Burma Related News - Aug 25, 2005.

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BURMA RELATED NEWS - AUGUST 25, 2005.
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HEADLINES
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Reuters - Myanmar leader rumoured ousted, dips doubtful
Reuters - India says no China defence posts on Myanmar island
AP - Myanmar Coup Rumor Boosts Price of Gold
AP - Thai Premier: Myanmar Coup Rumors Not True
BBC News - Senior General Than Shwe: In or Out?
BBC News - Poverty hitting 600 million Asian children
NFB - Agreed minutes signed with Myanmar on avoidance of double taxation
Financial Express - Aiyar plans to woo China for mutual gains
FE - Asean: Unrealistic for US to observe E Asia Summit
The Korea Herald - Daewoo tie up with Indian companies
DVB News - A team of high-ranking Burmese officer to visit Russia soon
DVB News - Rice shortage in western Burma Arakan State
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Wednesday August 24, 11:52 PM
Myanmar leader rumoured ousted, dips doubtful

BANGKOK (Reuters) - Rumours swirled in army-ruled Myanmar and
neighbouring Thailand on Wednesday that junta leader, Senior General
Than Shwe had been removed, but diplomats in Yangon saw no signs of a
shakeup.

Reports suggested Than Shwe, head of a military junta which has ruled
the former Burma in various forms since 1962, had been ousted by number
two General Maung Aye, although Yangon was calm and people said there
was no extra security on the streets.

A Thai intelligence official said his organisation was trying to
determine the truth of the rumours in the absence of official comment
from the Yangon government.
"We've heard Maung Aye has seized power from Than Shwe, citing
allegations of corruption and his involvement in illegal trade of
weapons," he said.

He said Thura Shwe Man, the number three general in the ruling State
Peace and Development Council (SPDC), was rumoured to have been assigned
to investigate Than Shwe's alleged crimes.

However, Thai Foreign Minister Kantathi Suphamongkhon told reporters in
Bangkok: "So far, everything is just a rumour. I am still sticking to my
plan to visit
Myanmar late this month." In Yangon, state-run radio and television
carried no official comment on the rumours, which drove up the price of
gold and weakened the kyat currency.

Western and Asian diplomats said the reports of a coup appeared to be
untrue.

"There are lots of rumours but nothing confirmed. We are still of the
opinion that this was just unfounded rumour," said one Western diplomat.

The opposition National League for Democracy (NLD) agreed.

"So far as we can confirm, this rumour is more likely not to be true.
The situation across the city is quite normal," NLD spokesman Nyan Win
told Reuters.

RECLUSIVE REGIME

Soe Myint, editor of the pro-democracy Mizzima News Web site
mizzima.com, which is based in New Delhi, said there had been tension
among the generals for some time.

"From what I have heard, a five-member group of generals led by General
Maung Aye staged the coup during a weekly cabinet meeting on Monday," he
told Reuters in the Indian capital.

"The group accused Than Shwe of nepotism and said he was incapable of
running the country. Ever since, there has been a total blackout and
there has been no news from the cabinet meeting," Soe Myint said.

Than Shwe has not been seen on state television since August 20 when he
met U.N. envoy and former Indonesian Foreign Minister Ali Alatas, but
official newspapers on Wednesday reported his message of congratulations
to Ukraine on its independence day .

The former Burma has been ruled by the military in various guises since
a coup in 1962 and is reviled in the West for its alleged human rights
abuses and confinement of democracy icon Aung San Suu Kyi since May
2003.

Yangon says it is moving towards democracy along a seven-stage roadmap
it unveiled in August 2003.

However, critics say the roadmap has no credibility while Suu Kyi
languishes under house arrest and her party boycotts talks to draw up a
new constitution, which are to resume in December.

Than Shwe, 73 and an expert in pyschological warfare, seized the junta
leadership in 1992 with the help of General Khin Nyunt, who was ousted
as prime minister and military intelligence chief last October.
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India says no China defence posts on Myanmar island
Wed Aug 24, 2005 8:25 PM IST

PORT BLAIR, India (Reuters) - The chief of India's navy said on
Wednesday he believed a Myanmar official statement that there were no
Chinese military or intelligence facilities on Myanmar's Coco islands
near India.

