals for a commercial railway route from Yunnan to the Burmese coast at the new Chinese-run oil transhipment terminal at Kyaukphyu. "I would like to urge Chinese business people to take investing in Kyaukphyu SEZ [special economic zone] into serious account," the director-general of the government's Directorate of Investment and Company Administration, Aung Naing Oo, reportedly told a trade conference in the border town of Ruili last week. The key to creating an SEZ around Kyaukphyu is a new railway running from Yunnan to the port, which is already the terminal for the controversial Chinese oil and gas pipelines just completed through Burma and connecting to Yunnan. The 800-kilometer railway would cost $20 billion and take five years to build, said the Forum. "Once completed, the railroad will allow electric trains to travel at speeds of up to 200 kilometers per hour and carry 4,000 tons of goods," the Forum study said. "Strategically, this railroad will carry China's imports and exports to and from the port of Kyaukphyu on the Indian Ocean via Ruili and Kunming, obviating the need for ships to sail through the narrow Malacca Strait [via Singapore]." There seems little competition to China from potential foreign investors—least of all American—to develop a Kyaukphyu SEZ. The Japanese are focusing on the Thilawa SEZ in the outskirts of Rangoon. As the Global Times report says, Burma is now dependent on China to a certain degree: "The region north of Mandalay has forged close trade links with China, so it is necessary for [Burma] to involve China in its modernization drive." The post West 'Cannot Afford' Major Economic Aid to Burma, says China Commentary appeared first on The Irrawaddy Magazine.

Japanese Beauty Queen Barred From Ceremony Posted: 16 Dec 2013 10:52 PM PST Miss International 2012 winner Ikumi Yoshimatsu, who has been told she cannot appear at an event to hand over her crown. (Photo: Ikumi Yoshimatsu / Facebook) TOKYO — A Japanese beauty queen said Monday she has been barred from a ceremony where she was to hand over her crown to a successor after she refused to sign with a major talent agency. Ikumi Yoshimatsu, winner of last year's Miss International contest, has filed a criminal complaint against a top agency executive alleging obstruction of business, stalking, intimidation and extortion. She accused the executive of threatening her life after she formed her own management agency rather than use his. A teary-eyed Yoshimatsu told reporters Monday that the executive had threatened sponsors and shareholders and she was barred from Tuesday's ceremony in Tokyo. Eiichi Masunaga, official at the International Culture Association, the beauty contest's operator, confirmed they won't allow her to appear because they don't want media coverage of the controversy to overshadow the event. "We've asked her to voluntarily refrain from the event," said Masunaga. Talent agencies have huge influence over the entertainment business in Japan and industry experts say it is common for anyone who rebels against the system to be bullied and threatened. The executive, Genichi Taniguchi, denied doing anything to Yoshimatsu and said he holds no grudges against her. He said in a phone interview that he was not aware of the charges against him. The post Japanese Beauty Queen Barred From Ceremony appeared first on The Irrawaddy Magazine.

ADB to Loan $60 Million for Burma’s Electricity Network Posted: 16 Dec 2013 10:04 PM PST Residents of Rangoon held large-scale protests last year against frequent power cuts. (Photo: The Irrawaddy) RANGOON — In a push to develop Burma's national power grid, the Asian Development Bank (ADB) has offered a US$60 million loan to improve access to electricity in four divisions. Some 480,000 households in Rangoon, Mandalay, Sagaing and Magway divisions will see access to a more reliable electricity supply through the loan, ADB said Monday. "Access to electricity is crucial to development. Repairing and strengthening existing electricity infrastructure will help reduce system losses, use resources more efficiently and connect more people more quickly," Jong-Inn Kim, lead energy specialist in the ADB's Southeast Asia Department, said in a statement. The ADB loan will fund rehabilitation works to carry electricity more efficiently, including upgrades to existing distribution lines, transformers and digital revenue meters. In Burma, a fifth of all power generated is lost because of technical inefficiencies. The Yangon City Electricity Supply Board says the main power grid is outdated, and that people in rural areas receive less reliable electricity than those living in urban centers. Maung Mg Latt, vice chairman of the board, said Rangoon's daily electricity consumption had reached 800 megawatts per day, almost half of the electricity available nationally. "Other cities consume between 900 to 1,000 megawatts today," he said Monday. The ADB hopes to reduce distribution loss by 4 percent. According to the bank's statistics, electrification in the country has increased, from 16 percent in 2006 to 28 percent last year. Rangoon city is the most connected, with 72 percent of households accessing regular electricity, followed by 65 percent in Naypyidaw and 35 percent in Mandalay. Only one in five rural households is connected to the grid. In September, the World Bank announced it was providing Burma with an interest-free $140 million loan to develop a power plant in Mon State, as the bank's first investment project in Burma since reengaging with Naypyidaw. Under a deal cut with Burma's previous military government, Chinese firms will pump energy reserves worth $45 million per day through the pipeline when it comes online in the coming months, with the energy bypassing Burmese citizens, according to a Reuters report. The post ADB to Loan $60 Million for Burma's Electricity Network appeared first on The Irrawaddy Magazine.

