211103

JPRS-SEA-87-075

1 JUNE 1987

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JPRS-SEA-87-075

1 JUNE 1987

EAST ASIA

SOUTHEAST ASIA

CONTENTS

INDONESIA

NU Leaders Welcome PDI Members Joining NU

(MERDEKA, 23 Feb 87) •'•

1

NU Chief Calls for NU-GOLKAR Cooperation

(KOMPAS, 30 Mar 87) 3

Reportage on PDI Youth Union, Elections

(PELITA, 25, 26 Feb 87) 5

'Independence' in Elections Declared 5

Instruction Disputed 6

Merger of Youth Organizations Proposed

(SUARA RARYA, 24 Feb 87) 8

Catholic Student Association Denies Tie to PDI

(PELITA, 28 Mar 87) 10

Minister Speaks Out on Need for Superior Rice Seed

(MERDEKA, 23 Mar 87) ... •

n

Investment Credit System To Be Simplified

(SUARA KARYA, 26 Feb 87) •

13

- a
LAOS

Volunteers Join Legal Aid Society

(KOMPAS, 28 Mar 87) 15

Briefs

Ratio of Tax to GNP 16

Larger Profits Reported 16

Thai Weekly Views Insecurity, Paramilitary Mobilization

(KHAO PHISET, 25-31 Mar 87) 17

Background to Lao-Thai Talks, Problems, Personalities

(KHAO PHISET, 1-7 Apr 87) 19

Thai Visitors See Deterioration, Regime Unpopularity, Exchange Rates

(SIAM RAT SAPDA WICHAN, 5-11 Apr 87) 24

MALAYSIA

Paper Comments on UMNO Election

(Editorial; SIN CHEW JIT POH MALAYSIA, 26 Mar 87) 26

Improvement of Economic Situation Viewed

(Editorial; SIN CHEW JIT POH MALAYSIA, 28 Mar 87) 28

Briefs

GERAKAN Party Convention 30

Trade Delegation to PRC 30

THAILAND

Columnist Sees Possible U.S. Shift on Policy

(Suthichai Yoon; THE NATION, 27 Apr 87) 31

Yen Loan Borrowing Target From Japan Set

(THE NATION, 13 Apr 87) 33

Weekly Sees Hmong as Anti-LPDR Insurgents, Not Refugees

(Editorial; KHAO PHISET, 25-31 Mar 87) 34

Columnist Wants Conciliatory Stance Toward Laos

(Trairat Sunthonpraphat; DAILY NEWS, 4 Apr 87) 36

PRK Border Losses, Dam Construction

(KHAO PHISET, 25-31 Mar 87) 38

Trade With Australia Expected To Increase

(Artcha Boongrapu; BANGKOK POST, 22 Apr 87) 41

- b -
Commerce Officials Satisfied With EG Garment Accord

(THE NATION, 14 Apr 87) 42

Increase in Foreign Reserves Reported

(THE NATION, 24 Apr 87) 44

Officers Comment on Plans for Electronic Warfare

(KHAO PHISET, 18-24 Feb 87) 45

RTAF Assistant Chief of Staff for Operations Profiled

(Nanthana; DAILY NEWS, 23 Mar 87) 47

RTAF Short of Cash To Replace Crashed Jets

(THE NATION, 18 Apr 87) 49

Details of CPT Arrests, Who's Who

(Sompong Kittinaradom; THE NATION, 26 Apr 87) 50

Monk Supports Coup Leader Manun, Gives Political Overview

(Phra Udonkhanaphithak Kittiwutto Interview; KHAO PHISET,

18-24 Feb 87) • • 54

Publisher Views Desirability of End to Prem Tenure

(Rattana Yawapraphat; LAK THAI, 9 Apr 87) 61

Chavalit on Fertilizer Project

(Pattnapong Chantranontwong, Chatrudee Kittisuksatit;