For years, New Delhi has accused China of having naval listening posts
with personnel in the Coco islands in the Bay of Bengal, just 45 km
north of Indian's Andaman and Nicobar islands.

The Indian navy has kept a robust presence in the region, which is near
the Straits of Malacca, a vital sea trade route.

"According to the Myanmarese, there is no Chinese involvement in Coco
Island(s) and we believe them," Indian navy chief Admiral Arun Prakash
told reporters in Port Blair, the capital of the Andaman and Nicobar
island chain.

In February, Myanmar chief of naval staff Soe Thane visited India and
met Prakash, a sign of closer ties between New Delhi and Yangon.

"During his last visit to New Delhi, I had enquired about Coco Island
and ... in reply he invited us to visit the islands and check as,
according to him, there is no such (Chinese) threat," Admiral Prakash
said, adding that he would visit the Coco islands soon but did not give
a date.

In the past decade, relations between India and the military regime in
Myanmar have warmed after New Delhi shrugged off its unease about
dealing with the much-shunned Myanmar junta to counter Chinese influence
on its Southeast Asian neighbour.

Last November, the armies of both countries cooperated in
anti-insurgency operations near their land border after a visit to New
Delhi by Myanmar military ruler Senior General Than Shwe.

In May 1998, soon after New Delhi conducted a series of nuclear tests,
then Indian defence minister George Fernandes lashed out at China,
saying it was India's biggest potential threat and citing Beijing's
"massive electronic surveillance establishment" on the Coco Islands.

Myanmar denied it and Beijing expressed its "utmost regret and
resentment" at his comments.

Analysts said Prakash's remarks showed that India-Myanmar ties were
improving and boded well for efforts to build greater trust between
India and China. The Asian giants fought a brief border war in 1962.

"This shows a greater level of comfort between Myanmar and New Delhi,"
Uday Bhaskar, officiating director of New Delhi-based Institute for
Defence Studies and Analyses, told Reuters.

"It also helps in greater confidence-building and transparency in
Indo-Chinese ties."

Relations between Delhi and Beijing have improved in recent years, with
bilateral trade soaring and efforts being made to resolve the border
dispute.
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Wednesday August 24, 10:11 PM
Myanmar Coup Rumor Boosts Price of Gold

BANGKOK (AP) - Rumors of a coup in Myanmar's ruling military junta
weakened the Southeast Asian nation's currency and boosted the price of
gold in local trading Wednesday, business officials said, but there was
no confirmation of any changes in the government.

Myanmar's government did not officially deny the rumor, but an official
close to a high-ranking military leader insisted Senior Gen. Than Shwe
had not been removed. The official agreed to discuss the matter only if
not quoted by name.

Because information is tightly restricted, rumors are frequent in
Myanmar. The country's news-starved citizens rely on foreign radio
stations for information.

The rumors that Than Shwe was deposed by his deputy and a group of
military leaders spread after a report Tuesday night on the British
Broadcasting Corp.'s Burmese-language program, quoting a resident on the
Myanmar-China border.

The person told the BBC that Than Shwe had been forced to retire by his
deputy, Gen. Maung Aye, who is also the army commander in chief, because
of "nepotism and corruption."

The foreign minister of neighboring Thailand, Kantathi Suphamongkhon,
played down the report. "This rumor is still a rumor," he told reporters
in Bangkok, adding that he planned to visit Myanmar as scheduled Aug.
31-Sept. 1.

The rumor pushed up the U.S. dollar to 1,170 kyat on the black market
Wednesday from 1,150 kyat a day earlier, a money changer said, speaking
on condition of anonymity since such trading is illegal although
generally tolerated by the government.

A gold-shop owner said a tical of 24-carat gold, or .525 troy ounce,
rose to $236 from $232.

Myanmar's junta came to power in 1988 after crushing a pro-democracy
uprising. It refused to hand over power to Nobel peace laureate Aung San
Suu Kyi's party after its landslide election victory in 1990.

Than Shwe became the junta's leader in April 1992, when Gen. Saw Maung
was removed as chairman for "health reasons."
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Wednesday August 24, 11:15 PM
Thai Premier: Myanmar Coup Rumors Not True
By AYE AYE WIN, Associated Press Writer

YANGON, Myanmar - Thailand's prime minister said Thursday that rumors of
a coup within the ruling military junta in neighboring Myanmar were
baseless.

