Monday, January 18, 2010

US citizen in solitary confinement in Myanmar
Tue Dec 29, 3:48 am ET


YANGON, Myanmar (AP) – An American jailed in Myanmar was placed in solitary confinement after ending a 12-day hunger strike, prompting the U.S. Embassy to request his return to a standard prison cell, an embassy official said Tuesday.

Myanmar-born Kyaw Zaw Lwin was arrested Sept. 3 when he arrived at Yangon airport and has been jailed since without facing formal charges.

He started a hunger strike on Dec. 4 to protest conditions of political prisoners in Myanmar, according to human rights groups.

Kyaw Zaw Lwin told a consular officer, who visited Monday, that he ended his hunger strike Dec. 15 and was subsequently placed in solitary confinement, said embassy spokesman Richard Mei.

Mei said the embassy sent a diplomatic note to authorities in the military-ruled country asking "to have him returned to a normal prison cell."

Kyaw Zaw Lwin, who is also known as Nyi Nyi Aung, said he was receiving regular medical care, Mei said. The U.S. Embassy was last granted consular access on Dec. 3.

"His health has improved and he looks much better than he did at our last meeting," said lawyer Nyan Win, who said the court based inside the notorious Insein Prison would decide Jan. 1 whether to charge him. Insein is known for holding political prisoners, including Nobel Peace Prize laureate Aung San Suu Kyi, who was tried in the prison's court earlier this year and sentenced to another 18 months of house arrest.

When Kyaw Zaw Win made a court appearance in court on Dec. 18, lawyers said he looked thin and weak.

Kyaw Zaw Win was initially accused of trying to stir up unrest — which he has denied. Prosecutors later asked the court to charge him with forgery and violating the foreign currency exchange act.

Under Myanmar's legal system, defense and prosecution spend initial sessions presenting their case so the judges can determine whether to formally charge the defendant and proceed with the trial. Nine prosecution witnesses have testified so far.

His mother is serving a five-year prison term for political activities and his sister was sentenced to 65 years in prison for her role in the 2007 pro-democracy protests, activist groups and family members said.
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INTERVIEW-Bangladesh to import power, gas from Myanmar
Sun Dec 27, 2009 5:36pm IST

By Serajul Islam Quadir

DHAKA, Dec 27 (Reuters) - Bangladesh intends to import gas and electricity from Myanmar, a senior government official said, as it looks to boost energy supplies to help spur faster economic growth.

Bangladesh Foreign Secretary Mohamed Mijarul Quayes said the issue would be a focal point of two days of secretary-level bilateral talks starting in Dhaka on Tuesday.

"They will include Dhaka's plans to import natural gas and power -- which Myanmar has in excess and is ready to sell -- to meet our growing demand," Quayes told Reuters in an interview.

"We will discuss establishing a hydroelectric plant in Myanmar to import power from there ...

"We will also discuss ways to send back Myanmar Muslim refugees huddled in and outside camps in Bangladesh, who are proving to be a formidable burden on this poor and crowded country."

More than 28,000 Myanmar Rohingya Muslims have been living in two UNHCR-run camps in Bangladesh's south-eastern Cox's Bazar district.

Officials and experts have said Bangladesh needs to increase power and gas supplies from sources within and outside the country to spur development, fight poverty and push economic growth beyond a figure of around 6 percent.

Prime Minister Sheikh Hasina's government, which took office in January vowing to address these issues, is hopeful of substantially adding power to the national grid over the coming years.

Bangladesh now produces up to 3,800 megawatts (MW) of electricity daily, leaving a shortfall of between 1,200 and 1,500 MW, energy officials said.

Bangladesh has 7.2 trillion cubic feet (tcf) of proven gas and 5.5 tcf probable gas reserves, which will be exhausted over the next few years, they said.

Some 250,000 Rohingya who fled across the border from Myanmar in early 1992 trying to escape alleged persecution by Yangon military junta, but majority of them had been repatriated by the UNCHCR late that year. The others refused to go back.

Cox's Bazar officials say around 300,000 Rohingyas are also living illegally outside the camps -- often mingling with local Muslims and competing with them for a meagre supply of jobs.

