The Irrawaddy Magazine

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• Thailand to Push Back More Than 200 Boat People to Burma: Police
• Aung Thaung: Why Now, Why Him and Who’s Next?
• Probe Into Slain Journalist’s Death Ongoing
• ‘Permanent’ Residence for Former Citizens, Foreigners to Start Next Month
• Taunggyi Balloon Festival Deaths Rise to 4
• Paying Lip Service
• Protesters Allege Corruption of Judge in Irrawaddy Division
• Govt, Environmentalists Discuss Marine Protection Area for Mergui Archipelago
• Kyaukphyu SEZ: Economic Reality or Pipedream?
• China to Establish $40bn Silk Road Infrastructure Fund
• American Freed by North Korea Wanted Pizza
• In China, Obama Tests Global Clout Post-Election
• China, South Korea “Effectively” Conclude Free Trade Deal

Thailand to Push Back More Than 200 Boat People to Burma: Police Posted: 10 Nov 2014 03:45 PM PST Suspected victims of human trafficking rest at a government shelter in Takua Pa district of Phang Nga October 17, 2014. (Photo: Reuters) BANGKOK — More than 200 boat people held in southern Thailand will be pushed back out to sea, police said on Monday, despite calls by rights group to stop a policy that puts would-be asylum seekers at risk. Around 259 people were found at sea on Saturday and were arrested for illegal entry. Their discovery around 3 km (1.86 miles) from the coast follows what one NGO said was a "major maritime exodus" from neighboring Burma of Rohingya, a mostly stateless Muslim minority group from the country’s west. "On average around 900 people left by boat from the middle of last month. We saw a major maritime exodus of nearly 10,000 people," said Chris Lewa of the Arakan Project, a Rohingya advocacy group, adding that increasing desperation was one reason for the departures. Authorities in Thailand’s Kapoe district said it was unclear whether any of the group were Rohingya but interviews with some of the group showed they were heading for Malaysia to find work or, in the women’s’ cases, join their husbands. The 259 will be put back on boats and sent back to Burma, said Police Colonel Sanya Prakobphol, head of Kapoe district police. "They are Muslims from Myanmar … They are illegal migrants," Sanya told Reuters by telephone. "If they come in then we must push them back … once they have crossed the sea border into Myanmar then that’s considered pushing them back. What they do next is their problem." Tens of thousands of Rohingya Muslims have fled Burma’s Arakan State since 2012, when violent clashes with ethnic Arakanese Buddhists killed hundreds and made about 140,000 homeless. Many were Rohingya, who now often live in apartheid-like conditions and have little or no access to jobs, schools or healthcare. The boats often sail from Burma and Bangladesh to Thailand where, as Reuters reported last year, human trafficking-gangs hold thousands of boat people in brutal jungle camps until relatives pay ransoms to secure their release. Testimonies from Bangladeshi and Rohingya survivors in an October Reuters Special Report provided evidence of a dramatic shift in human-trafficking tactics. Sanya said the 259 people were currently being held at a community hall and that his team were "looking after them like relatives" but that they would soon be put back on boats. "Who will feed them? I’m struggling day to day to feed them," said Sanya. "No country wants an outsider to come in to their house." Thailand was downgraded in June to the lowest category in the U.S. State Department’s annual ranking of the world’s worst human-trafficking centers, putting it in the same category as North Korea and the Central African Republic. The same month, the Thai military vowed to "prevent and suppress human trafficking", after having seized power from an elected government on May 22. The post Thailand to Push Back More Than 200 Boat People to Burma: Police appeared first on The Irrawaddy Magazine.