China Says Six Arrested After Deadly Riot in Xinjiang Posted: 16 Dec 2013 09:57 PM PST A police officer stops a car to check for identifications at a checkpoint in China's Xinjiang province in October. China has stepped up security in the northwestern province since an attack in Tiananmen Square in October, which was blamed on separatist terrorists. (Photo: Reuter) BEIJING — Chinese police have arrested six people they suspect of taking part in a riot near the old Silk Road city of Kashgar, in the restive far western Muslim region of Xinjiang, in which 16 people were killed, the regional government said. The arrests, reported by the Xinjiang government in a statement on an official news site late on Monday, came a day after Chinese police shot and killed 14 people during the riot. Two policemen were also killed. The government statement called the incident "an organized, pre-meditated, violent terror attack". "The gang repeatedly gathered to watch violent, terrorist videos, promoted extremist religious ideology, manufactured explosive devices and guns, conducted test explosions several times and planned to carry out violent terrorist activities," the Xinjiang government said. China has previously called some of the violence in Xinjiang the work of Islamist militants plotting holy war. On Monday, China's Foreign Ministry stopped short of directly blaming Islamist militants but said a "violent terror gang" attacked police with explosives. The Xinjiang government said the "terror gang" made up of 20 members was formed in August and was led by a person they named as Hesen Ismail. Reuters was not able to independently verify the charges. Foreign journalists are often harassed and sometimes denied access to sensitive areas in Xinjiang. A police officer reached by Reuters on Monday in the county where the incident occurred said it was "not convenient" to provide any additional information. The government says police were attacked by a mob throwing explosives and wielding knives when they went to arrest "criminal suspects" in a village near Kashgar. "The officers entered a house and found a large number of people were holding an illegal gathering," influential tabloid the Global Times, published by the Communist Party's People's Daily, quoted an unidentified Xinjiang official as saying. "As the police carried out inquiries, some of the people remonstrated and staged a confrontation. They suddenly stabbed the police with knives. Two officers, who were caught off guard, died at the scene," the official said. Rights groups and exiles say police often use heavy-handed tactics against the Muslim Uighur community, which calls Xinjiang home. Many of Xinjiang's Turkic-speaking Muslim people chafe at restrictions on their culture, language and religion, although the government insists it grants them broad freedoms. China has stepped up security in Xinjiang after a vehicle ploughed into tourists on the edge of Beijing's Tiananmen Square in October, killing the three people in the car and two bystanders. China said that attack was carried out by Islamist militants, and has reacted angrily to suggestions that it was because of frustration and anger over government repression of Muslims in Xinjiang. There have been numerous incidents of unrest in Xinjiang in recent years, which the government often blames on the separatist East Turkestan Islamic Movement, even though many experts and rights groups cast doubt on its existence as a cohesive group. The post China Says Six Arrested After Deadly Riot in Xinjiang appeared first on The Irrawaddy Magazine.