"The Rohingyas will be a major issue in the discussion (on Tuesday-Wednesday)," Quayes said, giving no details.

Dhaka and Yangon will also discuss ways to eliminate problems relating to business visas and about introducing direct letters of credit for augmentation of trade.

Trade volumes between the two countries are currently very low.

Myanmar and Bangladesh share about 320 kilometres (200 miles) of border, partly demarcated by the Naf river.
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ONGC to Lend $857 Million to Unit for Myanmar Project
By Rakteem Katakey

Dec. 29 (Bloomberg) -- Oil & Natural Gas Corp. will lend 40 billion rupees ($857 million) to its overseas unit investing in a gas project off Myanmar’s coast as India’s biggest explorer seeks to meet rising fuel demand at home.

“For us it makes more sense to invest in assets through ONGC Videsh Ltd. than put the money in banks,” ONGC Chairman and Managing Director R.S. Sharma said in a telephone interview today. The interest-free loan has no maturity date, Sharma said.

ONGC, the New Delhi-based producer of almost 25 percent of the crude oil used by Asia’s third-largest energy-consuming nation, is seeking to diversify its supplies and keep pace with India’s growing fuel needs. The company plans to get the equivalent of 60 million metric tons of oil, or more than double its output in India, from overseas fields by 2025.

“There are limited number of opportunities at home,” said Apurva Shah, head of research at Prabhudas Lilladher Pvt. in Mumbai. “Given that there is going to be some serious growth in domestic demand in the years to come, ONGC needs to get its hands on whatever assets it can get.”

India is competing with China for energy assets worldwide as output from domestic fields declines. ONGC bought Imperial Energy Plc for 1.4 billion pounds ($2.2 billion) this year to gain access to oilfields in Russia. Chinese companies have announced plans to spend at least $16 billion on oil and gas fields in Africa.

ONGC declined 1.3 percent to close at 1,181.55 rupees in Mumbai trading, compared with a 0.2 percent gain in the benchmark Sensitive Index of the Bombay Stock Exchange. The stock has climbed 77 percent this year.

Myanmar Gas

ONGC has a 17 percent stake in the Shwe, Shwe-Phu and Mya areas in the A-1 and A-3 blocks in Myanmar, estimated to hold between 4.5 trillion and 7.7 trillion cubic feet of natural gas.

Daewoo International Corp. is the leader of the group that’s developing the fields and owns a 51 percent stake. Myanmar Oil & Gas Enterprise holds a 15 percent share, while GAIL India Ltd. and Korea Gas Corp. have 8.5 percent each.

The group will supply 500 million cubic feet of gas a day from the fields to China National Petroleum Corp., Daewoo International said on Aug. 25. The venture plans to start deliveries in May 2013.

“ONGC Videsh will start repaying the loan when they start generating cash from the project,” Sharma said. The loan requires the approval of the Cabinet, he said.

Project Infrastructure

The group is in talks with China National Petroleum to build an 825-kilometer (513-mile) overland pipeline to transport the cleaner-burning fuel to the world’s fastest-growing major economy. ONGC has the “option” to buy a share in the pipeline, R.S. Butola, managing director of ONGC Videsh, said on Oct. 6.

Daewoo International awarded a $1.4 billion contract to Hyundai Heavy Industries Co. to build an offshore production platform, offshore pipelines and a land terminal at the Myanmar fields by 2012, the South Korean company said on Nov. 2.

Proven reserves in the country formerly known as Burma reached 17.5 trillion cubic feet at the end of last year, equivalent to a fifth of Australia’s reserves, according to the BP Statistical Review.
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India eyes stake in Chinese gas pipeline
Published: Dec. 29, 2009 at 11:17 AM


NEW DELHI, Dec. 29 (UPI) -- India's state-owned Oil and Natural Gas Corp. and Gas Authority of India Ltd. could take a 12.5-percent stake in a Chinese gas pipeline in the Bay of Bengal.

Government officials are said to be considering a $251 million investment for GAIL and ONGC Videsh, the overseas division of ONGC, for the 540-mile gas pipeline planned by the China Petroleum Corp.

CNCP is considering the pipeline in Myanmar to supply natural gas from offshore blocks in the Bay of Bengal, The Economic Times of India reported.

