BURMA BULLETIN

A month-in-review of events in Burma

A L T E R N A T I V E A S E A N N E T W O R K O N B U R M A

campaigns,

advocacy

&

capacity-building

for

human

rights

&

democracy

Issue 54

June 2011

The situation in Burmas ethnic nationality areas further deteriorates with heavy fighting between the Tatmadaw and ethnic armed groups in Kachin, Shan, and Karen States. Fighting in Kachin State displaces 13,000 civilians. Tatmadaw soldiers gang-rape at least 18 women and girls. Six of the women are killed after being raped. Daw Aung San Suu Kyi celebrates her 66th birthday in freedom. The regime sends an ominous warning to Daw Suu over her plans to travel out of Rangoon. UNODC report says Burma is Southeast Asias largest producer of amphetamines and the worlds second largest producer of opium. ILO says that forced labor complaints in 2010 doubled compared to the previous three years and reiterates that the regime has failed to make significant progress towards ending the practice as reports continue to surface. UNHCR report says that in 2010 Burma was the worlds fifth largest producer of refugees and the seventh-largest source of asylum seekers. US State Department report says the regimes human rights abuses, including the use of forced labor and the recruitment of child soldiers, remain driving factors behind trafficking in Burma. EU delegation visits Burma and says that the regimes promises of reform must be matched by actions. US Senator John McCain visits Burma and says that improvement in US-Burma relations are conditional on the regimes concrete action with regard to democratic reforms and the release of political prisoners. KEY STORY

IN THIS ISSUE KEY STORY

1 Kachin State: 13,000 displaced 3 Shan State: 8 civilians killed 3 Karen State: Fighting goes on

INSIDE BURMA
4 4 4 4 Daw Suu turns 66 Daw Suu supports CoI Regime attacks Daw Suu, NLD UNODCs World Drug Report

HUMAN RIGHTS
5 Freedom of expression 5 Forced labor continues 6 Abysmal human trafficking

DISPLACEMENT
6 UNHCRs Global Trends 2010

INTERNATIONAL
7 7 8 8 8 Regime-North Korea ties US calls for concrete action EU: Actions not promises Ban Ki-moon committed India-regime cooperation

ECONOMY
8 Kyat appreciates 9 India deals 9 FDI nears US$20 billions 9 OTHER BURMA NEWS 11 REPORTS
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In June, the situation in Burmas ethnic nationality areas further deteriorated with Tatmadaw offensives in Kachin, Shan, and Karen States. Kachin State: 13,000 displaced; women raped and killed In June, simmering tensions between the Tatmadaw and the Kachin Independence Army (KIA) erupted into violent conflicts in Kachin State and Northern Shan State. The hostilities displaced 13,000 civilians. The Tatmadaw deployed thousands of additional troops in Bhamo and Momauk Townships.1
Kachin News Group (15 Jun 11) Burmese government dispatches three army divisions to Kachin State; Irrawaddy (14 Jun 11) Chinese Dam Workers Allowed to Return; Kachin News Group (23 Jun 11) KIA denies starting war with Burmese Army
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 Early June: The Tatmadaws Northern Command based in Myitkyina sent an ultimatum to the KIA, demanding the withdrawal of its troops from Momauk Township by 11 June.2 9 June: Following the KIAs rejection of the regimes ultimatum, about 500 Tatmadaw troops entered KIA-controlled areas in Momauk Township and fired on KIA Brigade 3 forces.3 The clash sparked other clashes between the KIA and the Tatmadaw in Momauk, Bhamo, and Waingmaw Townships.4 15 June: KIA and Tatmadaw forces clashed at the Shweli dam No. 1 site in Muse Township, Northern Shan State.5 15 June: KIA and Tatmadaw forces clashed in Namkhan and Kuktai Township, Northern Shan State.6 On 17 June, the KIA political wing, the Kachin Independence Organization (KIO), rejected a regime ceasefire offer because it wanted to see tangible evidence that top regime officials in Naypyidaw had ordered an end to the fighting.7 Fighting continued, also spreading to Northern Kachin State: 17 June: KIA Brigade 2 forces killed 17 Tatmadaw soldiers from IB 141 in a clash in Mohnyin Township.8 19 June: KIA forces destroyed a Tatmadaw intelligence outpost in Bhamo Township.9 22 June: Tatmadaw and KIA Brigade 1 forces clashed in Putao Township.10 23 June: KIA forces killed three Tatmadaw soldiers from IB 74 in a clash in Mansi Township.11 26-27 June: Two trains transporting Tatmadaw troops and military equipment arrived in Myitkyina.12 27 June: KIA forces killed three Tatmadaw soldiers in a clash in Hpakant Township.13 30 June: Kachin Independence Army Brigade 4 troops attacked a Tatmadaw convoy on the Mandalay-Muse road, in Muse Township, Northern Shan State.14 On 24 June, it was reported that more than 13,000 people in Momauk, Bhamo, Mansi, and Waingmaw Townships had fled from conflict zones to IDP camps in KIA-controlled territories on the China-Burma border.15 Tatmadaw forces committed serious abuses against civilians as part of their ongoing military offensives. Between 10-18 June, Tatmadaw soldiers from IBs 139, 141, 142, 237, and 437 gang-raped at least 18 women and girls. Six women were killed after being raped.16