US Ups Security Aid to Southeast Asia, Criticizes China Posted: 16 Dec 2013 09:48 PM PST US Secretary of State John Kerry and Vietnam's Foreign Minister Pham Binh Minh, right, hold a joint news conference in Hanoi on Dec. 16, 2013. (Photo: Reuters / Brian Snyder) HANOI — US Secretary of State John Kerry offered harsh words for China and new maritime security assistance for Southeast Asia on Monday to bolster countries facing growing Chinese assertiveness in a region where the two world powers are jockeying for influence. Tensions are running high after a near-collision of US and Chinese naval vessels this month and an air defense zone China has declared over an area that includes territory controlled by Japan, a US ally. Those actions have raised fresh alarm as Beijing modernizes its military and claims a wide swath of ocean and disputed islands across the East and South China Seas. Kerry used his first visit to Vietnam as America's top diplomat to reiterate support for diplomacy between Southeast Asia's regional bloc and Beijing over the territorial disputes, and to provide aid for Southeast Asian nations to defend waters they claim as their own. Kerry pledged US$32.5 million, including up to $18 million for Vietnam that will include five fast patrol boats for its Coast Guard. With the new contribution, US maritime security assistance to the region will exceed $156 million over the next two years, he said. "Peace and stability in the South China Sea is a top priority for us and for countries in the region," Kerry told reporters at a news conference with Vietnamese Foreign Minister Pham Binh Minh. "We are very concerned by and strongly opposed to coercive and aggressive tactics to advance territorial claims." The next stop on his Asian trip will be the Philippines, which lost control of a disputed reef in the South China Sea last year after a standoff with China. The United States is also helping equip the Philippines with ships and radar, and is in negotiations with Manila to increase the American military presence there. Kerry said the new assistance was not a "quickly conceived reaction to any events in the region" but rather a "gradual and deliberate expansion" of US support as part of the Obama administration's broader decision to refocus attention on the Asia-Pacific. But the step is almost certain to anger Beijing, which bristles at what it sees as US interference in areas it views as China's "core interest." Beijing looks dimly on Washington's push to increase the US military presence and strengthen its alliances in Asia as it ends a decade of war in Iraq and Afghanistan, calling it an attempt to contain China. In a reminder of the high stakes in play, US and Chinese naval vessels came close to colliding in the South China Sea on Dec. 5, the most serious incident between the two navies since 2009. The US Pacific Fleet said Saturday that USS Cowpens was operating in international waters and had to maneuver to avoid hitting China's lone aircraft carrier. The Liaoning, a symbol of China's ambition to develop a navy that operates further from its own shores, only entered service last year and was on its first-ever sea trials in the South China Sea. Beijing has not formally commented on the incident, but the state-run Global Times newspaper reported on Monday that the US ship had first harassed the Liaoning and its group of support ships, getting too close to a Chinese naval drill and entering within 30 miles of the Chinese fleet's "inner defense layer." As China expands its navy's reach and starts to challenge decades of American military predominance in the region, it's becoming more common for vessels of the two nations to operate in close proximity. The Obama administration has made it a priority to seek closer military cooperation with China to prevent misunderstandings that could spark a clash—part of a broader push to foster friendly ties between the established world power and the emerging one. Beijing's unilateral declaration in late November of its East China Sea air defense identification zone was a setback, and has ratcheted up tensions with Japan over disputed islands within that zone. All aircraft entering the zone must notify Chinese authorities beforehand, and China has said it would take unspecified defensive measures against those that don't comply. The United States, Japan and South Korea have said they will not honor the new zone, and in a show of defiance soon after China announced it, the United States flew two B-52 bombers through the area. The issue loomed large during meetings in Beijing between Vice President Joe Biden and Chinese President Xi Jinping in early December, and Kerry offered harsh words about the zone in Hanoi on Monday. He said it "clearly increases the risk of a dangerous miscalculation or an accident." He called for intensified diplomacy to address the issue. "The zone should not be implemented, and China should refrain from taking similar unilateral actions elsewhere, particularly in the South China Sea," Kerry said, reiterating that such moves by Beijing would not affect US military operations in the region. Three years ago, Secretary of State Hillary Clinton, also in Hanoi, raised hackles in Beijing by declaring that the United States had a national interest in the peaceful resolution of disputes in the South China Sea, where China, Brunei, Malaysia, Taiwan, the Philippines and Vietnam have competing claims. Those disputes have occasionally flared, including a 1988 naval battle between China and Vietnam that left 70 Vietnamese sailors dead. Washington has supported efforts by Southeast Asia's regional bloc to negotiate collectively with their larger neighbor China on a legally binding code of conduct to manage the disputes. Stressing US neutrality on the competing sovereignty claims, Kerry again called for quick agreement on the code and peaceful resolution of disputes. Those efforts have made some headway in the past year, but Beijing would still prefer to negotiate with each country separately. It regards the entire South China Sea and island groups within it as its own and interprets international law as giving it the right to police foreign naval activity there. Pennington contributed to this report from Washington. Associated Press writers Chris Brummitt in Hanoi also contributed. The post US Ups Security Aid to Southeast Asia, Criticizes China appeared first on The Irrawaddy Magazine.