Daewoo recently doled out a $1.4 billion contract to develop pipelines and onshore infrastructure at the Myanmar fields.

CNPC is offering a 49.9 percent stake in the pipeline to developers of two gas fields in the region, the Times said.
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New York Times - In Southeast Asia, Unease Over Free Trade Zone
By LIZ GOOCH
Published: December 28, 2009


KUALA LUMPUR — When the clock strikes midnight on New Year’s Eve, China and 10 Southeast Asian nations will usher in the world’s third-largest free trade area. While many industries are eager for tariffs to fall on everything from textiles and rubber to vegetable oils and steel, a few are nervously waiting to see whether the agreement will mean boom or bust for their businesses.

Trade between China and the 10 states that make up the Association of Southeast Asian Nations has soared in recent years, to $192.5 billion in 2008, from $59.6 billion in 2003. The new free trade zone, which will remove tariffs on 90 percent of traded goods, is expected to increase that commerce still more.

The zone will rank behind only the European Economic Area and the North American Free Trade Area in trade volume. It will encompass 1.9 billion people. The free trade area is expected to help Asean countries increase exports, particularly those with commodities that resource-hungry China desperately wants.

The China-Asean free trade area has faced less vocal opposition than the European and North American zones, perhaps because existing tariffs were already low and because it is unlikely to alter commerce patterns radically, analysts say.

However, some manufacturers in Southeast Asia are concerned that cheap Chinese goods may flood their markets, once import taxes are removed, making it more difficult for them to retain or increase their local market shares. Indonesia is so worried that it plans to ask for a delay in removing tariffs from some items like steel products, textiles, petrochemicals and electronics.

“Not everyone in Asean sees this F.T.A. as a plus,” said Sothirak Pou, a visiting senior research fellow at the Institute of Southeast Asian Studies in Singapore.

Asean and China have gradually reduced many tariffs in recent years. However, under the free trade agreement — which was signed in 2002 — China, Indonesia, Thailand, the Philippines, Malaysia, Singapore and Brunei will have to remove almost all tariffs in 2010.

Asean’s newest members — Cambodia, Laos, Vietnam and Myanmar — will gradually reduce tariffs in coming years and must eliminate them entirely by 2015.

Most of the goods that will become tariff-free in January — including manufactured items — are currently subject to import taxes of about 5 percent. Some agricultural products and parts for motor vehicles and heavy machinery will still face tariffs in 2010, but those will gradually be phased out.

In recent years, China has overtaken the United States to become Asean’s third-largest trading partner after Japan and the European Union. The overall trade balance has shifted slightly in China’s favor, although there are significant differences among Southeast Asian countries’ trade balances, said Thomas Kaegi, head of macroeconomic research for the Asia-Pacific region at UBS Wealth Management Research.

Singapore, Malaysia and Thailand have only small trade deficits with China, while Vietnam’s has grown substantially in recent years. In 2008, Vietnam exported items worth $4.5 billion to China but imported about $15.7 billion worth of Chinese goods.

In Indonesia, the textile and steel industries are particularly nervous about the lifting of tariffs, prompting the government to say that it would ask for a delay on some provisions. No time frame for submitting the request was given, but the Asean secretariat said it had not yet received an official request.

While competing with more Chinese imports may pose new challenges for Asean manufacturers, analysts say increasing their access to the 1.3 billion people of China could produce significant benefits.

Rodolfo Severino, who was secretary general of Asean from 1998 to 2002, identified Malaysia — which already exports palm oil, rubber and natural gas to China — as one of the countries that might benefit most from the removal of tariffs.

But nations like Vietnam that focus on the production of cheap consumer goods are more likely to be hurt, said Mr. Severino, head of the Asean Studies Center at the Institute of Southeast Asian Studies in Singapore.

Those countries may need to look for new export products and identify new niche markets, he said: “This is the nature of competition.”

Song Hong, an economist, expects that China will import more agricultural goods, like tropical fruit, from countries like Thailand, Malaysia and Vietnam when the trade area takes effect. That could hurt Chinese farmers in southern provinces like Guangxi and Yunnan, said Mr. Song, director of the trade research division at the Institute of World Economics and Politics at the Chinese Academy of Social Sciences in Beijing.

