Professional Documents
Culture Documents
Acknowledgements; AncbApologies
Many thanks to the selfless and committed friends who have helped us to prepare this report.
Under the prevailing circumstances publically honouring them may jeopardise their work, none the
less we wish to express our sincere gratitude to those who have supported us.
We apologise for any shortcomings in this work, particularly in regard to its objectivity and
clarity. Lack of reference materials, time, financial resources and skill has made it less than perfect. We
hope it will serve anyway, and its flaws be forgiven.
DEADLY ENERGY
ENERGY FOR THAILAND, POWER FOR THE SLORC
Officials of the Thai government and the SLORC military regime have for some years n o w
been planning a series of huge energy joint ventures to be undertaken in some of the most
fought over territory in Burma. The energy projects, if they are endorsed by the Thai Govern-
ment - and implemented with the participation of Japanese and Western corporations - will have
extremely serious, possibly even terminal repercussions for the Burmese pro-democracy move-
ment which is based in these same areas of the Burma -Thai border. Indeed, this seems to be
w h a t a number of the proponents of the development projects intend to achieve, particularly
the generals in Rangoon. The SLORC, as well as politicians, military men and businessmen in
Thailand and abroad would garner great benefit from the destruction of the Burmese opposition
groups along the border, and the opening of the w a y to even more unrestrained natural re-
source exploitation than is currently taking place.
There are ten planned energy development joint ventures, comprising t w o offshore natu-
ral gasfield developments and eight hydro electric dams. These are:
T h e Martaban Gasfield developments led by Total CFP of France
T h e Yetagun Gasfield exploratory program led by Texaco of the US
T h e Upper Salween Dam,
T h e Lower Salween Dam
T h e Nam Kok Project
T h e Nam Moei 3 Project
T h e Nam Moei 2 Project
T h e Klong Kra Project
T h e N a m Moei 1 Project, and
T h e Nam M a e Sai Project
The energy projects will lead to environmental and social havoc on a scale comparable to
the largest development projects in the world. Indeed, the Upper Salween Dam will be among
the largest in the world. Altogether the projects will directly result in the flooding a n d deforest-
ing of thousands of square kilometers of the forests bordering Burma and Thailand. The projects
will displace many thousands of indigenous peoples, some of them already refugees from the
forty-five years of bloody civil w a r in Burma. Many have already been affected by military opera-
tions of the SLORC and Thai armies, operations which can easily be seen in the context of
clearing the w a y for the development of the 820-1,000 kilometre gas pipeline or the construc-
tion of the eight dams.
The energy projects will put billions of dollars into the control of an ultra-nationalist
military regime that is one of the worlds worst human rights violators and that is rapidly building
up a large and extraordinarily aggressive army which poses a significant threat to the stability of
the region. The massive input of funds from the Western and Japanese multinational oil and
energy development companies, combined with t h e cheap sale and presents of Chinese weap-
onry, and the profits from the heroin traffic that the SLORC is alleged to control, has funded this
huge expansion of the SLORC armed forces.
The energy joint ventures will, if signed, mark the second and higher level of engage-
ment in the much criticised A S E A N policy of "constructive engagement" towards the SLORC
regime, which through the activities of the logging, oil and fishing companies have already
caused untold damage to Burma's environment. The multinational corporations, the Keidanrens
GREEN NOVEMBER 32 MYA YADANA REPORT
and the Thai state oil and electricity institutes PTT and EGAT are therefore amongst the most
powerful influences supporting the SLORC in its brutal and undemocratic suppression of the
peoples of Burma.
GASFIELD DEVELOPMENTS
Texaco Inc, Premier Consolidated Oilfields. Total Cie Franaise Petroles, Unocal Corp., and Nippon Oil Explora-
tion (Nihon Seikiyu KK) are among the few remaining multinational oil corporations (MNC's) operating in Burma after a
mass exodus of oil companies that had held onshore concessions there since 1989. These companies hold between
them five offshore concession blocks in the Andaman Sea that have proven ability to produce trillions of cubic feet of
natural gas. They have already invested hundreds of millions of dollars (none but they and the SLORC really know how
much) in securing the concessions, in analysis of data, in equipment, and in oil and gas exploration in Burmese waters.
A considerable portion of this money has found its way into the coffers of the military regime - again, nobody knows
exactly how much, but it is likely to be in excess of several hundred million dollars when fifty million dollar signature
bonuses, the price of the concessions themselves, security charges, and various other expenses and 'tea money" contri-
butions are added up. Oil company investments are by far the biggest input into Burma's economy1, with the notable
exception of the income from the booming heroin export business. The SLORC, to put it in the words used in their
propaganda mouthpiece 'The New Light of Myanmar', is "jubilant", "exhilarated" and very much "gratified" by this
massive technological and financial support from the West2.
THAI SCHEMING
Senior Thai officials are currently in the process of advanced negotiations with SLORC, Myanma Oil and Gas
Enterprise (MOGE) officials, and oil company executives to buy the natural gas from Burma3. Luen Krisnakri, Director of
the state owned Petroleum Authority of Thailand (PTT), has announced that his company expects to strike a deal on joint
venture contracts by the end of the year4. Thai officials have been seeking to secure gas supplies from the Martaban field
since at least early 1991s, and have been "allowed" by the SLORC to take a 30 percent equity stake in the venture6.
At least three rounds of talks in Rangoon have been held between PTTEP (PTT Exploration and Production,
formerly a subsidiary of the 100% state owned Petroleum Authority of Thailand, recently listed as a public limited com-
pany), SLORC, MOGE officials and oil company executives. These reportedly covered investment, pricing of the gas, the
sensitive issue of piping it to Thailand, and other aspects of the deal7. They have been urged on by various Thai govern-
ment ministers, who in September 1992 endorsed a power development program that involves securing at least 350
million cubic feet per day (350 MMcfd) of natural gas from the Burma8.
This program was given even greater priority by the new Democrat led Thai coalition government after the
discovery of the Yetagun gasfields a few months after. PTT officials have made it clear to the Texaco led consortium that
discovered the new field that they are very interested in "an equity participation in the American company's oil conces-
sion in Burma"9. The consortium members, apparently afraid of being justly criticized, have been exceptionally tight
lipped about their plans to sell the gas to Thailand10.
Selling the gas to Thailand is quite obviously their intention, as there is no indication that the gas is to be sold
anywhere else, or even could economically be sold elsewhere. The military dictators of Burma, having bankrupted the
country with their corruption, ineptitude and excessive spending on the military acquisitions and campaigns, are cer-
tainly in no position to provide a return on the companies investments. Thailand is the most logical and profitable market
for the Burmese gas due to its close proximity to the fields, the value of its currency, its governments' easy access to credit,
its adherence to the much criticized so- called "constructive engagement" policy, its. growing demand for energy sources
to fuel its 6 - 10% annual GDP growth, and the expected 9-10% annual growth in energy demand11.
There are suspicions that PTTEP has already secretly committed itself to the joint venture. It is possible that Total
and Unocal, which are partners of PTTEP in the large scale Bongkot and adjoining Unocal 3 Gasfields, are buying on
behalf of PTTEP which due to the sensitive political situation between Thailand and Burma and the companys being
largely government owned, cannot commit itself publically to such a national security sensitive investment too quickly.
This is not to say that PTTEP has not committed itself privately - indeed it seems highly unlikely that five large Western
multinational oil companies would invest billions in a country such as Burma without having a secure market.
Khun Luen Krisnakri's announcement was the first time a mention of a signing date had been made, and is
therefore a significant step along the way to ratification of the constructive engagement policy and the venture. It was
also a significant departure from their previous publically noncommittal stance towards the SLORC. Even more urgent,
the Thai Prime Minister Chuan Leekpai, chairing a meeting with Thai officials and SLORC Energy Minister Khin Maung
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
Thein on the 8th of September reportedly urged the quick signing of the transaction.
Interestingly it comes during a period when the SLORC has announced that it will stop issuing new logging
concessions, has engaged in a larger than usual number of armed attacks by their soldiers on Thai citizens and territory,
and has been less than responsive towards the ever-so-accommodating Thais12. Thai leaders have responded to these
insults with reaffirmation of the controversial policy of 'constructive engagement' with the junta and a spate of visits by
senior leaders to Rangoon.
Speculation is rife that the SLORC is demanding that the Thais abandon once and for all their 'dual approach'
policy of tolerance towards the pro-democracy groups on one hand and the SLORC on the other and that they blockade
the dissidents and indigenous groups in return for the reward of renewed natural resource concessions and energy
supply13. Some observers of political and related developments in Burma are of the opinion that if the Thai government
does sign the gas supply agreement, the other more environmentally devastating dam development projects would
inevitably soon follow. The gas pipeline talks could be taken as being the critical indicator of the complete abandonment
of what little support for democracy in Burma Thailand and its ASEAN partners were prepared to give. The ratification of
the deal could also be taken as a wedding ceremony between the sadistic SLORC and an avaricious Thailand.
