BURMA RELATED NEWS - JULY 29-30, 2012

Moderate Quake Shakes Central Myanmar
YANGON, Myanmar July 29, 2012 (AP)
A moderate earthquake has shaken central Myanmar near the Indian border.
The U.S. Geological Survey says the quake had a magnitude of 5.7 and struck at a depth of 68.4 kilometers (42.5 miles). Myanmar's meteorological and seismic agency put the magnitude at 5.8.
An official from the Myanmar agency says no casualties or damage have been reported. The quake occurred Sunday at 8:51 a.m. local time.
The official says the quake's epicenter was about 215 kilometers (135 miles) northwest of Mandalay, Myanmar's second largest city. He says it was felt in Hakha, the capital of northwestern Chin state. He spoke anonymously because he wasn't authorized to release information.
The area affected is not densely populated. It falls within an earthquake belt where tremors are fairly common but usually not destructive.
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UN human rights envoy arrives in Myanmar on post-unrest evaluation visit
By The Associated Press | Associated Press – Sun, Jul 29, 2012
YANGON, Myanmar - A United Nations human rights expert has arrived in Myanmar on his first mission since serious ethnic strife shook a western area in June.

Tomas Ojea Quintana arrived Sunday night for a one-week evaluation visit during which he will meet government officials, opposition leader Aung San Suu Kyi, civil society representatives and others concerned with human rights.

He is expected to visit Yangon's notorious Insein prison and travel to northwestern Rakhine state where at least 78 people were killed in communal violence involving a Muslim minority.

Quintana's evaluation is likely to be regarded as a yardstick for measuring reforms undertaken by elected President Thein Sein after decades of repressive military rule.
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UN human rights envoy probes ethnic clashes in Myanmar during visit
By The Associated Press | Associated Press – 8 hrs ago

YANGON, Myanmar - A United Nations human rights expert has kicked off a weeklong visit to Myanmar by focusing on deadly strife between Buddhists and Muslim Rohingyas that shook a western area in June.

Tomas Ojea Quintana's first official meeting Monday was with Myanmar's minister of border affairs for a briefing on the situation in northwestern Rakhine state. At least 78 people were killed in communal violence there last month.

Quintana mentioned the violence in Rakhine, which rights group say mostly targeted the Rohingyas, in a pre-arrival statement as one of the "challenges" facing Myanmar despite its recent political reforms. He hopes to travel to the region later.

His evaluation is likely to beregarded as a yardstick for measuring reforms undertaken by elected President Thein Sein after decades of repressive military rule.
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Myanmar may allow foreign credit cards by 2013
Associated Press – Sun, Jul 29, 2012

YANGON, Myanmar (AP) — Banks in Myanmar are hoping to begin handling international credit card transactions by next year.

Than Lwin, deputy chairman of the prominent Kanbawza Bank, said Sunday that negotiations are under way with Visa on the use of its cards.

Foreign visitors have been unable to use credit cards because of U.S. and EU restrictions on money transactions since 2003. Western countries imposed sanctions on Myanmar because of its repressive policies, but began easing them this year after elected President Thein Sein initiated political and economic reforms.

Another Myanmar banker who declined to be identified because he is not authorized to release information said talks are also ongoing with MasterCard, China Union Pay and Japan Credit Bureau and he hopes credit card transactions will be possible by 2013.
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UN envoy in Myanmar amid Muslim crackdown concern
AFP – 20 hrs ago

The United Nations expert on human rights in Myanmar arrived in the country late Sunday, days after the UN voiced fears that efforts to end unrest in Rakhine state had turned into a crackdown on Muslims.

UN Special Rapporteur Tomas Ojea Quintana flew into the main city of Yangon for a visit set to include a trip to the restive western state as well as meetings with Myanmar's president and civil society.

It comes after a warning by UN human rights chief Navi Pillay that Muslim communities in Rakhine, particularly the Rohingya minority, were being targeted by security forces.

"We have been receiving a stream of reports from independent sources alleging discriminatory and arbitrary responses by security forces, and even their instigation of and involvement in clashes," she said in a statement Friday.

Quintana says that Myanmar has made "significant" progress on reforms under President Thein Sein, who came to power last year, but said the country faced "ongoing human rights challenges".

Violence between Buddhist ethnic Rakhine and Muslim Rohingya communities erupted in early June and have left at least 78 people dead and 70,000 homeless, according to official figures.

Unofficial estimates of the death toll were higher, the UN said.

Myanmar's government considers the estimated 800,000 Rohingya in the country to be foreigners while many citizens see them as illegal immigrants from neighbouring Bangladesh and view them with hostility.

Earlier this month, Thein Sein told the UN that refugee camps or deportation was the "solution" for the Rohingya, according to his official website.

Quintana is set to meet the Myanmar leader in the capital Naypyidaw on Friday following a trip to Rakhine state.

"We do not know what they will discuss. But of course the Rakhine state situation will be the main issue," a Myanmar government official told AFP, asking to remain anonymous.

Ten aid organisation staff, including some from the UN, were detained in Rakhine in the wake of the unrest, according to a situation bulletin by the UN Office for the Coordination of Humanitarian Affairs (OCHA) earlier this month. They are thought to have appeared in court in mid-July.

Quintana's visit is due to last until August 4.
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Myanmar rejects Muslim crackdown concerns
AFP – 23 mins ago

Myanmar on Monday told a UN rights envoy it rejected accusations of abuse by security forces in the wake of communal unrest, after the United Nations raised fears of a crackdown on Muslims.

In a press conference attended by UN Special Rapporteur Tomas Ojea Quintana, Myanmar's foreign minister said the government had exercised "maximum restraint" in bringing an end to the violence in western Rakhine State.

"As such, Myanmar strongly rejects the accusations made by some quarters that abuses and excessive use of force were made by the authorities in dealing with the situation," Wunna Maung Lwin told reporters.

He said the country "totally rejects the attempts by some quarters to politicise and internationalise this situation as a religious issue".

Quintana told reporters that on Tuesday he planned to visit Rakhine, where tens of thousands remain displaced by fighting that erupted between Buddhist and Muslim communities in early June.

His trip comes just days after the United Nations warned that Muslim communities in Rakhine, particularly the Rohingya people, were being targeted by security forces.

Earlier this month Amnesty International warned of "credible reports" of abuses -- including rape and unlawful killings -- by both Rakhine Buddhists and the security forces.

According to official figures, at least 77 people were killed in the unrest, including eight killed by security forces.

Of the more than 60,000 displaced, Myanmar officials said the vast majority -- around 53,000 -- were Muslims.

Ten aid organisation staff -- six from the UN and four employees of Doctors Without Borders (MSF) -- are among more than 800 people being held in relation to the unrest.

Both sides have accused each other over the attacks, which flared up following the rape and murder of a local Buddhist woman and subsequent revenge killing of 10 Muslims on June 3 by a mob of ethnic Rakhines.

Fears about the situation have spread across the Islamic world, with threats of violent reprisals against Myanmar from extremists from Pakistan to Indonesia.

Myanmar's government considers the estimated 800,000 Rohingya in the country to be foreigners while many citizens see them as illegal immigrants from neighbouring Bangladesh and view them with hostility.