Aung Thaung: Why Now, Why Him and Who’s Next? Posted: 10 Nov 2014 05:13 AM PST Senior USDP member and former Burmese junta general Aung Thaung addresses the media during a press conference. (Photo: The Irrawaddy) Before receiving US President Barack Obama in Naypyidaw, Burmese activists and pundits have already heartily welcomed his administration's recent decision to blacklist one of the ruling party's most powerful and notorious lawmakers: Aung Thaung. Nearly everyone I spoke with last week in Rangoon—tycoons, pedestrians, opposition party members, monks—were happy to hear that the Lower House parliamentarian, a member of the Union Solidarity and Development Party (USDP) and former industry minister for the military junta, had been singled out by the US government for "undermining" Burma's democratic progress. "By intentionally undermining the positive political and economic transition in Burma, Aung Thaung is perpetuating violence, oppression, and corruption," read a statement by Adam Szubin, the director of Treasury's Office of Foreign Assets Control, which oversees and maintains the Specially Designated Nationals (SDN) list, a roster of individuals and entities that US citizens are prohibited from doing business with. The Treasury Department was unsurprisingly sparse in its explanation. Many Burma scholars and analysts quickly made the association that Aung Thaung was long thought to have been involved in aggravating ethno-religious tensions, and that the United States would most certainly have known about it. But several questions still loom large: why now, why him and who's next? The first question can be easily satisfied. The announcement was made on Oct. 31, less than two weeks before Obama was set to join other global leaders in Naypyidaw for two major regional summits. The timing was viewed as a last-minute reprimand from the Obama administration, which has since been dubbed as "too optimistic" by opposition leader Aung San Suu Kyi. During a recent visit to Burma, John Sifton, the Asia advocacy director for Human Rights Watch, said it was clear that the US government could not justify supporting Burma's government while withholding serious criticism much longer. "Burma cannot complete a transition to democracy if the existing military leadership and its cronies refuse to relinquish their power and corrupt revenue sources," he said, explaining that Aung Thaung was one example of a senior politician who has faced very serious allegations and, so far, no real scrutiny. Yet while sanctioning a senior politician was a stern warning, one that Burma's current leadership—including Suu Kyi— has shown displeasure over, many think it wasn't quite stern enough. Aung Zaw is founder and editor of the Irrawaddy magazine. He can be reached at aungzaw@irrawaddy.org. Aung Thaung was, for many reasons, an easy target for the Western power wishing to appear firm in the face of criticisms over its support for a "stalled" reform process. He was a minister of the former regime, the close friend of a dictator, a possible accomplice to a fatal attack on members of the opposition, a notorious hardliner and a known nepotist. It was two of Aung Thaung's sons, after all, that benefitted most from their father's close relationship to former Snr-Gen Than Shwe, with whom he is reportedly so friendly that he occasionally had breakfast at the ex-dictator's home. This is considered a supreme privilege among Burmese, demonstrating a deep and personal camaraderie. That friendship is believed to have resulted in a series of business concessions allowing Aung Thaung's progeny to develop a thriving conglomerate, International Group of Entrepreneurs (IGE) Ltd., which deals in timber, oil, gas and mining. In particular, his sons were granted exclusive licenses to work with Chinese companies building gas and oil pipelines from the Arakan coast to Yunnan, China. One of his sons, Nay Aung, is also a 90 percent shareholder in United Amara Bank (UAB). Another, Pye Aung, is married to the daughter of the regime's second-in-command Vice Snr-Gen Maung Aye. Aung Thaung's two industrious sons are not on the US sanctions list, nor are their businesses, but last week's decision did have a minor ripple effect on their empire. Executives of UAB said the bank saw a marginal increase in withdrawals and decreased deposits shortly after the announcement of sanctions. More chilling is the message the announcement sent to tycoons already on the blacklist, as recent talks with the US government may have led them to believe they were on a clear path to redemption. Last June, State Department and Treasury officials met with a range of blacklisted entities to lay out guidelines for removal from the SDN list, after which many agreed to open auditing by American companies. While other business moguls in Burma, a high percentage of whom are considered "cronies," may worry that they might be next in line for punishment, the State Department may actually have a more complex agenda. If, in fact, Aung Thaung's blacklisted status was due to his alleged support for anti-Muslim campaigns, who knows who will be the next to fall? Aung Thaung was not just your ordinary naughty businessman. Born in Taung Tha, about 80km west of Mandalay, he served several years in the army fighting communist insurgents and earning the trust of the regime's leader, Than Shwe. He was often involved in political organizations, most notably as a key leader of the Union Solidarity and Development Association (USDA), the pre-reform permutation of President Thein Sein's ruling party, USDP. He has also been accused of involvement with Swan Arshin, an organized group of hired thugs widely believed to have been deployed during times of unrest. One instance was the 2003 Depayin massacre, during which Suu Kyi and her convoy were assaulted in northern Burma and dozens of her supporters were killed. Another was the crackdown on thousands of monks during the Saffron Revolution of 2007. Most recently, Swan Arshin has been accused of involvement in the anti-Muslim riots that have rattled the country since mid-2012; witnesses and analysts alike have claimed that in just about every case, outside aggressors have entered areas primed for trouble immediately after a trigger incident. Aung Thaung has denied a connection with Swan Arshin, a mysterious militia of what some have described as "uneducated thugs" closely aligned with the USDA. He has also distanced himself from another, newly emerged militia known as the Taung Tha Army. The latter was reportedly involved in riots that took place in Lashio and Meikhtila last year and, as some observers have pointed out, bears the name of Aung Thaung's birthplace. These associations, while largely accepted by Burmese dissidents and activists, are tenuous and difficult for outsiders to see. Where such connections do exist, they are inherently difficult to prove. An established US diplomat, under condition of anonymity, told The Irrawaddy that Burma's exile and pro-democracy communities have pleaded with the State Department to blacklist Aung Thaung since the very onset of the conflict in 2012. Another Western diplomat, also wishing to remain anonymous, voiced his belief that Aung Thaung and a handful of other current members of the nation's leadership directly financed anti-Muslim campaigns. If Aung Thaung had been involved, many argued, US diplomats would know. Whether or not they would admit it is the question. Moreover, if a central figure of the ruling party was involved, surely he didn't act alone. The post Aung Thaung: Why Now, Why Him and Who's Next? appeared first on The Irrawaddy Magazine.