NAT El TAUNG
Nat Ei Taung is logical in many respects. It is located on the narrowest section of the Burmese Tenasserim
division, the distance from the sea to the border being only 45 km. A shorter overland pipeline would be far easier to
defend from sabotage attacks than the longer Three Pagodas Pass and Prachuab Khirikhan routes which also have many
miles of forested hills either side of them29. Most of the way distance to the border is reasonably level on the Burmese
side, although it rises close to the border and on the Thai side before dropping down towards the town of Thong Pa
Phum nearby30. The pass is conveniently located midway between the Martaban and Yetagun gas fields which would
mean a markedly shorter and therefore cheaper, pipeline than through Three Pagodas Pass. It is also in a straighter line
to the gas fired combined cycle power generators and industrial centers located not far from Bangkok.
The route from Martaban to Nat Ei Taung is only 20 kilometers shorter than to Three Pagodas Pass, Martaban to
Three Pagodas being around 370 KM and to Nat Ei Taung 350 KM31. However, if the pipeline has to be laid to the power
generating plants in the south of Bangkok the difference in the two routes is greater with the former being around 690
KM and the latter around 620 KM. If there are eventually two pipelines, one from Martaban and the other from Yetagun,
and they were to meet and take a single route through Three Pagodas to South Bangkok the amount of pipe that would
have to be laid would be close to 1,000 kilometers. A joint route through Nat Ei Taung would be around 820 KM, a
difference of 180 KM32. This would result in a cost differential of between US$ 100- 200 million dollars33. Making the Three
Pagodas Pass route even more implausible is that it would be flanked by mountains occupied by ethnic Karen and Mon
guerrillas for at least 80 kilometers of its overland path through Burmese territory, whereas the Nat Ei Taung route would
pass through no more than 20 km of mountainous territory34.
For approximately a year contractors have been making what one observer said looked like "a four lane highway
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
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GREEN NOVEMBER 32 MYA YADANA REPORT
RANONG
Piping the gas down to Ranong in the south of Thailand is perhaps the least sensitive option and would work
out to be only about the same length as the Nat Ei Taung route. A pipeline connecting the Martaban developments to
the Yetagun development and on down through Ranong to planned or existing combined cycle or thermal power
plants on the Southern Seaboard of Thailand would be around 850-870 KM. Several such multi billion dollar projects are
on the Electricity Generating Authority of Thailand's (EGAT) drawing boards, notably a 4000 MW thermal power plant
that is likely to be built around Bang Saphan in the south of Prachuab Khirikhan Province40.
If an undersea pipeline could be laid to a plant at Bang Saphan or the Khanom generators near Surat Thani via
Ranong, the Thais and the multinationals could avoid the ethnic peoples territories altogether. These plants are designed
to take gas from the 'Joint Development Area' with Malaysia, Aceh in Northern Sumatra, and the Bongkot Field in the
Gulf of Siam. However, judging from the actions of the SLORC and the Thais in the areas of the more northerly routes it
seems likely that the route has already been chosen.
TWO PIPELINES?
It is possible that the two groups of companies would not wish to mix the gas. or join in an even more complex
supply agreement. It is also quite conceivable that EGAT, the purchaser of the gas, would want the huge gas supply to be
sent to different power generating plants so as not to concentrate too much investment in one area. From a security
angle also it would not be wise for the Thais too invest all their resources in one huge and vulnerable installation. This
could mean that two separate gas pipelines would be built, the Total/ MOGE/ Unocal/ PTTEP group pipeline going
through Nat Ei Taung or Three Pagodas Pass, and the Texaco/ MOGE/ Premier/ Nippon/ PTTEP group pipeline taking the
more southerly route. If this was the case, a total of nearly 1180 kilometres of pipeline would be laid to two widely spaced
power plants.
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GREEN NOVEMBER 32 MYA YADANA REPORT
31.1:500,000 Scale Tactical Pilotage Chart TPC ONC K-9B, Burma, Thailand, Kampuchea. Defence Mapping Agency.
32. Ibid.
33. Bangkok Post, 4 March: 'PTT Studying Routes for Gas Pipeline from Burma to Thailand'
34. 1:250,000 Topographical Map; Ve, Union of Burma.
35. Various sources: Karen National Union officials. Thai environment movement, aid workers. Karen and Mon villagers.
Sources wished to remain anonymous; 'Mons Claim Thais Sold Them Out', The Nation, 19 Feb 1992.
36. The Nation, 18 April 1993: Thai Army Blamed as Burmese refugees Claim Villages Razed'.
37. All Burma Student Democratic Front (ABSDF) Sources.
38. The Nation, 4 May: 'Burma Refugees Make Way for Pipeline?'.
39. PPSM Newsletter, March 1993: Thai Governments Policy Drives Away Mon Refugees'; ABSDF sources, April 10-16;
New Mon State Party Official, August 25; aid workers 13 May 1993 .
40. EGAT Systems Planning Dept, September 1992: 'General Information; EGAT Power Development Plan PDP 92 01 (1).
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
engineers, multilateral development investment bankers, profit seeking multinationals, and politicians who stand to gain
substantial corporate political or personal benefits from the implementation of the projects. Previous examples of large
dam projects such as the Namada Dams in India and the Tucurui Dam in Brazil, have shown that by the time ElAs and
SIAs are completed, decision-makers vested interests have developed to the point that they commonly prevail over any
objective considerations of social or environmental impact, or even simple cost benefit analysis of economic viability.
I. International Water Power and Dam Construction, October 1992: Thai-Myanmar Joint Hydro Schemes'. S. Boonpiraks,
Assistant General Manager, Project Feasibility Division. Hydro Power Engineering Department. EGAT.
2 Bangkok Post, 23 June 1992: 'EGAT Studies Building Dams On Burma Border'
3. Bangkok Post, 18 December 1989: Thai-Burmese Hydro Elec
tricity Project Agreed'; The Nation, 26 October 1991: 'Dam ming
Burma For Thailand?'
4. The Nation, 25 September 1992: 'EGATTo Have More Talks On
Burma Water"
5. International Water Power and Dam Construction, October
1992: Thai-Myanmar Joint Hydro Schemes'. S. Boonpiraks, Assis -
tant General Manager, Project Feasibility Division, Hydro Power
Engineering Department, EGAT.
6. The Nation, 13 October 1992: 'EGAT Studies Hydro Plant'
7. EPDC Promotional Literature, 1983. Electric Power Develop
ment Co., Ltd.
8. International Water Power and Dam Construction. October
1992: Thai-Myanmar Joint Hydro Schemes'. S. Boonpiraks, As
sistant General Manager, Project Feasibility Division, Hydro
Power Engineering Department, EGAT.
9. EPDC Promotional Literature, 1983. Electric Power Develop
ment Co., Ltd.
10.The Nation, 13 October 1992: 'EGAT Studies Hydro Plant'
11.The Nation, 8 June 1993: 'EGAT Plans Boost In Reserve'
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
In addition to the hundreds of square kilometers of land submerged at the high water level under what would
AUG-SEPT 1993
THE UPPER SALWEEN FLOOD ZONE
WATERFALL
MAJOR TOWN
VILLAGE
MOUNTAIN PEAK
INTERNATIONAL
BOUNDARY
MAJOR ROAD
WILDLIFE SANCTUARY
BOUNDARY
RIVER
DAM WALL
1. MAESAI
2. MAE NAM KOK
3. UPPER SALWEEN
4. LOWER SALWEEN
5. MAE NAM 1
6. MAE NAM 2
7. MAE NAM 3
8. KLONG KRA BURI
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
edies to their country's environmental and energy problems instead of effectively addressing their root causes. If they
could:
Control the corruption ridden, politically connected and military affiliated logging industry,
Give secure land title and income security to the rural peoples including the hill peoples while helping them imple-
ment ecologically sound agro-horticultural and silvicultural practises,
Seriously implement a program to prevent, control and educate about the destructiveness of the largely ignored
annual forest fires, and
Adopt - or readopt - life styles and development models that are not based solely on assumptions of limitless growth of
profits, endless consumption and heedless waste, the forests would heal themselves rapidly, the rains would fall more
reliably, and the rivers would be restored to life. These relatively simple steps however, would undoubtedly not be
considered "progressive" enough....
1. International Water Power and Dam Construction, October 1992: Thai-MyanmarJointHydroSchemes'. S. Boonpiraks,
Assistant General Manager, Project Feasibility Division, Hydro Power Engineering Department, EGAT.
2. Introduction to EGAT's Hydro Power Development. April 1989. Public Relations Department.EGAT.
3. International Water Power and Dam Construction, October 1992: Thai-MyanmarJointHydroSchemes'. S. Boonpiraks,
Assistant General Manager, Project Feasibility Division, Hydro Power Engineering Department, EGAT; Bangkok Post. 23
June 1992.
4. Ibid.
5. Ibid.; Introduction to EGAT's Hydro Power Development, April 1989.
6. 1:500,000 Scale, Tactical Pilotage Chart, TPC J-l 0C. Burma, Laos, Thailand. Defense mapping Agency.