Earlier this month, President Thein Sein told the United Nations that refugee camps or deportation was the "solution" for the Rohingya, according to his official website. Quintana is set to meet the Myanmar leader in the capital Naypyidaw on Friday.
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The Nation - Myanmar's Suu Kyi plans cherry blossom visit to Japan
July 30, 2012 3:46 pm

Yangon - Myanmar democracy champion Aung San Suu Kyi plans to visit Japan in the spring, a senior Japanese diplomat said Monday.

"Aung San Suu Kyi said she wants to visit Japan for the cherry blossom blooming, which means in March or April," said Yohei Sasakawa, Japan’s goodwill ambassador to Myanmar for the welfare of ethnic minorities.

Sasakawa met with Suu Kyi on Sunday in Naypyitaw, where she took up her seat in parliament earlier this month.

"She said she wanted to visit Japan separately, not as part of her trip to the USA, which she said would be impolite," Sasakawa told a press conference in Yangon.

Suu Kyi, 67, is to visit the United States in September, following a visit to Europe in June and a trip to neighbouring Thailand on May 29-June 2, which marked her first foray abroad in 23 years.
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Myanmar and North Korea: Birds of a feather on different paths?
Kyaw San Wai and Ong Suan Ee
The Nation
Publication Date : 30-07-2012

Myanmar and North Korea have been East Asia's pariah states for much of the past decade.

Both underwent recent leadership changes and appear to be pursuing different paths on the international stage. The military junta which ruled Myanmar for the past twenty years transferred to a nominally civilian government led by President Thein Sein, its former Prime Minister.

In North Korea, Kim Jong-Un was propelled into leadership by the death of his father, Kim Jong-Il. Whereas the Thein Sein administration has undertaken political and economic reforms, Kim Jong-Un has only hinted at potential change. Is it wise to tie these hints of North Korean change to hopes that it may follow Myanmar's reformist lead?

Similarities and differences

Myanmar and North Korea share certain similarities besides pariah status. The military remains the dominant political institution in both states. Both countries have been ruled by eccentric, isolationist authoritarian regimes for much of their post-independence histories. Disastrous economic policies have prevented these two resource-rich countries from achieving their economic potential. Myanmar and North Korea now have the lowest incomes in the region and are ranked 21st and 22nd respectively on the Fund for Peace and Foreign Policy's 2012 Failed States Index. Both countries have poor human security records. There are also concerns of both states' nuclear weapons programmes and ambitions.

Certain differences exist too: Myanmar has more interactions with the global community in the form of (limited) tourism, trade, (controlled) foreign media and literature exposure, and overseas Burmese communities.

North Korea jealously guards its isolation and the state has been mostly successful in controlling information flows to the public, though this is changing due to the growing porousness of the Sino-North Korean border. Myanmar's Asean membership has helped prevent complete diplomatic isolation, but North Korea has no similar multilateral ties.

Can North Korea follow?

Myanmar is undertaking a precarious course of both political and economic reforms in the face of a flare-up of civil war and communal unrest. For North Korea, the reforms will likely be economic, not political. Myanmar is also open to outside help and technical input, while North Korea appears unreceptive, still singing the hymn of self-sufficiency.

Some observers claim the Thein Sein administration is plagued by a reformist-hardliner split. Hardliners, either profiting from crony capitalism or against the erosion of military dominance, have reportedly stymied Thein Sein's reforms. In North Korea, Kim Jong-Un will face similar setbacks should he embark on reforms which threaten the privileges of his father's loyal apparatchiks.

Another obstacle is North Korea's behemoth military, beneficiary and upholder of the Songun (military first) tradition. Similar to the Burmese Tatmadaw, the Korean People's Army receives the lion's share of the national budget and has influenced (if not outright dictated) government policy in other arenas. The military has much to lose in the event of reform, and will likely try its utmost to preserve its socio-political dominance. Myanmar, meanwhile is slowly trimming its military budget and the new commander-in-chief has both supported reforms and defended the military's political role.

North Korea, like all communist countries, is heavily centralised. It also lacks civil society, opposition parties and popular intellectual exchanges with the outside world, and main decision-making is entrusted to (and entrenched within) the upper echelons of leadership. Hence, the impetus and approval for change must come from the youthful leader himself.

Will North Korea follow?

Even from the perspective of regime security or anchoring Kim Jong-Un's legacy, there remain many reasons for North Korea to pursue reforms. Improving North Korea's economic and agricultural productivity will arguably help stabilise the regime and consolidate public loyalty to the new leader. From a defence perspective, North Korea will need to improve its economic posture in order to retain its footing against South Korea.

China, neighbour to both reclusive states, will likely push for North Korean economic reform, with the view that it will decrease the likelihood of regime implosion and prevent a potential refugee crisis. As with Myanmar, China stands to benefit from an economically sound and politically stable North Korea, especially from investments and natural resource extraction.

Myanmar has begun courting Western investment and recently, President Barack Obama paved the way for US companies to (conditionally) invest in Myanmar. China is Myanmar's biggest investor, but Japan, South Korea, Thailand, Singapore and India also contribute. Unless North Korea's nuclear programme issue is resolved, its only sources of major investment, should reforms make conditions more favourable, will remain China and to a certain extent, Russia.

Looking ahead

South Korean President Lee Myung-bak recently urged North Korea to follow in Myanmar's footsteps. Despite their similarities, the differences between Myanmar and North Korea remain stark, the key divergence being North Korea's persistent maintenance of its status quo. Myanmar has demonstrated flexibility in realising that its long-term interests will be better served by adopting a more open policy.

However, North Korea does not appear to have reached that tipping point just yet - or perhaps its leader has, but the rest of the Politburo is slow to follow.

Recent weeks have shown signs of growing North Korean openness under the young Kim's leadership. Socio-culturally, he has worked on cultivating a "fatherly" image by reaching out to youth and showing a symbolic readiness to embrace elements of foreign culture by allowing certain Western influences, as demonstrated by a highly publicised Disney-inspired show.

Politically, his official titling of "Marshal" and his unexpected dismissal of a top military leader has prompted speculation of a potential purge of his father's cabinet allies and replacing them with his own. On the foreign policy front, North Korea has publicly cited its willingness to return to denuclearisation talks.

There also is an exciting economic impetus for reform: North Korea sits on as much as 20 million tonnes of rare earth minerals. If North Korea were to harness its mineral potential, the US, Japan and South Korea would certainly express interest. Is it prudent to peg these developments as clear and definite indicators of top-down reforms? Ultimately, as we know very little about its inner workings and decision-making processes, it is perhaps best to tread with informed caution and keep an open mind about North Korea's prospects for opening up the way Myanmar has.

Kyaw San Wai, formerly a research analyst at the S Rajaratnam School of International Studies, is now a MSc, (International Relations) candidate at the same institution. Ong Suan Ee, formerly senior research analyst at the Centre for Multilateralism Studies, RSIS, is currently a Masters of Public Health candidate at the Saw Swee Hock School of Public Health, National University of Singapore.
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The Hindu - Rohingyas are not citizens: Myanmar minister
DPA - Yangon, July 30, 2012

(AP)The Myanmar government on Monday insisted that the Rohingya minority group, the target of communal violence last month, have no claim to Myanmar citizenship.