BANGKOK POST, 18 Apr 87) 63

Paper Profiles Controversial Buddhist Monk Businessman

(THE NATION, 19 Apr 87). 64

Weekly Views Patents, Forsees Problems

(Editorial; KHAO PHISET, 25-31 Mar 87) 66

VIETNAM

POLITICAL

Voters Complain About Election Procedures

(Ben Nghe; SAIGON GIAI PHONG, 21 Mar 87) 68

Need for Regular Public Criticism in Press Discussed

(Huong Duong; NHAN DAN, 3 Apr 87) 69

Illegal Practices of Management Units Disclosed

(Le Huyen Thong; NHAN DAN, 3 Apr 87) 71

Needs of Youths Discussed

(Pham Thi Hong; NHAN DAN, 26 Mar 87) 74
Thai Binh Province Implements Party Resolution

(Hanoi Domestic Service, 10 May 87) 76

Local Women's Congresses Held in Provinces, Cities

(Hanoi Domestic Service, 13 May 87) 77

Briefs

Key Cadres in Lam Dong Study Party Resolution 78

Provincial Women's Congresses Conclude Nationwide 78

ECONOMIC

Reasons for Distribution of Poor-Quality Insecticide Examined

(Hoang Van Quyet; NHAN DAN, 25 Mar 87).... 80

District, Cooperatives Criticized for Reselling Fertilizer for Profit

(Nam An; NHAN DAN, 1 Apr 87) 82

Implementation of Uniform Price for Grain Announced

(SAIGON GIAI PHONG, 15 Mar 87) 84

New Management Mechanism Calls for Equalizing Price of Rice

(Editorial; SAIGON GIAI PHONG, 15 Mar 87).. 86

Directive Issued To Regulate Disparity in Price of Rice

(SAIGON GIAI PHONG, 21 Mar 87) 88

Harvest of Winter-Spring Rice Reported Nationwide

(Hanoi Domestic Service, 11 May 87) 90

Precinct Agency Encourages Foreign Remittances

(SAIGON GIAI PHONG, 24 Mar 87) 92

Tax Collection Stations on Roads Eliminated

(SAIGON GIAI PHONG, 25 Mar 87) 93

Incorrect Economic Viewpoints Criticized

(SAIGON GIAI PHONG, 27 Mar 87) 94

Ways To Increase Production of Corn Silk Carpets Discussed

(Anh Long; NHAN DAN, 25 Mar 87) 96

Activities of City Economic Arbitration Units Discussed

(NHAN DAN, 2 Apr 87) 99

Dae Lac Abolishes Checkpoints, Prices Drop

(NHAN DAN, 3 Apr 87) 101

Reasons for Decline of Carpet Weaving in Hanoi Discussed

(Hoang Quan; NHAN DAN, 3 Apr 87) 102

d -
Phu Khanh Implements Economic Programs, Resolution

(Vo Hoa; Hanoi Domestic Service, 12 May 87) 105

Nguyen Thanh Binh Urges More Market Gardening

(Hanoi Domestic Service, 13 May 87) 1°7

Briefs

Hanoi Roundup of CSSR Economic Group's Activities 108

SRV-USSR Economic Symposium Held at Hanoi College 108

SOCIAL

Laws Governing Marriages, Families Published

(NHAN DAN, 9 Jan 87) •

109

/12223

- e -
INDONESIA

NU LEADERS WELCOME PDI MEMBERS JOINING NU

Jakarta MERDEKA in Indonesian 23 Feb 87 p 2

[Text] Surabaya, 22 February—The Executive Committee of the Nakdlatul Ulama

will welcome with joy and even with open arms Muslim members of the Indonesian

Democracy Party (PDI) who wish to become members of the NU, in accordance with

the recommendation of the general chairman of the Central Executive Council of

the PDI and the chairman of its East Java Provincial Council.

This was stated by K.H.R. As'ad Syamsul Arifin, general adviser of the Executive

Committee of the NU, through Zahrowi Musa, his private secretary, and

K.H. Achmad Sidik, general chairman of the Advisory Council of the Executive

Committee. They were recently contacted separately at their boarding schools

in Asembagus, Situbondo Regency, and Jember, in East Java.

Zahrowi said quoting Kyai As'ad Samsul Arifin, director of the Salafiyah

SayafiyahBoardingSchoolinSukorejo, Asembagus District, Situbondo Regency:

"Anyone may enter and become a member of the NU, provided they are Muslims and

accept the constitution and bylaws of the NU, as well as meet the requirements.