7. The Nation, 26 October 1991; The Nation, 8 July 1992: Thailand Looking To Burma For Water'; The Nation, 25
September 1992: 'EGAT To Have More Talks On Burma Water"
8. The Nation, 21 May 1993: 'Clinton Urges Burma to Free Suu Kyi, Others"
9. The Nation, 9 November 1992: 'SLORC Rebuts Amnesty Report'
10. Burmese Border Consortium, December 1992. Burmese Border Camp Locations with Population Figures (Map)
12.1:500,000 Scale Tactical Pilotage Chart, TPC J-10C. Burma, Laos, Thailand. Defense mapping Agency.
13. International Water Power and Dam Construction, October 1992: Thai-Myanmar Joint Hydro Schemes'. S. Boonpiraks,
Assistant General Manager, Project Feasibility Division, Hydro Power Engineering Department, EGAT.
14. Damming The Three Gorges: What the Dam Planners Don't Want You To Know. A Critique of the Three Gorges
Prefeasibility Study 1990. Edited By Grainne Ryder. Probe International, 1990.
15. Draft Report, John McKinnon, Tribal Research Institute.9 June 1993.
16. Burma Alert, June 1993, No.6, Vol.4.
17. Damming the Three Gorges: What the Dam Planners Don't Want You To Know. A Critique of the Three Gorges
Prefeasibility Study 1990. Edited By Grainne Ryder. Probe International, 1990.
18. Ibid.
19. The Nation. 26 October 1991:' Damming Burma for Thailand'
20. 1:500,000 Scale Tactical Pilotage Chart. TPC J-10C. Burma, Laos, Thailand. Defense mapping Agency.
21. Ibid
22. The Nation, 8 July 1992: Thailand Looking To Burma For Water'
23. Ibid.
24. Ibid.
25. Introduction to EGAT's Hydro Power Development, April 1989
26. Asia Pacific Environment Newsletter APEN Vol.7, No. 1, February 1992: The River of Kings Flows To Its Death'
27. The Nation, 8 July 1992.
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
THE GORGE
The upstream location, as with the Upper Salween Dam site near Wei Gyi, is a gorge flanked by steep slopes on
either bank of the river. The water flows rapidly through here, particularly in the 6-7 month long dry season when the
water levels are lowered by up to 12 metres to reveal remarkable water- carved rocks, some of which are limestone while
others are of a harder bedrock. These create a set of rapids with a roughly estimated elevational drop of 5-8 metres over
a two kilometer distance - a factor dam makers would no doubt find hard to ignore. The natural beauty of the gorge is
considerable.
According to Bomu Wa Hein. a retired Karen officer who said he had been keeping track of such plans for many
years, the United Nations Development Program had evaluated this site for a dam as long ago as the mid 1950's7. It is
widely believed by the Karens that a wire cable strung across the river at the top of this gorge was put there to indicate
the flood height of the dam and to take measurements of the water levels during the dry and monsoon seasons.
There would be numerous negative impacts from locating a dam on this stretch of the river. As with other dams
it would be cut off trade and communication routes for the local people. It would also flood out Mae Sam Laep (Saw Lei
Hta). a border trading town with a majority Karen population that serves villages for many miles up and downstream,
including up into the Karenni State. The cutting of the Karen lines of supply and communication by the installation of a
dam on the river would be a great military advantage to the SLORC army, fulfilling one of the objectives of the notorious
"Four Cuts" counter insurgency policy8 (It is presumed however that the Thais will wait until the rapidly growing SLORC
armed forces have already annihilated opposition in the area before beginning construction).
This dam would also flood many square kilometers of previously exceptionally fertile teak forest land (now
heavily logged over) and a considerable area of the little level farm land in the border area. A very large number of
indigenous Karen people would be displaced from here, and as at the other dam sites in Burma would almost certainly
receive absolutely no compensation from the Burmese government. Thousands of refugees would also be forced to
move again.
THE FALLS
The second potential dam site is a truly extraordinary place. It is also only a few kilometers away from one of the
most fiercely fought over pieces of land in all of Burma, the internationally known HtiPaWiKyo (Sleeping Dog Hill), now
occupied by SLORC troops9.
The river down from Thu Mwei Hta drops dramatically, passing over one set of powerful rapids, past a wide and
fertile stretch of paddyfields and lowland forest overlooked by HtiPaWiKyo, and down a second set of extremely danger-
ous rapids that only two or three of the most skilful Karen boat drivers in their powerful longtail boats can negotiate. The
water drops at least ten meters in a space of less than 500 metres, a fearful sight even from the river bank, and an
exhilarating experience for those few who have been down it by boat. During the dry season of 1991-1992 the rocks
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
beside the rapids were very noticably embellished with the wreckage of one of the brightly coloured longtail boats, a
grim reminder of the price paid for lack of skill.
The dam would not be on this section of river however, some ten kilometres down from the second rapid is the
waterfall, and it is the strength of this that the powermongers would like to harness.
The waterfall on the Salween River is awesome. Located at the edge of the old Kahilu Wildlife Sanctuary that was
established during the colonial era, the falls are flanked by steep forest covered ridges that tower up to 1,000 metres
above the river Huge teak trees remain along the banks, protected from loggers by the minefields further down the river
and the sheer inaccessibility of the site. The waterfall itself is not so high, dropping around 15-18 metres. Never-the-less,
the sight and sound of more than 4,000 cubic metres of water per second shooting over the edge and smashing into
froth below is unforgettable.
If the SLORC, the Thais and the Japanese are planning to make the dam here, the reasons for secrecy regarding
the site would be abundantly clear. Memories of the hundreds who died for HtiPaWiKyo and associations with the
intense fighting for control of this area would not look good on the public relations record, and would certainly stir great
bitterness for the Karens. Indeed, the dam planners could very well look forward to bearing very strong - and very much
justified - international condemnation.
A dam here would flood the lower parts of the Kahilu Wildlife Sanctuary, all the Mae Pru and Mae Pa plains, and
the town of Mae Le Hta. The wildlife sanctuary is one of the few areas throughout the where wildlife has any effective
protection due to illegal and legal wildlife trading, hunting, deforestation and other factors. Protected areas cover only
1.25% of Burma's landmass, one of the smallest proportions in Asia10. Even in the few wildlife sanctuaries that do exist in
Burma logging is officially permitted and is carried out by the Myanmar Forest Dept11. Kahilu, being in one of the the
most fought over areas of the border has been spared the loggers, but wildlife has suffered from landmines and the fierce
clashes between Karen and Burmese commandos within the sanctuary.
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
project is completed. Tachilek in the "Golden Triangle" was fairly recently opened to tourists, and is expected to be
opened up further as and when the "Asia Highway" routes up to Yunnan are completed, and if the proposed new four
nation free trade area agreements involving Burma, China. Thailand and Laos called the "Growth Rectangle" are imple-
mented21 . The demand for electricity in the previously neglected and underdeveloped Shan States is likely to rise dramati-
cally with the influx of tourists and traders.
A number of the former revolutionary groups in the Shan State have for the present accepted the SLORC's Pax
Burmanica ceasefire terms (having had little alternative), along with the SLORC's UNDP backed 'Border Area Develop-
ment' program22. (The SLORC has a way with
acronyms - first its own suitably goblinesque
name, and then the 'BAD' program!). The small
Mae Sai hydro power scheme fits into BAD well,
so it is therefore likely given high priority by the
regime.
The future of the project is not cer-
tain however, some of the indigenous groups in
the region have shown signs of intense dissatis-
faction with the junta. The powerful Wa ethnic
group may not remain quiescent for long, the
SLORC's ongoing excesses and broken promises
have angered their leaders, and other ethnic
nationalities such as the Palaung, Lahu, Akha and
Pa-oh are chafing at being confined, in strategic
hamlets, having their sons forced into the SLORC
army, forced labour programs and the seizure of
villagers for forced porter service in the border
combat zones23. It is quite possible that the re-
gion, in spite of its present relative peacefulness,
will explode back into violence, forcing the
postphonement of the project.
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
from the CPB in 1989, and suffering from a severe lack of food and ammunition, subsequently signed a ceasefire agree-
ment with the opportunistic SLORC on the basis of virtual bribes in the form of promises of recognition of a Wa State,
food, ammunition, and United Nations backed development of the isolated area. There was also a crucial arrangement
made relating to the production and trafficking of heroin. Interestingly, the leader of the UWSP recently accused the
SLORC military intelligence chief Gen. Khin Nyunt of manipulating them and of being heavily involved in the drug
traffic25.
Damming the Nam Hkok would mean the construction of all weather service roads through the pass, effectively
putting permanent control of the route (and with it the opportunity to secure a massive income) in the hands of the
SLORC. It would also require the removal of the Shans from the valley, many of whom are civilians, and much greater
SLORC control over the unhappy Wa. This would not happen easily, the Wa have already indicated the end to their
cooperation with the SLORC, and the MTA would almost certainly fight to retain control of the pass.