2 USCB (13 Jun 11) BURMA: Battles in Kachin State continue; Kachin Independence Army (KIA) issues an order to its troops to launch full-scale resistance war; 28 Chinese engineers become hostages; Kachin News Group (23 Jun 11) KIA denies starting war with Burmese Army 3 USCB (13 Jun 11) BURMA: Battles in Kachin State continue; Kachin Independence Army (KIA) issues an order to its troops to launch full-scale resistance war; 28 Chinese engineers become hostages 4 Kachin News Group (09 Jun 11) Fighting between Kachin and Burmese troops for three hours; DVB (10 June 11) Kachin army refutes talk of war; Kachin News Group (12 Jun 11) Non-stop fighting at Sang Gang; Kachin News Group (11 Jun 11) Last KIO liaison office in Myitkyina to close; Kachin News Group (12 Jun 11) Two straight days fighting between Burma Army-KIA in N.Burma; DPA ( 12 Jun 11) Fighting breaks out in Myanmar's Kachin state; AP (14 Jun 11) Myanmar govt battles ethnic military in countrys north, where China is building power plants; Mizzima News (14 Jun 11) Bauk Ja says government troops suffer heavy casualties in fight with KIA; Mizzima News (14 Jun 11) Nam Hpak Hka suspension bridge immobilized by Kachin armed group; Reuters (15 Jun 11) Myanmar border clashes spark fears of wider conflict; Reuters (16 Jun 11) China urges talks as refugees flee Myanmar fighting; Irrawaddy (15 Jun 11) Kachin Conflict Sparks Refugee Situation 5 Kachin News Group (15 Jun 11) KIA Burmese Army clash near Shweli Dam No. 1 6 Kachin News Group (15 Jun 11) Fighting between KIA and Burmese troops in Northern Shan State 7 Mizzima News (17 Jun 11) Burmese government offers KIA a cease-fire; fighting continues; Reuters (20 June 11) Myanmar fighting flares after peace talks fail 8 Kachin News Group (17 Jun 11) Seventeen Burmese soldiers killed in Sinbo 9 Irrawaddy (20 June 11) Fighting Continues in Northern Burma as Govt Reinforce Troops: KIA 10 Kachin News Group (22 Jun 11) New war front opened between KIA and Burmese troops in Puta-O 11 Kachin News Group (24 Jun 11) Three Burmese soldiers killed fighting KIA in Manje 12 DVB (28 Jun 11) Trains carry weaponry into Kachin capital 13 Irrawaddy (28 Jun 11) KIA Doubts Burmese Army Will Attack Through China 14 Kachin News Group (30 Jun 110) Kachin Army attacks Burmese military convoy 15 Mizzima News (24 Jun 11) KIO camps now sheltering 13,000 war refugees; Irrawaddy (15 Jun 11) Kachin Conflict Sparks Refugee Situation 16 DVB (20 Jun 11) Kachin raped, killed by Burmese troops; KWAT (21 Jun 11) Kachin women demand immediate end to Burmese regimes use of rape as a weapon of war in northern Burma offensive

The fighting in Kachin State alarmed Beijing, which has heavily invested in hydropower projects along the China-Burma border. On 14 June, the KIA evacuated 215 Chinese workers from the Tarpein hydropower dam site in Momauk Township to the Chinese border.17 On 16 June, Chinese Foreign Ministry spokesman Hong Lei called for an end to the fighting and urged the KIA and the regime to use peaceful negotiations to resolve the dispute.18 Shan State: Tatmadaw kills eight civilians, uses chemical weapons In Shan State, reports surfaced that Tatmadaw troops had used chemical weapons during military offensives against Shan State Army-North (SSA-N) troops. Increased Tatmadaw troop deployments heightened tensions in SSA-N and Shan State Army-South (SSA-S) controlled areas.19 In addition, Tatmadaw troops killed nine civilians. 3 June: Tatmadaw troops fired mortar shells at SSA-N soldiers in Tangyan Township that allegedly contained chemical weapons. The mortar shells released smoke on impact that caused those exposed to faint, suffer from dizziness, nausea, and breathing problems.20 6 June: Tatmadaw soldiers from IB 296 shot and killed a 44-year-old villager in Kunhing Township.21 11 June: SSA-S forces killed three Tatmadaw soldiers in an attack in Kengtung Township.22 12 June: Tatmadaw forces attacked an SSA-N base at Kawng Sao Merng Village in Hsipaw Township. The fighting left at least one villager dead.23 13 June: Shan State Army-North Brigade 74 forces kill four Tatmadaw soldiers in a clash in Monghsu Township.24 14 June: An unidentified Tatmadaw battalion shot and killed four villagers from Hsipaw Township while they were working on a farm.25 16 June: Tatmadaw LIB 501 troops shot and killed a 35-year-old villager in Hsipaw Township. On the same day, Tatmadaw soldiers from IB 67 shot and killed a thirteen year-old girl and a 70 year-old woman in Hsipaw Township.26 21 June: Tatmadaw troops overran the SSA-Ns Ta Pha Hsawng base in Kyethi Township.27 Karen State: Hundreds displaced, BGF troops defect Fighting continued between the Tatmadaw and joint forces from the Democratic Karen Buddhist Army (DKBA) and the Karen National Liberation Army (KNLA), as the Tatmadaw deployed more troops to Karen State.28 7 June: Tatmadaw LIB 283 fired mortar shells into Mae Tlar Village, Kawkareik Township, and killed a seven-year-old-child.29 10 June: Fighting between KLNA forces and Tatmadaw troops forced 200 villagers from Mae Ka Tha Village, Kyainnseikyi Township, to flee to the Thai-Burma border.30 On 17 June, about 1,000 soldiers from four Border Guard Force (BGF) battalions in Hlaingbwe Township defected to the KNLA and the DKBA.31
17 Kachin News Group (14 June 11) Chinese dam workers evacuated by Kachin Army; AFP (18 Jun 11) Myanmar state media blames rebels for clashes 18 AFP (16 Jun 11) Myanmar rebels seek China's help in clashes 19 SHAN (21 Jun 11) Clashes increase after more Burma Army troops deployed to Shan territory; SHAN (24 June 11) Shan armys key bridge burnt down; SHAN(16 June 11) Newsflash; SHAN (17 June 11) Newsflash; SHAN (18 June 11) Newsflash 20 SHAN (07 Jun 11)Being honest about using CW; SHAN (03 June 11) Newsflash 21 SHAN (08 Jun 11) 3 villagers shot by Burma Army soldiers 22 SHAN (27 Jun 11) Newsflash 23 SHAN (13 Jun 11) Shan army loses another base 24 SHAN (15 Jun 11) Newsflash 25 SHAN (16 Jun 11) Newsflash 26 SHAN (08 Jun 11) 3 villagers shot by Burma Army soldiers; SHAN (16 Jun 11) Newsflash 27 SHAN (24 June 11) Shan armys key bridge burnt down 28 SHAN (24 June 11) Shan armys key bridge burnt down; IMNA (29 Jun 11) LID 22 Troops Prepare for War In Karen State 28 DVB (20 Jun 11) Burma deploys extra troops to Karen state 29 KHRG (16 Jun 11) Tatmadaw shelling kills one child, injures another in Mae T'Ler village 30 KIC (18 Jun 11) Burma army shelling displaces 200 villagers