Mr. Sothirak, who was Cambodia’s minister of industry, mines and energy from 1993 to 1998, said the removal of tariffs might help increase Cambodia’s agricultural exports to China. Cambodia needs to diversify its export markets because its exports to the United States and Europe have declined, he said.

While he does not hold much hope that Cambodian textile exports would be able to compete with China’s highly developed garment industry, he said he believed the free trade area might entice more Chinese garment factories to set up operations in Cambodia, where production costs and labor are cheaper.

Pushpanathan Sundram, deputy secretary general of Asean for Asean Economic Community, acknowledged that there would be “some costs involved” for some countries when the free trade area took effect, but he said he believed China and Asean would “mutually benefit.”

Despite the expectations for increasing trade, Mr. Severino predicted that the introduction of the trade zone would not be a “breakthrough event” setting off a dramatic surge in commerce come January.

“There are many factors that traders and investors consider, and the trend has been going this way anyway,” he said. “What this does is to send out good signals and show the determination of governments to make things easier.”
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Dec 29, 2009
Straits Times - Myanmar frees 130 fishermen


YANGON - MILITARY-RULED Myanmar has released 130 foreign fishermen who were jailed last month following their arrest for illegal fishing, a prison official told AFP on Tuesday.

The group, which was held in Yangon's notorious Insein jail, was made up mostly of Indonesians and included 14 Filipinos, one Chinese and four Taiwanese nationals, the official told AFP on condition of anonymity.

Taiwan's foreign ministry confirmed on Monday that an unspecified fine had to be paid before its four nationals could leave, but the prison official did not reveal the conditions for the release of the other foreigners.

The group were arrested last month from 10 illegal fishing vessels and sent to Insein prison for poaching in Myanmar's waters - the country's largest arrest for illegal fishing in decades, officials said. They were later charged with violating immigration laws.

The official said the Indonesians were still waiting at the prison 'as their embassy has to arrange air tickets for them'. Seven Myanmar nationals who were arrested with the group were also being released, he said.

An Indonesian embassy source confirmed that they were planning to send the 111 Indonesian fisherman back home soon.
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Moderate earthquake hits Myanmar NW division
www.chinaview.cn 2009-12-29 19:21:57


YANGON, Dec. 29 (Xinhua) -- An earthquake measuring 5.4 on the Richter scale struck Myanmar's northwestern Sagaing division Tuesday afternoon, according to the Meteorology and Hydrology Department.

The earthquake, which occurred at 3:34:12 p.m. local time (about 0904 GMT) was centered at 24.4 degrees north latitude and 94.858 degrees east longitude, about 8 kilometers northeast of Paungbyin township and 56 km south of Homemalin township.

No further report about the casualties is immediately available.
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Myanmar agrees to take back 9,000 of its nationals from Bangladesh
www.chinaview.cn 2009-12-29 19:44:00


DHAKA, Dec. 29 (Xinhua) -- Myanmar Tuesday agreed to take back soon around 9,000 of its nationals out of 28,000 who are staying in two camps as registered refugees in Bangladesh's southeastern district of Cox's Bazar, 391 kms southeast of capital Dhaka.

Myanmar Deputy Foreign Minister Maung Myint who held talks with Bangladeshi Foreign Secretary Misarul Quayes in Dhaka agreed to repatriate the refugees soon as Bangladesh side handed over a list of 28,000 Myanmar nationals registered by the United Nations High Commissioner for Refugees (UNHCR) as refugees.

Briefing reporters on the outcome of the 4th Foreign Secretary level consultations, Quayes said remaining registered refugees will also be repatriated after verification by the Myanmar government about their nationality.

Quayes said apart from 28,000 registered refugees, many Myanmar nationals sneaked into Bangladesh on economic reasons and are staying in makeshift camps in Cox's Bazar as undocumented refugees.

The Foreign Secretary said they raised the matter during the talks and the Myanmar side agreed to repatriate them back after verification.