Probe Into Slain Journalist’s Death Ongoing Posted: 10 Nov 2014 04:39 AM PST A member of the team responsible for exhuming the body of Aung Kyaw Naing holds one of his flip-flops beside the corpse on Nov. 5. (Photo: JPaing / The Irrawaddy) RANGOON — An investigation into the killing of journalist Aung Kyaw Naing while in military custody will continue this week, with the findings to be submitted to the Myanmar National Human Rights Commission (MNHRC) after the inquiry is deemed complete, according to a commission member. The MNHRC's secretary, Sitt Myaing, said a final date by which to report the investigation's findings had not been set. "There are things we have yet to investigate. We have to go to Moulmein [in Mon State] again and investigate. We've already asked for the autopsy results," he told The Irrawaddy on Monday. "We will not notify the family of the results [in advance], but we will release them publicly and report to the president. This is our regular procedure." Aung Kyaw Naing, also known as Par Gyi, was killed while in Burma Army custody last month. He had been reporting on clashes between government troops and ethnic Karen rebels in Mon State when he was detained. Nearly three weeks after he was killed, the military on Oct. 23 said he was shot dead after attempting to seize a weapon off a soldier and flee custody. Ma Thandar, the widow of Aung Kyaw Naing, told The Irrawaddy that she had filed a "fatal incident" case with the court in Kyaikmayaw, Mon State. Based on the court's acceptance of the case, she said she plans to press more charges. Her lawyer, Robert San Aung, declined to disclose the legal details relating to the case. Ma Thandar said she had not yet been contacted by the MNHRC, and had not even received an official notification that the commission had undertaken an inquiry. The MNHRC did, however, threaten a witness in the case with legal action if he failed to appear before the human rights body to answer questions, according to Ma Thandar. The witness is a journalist who was one of three people responsible for filing a missing persons report with authorities last month after Aung Kyaw Naing disappeared. "They [MNHRC] threatened that the witness would be charged under a certain article if he didn't come to meet them," Ma Thandar said. "This kind of language from the HRC is very alarming. With 'human rights' in its name, the commission must be unbiased and take the right stance," she said. "I am surprised to hear such words from the HRC." The widow, who is also a prominent women's rights activist, said there has been no offer for an independent investigation even though she has called for one. "It's impossible for me, a widow, to form such an inquiry. It can only be possible if I have a political organization as support." The window of opportunity for such an independent probe would appear to have closed, however, with the burial of Aung Kyaw Naing on Friday. The forensics team has not released any documents related to the investigation, but last week did tell the slain journalist's family that it found five gunshot wounds on his body. Ma Thandar said that what she saw of her late husband's exhumed corpse called into question the military's narrative of events leading to his death. "The close gunshot [wound] to the chin doesn't look like the shot a person could get while seizing a gun and running," she said. The commission has not had a stellar track record since it was set up by the government of President Thein Sein in 2011. In September, the MNHRC was blasted by a coalition of nongovernmental organizations, which said the commission had failed to successfully investigate "any case submitted to it" since it was formed. The groups went on to criticize the commission as lacking independence, with its funding and staff members beholden to the President's Office. Meanwhile, the US-based Committee to Protect Journalists on Friday sent a letter to the American President Barack Obama ahead of his visit to Burma this week, urging him "to impress upon Burmese President Thein Sein that future US engagement will be predicated on a renewed and genuine commitment to press freedom." "As Thein Sein's government now backtracks on those commitments, we urge your government to consider reinstating economic and financial sanctions and freezing bilateral commercial, diplomatic and strategic initiatives, including military-to-military exchanges," the letter read. "We urge you to use US influence to see that justice is served for slain journalist Aung Kyaw Naing, all jailed journalists are released unconditionally, and sweeping legal reforms that protect the press are implemented." The post Probe Into Slain Journalist's Death Ongoing appeared first on The Irrawaddy Magazine.

‘Permanent’ Residence for Former Citizens, Foreigners to Start Next Month Posted: 10 Nov 2014 04:35 AM PST ABSDF chairman Moe Thee Zun addresses a crowd from atop a van outside Rangoon International Airport in 2012 after being removed from a blacklist preventing his return to Burma. (Photo: The Irrawaddy) RANGOON — A "permanent" residency system of sorts will be introduced in Burma in the next month, according to a senior official with the Ministry of Immigration and Population. The official, who asked not to be named, says that the long-term residency program will commence on Dec. 5, with successful applications to be granted an initial five-year period of residency. Professionals, technicians, investors and former Burmese citizens will be eligible for consideration. "The applicants will be permitted to stay in the country for five years, and after that time they can extend their residency," he said. He said that the criteria for the applicants, the permitted period for extension and application fees will be confirmed when the bylaw governing the residency system is publicly released in the middle of this month. Vice President Nyan Tun told a Nov. 7 meeting in Naypyidaw of the Management Committee for Permanent Residence System for Foreigners that the system would be the first of its kind in the history of Burma. "The system will strengthen the favorable conditions of Myanmar at right time and it will enable scholars, experts, intellectuals and investors from other countries as well as former Burmese citizens to contribute to national development," he said, according to the state-run Global New Light of Myanmar. Dual citizenship is prohibited in Burma, according to the 1982 Citizenship Law. Tens of thousands of Burmese exiles, who fled the country for various reasons under the military regime, effectively lost their Burmese citizenship while living abroad after being granted residency or citizenship in foreign countries. The Burmese government is now reviewing citizenship applications for exiles, but has been criticized for an administrative backlog. In the interim, Burmese exiles wishing to return to the country must apply for visas. Social visit visas for former citizens are limited to 28 days, and business visas currently only allow residence in Burma for 10-week periods. Bo Kyi, co-founder of the Thailand-based Assistance Association for Political Prisoners, who was exiled from the country between 1999 and 2013, said that he now holds permanent residence from Czech Republic and is required to use business visas to travel to Burma. Bo Kyi said that the government should devise a more expeditious policy for reviewing citizenship applications for former Burmese citizens, as some applicants have had to wait more than a year to receive a formal acknowledgement of their applications. "I applied for citizenship last month," he said, "but I still haven't had any response." "Although the government is saying former Burmese citizens in foreign countries can come back to the country, they don't treat them fairly when they want to come back," he said. He added that the government should open the route for Burmese exiles stripped of their citizenship to be able to participate in politics. Currently the law states that any Burmese national who has lost his or her citizenship needs to wait ten years after regaining it before being granted the right to contest a parliamentary seat. The post ‘Permanent’ Residence for Former Citizens, Foreigners to Start Next Month appeared first on The Irrawaddy Magazine.