Quoting the statements of leaders of PDI branches in various areas of East Java,

following the issuance of advice to this effect by PDI leaders, at present an

increasing number of Muslim PDI members are joining the NU. Furthermore there

has been an increasing number of NU members who wish to become members of the

PDI, since they were given permission to channel their political aspirations

through that party.

According to a member of the Executive Committee of the PDI and a member of the

Executive Committee of the NU in Nganjuk Regency, there is an increasing number

of Muslim members of the PDI entering the NU and NU members, in their private

capacities, entering the PDI. However, their entry into the respective parties

has been arranged secretly and on an individual basis and not en masse ceremony.

Not Something New

Zahrowi said that, according to Kyai As'ad, the NU, as a religious organization, will give priority to the development of the Islamic religion
and faith, in accordance with the teachings of the Sunnah [traditions of the

Prophet Muhammad], which are followed by most of the Indonesian Islamic

community. According to Zahrowi, the increasing number of people who wish to

enter the NU will place an additional burden on the organization to develop

its members. However, all of that is work in God's service and does not

mean that longtime members need not be cultivated. Rather, all of them should

be cultivated as a whole.

He also admitted that relations between the PNI [Indonesian Nationalist Party]

and the NU, when the NU was a social organization, were very close. Indeed,

during the 1950's many NU leaders were also PNI leaders.

1

J

He said: "Therefore, when this happens again, it is not something new but an

old process which is being repeated. For after the NU became a political party

there were many people who chose to remain members of the PNI or joined the

NU."

According to Achmad Sidik, when a person wishes to enter the NU, he must first

know the constitution and bylaws of the NU, as well as its procedures and

administrative practices.

Achmad Sidik said: "The NU is presently accepting anyone who wishes to enter,

because it has opened itself up. However, it is limited to Muslims, whether

from the PDI, GOLKAR, or even the PPP. Indeed, even H.J. Naro himself could

enter the NU."

He urged that when Muslim members of the PDI wish to enter the NU, they should

do this on an individual and not on a mass basis, because the entry of new

members on a mass basis will leave an unfortunate impression.

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INDONESIA

NU CHIEF CALLS FOR NU-GOLKAR COOPERATION

Jakarta KOMPAS in Indonesian 30 Mar 87 PP 1, 12

[Text] NU [Muslim Scholars Organization] members should cooperate with and

complement GOLKAR [Functional Groups Organization], in order to unify the

viewpoints, opinions and essential concepts of the national struggle for the

ideal of a just and prosperous society based on PANCASILA [Five Principles of

the Nation] and on the 1945 Constitution. Cooperation has a special meaning

for the NU, a large socioreligious organization, and for GOLKAR, a large

sociopolitical organization, in their attempts to get acquainted with each

other.

This was the statement made by Abdurrahman Wahid, the general chairman of the

NU's PB [Executive Committee], in his speech at the ceremonies marking the

ascension to heaven of the Prophet Mohammad SAW [may the Lord bless him and

give him peace]. The ceremonies were organized last Saturday [28 March] by the

East Java GOLKAR'S DPP [Central Executive Committee] at the Pancasila Stadium

in Surabaya. Attending were about 8,000 people, most of them NU members from

East Java, important figures from GOLKAR and from the NU»s central and

provincial offices.

A Holy Task

Abdurrahman said that his hope is that this would be considered for a formal

reconciliation between the NU and GOLKAR, which have been scowling at each

other for 15 years. He also asked all NU members to persuade members of

GOLKAR to follow the joint holy task blessed by God, i.e. to make humanity

prosper.

Abdurrahman hoped that, for their part, members of GOLKAR would persuade NU

members to maintain a unified Indonesia as the national framework, based on

PANCASILA and the 1945 Constitution, as well as persuade them of the best way

to run the country. "The NU should not be treated nicely only when its

friendship is needed," he said, to thunderous applause from the audience. He

admitted that NU members come from religious schools and do not understand the

ins and outs of governing.