INSIDE BURMA Daw Aung San Suu Kyi turns 66 On 19 June, Daw Aung San Suu Kyi celebrated her birthday in freedom for the first time since 2002. About 600 people, including NLD members, veteran politicians, ethnic leaders, and foreign diplomats participated in a ceremony to mark Daw Suus 66th birthday at the NLD headquarters in Rangoon.32 In a brief address to supporters, Daw Suu said that her birthday wish was for peace, stability and prosperity in the country.33 About 50 plainclothes police and intelligence agents took photos and videotaped participants from across the street.34 Birthday celebrations were also held in other parts of Rangoon Division as well as in Magwe, Mandalay, and Sagaing Divisions and in Kachin and Arakan States.35 Daw Suu renews support for CoI On 22 June, in a video message to the US House of Representatives Foreign Affairs Subcommittee on Asia and the Pacific, Daw Aung San Suu Kyi reiterated her support for a Commission of Inquiry into serious international crimes in Burma. Daw Suu said that such a commission should identify what human rights violations had taken place in Burma and make recommendations to ensure that these violations would not occur in the future.36 Regime attacks NLD and Daw Suu On 28 June, in response to Daw Aung San Suu Kyis and the NLDs unwavering pro-democracy activities, on 28 June the regime attacked the pro-democracy leader and her party: In a letter to the NLD, the regimes Ministry of Home Affairs said that the NLDs political activities, following its dissolution in September 2010, were illegal and hampered national reconciliation. The Ministry also said that the NLD should register as a social organization if it wanted to engage in social affairs.37 An editorial published in the state-run newspaper New Light of Myanmar warned Daw Aung San Suu Kyi against traveling out of Rangoon to meet supporters. The editorial said that if Daw Aung San Suu Kyi made trips to countryside regions, there may be chaos and riots.38 UNODC: Burma remains worlds second opium producer On 23 June, the UN Office on Drugs and Crime (UNODC) released its 2011 World Drug Report. The report said that opium production in Burma rose sharply and that Burma remained the worlds second