“They are not included among our more than 130 ethnic races,” said Myanmar Immigration Minister Thein Htay .

Since 1982, the government has classified an estimated 750,000 Rohingyas living in its western Rakhine State as stateless Bengali Muslims from neighbouring Bangladesh, leaving them vulnerable to persecution, discrimination and abuse.

Last month, a mob of ethnic Rakhine Buddhists killed 10 of the Rohigyas in revenge for the alleged rape and murder of a Rakhine woman by three Rohigyas.

The incident sparked a wave of communal clashes that left up to 80 dead and hundreds of houses burned.

Myanmar authorities arrested three UNHCR staff during the unrest.

“The government has sound evidence that the three UN employees were involved in the Rakhine riots,” said Mr Thein Htay who is also the Border Affair Minister, in the first official explanation of the arrests.

“We haven’t had any access to them,” UNHCR spokeswoman Vivian Tan said in Bangkok. “We are still unaware of what they’ve been charged with.” she added.
UN human rights expert Tomas Ojea Quintana arrived in Myanmar over the weekend to investigate the Rakhine violence.

Although Myanmar, which was ruled by a junta between 1988 and 2010, is now under nominal civilian rule there is no indication that the new regime has changed its attitude towards the Rohingyas, many of whom have lived in Myanmar for generations.

“It is totally impossible to accept illegal Rohingyas,” President Thein Sein told visiting UN High Commissioner for Refugees (UNHCR) Antonio Guterres earlier this month. He suggested the UNHRC seek resettlement for the Rohinyas abroad, or set up refugee camps for them.

There are an estimated 30,000 Rohingyas already living in UNHCR camps in neighbouring Bangladesh, fleeing persecution in Myanmar.
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ABC Radio Australia - Can Burma's economy cope with sudden influx of foreign investment?
Updated 30 July 2012, 15:26 AEST

With the relaxation of western sanctions Burma, foreign business interests are pouring in, eager to take advantage of what the resource-rich, strategically located country can offer.
Can Burma's economy cope with sudden influx of foreign investment? (Credit: ABC)

But there are those, including opposition leader Aung San Suu Kyi, who have warned of "reckless optimism" about the development prospects and the country's ability to cope with the sudden influx of foreign investment.

Presenter: Richard Ewart
Speaker: Brian Klein, former American diplomat and trade official

KLEIN: There's a lot of opportunity in Myanmar so money is chasing that opportunity. But in Myanmar, government is very new and the economy is still quite fragile and part of the concern is as money flows in very quickly to an economy that promises fast growth, especially since there's not much growth around the world these days, especially not in the US, Europe or Japan and even China and India are starting to slow, but when there's money starts flooding into an economy that's not really that prepared to handle it, there are some serious problems that can occur and as fast as money goes in, money can leave. The Myanmar government is starting to make changes to handle this inflow, but the question is whether or not they're going to make enough of an effort to build a strong, functioning government before the money gets there or after.

EWART: But presumably this is a two-way street, because surely investors are not going to want to go into the country if they feel that there's a risk their investment will fall down?

KLEIN: Right, I think mostly frontier market investors accept that there's a lot of risk in countries like Myanmar, in Laos, in Cambodia, at least within South East Asia. Vietnam is becoming slightly more mature. China's very mature by now, countries like Thailand are very mature. Even the Philippines and Indonesia have a reasonable amount of security that if you put your money in, you can bring it out pretty easily. But part of the problem going into Myanmar is that the government and a lot of economic activity over the last decade or so has been completely controlled by military interests and when, at least on the US side when you needed due diligence and you had significant reporting requirements to the US government, especially for human rights issues and Myanmar has in the past dealt with North Korea, there are serious concerns. So investors have reporting requirements, so even you do due diligence, it can be very challenging to figure out who owns what and what have they done in the past. Other investors don't take that as seriously and they just want to be the first in, so for example, the mining sector, people generally jump in very quickly, because they want to be the first to start pulling out those resources and I think that's why Aung San Suu Kyi very wisely cautioned investors about that reckless optimism and she was referring to some deals that were starting to happen where there was absolutely no transparency at all and a part of her concern I think is that the money is going to flow to the top people. The average Myanmar citizen is not going to enjoy any of the benefits and a lot of is state resources especially mining and timber. I mean she has some serious concerns and they're well warranted.

EWART: You mentioned mining there. I mean are there lessons to be learnt, say, for example, what's happened in Mongolia, where suddenly, of course, they find themselves sitting on enormous mineral wealth?

KLEIN: From the government perspective, especially in Mongolia, there's so much money that's poured into that economy and some people have gotten very wealthy and that's fine, but now there are concerns of whether that wealth will spread out to the general population. Even the Mongolian government now has decided they want a bigger piece of some of those deals, that they negotiated deals, they are state-held resources and now they realise, well we didn't get such a good deal first time around, so we're just going to seize some of it, where going to make it so we get a better percentage of the profits out of these deals. So from the investor perspective, yes , they've been a bit surprised, because there is so much wealth there, over a trillion dollars potential, that they thought they were going to get everything they could and they brought in all the equipment and they brought in the resources and they helped build the roads and now the Mongolian government decides no, it's not going to happen exactly as everyone thought. So there's a risk there in Myanmar as well that the early deals may not turn out as good for the investors as they initially thought.

EWART: There's been a recent change of government in Mongolia which as I understand it has led to them imposing restrictions on particularly Chinese investment and I would presume we're unlikely to see similar restrictions in Burma?

KLEIN: Well, the interesting thing on Burma and China relations is that China's been one of the biggest investors and they had a very large dam project and most of that electricity was going to flow back into China and Burma would get a lot of the money from the project, but none of the electricity and they're somewhat electricity starved and there was a popular movement against that investment and the project had already started and it was cancelled. Now China's leaning very heavily on Burma to restart that project, but there has been a shift, not only in the public's view but also among government officials that may be it wasn't the best idea to sell off all these resources. A lot of its timber also goes into China, there is an endless appetite there in China. So now that part of this shift to opening to Japan, the US, the UK and the rest of Europe, even Australia, that they see that leaning too much on Chinese investment might not be in their best interests. And of course, part of that is they get more people bidding on projects which means potentially more investment and more profit, but also they have a certain wariness of being overly dependent on China. So similar Mongolia has the same concerns and that has the same concerns. They have very limited options unfortunately, but Burma's definitely has much more investor interest at the moment.

EWART: Does that not therefore tend to suggest that the country is better placed to deal with foreign investment coming in than perhaps some are suggesting, that they do have a bit of a handle on this situation?