"We have received confirmation from all sources that the rumor of a coup
is not true. The rumor was spread by some faction, but it is not true,"
Prime Minister Thaksin Shinawatra said. He did not elaborate.

Rumors of an alleged coup spread across Myanmar over the past two days,
weakening the national currency and pushing up the price of gold, local
businesspeople said.

Rumors that ruling junta chairman Sr. Gen. Than Shwe was deposed by his
deputy, Gen. Maung Aye, and a group of military leaders spread rapidly
after a story Tuesday night on the British Broadcasting Corp.'s Burmese
program, quoting a resident on the Myanmar-China border.

The person told the BBC that Than Shwe was forced to retire by army
Commander in Chief Maung Aye because of "nepotism and corruption."

Myanmar's government did not officially deny the rumor, but an official
close to the high-ranking military leader insisted Than Shwe had not
been removed. The official agreed to discuss the matter only if not
quoted by name.

News-starved citizens of Myanmar rely on foreign radio stations for the
country's current events. Because information is tightly restricted,
rumors are frequent and tend to spread quickly.

Myanmar's current junta came to power in 1988 after crushing a
pro-democracy uprising. It refused to hand over power to Nobel laureate
Aung San Suu Kyi's party after its landslide election victory in 1990.

Former Prime Minister Gen. Khin Nyunt, also the former military
intelligence chief, was ousted last October in a major junta shake-up.

In April 1992, former junta chairman Gen. Saw Maung was removed from
office for "health reasons," after which Than Shwe became chairman of
the council.
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BBC News - 24 August, 2005
Senior General Than Shwe: In or Out?

Is Senior General Than Shwe still in power or has he been forced out of
SPDC?

Following yesterday's news reports that there has been a change of
leadership at the SPDC, government-owned newspapers today featured a
message from the Senior General to Ukraine to mark its independence.

Rangoon watchers say this is to show things remain unchanged.

Deposed or not?

A resident at the China-Burma border said on Tuesday the SPDC leader has
been forced to retire after 13 years in power by the "five-men group"
led by Deputy Sr. Gen Maung Aye.

He heard it from sources close to the Burmese military government. The
news cannot be confirmed independently.

However, this has not stopped both observers and residents from
analysing the situation.

Residents in Rangoon continue to believe he is now at No (1) Mingaladon
Military Hospital. But some say he could not be in a life-threatening
situation because his grandson turned up for an examination at his high
school looking unruffled.

News tightly controlled

In a country where news and access to news is tightly regulated and
highly controlled, it seems every move made by Sr. Gen Than Shwe's
family and closed circle is open to interpretation.

As such, observers find it difficult to ignore any rumours and
speculations because several previous instances have shown rumours to be
true.
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BBC News - 22 August, 2005
Poverty hitting 600 million Asian children

Around 600 million children in Asia live below national poverty lines,
severely deprived of basic needs such as food, healthcare and shelter,
according to an international children agency.

The agency Plan's report, published Monday, also estimates that nearly
five million children in Burma live in poverty. Observers say the
figures, based on United Nations' reports in 2003, are well below the
reality.

Plan says if the issue, brought about by factors such as scarce
resources, lack of access to education, healthcare, clean water and
sanitation and corruption, is not addressed soon, Asia's currently
booming economies will be adversely effected.

Street children in Burma

A resident of Rangoon who also does charity work for children describes
his experiences.

"Along the street near my house, children sit on chairs beneath plastic
sheets acting as roofs. They will sell things during the day and the
whole family sleep there at night."

He says lack of access to education plays a major role.

"To send a child to school, depending on its reputation, you will have
to pay around 350,000 to 400,000 kyats. This is under table (illegal)
payment. If you can't pay, you can't go to school."

Charity school a big hit

U Jotika, a Buddhist monk in Mandalay, is one of those who are hoping to
change this.

He is a vice-principal at Phaung Daw Oo monastic school, which is
currently looking after 6,000 students. He says the numbers are
increasing every year, ranging from 3 years old to high school students.