The refugees, popularly known as Rohingyas, from Myanmar started entering Bangladesh since early 1990s. So far 236,000 refugees were sent back over the decades with the help of the UNHCR.
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12-28-2009 16:31
Korea Times - Asian Monetary Fund to Debut in March
By Yoon Ja-young, Staff Reporter


Korea will join in the creation of an Asian version of the International Monetary Fund (IMF) next March by teaming up with with ASEAN member countries and China and Japan, the Ministry of Strategy and Finance said Monday.

The fund based on the Chiang Mai Initiative is expected to enhance member countries' ability to cope with short-term foreign currency volatility triggered by external shocks..

Finance ministers and central bank governors of the ASEAN member states and Korea, China and Japan announced the signing of the Chiang Mai Initiative Multilateralization (CMIM) Agreement, Monday.

The multilateral financial support program, which will make an official debut on March 24, includes the 10 member countries of ASEAN - Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam - and three Northeast Asian countries of Korea, China and Japan.

It is based on the Chiang Mai Initiative (CMI), in which the countries in Asia agreed to support each other with dollar liquidity in times of crisis. The need for the safety net especially increased following the Asian financial crisis, which also hit Korea in 1997.

While the CMI was a Bilateral Swap Arrangement between Vietnam, Cambodia, Laos, Brunei, and Myanmar, and Korea, China and Japan, the agreement this time is a multilateral one between the 13 countries.

"At this time, we reiterate the importance of the CMIM in strengthening the region's capacity to safeguard against increased risks and challenges in the global economy," the ministers and central governors of the member countries said in a joint statement.

"The CMIM, with the total size of $120 billion, will provide financial support through currency swap transactions to CMIM parties facing balance of payments and short-term liquidity difficulties," they added in the announcement.

If a member country seeks support, central banks of other member countries will provide dollars, while the recipient country will give its domestic currency in exchange.

For the $120 billion fund, Korea contributed 16 percent or $19.2 billion, while China and Japan provided 32 percent, each. Indonesia, Malaysia, Thailand, Singapore gave 3.97 percent, while the Philippines gave 3.07 percent. Brunei, Cambodia, Laos, Myanmar, and Vietnam accounted for less than 1 percent of the fund.

When Korea suffers a dollar shortage, it can seek up to $19.2 billion in support from the fund.

"Korea took a bigger share in the fund compared to its economic size, setting up ground to expand its influence within the region," the ministry said.

Among ASEAN plus three, Korea accounts for 8 percent of total GDP, and 6.4 percent of the region's total foreign exchange reserves.

"The launch of the CMIM is an important accomplishment upgrading intraregional financial cooperation, including the capability to cope with a short-term liquidity crisis," the ministry added.
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Bangladesh News 24 hours
Myanmar deputy minister arrives for talks
Mon, Dec 28th, 2009 9:14 pm BdST


Dhaka, Dec 28 (bdnews24.com)—Myanmar deputy foreign minister Maung Myint arrived in city on Monday to lead his country's delegation at foreign secretary-level talks, which are likely to feature the thorny issue of Rohingya refugees entering Bangladesh from the neighbouring state.

The two-day talks between Bangladesh and Myanmar starts on Tuesday at foreign ministry.

"Deputy foreign minister Maung Myint and two officials of Myanmar have already arrived," Saida Muna Tasneem, a foreign ministry director general (external publicity), told bdnews24.com Monday.

She said foreign secretary Mohamed Mijarul Quayes will lead Bangladesh side while Myint, who holds the status of foreign secretary, will head the five-member team of his side.

Quayes recently told journalists that Bangladesh would press its neighbour to stop pushing Rohingya refugees into Bangladesh territory.

Myanmar's Muslim people from the Northern Rakhain state have been crossing into Bangladesh in large number since 1991 to escape persecution by the rulers there.

The United Nations High Commissioner for Refugees set up camps in Bangladesh to repatriate the Rohingya people.

Some 28,000 out of 500,000 Rohingya refugees registered in 1992 have been living in the refugee camps in Bangladesh's Cox's Bazar district. But many of those repatriated under the UNHCR returned into Bangladesh and now mingle with local people for fear of repression in their homeland.

Local officials say almost all of the repatriated Rohingyas have intruded into Bangladesh again and have been creating social problems.

According to international law, host country cannot force repatriation of refugees.

