Democratic Voice of Burma

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• Business weekly
• Suu Kyi warns weak Rule of Law may scare off investors
• Nuclear Burma – a chance to cut the red tape

Business weekly Posted: 21 Sep 2013 09:45 PM PDT   Ups and downs The Burmese currency fell slightly against the US dollar this week: the buying rate was 971 kyat to the dollar compared to 969 the week before. The dollar was also up two kyat from last week, selling at 978.   Japanese firms unite to modernize Burmese aviation Five Japanese multinational companies concluded an agreement with Burma's aviation authorities on 20 September to modernize the country's outdated airport infrastructure, according to Tokyo daily Asahi Shimbun. The five firms were named as: Sumitomo Corp; NEC Corp; NEC Networks & System Integration Corp; Toshiba Corp; and Morita Corp. The Japanese companies are to assist Burma procure modern radio, flight systems, security and communications control equipment for major airports, such as Rangoon, Mandalay, Nyaung U, Heho, Sandoway and Tavoy, the report said.   Suu Kyi calls for 'responsible investment' Speaking in Singapore on Saturday, Burmese opposition leader Aung San Suu Kyi said Burma needs "responsible investment" of foreign capital as it seeks to accelerate economic development, according to an AFP report. She also said that the country needs to improve its rule of law and democratic reforms "soon" – not by 2015 when general elections are held. Establishing a firmer rule of law will include changes to the constitution, she reportedly said, without giving details. Read more: http://www.dvb.no/news/suu-kyi-warns-weak-rule-of-law-may-scare-off-investors-myanmar-burma-investment/32687   NZ Embassy opens in Burma New Zealand has opened its first embassy in Burma, saying that Wellington now recognises the political and economic reforms in the country. NZ Foreign Affairs Minister Murray McCully said last week the bureau in Rangoon will host a number of ministerial and official level meetings next year. New Zealand has recently increased its development assistance to Burma, with major commitments to dairy cooperation and capacity building. And the African nation of Angola has signed an accord with Burma to establish diplomatic relations between the two countries, its official news agency Angop reported on Friday.   Railway head office to be converted into 5-star hotel The railway head office in Rangoon is to be converted into a five-star hotel, Xinhua reported on Wednesday, citing Burmese officials. The new hotel will aim to accommodate foreign tourists with 154 suites and 450 staff, the report said. There are currently five other five-star hotels in the former capital.   Private jets for hire State-owned Myanmar Airways International is offering business jets for sale or hire to private businessmen, according to a report in the Myawaddy Daily Newspaper on 20 September. Quoting the airline's Mandalay senior officer Zaw Win, the report said that an unspecified number of Gulfstream G450 aircraft will be available, and that the service will allow business tycoons to charter aircraft for urgent business matters.   Kyaukphyu: Bright lights, big city Residents of Kyaukphyu and 21 surrounding villages began enjoying the benefits of 24-hour electricity as from 15 September when small-scale gas turbines began turning at the Shwe Gas pipeline terminal. According to a retired electricity official in the city, some 20 million cubic feet of compressed natural gas per day is now providing power to the town and its satellite villages. He said the price of electricity is 35 kyat per unit for home use and 75 kyat per unit for industrial purposes – the standard price across Burma. Read more: http://www.dvb.no/news/kyaukphyu-lights-up-burma-myanmar-shwe-gas-pipeline/32586   Pegu real estate soaring Land prices in the city of Pegu are soaring amid the construction of various development projects in the area, including the Hantharwaddy International Airport, industrial zones and suburban housing estates. According to local residents and real estate agents, the price of land in the choicest areas of Pegu, previously valued between 200,000 and 300,000 kyat (US$200-$300) per 80x100ft plot, has skyrocketed to over 100 million kyat (more than US$100,000) – a breathtaking 500 times the price of just two or three years ago. Read more: http://www.dvb.no/news/32611-burma-myanmar/32611   KBZ is highest taxpayer in Burma, says Finance Ministry The Kanbawza Bank (KBZ) has been declared the highest payer of income tax in Burma for the 2012-13 fiscal year, according to a list of the top 500 taxpayers in the country released by the Ministry of Finance and Revenue. Chaired by Aung Ko Win, KBZ has more than 2,000 employees and its main source of revenue is from its transfer and loan services. Min Htut, director-general of the Ministry of Finance and Revenue, said KBZ earned over 10 billion kyat (US$10 million) last fiscal year with tax levied at 25 percent on net profits. Read more: http://www.dvb.no/news/kanbawza-bank-is-countrys-highest-taxpayer-says-finance-ministry-burma-myanmar-banking-taxation/32631   Burmese-Thai businesses try speed dating An event called the Myanmar-Thai Business Matching will be held at the Union of Myanmar Federation of Chambers of Commerce and Industry office on 4 October to promote bilateral trade, Thailand's Commercial Office announced on Friday, adding that some 49 Thai companies – representing import and export, health, technology, cosmetics, food and cold storage interests – are expected to attend.

Suu Kyi warns weak Rule of Law may scare off investors Posted: 21 Sep 2013 08:34 PM PDT Burma's opposition leader Aung San Suu Kyi warned Saturday that communal violence and weak “rule of law” could scare off investors despite the country’s rapid pace of political and economic reform. The democracy icon told a business conference in Singapore that a stalemate in resolving protracted insurgencies, inter-ethnic conflicts and lack of robust laws posed the biggest challenges to development in the former pariah state. “Although we have achieved ceasefires, we have not really achieve d a peace settlement… In addition to that, we have communal tensions and communal outbreaks of violence,” Suu Kyi said in a keynote address at the high-level conference. “Unless we get these sorted out, we are not going to get the kind of stable, peaceful society where people would be happy to invest in.” Resource-rich Burma has been shaken by recent religious violence that has exposed deepening national faultlines despite the reforms launched by President Thein Sein in the formerly military-ruled nation. About 250 people have been killed and more than 140,000 left homeless in several outbreaks of violence since June 2012, mainly minority Rohingya Muslims who have been the target of riots and a nationalistic campaign led by radical monks. “We have to start with rule of law, that is what I have always said, and people are not satisfied with the answer because it is not exciting enough,” the 68-year-old said, responding to a question after her speech about ending the country’s ethnic violence. Related Stories Suu Kyi meets privately with Dalai Lama Suu Kyi wishes Burmese to be 'rich in hope' China pledges, Burma dredges While she is venerated for her struggle for democracy, some human rights activists have now accused the Nobel Prize laureate of failing to clearly condemn anti-Muslim actions in the Buddhist-majority nation. “If people are frightened that they will be killed, if people are frightened that their goods will be taken away from them or if their houses will be burned down above their heads, you will not be able to persuade them to sit down to sort out their differences,” she said. Suu Kyi said the international community could help by “giving us your understanding (and) by trying to go deeper into the reasons why communal conflicts have been taking place”. “Please study the situation in depth, please don’t take a superficial look at it, and try to condemn one community or another.” Suu Kyi, who has said she will run for president in 2015, also said investors should continue to make inroads in Burma, even if they have concerns about cronyism and the lack of an independent judiciary. “I wouldn’t advise you to draw out, I would like you to continue with your investments but to make them as responsible as possible,” she said. Suu Kyi told investors to exercise “cautious optimism” about the sweeping political and economic reforms under President Thein Sein. “It is not by painting an over-optimistic picture of our country that you can help us, it is only by being realistic about what we need to do that you will be able to help us,” she said.

Nuclear Burma – a chance to cut the red tape Posted: 21 Sep 2013 07:14 PM PDT On 17 September Burma took the long awaited step of signing a new agreement with the International Atomic Energy Agency, the IAEA. Burma promised to do this in late 2012 and has now followed through on the occasion of the IAEA General Conference in Vienna. The new agreement is called an Additional Protocol and it provides for more access for IAEA to any declared activities in Burma and removes obsolete provisions of an older agreement. The General Conference is a traditional time for states to make important announcements and Burma has continued that trend. This is a very welcome development, one that is consistent with many positive signs that Burma is really trying to change its image. Many problems remain in Burma: an ethnic war in the north and oppression of the Rohingya, but this is greatly offset by the release of political prisoners, fairer elections and opening of the country to the rest of the world. As difficult as times remain, one would have to be a real miser not to acknowledge there is change, positive change and hopeful change. Allegations of past hidden nuclear activities in Burma are a small but troubling remainder of the former military government. If there were undisclosed nuclear activities the current government can quickly dispel any doubts. Unfortunately the signing of the Additional Protocol is but the first of three steps in the process of opening up Burma's nuclear secrets, and diplomatic bureaucracy could add many more years before Burma even begins to comply. Burma must now ratify the president's signature in the legislature. The 10-month delay between the announcement of intent to sign and the actual signature gives some idea how slow this process can be. Then Burma must put in place an internal administrative structure. This structure needs to poll all stakeholders in Burma who have any nuclear materials or activities and then produce declarative reports for IAEA to investigate and verify. This process can take many years. We should not have to wait so long. Burma can unilaterally cut the red tape itself. On the authority of the president, Burma should immediately inform the IAEA that they are ready to allow certain inspections immediately to clear up allegations from defectors and analysts that have been supported by documentary evidence. Burma should immediately grant access to the small mine and conversion plant at Thabeikkyin and a number of military facilities in the area which are well known to the IAEA and other analysts. Secondly, Burma should grant immediate access to two machine tools factories that have been implicated in nuclear chemical industry work (see picture). As part of this access, they need to provide access to chemical equipment that has been extensively photographed and described here in the pages of the Democratic Voice of Burma and elsewhere. This access needs to be granted no matter where the equipment is located today and should include access to manufacturing drawings, data and current use. The equipment is very well-documented and it clearly exists. Related Stories Whistleblower welcomes Burma's nuclear cooperation Unrestricted access will either silence critics of Burma or give the regime a chance to explain itself. Finally, there are several other sites related to nuclear development that are not so well known and access should be given to those sites as part of the package. All of these activities could be carried out in a few weeks from now if all parties cooperate. Then the more routine part of establishing a normal nuclear materials verification regime could begin. Why should this be done now? There is a common misunderstanding that the Additional Protocol with the IAEA, ratified and brought into force allows "snap inspections", "anywhere and anytime" in the state.This is simply not true.The Protocol only allows short notice inspections of declared sites in Burma, and Naypyidaw has already said they have no activities or sites to declare.It is possible that we could wait years for Burma to reach the point of making a formal declaration of activities, and then state simply: "We have nothing to declare."Then the waiting will be for naught because the IAEA can only ask for access to declared activities and there are none. True, there are arrangements for highly intrusive "special inspections". Such inspections would require military force if the state does not voluntarily agree and a further stalemate could go on for years as it has in some other countries. The best way to avoid this dilemma is for Burma to volunteer to clear the issues immediately and cooperatively. Burma has taken the first step and should be heartily congratulated and encouraged to take the next steps as quickly as possible and not delay from eight to 10 years like several other ASEAN member states. The IAEA and others can help this process. But the delay from signing intent to actual signing is a worrisome indicator that the president does not control the consultative process or at least gives it a low priority. The international community should give Burma clear signs that a voluntary opening of key suspect sites is in its best interest and give Burma and the IAEA every assistance to close the books on this chapter once and for all. For more background: http://www.dvb.no/news/expert-says-burma-%E2%80%98planning-nuclear-bomb%E2%80%99/9527 Dr Robert Kelley is a former Los Alamos weapons scientist, and was an IAEA director from 1992 to 1993, and again from 2001 to 2005. He has conducted weapons inspections in Libya, Iraq, and South Africa, and compliance inspections in Egypt, Turkey, South Korea, Taiwan, Syria, Tanzania, Pakistan, India and Congo, among others. The views expressed in this article are the author’s and do not reflect DVB editorial policy.

