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12 July 2001

Political Prisoners, NLD Offices

Since January 26 this year and as of today, the generals in the State Peace and Development Council (SPDC) have released 130 political prisoners, mostly members of the National League for Democracy (NLD). Of these people, 30 of them were released after the UN Special Envoy's return from Rangoon on 4 June this year.

The SPDC is also reported to have agreed to let the NLD reopen 18 Township Offices in Rangoon Division. According to a report from the NCUB, of these 18 branch offices, nine are already functioning, though in a limited way, while nine more will become operational soon. The offices that remained functioning are in Kyauktada, Syriam, Thaketa, Mayangon, Dagon Myothit, Thongwa, Twante, Tamwe, and Kyauktan Townships, and nine that will become operational are in Taikkyi, Hmawbi, Hlaing, Kungyangon, Kawhmu, Insein, Shwe Pyitha, Ahlone, and Sanchaung Townships. So far, Hmawbi and Taikkyi offices have reopened and preparations are being made to officially reopen other offices.

Myanmar Times, the only privately owned newspaper (English language weekly) sanctioned by the generals, quoted a government spokesman (25 June-1 July) as saying the releases were a sign of progress in the fledgling national reconciliation talks between NLD general secretary Daw Aung San Suu Kyi and the SPDC. The spokesman said in a statement, according to Myanmar Times, "The releases are the result of the understanding achieved between the SPDC and the NLD."

Japan & UN Special Envoy

Jiji press agency of Tokyo reported on July 6 that Japan's Chief Cabinet Secretary Yasuo Fukuda has pledged to work closely with UN Special Envoy Ishmael Razali in continuing to call for democracy in Burma. Mr. Razali has requested help from Japan to promote a dialogue between the military junta and the National League for Democracy as the first step to democratization. In expressing Japan's readiness for cooperation, Fukuda said promoting political stability in the region is of great importance to Japan.

In the meantime, Mr. Razali has expressed hope the SPDC will release more political prisoners at an early date. He welcomed the recent release of political prisoners as meeting the expectations of the international community but further releases would be an important step forward to promote dialogue.

Razali also told Japan's Foreign Minister Tanaka that Japan's grant-in-aid for the Baluchaung No. 2 Hydropower Station modification project in Burma is beginning to gain the understanding of the international community. Razali said the assistance would be instrumental in further promoting understanding between the international community and the Burmese military junta.

'Misconceptions' in Junta's Eyes

The generals in Burma want others to believe that the "secret talks" underway are part of their well thought out "political transition process" and not because of other reasons. A news release issued recently by the Burmese Embassy in London, the generals say "misconceptions" regarding Burma are "the result of mostly negative reporting" by the western media. "Misconception 1" has been that the "recent political steps are results of political pressure from the West." It claims that "The Government of Myanmar has been slowly and steadily implementing its declared objectives without unduly compromising the peace and stability of the nation at the same time protecting the interests of it's silent majority inhabiting the predominantly rural areas. The recent 'political steps' taken by the government are a part of this process as prevailing circumstances have permitted such steps to be taken. For example, two years ago, the disruptive attempts to create a political upheaval of '9-9-99' (9 September 99) by collusive actions of local and foreign agitators, have only negatively impacted on and in fact delayed certain steps of the political transition process until recently. This is a fact that should be lucidly appreciated. " In other words, SPDC should be given credit for the talks.

Dwindling Foreign Exchange Reserves

Another likely reason why the talks are being held may be reflected in a recent directive issued by the Border Trade Department. The department has issued instructions to all its branch offices at the border to strictly enforce regulations, particularly the granting of import licenses. NewsDesk has obtained that directive addressed "To all Border Trade Stations" quote "With effect from 19 June 2001, import licenses must be issued only to companies and trading concerns that have export earnings. Imports will no longer be permitted to businesses that have acquired foreign currency through services, account transfers, rents, salaries, and other means," unquote.

The order also said, "Since state enterprises and agencies no longer have foreign exchange, companies that have won tenders or contracts will be permitted to import only with their own export earnings." Officers in charge of border trade stations are warned that they will be held responsible for guaranteeing import licensees are export earners.

In the meantime, prices of some basic commodities have risen as news began circulating about state enterprises running short of foreign currency reserves. A NewsDesk source in Rangoon said traders started spreading word that the Union of Myanmar Economic Holdings--the Defense Services enterprise with a monopoly over almost every major economic undertaking in Burma--can no longer afford to import palm oil for distribution and that palm oil stocks were fast dwindling. Palm oil price jumped 29 percent between 1 and 9 July and it caused other cooking oil prices to rise.

An Unwitting 'Price Control Authority'

These days in Burma, with the generals enforcing the rules, no one can be certain about what one's role is. With farmers being called in to repair roads and bridges, soldiers given duties to grow rice and breed cattle, and Red Cross members told to take up arms training, it wasn't a surprise that the Military Intelligence in Burma has unwittingly become a price control authority. It has been the leading agency to track down currency dealers when the dollar exchange rate rose to exorbitant levels. The military intelligence was also recently assigned to go after cooking oil dealers to warn them against hiking up oil prices. Some cooking oil dealers have already been detained. Military intelligence agents also went after car brokers at Hanthawaddy in Rangoon and told them to reduce the prices of cars. The brokers were told that reduction of car prices was needed if the dollar rate is to be controlled. Brokers were threatened with arrest if the prices did not come down within a week.

Meanwhile, the Central Bank of Burma revoked the licenses of all 10 Foreign Exchange Certificate (FEC) [state issued dollar equivalent currency] changers on 19 June and issued new licenses to five operators. Myanmar Times interviewed a consultant from one of the new licensees, Myanmar Commercial Limited, who said, "We didn't know about this in advance...It is more like an assignment that we became an authorized FEC exchanger." (The dollar rate has been fluctuating between 550 and 620 kyats these days as compared to the official rate of 6 kyats).

Thai-Burma Relations

Addressing the staff of the Ministry of Foreign Affairs recently, SPDC Secretary-1 Lt Gen Khin Nyunt said the relationship with Thailand was returning to normal after a five-month rift. His views reflected an official thinking about the recent visit to Burma by Thai Prime Minister Thaksin Shinawatra. The general said he was "happy to inform that the situation is now returning to normal". He said, "The matter between Myanmar [Burma] and Thailand was resolved through friendship, understanding and cooperation."

The Bangkok Post editorial of 10 July, entitled, "Tension eases but problems continue," said "Diplomacy may move slowly but police work cannot afford such luxury. Prime Minister Thaksin Shinawatra went to Burma last month with one major reason in mind. The Burmese have been pouring huge amounts of drugs into, and through, Thailand. ...Rangoon has the means to help a major, meaningful effort to eradicate drug trafficking in the region. So far, and specifically in the short time since the premier's visit, Burma has been part of the problem without contributing anything to the solution. ...Mr Thaksin's visit and the return visit of Foreign Minister Win Aung, had one success. It cooled the building border tension so life and commerce could return to normal. Unfortunately, 'normal' is the state where Burma feels confident to continue its open support for drug traffickers. The major threat to Thai security from Burmese drugs has not improved since Mr Thaksin's visit."