KLEIN: Well, I think strategically they see that they need more countries involved and that's part of the reason why they had elections and granted they weren't by international standards of democracy....they were free and fair but they were very limited. The number of people in parliament are heavily weighed towards the military or military-backed parties. So Aung San Suu Kyi's party while she won the vast majority of the seats that were available, it was a minority number of seats. So at that level they understand they need more countries involved, but when it comes to actually strengthening the rule of law, for example, so that contracts will be honoured or that there's some recourse of contracts if they are not honoured. Securing the borders, there's a lot of minority groups that have been oppressed for a very long time, there are military campaigns against them throughout the north and the east, that situation is not totally resolved and a lot of the resources are there and I think many of these ethnic tribes worry that they're just going to get run over and they're going to lose all of the benefits that will come from these concessions.

But I would have to say they're certainly trying. Now Burma they are starting to negotiate an investment treaty with Japan and Japan has agreed to dialogue agreed to go in and help develop a bond market. So they're definitely forward leaning and many of the leaders are in their 50s and 60s and they are real breaks from the past, 70 and 80 year-old generation of military rulers. So there is reason to hope that they're going to turn this around and prepare themselves for the money that starts rolling in.
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NPR - Cars For Clunkers: Myanmar Swaps Old Rides For New
by Anthony Kuhn
July 29, 2012

Nowhere are the many recent reforms in Myanmar, also known as Burma, so evident as on city streets. Until this year, they were often choked with ancient jalopies because for most of the past half century ordinary Burmese citizens weren't allowed to purchase imported cars.

But the country's car import policies are now undergoing a lurching sort of liberalization, whose speed, quirks and unintended consequences offer a window on Myanmar's reforms.

One aspect of the reforms is visible at U Ohn Myint's car repair shop on the outskirts of Yangon, the country's main city. The 67-year-old mechanic takes the body of a 20-year-old government-made jeep and welds pieces of scrap metal onto the gaping rust holes. He and his young apprentices cobble in an engine from an old Mitsubishi SUV, the axles of a Toyota and some tires from South Korea.

U Ohn Myint offers this "Ride of Frankenstein" as evidence of his mechanical prowess. He boasts of having fixed all manner of rolling rust buckets, including some left over from the British colonial era.

"A 40-year-old car is nothing special here. I once refurbished a British Austin A40 that was more than 60 years old," he says proudly. "I had that thing up and running on the streets of Yangon."

Policy Rolls In Fairly New Imports

New policies rolled out last September allow owners of cars between 20 and 40 years old to sell them for scrap. In exchange, they get licenses to import newer but still secondhand cars.

U Ohn Myint has serviced many decades-old jalopies and kept them roadworthy when ordinary Burmese could not import private cars.

Ohn Myint says this "junkers for clunkers" policy has had a serious impact on his business.

"As new imports flood into the country, car prices are going down," he explains. "Nobody wants to drive these old clunkers in the city anymore, so now we mostly sell them to customers in rural areas."

Most of the cars on the streets of Yangon are aged Japanese imports. A few wealthy Burmese import European cars, but the country lacks the parts and trained mechanics to maintain them.

This year the policy was revised once again, allowing consumers to import any new car they like. But they need to pay for it with foreign currency, and the customs duties, surcharges and registration fees amount to a 165 percent markup.

Tin Maung Maung Than, a senior research fellow at the Institute of Southeast Asian Studies in Singapore, says that these prices change the nature of the automobile in the minds of Burmese consumers.

"Everyone, because of policymaking in the past, regards cars not as utility, but as investment," he says. "So when you buy a car, you are thinking of selling it later, at a profit."

When the government liberalized the import policy, prices for the most imported cars in Myanmar dropped by around half.

Tint Thwin, deputy director of trade in Myanmar's Commerce Ministry, says this caught some small-scale investors off guard.

"Now at the moment, there are some people and they have their car to sell in the market," he says. "So they invest a lot, and now they suddenly change the policy, and [the investors] have some losses."

A Toyota For Half A Million Dollars

Until the recent reforms, only officials were allowed to import automobiles. The government and military both have their own car-import companies. Many of the imported cars are then resold to family members and cronies of those in power.

Car trader Htay Aung has found success buying cars from the military and then reselling them to consumers. Of course he says this drives up the price.

"Seventy percent of the officials who get individual import permits will not use the cars themselves," he says, "but will instead resell them and pocket the profits. We will then buy those cars and resell them again, for a profit of around $6,000 to $11,000 each."

Mechanics at Ohn Myint's car repair shop on the outskirts of Yangon refurbish rusty, decades-old government jeeps.

Htay Aung says all the selling and reselling can jack the price of an ordinary Toyota Land Cruiser up to around $500,000. To the average citizen in one of Asia's poorest countries, that is what you call a crony-mobile.

Scholar Tin Maung Maung Than says that under a well-coordinated policy reform, all the duties and fees collected from car buyers might be used to build public transportation and infrastructure. But, he notes, even if the policies are haphazard or irrational, the government can still claim them as an improvement and good for the common people.

"There is this driving force under the new government of liberalization," he says. "Everybody jumps on the liberalization wagon. So everything that relaxes policies and liberalizing seems to be taken as good, regardless of the consequences."

Still Few Cars On The Road

Back at his repair shop, Ohn Myint shows visitors a freshly painted and refurbished jeep, which he says will sell for the equivalent of about $4,000 or $5,000. He says he supports the new car policy, though it has put a dent in his business.

"These rebuilt old cars are not so safe," he says, "and they're still expensive for ordinary Burmese. With the new policy, people will get better prices for their car purchases. And the new cars will still need us to maintain them."

Even with all the new imports flooding in, only seven out of 1,000 Burmese own cars, compared to 270 per 1,000 people in neighboring Thailand. Car prices are likely to remain prohibitively high for ordinary citizens until foreign car makers set up shop in Myanmar.
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UNHCR official to visit Rakhine state
A United Nation's expert on human rights in Myanmar will visit Rakhine state this week amid concern over alleged abuses by security authorities against Muslims.
Published: July 30, 2012 at 6:30 AM

YANGON, Myanmar, July 30 (UPI) -- A U.N. expert on human rights in Myanmar will visit Rakhine state this week amid concern of alleged abuses by security authorities against Muslims.

Tomas Quintana, special rapporteur with the U.N. High Commission for Refugees, arrives Tuesday for a four-day visit that will include one day in Rakhine, a report by Mizzima news, based in New Delhi and run by ex-patriot Myanmars, said.

Quintana was invited by the government, which last month faced rioting between Muslims and Buddhists in Rakhine state -- also called Arakan -- that killed up to 78 people.

His visit comes after the U.N. High Commissioner for Human Rights Navi Pillay called for a "prompt, independent" investigation into alleged human rights violations in Rakhine.

"We have been receiving a stream of reports from independent sources alleging discriminatory and arbitrary responses by security forces and even their instigation of, and involvement in, clashes," Pillay said.

"Reports indicate that the initial swift response of the authorities to the communal violence may have turned into a crackdown targeting Muslims, in particular members of the Rohingya community."

Rakhine occupies most of Myanmar's west coast on the Bay of Bengal and is mostly Muslim has a relatively large Muslim population. Within Myanmar, Buddhists make up 89 percent of the population while Muslims and Christians make up around 4 percent each, U.N. estimates state.

Many of the Rohingya have connections to neighboring Bangladesh.

Violence started in early June when 10 Muslims were killed by a mob who pulled them from a bus in late in the afternoon.