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World Peace Day Posted: 22 Sep 2013 06:38 AM PDT The post World Peace Day appeared first on The Irrawaddy Magazine.

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• A Visit to Rangoon’s House of Memories
• ‘Rangoon Will Become a Megacity’
• Thailand’s Insect Farms Creating a Buzz
• Burma Business Roundup (September 21)

A Visit to Rangoon’s House of Memories Posted: 21 Sep 2013 12:14 AM PDT A more than 100-year-old wooden villa, the House of Memories is a restaurant and a living museum. Click on the box below to see more photos. (Jpaing / The Irrawaddy) RANGOON — "Kyi, I would like to have boiled garden peas and Nan Pya if possible," Gen Aung San wrote in a short note to his wife Daw Khin Kyi in the early 1940s. Nan Pya, Indian-style baked flat bread, served with a boiled garden pea salad is a typical, popular Burmese breakfast, and the note became well-known as it showed that the famous general loved the same food as any ordinary Burmese person. A copy of the note by Aung San—Burma's independence hero and father of opposition leader Aung San Suu Kyi—graces the walls of the House of Memories, a restaurant located in the historic Nath Villa on No 290, U Wisara Road. The more than 100-year-old building, which is listed as national heritage, was at one time Aung San's office. The restaurant still has an item on its menu called "Bogyoke's rice," a rice plate served with portions of fried chicken, fish, meat balls and egg. The venue also offers a variety of other dishes of Burmese traditional food, and Thai, Chinese and Western cuisine. The large, colonial-style wooden villa is much more than a restaurant, however. The remarkably well-preserved house, which still retains most of the original antique furniture, is also a museum that commemorates key historical events in Burmese history that occurred here. It was the family home of the late Dina Nath, chairman of the Indian Independence Army for Burma and his wife Caroline Nath. An upstairs room in the house was Aung San's first office when the Burmese Independence Army (BIA) was headquartered here from 1941 onwards. The late Dina Nath helped organize secret meetings between Aung San and various Burmese and Indian leaders at his house during the independence struggle for Burma and India, both of which were under the British Raj at the time. Prominent Indian nationalist leader Subhas Chandra Bose was one of the leaders who stayed at the Nath family home when he visited Rangoon to hold clandestine talks with Aung San. Dina Nath's grandson, Richie Nath, says on the House of Memories website that the building stood empty for some time and he considered renting it out. But then he decided to turn it into a restaurant and living museum as "This building is the legacy of our grandparents." Walking through the house is like taking a trip to another era. Antique wooden chairs, desks and old type writer fill the rooms. Original copies of Aun San's speeches along with numerous historical black and white photos cover the walls. Many pictures show Dina Nath with a range of Indian and Burmese independence leaders such Aung San, Prime Minister U Nu and Jawaharlal Nehru. The post A Visit to Rangoon's House of Memories appeared first on The Irrawaddy Magazine.

‘Rangoon Will Become a Megacity’ Posted: 20 Sep 2013 11:54 PM PDT Toe Aung, deputy head of the Yangon City Development Committee's Department of City Planning and Land Administration, stands in front of a map of Rangoon at City Hall. (Photo: The Irrawaddy) RANGOON — Rangoon is Burma's biggest city—it's commercial and financial capital—but until just two years ago, it did not have an urban planning department. Toe Aung, a former army major, decided to set one up in 2011, the year reformist President Thein Sein came to power, and is now working to create a roadmap for future infrastructure projects in the city of 5 million people. He says Rangoon, which was the country's administrative capital until 2005, is set to become a megacity in the future, with its population expected to reach 10 million by 2040. Before that, however, it will need to contend with problems such as frequent power cuts, gridlocked traffic and a shortage of housing and office space, while also considering the importance of conservation—especially of heritage buildings and century-old colonial architecture. Toe Aung leads the Yangon City Development Committee (YCDC)'s Department of City Planning and Land Administration, which is collaborating with other organizations—including the Japan International Cooperation Agency (JICA)—to plan for the city's development. In this interview, he explains what he is doing to preserve green places, waterfronts and historic buildings. Question: What is YCDC's vision for Rangoon? Answer: According to the "Strategic Urban Development Plan of Greater Yangon" Plan, we have four visions for Rangoon. First, our city has to become an international hub. The second is to be a comfortable city for residents. Third, we need a city with good infrastructure. The last one is a city of good governance. These are our plans through 2040, as the city population will likely grow to 10 million people and Rangoon will become a megacity with that population. That's why we have targeted 2040 as a deadline to solve required housing projects and infrastructure development, which will be needed at that time. Q: YCDC has been working on zoning regulations. Can you tell me more about that? A: Zoning regulations are necessary for sustainable development in the city, including integrated and uniform zoning policies to preserve green places, waterfronts as well as historic buildings. These days we have many investment proposals from home and abroad. Even though the government is willing to approve them, we can't say 'yes' to all proposals without a zoning plan. If we do, there will be projects that fail to meet land-use requirements. If we allow high-rises recklessly, as we did in the past, there will be problems with electricity, water and sewage. Not all areas in downtown can have high-rises. Look at the tower close to Sule Pagoda—it dominates the pagoda and looks very inappropriate. To ensure something like this does not happen again, we need a zoning plan. Another problem in the downtown area is heritage buildings. They are scattered and sandwiched between residential areas. If we allow high-rises beside them, they will be dominated and their distinctiveness will be lost. On the other hand, we can't firmly say 'no' when a high-rise proposal comes up, because so far we have no zoning regulations to limit the height of a building. If we say developers shouldn't build that high, they will ask, 'Why shouldn't I?' And we have no exact answer. We hear a lot of complaints these days from developers that do not get approval for high-rise buildings. We tell them we are taking time to consider their proposals because we don't want to make mistakes that we made in the past. Q: Do you mean YCDC is no longer permitting high-rise buildings now? A: No, I don't. We are negotiating very hard with developers. For example, if they want a 32-story building, we say, 'No, please make it 20 stories or something.' If we have regulations, we can say, 'Take it or leave it.' So far we have needed to negotiate and work on a case-by-case basis. Q: When will the zoning regulation come into effect? A: The draft zoning plan may be finished at the end of this month. It covers more than half of the whole Rangoon—we prioritized the areas where developers are most interested. We are also focusing now on zoning guideline in those areas. We will get approval from experts for a draft of zoning guidelines by the end of this month, and we will submit it to the Rangoon divisional government for approval. If we have the guidelines, we can use them. We will make them pubic. Q: Apart from YCDC, which other organizations are involved in drafting zoning regulations? A: We founded the Yangon City Comprehensive Land Use, Zoning and Urban Design Review Working Committee together with experts from the YCDC, the Ministry of Construction's Department of Human Settlements and Housing Development, the Yangon Heritage Trust, Mandalay Technological University, the Association of Myanmar Architects and the Japan International Cooperation Agency (JICA). The working committee is just two months old, but we have discussed and planned the draft for one year. Q: How can the zoning plan help protect heritage buildings, especially in the downtown area? A: We have designated seven heritage zones downtown. We will control the height of buildings there if possible. Generally speaking, we surely won't allow any new buildings that would dominate heritage buildings. We have to put urban design into consideration, too. A high-rise right next to a heritage building would be unacceptable because it would dominate the old building and ruin the urban landscape. In the downtown area, there might be a limit on height. It might be different from area to area, and that's still under discussion. We also need to calculate the feasible height [for buildings] in heritage zones. For example, the [acceptable] height might be different for a building close to City Hall than it would be for a farther building. It's very complicated and takes a lot of time. Q: There are some ongoing high-rise projects in the downtown area. Under what criteria did you approve them? A: The projects were mostly passed when we were discussing having a zoning plan. It was our weakness, because we did not have zoning regulations in time. The president, U Thein Sein, encouraged us to develop solid zoning regulations. He supports YHT, too. But he is torn between conservation of heritage buildings and welcoming investors. If we don't allow modern development, our Rangoon will become a museum of old buildings. So we need to allow them, but only in the right places. The post 'Rangoon Will Become a Megacity' appeared first on The Irrawaddy Magazine.