Taunggyi Balloon Festival Deaths Rise to 4 Posted: 10 Nov 2014 02:32 AM PST Members of a balloon team try to push a descending balloon loaded with fireworks over a food stall at the Taunggyi festival on Nov. 2, 2014. (Photo: Paul Vrieze / The Irrawaddy) RANGOON — The death toll of the Taunggyi's balloon festival in Shan State this year has risen to four, festival organizers and participants said, after a man injured in an accident died of his wounds on Friday, while news also emerged that a child had died on Nov. 4 when a balloon landed on a tent. The famed annual balloon festival, which marks the full moon day of Tazaungdaing, an important day in the Buddhist calendar, began at midnight on Friday Oct. 31 and was scheduled to continue for a week, but it was cut short and ended on Thursday Nov. 6 due to poor weather conditions. About 50 remaining balloon flights were cancelled In an accident on Oct. 31, a hot-air balloon, which has liters of burning paraffin and dozens of kilos of fireworks hanging on a frame below it, suddenly fell down onto spectators and members of the Khun Tan balloon team. Two men died several days later from severe burns sustained during the accident, while 12 others were injured, three of them critically. Last Friday, one of the critically injured, Khun Thi Han, leader of the Khun Tan balloon team, died from his injuries. "The doctors said about 80 percent of his body had burns and this caused his death," said Khun Aung Thein, a friend of the victim. "He was trying to drive away the spectators and help extinguish the fire during the accident. Unfortunately, he was also burned and his death is a tragic loss for the team." Taunggyi Hospital staff told The Irrawaddy that most of those with minor injuries have been discharged, while two other patients with serious injuries were transferred to private hospitals by their families. In another tragic accident on Nov. 4 a balloon was blown away by strong winds to the edges of the festival grounds, where it fell down and landed on a tent where a four-year-old child was sleeping, said Tin Win, secretary of the Taunggyi Fire Balloon Festival Committee. "The balloon drifted away from the festival grounds, caught fire and fell down from the sky suddenly. It went down onto a small hut where a poor child was left alone, the hut caught fire and he died on the spot," he said. Tin Win blamed bad weather conditions for this year's accidents, adding, "Such accidents rarely happen" during other years. The number of dead and injured during Taunggyi's famed festival is the worst in years. The festival has, however, always been a dangerous yet awesome spectacle. Tens of thousands of people watch the home-made balloons from nearby as they take off from the festival grounds. Hundreds gather within meters of the balloon teams as they prepare to let up the large balloons loaded with home-made fireworks. Many enthusiastic spectators stand below the balloons as they rise up and fireworks explode in the sky. During this year's festival, there appeared to be little in the way of safety precautions apart from the presence of a fire truck and warnings shouted by the festival organizers through a public sound system. The post Taunggyi Balloon Festival Deaths Rise to 4 appeared first on The Irrawaddy Magazine.

Paying Lip Service Posted: 10 Nov 2014 02:21 AM PST Will Obama Pucker Up for His Burmese Counterpart? The post Paying Lip Service appeared first on The Irrawaddy Magazine.

Protesters Allege Corruption of Judge in Irrawaddy Division Posted: 10 Nov 2014 02:00 AM PST Pantanaw locals stage a demonstration against the township judge. (Photo: Salai Thant Zin / The Irrawaddy) PATHEIN, Irrawaddy Division — More than 200 locals staged a demonstration in front of the local courthouse against the rulings of a judge in Pantanaw Township, Irrawaddy Division, last week. Pantanaw locals allege that the township judge, Thida One, has taken bribes, issued unjust rulings, delayed trials and refused defendants' bail. "My husband, a ten-household administrator, is behind bars now in Maubin. He, along with other responsible village administrators, temporarily detained a man who was drunk and disorderly in the ward. That man was only fined 10,000 kyats [US$10] but three ten-household administrators were sentenced to one month in prison for unlawful arrest. That's why I'm staging this demonstration," said Thin Thin Khaing from Kinwagyi village in Pantanaw Township. (A ten-household administrator is the lowest administrative rank in local government.) The three village administrators temporarily detained a man for drunk and disorderly conduct in Kinwagyi village in September 2013. The detainee later sued nine people, including Thin Thin Khaing's husband, on charges of unlawful arrest. At the conclusion of a trial that lasted more than a year, the Pantanaw Township judge on Oct. 21 ruled that eight of the defendants, including the three ten-household administrators, be incarcerated for a month, provoking the anger of the defendants' families, who led the demonstration on Friday. The plaintiff was fined 10,000 kyats. It is the first demonstration by locals against a township judge, but previous anti-government protests have ranged from denunciations of the state of the education and health sectors in Irrawaddy Division to the region's anti-human trafficking police force. Demonstrators on Friday walked from the township general administration office to the courthouse, holding placards with messages including "Down with the Pantanaw township judge who unlawfully arrested farmers"; "No corruption and bribery"; "Judges should make objective judgment and release farmers"; and "Impartial judicial system wanted immediately." "The man who was drunk and disorderly in the ward was only fined 10,000 kyats. But those who detained him as part of their duty and others who were in no way concerned with the case were given prison sentences. This is totally unfair," said Aye Myitn from Kinwagyi village. "I therefore would like to ask the president and the chief justice to take action against that judge who made the unfair rulings," he added. The families of 19 farmers who were charged with stealing fish and three other offenses also participated in the demonstration last week. The detained farmers have been standing trial for over four months and were denied bail. Their families have demanded that the judge be investigated for the prolonged court proceedings. "The farmers were called to the Pantanaw Township Court ostensibly to discuss their farms. When they arrived at the court, they were cuffed and arrested. They were put behind bars and have been facing trial for more than four months. They have also been denied bail," said Kon Shan village resident Aung Mya Oo, whose brother is among the detainees. "What I would like to say to the president and responsible persons is that the judicial pillar is severely cracked. I'd like to request that they fix it," he added. There were more than 30 land ownership dispute cases filed with the Pantanaw Township Court in 2013 and 2014. More than 200 farmers have been sued and about 50 of them were given jail sentences, said Zaw Zaw, a farmers' rights activist from Pantanaw Township. The post Protesters Allege Corruption of Judge in Irrawaddy Division appeared first on The Irrawaddy Magazine.