The second incident happened in the Rakhine capital Sittwe the same day when police opened fire to warn protesters who had surrounded a local police station, the independent Irrawaddy news Web site Irrawaddy, published in Thailand, said at the time.

The mob was demanding the release of three men suspected of the rape and murder of a woman May 28.

Immediately after the riots Brig. Gen. Kyaw Zan Myint, deputy minister of Home Affairs, was appointed to head a committee to look into the "lawless and anarchic acts that can harm peace, stability and rule of law in Rakhine," a report by the state-run New Light of Myanmar newspaper said.

Pillay welcomed the government's decision to allow the U.N. Special Rapporteur Quintana access to Rakhine.

She also said it is important that those affected from all communities in Rakhine are able to speak freely to Quintana.

Mizzima also reported that a coalition group led by Refugees International, the Arakan Project and the Equal Rights Trust issued a series of recommendations that were delivered to the governments of Myanmar and Bangladesh.

"In Myanmar, what began as inter-communal violence has evolved into large-scale state-sponsored violence against the Rohingya," the statement said.

"The urgent humanitarian needs of Internally Displaced Persons -- including those not in IDP camps -- aren't being adequately met. There is concern that those displaced won't be allowed to return to their homes as soon as it is safe to do so, creating a situation of protracted displacement."

A statement issued by the UNHCR said it estimates around 80,000 people are displaced in and around the Rakhine towns of Sittwe and Maungdaw where much of the violence took place.

"Most of them are living in camps for internally displaced people, with smaller numbers staying with host families in surrounding villages," the statement said.

"Many of the Rakhine IDPs whose houses were not destroyed have returned home. Others have said they would return if they could get help building new homes. Some displaced Muslims tell UNHCR staff they would also like to go home to resume work, but fear for their safety."
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Asia News Network -Myanmar villagers protest Chinese firm's plan to restart dam
News Desk
Eleven Media Group
Publication Date : 30-07-2012

Despite the project’s suspension, a Chinese state-owned company is discreetly planning to restart buillding a dam in the Ayeyawady (Irrawady) River, triggering protests in Myanmar’s restive state Kachin.

A Kachin villager, who for security reasons cannot be identified, said representatives of the Myitsone dam builder China Power Investment Corporation (CPI) visited one of the villages early July to gather support for its comeback.

“Representatives from CPI are luring villagers. They are organising (support) not only from the model village but also from refugee camps,” he said. “Kachin locals strongly oppose the project. Despite the suspension of the project, we are worried (because) activities are still ongoing in the area.”

The villager said the community in Aung Myin Thar San village in the northeastern town of Myitkyina fears that the 6,000 MW project, one of the largest of seven dams planned along the Ayeyawady delta, will push through.

People from three villages have already been relocated to the model village, Aung Myin Thar San. In total, 2,146 people from all five villages will be directly affected—with their houses to go under water in an instant once operations start.

The multibillion project was suspended in September 2011 following President Thein Sein’s order to halt the construction, assuring the public that the dam will not be built during his tenure.

The president reportedly gave in following widespread protests. Kachin is considered as one of the world’s eight hotspots of biodiversity, according to International Rivers. Once built, the dam will also be submerging historical and cultural sites in Mali and N'mai Hka rivers, an area known to be the birthplace of Ayeyawady.

Villagers worse off

“Chinese newspapers reported that the locals near Myitsone area are happy to (to accommodate the terms of) CPI. The newspaper mentioned relations with the local people are fine,” the villager added.

But villagers from the start had strongly opposed the dam. Those that had been relocated said they had wanted to go back since last year’s suspension, but they could not as the “government is watching them”.

Interviews with Eleven Media Group revealed that the relocated villagers are far off worse than they used to, as they now struggle to survive in deplorable living conditions and with no means for income, and no farms to till. “Our entire lives have been changed,” they said.

Violence has also erupted due to the dam. The ethnic Kachin has long been in conflict with the military, and tensions between the two have worsened since the construction.

China forges ahead

The Chinese company has continued with the project even after its Environment Impact Assessment (EIA) had been found to be questionable.

CPI reportedly started constructing the dam even without the EIA finalised. Experts hired to do the EIA had also recommended two smaller dams to replace Myitsone, following the unknown scale of damage it may cause to the river’s ecology and to forests.

CPI is investing US$3.6 billion for the project, according to reports. Once electricity is transported to China (90 per cent of the dam’s output), the Myanmar government will be receiving 20 per cent of the revenue or at least $500 million a year.

Other hydropower projects in Irrawady River are being undertaken by the Ministry of Electric Power in cooperation with CPI include Chephwe, Chephwenge, Wusauk, Khaunglanphu, Yinan, Phizaw and Laizar. They are expected to generate 18,499 MW of electricity.
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VOA News - Opening for Investment, Burma Faces Human Rights Challenges
July 30, 2012

STATE DEPARTMENT — More foreign firms are moving into Burma with the easing of U.S. and European sanctions, following recent political reforms.

But the Obama administration says it expects U.S. investors to lead by example in improving labor conditions, amid concerns that a more open Burma could worsen human trafficking.

U.S. and European sanctions hurt Burma's banking sector, making it harder for foreign firms to invest.

But with those sanctions eased, Google, Coca-Cola and General Motors are leading the charge into Burma. Meeting with corporate leaders before the largest-ever U.S. trade mission to the country, U.S. Secretary of State Hillary Clinton said she expects them to be agents of positive change by doing business responsibly.

Clinton has told Burmese President Thein Sein that Washington will respond to reforms on an action-for-action basis, as his government legalizes trade unions, eases media censorship, and frees political prisoners.

But with a 30 percent poverty rate, UNICEF's Burma representative Ramesh Shrestha says one of the biggest risks in Burma is child exploitation. "If government opens up as it said, democratically, then obviously it opens up for everything. That would mean the existing bad control of the situation might be loosened up. That would mean people would do what they want to do. This could be legal or illegal, all these things could happen," he said.

Jesse Eaves, the senior policy advisor for child protection at the aid group World Vision, says the important thing is that positive steps are being made. "We have seen countries like Burma starting to really take a look at what is happening in its own borders, what is happening to their citizens and trying to take the proper response to it," he said.

Eaves says World Vision is raising awareness about human trafficking and child exploitation in Burma by working with survivors to speak out. "It is amazing the change that you can see just by addressing the issue, by bringing it out in the open and shining a light on it," he said. "I think the biggest problem we see is that most people do not know what it is that they are looking at. They may just think, 'This is normal. This is what we have always done.'"

Lex Rieffel, an economic expert at the Brookings Institution, says the speed of Burma's economic reform could challenge welfare and development programs. "We have seen a pattern where countries that invest heavily in natural resources tend to under invest in human resources. Experience tells us that it is the investment in human resources that pays off in the long term," he said.

But Britain's investment chief Nick Baird says foreign firms can make a big impact in Burma. "It is not just economic, but working together in an open and transparent and responsible business way, will actually help the stability of this country," he said.