As a socioreligious organization, he continued, NU members are free to channel

their political aspirations through the PPP [United Development Party],

through the PDI [Indonesian Democracy Party] or through GOLKAR. However, NU
members were asked to reexamine the decisions of the 27th NU congress held in

Situbondo before deciding on how to cast their votes. "NU members should not

vote for any sociopolitical force for the wrong reasons. In addition,

religion should not be directly tied to politics because religion is an

aspiring force, a spiritual force which organizes political life in such a way

that it is clean and responsible to the afterlife," he said.

According to Abdurrahman, an important NU figure, when religion revolves

directly around politics, politics will not be mature and religion will lose

out because it will be turned into a means of legitimizing existing political

aspirations. NU members should exalt religion and not jump directly into

politics.

He stated firmly that the NU, as an organization, should restrain itself and

not restrict its members in channeling their political aspirations in the

best direction. Let NU members choose what they want for themselves, he said.

If the NU imposes restrictions, some will lose out. Formerly, all NU members

were "over there" and now they now longer are.

However, Abdurrahman said, some people are too impatient for restraint and

take a shortcut, saying that the NU is still tied to such-and-such a party

because it is an Islamic or religious party. "I don't want to interfere in

the internal affairs of the PPP, of GOLKAR or of the PDI. But I am afraid that

NU members may have misunderstood the decision made by the party congress,"

he said.

Meanwhile, 40,000 NU members from central Sulawesi said of their own free will

that they are supporting GOLKAR in the general election of 23 April.

According to H. Rajuleinu Lahamado, chairman of central Sulawesi's NU, a copy

of their statement had been sent this week to President Soeharto, to the

minister of home affairs, to central Sulawesi's MUSPIDA [Provincial Executive

Council] and to all NU directors in that province.

In the three previous elections—1972, 1977 and 1982—central Sulawesi's NU

has given the PPP between 18,000 and 30,000 votes, making it second only to

the Southeast central Islamic Union.

Referring to the political statement made by NU members in his province,

Rajuleini Lahamado said that it is a follow-up to Abdurrahman's statement,

giving NU members full freedom of political choice and aspirations in the

upcoming election. "Here in central Sulawesi we are all channeling our

political aspirations through GOLKAR," said Lahamado, who has been put up by

the PPP in the 1987 general election as candidate number 13 for the DPRD I

[Provincial Parliament].

Contacted by K0MPAS on that day, Drs Aziz Larekeng, chairman of GOLKAR'S

central Sulawesi DPD [Provincial Executive Board], said that he welcomed the

decision of NU members to support GOLKAR in the upcoming election.

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INDONESIA

REPORTAGE ON PDI YOUTH UNION, ELECTIONS

'Independence' in Elections Declared

Jakarta PELITA in Indonesian 25 Feb 87 pp 1, 9

[Text] Jakarta, PELITA—Indonesian Democratic Youth has stated that it will

take an independent attitude in the elections and has instructed all of its

members to use their right to vote in the elections in an independent way.

An instruction to this effect has been issued by the Central Executive Council

of Indonesian Democratic Youth and signed by Eddy Sukirman and Abdulgani,

chairman and secretary general of the organization, respectively. It states:

"In the forthcoming general elections members of Indonesian Democratic Youth

are fully free to exercise their electoral rights."

The instruction from the Central Executive Council of Indonesian Democratic

Youth, which was sent to provincial and branch executive councils of the

organization throughout Indonesia, mentioned several reasons why the organization, which until now has been known to be very close to one of the political

parties contesting the general elections, will not require its members to vote

for this party. According to the instruction, the organization, as intended

in its constitution and bylaws and in accordance with Law No 8 of 1985, is

independent and is not subordinate to any political party.

Maintaining Its Independence

The instruction stated: "To maintain the independence of the organization,

all members of the provincial and branch executive councils throughout the

country are asked to provide advise and guidance to all members. Activists

and members of the Democratic Youth will not be permitted to identify

themselves with the organization in any activity in connection with the 1987

general elections campaign."

The instruction firmly stated those who are candidates for Parliament or for

provincial or regency representative councils or who are active in the

campaign should only make use of their position as participants in the 1987

general elections. For example, PDI (Indonesian Democratic Party] candidates,

activists, or campaign workers will only identify themselves with PDI. The

same is also true of other political parties taking part in the election.