Thailand’s Insect Farms Creating a Buzz Posted: 20 Sep 2013 11:31 PM PDT A laborer from Thailand displays a bunch of fried locusts. (Photo: Reuters / Amir Cohen) BAAN NON CHEUK, Thailand — Paddy and pigs had been the stilts on which Mali Nonthing built her life in this village in Khon Kaen, a northeastern province of Thailand. Farming them had provided steady, twin sources of income for decades. Now, only one remains: the verdant, iconic Asian staple crop glistening under the late afternoon sun behind her Thai-style home. The elevated strip of land where pigs were reared has given way to the new livestock that the 52-year-old is breeding: crickets. Under a sprawling corrugated shed, held up by wooden and cement poles, are 50 pens for two species of the insect being farmed. The cricket pens, knee-high and rectangular, cover an area as large as basketball court. In them, the black and brownish arthropods in the hundreds crawl over layers of cardboard egg cartons. "The crickets are better than the pigs," admits Mali of the switch she made from the four-legged livestock two years ago. "We can sell the mature crickets every four weeks, unlike the pigs that we could only sell every five or six months. And even then we were never sure of a profit." Similar switches in the livestock trade echo in Maha Sarakham, a province south of Khon Kaen. There, Duangjai Ploykanha sings the praises of crickets over cattle, which the 43-year-old and her husband had reared for years. Under two large sheds where bulls and cows were once tethered are 30 cement pens where the crickets are raised. "They are easier to take care of and the quality can be controlled," remarked Duangjai as she made her way between the pens, feeding the insects with chicken feed. "We have money to pay for our daughter's university education in Bangkok." Duangjai's village, in fact, offers a glimpse of the pace at which the "six-legged livestock," as the United Nations' Food and Agriculture Organisation (FAO) described them, has chewed its way into an animal economy that was once dominated by pigs and cattle. Over 200 of the 600 families living there now farm crickets. Some of them are full-timers; others part-timers, such as the local government officials, teachers and small shop owners who have cricket pens in their tree-covered yards. They are among the 20,000 registered cricket farms, containing more than 220,000 rearing pens, in Isaan, as the rural rice bowl of northeast Thailand is also known. That figure, according to the FAO, is a result of a trend that began in the mid-1990s. Its genesis was the introduction of new skills and technology to farm insects on a commercial scale. Till then, the custom had been the local habit of searching for crickets in the trees and shrubs to be savoured as part of the rural dietary mix. And Isaan's insect economy does have the wind behind its wings. Annual production of the six-legged livestock has reached over 7,500 tons during the last six years, states the FAO. Annual income from the edible insect trade now touches nearly US$30 million. While crickets are the most farmed and traded, other insects are lending weight to this alternative livestock sector. They include giant water bugs, grasshoppers, bamboo caterpillars, weaver ants, palm weevil larvae and silkworm pupae. "It is creating a lot of jobs and has become a growing multi-million dollar industry," says Patrick Durst, regional forestry officer at the FAO and co-author of a recent FAO study, "Six-legged livestock: edible insect farming, collecting and marketing in Thailand." The report affirmed that Thailand's dominance in Southeast Asia is not limited to farming insects. The growing demand in this kingdom also steers a lucrative import market and cross-border trade. Nearly 270 tons of silkworm pupae are imported annually from China and some 800 tons of other edible insects are transported across the border from Cambodia, Burma and Laos, according to the FAO study. "The economic value of imported insects is estimated at around 40 million Thai baht [US$1.24 million] per year." Imported grasshoppers from Cambodia are typical of this stock. Bags of them are piled on a low wooden bench at a wholesale agriculture market in Kalasin, a province east of Khon Kaen. Selling them is Kaew Aramsri, who brings her livestock, including the yellowish silkworm pupae and weaver ants, three times a week from the Thai-Cambodian border. They are transported in a truck fitted with cold storage. Her buyers are largely local street-food vendors. The grasshoppers go for 250 baht per kilo. This food chain has now spread beyond its traditional Isaan settings, contends a Thai academic who has presided over the niche carved by the arthropods. "In the past, the tradition of eating insects occurred mainly in northern and northeastern regions of the country," says Yupa Hanboonsong, a co-author of the FAO report and specialist in entomology at Khon Kaen University, the largest campus in the region. "Nowadays the practice has increased in popularity and has expanded nationwide." A major supermarket chain offers testimony to such eating habits on the shelves of its frozen foods section. In some Bangkok stores, frozen packets of bamboo worms and grasshoppers are sold. Some have pre-cooked meals of bamboo caterpillars ready to be microwaved. The post Thailand's Insect Farms Creating a Buzz appeared first on The Irrawaddy Magazine.

Burma Business Roundup (September 21) Posted: 20 Sep 2013 10:30 PM PDT Japan's Nissan to Assemble Cars, Trucks at new Burma Factory Major Japanese vehicle maker Nissan Motor Company is to open a factory in Burma to produce cars and small trucks, Toyko business newspaper Nikkei reported. Nissan plans to partner with Tan Chong Motor Holdings of Malaysia and an as yet unnamed Burmese firm to build a small plant which will "produce several thousand small passenger cars and pick-up trucks a year," said Nikkei. The vehicles will be assembled from parts built in other Nissan factories in the region, including Thailand, it said. The location of the factory and details of the investment were due to be announced during a visit to Burma by Nissan's chief executive Carlos Ghosn. It will be the second production start-up by a Japanese vehicle manufacturer. Earlier this year, the Suzuki Motor Corporation announced the re-opening of its Rangoon factory to build pickup trucks. The Suzuki factory, which has been closed since 2010, is initially producing 100 vehicles a month. Several other major international vehicle manufacturers have announced plans to enter the Burma market, where demand for cars especially has mushroomed since 2011. Mazda Motor Corporation said this week it will start selling new vehicles soon in Burma; the US's Ford Motor Company opened its first showroom in Burma in April; and General Motors is planning to follow suit. Between October 2011 and April 24, more than 160,000 cars, mostly second-hand Japanese vehicles, have been imported, the Ministry of Commerce has said. The figures suggest a more than 50 percent increase in the total number of cars in Burma since October 2011. China Seeks Contracts to Build Roads, Bridges and Improve Ports Chinese companies are keen to win contracts to help develop Burma's transport infrastructure, Beijing's ambassador Yang Houlan said. "The Chinese government attached importance to Sino-Myanmar cooperation in the transport sector, supporting the strength of Chinese enterprises to actively participate in port development, dredging and road and bridge construction," the official news agency Xinhua quoted Yang saying. He made the proposal when he attended an official handover in Rangoon harbour of 19 dredgers and supporting vessels supplied by the state-owned China National Aero-Technology Import & Export Corporation, also known as CATIC Beijing. The dredging equipment was supplied with the assistance of a preferential loan provided by the Chinese government, said Xinhua. Foreign Firms Invited to Bid for 2nd Business District Project in Rangoon Rangoon's City Development Committee is looking for foreign companies to help develop a new business center in Myangon Township. The so-called Secondary Central Business District is meant to include offices, shops, a hotels, cinemas, theaters, and an exhibition and conference center, said a government notice announcing the project. The site available for development is 36,500 acres, said the committee notice. Tenders are invited from foreign or domestic companies alone or in joint venture partnerships. It said financial and technical bids for the contract must be submitted by December 2 along with a bid security in the form of a bank guarantee valued US$1 million. EU Hears Allegations of Abuse of Burmese Workers at Thai Factory Questions have been asked in the European Parliament about the treatment of Burmese workers in Thailand. The questions were raised by British parliamentary deputy David Martin after charges of criminal defamation and damage were brought in a Bangkok court against Burma-based British human rights campaigner Andy Hall by the fruit juice processing company Natural Fruit. Hall had earlier made a film, commissioned by a Finland NGO, documenting alleged abuse of hundreds of Burmese workers at Natural Fruit factory. Hall said the factory employed illegal immigrants including Burmese children, paid wages below the Thai national minimum, made unjustified financial charges and confiscated workers' passports tantamount to debt bondage. Natural Fruit denies all the allegations. Hall's film was commissioned by Finnwatch concerned about imports into Finland of unethical produce. In a September 18 video now on YouTube, Finnwatch executive director Sonja Vartiala said: "The legal process [in Thailand] is a farce. Natural Fruit is suspected of serious human rights violations. It's the company's managers and not Andy Hall who should be facing the threat of a trial". She called for the EU to pressure Thailand to properly enforce labor rights for all workers. Swiss Nestle to Open a Factory in Burma, State Agency says Giant processed foods company Nestle has established a subsidiary in Burma and will soon build a production factory in the country, according to the Directorate of Investment and Company Administration (DICA). Nestle Myanmar was formed on September 16, said DICA quoted by Eleven Media. The Switzerland-based giant produces such internationally renowned brands as Nescafe instant coffee, Kit Kat chocolate biscuit, and Maggi soups and sauces. The firm also produces baby foods, numerous snack products, and breakfast cereals, but it's not clear yet which will be produced in Burma. DICA also said South Korean industrial conglomerate SK Group has entered the Burma market by setting up a construction industry subsidiary, SK Group Construction Myanmar. US, Indian Oil Firms to Explore Bangladesh Seas adjacent to Burma The Bangladesh government is to award three offshore blocks in the Bay of Bengal this month to ConocoPhillips of the US and India's Oil and Natural Gas Corporation (ONGC), Dhaka newspapers said. The two firms were the only bidders for the blocks which were among 12 offered by the government in December of 2012. No bids for the other nine blocks were received. The two firms secured a concession allowing them to sell up to 50% of any production to third parties without reference to the state oil and gas firm Petrobangla, said The Star newspaper. ConocoPhillips will get block 7, while ONGC will take blocks 4 and 9, the paper said. ONGC is a partner in the development of Burma's Shwe gas field in the Bay of Bengal, where the two neighbors had a naval confrontation in 2008 before their joint sea border was finalised following UN arbitration. The post Burma Business Roundup (September 21) appeared first on The Irrawaddy Magazine.

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• Central Bank Confirms $7.6B in Burmese Funds Held in Overseas Accounts
• International Herald Tribune to Be Printed in Rangoon for the First Time
• Nissan to Produce 10,000 Cars a Year in Burma
• NGO to Cut Rations for ‘Self-Reliant Refugees’ on Thai-Burma Border
• ‘Smarter’ National ID Cards in the Pipeline
• Foreign Investment in Burma Surges, Office Rents Sizzle
• Rangoon’s Sedona Hotel Investigating Alleged Secret-Camera Footage
• Burma to Sign Convention on Child Labor
• Burma’s Police, Farmers Clash as Six Charged for Trespassing on Confiscated Farmland
• US Welcomes Burma Signing Nuclear Agreement
• The Power Behind the Robe
• EU, Singapore Conclude Far-Reaching Trade Deal
• Diplomatic Tension Over Hong Kong Exposes Fragility of Hopes for Democracy
• Philippine President Calls on Rebels to Surrender