The message is echoed by the new U.S. ambassador to Burma, Derek Mitchell, who says outside investment can move the country toward greater transparency and accountability.
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Tuesday, July 31, 2012
The Japan Times - Suu Kyi looking to visit next spring
AP

YANGON — Myanmar opposition leader Aung San Suu Kyi plans to visit Japan next year on her first visit since being released from house arrest in November 2010.

Suu Kyi announced her plans to Japan's goodwill ambassador to Myanmar for the welfare of ethnic minorities, Yohei Sasakawa, who met her over the weekend in the capital, Naypyitaw.

A member of Sasakawa's delegation said Sunday that the Nobel Peace Prize laureate declared her intention to visit during the cherry blossom season, around the end of March. He asked for anonymity because he is not authorized to release information.

Foreign Minister Koichiro Genba invited Suu Kyi to visit Japan during his trip to Myanmar last December.
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The Irrawaddy - New Burmese Ambassador Meets Obama
By LALIT K JHA July 30, 2012

The new Burmese Ambassador to the United States Than Swe will present his credentials to President Barack Obama on Monday to formally revive the top diplomatic post between the two countries.

The credentials ceremony, which is closed to the press, is to be held at the White House, an official announcement said on Sunday. “The presentation of credentials is a traditional ceremony that marks the formal beginning of an ambassador’s service in Washington,” said in the statement.

Last week, Than Swe presented his credentials to Deputy Secretary of State Bill Burns at the Foggy Bottom headquarters of the State Department. Until recently he was Burma’s permanent representative to the United Nations in New York.

Than Swe is the first person to assume the prestigious post since 2004 when Lynn Myaing served as the 17th Burmese Ambassador to the US. Afterwards the Burmese government instead appointed a Charge d’Affairs.

Burma initially established diplomatic relationship with the US in 1947 when Soe Nyunt was appointed as the first Burmese ambassador.

Early this month, new US Ambassador to Burma Derek Mitchell similarly presented his credentials to Burmese President Thein Sein in Naypyidaw, thus reestablishing full diplomatic relations. Dealings between the two nations are finally normalizing with the easing of economic sanctions after Thein Sein’s reformist administration took office last year.

The 2005 defection of Aung Lin Htut, deputy chief of mission at the Burmese Embassy in Washington DC at the time, was considered major diplomatic disaster for the military government.

In his letter to then-Secretary of State Condoleezza Rice, the most senior Burmese diplomat in the US described Burma as a “tyranny” and he said “he and his family face arrest and possible death if they return.”
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The Irrawaddy - ‘Sack Aung Thein Lin’ Petition Launched
By ZARNI MANN July 30, 2012

A petition to sack Aung Thein Lin, the Rangoon chairman of the ruling Union Solidarity and Development Party (USDP), was launched on Saturday in his home constituency of South Okkalapa Township.

Aung Thein Linn has been widely criticized in Burma after he was quoted by the Chinese Southern Weekend journal lambasting President Thein Sein, Aung San Suu Kyi, the US and UN Secretary-General Ban Ki-moon.

Petition organizers in South Okkalapa, where he won a parliamentary seat in the 2010 general elections, told The Irrawaddy that they will submit their complaint to the Election Commission (EC) as soon as more than a thousand signatures have been collected.

“Aung Thein Lin said the Myitsone Dam project, in Kachin State, must resume and the idea to halt the project is only that of the president,” said an organizer. “He also said the people of Burma are crazy. We cannot accept that. That’s why the voters will sign the complaint and will submit it to the EC.”

According to the 2008 Constitution, at least one percent of voters from any constituency must submit a complaint in order to expel their current MP.

Meanwhile, a request to stage a protest on Tuesday against Aung Thein Lin by residents of Pakokku in Magwe Division has been rejected.

“We received the rejection letter from the township police force yesterday which stated the request to protest was rejected due to four reasons,” an organizer told The Irrawaddy on Monday.

Stated reasons included: “The interview of Aung Thein Lin has not yet been verified; to prevent problems between USDP members and locals; to prevent further problems with Pakokku-based Battalion 101 as Aung Thein Lin once worked there; and the Shwe Chaung Bridge area mentioned for the protest is restricted.”

But organizers complained that these are unfair and said they will submit an appeal to divisional authorities.

When asked about the support for Suu Kyi and her National League for Democracy, Aung Thein Lin is quoted the liberal Guangzhou-based journal as saying: “The [people] are crazy. OK, [Suu Kyi] is popular, but only because she is the daughter of Gen Aung San. He is our national hero.”

The now-notorious interview also quoted Aung Thein Lin saying that he opposed Thein Sein’s decision to suspend the controversial Chinese-backed Myitsone Dam project and that construction must be resumed. “I don’t trust Ban Ki-moon, nor the UN. They are all the same. All they think of is to interfere with other countries’ internal affairs,” he is also quoted as saying.

However, Aung Thein Linn now denies that he made the remarks and said that he has been misconstrued and misinterpreted by the publication. The USDP also issued a statement on Saturday that an investigation is underway and any appropriate disciplinary action would be taken according to party regulations.

The statement also mentioned that any comments made by Aung Thein Linn were his own personal opinions and did not reflect official party policy.
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The Irrawaddy - US Sanctions Forge Closer Burmese-Thai Trade
By MAY LAY July 30, 2012

The US government’s decision last week, albeit held up in a Senate wrangle, to extend a ban on Burmese imports for three years is likely to forge closer trade ties with Thailand, claim experts.

“Thailand and Burma have to work more closely and Burma can look for markets in Asia. In 2015, the AEC [ASEAN Economic Community] will open up and Burma has to work with regional countries,” said Pasu Loharjun, director-general of the Thai Industry Ministry.

Before 2009-2010 fiscal year, Thailand was the largest investor in Burma for six consecutive years until China overtook the Kingdom in 2010-2011 with large energy sector outlays, according to the data from the Myanmar Investment Committee.

During his three-day trip to Thailand last week, President Thein Sein signed three Memoranda of Understanding with Thai Prime Minister Yingluck Shinawatra for assistance in promoting security, logistic and infrastructure.

In addition, both countries renewed their commitment to the controversial Dawei (Tavoy) deep-sea port and special economic zone in southern Burma.

“In our talk, I reaffirmed the commitment of the Thai government to push forward with this cooperation with Myanmar in regard to the development of the Dawei deep-sea port to have concrete progress,” said Yingluck.

Thein Sein met also with Thai business executives from PTT Plc, Siam Cement Group and Charoen Pokphand Foods among others. PTT, Thailand’s state-owned energy giant, pledged during the meeting to return excess gas to alleviate a chronic power shortfall in Burma.

PTT signed a deal with the Burmese Energy Ministry to explore two blocks—PSC-G at 13,333 square kilometers and EP-2 at 1,344 square kilometers—on June 6. These will be explored together with Burmese energy company Win Precious Resources Pte Ltd as a joint venture.

PTT already operates four natural gas blocks in Burma’s Yadana and Yetakun fields which can produce 1.1 billion cubic feet per day for the Thai domestic market.

Prajuab Supinee, commercial counselor at the Thai embassy in Rangoon, said Thailand is interested in expanding investments in four key sectors—food, garments, healthcare and construction.