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
washed away in the tropical downpours. During the rainy season the river is deep brown with suspended soil particles
In the relatively extensive flat lands around Mae Sot and Mae Ramat, Thai farmers make liberal use of the same
agricultural chemicals that have contributed to the near death of the Chaophraya River.
The risk of poisons collecting in the dammed waters is height-
ened by the presence of a number of old tin mines which may be
partially submerged by the floodwaters, with the potential of heavy
metals leaching out and entering into the food chain30. These
factors, combined with the anaerobic decomposing of plant ma-
terial in the flood zones, could also lead to a short useful life for
the dams, and a long baneful one as monolithic edifices to the
callous myopia of modern man if they become silted up, poison-
ous and fetid swamps.
1. International Water Power and Dam Construction, October
1992: Thai-Myanmar Joint Hydro Schemes'. S. Boonpiraks, Assis-
tant General Manager, Project Feasibility Division, Hydro Power
Engineering Department, EGAT.
2. Ibid.
3. Ibid.
4. 1:250.000 Topographical Map, Amphoe Li, Thailand; Burma.
Royal Thai Survewy Dept. ND 46-4; 1:500,000 Scale Tactical Pilot-
age Chart TPC J-IOC: Burma, Thailand, Laos. Defense Mapping
Agency.
5. International Water Power and Dam Construction, October
1992: Thai-Myanmar Joint Hydro Schemes'. S. Boonpiraks, Assis-
tant General Manager, Project Feasibility Division, Hydro Power
Engineering Department. EGAT.
6.1:100,000 Scale Tactical Topographical Map, Ywathit E-47-28,
Chinese Military Map.
7. Interview with Major Wa Hein, March 1992
Texaco's Yetagon No. 2 Testwell spewing hundreds 8. Mya Yadana, August 1992: War; Logging and Development'
of tons of pollutants into the air dally. 9. The Nation, 16 March 1992,: 'Burmese Capture Karen Strong-
hold'
10. Forestry Situation In Myanmar, October 1989. Forestry Department, Ministry of Agriculture and Forestry, Union of
Myanmar,
11. FAO, 1983. Nature Conservation and National Parks. Interim Report.
12. The Nation. 13 October. 1992: 'EGAT Studies Burma Dams'.
13. Ibid.
14. Bangkok Post, 23 June 1992: 'EGAT Studies Building Dams On the Burma Border'.
15. The Nation, 13 October 1992,'EGAT Studies Burma Dams'.
16. National Energy Administration. Klong Kra Buri Project Preliminary Study Report, 1989.
17. FAO, 1983. Nature Conservation and National Parks. Interim Report.
18. The Conservation Atlas of Tropical Forests, Asia and the Pacific. World Conservation Monitoring Centre, IUCN, BP
Macmillan 1991
19. List of Sale Contracts Signed Between Forest Dept of the Union of Myanmar and Thai Timber Companies. December
1989. Embassy of the Union of Myanmar: Poo Jad Karn Magazine, 18-24 December 1989.
20. The Nation, 4 December 1992: 'Gun Pledges Affirmative Air Force Action On Hill'; Bangkok Post, 20 November
1992:Talks Fail To Decide Who Owns Hill 492'
21 Bangkok Post, 4 July 1993: 'Rangoon Approves International Road Studies'; The Nation, 11 April 1993: 'New Fron
tiers Opening To Business'
22. 'Measures Taken For the Development of the Border Areas and National Races', 1989-1992. Ministry of Border
Areas and National races
23. Far Eastern Economic Review, I July 1993: 'Opium Growers Offer to Stop Growing Opium'
24. 1:500,000 Scale Tactical Pilotage Chart, TPC J-I0C. Burma, Laos, Thailand. Defense Mapping Agency.
25. USIS, 4 March 1992. Official text. Burma Chapter. US State Departments 1992 International Narcotics Strategy Report;
Asian Wall Street Journal, 12 December 1989: 'Burma: Getting Drug policy Right'
26. International Water Power and Dam Construction, October 1992: Thai-Myanmar Joint Hydro Schemes'. S. Boonpiraks,
Assistant General Manager, Project Feasibility Division, Hydro Power Engineering Department, EGAT.
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
27. The Nation. 4 May 1993: 'Burma Refugees Make Way For Pipeline?'
28. Map, Burmese Border Camps with Population Figures, December 1992. Burmese Boder Consortium
29. Embassy of The Union of Myanmar, December 1989. Map Showing Timber Concession Areas. Burmese-Thai Border
30. Damming The Three Gorges: What the Dam builders Don't Want You To Know. Ed. Grainne Ryder, 1990
ENVIRONMENTAL DEVASTATION
The massive scale and the nature of the proposed development projects would ensure very considerable negative
environmental impact if they are allowed to proceed as planned. Vast tracts of forest land, and land used by the local
villagers for their homes and cultivations would be flooded by the dams. The natural ecosystems of these areas would be
irrevocably altered causing widespread disruption to numerous lifeforms. Road making, and the legal or illegal logging
that accompanies or precedes it, will inevitably result in the rapid degradation of other formerly remote and pristine forest
areas.
Logging has already been especially intensive at several of the known locations of the dams and through one
area. Three Pagodas Pass, that was previously announced as a planned route for the gas pipeline. New roads into virgin
forest areas such as the one to Nat Ei Taung, the presumed new route for the gas pipeline, will contribute significantly to
Burma's exceptionally high deforestation rate. This was said to the 3rd highest in the world at around 8,000 square
kilometers per year (Myers 1989)1 but which is now, with the Chinese, Thai, Burmese and other concessions, conceivably
up to 10,000 square kilometers per year. Much of the deforestation and erosion in Burma goes hand in hand with road
making, both as a direct impact of road construction activities themselves; "legal" or "illegal" logging; increases in the
number of deliberate, accidental or incidentally caused forest fires as a result of the opening and drying up of the forest-
encroachment for cultivation; by making firewood collection easier; and because of strategic clearance for security
reasons. In relation to the latter it is reported to be common for forest cover either side of militarily useful road and river
access routes in Burma to be stripped away (sometimes by forced labourers) for up to a mile either side of the route to
prevent surprise attacks from saboteurs. This is reported to have happened along much of the 90 kilometers from Three
Pagodas Pass to Thanbyuzayat, with up to 200 square kilometers having been devastated by the one company, Patumthani
Tangkakorn, as part of an agreement made with the Burmese military commander2.
The piping of hundreds of millions of cubic feet of highly volatile natural gas each day through an area in which
numerous guerrilla organizations operate raises the spectre of major ruptures to the pipeline. Large quantities of gas or
oil released into watercourses or remaining rainforest areas would cause massive pollution. Highly destructive fires would
probably accompany any explosion and gas leakage. Attempts to sabotage such an obvious and explosive target are
almost inevitable considering the amount of revenue and the political benefits accruing to the SLORC.
Oil and gas spillages from numerous points in the exploration, development, production and transport pro-
cesses are high possibilities. The burning off (flaring) of thousands of tons of uncleaned natural gas from the oil rigs before
the pipeline and refining facilities are built results in substantial air pollution, as well as contributing to the "greenhouse
effect"3. Furthermore, there is the possibility of undersea pipeline breakage; oil well "blowouts" such as nearly happened
at Kyaukpyu and at one of Yukong's drill sites4; accidents or deliberate sabotage on ships, at refining installations and oil
rigs; and the careless production and disposal of toxic wastes and pollutants such as drilling muds, thick sulphurous crude
oils and heavy metal-laden formation waters. The various processes for refining the gas prior to export or use also
produce numerous waste products, much of which is likely to become some form of pollution in some part of the
environment5.
In addition to the threat to the pipeline (or other installations) from sabotage, there is the possibility of breakage
resulting from earthquakes, which are not uncommon in the region6. There have been several significant tremors in the
general vicinity the past few years, some of them possibly worsened by the construction of what are currently the largest
dams in Thailand and Burma. Large dams are known to increase the possibility and intensity of earthquakes7. This factor
calls into question the wisdom of making even more dams, especially mega-dams, in the area. The biggest of the dams,
the one planned for the Salween, would be located in the same geographical area as the Lawpita and Baluchaung
Dams - not far from which in 1992 a large quake damaged numerous buildings in the major town of Toungoo. The
region is in a belt of mountains that runs parallel to the edge of the Indian Ocean -and the same fault line that spawned
the ancient super-volcano of Krakatoa and the many earthquakes and tidal waves that regularly shake Java and Sumatra
The havoc that would be wrought by an earthquake caused failure of the Salween Dam, let alone any of the other
smaller dams, is unthinkable.