For Philippine Typhoon Survivors, Christmas Brings Hope Amid the Rubble Posted: 16 Dec 2013 09:40 PM PST A typhoon survivor prays at the grave of his one-year-old child who died during super typhoon Haiyan outside a church where mass is being held at the start of nine days of Christmas vigil masses in Palo, Leyte, central Philippines, on Dec. 16, 2013. TACLOBAN CITY, Philippines — Thousands of survivors of super typhoon Haiyan walked in darkness toward damaged churches in central Philippines at the start of Christmas vigil dawn masses on Monday, clinging to their faith as they struggle to piece together shattered lives. Haiyan reduced almost everything in its path to rubble when it swept ashore in the central Philippines on Nov. 8, killing at least 6,069 people, leaving 1,779 missing and 4 million either homeless or with damaged homes. The dawn masses are a widespread tradition in the Philippines, where 80 percent of a population of about 97 million are Catholic, and many believe those who complete the vigil will be granted a wish. "I'm hoping that our condition will improve," said Martin Tumlos, 38, the driver of a motorcycle taxi, as he hunched over the dirt grave of his one-year-old son, Marcho John, at a common burial site in the front yard of a Catholic church. "It's painful but I have accepted what happened," said Tumlos, whose son drowned after slipping from his mother's hands when raging waters engulfed a single-story public school where they had taken refuge from the typhoon. Power has been restored to less than 1 percent of Tacloban, a key business hub. Just a few dozen restaurants, gas stations, banks, retail shops and salons have reopened, as businessmen struggle to bring in supplies amid devastated infrastructure. "In terms of normalcy, this is just a rough estimate, we're just less than 10 percent," said city administrator Tecson John Lim. Tacloban city still pulls an average of about 25 bodies a day from the rubble of flattened structures, or from its eastern shores, he added. Philippine President Benigno Aquino, who has been criticized over the slow emergency response and whose leadership is being tested by the daunting task of reconstruction, says about 130 billion pesos ($2.9 billion) is needed "to put everybody at least in a better situation than where they are." A United Nations humanitarian body, the Office for the Coordination of Humanitarian Affairs (UN OCHA), announced plans on Monday to raise $791 million to fund direct assistance to typhoon victims via food aid, shelter, and access to water, health and sanitation services. The plan draws on the expertise of 14 UN agencies, 40 non-government and international bodies, and the Philippine government, which is set to release its own recovery and reconstruction plan on Wednesday. The humanitarian plan, which UN OCHA says is already funded up to 30 percent, or $237 million, also includes livelihood projects such as cash for work, support to farmers and fishermen, and debris clearing in Tacloban and nearby towns of Leyte province, which accounted for 86 percent of the deaths. Robinsons Retail Holdings Inc plans to reopen this week the grocery at its Tacloban mall looted by desperate survivors seeking food and water in the days after the typhoon. Jack Uy, president of the city's Filipino-Chinese Chamber of Commerce, said just under half its members plan to resume operations in the new year, perhaps as soon as the second week of January. "Most of the stores are very eager to open again," Uy told Reuters. The post For Philippine Typhoon Survivors, Christmas Brings Hope Amid the Rubble appeared first on The Irrawaddy Magazine.