The school has built a hostel for orphaned students in the compound but
he is unable to do the same for those with parents even though most are
working-class and living hand-to-mouth.

Free education, anyone?

The Rangoon resident, meanwhile, worries for those in their teenage
years and what a life on the streets could do to them.

"It would be good if we could get back to free education. And when I say
free it must really be free. You can't say 'free' to the authorities and
then the children have to give gifts to the headmister or headmistress."
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News From Bangladesh
Agreed minutes signed with Myanmar on avoidance of double taxation
Thursday August 25 2005 08:12:40 AM BDT

Bangladesh and Myanmar yesterday signed an agreed minute to avoid double
taxation.

AS Zahir Mohammad, member (income tax policy) of National Board of
Revenue and UI Ko, deputy director general of revenue department of
Myanmar, signed the minute on behalf of their respective countries after
a three-day consultations in Dhaka.

After initialling the minute, Zahir told the news agency that the minute
will be sent to the law ministry for its vetting and place before
cabinet for approval before its final singing.

Bangladesh already singed such agreements with 25 countries to avoid
double taxation, he added.

The accord contained 30 articles about different matters to avoid double
taxation between the two countries. If the agreement is implemented, the
existing economic and trade relations between the two countries would be
strengthened. (The Independent)
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Financial Express
Aiyar plans to woo China for mutual gains
ANUPAMA AIRY
Posted online: Wednesday, August 24, 2005 at 0019 hours IST

NEW DELHI, AUG 23: India is keen on developing common strategic crude
oil storages with China and is also pushing hard for creating an energy
grid interconnection with its neighbour which will make the Asian gas
grid more viable and economical.

During his forthcoming visit to Beijing in November, petroleum minister
Mani Shankar Aiyar is also likely to propose that the Indo-Iran pipeline
be extended to China via Kazakhstan. ?There is already a talk of setting
up a pipeline from Kazakhstan to Iran,? an official said.

The official said India would propose a comprehensive memorandum of
understanding (MoU) for co-operation in the hydrocarbon sector. While
this will be the umbrella agreement in the oil and gas sector,
individual agreements would be signed between the national oil and gas
companies from both countries in refining, exploration and production
(E&P), gas and transnational pipelines.

According to the official, talks between China and Myanmar were on for a
gas pipeline. India, too, was looking at importing gas from Myanmar via
a pipeline.

?Therefore, pipelines carrying gas from various parts of Asia can be
inter-linked,? he added.

Diversification of crude/petroleum products supply sources through joint
co-operation to reduce dependence on the Middle-East crude will also be
discussed with China. ?CIS could be considered as the target region
against the Middle-East,? the official said.

Agreement for exchange of petroleum products across the border based on
logistics to minimise transportation cost is another item on India?s
agenda. Also, pursuing major refinery projects in third countries,
working together for increasing share of gas and encouraging clean coal
technology to reduce dependence on liquid fuel, were issues to be
discussed.

As India has a world class research and development (R&D) centre in
downstream hydrocarbon sector, a suitable co-operation with China in R&D
could also be envisaged, the official said. Other areas of co-operation
include exchange of knowledge on enhanced oil recovery from old oil
fields as well as technology for geographically complicated regions,
institutionalising a mechanism for collective participation in third
countries for oil and gas acquisitions.
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The Financial Express
Asean: Unrealistic for US to observe E Asia Summit
Posted online: Thursday, August 25, 2005 at 0000 hours IST

TOKYO, AUG 24 : Asian countries will not ignore US interests when they
hold an inaugural regional summit but they do not think President George
W Bush should be invited as an observer, a top ASEAN official said on
Wednesday.

Ong Keng Yong, secretary general of the 10-member Association of
Southeast Asian Nations (Asean), said he was sceptical about Japan?s
proposal to include the United States as an observer at the East Asia
Summit to be held in Kuala Lumpur in December. ?Whatever we are doing
with the East Asia Summit, we are not going to ignore US interests,?
said Ong, who is in Tokyo to hold meetings with officials and attend
forums. But Ong added that it would not be realistic to call on the US
president to come as an observer, while inviting a US secretary of state
instead would be insulting to the member nations? heads of state. ?Think
about it. It is a meeting of some 16 heads of state. And you have (US)
President (George W) Bush come as an observer?? ?So practically, there
is a problem with the idea of an observer.? Since the Asean plus China,
Japan, and South Korea decided to convene the East Asia Summit, there
has been heated debate on who it should include.