Some of the areas to be flooded by the dams are of great scenic beauty and significant ecological value. The
border areas in which the pipeline and the dams are to be located are still mostly clothed with tropical rainforests which
cover river banks, the sides of steep gorges and the edges of dramatic limestone peaks and cliffs The unpolluted (though
during the monsoon season heavily silted) rivers run fast through rapids caused by elevation drops and curiously carved
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
rocks of different kinds of stone, or slowly and deeply past wild landscapes dotted with brilliantly flowering Lagerstroemias
and orchid-clad ancient trees. Trees found in the area include some of the famous hardwoods the country is known for:
Teak (Tectona grandis), Burmese rosewood (Pterocarpus macrocarpus or padauk), red ironwood (Xylia dolabriformis or
pyingado), and Dipterocarpus spp. (kanyin). Although most of the best of these have fallen to the Thai loggers in their
four year plundering of the border forests, some imperfect but none the less impressive trees remain to grace the
landscape and to provide homes to wildlife, along with other large but less economically attractive species.
Wildlife in the area will naturally be severely affected, if not decimated, by these developments. There are 289
listed species of mammals, up to 1000 species of birds, and 366 reptile and amphibian species recorded as existing in
Burma7. What proportion of them live in the border areas and will be affected by the dams and the gas pipeline is
unknowable, but considering the distribution and scale of the projects it is likely to be a significant amount. The forests
along the rivers and the proposed gas pipeline route give shelter to a variety of these wild creatures. These range from
the lovable lar gibbons and slow lorises to two species of bears, macaque monkeys, a number of species of large felines
reportedly including a few surviving tigers, two endangered species of wild ox, goat antelopes, deer, black giant flying
squirrels and numerous other mammals8. There have even been repeated but unverified accounts of sightings of the
Sumatran rhinoceros near the Salween by the Karens and Karenni, one village headman spoke of the finding of a baby
rhino crushed beneath a. fallen tree, while a Karenni student told of one standing by the banks of the Salween in clear
view of a boatload of people.
The rivers are also home to some strange and impressive forms of life. The Salween River is said to contain some
unique varieties of fish. One called Nga Dahn by the local people commonly weighs around 30 kilograms and is excep-
tionally delicious to eat. According to the reputable ithycologist Dr Tyson Roberts9, the river also contains a kind of ray that
can grow up to 500 kilograms in weight. Rivers along the Burmese border, with the exception of the Moei, are almost
completely unpolluted by agricultural chemicals or the industrial activities of man (other than the logging) and therefore
have healthy and diverse fish populations which include, amongst numerous others; different types of carp, catfish and
serpent-head fish. Although relatively little is known about the breeding habits of the fish in the rivers, especially in the
deep, murky and dangerous Salween, the spawning and movement of various species will undoubtedly be seriously
disrupted by the construction of dams on them.
Little is believed to be known about the various kinds of birds resident or stopping over in the areas to be
affected, but the birds present in Burma and possibly along the border include numerous species of hawks, egrets,
kingfishers, flycatchers, ducks, and the green peacock, as well as possibly hornbills, storks, spoonbills, pheasants, tragopans,
and more10.
Reptiles are plentiful along the border. Lizards of various shapes and sizes can be seen everywhere, and snakes,
frogs and turtles are also common. Among the lizards are monitor lizards that grow up to 6 feet long.
As with other wildlife, partly due to the forty five unbroken years of war in the border regions there has been very
little research done on their populations and distribution. If the projects are implemented we will never know what has
been lost forever in terms of unique or rare species of wildlife.
The environmental consequences of at least five of the eight planned dams will extend downstream to the
mouths of the rivers as well as in the immediate area and upstream of the dams. This is because the movement of silt
downstream will be very much affected, a factor that will impact agriculture and fisheries for much of the length of the
rivers. Changes in the estuarine, marine and riverine ecology of the Salween and Kra rivers due to the blocking of the silt
flow will influence the breeding of fish that form a vital source of protein for the Burmese peoples. The effect of this on
fisheries-dependent local economies, particularly coming on top of the invasion of offshore fishing grounds by concessioned
and illegal foreign fishing trawlers, and the widespread stripping of mangrove forests for charcoal making and tiger
prawn culture, is likely to be considerable. Water supplies in Moulmein, the capital of the Mon State, could become more
saline as the reduced flows of silt into the estuary leads to erosion of farmlands around the coast and saltwater intrusion
into groundwater supplies. The fertility of the annually flooded rice farming lands stretching from around Moulmein back
up to Pa-an Township will almost certainly drop as a consequence of reduced silt deposition, an effect that has been
catastrophic for agriculture where major rivers around the world such as the Nile River in Egypt have been dammed.
One of the worst of environmental impacts that could arise from the damming of any of the five rivers would be
the water becoming stagnant. More than a few dams in Thailand and in other tropical countries have stagnated when
their flow has been blocked.. This happens when the organic matter carried down by the rivers or flooded by the rising
water levels decays in oxygen-poor environments. Floating plants and algae can also consume the free oxygen in the
water that would normally be available for fish, creating conditions for anaerobic bacteria to thrive. When these condi-
tions develop fish populations can crash, and the water, stinking with rotting plant matter can be unsuitable even for
washing in.
Stagnant waters are also prime breeding places for disease vectors such as malaria-carrying mosquitoes and the
snails that host schistosomiasis.
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
1. Deforestation in Tropical Forest Countries. Norman Myers. 1989. Global Panel on Climate Change
2. PPSM Newsletter, May 1993. Vol. I.. No.2.; The Nation, 13 February 1990: 'Burmese Troops Seize Major Mon Camp'.
3. Oxfam America News, Summer 1991: 'Indigenous People Move to Outflank Oil Companies'.
4. Far Eastern Economic Review. 8 August 1991 /Licenced To Drill'.
5. Oil Industry Operating Guidelines For Tropical Forests, April 1989. E & P Forum, Report No.2. 49/170.
6. New Scientist, 2 November 1991: (Reprinted in APEN Vol.7 No. I as 'Himalayan Earthquake Confirms Worst Fears
Over Dam').
7. Nature Conservation and National Parks, Interim Report. FAO 1983.
8. Salawin Wildlife Reserve. Wilflife Fund Thailand (In Thai).
9. Telephone conversation with Dr Tyson Roberts, March 1993.
10.Nature Conservation and National Parks, FAO 1983. Interim Report.
UNTHINKABLE SUMS...
Proponents of the joint ventures variously claim that the projects would cost just over six billion dollars, a
stupendous sum in the context of Burma where even the privileged Burmans are exceedingly fortunate to earn the
equivalent of a dollar a day1. These sums, vast as they are. appear to be greatly understated. They are not likely to include
the almost standard cost overruns which commonly double or even treble the construction costs of large development
projects, or the real costs to the nation of major debt repayment. They almost certainly will not include the very consid-
erable social and environmental costs.
Executives of Total CFP and PTTEP claim that the investment on the Martaban Gasfield will be around US$ 800
million to one billion including the gas pipeline to Thailand2. However, this low figure contradicts initial estimates of "over
US$2 billion"3, and other overall costs estimates of US$ 2-3 billion for the development of the gasfield, the main pipeline
to Thailand, and related infrastructure. Pipeline would also have to be laid to connect up with the World Bank sponsored
Payagon Gasfield pipeline in the Irrawaddy Delta for supplying fuel to the starved Myanmar Electric Power Enterprize gas
turbines4. Total says it will build four well platforms - which do not come cheaply. Furthermore, the Total CFP cost estimate
is based on a pipeline length of 350 km, only enough to carry the gas to Nat Ei Taung, and not the hundreds of
kilometers further on to the power stations.
Officials claim that the pipeline would only cost US$250-300 million. However, gas pipeline of the diameter
required to transport the expected quantity of gas from the two fields can exceed a million dollars per kilometer. An
example of the costs involved can be seen in the new 535 km qas pipeline that PTT is having laid from the offshore
Erawan gasfield in the Gulf of
Siam to the large gas generator
at Bang Pakong. A contract
worth US$ 718 million dollars has
been awarded to a US multina-
tional to design and build it5. It is
probable that the companies are
downplaying their investment as
much as possible, as they have
been made the target of an in-
ternational boycott campaign
partcipated in by at least one
Nobel Peace Prize Laureate.
No figures have been
released at all relating to the
amount of money that the
Texaco led consortium is commit-
ted to spending in Burma, or will
have to pay to get things done.
Indeed, the company has been Gas pipeline: A milllion dollars a kilometre ?
singularly reluctant to let the
amount of its investment be known, simply saying "We do not disclose the terms of our contracts"6. Despite the consortiums'
reticence, it can be reasonably assumed that it will pay around the same amount as will be paid for the Martaban venture
- around one to two billion dollars.
The cost of the two dams on the Salween River, according to the EGAT officials, who in turn are believed to have
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
based their estimate on the figures given by the EPDC. has been put at US$3,860 billion. This represents US$3,002 billion
for the Upper Salween Dam and US$858 million for the Lower Salween Dam which has a dam wall less than a third as
high as the upper dam7.