Anger, Disappointment as Burma’s Men Go Down and Out at SEA Games Football Posted: 16 Dec 2013 09:30 PM PST A Burmese football fan is in tears after the match in which Burma's men were defeated by Indonesia and knocked out of the SEA Games football competition. (Photo: Sai Zaw / The Irrawaddy) RANGOON — Burma's U-23 footballers went down 1-0 to Indonesia at the SEA Games men's football competition in Rangoon on Monday night, a result that sees the hosts out of the tournament. Indonesia progressed to the semi-finals on the head-to-head rule, despite having an inferior goal difference to Burma's men's team, after both countries finished joint-second in their group, one point behind Thailand on seven points. Speaking after the match, Burma coach Park Sung Hwa said that he thought a 1-0 loss would be enough for the home country to progress, seemingly misunderstanding that the head-to-head stipulation, which dictates that in the event of teams finishing level on points, the result of the match between the sides decides who progresses, rather than goal difference. Burma went into the game with +5 goal difference, compared with Indonesia's -2. "I didn't know it in advance and therefore made some mistakes with formation and tactics," the coach said in a post match press conference, his remarks delivered in Korean and translated to Burmese and in turn to English. The mix-up and Burma's exit from the competition seems likely to mark the end of Park's tenure, after a match in which a first half penalty—coolly-taken by Indonesia's Alfin Ismail Tuasalamony after a John Aldridge-style staccato run-up—turned out to be enough for Indonesia to progress. For much of the game the away team looked the more likely to score, though both sides had chances before the referee blew for time after 95 minutes of play. Burma was mostly restricted to long range efforts in the second half as the favored hosts tried to claw back Indonesia's lead. However, for the most part the Burmese snatched at their shots, skying several efforts high and wide. Clearly missing injured midfielder Kyi Lin, who limped out of the Saturday 1-1 draw with Thailand, and star striker Kyaw Ko Ko, who was left on the substitutes bench, the Burmese towards the end were reduced to pinging hopeful long balls into the Indonesian box, which the away team's defense dealt with comfortably. One spectacular 79th minute volley by Burma's number 9 Kaung Si Thu was the high point of the host's second half—a dipping rasper fired from the edge of the D, which dropped inches wide of the Indonesian goal with the 'keeper a spectator. Indonesia however had chances to wrap the game up before the end, with Bayu Gatra Sanggiawan dragging wide in the 78th minute, despite having a clear sight of the Burmese goal inside the penalty area after a well-worked move down the left. Otherwise, while the Indonesians regularly got in behind the Burmese defense when they attacked down the left, the final pass by the visitors was left wanting. The match was marred by the sending-off of Burma's Ye Lin Aung with normal time set to expire, as the home team's frustrations grew. By the end, the tension spilled from pitch to stand, with the ref having to remove a rock lobbed onto the pitch—seemingly by an irate Burmese supporter—as the game drew to a close and it became apparent that the hosts were not going to find an equalizer. After the game angry Burmese fans ripped up stadium seats and hurled them pitchside—or as close as they could get, given the fence, moat and running track separating the playing surface from the stands. Violence spilled outside the stadium, with riot police called in to control the angry spectators who took their anger at the Burma team's elimination to the streets outside Rangoon's Thuwanna Stadium, a reprise of some of the recent bouts of football hooliganism that Burma has become known for. Anger also spread to cyberspace, with a hacker group briefly taking down the SEA Games website, which was back up a few minutes later. A message posted on the hacked page read "Hello, Seagame 2013. Hacked By Blink Hacker Group We don't want to deface your site. But, today's football match's results brought us here. Please take legal action (at least a complain) against the vietnam referee for his deeds." Blink Hacker Group's previous targets include state television station MRTV-4, various Burmese government ministries and local newspaper websites. By Thursday morning Burma had slipped to third in the overall SEA Games medals table. With Thailand seemingly unassailable at the top with 59 gold medals, the hosts are left in a three way battle with Vietnam and Indonesia for second, third and fourth places in the medals ranking. The post Anger, Disappointment as Burma's Men Go Down and Out at SEA Games Football appeared first on The Irrawaddy Magazine.

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