Central Bank Confirms $7.6B in Burmese Funds Held in Overseas Accounts Posted: 20 Sep 2013 07:13 AM PDT A US $100 dollar bill sits beside the kyat equivalent. (Photo: Giles Orr) NAYPYIDAW — Burma's Central Bank chairman confirmed recent claims that the government holds billions of dollars of foreign reserves in overseas bank accounts. He said on Friday that a total US $7.6 billion was kept offshore by Burmese state-owned and private banks. Central Bank Chairman Kyaw Kyaw Maung, President's Office Minister Soe Thein and Deputy Energy Minister Myint Zaw held a general press conference in Naypyidaw on Friday morning. Asked by The Irrawaddy about recent reports that claimed that the government held up to $11 billion in several bank accounts in Singapore, Kyaw Kyaw Maung said the claims were partially true. "We only keep $7.6 billion [abroad] legally," he told reporters. "These are foreign exchange reserves; it includes national [government] budget funds as well as privately-held accounts." "We use it when needed," the bank chairman said, adding, "We don't know about the $11 billion that people are talking about." Kyaw Kyaw Maung declined to specify in which offshore locations and banks the $7.6 billion in Burmese funds were held. He also failed to clarify exactly how much of these funds were government-owned and how much was in private company hands. The Central Bank, the Myanma Foreign Trade Bank and the Myanma Investment and Commercial Bank, are among the government institutions that have overseas foreign reserves, Kyaw Kyaw Maung said, adding that several private Burmese banks also owned part of the $7.6 billion. Deputy Energy Minister Myint Zaw denied past claims made by international non-government organizations (NGOs) that the overseas billions had been generated from the export of Burma's natural gas. Last week, Jelson Garcia, Asia Program Manager with the Banking Information Center (BIC), said World Bank, Asian Development Bank (ADB) and International Monetary Fund officials informed him in 2012 that Burma's government held up to $11 billion in several Singaporean bank accounts. "These were estimates given to us […] I drew it from our meetings with the WB and ADB staff," Garcia told The Irrawaddy on Sept. 13. He said ADB staff told him that Burmese government officials had disclosed to ADB the existence of an estimated $7 billion in government funds in Singaporean banks. According to Garcia, ADB officials considered Naypyidaw's decision to lift the secrecy surrounding these accounts "encouraging." BIC, a US-based non-profit organization, monitors international financial institutions like the ADB and the World Bank, which have recently begun reengagement with Burma, after President Thein Sein's government announced wide-ranging political and economic reforms. Earth Rights International (ERI) has said that the billions of dollars in Singapore were stashed there by Burma's former military junta, which for many years earned hundreds of millions of dollars annually from natural gas exports, much of which was siphoned off and pocketed by members of the regime. In 2009, ERI claimed to have received evidence showing that the military regime had excluded almost $5 billion in revenues—generated from the Yadana Gas project operated by oil giants Total and Chevron—from the country's national budget. An ERI investigation found that the funds had been parked in two Singapore-based banks—the Overseas Chinese Banking Corporation and DBS Group—which functioned as "offshore repositories." The banks have denied the allegations. The post Central Bank Confirms $7.6B in Burmese Funds Held in Overseas Accounts appeared first on The Irrawaddy Magazine.

International Herald Tribune to Be Printed in Rangoon for the First Time Posted: 20 Sep 2013 06:29 AM PDT Myo Aung holds a test-run copy of the International Herald Tribune printed in Rangoon on Thursday. (Picture: JPaing / The Irrawaddy) RANGOON — In other parts of the world, people read the International Herald Tribune (IHT) over their morning coffee. The paper's subscribers in Burma's former capital, however, usually get their daily delivery after lunch, and sometimes later. But when printing of the paper begins in Rangoon on Monday next week, the readers of the global edition of the New York Times in the Southeast Asian country's financial hub will no longer need to be patient. "Readers here will be able to enjoy IHT at their breakfast time starting from Sept. 23," said Myo Aung, the owner of Success International Publisher's Distributor Co., Ltd., which has the permission from the IHT's parent company, as well as the Burmese government, to print and distribute the paper six days a week in Burma. "As far as I'm concerned, it will become the very first international newspaper printed and distributed here." The IHT has more than a dozen printing-sites across Asia, and Burma is the latest. "Printed in Myanmar" will be clearly printed on the front page. Myo Aung has distributed the IHT in Burma since 1994 by buying the papers at wholesale price and selling them at retail price in the country. Every morning he has had to ship the papers printed in Bangkok via airlines. Customs procedure at Rangoon airport, fight delays and daily submission to the now-defunct Literary Scrutiny Board for distribution approval in the past made it impossible for Myo Aung to provide a morning delivery to his subscribers. "Now, with printing here, we don't need to think about [those problems]," he told the Irrawaddy before adding that subscribers in Rangoon will get early morning delivery while those in Naypyidaw, the country's capital, and Mandalay, the second biggest city, will have noon deliveries. He said the paper printed in Rangoon will not be much different from its counterparts in other countries, except it will not be in color. The IHT printed in neighboring Bangladesh is also in black and white due to technical difficulties. "But the content is the same," he said. The owner explained that not printing in color also has an upside because it will save some production costs, making the price cheaper than the current newsstand price—US$4.50 per copy. The exact cost of the Rangoon-printed edition has not yet been set. With diplomats, international organizations, executives and hotels on his subscriber list, Myo Aung said the IHT printed in Rangoon will first go to subscribers and then hit Burma's newsstands in places frequented by foreigners. Currently, the IHT is only available to subscribers. "Telling you the truth, we don't have much circulation like other dailies published in Burma today," he said. "It's risky, but, with a rise in subscriber numbers, we, hopefully, will be alright." He also noted that the IHT has announced that it will change its name globally from the International Herald Tribune to 'International New York Times' on Oct. 15, and plans to insert a Burma focus section later. With the demise of the Literary Scrutiny Board, Myo Aung said, he hopes he will not face many challenges nowadays. There were some days in the past that his crew could not deliver the IHT in Burma until about 7 p.m., if a critical story on events in Burma caught the eye of the censors, he said. If the officials decided a story was not suitable for Burmese eyes, it would be cut out of each copy by hand, Myo Aung said. When negative Burma news made the front page, the whole paper was banned. "All I could do was apologize to the subscribers," he recounted. "Thank God, many of them were foreigners who understood about the literary censorship here." But, Myo Aung admits, there remains a challenge: frequent Internet blackouts in Burma, a country that is infamous for its snail's-pace Internet connections. Every day, he will have to download the whole newspaper in a PDF format before it goes to the printer, any interruption to the connection would be big trouble for him. "It gives me a serious headache," he said. "If the Internet is totally down, I will have to ship the papers from Bangkok and distribute them, but it will make delivery one day later." Win Tin, a veteran journalist and one of the founders of the Burma's opposition National League for Democracy, said he welcomes the printing of the IHT in Burma. The 83-year old said he personally likes to read newspapers in print because the Internet is beyond him. "It will be good for anyone who wants to learn about what is happening in the world today, for IHT has good coverage on international affairs," Win Tin said. "But being an international newspaper, I think the price per copy will not be that cheap." The post International Herald Tribune to Be Printed in Rangoon for the First Time appeared first on The Irrawaddy Magazine.

Nissan to Produce 10,000 Cars a Year in Burma Posted: 20 Sep 2013 06:04 AM PDT Nissan Motor Company’s logo is seen at a reception with shareholders after the general shareholders’ meeting in Yokohama, south of Tokyo, June 25, 2013. (Photo: Reuters) TOKYO — Nissan Motor Company will start complete knock down production of the Sunny sedan in Burma with a Malaysian partner in 2015, it said on Friday, becoming the first major global carmaker to assemble cars in the Southeast Asian country. Nissan’s Malaysian partner Tan Chong Motor Holdings Bhd will build a plant in the Pegu Division, some 70 km (43 miles) northeast of Burma's biggest city, Burma, with an annual capacity of over 10,000 vehicles, Nissan said in a statement. "We are confident that Myanmar will be an important economic engine for the region and are committed to help develop its automotive industry," said Nissan Chief Executive Officer Carlos Ghosn in the statement. The companies will use parts sourced from Thailand, India, China and Japan as well as by local suppliers, Nissan spokesman Chris Keeffe said. Global carmakers are rushing to set up in the Myanmar, which until recently was under international economic sanctions. Earlier this year, Japan’s Suzuki Motor Corp, a smaller carmaker, resumed production of vehicles in Burma for the first time in three years, manufacturing about 100 small trucks a month. In July, Nissan and Tan Chong Motor opened Nissan's first showroom in Burma, where they sell a pickup truck and a commercial van as well as provide after service and spare parts. The post Nissan to Produce 10,000 Cars a Year in Burma appeared first on The Irrawaddy Magazine.

NGO to Cut Rations for ‘Self-Reliant Refugees’ on Thai-Burma Border Posted: 20 Sep 2013 05:16 AM PDT Bamboo huts with leaf roofs, built by refugees, dot the hills of Mae La Oon camp southwest of Mae Sariang in northern Thailand. (Photo: Dieter Telemans / TBC) RANGOON — Rice rations for many of the more than 120,000 Burmese refugees living on the Thai-Burma border will be reduced, due to a reduction in funding for a humanitarian organization that has provided food for them for more than two decades. The Border Consortium (TBC) says its funding for humanitarian work has dropped as donors redirect their funds to programs preparing for the return of refugees to Burma. "However, donors are continuing substantial funding to humanitarian aid and making sure refugees continue to receive a standard ration while making sure the most vulnerable receive extra and children see no reduction," TBC spokesman Mike Bruce told The Irrawaddy on Friday. TBC announced this week that less rice would be provided for some households beginning with December's food rations, which are distributed in late November, but that rations would not be reduced for children under the age of 18. Under the revised rice rations plan, households are categorized according to their level of need, with four groups: self-reliant, standard, vulnerable and most vulnerable. Self-reliant households will see a cut in rice rations for adults. "In order to ensure that the community's basic needs are met, TBC is continuing to maintain a standard monthly ration while introducing four staged levels of assistance," TBC executive director Sally Thompson said. "People who are in need of extra assistance may receive an increase in their rations." TBC added that ration changes were not intended to promote an early return to Burma. "It is important to note that, currently, the refugee community, the Royal Thai Government, the Government of the Republic of the Union of Myanmar and UNHCR [the UN refugee agency] all agree that conditions do not yet exist for an organized return," Thompson said. TBC also said no changes in rations were being made at refugee camps in Ban Mae Surin and Ban Don Yang, among nine refugee camps on the Thai-Burma border. A fire at the Ban Mae Surin camp this year destroyed most of the property of residents there. "The two camps that are not being reduced overall are assessed as highly vulnerable. One is still recovering from the fire in March, while the other is very isolated and has limited opportunities for livelihood programs and activities," said Bruce. He said TBC was concerned about the refugees and working to ensure that all households were aware of the changes in rations so they would have time to prepare. TBC and other NGOs are currently working in the camps to offer a variety of income, employment and skills training programs. "In order to give the community more experience in managing their food supply, TBC is also introducing community-managed targeting. This means that the camp community, not TBC, will determine which level of assistance each household qualifies for," said Thompson. Currently, the standard ration of rice is 12 kilograms per month for adults. The standard ration is being changed to 8, 10, or 12 kilograms, depending on need. Refugees also receive yellow split peas, vegetable oil, vitamin and mineral-fortified flour, fish paste, iodized salt and charcoal, none of which will be affected by the ration changes. As of July 30, 129,787 people were living in refugee camps on the border, according to TBC. The post NGO to Cut Rations for 'Self-Reliant Refugees' on Thai-Burma Border appeared first on The Irrawaddy Magazine.