Mizzima News (22 Jun 11) Burmese government preparing offensive against Karen armed groups DPA (19 Jun 11) Myanmar's Aung San Suu Kyi asks for peace on 66th birthday; AP (19 Jun 11) Myanmar's Suu Kyi celebrates birthday in freedom; AFP (19 Jun 11) Suu Kyi celebrates 66th birthday as free woman; NLD (20 Jun 11) Daw Aung San Suu Kyi's birthday held across the country 33 AP (19 Jun 11) Myanmar's Suu Kyi celebrates birthday in freedom 34 AP (19 Jun 11) Myanmar's Suu Kyi celebrates birthday in freedom 35 Mizzima News (20 Jun 11) Suu Kyis birthday prayer for peace; NLD (20 Jun 11) Daw Aung San Suu Kyi's birthday held across the country; Narinjara News (21 Jun 11) Arakan People Call for Peace on Daw Suu's Birthday; Mizzima News (20 June 11) KIO wants proof to show Burmese troops have stopped military offensive; Irrawaddy (29 Jun 11) NLD Pressured to Cease Political Activities 36 AFP (22 Jun 11) Suu Kyi urges US effort for rights probe; NLD (23 Jun 11) Testimony of Daw Aung San Suu Kyi made before US Congress; VOA (22 Jun 11) Burma's Aung San Suu Kyi Asks for US Support for Rights Inquiry; Irrawaddy (23 Jun 11) Suu Kyi Urges US Support for CoI 37 NLM (29 Jun 11) Home Affairs Ministry sends letter to U Aung Shwe, Daw Aung San Suu Kyi informing they are to act in accord with law; DPA (29 Jun 11) Myanmar warns Suu Kyi off political activity ahead of tour; AFP (29 Jun 11) Myanmar tells Suu Kyi to halt political activities; Reuters (29 Jun 11) Myanmar's govt warns Suu Kyi planned tour could cause riots; BBC (29 Jun 11) Aung San Suu Kyi 'must end political activity'; Mizzima News (29 Jun 11) NLD, Suu Kyi receive official letter challenging its legal status and activities 38 DPA (29 Jun 11) Myanmar warns Suu Kyi off political activity ahead of tour; AP (29 Jun 11) Myanmar's Suu Kyi warned over plans for tour; AFP (29 Jun 11) Myanmar tells Suu Kyi to halt political activities; Reuters (29 Jun 11) Myanmar's govt warns Suu Kyi planned tour could cause riots; BBC (29 Jun 11) Aung San Suu Kyi 'must end political activity'
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largest producer of opium.39 The report also stated that Burma was the largest producer of amphetamine-type stimulants in Southeast Asia. Key findings revealed:40 Burma accounted for 12% of global production of opium in 2010.41 The number of households involved in opium poppy cultivation increased, from 192,000 in 2009 to 224,000 in 2010. The area for opium poppy cultivation increased from 31,700 hectares in 2009 to 38,100 hectares in 2010. The value of the crop rose by 68%, from US$105 million in 2009 to US$177 million in 2010. HUMAN RIGHTS Freedom of expression restricted 2 June: Police in Rangoons Mingaladon Township denied a request made by four candidates who contested the 7 November elections to hold a demonstration for the release of political prisoners.42 8 June: The regimes Censorship Board announced that publications that cover health, technology, arts, culture, sports, and childrens literature would have to abide by a set of 12 new regulations based on the repressive 1962 Printers and Publishers Registration Law.43 19 June: The Censorship Board banned four pages of the Bangkok Posts weekly insert that featured a story about Daw Aung San Suu Kyi and her upcoming planned tour of Burma.44 22 June: The Censorship Board ordered several weekly journals to sign a pledge to not violate the newly-released set of regulations for media publishers.45 29 June: It was reported that the Censorship Board banned a photo of Daw Aung San Suu Kyi from the cover of the July issue of the Dharma Yeik magazine.46 Forced labor continues unabated In June, the International Labor Organization (ILO) said that forced labor complaints in Burma dramatically increased and reiterated its position with regard to the regimes failure to make significant progress towards ending the practice in Burma: 7 June: Rangoon ILO Liaison Officer Steve Marshall said that the ILO had received 506 forced labor complaints since the start of 2010 - more than double the number of complaints received in the previous three years. Marshall said that the number of complaints did not reflect the true magnitude of forced labor in the country because many people were still unaware of their rights.47 15 June: After considering Marshalls report, the Committee on the Application of Standards concluded that there had been no substantive progress towards compliance with the 1998 ILO Commission of Inquirys recommendations i.e.: compliance of domestic legislation with the ILO

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Irrawaddy (24 Jun 11) Burma Narrows Gap with Afghanistan as Leading Opium Producer; Reuters (23 June 11) Afghan opium output hit by disease, Myanmar's up: UN; Irrawaddy (24 Jun 11) Burma Narrows Gap with Afghanistan as Leading Opium Producer; IRIN (24 Jun 11) In Brief: UNODC warning on opium cultivation in Myanmar 40 UNODC (23 Jun 11) World Drug Report 2011 41 The 12% figure differs from the 16% figure cited in the December 2010 Burma Bulletin because the UNODCs 2010 South East Asia Survey on which the December Bulletin was based did not account for Mexico, which has emerged as the worlds third largest producer of opium. 42 Mizzima News (01 Jun 11) Four candidates seek permission for demonstration; DVB (06 Jun 11) Politician-led prisoner demo blocked; Mizzima News (03 Jun 11) Candidates request to demonstrate for release of political prisoners denied 43 Xinhua (08 Jun 11) Myanmar to liberalize media publication control phase by phase; Myanmar Times (13 Jun 11) Precensorship lifted for some publications 44 Irrawaddy (20 Jun 11) BKK Post Censored for Suu Kyi Feature; Mizzima News (21 Jun 11) Burma bans Bangkok Post feature on Suu Kyis travel plans 45 Irrawaddy (27 Jun 11) Press Censors Issue Warning to Rangoon Editors; Mizzima News (27 Jun 11) Burmese journals free to publish without prior approval warned by censors 46 Mizzima News (29 Jun 11) Burmas censorship board bans magazine cover with photo of Suu Kyi 47 AFP (07 Jun 11) Forced labour complaints up in Myanmar