The United States continues to play a key role in Asia, but some Asian
countries say US involvement in the region sometimes amounts to meddling
in domestic or regional affairs. Australia bowed to regional pressure
and agreed to sign a mandatory peace pact to join the summit. India and
New Zealand are also expected to be inaugural participants. Asean groups
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand, Vietnam. Speaking to Reuters in an interview later
on Wednesday, Ong also said he hoped that army-ruled Myanmar, which last
month gave up the 2006 Asean chairmanship, would make enough progress on
national reconciliation to assume the chair in the near future. Ong made
the comments as rumours swirled in Myanmar and neighbouring Thailand
that junta strongman Senior General Than Shwe had been removed by the
powerful army commander. A Thai intelligence official told Reuters his
organisation was trying to determine the truth of the rumours in the
absence of official comment from the Yangon government. In late July,
Myanmar decided to skip its turn as chair of Asean, saying it would
instead focus on efforts to restore democracy. The decision defused a
simmering row between the Southeast Asian bloc and the West over the
junta?s lack of democratic reform and its detention of opposition leader
Aung San Suu Kyi. But the military, which has ruled since 1962, is still
on the first step ? drafting a new constitution that has been assailed
by critics as a document aimed at maintaining the military?s sway.
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The Korea Herald - 2005.08.25
Daewoo tie up with Indian companies

Daewoo International Corp. announced yesterday that India-based Oil and
Natural Gas Corp., Gail Ltd. and Korea Gas Corp. agree to invest in its
gas-drilling project in Myanmar.

According to the statement, Daewoo holds the majority stake of 60
percent in this project with ONGC and the other two companies investing
20 and 10 percent, respectively.

Three to ten trillion cubic feet of natural gas is estimated to be
buried in Daewoo's mining area, which is located on the west shore of
the country.

Lee Tae-yong, CEO of Daewoo International, said, "The co-investment
decisions made by the largest natural gas distributor in Korea and India
guarantee prospective purchasers as well as diversifying risks of the
project." (kkt@xxxxxxxxxxx)
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A team of high-ranking Burmese officer to visit Russia soon

Aug 24, 2005 (DVB) - While rumours about Burma?s military junta, State
Peace and Development Council (SPDC) chairman Gen Than Shwe have been
flying in Rangoon, a team of high-ranking Burmese army officers are
planning to visit Russia soon, according to sources close to the
military HQs in Rangoon.

The sources told DVB that the team is likely to be headed by the SPDC
vice-chairman Gen Maung Aye or Gen Shwe Mann. Although neither the exact
time nor purpose of the trip is not known, it could be related to the
top military secret ?nuclear? project at Kyaukse, Mandalay Division in
central Burma.

The project was suspended recently after high-raking military officials
at the Prime Minister Office and Than Shwe?s confidante education
minister Than Aung were removed from their positions.
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Rice shortage in western Burma Arakan State

Aug 23, 2005 (DVB) - An acute shortage of staple rice at villages within
Sittwe (Akyab) and Ponnakyun Townships, Arakan State in western Burma,
caused by the monopolisation on rice trade by the Burmese army and a
merchant organisation, is leaving many people at risk of hunger.

A local resident told DVB that the restrictions on rice transportation
from towns to surrounding villages by the army are also causing rice
price hike in rural areas making poor villagers harder to survive. Rice
merchants have to bribe army checkpoint controllers hundreds of
thousands of kyat for the permission to transport
rice to villages, prompting unnecessary price hike.

At the same time, people living in the towns are also facing starvation
due to lack of jobs, the resident added.

The mountainous Arakan State is rich in natural resources, especially,
offshore natural gas, seafood and forest produces, but large amount of
rice has to be imported from neighbouring regions.

A severe rice shortage in 1967 caused a major uprising at the state
capital Sittwe and up to 100 hungry rice 'looters' were reportedly shot
dead by Burmese soldiers on Aug 13. Arakan political activists insist
that they were not looters but only peaceful protestors who were caught
up in the ploy of the military authorities.
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