‘Smarter’ National ID Cards in the Pipeline Posted: 20 Sep 2013 04:59 AM PDT Burma's government plans to replace the National Registration Card, seen here, with digital ID cards. (Photo: The Irrawaddy) Government plans to substitute the current paper National Registration Card issued to Burmese citizens with a "smarter" digital identification card remain on the books, but cost concerns and the nation's underdeveloped infrastructure are holding back a rollout. Tin Chil, a director at the Ministry of Immigration and Population (MIP), told The Irrawaddy on Thursday that foreign companies from Thailand, Japan, China and Korea were in talks with the Burmese government about the plan. "The current citizenship scrutiny card was issued according to the Myanmar Citizenship Law, which was enacted in 1982 and really needs a replacement in line with international standards," he said. He added that MIP Minister Khin Yi was eager to implement the plan but remained mindful of budget constraints and logistical considerations such as the country's notoriously slow Internet connections and unreliable electricity, which would hamper nationwide issuance of the cards. Affordability for the average citizen is also a concern in one of Asia's most impoverished nations. "We need to consider those who cannot afford the current citizenship scrutiny card, which only costs about six kyats [less than 1 US cent, not including photo costs]," he said, adding that a smart card would cost at least US$1 (about 1,000 kyats). National Registration Cards, also known as citizenship scrutiny cards, are issued to Burmese nationals by MIP's Immigration and National Registration Department. A special committee was formed in 2011 to issue the cards and household registration certificates under the Moe Pwint ("snowflakes" in the Burmese language) Project, which aimed to accelerate issuances to the country's poorly documented citizenry. According to MIP data, nearly 487,000 household registration certificates and about 3.5 million National Registration Cards were issued through May of this year under the Moe Pwint Project. The current national registration card, printed on pink paper, includes the holder's photo, signature, a fingerprint of the left thumb and other personal data. "This ID card is easily damaged because it is made of paper and it is not made with secure technology so it is difficult to check whether it is valid or not. So it is really necessary to change to a smart card," 20-year-old Burmese national Aye Thandar said while holding her flimsy ID card. The post 'Smarter' National ID Cards in the Pipeline appeared first on The Irrawaddy Magazine.

Foreign Investment in Burma Surges, Office Rents Sizzle Posted: 20 Sep 2013 04:45 AM PDT Rangoon's landmark Shwedagon Pagoda can be seen in the distance from a Yadanar Myaing construction site on the Kandawgyi ring road. (Photo: JPaing / The Irrawaddy) RANGOON — Burma has approved more foreign direct investment in the past five months than all of last year, but companies setting up operations in the hot frontier market face a growing problem: Southeast Asia’s highest office rental rates. Burma has approved FDI projects worth more than $1.8 billion from the start of the fiscal year on April 1 to the end of August, compared with $1.4 billion in the whole previous fiscal year, Aung Naing Oo, a director general at the Ministry of National Planning and Economic Development, told Reuters. But he said he fears potential foreign investors will be turned away by a severe shortage of office rental space. The wave of investment comes as Burma’s quasi-civilian government implements political and economic reforms, initiated two years ago by President Thein Sein, a former general who led the country out 49 years of military rule and global isolation. The European Union agreed in April to lift all sanctions on Burma, while the United States suspended sanctions in May last year and allowed U.S. companies to invest through a general license. Some American executives have urged Washington to go further and lift sanctions entirely. Most of the approved FDI came from other Asian nations, said Aung Naing Oo. "Malaysia, which brought about $500 million for manufacturing Nissan cars, is the biggest investor during this fiscal (year) in terms of size followed by Hong Kong and South Korea, who injected funds in the garment industry," he said. Nissan Motor Co plans to start a complete knock down production of its cars in Burma with a Malaysian partner Tan Chong Motor Holdings Bhd, the Japanese automaker said on Friday, becoming the first major global carmaker to be assembling cars in the Southeast Asian country. The rising tide of foreign investment is fuelling a property boom in the commercial capital Rangoon with the increasing demand for rental space feeding the highest office rental rates of any Southeast Asian city, according to real-estate firm Colliers International, which opened a branch in Rangoon in July. Colliers put the average rental rate in Rangoon at nearly $80 per square meter, compared to about $25 in Bangkok and $30 in Hanoi. At about $70 per square meter, even the affluent city-state of Singapore doesn’t match Rangoon, it said. Scipio Services, a Rangoon-based firm that helps foreign companies establish themselves in Burma, puts prime office rental rates even higher. According to their survey, commercial spaces in the few business towers available jumped from $50 per square meter in mid-2011 to as much as $90 by May this year. Skeletal Staff Some companies choose to rent houses and villas in lieu of office space, said Brett Miller, Scipio Services’ managing director. But residential rates have also shot up, with villas ranging in price from $4,000 per month to $25,000, he said. As a result, some companies "are coming in with a small footprint," stationing only skeleton staff in the country, he said. Other companies base executives in neighboring Thailand and fly them to Rangoon where they stay at hotels, said Tony Picon, Colliers’ managing director in Burma. "I call them the ‘half-pats’, spending around half their time in Rangoon," he said. Aung Naing Oo said the government is taking measures to increase the supply of rental space. "To solve the problem of the shortage of hotel and office apartments, we are now encouraging investors in these sectors by approving their proposals very speedily," he said. Drastic rises in property prices are being driven partly by land speculators. Miller at Scipio Services said the government could implement a "holding tax" that would encourage landowners to either build on a property or sell it to a developer. Picon, however, was skeptical the government could enforce compliance. "For tax on unused land, the owner could build something small and say the land is being used," he said. "Overall I find using tax often counterproductive especially when you have limited capacity within government to enforce laws." The post Foreign Investment in Burma Surges, Office Rents Sizzle appeared first on The Irrawaddy Magazine.

Rangoon’s Sedona Hotel Investigating Alleged Secret-Camera Footage Posted: 20 Sep 2013 04:30 AM PDT A view of the Sedona Hotel in Rangoon on the website of Singapore-based Kepple Land. (Photo: Kepple Land) RANGOON — One of Rangoon's high-end hotels has launched an internal investigation after video clips spread on Facebook purporting to be secret-camera footage shot in one of the hotel's rooms. The murky black-and-white video clips posted on blogs and linked to on the social networking site Thursday, and showed an obscured view of an amorous couple in what appears to be a hotel room. The Sedona Hotel was named online as the venue for the scene. The video has been widely shared and reported in local media, with concerns raised that the privacy of guests at the hotel may have been breached. A staff member at the front office of the hotel—a luxury complex near Rangoon's Inya lake—said Friday that the hotel's management was looking into whether the clip was filmed in one of the Sedona's rooms. "We're now internally investigating in the hotel whether those files are from here or not. We will hold a press conference for the public to know as soon as possible," said the staff member, who spoke on the condition of anonymity because she was not allowed to speak with reporters. An urgent meeting was held in the hotel on Thursday, she said, adding that business was going on as usual within the Sedona, a five-star hotel owned by Singapore-based Kepple Land. "What I can say is we're checking now," the staff member said. In a news report on the videos, the Burmese-language newspaper Eleven Weekly quoted a security guard at the hotel denying rumors that the video clips, taken from large file posted online, were discovered on the hotel's own website by hackers. The security guard said it was possible a secret camera may have been installed in one of the Sedona's rooms, but he said the hotel's staff had not placed it there, according to the report. Soe Thura, a public relations officer with an advertising company in Rangoon, suggested the video may have been faked in an attempt to smear the hotel. "I checked some websites that I heard such video files are already posted on. All of them are fake," he said. "It's unlikely it happened inside the hotel." The video sparked speculation about who was featured in the clips. In the past, Burmese film and music stars have appeared in sex tapes posted online. But regular Facebook user Ko Thura said he was unable to watch it. "It's a big file, I can't even download it because I heard it is 10 hours of video clips, and involves some famous people in the country," he said. The post Rangoon's Sedona Hotel Investigating Alleged Secret-Camera Footage appeared first on The Irrawaddy Magazine.

Burma to Sign Convention on Child Labor Posted: 20 Sep 2013 03:49 AM PDT A young boy minds the family business in central Rangoon. (Photo: Steve Tickner / The Irrawaddy) RANGOON — Burma will sign an agreement next month with the International Labor Organization (ILO) to work toward the elimination of child labor in the country. It will be the first time that the Southeast Asian country has signed an ILO convention on child labor. "The government of Myanmar has announced its intention to ratify ILO Convention 182 on the worst form of child labor," Steve Marshall, the ILO liaison officer in Rangoon, told The Irrawaddy this week. The ILO defines the "worst form of child labor" as work that can have a lasting impact on a child's mental or physical development. "As part of its policy commitment, the government would reconfirm that such work is considered illegal and would work, with support from the ILO and others, to prevent it from happening, to remove children from such work and to hold perpetrators accountable," Marshall said. Child labor is a major problem in Burma, which is emerging from five decades of military dictatorship that wrecked the economy and the education system, encouraging many children to help their families by taking jobs in teashops or factories. Children have long been exploited as part of labor pools both at home and abroad, working for a pittance and receiving few social protections, labor activists and community leaders say. The ILO is also collaborating with the government to stop a second category of child labor that includes children who, for whatever reason, have fallen out of the education system and are required to work, often to help support themselves and their families. "The government, again supported by the ILO and others, is already working to put in place the necessary policies and structures to address this issue—this includes moving on regulatory reform and budgetary revision, initiating necessary economic reforms to stimulate growth and reduce poverty, strengthening the education system, and the introduction of a protection floor principle toward providing baseline support for the most vulnerable in society," Marshall said. Thet Thet Aung, a leading labor activist from the 88 Generation Peace and Open Society, said, "There is child labor in our country because our country is a nation of poverty." "Child labor starts when families can't get enough food. Children are supposed to study, but they cannot go to school because they need to work to help their families." In Burma, it is illegal to employ children less than 15 of age, and according to the colonial-era Factory Act, employees from 15 to 18 years old can work no more than four hours a day. However, few underage workers benefit from protections stipulated in the legislation, and youth laborers are routinely forced to work more than the statutorily mandated limit. Thet Thet Aung says that according to the 1951 labor law, children between the ages of 13 and 15 can also legally work for eight hours daily after receiving a doctor's note saying they are in good health. "I think 13 years old is too young," she said. "Let's set a limit of four hours of working a day for them. The rest of the time, give an education to those who are interested in studying, or let them learn technical skills so they can advance their future careers." Many children from townships outside Rangoon travel to the commercial capital to find employment. Among them is 13-old Myo Maung, who works at a teashop in Rangoon's Bahan Township, earning just 20,000 kyats (US$20) monthly. "Families need support so they can have enough food, as our country works to eradicate poverty," Thet Thet Aung said. "If we do not provide for families, we will have problems, and children will be forced to take bad jobs, perhaps working at brothels. "First I want the government to offer good protection for children. Second, I want the government to give them time to study and pursue a proper career." The post Burma to Sign Convention on Child Labor appeared first on The Irrawaddy Magazine.