This was contained in the instruction dated 21 February 1987.
It was also stated in the instruction that members of the Democratic Youth

who serve as party workers for a social or political group taking part in

the 1987 general elections, such as the PDI, and who have been nominated

for election to Parliament or provincial or regency representative councils

will be given moral support by the Central Executive Council of Indonesian

Democratic Youth. The instruction stated: "Therefore, those who are

subsequently elected as members of these representative bodies will truly

be representatives of the people who have quality, dedication, and are fully

loyal to the Indonesian nation and state, based on the Pancasila and the

Constitution of 1945."

It was also stated in the instruction sent to all provincial and branch

executive councils of Indonesian Democratic Youth that in the course of the

elections on 23 April 1987 leaders of the youth group are asked to prepare

members of the organization to serve on a volunteer basis as poll watchers in

every polling place. Furthermore, they must help every activist and

responsible official to ensure the smooth administration of the 1987 general

elections. The instruction stated: "May the forthcoming general elections

truly be held in a direct, general, free, secret, honest, and just way, as

provided for in the law containing the regulations on carrying out the 1987

general elections."

Instruction Disputed

Jakarta PELITA in Indonesian 26 Feb 87 pp 1, 12

[Excerpts] Jakarta, PELITA--Members of Indonesian Democratic Youth have been

asked not to be influenced by a personal statement issued in the name of the

Central Executive Council of the youth organization. This was particularly

directed at matters involving the question of instructions, in connection with

the' attitude which should be adopted toward the 1987 general elections,

especially regarding the manner in which members of the group channel their

political aspirations.

This is a summary of the statement issued by Wilmar Siregar and Bambang

Supeno, who are both chairmen of the Central Executive Council of Indonesian

Democratic Youth. They were separately interviewed by a PELITA representative

on 25 February. Both Wilmar and Bambang, in commenting on the instruction

signed by Eddy Sukirman and Abdulgani, greatly regretted the action taken by

the latter.

According to Wilmar, the instruction was issued without the agreement of the

Central Executive Council. Wilmar said firmly: "It should have been approved

at a plenary session of the Central Executive Council. However, the

instruction as issued was not considered at a plenary session of the Central

Executive Council or through discussions with the other members of the

council."

In Wilmar's view the action taken by Eddy Sukirman and Abdulgani in issuing

the instruction was improper and careless. He said: "Consequently, it will

hurt the position of our members in the provinces who have been nominated as

candidates by one of the political parties."
Subsequently, Wilmar specifically asked why Eddy Sukirman and Abdulgani

suddenly issued the instruction in the name of the Central Executive Council

of Indonesian Democratic Youth. As a result of the instruction, confusion

has been created among members of Indonesian Democratic Youth. He stated:

"And members of the Central Executive Council have received a number of

questions from members of the organization."

5170/8309

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INDONESIA

MERGER OF YOUTH ORGANIZATIONS PROPOSED

Jakarta SUARA KARYA in Indonesian 24 Feb 87 p 11 <

[Text] Jakarta, SUARA KARYA—It would be a very positive step if youth

organizations would approve the proposal of Minister of State for Youth and

Sports Abdul Gafur to streamline youth organizations, among other things by

merging them.

In a statement to the press at Parliament on 23 February Daryatmo, adviser to

the Functional Development Faction, said that the minister's proposal had no

other purpose than to facilitate development, so that, sooner or later, youth

organizations, including both those already existing as well as those that may

be established in the future, would play a more effective role.

Dr Abdul Gafur, speaking at a KNPI [Indonesian National Youth Committee]

symposium on 21 February, said that it was time for youth organizations

established on the basis of religion, such as Ansor, Muhammadiyah Youth, the

PMII [Indonesian Islamic University Students Movement], and other, similar

groups, to begin considering steps toward streamlining themselves. Abdul

Gafur said: "Isn't it true that groups like Ansor and the PMII come from the

same source? Why don't they just merge?"

