Newsgroups: bit.listserv.seasia-l
Date:         Sun, 27 Sep 1992 00:52:06 PDT
From:         "(Coban Tun)" <tun@QUARK.SFSU.EDU>
Subject:      Burma: Deforestation in Ethnic Mon Areas

From B.U.R.M.A, Bangkok Base, burmese interest group. July Issue

              Deforestation in Ethnic Mon Areas

Background on Thai Logging Companies

One of Burma's ethnic groups, the Mon, have been facing, the fear of
serious deforestation in their area due not only to extended logging
extraction periods but also expanded logging areas in contracts signed
between some of thailand;s logging companies and SLORC. Five thai
companies which have become quite notorious in Mon areas are Tanakit Timber
Ltd. Mae Sod Forestry Co. Ltd. Ranong Victoria Point, Chom Sin Co and
Pathunthani. Some of the shares in these companies are apparently also
owned high ranking Thai military officials.

The ethnic Mon area upset about the raping of their forestry by Thai
companies who signed contracts with SLORC since ear1989. the contracts are
basically for two years extraction and should have ended by the end of 1991.
Each of the companies have to deposit US$50,000 for the contracts and the
security deposit is put under the favor of the forestry department of Burma.

However, due to tremendous profits, contracts for one to two years
extensions have been reached between the Thai companies and SLORC.

Rate of Extraction -

The Mae Sod Forestry Co. not only signed a new expanded concession which
covers and estimated 23,000 acres on November 13, 1991 for a term of one
year extraction but was also granted an extension of one more year in their
old concession area. mae Sod Forestry hopes to extract 20,000 Hoppus tons
from both concession areas.

All the rest of the companies, except Chom Sin Co. have inked contracts
covering two more years extraction which the SLORC. Pathunthani is the most
skillful and experienced in the business and has extracted 20,000 Hoppus
tons up to now but Chom Sin co. has last about thai Baht 600,000 in the
extraction work and has suspended operations due to to their lack of skill
and experience in the business. Since 1989, the five Thai companies have
already extracted at least 270,000 Hoppus tones from the ethnic Mon area.

Following the old two-year extraction contracts in 1989, all the thai
companies expected to extract about 15,000 Hoppus tons but in reality each
of the companies could extract at least 18,000 tons per year. the net
extraction period is only in the dry season from October to may and the
rest of the period is monsoon season during which the extraction is
temporarily suspended because of the heavy rains and the extreme difficulty
for transportation in the jungle.

SLORC's sale system

According to the old sale contract, SLORC divided teak wood quality into grade
No. 1 and No. 2. The rest of the woods are group A (hardwood) , and group B
and C and D (softer woods). The sale prices ranged from the grade No.1 teak
at US $1,400 /ton to US $2,100/ton and US $140/ton to US $210/ton for grade
No. 2. For other wood, price ranges from group A at about US $100/ton,
group B at US $45/ton, group C at US $39/ton and group D at US $34/ton.
Under the recent new sales contracts, SLORC raised the prices by 30%
for all grades of logs extracted by the Thai companies.
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