Burma’s Police, Farmers Clash as Six Charged for Trespassing on Confiscated Farmland Posted: 20 Sep 2013 03:22 AM PDT Burmese police officers are seen at Rangoon International Airport last month. (Photo: JPaing / The Irrawaddy) Burma's police and farmers in Naypyidaw's Popathiri Township clashed early Thursday morning when police raided homes of residents, who are demanding they be allowed to return to farmland confiscated by the Ministry of Information (MOI). Trespassing charges have been filed against six leaders of the residents, who are now in hiding. The six escaped arrest as angry residents of Weigyi village detained almost 30 police officers and allegedly injured seven police. The residents were forced off some 500 acres of farmland in nearby Zayyathiri Township in 2006 to make way for the offices of state-owned newspapers. Following complaints from the farmers over the confiscation of their land and the lack of compensation, the MOI's News and Periodicals Enterprise—which publishes the New Light of Myanmar, Myanma Alin, and Kye Mon newspaper—last month started paying compensation to those farmers who did not get compensation seven years ago. But some are not accepting the compensation. Instead, they demand the return of the land left over after the construction of the newspaper offices, which they say cover only about one-fifth of the total area confiscated. Earlier this week, about 40 farmers entered the land, cut down some of the eucalyptus trees planted there and began plowing. Then, in the early hours Thursday, about 40 police from Zayyathiri and Popathiri townships, led by police Major Kyaw Myo, descended on Weigyi. Zaw Latt, a local National League for Democracy member, said police came to his home demanding to see his household registration documents at 1:30 a.m. "They stepped on my neck and handcuffed me," he said. "They harassed my wife and slapped my 11 years old daughter, who is just a fifth grade student." Zaw Latt said the police left him handcuffed in his home, and said he did not see exactly what happened next. “There were clashes after the villagers came, but I was in the house with handcuff and I did not see whether the police are beaten by the villagers or they beat themselves," he said. Police also entered the homes of residents Htun Htun, Win Hlaing and Win Shwe, according to Zaw Latt. Police later filed charges against the three, as well as Zaw Latt and two female residents, Win Kyi and Khin Aye. Ko Zaw, a Weigyi resident, told The Irrawaddy the villagers, angry about the raid, surrounded police. The villagers detained some 27 police until more police came sometime before dawn, when they were let go, Ko Zaw said. Bo Han, the police captain of Shwetwingone police station in Zayyathiri Township, told The Irrawaddy the raid and the arrests were triggered by a trespassing complaint from the state-run newspapers. "There were some 30 to 40 villagers, but we cannot arrest all of them, so we picked their leaders—four men and two women," Bo Han said. He said villagers clashed violently with police, and seven officers from the Kyitaukkhan, Zayyathiri, and Shwetwingone townships were wounded. "Five of them are severely wounded on their heads and are now at the Naypyidaw Hospital," Bo Han said. The villagers said the police had no arrest warrant when they attempted to arrest them during the night, but the police say they do not need the court warrant to make arrests in such a case. Ye Htut, the deputy information minister, told The Irrawaddy on Thursday that the local News and Periodicals Enterprise director had been dealing with the issue since he received complaints from the farmers. Ye Htut insisted compensation was paid at the time the land was seized, and additional compensation of between 250,000 to 500,000 kyat, or US$260 to $520, had been accepted by more than half of the farmers. He said the demands of the residents could not be met. "As the newspaper building is already built and we have eucalyptus trees on the remaining areas," they can't have the land back, Ye Htut said. "We explained to them that accepting compensation is the only way to solve it." The post Burma's Police, Farmers Clash as Six Charged for Trespassing on Confiscated Farmland appeared first on The Irrawaddy Magazine.

US Welcomes Burma Signing Nuclear Agreement Posted: 20 Sep 2013 12:15 AM PDT Burma President Thein Sein attends a town hall event in Washington on May 19, 2013. (Photo: Reuters / Yuri Gripas) WASHINGTON — The United States on Thursday welcomed Burma's signing of an agreement with the UN atomic watchdog that will require it to declare any nuclear activities and allow inspections—the latest step by the former pariah nation toward openness. But citing concern about human rights abuses and ties with North Korea, Republican lawmakers said it is premature to deepen US ties with Burma's powerful military. The Obama administration has moved rapidly to ease sanctions against Burma as it has undertaken democratic reforms after decades of repressive military rule. The engagement policy has been motivated partly by a desire to cut the military ties that the former ruling junta forged with North Korea. On Tuesday, Burma took a step long urged by Washington: the signing of the International Atomic Energy Agency's Additional Protocol to its existing safeguards agreements. That could help address lingering suspicions that the secretive junta may have pursued a nuclear weapons program. The State Department said Thursday the protocol would help move the country "increasingly in line with international nonproliferation norms and standards." Independent nonproliferation experts also welcomed the signing as a promising step, but said it could take several years for Burma to ratify and bring the agreement into force. Robert Kelley, a former US government nuclear expert, said that under the agreement the onus is on the nation itself to declare any nuclear activities, peaceful or otherwise, which would then be open for inspection. Burma's previous agreement with the IAEA required little disclosure, and Burma was unresponsive when the Vienna-based agency in late 2010 sought an inspection. Burma denies seeking nuclear weapons, and in 2011 declared it had halted long-stalled plans to obtain a research reactor from Russia. About seven years ago, Burma reportedly acquired precision machinery from Germany, Switzerland and Singapore that defectors and some analysts concluded were part of a half-baked attempt to make equipment for enriching uranium, although other experts disputed that conclusion. Defectors also reported Burma was mining uranium and converting it into oxides and yellowcake. Kelley, who has researched Burma's alleged nuclear aspirations, said he believed the junta unsuccessfully pursued a nuclear program. He said he never found any evidence of nuclear links with North Korea. US officials have been more concerned about Burma's purchases from North Korea of missiles and other military equipment. Conventional weapons are beyond the remit of the newly signed agreement, although such trade with North Korea is prohibited under UN Security Council resolutions. At a congressional hearing on Burma, Republican lawmakers accused the Obama administration of moving too fast in seeking military cooperation. Defense Secretary Chuck Hagel briefly met his Burmese counterpart last month, but active cooperation between the militaries has gone little beyond discussions on rule of law and human rights. Still, Rep. Steve Chabot, the republican chairman of a House panel that oversees foreign policy toward East Asia, said the administration has turned a blind eye to congressional concerns. Another Republican, Rep. George Holding, said, "Before we move any closer in military-to-military cooperation, we need to ensure that the Burmese military does not have excessive ties with China and North Korea or [that] those ties are severed." Rep. Dana Rohrabacher, a Republican, accused Burma's military of launching air strikes on ethnic minority groups, which he said was evidence that despite reforms, "the repression of peoples in Burma continues." The post US Welcomes Burma Signing Nuclear Agreement appeared first on The Irrawaddy Magazine.