Forced Labor Convention, end of forced labor imposed by authorities, and enforcement of criminal penalties for the exaction of forced labor.48 In June, reports continued to surface on incidents of forced labor: 6 June: Tatmadaw troops from LIB 373 forced 34 villagers from Aplon and Myaing Thayar Villages in Kyainnseikyi Township, Karen State, to porter military supplies and walk ahead of troops as human shields and minesweepers.49 21 June: It was reported that Tatmadaw troops in Kachin State forced at least 10 residents from each quarter of Myitkyina to perform sentry duty along the Myitkyina-Namti railway.50 22 June: It was reported that regime authorities in Arakan State forced local villages to repair roads throughout Rambree Township.51 In addition, on June 9 regime authorities took about 100 prisoners from Myitkyina prison in Kachin State.52 On 16 June, regime authorities in Rangoon transported over 150 prisoners from Insein prison to an unknown location.53 Observers feared that in both cases, the Tatmadaw used the prisoners as porters in its offensive against the KIA in Kachin State.54 Burmas human trafficking record remains abysmal On 27 June, the US State Department released its Trafficking in Persons Report 2011.55 Burma ranked as a third tier country. This designation is reserved for countries that do not fully comply with the Trafficking Victims Protection Acts (TVPAs) minimum standards and do not make significant efforts to do so. The reports findings on Burma included:56 The regimes human rights abuses, including the Tatmadaws continued use of forced labor and the recruitment of child soldiers, remained driving factors behind trafficking in Burma. Burmese citizens living in areas with the highest military presence, including border areas populated by ethnic groups, were most at risk from forced labor and trafficking. Between 2010 and 2011 the regime failed to demonstrate discernible progress in investigating, prosecuting, and convicting perpetrators of internal trafficking - particularly the Tatmadaws forced conscription of soldiers and their use of forced labor. DISPLACEMENT UNHCR: Burma is worlds fifth-highest producer of refugees On 20 June, the United Nations High Commissioner for Refugees (UNHCR) released its annual Global Trends report for 2010.57 With respect to Burma, the report found:58 Burma was the worlds fifth-largest source country for refugees in 2010 with 415,700 refugees under the UNHCRs mandate, more than Sudan or Colombia. Burma was the worlds seventh-largest source country of asylum seekers in 2010, with 27,900 people petitioning the UNHCR for asylum. In 2010, 19,400 refugees from Burma participated in the UNHCRs resettlement process.
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International Labor Conference, 100th session, Special sitting to examine developments concerning the question of the observance by the Government of Myanmar of the Forced Labour Convention, 1930 (No. 29), 15 June 2010 and Recommendations 49 IMNA (08 Jun 11) Dozens of Villagers Forced to Porter in Three Pagodas Pass; Mizzima News (08 Jun 11) Villagers forced to serve as human shields and porters by Burmese soldiers 50 Kachin News Group (21 Jun 11) Burmese Army forces civilians to ensure security of Myitkyina-Namti rail road 51 Narinjara News (22 Jun 11) Forced Labor in Arakan Under New Government 52 Mizzima News (17 Jun 11) Prisoners from Insein Prison are taken to unknown location 53 Mizzima News (17 Jun 11) Prisoners from Insein Prison are taken to unknown location 54 Mizzima News (17 Jun 11) Prisoners from Insein Prison are taken to unknown location 55 US Department of State (27 June 11) Trafficking in Persons 2011 56 US Department of State (27 June 11) Trafficking in Persons 2011 57 Nation (20 June 11) Burma is the fifth world largest refugee producer: UN report 58 UNHCR (20 Jun 11) Global Trends 2010