Govt, Environmentalists Discuss Marine Protection Area for Mergui Archipelago Posted: 09 Nov 2014 11:10 PM PST A photo said to show a Moken fishing village in the Mergui Archipelago. (Photo: Wikipedia) RANGOON — Flora and Fauna International (FFI) said it held a meeting recently with representatives of several government ministries and the Tenasserim Division government to discuss plans for the creation of a Marine Protected Area in Mergui Archipelago, located off the coast of southern Burma. The two-day workshop, "discussed the biodiversity values of the Myeik [Mergui] Archipelago for Myanmar and the Andaman Sea, new research data from ongoing scientific assessments, key sites for marine conservation, and threats facing the ecosystems and fishing industry," FFI said in a press release. Discussions also focused on how a Marine Protected Area can be a management tool for sustaining coastal fisheries resources. The Mergui Archipelago comprises over 800 islands of white sandy beaches, coral reefs and sea grass areas with a diverse array of marine life. FFI has studied the region in recent years and its scuba diving marine research team has identified 287 species of coral and 365 reef fish species, as well as reefs rich in echinoderms, crustaceans, molluscs and sponges. The corals reefs, sea grass areas and mangrove forests are under serious threat from overfishing, destructive fishing methods, sediment run off and global warming, FFI said. FFI program director for Burma Frank Momberg said, "[F]isheries resources have declined dramatically over the last decade. However, by establishing a Marine Protected Area network Myanmar will protect important nursery grounds for fish, such as coral reef and mangrove areas, critical to maintaining the livelihood of coastal fishing communities and the fishing industry." Khin Maung Aye, deputy minister of livestock, fisheries and rural development, the minister of the Tenasserim Division's Ministry of Forest and Mining, representatives of the Ministry of Environmental Conservation and Forestry, the Myanmar Fisheries Federation and local civil society organizations attended the meeting in Tenasserim Division, according to FFI. Workshop participants agreed to work on a number of initial measures towards establishing a Marine Protection Area, including mapping the use of the archipelago's resources, engaging commercial fishing firms in the area, developing pilot marine protection areas, and identifying technological solutions for collecting data on fisheries, FFI said. Apart from the reported government interest in conserving the unique marine ecosystem, Tenasserim Division authorities have also indicated that they are keen to develop the pristine islands for tourism. In January, a Tenasserim official said four tourism projects could begin this year. An investment company formed by Tenasserim businessmen has announced it has US$50 million to invest in building hotels, houses, golf courses and shops on the deserted Khuntee (or Gabuza) Island, Eastern Sula Island, Langan Island and Tanintharyi Island by 2018. The post Govt, Environmentalists Discuss Marine Protection Area for Mergui Archipelago appeared first on The Irrawaddy Magazine.

Kyaukphyu SEZ: Economic Reality or Pipedream? Posted: 09 Nov 2014 04:00 PM PST Construction on Ramree Island in late 2012 (Photo: Soe Myint / The Irrawaddy) The development of a special economic zone (SEZ) around Kyaukphyu in Myanmar's Rakhine State could move closer to reality before the end of the year with the naming of tender winners for the development of factories, new housing and infrastructure. Twelve foreign and domestic firms have been shortlisted by the SEZ development committee, which failed to name any of them in a supposedly open process, but which sources said include Chinese, Singaporean and Indian businesses. China continues to be seen as pivotal to the successful development of the Kyaukphyu SEZ, despite cooling business relations between Naypyitaw and Beijing. First, President U Thein Sein's suspension of the massive Myitsone dam on the Ayeyarwady River upset China and, more recently, negotiations have broken down over the construction of a railway line from Kunming in southwest China's Yunnan Province across Myanmar to Kyaukphyu. China and Singapore were the target of recent roadshows seeking to attract investment in the Kyaukphyu SEZ. The promotion included a six-minute video extolling the virtues of Kyaukphyu, currently an undeveloped backwater where promises by China National Petroleum Corporation (CNPC) to provide 24-hour electricity supply to the local population remain unfulfilled, said the Rakhine Social Network Information Center, a local NGO. CNPC has built crude oil and gas pipelines running from Kyaukphyu through Magway Region, Mandalay Region and Shan State to China, as well as an oil transhipment terminal for tankers docking with oil from Middle East and African suppliers. Arakan Oil Watch, an NGO which monitors developments around Ramree Island where the terminal is sited, believes Kyaukphyu could become a base for a marine services sub-industry to provide engineering, supplies and maintenance support for the numerous offshore oil and gas exploration blocks recently awarded to a clutch of international companies. The SEZ promotional video said that the Kyaukphyu SEZ will provide an important Indian Ocean link for China, northeast India and some countries of the Association of Southeast Asian Nations (ASEAN). "Kyaukphyu is uniquely positioned to serve as a trade corridor connecting these three economies with a combined population of 3 billion people," the video said. "It will play a vital role in unlocking the potential of the [Myanmar] hinterland." A Chinese state-owned firm heads a partnership appointed in March to promote, advise and coordinate the Kyaukphyu SEZ. Naypyitaw named a group led by CPG Corporation of Singapore, however, this firm was bought in 2012 by China Architecture Design and Research Group, China's largest state-owned engineering design and services company. Kyaukphyu is seen by China's strategic planners as a key element of the so-called BCIM Corridor, for Bangladesh-China-India-Myanmar. The BCIM is a pet project of Beijing's and was promoted by China's President Xi Jinping on a state visit to India in September. A pivotal place in the BCIM corridor would be Mandalay, linking Kunming in Yunnan Province with northeast India and on into Bangladesh. But observers also see the BCIM idea as instrumental in facilitating Chinese access to the Indian Ocean. The BCIM is a grand plan for China to "gain access to multiple coastal zones that are considered crucial for the next-generation Chinese economy," commented India's Telegraph business newspaper. Economists and foreign policy analysts are divided over whether a Kyaukphyu SEZ is viable in the near term. Meanwhile, work progresses on the country's first SEZ, with Japanese investment, at Thilawa adjacent to Yangon. An SEZ around Kyaukphyu would need considerable investment in basic infrastructure such as electricity and new road, rail and port communications. One Western economist who knows Myanmar well told The Irrawaddy, on condition of anonymity, that a Kyaukphyu SEZ might be plausible in the long term but foreign investment should be focused on Thilawa until it is completed and operational. Yun Sun, a China foreign policy analyst with the Washington-based non-profit think tank the Stimson Center, believes the SEZ and a new railway linked to China's Yunnan Province could go ahead with reduced Chinese involvement. She argues that a Yunnan-Kyaukphyu railway remains of strategic importance to China as a key component of China's trans-Asia railway network and in "developing a southwest strategic corridor to the Indian Ocean, a route for crucial imports that bypass the congested Malacca Strait and hotly contested South China Sea." "However, China is not the only investor available in the case of Kyaukphyu," Yun Sun told The Irrawaddy. "I expect investment from Southeast Asia to play a big role in many of the related fields. [Myanmar] remains a key link in China's BCIM, South Asia and Southeast Asia strategies. I doubt that China will completely abandon its strategic plan. The Chinese will be involved in the Kyaukphyu SEZ." The development of Kyaukphyu would be divided into three sections, a deep-water port, an industrial estate, and a housing district. The planners are targeting textiles, construction materials, food processing and general manufacturing for the industrial estate. Myanmar's Ministry of Electric Power is planning to award a contract to build a 50 megawatt gas-fuelled power station at Kyaukphyu, although power industry analysts say this would be inadequate to supply sufficient electricity to fuel the envisaged SEZ. Another Western economist who has been an active, long-time observer of Myanmar thinks a Kyaukphyu SEZ is a non-starter for the foreseeable future. "I continue to believe this project is not going anywhere, despite some movement in establishing a management company, as well as the power [plant] proposal," Sean Turnell, a professor at Macquarie University in Australia, told The Irrawaddy. "Neither the politics nor the economics of the Kyaukphyu SEZ are plausible as yet," added Mr. Turnell, who is also co-editor of Burma Economic Watch. Whichever companies win contracts to develop the SEZ, they may have to contend with a hazard that was not mentioned in the promotional video: mud volcanoes. The area around Kyaukphyu is noted for this natural, destructive phenomenon, also known as mud pots, in which warm mud and methane gas spew to the surface from subterranean fault lines. One such incident occurred at the end of August near the village of Shauk-Chaung on the edge of the SEZ and engulfed about 100 acres of land, said the Rakhine Social Network Information Center. On that occasion no one was hurt and only rice paddy was destroyed. But next time, perhaps, it could be factories and other expensively installed infrastructure. This story first appeared in the November 2014 print issue of The Irrawaddy magazine. The post Kyaukphyu SEZ: Economic Reality or Pipedream? appeared first on The Irrawaddy Magazine.