The foreign secretary also said the discussion will also feature introduction of banking facilities between Bangladesh and Myanmar to increase business activities between the two counties.
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The Nation - PTT can sign natural-gas MoU with Burma
By Chalida Ekvitthayavechnukul
Published on December 29, 2009


The PTT Group has received permission to sign a memorandum of understanding to purchase natural gas from Burma's Zotica Block, as part of Thailand's natural-gas supply plan.

The block can produce 300 million cubic feet per day. Of that, 240 million cubic feet will be supplied to Thailand and the rest used in Burma.

The MoU is worth more than US$1 billion (Bt33.29 billion) and will see a supply of gas for 25-30 years starting in 2013, said Energy Minister Wannarat Charnnukul.

Wannarat yesterday chaired a meeting of the National Energy Policy Committee, which endorsed a five-year supply plan. Demand is expected to increase to 5.142 billion cfpd by 2015.

The plan will help alleviate the Kingdom's electricity consumption of 6,890 megawatts, as per a second revision of the 2007 power-development plan (PDP).

Natural-gas demand is forecast to grow 6 per cent a year overall, with annual demand from power plants to expand 3.3 per cent, the industrial sector 11 per cent and the transportation sector 23 per cent.

The natural-gas supply plan is scheduled to be ready early next year.

The committee yesterday also approved a tariff MoU between the Electricity Generating Authority of Thailand (Egat) and Laos, aimed at purchasing electricity from the Nam Nguem 3 power plant in that country.

"We plan to collect a fee of Bt2.65 per unit of electricity, but Egat must negotiate the MoU with all of the stakeholders again," Wannarat said.

The Nam Nguem 3 project has a capacity of 440MW and will start operations in 2017. There are four stakeholders: GMS Laos (27 per cent), Marubeni (25 per cent), Ratchaburi Electricity Generating Holding (25 per cent) and the Lao government (23 per cent).

The PTT Group will have to shoulder a Bt20-billion burden for liquefied petroleum gas and natural gas for vehicles next year.

Of that amount, Bt15 billion will be spent on imports of LPG and the rest for the loss incurred in maintaining the retail NGV price at Bt8.50 a kilogram.

President and CEO Prasert Bunsumpun yesterday said domestic demand for LPG was expected to increase next year in line with the Kingdom's economic growth, or 3 per cent.

"Isn't it about time the government considered adjusting fuel prices to reflect the real cost?" said Prasert, adding that crude oil was expected to be quoted at US$70 to $80 (Bt2,300 to Bt2,700) per barrel next year.

Oil demand will increase to 1 million barrels per day, or 90 per cent of the Kingdom's refinery capacity.

The 3-per-cent rise in LPG consumption will have to be met by imports.

The petrochemical industry uses 100,000bpd of oil, the export sector 100,000-200,000bpd and domestic consumption 700,000bpd.
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Burmese-American charged with another case
Tuesday, 29 December 2009 20:11
Myint Maung

New Delhi (Mizzima) – US citizen Nyi Nyi Aung standing trial in Insein Prison was charged with yet another case today, this time by the Immigration Department, his lawyer said.

He is facing trial in three cases in Rangoon South District court sitting inside Insein prison. During today’s hearing the Botataung Township Immigration Department filed another case against him.

“Another case was filed against him today under section 6(3) of the 1949 Immigration Act, for making a wrong statement and entering with his ID. The Botataung Township Immigration Department Officer lodged a direct complaint in court. The court will pronounce its views on this complaint on 1 January 2010,” his lawyer Nyan Win said.

The defence lawyers argued on the first three cases today on behalf of their client Nyi Nyi Aung a.k.a. Kyaw Zaw Lwin (40) on whether he should be formally charged by the court as the public prosecutor had accused in the indictment or the charges dropped. Today’s trial was attended by the Vice-Consul from the US Embassy in Rangoon.

The former student activist fled to the Thai-Burma border after the army staged a coup in 1988. He resettled in the US later. He was alleged to have entered Burma eight times. Intelligence personnel arrested him when he arrived at the Rangoon Mingaladon airport via Bangkok on 3 September this year.