INTERNATIONAL RELATIONS Regime-North Korea ties not severed On 1 June, Vice-President Tin Aung Myint Oo told visiting US Senator John McCain that Naypyidaw was abiding by UN resolutions that ban trade with North Korea in nuclear and missile technology.59 Despite the regimes assurances, a 12 June report by the New York Times renewed concerns over military cooperation between Naypyidaw and Pyongyang. According to the report, on 26 May a US Navy destroyer intercepted the North Korean cargo ship M/V Light south of Shanghai. The US suspected that the ship was carrying missile technology to Burma in violation of UN sanctions. The ships crew repeatedly denied US personnel permission to inspect the vessel. On 29 May, following diplomatic pressure from Washington and several ASEAN nations, the M/V Light eventually turned back to its home port.60 US calls for concrete action On 1 June, US Senator John McCain began a three-day visit to Burma. 1 June: McCain met regime Vice-President Tin Aung Myint Oo, National Assembly Speaker Khin Aung Myint and FM Wunna Maung Lwin.61 2 June: McCain met Daw Aung San Suu Kyi and representatives from political parties including the National Democratic Force, National Unity Party, Rakhine Nationals Progressive Party, and the Democratic Party (Myanmar).62 3 June: McCain said that improvement in US-Burma relations had to be built on concrete actions to include national reconciliation, the safety of Daw Aung San Suu Kyi, the release of all political prisoners, and compliance with UN Security Council resolutions.63 On 3 June, US Deputy Assistant Secretary for East Asian and Pacific Affairs Joseph Yun testified before the House Committee on Foreign Affairs concerning his May visit to Burma. In his testimony, he questioned the likelihood that the regimes positive rhetoric would be transformed into concrete action.64 In addition, the US repeated its calls for the establishment of UN-mandated Commission of Inquiry (CoI) into serious crimes in Burma: 15 June: At the17th Session of the Human Rights Council, US Ambassador to the UN Human Rights Council Eileen Chamberlain Donahoe said that the US remained committed to seeking accountability for human rights violations in Burma by establishing a CoI.65 25 June: US State Department spokesperson Victoria Nuland reiterated the call for the establishment of a CoI after Daw Aung San Suu Kyis gave her first ever video address to the US House of
Mizzima News (03 Jun 11) Burmese vice president says Burmas nuclear program has been halted; AFP (03 Jun 11) Myanmar too poor for nuclear arms: state media 60 NYT (12 Jun 11) U.S. Said to Turn Back North Korea Missile Shipment; CNN (14 Jun 11) U.S. wanted to board North Korean merchant vessel, Pentagon says; AFP (13 Jun 11) US intercepts North Korean ship at sea: report; Reuters (14 Jun 11) U.S. Navy intercepted North Korean ship; BBC (13 Jun 11) US Navy 'stopped North Korean vessel bound for Burma'; DPA (13 Jun 11) US intercepts North Korean ship bound for Myanmar; Christian Science Monitor (13 Jun 11) North Korean ship thwarted on way to Burma (Myanmar); WSJ (14 Jun 11) North Korea keeps silent on ships turnaround; VOA (143 Jun 11) US Blocks Ship Suspected of Carrying North Korean Arms; Irrawaddy (13 Jun 11) Report Revives Concerns about Burma's Ties with North Korea; DVB (13 Jun 11) US intercepts suspect N Korean ship 61 DPA (02 Jun 11) US Senator McCain meets Myanmar opposition leader Suu Kyi; Irrawaddy (02 Jun 11) McCain Meets Burmese Government and Opposition Leaders 62 Mizzima News (02 Jun 11) Sen. McCain visits NLD HIV/AIDS salvation centre; AFP (03 Jun 11) US senator McCain meets Suu Kyi; VOA (02 Jun 11) US Senator Meets Aung San Suu Kyi in Burmese Capital; Mizzima News (02 Jun 11) US Sen. John McCain expected to talk straight with Burmese leaders 63 Mizzima News (03 Jun 11) US Sen. John McCain's statement on Burmese visit; AFP (03 Jun 11) McCain warns Myanmar risks Arab-style revolt; Reuters (03 Jun 11) McCain says Myanmar seeking better ties with US; AP (03 Jun 11) McCain: Myanmar Must Free Prisoners; DPA (03 Jun 11) US Senator John McCain warns Myanmar of "winds of change" 64 Press Release: US State Department (03 Jun 11 )Joseph Yun - Deputy Assistant Secretary, Bureau of East Asian and Pacific Affairs (02 June 11) Testimony Before the House Committee on Foreign Affairs: Washington, DC 65 Irrawaddy (17 Jun 11) US Vows to Continue Pressing for Burma CoI
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Representatives Foreign Affairs Subcommittee on Asia and the Pacific on 22 June.66 EU: Regimes promises must be matched by actions On 20 June, an EU delegation that included European External Action Service Counselor Robert Cooper, High Representative of the Union for Foreign Affairs and Security Policy Catherine Ashton, and EU Special Envoy for Burma Piero Fassino began a fact-finding mission intended to measure the extent of change under Thein Seins regime. 20 June: The delegation met Vice-President Tin Aung Myint Oo, FM Wunna Maung Lwin, and Deputy Health Minister Win Myint in Naypyidaw.67 21 June: The delegation held talks with Daw Aung San Suu Kyi in Rangoon.68 22 June: In Rangoon, after the mission concluded its visit, Cooper said that the regimes promises of reform had to be matched by actions.69 Ban Ki-moon personally committed to Burma On 8 June, after the first meeting of the Group of Friends on Burma since the dissolution of the SPDC, UN Sec-Gen Ban Ki-moon reaffirmed the UNs commitment to engage Burmas regime and highlighted the international community's shared responsibility toward the Burmese people.70 On 14 June, UN Deputy Spokesperson Farhan Haq said that Sec-Gen Ban Ki-moon would soon name a fulltime Special Envoy to Burma to encourage the regime on the path to reform.71 India and regime bolster cooperation On 20 June, Indian External Affairs Minister S M Krishna and Foreign Secretary Nirupama Rao began a three-day visit to Burma.72 20 June: Rao met Daw Aung San Suu Kyi at her home in Rangoon and discussed Indo-Burma relations. Both expressed a desire to see the relationship blossom and grow.73 21 June: Krishna met with regimes FM Wunna Maung Lwin in Naypyidaw. Wunna Maung Lwin gave Krishna firm assurances that the regime would not allow Burmas territory to be used for antiIndia activities.74 The two FMs signed counter-terror pacts aimed at stemming cross-border movement of anti-India armed groups and weapons.75 ECONOMY Kyat appreciation affects migrant laborers, farmers, and exporters On 10 June, the value of the kyat appreciated to 750 kyat against the US dollar,76 a 48% increase from the value of 1,450 kyat in 2007 and a 10% increase from roughly 830 kyat in May 2011.77
66 AFP (25 Jun 11) US will support UN-backed Myanmar rights probe; VOA (25 Jun 11) US Signals Support for Burma Investigation; US Department of State (25 June 11) Daily Press Briefing 67 DPA (21 Jun 11) High-ranking EU delegation meets Myanmar ministers; NLM (21 Jun 11) Vice-President Thiha Thura U Tin Aung Myint Oo receives EU delegation; NLM (21 Jun 11) Myanmar, European Union to boost cooperation and relations; NLM (22 Jun 11) Director-General, General Secretariat of EU Council calls on Dy Health Minister 68 DPA (20 Jun 11) Senior EU diplomat visits Myanmar, to see Aung San Suu Kyi; DVB (22 Jun 11) EU meets Suu Kyi, democratic parties 69 AP (22 Jun 11) EU fact-finding mission to Myanmar encouraged by visit, but seeks actions matching words 70 UN News Center (08 Jun 11) UN committed to helping Myanmar on road to peace and democracy Ban 71 AFP (15 Jun 11) UN chief to name Myanmar envoy; Mizzima News (13 Jun 11) New UN Burma envoy to be appointed in due time 72 DPA (20 Jun 11) India, Myanmar to hold talks on trade, security; AFP (20 Jun 11) India's foreign minister visits Myanmar; AP (20 Jun 11) India, Myanmar to discuss trade and security ties; VOA (21 Jun 11) India puts security, trade with Burma ahead of democracy; PTI (20 Jun 11) Krishna reaches Myanmar; trade, security relations on agenda 73 IANS (22 Jun 11) Indian foreign secretary meets Suu Kyi; PTI (22 Jun 11) Rao meets Suu Kyi in first high-level Indian contact with her; AFP (23 Jun 11) Top Indian diplomat meets Myanmar's Suu Kyi; Mizzima News (22 Jun 11) India foreign secretary meets Suu Kyi; few details revealed 74 Irrawaddy (22 Jun 11) New Delhi Raises Security Issue with Naypyidaw 75 DVB (22 Jun 11) Burma pledges to rout Indian separatists 76 Asia Sentinel (22 Jun 11) Burma's Fast-Rising Currency