China to Establish $40bn Silk Road Infrastructure Fund Posted: 09 Nov 2014 10:31 PM PST China's President Xi Jinping, fourth from right, gestures as he stands alongside Burma's President Thein Sein, second right, and leaders from Pakistan, Bangladesh, Laos, Tajikistan, Mongolia and Cambodia on Nov. 8, 2014. (Photo: Reuters) BEIJING — China will contribute US$40 billion to set up a Silk Road infrastructure fund to boost connectivity across Asia, President Xi Jinping announced over the weekend, the latest Chinese project to spread the largesse of its own economic growth. China has dangled financial and trade incentives before, mostly to Central Asia but also to countries in South Asia, backing efforts to resurrect the old Silk Road trading route that once carried treasures between China and the Mediterranean. The fund will be for investing in infrastructure, resources and industrial and financial cooperation, among other projects, Xi said, according to Xinhua. The goal of the fund is to "break the connectivity bottleneck" in Asia, state media quoted Xi as saying during a meeting in Beijing with leaders from Bangladesh, Cambodia, Laos, Mongolia, Burma, Pakistan and Tajikistan. The Silk Road Fund will be "open" and welcome investors from Asia and beyond to "actively" take part in the project, Xi was cited as saying, ahead of a separate summit of the Asia Pacific Economic Cooperation (APEC) grouping, also being held in the Chinese capital. It was not immediately clear precisely how the fund would work, when it would start operations or where it would be based, though in all likelihood it would be China. But Xinhua said it would focus on China's Silk Road Economic Belt and the 21st Century Maritime Silk Road initiative, which aim to build roads, railways, ports and airports across Central Asia and South Asia. "Such a framework accommodates the needs of various countries and covers both land and sea-related projects," Xi said, adding China is ready to welcome its neighbors "to get on board the train of China's development." China will also provide neighboring countries with 20,000 places for training "connectivity professionals" over the next five years, Xi said. China has sought to address fears in the region—and globally—that its bounding economic growth will inevitably bring about a more assertive, muscular diplomatic and military approach to issues such as territorial disputes. One of the ways it has done this is to offer large loans to places like Southeast Asia and Africa, to show that China is a benign growing power only interested in helping others escape poverty in the way it has itself over the past three decades. Last month, Xi unveiled the $50 billion China-backed Asian Infrastructure Investment Bank, seen as a challenge to the World Bank and Asian Development Bank, both multilateral lenders that count Washington and its allies as their biggest financial backers. China has sought to allay concerns that its new bank aims to undermine the World Bank and Asian Development Bank, saying it wants to learn from their experience and that there are more than enough projects around for all the lenders to fund. The post China to Establish $40bn Silk Road Infrastructure Fund appeared first on The Irrawaddy Magazine.