This cost estimate contrasts somewhat starkly with the US$7-8 billion estimate given by SLORC officials to the
Asian Development Bank Conference on Sub-Regional Economic Cooperation for the development of the Salween
River's hydro potential8. Given the scale of two projects and the example of the costs involved in building megadams
elsewhere in Asia, the SLORC's figure is likely to be closer to reality than the EGAT/ EPDC one. A good example of these
underestimations is the 45 metre, high Gezhouba Dam on the Yangtse River which took six years longer than planned to
complete, and cost "up to four times as much as originally estimated"9. The Gezhouba Dam is not even as high as the
Lower Salween Dam would be.
The six other smaller dams along the border, again according to EGATs disputable figures, are expected to cost
a total of US$ 1,260 million. These include US$375 million for the 294 MW Mae Kok Project, US$ 698 million for the three
Mae Nam Moei dams which total 629 MW US$ 113 for the 130 MW Klong Kra dam and US$74.5 million for the small
12.5 MW Mae Sai dam10. These, being smaller projects would probably not be subject to such huge cost overruns, but
may still cost in excess of US$ 1.5 billion when completed.
In addition to the construction costs would be payments to the SLORC for the hydro-electricity and the gas itself,
assuming the military dictatorship still remains in power by that time. Thailand would consume the vast bulk of the 450
-1,000 million cubic feet per day of gas produced by the two projects and the large majority share of the 6,400 mega-
watts of electricity. This would mean that above and beyond its multi-billion dollar equity investment, Thailand would
have to pay in the order of hundreds of thousands of dollars per day to the SLORC for the electricity and gas. Adding all
these up. if the projects go ahead it is not inconceivable that the eventual costs of the ten projects will exceed US$ 14
billion dollars. It is sure that a substantial proportion of this will find its way into the pockets of corrupt military officers,
politicians and businessmen, and into the war chests of the SLORC military dictatorship.
1 Bangkok Post, 23 June 1992, Bangkok Post 23 March 1993: Total Begins B500 Million Drilling Campaign In Burmese
Waters, Manager. April 1993: 'Awaiting the Third Wave'.
2 Asian Wall Street Journal, 5 March 1993: 'Oil Firms Pay High Price For Scant Results In Burma'.
3 Bangkok Post, 21 July 1992: Burma Signs Natural gas Exploitation Deal'.
4 Gas Development and Utilisation Project, 30 June 1987. International Development Association .
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
5. Bangkok Post, 4 March 1992: 'PTT Studying Routes For Gas Pipeline From Burma To Thailand'; The Nation. 2 April
1993: 'Bechtel Picked For Pipeline'; ADB Conference on Sub-Regional Economic Cooperation, Manila, 21-22 October
1992.
6. News From Texaco. Texaco PR. Dept., 28 May 1993: 'Texaco Announces Second Gas/ Condensate Discovery Off
shore Peninsular Myanmar'.
7. International Water Power and Dam Construction, October 1992: Thai-Myanmar Joint Hydro Schemes'. S. Boonpiraks,
Assistant General Manager Project Feasibility Division, Hydro Power Engineering Department EGAT.
8. ADB Conference on Sub-Regional Economic Cooperation, Manila, 21-22 October 1992.
9. Damming the Three Gorges: What the Dam Planners Don't Want You To Know. A Critique of the .Three Gorges
Prefeasibility Study 1990. Edited By Grainne Ryder. Probe International, 1990.
10. Bangkok Post. 23 June 1992.
11. Calculated from figures given for proposed new gas generator plants. The Nation, 3 September 1992: 'Central Power
Project Planned'.
12. Newsweek, (July?) 1992: 'Asias Oil Boom'.
13. Asian Pacific Environment - APEN Newsletter December 1992, Vol 7, No 2: 'One Third Of World Bank Projects Fail'.
AUG-SEPT 1993
DEADLY ENERGY:-'COLLABORATION. COERCION A N D ANNIHILATION
Other forms of collaboration between the SLORC and the Thais have been: the burning down or
forced relocation of refugee camps by the Thai army, presumably on the orders of the Interior
Ministry; the threat (also made by the interior minister) of enforced closure of the border other than
official border trade routes controlled by the SLORC (depriving the indigenous groups of their income
and food supplies); the threat of blockades against Karen strongholds on the border such as
Kawmoora (a threat carried out early in the SLORC's tenure)5; the harrassment, arrest and
incarceration of Burmese dissidents in Thailand; and a variety of pressures on ethnic refugees6 etc.
It is unfortunate, but unlike Nobel Peace Winner Daw Aung San Suu Kyi and the 1990 election
winning NLD party that was denied the reins of power by the SLORC, the junta has shown no
believable interest in acheiving a peacefully negotiated settlement with the ethnic groups w h o still
continue their struggle. Instead, the SLORC has reiterated its pledge to "annihilate the insurgents", a
genocidal program it has squandered much of the country's resources to carry out.
The SLORC has adamantly refused to talk with the united ethnic and pro-democracy
organisations. Instead, it has tried repeatedly to single out those groups w h o occupy territory rich in
natural resources in order to strike separate - and divisive - ceasefire terms with them, thus splitting
them away from the united strength of the umbrella group the Democratic Alliance of Burma7. They
have also been trying to create divisions between the autonomy minded indigenous groups on one
hand and the mostly Burman pro-democracy groups such as the election winning NLD ( L A )
members, students and monks groups w h o are allied with or part of the DAB. The SLORC has
declared the Burman groups to be "traitors" and has condemned them to death or long
imprisonment, while to most of the former it has offered what are tantamount to surrender terms - or
annihilation.
Many outside parties have been trying to broker peace talks between the ethnic groups and the
SLORC, including the likes of the German government, the Chinese, Thais such as the widely
distrusted Interior Minister General Chavalit, and even the Jimmy Carter Foundation. To date these
efforts have been fruitless at best, and at worst have been very much to the advantage of the
dictatorship, which has managed to impose "ceasefires" on some of the more fragmented or
biddable groups such as the drug trafficking Kokang, or the surrounded Palaung (almost the entire
civilian population of whom were virtually taken hostage). In this it has ironically been abetted by UN
agencies and the DEA, whose apparent efforts to maintain a foothold in the worlds most productive
opium growing area have led to programs like B A D . 8 and US$80 million aerial spraying programs of
herbicides similar to Agent Orange9 over the food crops of ethnic civilians.
While the supposedly well meaning peace brokers have been trying to push the indigenous
groups to the SLORC's table, the SLORC has been acquiring huge quantities of arms from its Chinese
backers10, doubling the numbers of the already bloated armed forces, pressuring its neighbours to
squeeze the opposition groups from behind, and stepping up the forced relocations of villagers11.
These actions plainly indicate an intent to launch a heavy offensive. This will probably come after it
has gained whatever fruit it hoped to get from its one and a half year political offensive that has
been exemplefied by its delegations sent around the globe12, its engagement of a US public relations
firm, and its orchestration of the so called "National Convention". These have already gained it
investments from all over the world, including India; visits by bought American congressmen 13 ; and
some easing of Western pressure. O n e particularly ripe fruit that may be offered is that of the dams
and gas pipeline deals.
Without the effective backing of international pressure such as economic sanctions and a UN
backed arms embargo against the brutal and insensitive dictatorship, to expect the ethnic a n d pro-
democracy groups to go to the table to negotiate is to expect them to do so from a position of
relative weakness. In view of the political and military support the SLORC has been getting from the
Chinese, the Thai and Indian constructive engagement approaches, the hundreds of millions of
dollars from Western investors, and with its buildup of armed strength, the SLORC is in a powerful
position to dictate terms.
The pro-democracy and indigenous groups, lacking tangible political, financial a n d military
support from those w h o should be their natural allies, ruthlessly exploited by former allies w h o have
turned to befriend those w h o murder, rape and maim them, and lacking protection from the United
Nations the founding mandate of which was to uphold human rights, are not in a confidence
inspiring situation. If they - and the vast majority of the 42 million Burmese people w h o m they
represent in spirit - do not get a greater level of credible and relevant support from those w h o
purport to stand for them and the issues they represent, they would be able to gain little more than
thinly veiled surrender terms from any such talks. They would also attain virtually none of the political
objectives for which at least t w o generations of the indigenous peoples have been fighting, for
which many thousands of Burmese have been massacred, and for which thousands more, including
Nobel Laureate A u n g San Suu Kyi have been imprisoned.
Certainly, if the same amount of pressure as has been put on the ethnic and pro democracy
groups was applied against the SLORC dictatorship the situation would be very different today.
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
country's natural resources to the worst of environmental predators that these are totally insignificant to the SLORC. Even
more clear is the juntas utter lack of care about negative social impacts arising from the projects, if not intention to create
them.
When and if any joint energy production agreement is signed, the institutions and countries with a vested
interest in the projects may well be able to bring about a lifting of the international aid embargo that is still in place.
Several of the multilateral banks, particularly the Asian Development Bank, but also the World Bank have interests in the
dam and gas development projects. The ADB, as pointed out, has already violated the sanctions by funding the Klong
Kra feasibility study, while the World Bank in 1987 approved US$63 million for the development of a gas pipeline from
the Irrawaddy Delta to Rangoon (close to the Martaban Field) and to improve distribution infrastructure in Rangoon. The
World Bank has reportedly been approached by PTTEP to help fund the Martaban project8. The involvement of EPDC,
which accesses Japanese development aid and multilateral bank funding may be instrumental in such an attempt9.