The rapid appreciation in the kyats value caused export-oriented industries, including garment, fisheries, and rubber exporters, to fear that their profits would be gravely affected.78 The unstable exchange rate also had an adverse impact on Burmas farmers. Decreased agricultural exports had already led to a domestic surplus and a subsequent drop in domestic prices.79 Finally, the kyats appreciation in value also had a negative impact on families in Burma who receive remittances in US dollars.80 Informal transfer systems have halted their services until the kyats value stabilizes.81 India and regime sign deals During a 20-22 June visit by Indias External Affairs Minister S M Krishna and Foreign Secretary Nirupama Rao, India and the regime signed a series of deals that included: An agreement to Indias proposal for the Kaladan Multi-Modal Transit Transport Project, which would link Akyab, Arakan State, to and Indias Northeastern States. 82 An MoU to set up an industrial training centre in Myingyan Township, Mandalay Division.83 An agreement to build an 80-km road between Indians Mizoram State and Chin State for US$60 million.84 A pledge of US$10 million in aid to the regime to expand the agricultural sector.85 Foreign investments nears US$20 billion In June, the Economic Intelligence Unit issued a report on foreign direct investment (FDI) in Burma. The report found that during the 2010-2011 fiscal year:86 FDI in Burma skyrocketed to US$19.4 billion, up from just US$302 million in the previous fiscal year. Of this investment, gas and oil sectors topped investments at US$10.2 billion, and the energy and mining sectors followed with US$8.2 billion and US$997 million respectively. The majority of the 2010-2011 FDI approvals came from China and Thailand. Annual food price inflation stood at 9.7% in January 2011. The report predicted that consumer price inflation would increase to an annual average of 14.3% in 2011, up from 7.7% in 2010. OTHER BURMA NEWS IN JUNE
2 3 5 6 6 Weekly Eleven journal reports that the regime lifted its suspension of it visa-on-arrival program for visitors from regions where there are no Burmese embassies. Police order several hundred roadside vendors in Rangoons Latha, Pazundaung, Botataung, Kyauktada, Pabedan, and Lanmadaw Townships to close. Unknown assailants kill a regimes Military Intelligence officer and a nine-year-old girl in an attack in Three Pagodas Pass, Karen State. Regimes Election Commission recognizes former NDF Peoples Assembly MP Thein Nyunt as an independent MP. Fifty-three Muslim leaders in Maungdaw, Arakan State, deliver a letter to Chief Minister Hla Maung Tin to demand that Muslims be issued national ID cards and lift restrictions on travel, marriage, and the renovation of mosques. Palaung Womens Organization, the Palaung State Liberation Front and the Taang Students, and Youth

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Mizzima News (03 Jun 11) Dollar falling sharply against Burmese kyat Irrawaddy (02 Jun 11) Export Sector Concerned about Drop in Dollar's Value; Irrawaddy (06 June 11) When a Worthless Currency Appreciates; Myanmar Times (06 June 11) Rubber industry hurt by price fluctuations 79 Irrawaddy (06 Jun 11) When a Worthless Currency Appreciates 80 Irrawaddy (06 Jun 11) When a Worthless Currency Appreciates 81 DVB (15 Jun 11) Currency crisis hits Burmese remittances 82 IANS (21 Jun 11) Myanmar, India agree to realign strategic transit project 83 Myanmar Times (27 Jun 11) India looks to reset ties with Myanmar 84 PTI (21 Jun 11) No anti-India activities from our soil: Myanmar 85 PTI (21 Jun 11) No anti-India activities from our soil: Myanmar 86 EIU (Jun 11) Country Report Myanmar (Burma)