The Power Behind the Robe Posted: 19 Sep 2013 11:06 PM PDT In this cover story first appeared in the October, 2007 print issue of The Irrawaddy magazine, the editor explained why Burma's general fear the influence of the Sangha. The Lord Buddha shunned worldly affairs, but in his teachings he stressed the need for good governance and good rulers in the practice of politics. The Buddha said: "When the ruler of a country is just and good, the ministers become just and good; when the ministers are just and good, the higher officials become just and good; when the higher officials are just and good, the rank and file become just and good; when the rank and file become just and good, the people become just and good." If these admonitions are followed by the large community of monks—the Sangha—in predominantly Buddhist Burma, the lingering "love lost" relationship between the country's military rulers and its monks should be no surprise. Over the last two decades, Burma's Sangha community, officially estimated to number around 400,000, has had an uneasy relationship with the ruling generals, who have imprisoned several prominent, politically active monks or pongyis. It is estimated that since the present military regime came to power in 1988, about 300 monks have been defrocked and sentenced to long terms of imprisonment. Monks, considered "sons of Buddha," are the biggest institution in Burma after the armed forces, which number more than 400,000 soldiers and police. In their close contacts with the common people and during their morning alms rounds of local households, the monks witness firsthand the suffering and poverty of ordinary Burmese citizens. They have a very clear picture of the deteriorating situation in Burma. More importantly, they probably have a better network, connections and influence than politically active students, who are constantly watched, imprisoned or forced into exile. Who could imagine that these monks, living quietly in monasteries and studying Dhamma, would ever plan to rebel against the repressive regime? Yet history has shown that monks have long played a pivotal role in politics and that they would indeed dare such a bold and dangerous undertaking. The role of political pongyis is controversial and potentially threatening to the ruling elite, although there has been a continuing debate on whether monks really should involve themselves in politics. The Early Rebellion Monks were involved in early outbreaks of resistance against British colonization, joining lay people in taking up arms against the British after seeing King Thibaw sent into exile. Monks have their resistance martyrs—U Ottama, for instance, who led 3,000 rebels in the Salin area a year after the invasion of Mandalay. The rebel monk, also known as Bo Ottama, was captured and hanged by the British in 1889. Interestingly, historians noted that monks who took up arms voluntarily defrocked themselves first, following the precept forbidding monks to take lives. Another martyr, Saya San, who was  an ex-monk, led a peasant uprising in Tharrawaddy opposing the tax system imposed by the British. Burma's colonial masters sent 10,000 troops to quell the rebellion, capturing Saya San and sending him, too, to the gallows. One of the top Burmese lawyers who defended Saya San at his trial was Dr Ba Maw, who later became head of state in Burma's Japanese-backed government. Not all monks advocated armed struggle. Two who preached nonviolent resistance, U Wisara and another monk named U Ottama, spent many years in prison for their opposition to colonialism and their names have joined the list of independence heroes. U Ottama, a globe-trotting, well-respected monk from Arakan State, was a powerful speaker whose calls for independence were featured in the national newspaper Thuriya. He once famously told the British Governor Sir Reginald Craddock to go home to Britain, in a speech that landed him in prison. Like U Ottama, U Wisara was imprisoned several times for his public speeches and died in jail in 1929 after 166 days of a hunger strike. His prison sentences included terms of hard labor, and he was also defrocked. Both monks became an inspiration to activists and students involved in the independence movement. Scholar Michael Mendelson wrote in his "Sangha and State in Burma," that all politically active monks tended to be labeled by the colonial authorities as "political agitators in the yellow robes." Interestingly, a similar term is used by Burma's current leaders to describe protesting monks. Historians wrote that the British authorities were surprised to learn the influential role of the Sangha community, and soon after the invasion of 1885 they abolished the position of "Supreme Patriarch," or Thathana-baing. In former times, Burmese kings appointed Thathana-baing to govern the Sangha community and made them responsible for doctrinal instruction and discipline of all monks. But the position wasn't accepted by the entire Sangha. The progressive Shwegin sect was one group that rejected it. Sectarianism created controversy and bitter rivalry among monks. During the Kon-Baung period in the 18th century, conflicts arose within the Sangha over how the monastic robes were supposed to be worn, and two conflicting sects arose—the so-called Ton Gaing and Yon Gaing. The Burmese scholar Tin Maung Maung Than records that the Toun-goo and early Kon-Baung dynasties were drawn into the rivalry by their royal patronage of one party or the other. In 1782, King Bodawphaya intervened in the controversy by siding with Ton Gaing. One experienced colonial political officer, Col Edward Sladen, conversant with the power of the Sangha, advised British authorities to maintain the Thathana-baing system in order to head off conflicts in governing the predominately Buddhist country. The role of Thathana-baing was undoubtedly a complicated one, involving a direct link between the monarchy and the Sangha. The Thathana-baing wielded influence and could even intervene in state affairs. One respected abbot even persuaded King Mindon to abandon corvée labor for his irrigation projects. It's ironic that the current regime argues that forced labor is a feature of Burmese tradition and a means of making merit. After independence, however, the influence of Buddhism and the Sangha went into decline, except for a period under the late prime minister U Nu, a devout Buddhist. U Nu himself was ordained as a monk several times and rarely exploited Buddhism for his own political ends. Under his government, the Sixth Great Buddhist World Council was held in 1954, and he also created the Buddha Sasana Council. Tin Maung Maung Than noted in his book, "Sangha Reforms and Renewal of Sasana in Myanmar: Historical trends and Contemporary Practice": "Because of various Gaing and sectarianism U Nu failed to take effective reforms in spite of institutionalization of Buddhism within the state superstructure and notwithstanding the holding of the Sixth Buddhist Synod in 1954." U Nu also attempted to legalize Buddhism as the state religion in 1961. The attempt was considered to be a misguided policy, and it anyway failed to materialize as U Nu was ousted by Gen Ne Win one year later. Ne Win regarded monks as a potential opposition and he developed a different strategy to control them. In the mid-1960s, his regime called a Sangha conference to issue monks with identification cards. Young monks and abbots stayed away from the gathering. It wasn't until 1980 that Ne Win succeeded in containing the monks by establishing a "State Sangha Nayaka Committee," after a carefully orchestrated campaign to discredit the Sangha. Part of the campaign was to discredit a famous monk, Thein Phyu Sayadaw, who was accused of romantic involvement with a woman. He was defrocked. Before the campaign, intelligence officers and informants of the government infiltrated the temples as monks and gathered information about monks and abbots. Some well-known abbots, including Mahasi Sayadaw, an internationally respected monk who was invited by U Nu in 1947 to teach Vipassana meditation, were also targeted in the campaign. Anthropologist Gustaaf Houtmann wrote in his paper "Mental Culture in Burmese Crisis Politics" that the regime had "distributed leaflets accusing Mahasi of talking with the nat spirits, and it was claimed that the Tipitaka Mingun Sayadaw, Burma's top Buddhist scholar, had been involved in some unsavory incident two years after entering the monkhood." Both monks were victims of their refusal to cooperate with the regime. A number of scholars and historians noted, however, that some abbots accused and charged by the government were indeed involved in scandals and had romantic relationship with women or nuns. The regime's campaign sometimes took bizarre forms. Rumors were circulated, for instance, suggesting that one Rangoon monk, U Laba, was a cannibal. Several famous abbots were implicated in scandals and were either defrocked or fled to neighboring Thailand. Ne Win successfully launched a "Sangha reform"—also known as "Cleaning Up the Sangha." The government managed to get some recognition from elderly Buddhists by forming the Sangha Committee. But Ne Win did not pretend to be a devout Buddhist. He rarely participated in Sangha meetings and held few religious ceremonies during the 26 years of his rule. Unlike current leaders, he was rarely seen with monks. During the 1988 uprising, however, his government asked the Sangha Committee to help restore order, and senior monks appeared in live television broadcasts appealing to the public for calm. In August, 1988, days after the massacre in Rangoon, monks expressed sorrow for the loss of life, but—to the surprise of many—they also appealed to the regime to govern in accordance with the 10 duties prescribed for rulers of the people. The appeal failed to calm the public mood, but the message did remind many Burmese of the "10 duties of rulers"—the monks were telling Ne Win to be a good ruler. On August 30, the Working People's Daily reported: "1,500 members of the Sangha marched in procession through the Rangoon streets and gathered in front of the Rangoon General Hospital emergency ward, where they recited "Metta Sutta" in memory of rahans (monks), workers and students who fell in the struggle for democracy." Many young monks were among the demonstrators. For many Burmese, the struggle for democracy is not yet over and the discord between the Sangha and the ruling generals remains strong. Unlike Ne Win and U Nu, the generals who came to power in 1988 openly and audaciously schemed to buy off the Sangha community. They have also claimed to be protectors of the Sangha, although their motive is to gain political legitimacy. Aside from holding numerous merit-making ceremonies, offering hsoon and valuable gifts to monks, the military leaders are launching well-publicized pagoda restoration projects throughout Burma. Nevertheless, confrontations between rebellious monks and the authorities continue. In Mandalay in 1990, troops fired on the crowds, killing several people, including monks. Angered by the military's brutality, Mandalay monks began a patta ni kozana kan, refusing to accept alms from members of the armed forces and their families. The same action has now been taken by monks in several provinces after authorities beat protesting monks in Pakokka, central Burma. "Patta ni kozana kan" can be called in response to any one of eight offences, including vilifying or making insidious comparisons between monks, inciting dissension among monks or defaming Buddha, the Dhamma or the Sangha. A "patta ni kozana kan" campaign can be called off if the offended monks receive what they accept as a proper apology from the individuals or authorities involved. This procedure involves a ceremony held by at least four monks inside the Buddhist ordination hall, at which the boycott would be canceled. Some monks in Burma may believe that the "patta ni kozana kan" of 1990 is still in effect, since they haven't yet received any proper apology—only a harsh crackdown. At that time, monks refused to attend religious ceremonies held by military officials and family members. In one incident, the Mandalay Division commander at the time, Maj-Gen Tun Kyi, who later became trade minister, invited senior monks and abbots to attend a religious ceremony but no one showed up. Military leaders realized the seriousness of the boycott and decided to launch a crackdown. In Mandalay alone, more than 130 monasteries were raided and monks were defrocked and imprisoned. As many as 300 monks nationwide were defrocked and arrested. Former political prisoners recalled that monks who shared prison quarters with them continued to practice their faith despite being forced to wear prison uniforms and being officially stripped of their membership of the Sangha. Several monks, including the highly respected Thu Mingala, a Buddhist literature laureate, and at least eight other respected senior abbots, were arrested. Thu Mingala was sentenced to eight years imprisonment. Apart from being stripped of their robes, imprisoned monks in Mandalay were forced to wear white prison uniforms and were taunted with nicknames instead of being addressed with their true titles, according to former political prisoners. One year later, in 1991, the then head of the military junta, Snr-Gen Saw Maung, suffered a nervous breakdown and retired for health reasons. Buddhist Burmese still say this was punishment for his maltreatment of the monks. The 1990 crackdown divided the Sangha community.  The late Mingun Sayadaw, who was secretary of the State Sangha Maha Nayaka Committee, was ridiculed by young monks for not supporting the boycott campaign. He was at one time called "senior general Mingun Sayadaw," and when he visited one temple in Mandalay young monks reportedly saluted him. Today, while rebellious monks are prepared to go to prison, many senior monks and abbots are allowing themselves to become government tools by accepting gifts and large donations from the generals. By cuddling up to the ruling generals, these elderly abbots can no longer speak for the Sangha community at large, let alone comment on the suffering of the Burmese people. The divisions between abbots and young monks have inevitably widened. The generals, on the other hand, won't give up easily. In one spectacular bid to win the hearts and minds of the people, they borrowed a Buddha tooth relic from China and toured the country with it and also held a World Buddhist Summit. In 1999, military leaders renovated Shwedagon Pagoda, after the Htidaw, the sacred umbrella, had been removed amid reports of  minor local earthquakes. Local people said the spirits of Shwedagon had been upset with the removal of the Htidaw. Restoration of the pagoda complex did nothing to help the generals' image, though. The generals have also applied "divide and rule" strategies in dealing with the Sangha community and the opposition. In 1996, the regime accused the National League for Democracy of infiltrating the Sangha with the aim of committing subversive acts against the authorities. The generals obviously did not want to see opposition leader Aung San Suu Kyi developing too close a relationship with the monks. In an attempt to neutralize the political role of Suu Kyi, the government sent a famous,  London-based monk, Dr Rewatta Dhamma, to visit the detained opposition leader in 1995. Claiming to be a peace-broker between Suu Kyi and the generals, the monk shuttled between her and top leaders. But his mission failed and he returned to London. Skeptics believe the generals had merely used U Rewatta in a bid to persuade Suu Kyi to relinquish politics. Ironically, the regime leaders publicly accused Suu Kyi of being a communist and of sacrilege because she had said in a campaign speech that "any human being can become a Buddha in this life." Soon after her release from her first term of house arrest in 1995, Suu Kyi immediately traveled to Karen State, followed by infuriated intelligence officers. She went there to make an offering to "Thamanya Sayadaw." Traditionally, temples have provided hiding places for activists, and in 1988 monks offered shelter to fugitives from the intelligence authorities. At one time, the regime even placed restrictions on opposition members, preventing them from ordaining as monks. Like universities and schools, politically active monasteries are under heavy surveillance. The widely respected abbot Bhaddanta Vinaya, known as Thamanya  Sayadaw because he lived on Thamanya Hill, was involved in projects to help villagers in the area, work that was shunned by the generals. He was revered not only for the mystical powers he was said to possess, but also because of his refusal to kowtow to the regime leaders. He once famously refused to accept the gift of a luxury vehicle from the then powerful intelligence chief Gen Khin Nyunt. Khin Nyunt could not buy Thamanya. It may indeed be wrong to assume that Burma's regime leaders are devout Buddhists. The generals and their families seem to place more trust in astrology and numerology than in Buddhist ritual. They treasure white elephants and lucky charms and are constantly seeking advice from astrologers. Birds of a feather, such as the generals and their chief astrologers, not only flock together but fall together, too. Ne Win's family astrologer, Aung Pwint Khaung, was arrested in 2002 when the former dictator and his family were charged with high treason. Khin Nyunt's chief astrologer, Bodaw Than Hla, was imprisoned after the former Prime Minister and Military Intelligence chief was toppled in 2004. Many Burmese may find it hard to believe that their military leaders are actually preserving Buddhism. Even when they are building pagodas and erecting Buddha images, the projects are based on astrological predictions and readings. Who, for instance, advised Ne Win to ride a wooden horse on his aircraft and to ask the pilot to circle his birthplace nine times? Who advised him to issue banknotes in denominations of 45 and 90 kyat? Who advised Khin Nyunt to dress up in women's clothing, complete with the signature flower that Suu Kyi wears, in order to steal power from "the Lady"? Who told Than Shwe to move his capital to central Burma? It certainly wasn't a belief in Buddhist tenets. Nor does Buddhism permit the military to beat, defrock, imprison and kill monks. The decline of Buddhism and the rise of militarism in Burma are a source of concern for the people of Burma. Thus, it is no surprise to hear social critics and political pongyis maintain that the generals who kneel down before images of Buddha are the real threat to Buddhism and Dhamma. The post The Power Behind the Robe appeared first on The Irrawaddy Magazine.