According to Daryatmo, the proposal for a merger on the. basis of similarity in

their objectives will be a very positive initiative if it is accepted by all

youth organizations. He said: "Furthermore, if there is a desire to do this

on the part of the youth organizations, the government will not refuse to

approve it."

He said that the government's efforts to develop the youth movement have

certainly been rather difficult, because the number of youth organizations,

and, even more, the number of community organizations have been rather large.

He said: "The government certainly doesn't have enough time to deal with all

of them."

However, the former chairman of the MPR/DPR, who also served as a member of

the special committee to consider the Law on Mass Organizations, said that

youth organizations will not be forced to merge. The law does not demand

this. He said: "Let the organizations develop, as long as they do not violate

the law." '
He admitted that many community organizations, including youth organizations,

considered from the point of view of their "beliefs," will be rather difficult

to join together. If it is difficult for them to merge, then it certainly

will be more difficult to force them to merge. For example, take the NU and

the Muhammadiyah.

Regarding the fact that Law on Mass Organizations is not perfect, Daryatmo

said that the law only set down the foundations for the establishment of

community organizations. It may be that the law will be amended. He said:

"The government might just present the matter to Parliament, and Parliament

would certainly consider it."

In answer to a question Daryatmo said that community organizations can

accommodate themselves to the Law on Mass Organizations, and that will appear

in their constitution and bylaws. •

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&2
INDONESIA

CATHOLIC STUDENT ASSOCIATION DENIES TIE TO PDI

Jakarta PELITA in Indonesian 28 Mar 87 p 12

[Text] The executive board of the PMKRI (Republic of Indonesia Catholic

Student Association) denied that the PMKRI is involved in monitoring the

general election for the PDI [Indonesian Democracy Party]. This statement was

made yesterday in a press release put out by the executive board of the PMKRI.

Signed by Paulus Januar, chairman of the presidium, and by Bernardus Bothada

Iry, secretary, the release responded to a report about the PMKRI which they

thought was completely inaccurate and which appeared in a Jakarta newspaper.

According to that report, Suparlan, chairman of GMNI [Indonesian National

Student Movement] and a supporter of the PDI, stated that individual GMNI

members, together with members of the Indonesian Protestant Students Movement

(GMKI) and members of the PMKRI, support cooperative monitoring of the general

election for the PDI. The report was confirmed by Sukowaluyo, formerly an

important figure in the GMKI and now chairman of the PDI's DPP [Central

Executive Board].

Independent

According to the PMKRI*s Executive Board, the organization is independent, is

not monitoring the general election for any one of the contesting parties

and very much regrets those untrue statements.

The PMKRI's Executive Board denied the newspaper report's statement that the

PMKRI had originally been affiliated with the Catholic Party, which later

joined the PNI [Indonesian Nationalist Party], PARKINDO [Indonesian Christian

Party], MURBA [Common People's Party] and IPKI [League of Indonesian Freedom

Supporters] to form the PDI. The truth, according to the board, is that the

PMKRI has been an independent party since it was founded in 1947 and has not

been affiliated with or tied itself to any political organization. So it is

not true that the PMKRI has in the past been connected with or has been an

affiliate of the Catholic Party.

The news report is to be regretted, continued the Board, because its accuracy

was never checked or confirmed with the PMKRI, because it is inaccurate and

because it has harmed the PKRI's good name.

9846

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10
INDONESIA

MINISTER SPEAKS OUT ON NEED FOR SUPERIOR RICE SEED

Jakarta MERDEKA in Indonesian 23 Mar 87 p 8

[Text] If Indonesia is to maintain self-sufficiency in rice, rice seed that

produces more rice plants is an absolute necessity. To obtain superior rice

seed, processing factories must cooperate with farmers who run nurseries.

Eng. Wardojo, junior minister for raising food production, made this statement

in Serang yesterday at a ceremony officially inaugurating the UKKS

(Cooperative Work Unit) of the Sang Hyang Seri public corporation.

He went on to emphasize that cooperation is an absolute necessity, especially

for seed processing factories which do not have any rice land on which to

produce seeds. He mentioned the Sang Hyang Seri public corporation, which has

seed-producing land only in Sukamandi, West Java, as an example.