American Freed by North Korea Wanted Pizza Posted: 09 Nov 2014 09:20 PM PST Kenneth Bae and his mother Myung Hee Bae embrace as they reunite after he landed at McChord Field at Joint Base Lewis-McChord, Washington November 8, 2014. (Photo: Reuters) SEATTLE, Washington — Kenneth Bae arrived home after years of imprisonment in North Korea, expressing his gratitude to the US government for securing his release and revealing that his time there offered lessons. And his sister said he had one stipulation for his first meal back home: No Korean food. "He said, 'I don't want Korean food, that's all I've been eating for the last two years,'" Terri Chung said Sunday outside her Seattle church. "We had a late night eating pizza." Bae and Matthew Miller, another American who had been held captive in North Korea, landed Saturday night at a Washington state military base after a top US intelligence official secured their release. "It's been an amazing two years, I learned a lot, I grew a lot, I lost a lot of weight," Bae, a Korean-American missionary with health problems, said at Joint Base-Lewis-McChord Saturday night. Asked how he was feeling, he said, "I'm recovering at this time." Bae, surrounded by family members, spoke briefly to the media after the plane carrying him and Miller landed. He thanked President Barack Obama and the people who supported him and his family. He also thanked the North Korean government for releasing him. "I just want to say thank you all for supporting me and standing by me," Bae said. His family has said he suffers from diabetes, an enlarged heart, liver problems and back pain. Chung said Bae was in better shape when he arrived than his family expected. She said he had spent about six weeks in a North Korean hospital before he returned. "That helped. As you know, he had gone back and forth between the labor camp and hospital," she said. She said he was checked out by a doctor on the flight back to the United States. His plans for the near future include rest and food and reconnecting with friends and family. Neither his wife nor his children could make it back to Seattle in time for Bae's homecoming, his sister said. They plan to gather the whole family together for Thanksgiving, she said. Members of Bae's family, who live near the sprawling military base south of Seattle, had met him when he landed. His mother hugged him after he got off the plane. Miller stepped off the US government aircraft a short time later and also was greeted with hugs. US officials said Miller of Bakersfield, California, and Bae of Lynnwood, Washington state, flew back with James Clapper, the director of national intelligence. Clapper was the highest-ranking American to visit Pyongyang in more than a decade. Their release was the latest twist in the fitful relationship between the Obama administration and the young North Korean leader, Kim Jong Un, whose approach to the US has shifted back and forth from defiance to occasional conciliation. Bae was serving a 15-year sentence for alleged anti-government activities. He was detained in 2012 while leading a tour group to a North Korean economic zone. Miller was serving a six-year jail term on charges of espionage after he allegedly ripped up his tourist visa at Pyongyang's airport in April and demanded asylum. North Korea said Miller had wanted to experience prison life so he could secretly investigate the country's human rights situation. Bae and Miller were the last two Americans held captive by the reclusive Communist country. Last month, North Korea released Jeffrey Fowle of Miamisburg, Ohio, who was held for nearly six months. He had left a Bible in a nightclub in the hope that it would reach North Korea's underground Christian community. Speaking Sunday, Chung said her brother was staying with family members, and enjoyed visiting with his loved ones upon his return. "He was cut off from all of that for two years," she said. "His only contacts were his guard, and maybe doctors and a handful of times the Swedish embassy." Sweden represents US interests because the US and North Korea do not have diplomatic relations. Chung said she was thrilled to have her brother home, and that "he bears no ill will" over his ordeal. Although he still has warm feelings for the North Korean people, Chung doubted her brother would want to return to that country any time soon. He hasn't told them many details about his ordeal and Chung said she remains worried about her brother. The State Department called the family at about 2 am Saturday to give them the news that Bae was coming home. They also received a call a few days earlier saying something might be happening, but Chung was reluctant to believe that message. "There's been a lot of heartbreak and disappointment," she said of the time spent waiting for her brother's release. She thanked people around the world for their prayers and government officials and others for advocating for Bae's release. She also said former detainees and their families have been a source of comfort and support for her family. "First and foremost we thank God," Chung said, adding soon afterward, "I have to thank President Obama." The post American Freed by North Korea Wanted Pizza appeared first on The Irrawaddy Magazine.