EU, Singapore Conclude Far-Reaching Trade Deal Posted: 20 Sep 2013 12:05 AM PDT Skyscrapers of Singapore's central business district are pictured at dusk. (Photo: Reuters) BRUSSELS — The European Union and Singapore submitted for approval on Friday one of the world’s most comprehensive free trade agreements, which the EU sees as a stepping stone towards a wider deal with Southeast Asia. The chief negotiators of both sides presented the entire text of the agreement on Friday after initialing each page of the roughly 1,000-page document. Subject to approval in Singapore and by the 28 EU member states and the European Parliament, the agreement should enter into force in late 2014 or early 2015. Trade in goods between the two topped 52 billion euros (about US $70 billion) in 2012 and in services 28 billion euros ($38 billion) in 2011. Mutual investment has reached 190 billion euros ($256 billion). The European Union sees a free trade deal as opening the door to a deal with other members of the 10-nation Association of Southeast Asian Nations (Asean), which has set a goal of economic integration by 2015. The EU and Asean launched free trade talks in 2007, but abandoned them two years later, the EU choosing instead to conduct bilateral talks with individual members. The European Commission is already negotiating free trade accords with Malaysia and Vietnam and launched talks in March with Thailand. Singapore has a population of just 5 million people, against some 600 million for the whole of Asean, but accounts for about a third of all EU-Asean trade and more than 60 percent of all investment between the two regions. The deal goes beyond many other free trade accords in committing to open up public procurement, an area where the EU has many leading suppliers, and agreeing on technical standards in areas such motor vehicles, electronics and green technologies. For example, a car made according to EU standards will be accepted for sale in Singapore. The European Union also gains better protection of "geographical indications", region-specific products such as Parma ham or champagne. EU tariffs on virtually all items from Singapore will disappear over five years. Singapore has committed to its existing zero tariffs on EU imports. Singapore is likely to benefit from reduced tariffs for pharmaceutical and petrochemical products. In services, particularly financial, the agreement will ensure the right to sell directly or establish branches in each other’s markets and promises to provide greater transparency over the award of licenses. The post EU, Singapore Conclude Far-Reaching Trade Deal appeared first on The Irrawaddy Magazine.

Diplomatic Tension Over Hong Kong Exposes Fragility of Hopes for Democracy Posted: 19 Sep 2013 11:38 PM PDT Pro-democracy protesters, with Hong Kong colonial flags, chant slogans during a protest to demand universal suffrage. (Photo: Reuters / Tyrone Siu) HONG KONG — From China warning Western nations to stop meddling in Hong Kong to Communist Party-backed newspapers describing "plots" by foreign spies to seize the city, a growing row over electoral reform has exposed the fragility of hopes for full democracy. Hong Kong returned to Chinese rule in 1997 with wide-ranging autonomy, an independent judiciary and relatively free press under the formula of "one country, two systems"—along with an undated promise of full democracy, a subject never raised by the British during 150 years of colonial rule. The implications stretch beyond the shores of Hong Kong, a glamorous, free-wheeling global financial hub. The Hong Kong model has been held up by Beijing as a possible solution for self-ruled Taiwan, which China considers a breakaway province that must return to the fold, by force if necessary. Hong Kong elects its next leader in 2017 in what will be the most far-reaching version of democracy on Chinese soil. But Beijing's top representative in Hong Kong has ruled out open nominations for candidates, meaning he or she will be chosen by a committee stacked with Beijing loyalists. British Foreign Office minister Hugo Swire this week called for universal suffrage in the 2017 polls, saying Hong Kong people should get a genuine choice. China said it would not tolerate outside interference. Michael Davis, a constitutional law specialist at the University of Hong Kong, said foreign states had a legitimate interest in Hong Kong, noting how China had once courted international support for "one country, two systems." But Beijing, he said, was now suspicious of their motives. "At its heart it is a kind of insecurity," Davis said. "China is at that stage of development where it constantly attempts to edit inbound criticism, and that is what we are seeing here." The United States and its large Hong Kong consulate are also being targeted by Beijing and its allies—something Washington's new top envoy, Clifford Hart, is expected to address when he delivers his first Hong Kong speech next week. Diplomats from both Western and Asian nations fear their routine work to reach out to political and business contacts in the city is growing difficult as Beijing rails at "foreign interference." Party-backed newspapers in the city have long questioned the activities of foreign diplomats, this week upping the ante with claims that British spies are highly active, subverting politics with leaks from colonial-era files. "The diplomatic community is a core part of Hong Kong's international edge," one Asian diplomat said. "But we feel a bit squeezed and unwelcome … we are entering a very sensitive time." Hong Kong remains by far the freest city in greater China but tensions are rising. Every year, on the anniversary of the 1997 handover, thousands take to the streets demanding fully democratic elections, some openly declaring their support for the British. Pro-democracy groups have threatened to seal off the central business district next year as part of a campaign of civil disobedience. The most prominent Catholic in greater China, Cardinal Joseph Zen, warned last month that the government and pro-Beijing supporters might try to incite violence. "We're at a point where the significance of the issues on the table are such that the [leaders] responsible for Hong Kong are paying very close attention," said a Western diplomat. The diplomat added the hardening of China's stance toward Hong Kong was a decision made by senior Beijing leaders. "It's being directed at the [Politburo] Standing Committee level," a Western diplomat said, referring to the Chinese Communist Party's highest decision-making body. "We have solid indications of this." US, British and other multinationals maintain a strong presence in the city while foreign warships stop frequently in its dynamic and strategic port. British officials have yet to respond to the Chinese criticism of Swire's comments. China's Hong Kong-based Foreign Ministry representative, Song Zhe, also issued an explicit warning to US Consul-General Hart against interfering in local affairs. Consulate spokesman Scott Robinson defended Hart's work, saying the envoy had met with a range of leaders across government, business, politics and academia. "Such meetings are the standard practice of diplomatic representatives of nations around the world at the outset of their tenures, and they are important for building relationships, exchanging views and opening lines of communications," he said. Long-standing US policy toward Hong Kong was unchanged, he said—including support for progress toward "genuine universal suffrage." The post Diplomatic Tension Over Hong Kong Exposes Fragility of Hopes for Democracy appeared first on The Irrawaddy Magazine.

Philippine President Calls on Rebels to Surrender Posted: 19 Sep 2013 11:29 PM PDT The hands of a Muslim rebel of the Moro National Liberation Front (MNLF) who surrendered to government soldiers are seen secured with an electric wire at a police station in Zamboanga city in southern Philippines on Sept. 19. (Photo: Reuters) ZAMBOANGA, Philippines — The Philippine president called on the last rebel holdouts holding residents hostage in coastal communities in the south to surrender Thursday and prevent further bloodshed as a major government offensive to end an 11-day standoff crawled toward an end. More than 200 Moro National Liberation Front rebels stormed five communities on the coastal outskirts of Zamboanga city on Sept. 9 and took about 200 residents hostage. A ground, sea and air offensive by 4,500 soldiers and police has left about 40 insurgents holding around 20 hostages, officials said. Assault troops have calibrated their firepower to protect trapped civilians, slowing down an offensive by an overwhelming number of troops, the military said. Fresh clashes killed an army commando and six rebels Thursday. Some of the gunmen set clusters of houses on fire in the hard-hit community of Sta. Catalina in an apparent effort to cover their escape, while 15 insurgents, all looking famished and exhausted, emerged from a mangrove and surrendered, police said. Despite the remaining hostilities, life has crept back to normal in the port city of nearly a million people, with its international airport reopening to two commercial flights from Manila after days of closure and many downtown shops resuming business. A smiling President Benigno Aquino III, who has overseen the offensive since Friday, went to Zamboanga's airport to welcome the passengers. Facing reporters later, he said the rebels still had the option to surrender. "Life is precious to me," Aquino said, addressing the rebel holdouts. "You may want to consider your life precious as well." "It is not too late to end this, so we can put a stop to the deaths and injuries. That is in your hands," Aquino said. Led by rebel leader Nur Misuari, the group dropped its demand for a separate Muslim state and signed an autonomy deal with the government in 1996, but the guerrillas did not lay down their arms and later accused the government of reneging on a promise to develop long-neglected Muslim regions in the predominantly Roman Catholic Philippines. Misuari's group later splintered into factions and faded in the background. Another rebel group, the 11,000-strong Moro Islamic Liberation Front, became dominant and engaged the government in peace talks brokered by Malaysia. As the talks progressed starting last year toward a new and potentially larger autonomy deal for minority Muslims in the south, Misuari and his forces felt left out and increasingly turned restive. More than 100 rebels and their commanders who have been captured or surrendered will likely be charged with rebellion, as well as violating international humanitarian laws that forbid taking people hostage and using them as human shields and occupying civilian communities. Misuari has not been seen since the rebel siege began, but Aquino said there was growing evidence of his involvement. The post Philippine President Calls on Rebels to Surrender appeared first on The Irrawaddy Magazine.

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