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Organization publish Monopoly Tea Farms, which says that a monopoly by tea companies with close ties to the regime is causing a serious economic crisis in some areas of Northern Shan State. Regime authorities in Rangoons North Okkalapa Township block the NLDs efforts to expand a branch of its sponsored school Mothers Home. Workers at the Korean-owned Cap 1 Hat Factory in Pegu Township, Pegu Division, conclude successful negotiations with factory management after going on strike on 6 June. Italian-Thai Group President Premchai Karnasuta says that 10,000 people will have to relocate to make way for the Tavoy Development Project in Tenasserim Division. Bangladeshi FM Dipu Moni tells US Assistant Secretary of State for Population, Migration, and Refugees Eric Schwartz that Bangladesh will continue bilateral dialogue with Burma regarding the repatriation of Rohingya refugees. SNDP, RNNP, AMRDP, Wunthanu NLD, CNP, PSDP, NDF, Union Democracy Party, Democratic Party (Myanmar), Democracy and Peace Party, and National Political Alliances League form an electoral alliance ahead of the parliamentary by-elections. A bomb explodes at the Myoma market in Naypyidaws Zabuthiri Township. No casualties are reported. In a video message to the International Labor Conference, Daw Aung San Suu Kyi calls on ILO to expand its activities in Burma and help usher in an era of broad-based social justice in the country. People Democracy Party applies to the regimes Election Commission for the formation of a political party. South Koreas Daewoo International releases a financial report saying that the company plans to embark on its Burma gas project in May 2013. Rangoon Division authorities order 19 Kachin students studying in Thanlyin Township to return to their hometowns in Kachin State by 15 June. Activists in Rangoon distribute over 1,000 leaflets that urge the regime to immediately release all political prisoners and mail 2,000 letters to urge people in the city to hold prayer vigils for the release of political prisoners. About 130 people, including NLD members, attend the opening ceremony of a new branch of the NLDsponsored Mothers Home school in Htantabin Township, Rangoon Division. Daw Aung San Suu Kyi meets with South Africas Ambassador to Thailand Douglas Gibson at her home in Rangoon. City of Newcastle, UK, awards Daw Aung San Suu Kyi the Freedom of the City of Newcastle award. Yangon City Development Committee announces that street vendors relocated following a crackdown launched on 1 June will only be permitted to operate in the market in the township where they reside. Activists in 13 townships in Arakan State conduct a prayer vigil for the release of political prisoners. NLD issues a statement that urges the regime to seek a peaceful political solution to conflict in Kachin State. Chinese People's Political Consultative Conference National Committee Vice Chairman Li Jinhua meets a USDP delegation led by USDP Mp Soe Naing in Beijing Regime immigration authorities at Rangoon International airport deport Malaysian actress Michelle Yeoh. Regimes FM Wunna Maung Lwin meets Russian Deputy FM Alexey Borodavkin in Naypyidaw. Peoples Assembly Speaker Shwe Mann says that the Parliament will reconvene depending on acceptable reasons. US State Department spokesperson Victoria Nuland calls for an end to fighting between the Tatmadaw and KIA. Three bomb explosions rock Naypyidaw, Mandalay, and Maymyo. Two people are injured in the Mandalay blast. Peoples Assembly Speaker Shwe Mann leads a parliamentary delegation on a visit to Russia. A landmine explosion in Kawkareik Township, Karen State, kills a local villager. Daw Aung San Suu Kyi says she wants more young members to take leadership roles in the NLD during a meeting with about 80 NLD youth at the party headquarters in Rangoon. National Assembly Speaker Khin Aung Myint meets with East Timor FM Zacarias Da Costa. Sagaing Division Chief Minister reshuffles nine ministers. Kachin State Chief Minister reshuffles nine ministers. Daw Aung San Suu Kyi meets Japanese Parliamentary Deputy FM Makiko Kikuta at her home in Rangoon. US Special Envoy to Burma nominee Derek Mitchell says the US is prepared to have a positive relationship with Burma and seek better international coordination in encouraging democratic reform. US urges Burma to ensure that Daw Aung San Suu Kyi is free to take part in Burmas political affairs. A bomb explodes in Taungoo, Pegu Division. No casualties are reported. A bomb explodes near a local administrative office in Thanbyuzayat, Mon State, No casualties are reported.

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Kachin Independence Organization and Kachin State MPs meet to discuss potential ceasefire agreement. A court in Rangoons Kamayut Township finds former Myanmar Times editor-in-chief Ross Dunkley guilty of violating immigration laws and assaulting a woman. The court orders Dunkleys release because of the time he had already served.

REPORTS ON BURMA RELEASED IN JUNE

Global Trends 2010, United Nations High Commissioner for Refugees (UNHCR) http://www.unhcr.org/4dfa11499.html Trafficking in Persons Report 2011, US Department of State http://www.state.gov/g/tip/rls/tiprpt/2011/164231.htm Conflict or Peace? Ethnic Unrest Intensifies in Burma, Transnational Institute (TNI) - Burma Centrum Nederland (BCN) http://www.tni.org/sites/www.tni.org/files/download/bpb7_0.pdf Ethnic Areas Update: Burma Heads Toward Civil War, Altsean-Burma http://www.altsean.org/Reports/Ethnic2011.php Report of the Committee on the Application of Standards - Special sitting to examine developments concerning the question of the observance by the Government of Myanmar of the Forced Labour Convention, 1930 (No. 29), International Labor Conference http://www.ilo.org/wcmsp5/groups/public/@ed_norm/@relconf/documents/meetingdocument/wcms_157710.pdf Report of the Committee on the Application of Standards - Observations and information concerning particular countries, International Labor Conference http://www.ilo.org/wcmsp5/groups/public/@ed_norm/@relconf/documents/meetingdocument/wcms_157818.pdf Forced to flee but not silenced Exile media fight on, Reporters sans Frontires (RSF) http://en.rsf.org/IMG/pdf/rwb_-_world_refugee_day_2011.pdf Monitoring of the post e-day media coverage of Burmese political actors (3rd Report), MEMO98 http://www.memo98.sk/en/data/_media/report3_burma_200611.pdf Monitoring of Burmese media coverage in 2011 (4th Report), MEMO98 http://www.memo98.sk/en/data/_media/burma_report4_april-june_250611.pdf World Drug Report 2011, United Nations Office on Drugs and Crime (UNODC) http://www.unodc.org/documents/data-and analysis/WDR2011/World_Drug_Report_2011_ebook.pdf Failed State Index 2011, Foreign Policy (FP) and The Fund for Peace http://www.foreignpolicy.com/articles/2011/06/17/2011_failed_states_index_interactive_map_and_rankings Country Report: Burma (Myanmar) June 2011, Economist Intelligence Unit (EIU) http://store.eiu.com/product/50000205MM.html?ref=featuredProductHome

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