“Thailand and Burma are neighbors and we can have good business relation in the future. Thai business people are very interested in Burma and some Thai companies already started their businesses before the Burmese government initiated economic reform, especially in energy and industrial sectors,” he said at a Thailand-Myanmar business-matching meeting at the Union of Myanmar Federation of Chambers of Commerce and Industry.

Positive testimony received from International Labour Organization (ILO) in June with regards action taken to combat forced labor was seen as vital towards negotiating further trade concessions in the wake of the easing of international sanctions.

The key measure would be inclusion in the European Union and World Trade Organization generalized system of preferences (GSP), which reduces tariffs for developing nations. Burma was included in the GSP before 1997 and could export products with minimal taxes, but this was later withdrawn due to the former military junta’s appalling human rights record.

“I felt upset after the announcement of the US import ban on Burma for the next three years. We have to sell our products with a poor price to Thailand and Asian counties. If we can export to Western countries, we can get a good price and extend new markets,” said the owner of a furniture factory in Rangoon.

Bilateral trade between Burma and Thailand increased by around 25 percent in the last fiscal year. The value of trade between the two countries stood at US $3.6 billion in 2010-2011 and $4.5 billion in 2011-2012, according to data from the Ministry of Commerce.
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Five int’l airlines prepare to start Burma routes
Monday, 30 July 2012 15:13 Mizzima News

More international airlines are set to extend flights to Burma in October, according to domestic media reports.

The airlines include Taiwan’s EVA Air, South Korea's KAL, Japan's All Nippon Airways (ANA), Hong Kong-based Dragonair and Qatar Airways, said the Yangon Times.

EVA will operate flights three times a week.

ANA will offer a Narita-Rangoon-Narita route three times a week and a charter flight between Tokyo and Rangoon. A Naypyitaw-Yangon- Hanoi-Tokyo route will also be launched using a Boeing 767.

Qatar Airways, which had suspended flight since 2008, will resume flights between Doha and Rangoon.

Meanwhile, airlines from Germany and Bangladesh have approached Burma's civil aviation authority about launching direct flights to Rangoon, officials said.

Flights between Rangoon and Manila are expected to be launched before the end of this year.

Currently, there are 13 foreign airlines flying to Rangoon: Air China, China Southern Airlines, China Eastern Airlines, Thai Airways International, Indian Airlines, Air Asia, Taiwan region's China Airlines, Singapore's Silk Air, Malaysian Airlines, Bangkok Airways, Jetstar Asia and Vietnam Airlines.
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Vietnam eyes big hotels in Burma
Monday, 30 July 2012 12:44 Mizzima News

Vietnam and France are set to become major hotel investors in Rangoon, as investors eye the burgeoning Burmese tourist industry, domestic media reported last week. Indian companies are also looking at hotel investments, officials said.

The demand for hotel rooms has risen as the number of tourists and busines arrivals has increased rapidly.

Among them, HAG & Land from Vietnam is expected to invest US$300 million in the hotel sector, Weekly Eleven reported. Oberoi Hotels & Resorts from India has also expressed interest.

Htay Aung, the deputy minister of hotels and tourism, told the Sasin Bangkok Forum that Accor Group, the market leader in Europe, is also interested in making investments in the hotel industry. Accor is a French hotel group founded in 1967. It operates in 92 countries.

The Bangkok Post this week quoted Htay Aung as saying that the Shangri-La Group will build a 240-room hotel.

Ministry figures say that Burma had 731 licensed hotels with 25,002 rooms at the end of 2011.

Currently, Burma has about 20 foreign-invested hotels in Rangoon out of 35 in the country, which are mainly operated by companies in Singapore, Japan, Thailand, Malaysia and Hong Kong.

A delegation of International Enterprise Singapore Business Department, led by the director of the Southeast Asia Group, Tan Soon Kin, held discussions with officials at the Ministry of Hotels and Tourism early this month, said Eleven News.

Singapore is now the biggest foreign investor in Burma’s hotel and tourism industry, with the Sedona Hotel and Park Royal Hotel in Rangoon and the Sedona Hotel in Mandalay.

Other major foreign investors in the country's hotel and tourism industry come from Thailand, Japan, Hong Kong, Malaysia and Britain. The United States and other countries have recently expressed strong interest in the sector.

Currently, high-end rooms in Rangoon are normally filled. Burma has a total of nine government-owned hotels and 678 private hotels, and 11 hotel zones in regions where tourists visit frequently. Prices have risen sharply from around US$ 50 to up to $300 for luxury rooms. Recently, there were reports the government had ordered hotels to charge less for top room rates.

Last, year, the largest number of tourists came from Thailand, followed by China. French, German and British accounted for the highest number of Western tourists in Burma.

Mizzima reported in January that Europeans accounted for 65,367 travellers, led by France with 13,102 visitors, Germany with 10,932, and Britain 7,195.

“Arrival numbers are increasing 20 per cent to 30 per cent every year”, said Lynn Zaw Wai Mang, general manager of Unique Asia Travel in Rangoon. “It means we need to build more hotels, expand airlines and develop our infrastructure so we can offer a better level of service to visitors.”

While the numbers are good, tourism industry spokesmen are citing potential problems down the road and calling for the newly elected government to undertake rapid infrastructure changes.

An article in the Myanmar Times in January cited concerns about the country’s lack of hotels and transport capacity, poor infrastructure, high prices and inefficient booking systems.

“The Myanmar tourism industry is now at a point where we need to become more professional,” said Edwin Briels, general manager of Exploration Travel and Tour.

In June, Mizzima reported that four historical state-owned buildings in Rangoon were on the real estate market to be used as possible hotels to help boost Rangoon’s room shortage.

The former office of the Immigration and Manpower Department (next to Rangoon City Hall) has undergone major renovation. Private construction companies are renovating many old government office buildings in Rangoon, mostly built during the British colonial era.
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Mizzima News - The politics of Burma’s economic reform: report
Monday, 30 July 2012 13:23 International Crisis Group

Burma’s political transition and economic reconstruction are deeply entwined, and the government, the country’s elites and the international community must embrace both for the dramatic reforms underway to succeed, according to a new report by the International Crisis Group (ICG).

The report, Myanmar: The Politics of Economic Reform, released last week examines the benefits and challenges of the ambitious program of economic change set in motion by President Thein Sein and his administration.

In an effort to create a rapidly growing economy and catch up to its neighbours, the government wants to do away with the restrictions and privileges of the old economic order, which benefited the military, party elite and crony businessmen, said a summary of the report’s findings.

“If the reforms are done well, many across the country stand to benefit, but those who profited most from the old regime’s restrictions and privileges will lose access to windfall profits and guaranteed monopolies,” said Jim Della-Giacoma, the group’s South East Asia project director. “The crony businessmen, military and party machine will still do well but will need to play by new rules, meet domestic and foreign competition and even pay taxes.”

Although economic reform will bring significant changes, especially for key pillars of the old regime, there have been few efforts to disrupt the project. Previously privileged businesses understand the advantage of joining a growing and competitive global economy. Instead of pushing back, elites – still hugely advantaged – are attempting to distance themselves from a history of official privilege and participate fully in the new economy. In addition, the recent resignation of Vice President Tin Aung Myint Oo, often regarded as an obstacle to economic restructuring, may aid the reform project, the report said.