Now that the Serang UKKS has been set up, farmers in the Serang area will have

the advantage of being able to obtain seeds faster and of cooperating in

developing seeds for rice and for other food crops.

Wardojo told an audience of farmers and farm groups, "Even though we are now

self-supporting in rice, we must continue to be concerned about plant pests

such as the brown rice-borer, which might upset our self-sufficiency in rice

and ruin our farmers."

In order to preserve self-sufficiency in rice the government has targeted 1987

rice production at 27.3 tons [as published], an increase of 2.4 percent over

last year.

»In order to achieve that increase there must be a technological breakthrough,

so that farm productivity can increase even more," said Wardojo.

He said that efforts are now being made to turn more nonintensification areas

into INMUM (General Intensification) areas, to turn more INMUM areas into

INSUS (Special Intensification) areas and to increase the number of INSUS,

double-INSUS and super-INSUS areas.

Wardojo said that to support the efforts being made by farmers and farm groups

the government is building several new rice seed processing factories and that

11
these factories will support the farmers in getting six critical things

right: variety, quality, amount, time, place and price.

He stated that to make sure that the seeds which are produced do not go to

waste, seed factories, local food crop services and nursery farmers must

carry out accurate studies.

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12
INDONESIA

INVESTMENT CREDIT SYSTEM TO BE SIMPLIFIED

Jakarta SUARA KARYA in Indonesian 26 Feb 87 p 1 :<

[Text] Jakarta, SUARA KARYA—"Bapindo [Indonesian Development Bank] will

simplify the procedure for granting investment loans." This was stated by Dr

Subekti Ismaun, managing director of Bapindo. The simplification of the

system intended to stimulate investment activity by the Indonesian private

business world, involves both the criteria for evaluating credit worthiness

as well as the length of time for the release of funds under the investment

loan which is granted.

Doctor Subekti added: "We admit that, particularly in terms of the length of

time for providing funds under the investment loan, Bapindo still needs

improvement." He was speaking to the press after signing an agreement on

cooperation with the Capital Investment Coordinating Board (BKPM) on 25

February. The agreement on cooperation, which is part of an effort to

increase investment in Indonesia, was signed by Engr Sanyoto Sastrowardoyo,

deputy chairman of the BKPM, and witnessed by B. Sulisto, chairman of the

Capital Investment Section of the Indonesian Chamber of Commerce and Industry,

and banking representatives.

Doctor Subekti was not yet able to provide details on the effort to simplify

the extension of investment loans. Up to the present t.his has been considered

by Sanyoto as one of the basic problems in the failure- to carry out

investments approved by the government. Subekti added: "At present we have

been trying to meet a commitment to release loan funds after 120 days at the

most For medium and long term investment loans, which may be for as long as

15 years and are for 12 years, on the average, this is a rather short time for

releasing the loan funds."

Active

Based on BKPM research, Sanyoto said that a number of investment projects

had become stalled as a result of the failure of the investor to obtain rather

large bank loans. The same thing is true of the delays in implementing

investment projects approved by the BKPM.

Sanvoto proposed that the bank take a more active role, for example by using

professional managers trusted by the bank, so that the implementation of the

investment project will go forward smoothly and the repayment of the loan will

13
be ensured. This is because, in practice, the factor of trust in the

investor is an important element in ensuring facility in the extension of the

loan.

Subekti thinks that existing concepts of banking and investment need to be

improved. In his view the community, and particularly the potential investor,

does not really understand the sources of the financing provided. Indeed, at

times, the investor does not understand which technical office or department

is carrying out the development program. In this connection the source of the

financing and other matters are mutually related to other aspects of the loan.

In answer to a question Sanyoto said: "An investor who has obtained a Firm

Letter of Agreement is not automatically entitled to obtain a bank loan. The

bank has its own criteria." However, both Sanyoto, as well as Subekti, agree

on the need to come closer to adopting one set <of criteria on credit

worthiness for the investor in the future.