First he was charged under section 420 (fraud), 468 (forgery of national ID) of the Penal Code and under section 24 of the Foreign Exchange Regulation Act. Now the Immigration Department has filed another case against him today under section 6(3) of the Immigration Act.
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The Irrawaddy - Will DKBA Join Border Guard Force?
By SAW YAN NAING - Tuesday, December 29, 2009


The Burmese regime's main ally in eastern Burma, the Democratic Karen Buddhist Army (DKBA), was the first armed ethnic group to announce its support for the military government's plan to order all cease-fire groups to join a united border guard force under Burmese army command.

However, since its enthusiastic endorsement of the proposal, the DKBA has shied away from official statements regarding its stance, while other armed ethnic cease-fire groups, such as the New Democratic Army-Kachin and the Karenni National People’s Liberation Front, were officially received at ceremonies in November marking their participation in the border guard force plan.

The DKBA has been strongly allied with the Tatmadaw––the Burmese name for the country's armed forces—since it signed a cease-fire agreement with the junta in 1995 following a split from its mother organization, the Karen National Union (KNU).

But now that other ethnic armies, such as the United Wa State Army (UWSA) and the Kachin Independence Organization (KIO), have rejected the junta's plan, the DKBA is under pressure to define its terms of allegiance to the Tatmadaw.

Burma analysts and observers who spoke to The Irrawaddy were divided on whether the DKBA would agree to the border guard scheme with several predicting that splits in the ranks will force the DKBA to rethink its policy.

General secretary of the KNU Zipporah Sein said that some DKBA battalions will become border guard forces under the Tatmadaw, but others will return to the KNU.

Several hundred DKBA members have defected to the KNU since April, reportedly in disagreement with the leadership's acceptance of the border guard plan, a move they see as submitting to the junta, their traditional enemy.

Sources close to the DKBA said the leadership aims to expand the number of the militia's troops from 6,000 to 9,000 in preparation for a transfer to border guard force units.

Under the border guard order, each battalion would be made up of 326 troops, including 18 officers, many of whom would be installed from the Tatmadaw's regional command.

Hsa Paw, a DKBA soldier who defected recently to the KNU, said that even though their leaders agreed to become border guard forces, many DKBA soldiers did not agree with the order. Many refuse to wear the insignia of the Burmese government army, he added.

Hsa Paw said that most of his friends who remained in the DKBA had told him that they would also defect to the KNU if forced to become border guard forces.

Karen sources in Mae Sot on the Thai-Burmese border agreed that many DKBA soldiers wanted to return to the KNU, but feared arrest or execution if caught deserting.

“I think it is difficult for them to return en masse,” said a Karen reporter in Mae Sot. “They will likely return a few at a time.”

Sources said disagreements are growing among the DKBA leaders over whether to accede to the junta's order.

Paw Kay, the editor of the Karen Information Center, said DKBA hardliner Col Chit Thu has previously stated that his organization is not “clever” at political maneuvering, but has agreed to serve as a border guard force commander with the aim of the DKBA controlling the entire Karen State, as promised by Naypyidaw.

Observers said cease-fire groups like the KIO, the UWSA and others have shown their hands on the issue, while the DKBA appears to lack any clear vision of whether to launch a military or political stand against the junta.

One DKBA source close to the leadership said the DKBA's political wing, the Democratic Karen Buddhist Organization (DKBO), will not contest the general election in 2010.

If the DKBA become border guard forces, the name of their organization will be changed by the junta and their monthly salaries will be provided by the Burmese government, according to Karen sources. Trade in DKBA areas will be controlled by the central government and the DKBA troops will generally only be assigned to border guard duties.

The Burmese regime, for its part, appears to be willing to allow the DKBA time to come round to its way of thinking. Naypyidaw is currently engaged in negotiations with cease-fire groups in northeastern Burma, such as the UWSA, to persuade them to become border guard forces. Many observers expect the UWSA and its allies to refuse the order, and a military confrontation to be ignited.

The same observers generally concur that the Burmese regime must concentrate on facing down the Wa and its allies in the north before turning its attention to the DKBA.

The DKBA leaders may therefore have a window of opportunity to persuade their commanders to accept the border guard proposal, but many sources doubt they can successfully convince enough troops to work and fight under the Burmese army's flag.

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