Lifting of the sanctions would be a major victory for the military dictatorship.
The amounts of money the SLORC could gain from the ventures could enable it to complete its massive build-up
of the armed forces and its programs to acquire huge quantities of relatively modern powerful weaponry10. To what use
an extremely aggressive, half million strong, well armed force aligned with an increasingly influential, arrogant and well-
armed China would be put is a very serious matter for regional stability11. It is clear that China is giving to the SLORC all
the backing it requires to make it behave offensively towards Bangladesh, and even Thailand and the rest of the world.
China itself has been causing great worries in the region with its aggressive stance over the Spratley Islands - which,
perhaps not coincidentally, are very rich in fossil fuels.
The regime would gain considerable leverage over the Thais as they would ultimately control the supply. Thai
officials have themselves expressed the concern that Thailand will be vulnerable to unilateral pressure from the SLORC.
EGAT sources were reported as saying "as a buyer we have more obligations to fulfill; we have to undertake downstream
investment in the power plant. We have much less bargaining power in the case the supply is not delivered."12 This
concern is well founded as the SLORC is well known for its giving and withholding in the case of the timber concessions13
- in much the same way that a heroin dealer manipulates an addict.
The regime will gain a variety of military benefits. As noted, almost all the areas that will be affected by the
projects are strategically sensitive. If by the time the projects go ahead there is still fighting, supply and communication
routes for the revolutionary groups would be cut, access roads the SLORC troops could use would be made with interna-
tional development assistance, and key opposition towns and headquarters areas submerged. Forest cover would be
cleared away and large contingents of guards posted. The heart of the revolutionaries' operation area would be occupied
and a large proportion of it flooded.
Perhaps most critical of the benefits to the regime is the political legitimacy it gains as the various countries woo
the SLORC to secure a stake in Burma's resource cake. This endorsement may extend to recognition of the constitution
produced by the "National Convention" the SLORC has been (none too successfully) orchestrating, and which it has
loaded with hand-picked, non-elected delegates. If the new constitution is recognized by the international community,
then the dictatorship may be able to maintain the UN seat unquestioned, have its genocide recognized as merely
counter- insurgency, and gain full resumption of aid.
1. Asian Development Bank; 'Conference on Subregional Economic Cooperation', 21-22 October 1992, Manila.
2. Manager, June ! 992: 'Light in the Head...and Groping in the Dark'.
3. Ministry of Planning and Finance, Union of Myanmar, 'Review of the Financial, Aconomic and Social Conditions for
1990-1991'.
4. Sources recently arrived from Toungoo District.
5. Union of Myanmar, Forest Research Institute, Forest Dept: 'Country Status Papers for Expert Consultation'. By Saw
YAC.Doo, October 1991.
6. Allen PE.T., 1984. National Forest Survey and Inventory, FAO/UNEP Technical Note 11. Bur/79/011.
7. 'Rangoon Slams Door On Thai Logging Deals', The Nation, 2 July 1993; 'New Twists In Thai-Burma Policy', The
Nation, 5 August 1993 (reprinted in The Burma Focus', Vol.4, No.4, 15 August 1993.
8. Far Eastern Economic Review, 20 February 1992: 'Slick Set Up'.
9. EPDC Promotional Literature. 1983.
10 .Economist intelligence Unit: Thailand-Burma Country Report No.4, 1990: 'Sizeable Increase In Army'; Economist
Intelligence Unit, Thai-Burma Country Report No. 1, 1991: 'Huge Arms Purchase Bolsters Army's Strength'.
11. Far Eastern Economic Review, 12 November 1992: 'China Building New Naval Base In Irrawaddy Delta'; 'Fear Voiced
at Growing China Ties With Burma', Bangkok Post, 9 February 1993.
12.'EGAT Plans To Purchase Burmese Gas From PTT, The Nation 13 November 1991.
13. As evidenced by the number of times the SLORC has threatened to stop the concessions on various pretexts, includ-
ing that of being concerned about the environment!
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GREEN NOVEMBER 32 MYA YADANA REPORT
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GREEN NOVEMBER 32 MYA YADANA REPORT
the SLORC towards democratization and openness, quite obviously in practice has more to do with opening up Burma
to further exploitation of the country's human and natural resources.
Despite the optimistic perception of Thai Prime Minister Chuan Leekpai that "changes have taken place" in
Burma9, there has been little positive change of any significance. Many changes have been for the worse, even to the
increased number of border incidents caused by Burmese troops, also in the increased costs of living10, and the in lives of
the people in the remoter areas. With the SLORC's massive build up of weaponry and doubling in size of the armed forces
they could easily get worse still.
None the less the Thais, who have quite possibly already committed themselves to the energy joint ventures,
seem to be preparing to sign anyway11. At the present time it appears that they may wait until the SLORC has finished
with the National Convention and its manipulation of a new constitution, although they may not even wait that long.
Once that is completed and the regime announces plans for a second set of "free and fair" elections, the Thai Foreign
Minister may announce something to the effect of important steps in the process of the democratization of the country
have taken place. The PTT officials, doing their 'democratic' governments bidding, would then take the opportunity to
sign into the gasfield venture with their unprincipled multinational corporative friends.
Four things are certain in this scenario. These are that the SLORC will not surrender their stranglehold on power
to a government that they do not control in all significant ways12, the roots of the economic, political and social problems
in Burma will not be dug out, the rape of the environment will continue and worsen, and the great sufferings of the
people, in particular the indigenous nationalities, will not end.
1. Electricity Generating Authority of Thailand: General Information, EGAT Power Development Plan PDP92 01 (0),
September 1992.
2. Ibid.
3. 'EGAT Plans Boost in Reserve', The Nation, 8 June 1993.
4. 'Energy: Issue of Demand Vs Supply'. The Nation, 2 October 1992.
5. National Energy Administration. Klong Kra Buri Project Preliminary Study, 1989. Map showing proposed flood area;
Thailand Looking to Burma for Water", The Nation, 8 July 1992.
6. United Nations, AP 24 November; 1993. UN Special Rapporteur on Human Rights Report. {Also see reports from Amnesty
International, Asia Watch, Anti-Slavery Society, International Commission of Jurists, Lawyers Committee for Human Rights,
Article 19 and others. All of the numerous accounts of human rights violations have of course been routinely and repeated
denied by the SLORC- except by Saw Maung in his declining days...).
7. ESCAP Environment News, Vol 8,No I, Jan -Mar 1990. "...U Ohn Gyaw, Chairman of the National Commission for
Environmental Affairs...").
8. Far Eastern Economic Review, 5 August, 1993.
9. Ibid.
10. Economist Intelligence Unit. Thailand-Burma Country Profile 1990-1991, Annual Survey of Political and Economic
Background.
11. 'Burma Gas Deal in Pipeline', The Nation, 8 September 1993.
12.'New Burma Charter to Favour Junta' AFP Bangkok Post, 8 September 1993.
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GREEN NOVEMBER 32 MYA YADANA REPORT
SLORC's arbitrary opening and closing of border trade points such as Mae Sot, arrests and occasional shooting of villag-
ers. fishermen and timber workers4, the announcement of the stopping of fishing and logging concessions to Thai
companies (while issuing new logging concessions to the Chinese who have been carrying out vast scale logging in the
north of the country5), together with a long history of antagonism between the two countries, have increased anti
SLORC sentiments amongst many Thai people who have themselves only recently thrown off the yoke of military dicta-
torship.
Against this background of events Thai authorities may have difficulty selling the idea of closer collaboration with
the SLORC to their public. Thai officials, probably because they are uncertain of what the real opposition could be and
prefer to deal with it before rather than after the contracts are signed, have given plenty of notice of their intention to cut
the deal with the SLORC, thereby inviting comment or criticism from the Thai or international communities. There has
been relatively little open response to this as yet, but pressure is certainly building.
Public awareness in Thailand is still relatively low in regard to the full implications of the impending marriage
between the Thai government and the SLORC. The opposition is still quite disorganised. This however is changing quite
rapidly, the Thai English language media has been vocal in its criticism of the governments ingratiating itself with the
SLORC dictatorship; local and international groups have started to mobilise; and the indigenous groups that will be
affected by the projects are quietly organising themselves.
How the PTT, EGAT and government decision makers will deal with this is less than clear. Combined with the
ongoing aggression of the SLORC; pressure from the international community; the tangible threat of later disruption of
the supply; disappointed with the lack of tangible results from their years of constructive engagement; and being forced
to acknowledge the evident fact that the SLORC's National Convention is patently undemocratic; the Thai government
may finally decide that it is too risky a venture. It is not impossible that really strong negative public opinion may even lead
to a shelving of some of the more controversial projects, if not all.
