Business

Thaksin Hopes Strained by Border Clash

Expectations that the recent election of Thaksin Shinawatra as the new premier of Thailand would be a boon for trade with Burma suffered a setback following an outbreak of hostilities between the two countries.

On Feb 13, shortly after a deadly exchange of fire between Thai and Burmese forces near their northern border at Mae Sai-Tachilek, Thaksin expressed displeasure with the Burmese regime’s handling of the burgeoning drug trade in the area. "We are not pleased at the way Myanmar has allowed ethnic minorities to produce drugs along the border area and we have to be decisive on this issue," he told reporters.

Unlike his predecessor, Chuan Leekpai, who stayed away from Rangoon throughout his three-year tenure as premier, Thaksin announced soon after taking power that the Burmese capital would be the site of his first diplomatic visit.

Thai trade representatives in Rangoon had earlier expressed hope for improved business ties following Thaksin’s election in January. Sriwat Suwarn, of the Thai Commercial Affairs office in Rangoon, even suggested stronger economic ties could help resolve border conflicts. "If wealth comes to their region, armed groups might consider to live a peaceful life, rather than pursuing their armed struggle," he said.

Spectre of ‘88 Hangs Over Currency Woes

A new $3.15-billion airport in Mandalay, originally conceived during the Visit Myanmar Year campaign of 1996, has opened to little fanfare. Located about 35 km south of Burma's second-largest city, the ultramodern, Thai-financed airport has the capacity to serve about 3 million passengers annually, or roughly 20 times the number of international tourists who visit the country each year. Although it was completed more than a year ago, a lack of trained ground crew and equipment, as well as scant demand, have delayed its opening. At present, only 16 domestic flights per day are scheduled to use the airport. While Burma's generals continue to pursue the elusive tourist dollar, there are reports that some of the country's drug lords are following suit. Ho Mong, a town in Wa-controlled territory on the Thai-Burma border, is expected to open as a tourist destination early next year. The town is ruled by Col Maha Ja, a major coordinator of drug trafficking from Burma to Thailand, with military backing from his brother, Col Maha Sang, leader of the Wa National Army.

BUSINESS DIGEST

Jade Stone Could Fetch $44 M

A 2,000-tonne block of jade uncovered at the Giant Kyauk Sane Naga mine near Hpakant, Kachin State could be worth up to US$ 44 million, according to U Ne Win Tun, chairman of the Ruby Dragon Jade and Gems Co. The company, owned by the ceasefire Pa-O National Organization, is entitled to 80% of the proceeds, under an agreement with the military-controlled Mines Ministry. "If the inside of the stone is of high quality, it will be of great monetary value," said U Ne Win Tun.

Planning Minister Upbeat

U Soe Tha, Burma’s National Planning and Development Minister, claimed that the country recorded an average of more than 15% growth in the first two quarters of the current fiscal year. Despite persistent doubts about the health of the Burmese economy, the minister reiterated that last year the economy grew by 10.9%--a figure generally rejected by foreign observers as much too high.