President Thein Sein still faces many challenges, however. The government’s limited experience and technical capacity hinder the speed and effectiveness with which sweeping new policies can be implemented. This deficit may be particularly telling when policies require swift adjustment, according to the ICG.

It said conomic reform cannot be achieved without the promise of political stability. Similarly, governance transition cannot be successful without the guarantee of economic growth and equity, including quick-impact measures that produce a tangible effect on the lives of the bulk of the citizenry, such as improved access to electricity, land law reform, better public transport, cheaper telecommunications and lower informal fees of the kind that block access to health and education services.

With the success of political and economic reforms inextricably linked and the potential benefits in the country’s transformation great, Burma’s government, military, business elites and ordinary people alike should welcome and work to adopt them, it said.

But, it said international community support remains vital as well, including continuation of the process of removing sanctions imposed against the old regime. It would be highly counterproductive, for example, were the US to retain its ban on imports, as a Senate committee recommended this month, said ICG.

“In order for the economic reform process to be successful, the political transition must go smoothly as well,” said Paul Quinn-Judge, the group’s acting Asia program director. “But there also needs to be the assurance of economic stability to help the government successfully move on from its authoritarian past. Both are crucial for Myanmar’s advancement.”
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DVB News - NGO warns of ‘second tragedy’ in western Burma
By RAY BYRNE
Published: 30 July 2012

An official from Médecins Sans Frontières (MSF) expressed concern that parts of Arakan state may face a “second tragedy” if medical personal are kept from providing aid to those in need.

The organisation was forced to withdrawal senior personnel on 17 July due to a backlash from rumours about the group’s funding and intentions that have been circulating by social media outlets and leaflets.

Vickie Hawkins, deputy head of mission in Burma from MSF-Holland, denied rumours that weapons were found in an MSF building and that funding for the organisation comes from Islamic financial backers.

“We reject the rumours,” said Hawkins. “They are totally untrue. The main concern for us is access to the people who have been displaced. They are the worst affected.”

Once such leaflet states that MSF is, “A Holland and French NGO that is importing arms for [Kalars] to occupy Rakhine state.” Kulars is a pejorative term used to describe people of South Asian descent in Burma.

The rumours arose last month following the outbreak of violence in Arakan state aimed at the area’s Muslim Rohingya population. MSF employee Kyaw Hla Aung was arrested on 13 June “under existing law.”

On 6 July, MSF confirmed that six local staff had been detained, with one later being released.

Hawkins refused to comment on the individual cases.

MSF premises in Arakan state have been searched multiple times by government officials according to Hawkins, however; none of the searches have turned up any weapons or evidence of them.

“The government has assured us that they are happy with us,” said Hawkins in reference to the searches.

The accusations of MSF’s funding being drawn from Islamic backers has also been deemed baseless and an attempt to undermine healthcare efforts.

According to MSF’s 2010 financial statements, the latest available, the organisation received donations from 5 million individuals and private institutions totaling 943 million euros that year. These donations accounted for 91 percent of total donations. Only seven percent was attributed to public institutional income and two percent was marked as “other income.”

The disruptions come at an unfortunate time. Burma’s rainy months mark the beginning of malaria season, where cases of the deadly virus peak.

Malaria is one of Burma’s leading killers and Arakan state is an area where infection rates are particularly high. In 2010, MSF tested more than 400,900 patients in Arakan and treated more than 122,380 individuals.

“We could see increased rates of malaria again. If it were to get to that stage it would put us back a lot,” said Hawkins.

The accusations leveled at MSF signal larger distrust of aid groups working in Arakan state. The same leaflet promises to describe, “how disgusting and terrifying the UN and NGOs are.”

“Not only Rakhine [Arakan] but also all the people know that [Kalars] have grown up thanks to UN and NGOs that have watered poisonous plants,” the leaflet states. “We recognize those, who work for the further development of [Kalars] by earning dollars, as traitors.”

On 5 July, the UN Office for the Coordination of Humanitarian Affairs (OCHA) reported that some of its staff were being held for “questioning.” Reports from the Narinjara news website stated that three of the UN officials appeared in Maungdaw District Court on 10 July. One was identified as Cholaymar Khatoon.

The leaflet takes direct aim at a number of NGOs but has its harshest criticisms for the United Nations High Commission on Refugees (UNHCR) and the World Food Programme (WFP), threatening both with attack.

Representatives of human rights organisation Amnesty International have also emphasised the importance of providing displaced peoples with assistance at this time.

“The human rights and humanitarian needs of those affected by the violence depend on the presence of monitors and aid workers,” said Benjamin Zawacki, Amnesty International’s Burma Researcher in a statement issued by the organisation on 20 July.

On Wednesday, Aung San Suu Kyi used her first speech in parliament to call for greater recognition of minority rights, but failed to mention the Rohingya’s plight by name leading some to say that she is not going far enough in her calls for equality.

MSF has been working in Burma since 1992 in close collaboration with the Ministry of Health, including in the areas of malaria and HIV/AIDS prevention and treatment.

The organisation is the largest single provider of antiretroviral treatment (ART) for HIV/AIDS in Burma and provided 623 patients in Rakhine state with ART in 2011.

MSF operates 24 clinics and 10 malaria field sites throughout the country.

-Ray Byrne is a pseudonym for a journalist working inside Burma.
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DVB News - Suspects detained after NLD member murdered
By AYE NAI
Published: 30 July 2012

Police in Magwe division’s Pwintbyu township have arrested two men, including a member of the ruling Union Solidarity and Development Party, in connection with the bloody murder of a rival opposition party member.

Ye Win, National League for Democracy party’s campaign committee member in Pwintbyu’s Thamanyin village, died on 25 July after he and a friend, Kyi Maung, were attacked by a group of men armed with swords.

Kyi Maung managed to escape after sustaining minor injuries and called out for help while fleeing. Villagers, who arrived at the scene, found Ye Win dumped in a nearby pond with several lacerations across his head.

Aung Win, NLD chairman in Pwintbyu, said Ye Win succumbed to his injures and died on the way to hospital but was able to identify the men who attacked him before passing.

“Before Ko Ye Win died, he was able to tell the [villagers] there were eight attackers including ‘that guy Win Maw’”, said Aung Win.

The suspects were identified as residents from Thamanyin and nearby Thayetgon and Thamongon villages. Police arrested four people and are currently holding USDP member Win Maw and a local resident named Tun Tun.

Win Maw was being investigated by officials after being accused of exhorting locals in an electricity scheme. Ye Win helped bring attention to Win Maw’s illicit activities.

The NLD member was known in the area for standing up to authorities and shining a light on the mistreatment of local residents.

According to the villagers, Ye Win and Win Maw had also harbored a feud during the campaign season that preceded the country’s by-elections in April. Win Maw is also known to be a close confidante of Magwe division’s Agriculture and Irrigation Minister Aung Naing.

Pwintbyu’s Police were unavailable for comment.