The multinational corporations, although they have invested many millions in their ventures with the SLORC, are
still not really securely entrenched. Many things can still go wrong for them, as has been the experience of other oil
companies who engaged in business adventures with the SLORC6.
A good example of this is Shell Oil, the worlds largest multinational oil company, which pulled out of Burma even
after being the only one of the eight corporations that invested in onshore oil exploration with the SLORC. Shell made
what their media relations division termed "a major gas discovery'" at Aphyauk in the Central Plains by the Irrawaddy
River. After spending a minimum of US$60 million on its exploration as set out in its contract with the regime, the
company moved out of Burma on the 17th of February 1993. The reason given by a senior Shell official was they
"decided to relinquish it purely due to disappointing results"8 from test drilling, adding that they had tried but failed to
negotiate new exploration blocks with the SLORC. Shell however had been thoroughly embarrassed by a British docu-
mentary alleging the use of 40,000 villagers for forced labour in the construction of a service road for a gas pipeline to
the Shell well site9. This had come out on top of a widely viewed expose of the massacre of 70 demonstrators in Nigeria
after Shell had called out the riot police there.
Other companies had also pulled out of Burma under boycott pressure (notably the state owned Petro Canada)
or due to embittering experiences with the regime. An example of the latter was Texaco's former partner Clyde Petroleum
Plc. whose chairman responded to a campaign letter saying they "...entered into oil exploration in Myanmar during the
brief democratic spring and were encouraged to do so by the British Government....however, since then there has been
a marked deterioration and Clyde is now in the process of withdrawing completely from the country"10.
It is conceivable that the oil companies may decide not to develop the gasfields if PTT decides to pull out, or if
public boycott pressure gets too strong for them. Significantly the companies' work in developing the gasfields is still
believed to be centred around appraisal of the potential of the two fields11, appraisals that will take possibly several years
to fully complete.
Although the companies have invested a considerable amount of money already, it is still possible that a number
of factors could make their investment more costly than worthwhile. These include, the SLORC's possible dishonouring of
contract terms with the companies, and its further abuses of the population, the actions of the Western Governments -
especially the US government which has ordered a review of its Burma policy; the acts of the Chinese; United Nations
moves to protect human rights as mandated; the success of the various boycotts launched against the oil companies for
their support of the dictatorship; the possible need to find another market if Thailand pulls out of the deal; and the
resistance of the millions of indigenous peoples and Burmans who wish to be rid of the regime that continues to oppress
them.
While not being an unusual event, the MNCs have weakened their own position by violating the standards of
behaviour they themselves have publically set. Although some of the ethnic leaders have been approached with threats
or bribes to leave the projects alone, it would not be true to say that they have been "consulted" as to their will in regards
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GREEN NOVEMBER 32 MYA YADANA REPORT
to the wellbeing of their people.
Ethnic and pro-democracy group leaders have stressed their opposition to the development projects, criticizing
the Thais foi both their constructive engagement policy and the environmental and social damage the projects will
cause12. Both Karen and Mon leaders have announced their intention to destroy the pipeline and the dams.
This reality does not sit well with the self proclaimed principles of oil industry leaders as expressed in the E & P
Forum publication titled "Oil Industry Operating Guideline For Tropical Rainforests". The production task force for this
publication, which is presumably supposed to impress the impressionable with the reponsible attitude of the oil compa-
nies towards the cultures of others, included representatives from both Total and Texaco. This document proclaims that
"The rights of the indigenous population should be identified and respected throughout the operation. These
people should not be exposed to any influence that threatens their health, safety, or long term welfare. The integrity of
the traditional native lands should be maintained ... Local labour should only be used with the advice or consent of the
local government, where it exists. However it must be recognized that local government will not in all cases exist, be
effective, or have priorities consistent with those of the local populace and indigenous peoples. Where the operating
company believes that this may be the case, the company should take steps to ensure that appropriate consultation will
occur directly with the local population regarding aspects of the project that will potentially affect their interests."
Not one of the oil companies operating in Burma has even approached, let alone consulted with either the
ethnic peoples or their representatives. It would be interesting to hear what sophistries they would justify their activities
with.
1. Thailand, Burma Must Find Ways To Solve the Border Problems', Bangkok Post, 18 October 1992.
2. 'Burmese Troops Remain Entrenched in Thai Soil', The Nation, 12 July 1989.
3. 'Protest Over Border Shooting By Burmese', Bangkok Post, 31 July 1993.
4. Thai Hunters "Hunted" By Burmese Troops. 4 Missing', Bangkok Post, 23 May 1993; 'Officials Act on Burmese Killing
of Fisherman', Bangkok Post, 8 April 1993; Burmese Silent on 16 Arrested Thais', Bangkok Post, 26 May 1993.
5. 'Burma. China Ink Logging and Hotel Construction Deals', AP The Nation, 11 July 1993.
6. 'Risks Seen In Total's Burmese Gas Venture', Bangkok Post, 17 October 1992; 'Burmese Drills Grinding To a Halt', The
Financial Times, 4 November 1992; 'Awaiting the Third Wave', Manager, April 1993.
7. SIPC Media Relations, 10 October 92: 'Myanmar (Burma) Actual Situation In The Country/ Shell Activities Oil/Gas'.
8. Bangkok Post, 25 November 92: 'Shell Pulling Out of Burma Oil Industry'.
9. 'Blood, Sweat and The Number Nine', Channel Four Documentary. Directed by M.Smith (not Martin Smith).
10. Letter from Dr. Colin Phipps, Chairman, Clyde Petroleum Pic., to Mr Gergory Holm, dated 23 November 1992.
I I . 'Martaban Gas Signs Positive', Bangkok Post, 8 September 1993; Texaco PR.. News From Texaco, 28 June 1993.
12. 'Burma's Dissident Government Asks French Government to delay Gas Project', Bangkok Post, 18 December 1992;
Interview with Dr Em Marta, DAB and KNU Foreign Secretary, March 1993; Dawn Magazine, (ABSDF); Campaign Flyers
Issued by ABSDF
SUMMING UP
There are many issues tied up in the Thai/ SLORC/ MNC energy joint ventures, including those of the environ-
ment, indigenous peoples rights, democracy, basic human rights, militarism and civil war, narcotics, regional and global
power politics, poverty, resource exploitation, economics, refugees and the need for different forms of development. All
of these make the evaluating the benefits and costs of the ventures a particularly difficult task.
For this job to be left in the hands of politicians, engineers, development consultants and military officers - who
have vested and highly questionable interests in seeing the projects go ahead - is a singularly dangerous, unbalanced and
inappropriate approach. It is also very dangerous that there has been no publically available analysis of the social or
ecological impacts of the projects, even though these will be far greater than for development projects done under
normal circumstances in countries that are open and peaceful.
The projects will have very significant long and short term implications in the political arena, both in Burma and
Thailand. Not the least of these are the issues of national security and energy security which will be compromised by
investing such a large proportion of the country's future energy producing capacity with a regime that has shown itself
on many occasions to be belligerent towards Thailand. The heritage of ill will against Thailand that has been developing
in the hearts of those future leaders of Burma who are in the Burmese pro-democracy movement is also a factor to be
counted.
It is also very much worth noting that the military forces under the Democratic Alliance of Burma are by no
means defeated. They have shown remarkable ability to resist the numerically and logistically superior Tatmadaw (Bur-
mese army). The sites of most of the important energy projects are still strongly under their control, and will not be
AUG-SEPT 1993
GREEN NOVEMBER 32 MYA YADANA REPORT
occupied without bloodshed Therefore statements or people like ex-Prime Ministers Office Minister Dr Anuwat
VVattanapongsiri. one of those who initiated the discussions with the SLORC about the dams, may say that he "did not
expect any opposition from Burmese 'rebels' because everybody would benefit from the joint development projects" are
both deceptive and mistaken (See 'Thai-Burmese Electricity Project Agreed', Bangkok Post, 16 December 2532).
The collaboration of the Thai authorities with the SLORC in its attempts to "eliminate" those who oppose them -
and even the simple indigenous villagers who oppose no one - will continue to be brought to light. The human rights
violations perpetrated by the Thais themselves in their attempts to secure the energy (and other resources) from Burma
will continue to befoul the image of Thailand internationally. The signing of the gas and hydro development deals will
inevitably bring intensified criticism and international condemnation, possibly to the point that it will affect tourism and
other investments. Furthermore, evidence concerning US and other Western companies abetting of these brutalities
could result in court cases being brought against the multinationals in US courts, resulting in their being forced to
abandon their investments, which could mean Thailand would have to undertake the projects alone or abandon them
altogether.
Several trends have become very clear in recent years:
Environmental movements, impelled by the growing global awareness of impending ecological catastrophy.have
gained or are gaining the power to make the great changes that are necessary in the flawed development
models;
Human rights issues have gained even greater prominence in political developments; and
Dictatorships have been falling all over the world in favour of democratic institutions.
AUG-SEPT 1993
Mya Yadana Report
Deadly Energy
Green November 32
August-September 1993
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