In China, Obama Tests Global Clout Post-Election Posted: 09 Nov 2014 09:15 PM PST US President Barack Obama steps from Air Force One upon his arrival in Beijing on Nov. 10, 2014. (Photo: Reuters) BEIJING — His influence at home quickly fading, US President Barack Obama is looking east to China, the opening stop of a three-country tour that will test his ability to play a commanding role on the world stage during his final two years in office. Once treated like a global superstar, Obama arrived Monday in Beijing under far different circumstances, with his most powerful days behind him. At home, Republicans are still rejoicing at having pummeled Obama's political party in the midterm elections, relegating Democrats to the minority in both chambers of Congress. His counterparts in Asia surely have noticed. Upon his arrival in the Chinese capital, Obama stepped off Air Force One and onto a red carpet, where an honor guard of dozens lined his path. He greeted Chinese officials before being whisked into his waiting limousine. First up for Obama was a sit-down with new Indonesian President Joko Widodo, who was sworn in last month amid high hopes of progressive leadership. Speaking through a translator, Widodo said his election showed that Islam and democracy can go together, and pledged to keep fighting extremism in his country. Calling Widodo's election "inspiring," Obama said it was an "affirmation of the full transition Indonesia has made to a thriving democracy and a model for the kind of tolerance and pluralism that we want to see all around the world." He suggested Widodo might even visit Washington next year. Later Monday, Obama was to give a speech about US ties to Asia at a high-level Asia-Pacific Economic Cooperation summit, then join key Asian leaders for dinner and fireworks at the Beijing National Aquatics Center. During his three days in China, Obama will also meet with Chinese President Xi Jinping. The leaders of the world's two largest economies will address reporters before the state visit draws to a close Wednesday and Obama flies to Burma. The trip marks one of Obama's final opportunities to deliver on his goal to amplify US influence in Asia. In China, Burma and Australia, leaders will be rendering judgment on whether Obama's lofty ambitions in the Asia Pacific have been sidetracked by festering crises in Eastern Europe, Africa and the Middle East. "This is going to be a tough trip for the president," said Ernest Bower, an Asia expert at the Center for Strategic and International Studies in Washington. He said Asian leaders were viewing Obama's trip with a key question in mind: Who is Barack Obama after the midterm elections? "They'll be trying to discern whether he has the commitment and political capital to follow through," Bower said. Even before the election, Obama's commitment to the region and his ability to boost US clout there was in doubt in many capitals. US allies such as Japan and South Korea have pressed for a greater American presence, partly to counter China's growing influence. Yet Obama's mission against the Islamic State group and his government's Ebola response have diverted US military and financial resources elsewhere. "The president remains deeply committed to his Asia rebalancing strategy, and its implementation will remain a top priority throughout the second term," said Obama's national security adviser, Susan Rice. US presidents often immerse themselves in foreign affairs during their last years in office, when the focus on the next presidential race saps the energy from their own domestic efforts. In the wake of last week's elections, White House officials spoke optimistically about Obama's prospects for clinching trade deals in Asia and elsewhere now that Republicans are set to control Congress. Under Obama, US trade negotiators for years have been pursuing the Trans-Pacific Partnership, a major trade pact being negotiated with 11 nations. The talks have repeatedly blown past their deadlines, and other nations have been wary about Obama's ability to push an eventual deal through Congress, where Democrats have been sensitive to the concerns of labor unions. But with Republicans in charge, Obama's prospects may have improved, so the argument goes. Republicans tend to support trade deals as a way to boost the US economy, and Republican leaders have spoken positively about giving Obama so-called "fast track" approval that would subject the final deal to an up-or-down vote, preventing last-minute amendments that could sink the whole agreement. China is not part of the talks, and is pursuing its own free trade deals in the region. What's more, Chinese leaders have viewed Obama's focus on Asia with suspicion, fearing an attempt to contain China's growth and influence in the region. In a sign of the political climate facing Obama in China, state-run media have been mocking him in the days before his visit. "Obama always utters 'Yes, we can,' which led to the high expectations people had for him," read an editorial in the English-language Global Times. "But he has done an insipid job, offering nearly nothing to his supporters. US society has grown tired of his banality." Another reminder of the tensions in the region came hours before Obama left on Saturday when North Korea released two American detainees after Obama's spy chief made a secret mission to Pyongyang to secure their release. In his meetings with Xi, Obama also plans to address human rights issues, officials said, including the treatment of journalists as well as pro-democracy protests in Hong Kong that erupted in September to the dismay of Chinese officials. Climate change—a key concern in smog-filled Beijing—and China's aggressive behavior toward its neighbors are also on Obama's agenda. The post In China, Obama Tests Global Clout Post-Election appeared first on The Irrawaddy Magazine.

China, South Korea “Effectively” Conclude Free Trade Deal Posted: 09 Nov 2014 09:12 PM PST China’s President Xi Jinping shakes hands with South Korea’s President Park Geun-hye on Monday during a meeting at the Great Hall of the People, on the sidelines of the Asia Pacific Economic Cooperation meetings in Beijing. (Photo: Kim Kyung-Hoon / Reuters) BEIJING — Chinese and South Korean leaders said on Monday the two countries have "effectively" concluded a free trade agreement that will remove or sharply reduce barriers to trade and investment between the two trading giants. The deal follows more than two years of negotiations between the two neighbours on opening their markets wider to each other, although there remains some scepticism in South Korea about a swift passing through the country’s parliament. "South Korean and Chinese leaders today declared an effective conclusion of the FTA at a summit meeting held at the Great Hall of the People in Beijing," a statement from Korea’s presidential office quoted spokesman Min Kyung-wook as saying. The statement did not provide details of the agreement but said South Korean President Park Geun-hye and Chinese President Xi Jinping were due to attend a signing ceremony later on Monday to confirm the conclusion of the negotiations. The agreement comes as South Korea has yet to decide whether to join the United States-initiated Trans-Pacific Partnership pact, aimed at slashing trade barriers between a dozen countries. China is the world’s largest exporter and South Korea ranks seventh. South Korea already has free trade agreements with the United States and the European Union. An official at Seoul’s trade ministry said the agreement with Beijing was not final while China’s Xinhua news agency called it a conclusion of substantive negotiations, indicating some fine-tuning has yet to be done. South Korean media reported the two countries have agreed to exclude rice from the deal, usually the thorniest issue in South Korea’s trade negotiations with foreign countries. Xinhua reported the agreement covers 17 areas including online commerce and government purchasing. China and South Korea normalised diplomatic relations in 1992 and bilateral trade grew 36-fold to $228.92 billion in 2013 from just $6.38 billion in 1992, South Korea’s data shows. South Korea has been running a trade surplus with China since 1993. In 2013, the surplus was $62.8 billion. Analysts in Seoul have said the deal would have only a limited direct boost to bilateral trade or economic growth but would help South Korea strengthen ties with China, the sole major ally of North Korea. The two Koreas remain technically at war after their 1950-53 war ended in a truce, and China is the host of six-party talks aimed at diffusing tensions over Pyongyang’s nuclear development ambitions. The talks, which also involve the United States, Russia and Japan, have been stalled for years. The post China, South Korea "Effectively" Conclude Free Trade Deal appeared first on The Irrawaddy Magazine.

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