5170

CSO: 4213/67

14
INDONESIA

VOLUNTEERS JOIN LEGAL AID SOCIETY

Jakarta KOMPAS in Indonesian 28 Mar 87 P 3

[Text] To make up for a shortage of defense attorneys the Jakarta branch of

the LBH [Legal Aid Society] accepted 21 senior law students last Thursday [2b

March]. Two new general defense attorneys, Furqon W. Anthon, S.H. [Master ot

Laws] and Pipien Uniekowati, S.H., were also hired.

Abdul Hakim G. Nusantara, S.H., LLM, director of the Jakarta LBH, said at the

inauguration ceremony for the newly-hired personnel that the present depressed

economic situation has caused many legal problems. "The LBH, as a self-help

legal society for the masses, is not sitting still," he said.

In order to liberate ordinary people's aspirations, which have often been

suppressed, a high level of idealism and commitment is needed. "So, we need

defense attorneys who can develop a social vision and be organizers of the

masses," he added.

Abdul Hakim said that the increase in the number of lawsuits on behalf of the

masses has forced the Jakarta LBH to recruit volunteer lawyers. By taking on

21 volunteers, it hopes to improve the ratio of lawyers to cases. As an

example, Mas Achmad Santosa, S.H., head of public relations for the Jakarta

LBH, stated that in 1986 there were 1,440 cases, but that only 13 lawyers,

seven general defense attorneys and six assistant attorneys, were available.

"You can imagine how busy we were," he said.

Unpaid

Mas Achmad said that since the end of December, when the LBH began to accept

applications, there have been more than 100 applicants for the position ot

volunteer. "We did not imagine that there would turn out to be so many

interested people; they know that the LBH gives no material compensation, he

said.

Beause there have been many more applicants than needed, the^

LB\hafbe

,en

forced to select among them. The volunteers contract to work for the LBH for

a year. During that time they are given money only for food and

transportation.

9846

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15
INDONESIA

BRIEFS

RATIO OF TAX TO GNP—Even though tax revenues and the number of tax payers in

Indonesia have increased over the last three years, the ratio of tax receipts

to the GNP is only about 8 percent. This figure is lower for Indonesia than

for other developing countries, where the tax-to-GNP ratio has reached 10 and

even 20 percent. Drs Salamun A. T., director general of taxes, made this

statement in an interview with TVRI [Republic of Indonesia Television] last

night. "Compared to previous years this figure of 8 percent represents an

increase. However, in view of the number of people subject to the tax and

Indonesia's tax revenues, we should not be satisfied," he said. According to

Salamun, the reason for the weakness in tax revenues is that many people are

unaware that they are subject to the tax. In addition, he admitted that the

government did not start to campaign for tax awareness until 1983 and 1984.

[Text] [Jakarta SUARA PEMBARUAN in Indonesian 28 Mar 87 p 11] 9846

LARGER PROFITS REPORTED—On the whole fiscal year 1986-1987 profits from state

companies (BUMN) are up from 1985-1986 receipts. This statement was made by

Minister of Finance Radius Prawiro after he had reported to President Soeharto

at Cendana Street [the president's residence] on Saturday [28 March]. Without

giving the exact size of this year's profits, Radius stated, "This is a sign

that in these hard times some BUMN have succeeded in contributing better

profits to the government." This does not mean, however, that all BUMN are in

good shape now. The minister was not willing to go into this further because

a presidential investigatory team, chaired by the minister of economy, finance

and industry, is still closely examining the condition of each BUMN. Radius

was also not willing to give the size of increased BUMN profits because they

had to be reported first to the DPR [Parliament] this coming Monday [30

March]. The minister firmly denied that there were BUMN which had been losing

consistently but which had recently reported profits after turning them into

private companies had been considered. "People can report talk but I work

with the numbers. Since I employ accountants to examine the numbers, what I

say and what the figures say must coincide." [Text] [ Jakarta KOMPAS in

Indonesian 30 Mar 87 p 1] 9846

CSO: 4213/75

16
LAOS

THAI WEEKLY VIEWS INSECURITY, PARAMILITARY MOBILIZATION

Bangkok KHAO PHISET in Thai 25-31 Mar 87 p 55

[Unattributed report: "An Answer for the Lao Constitution"]

[Excerpt] Once again, Lao officials are confronting the resistance forces that

cross back and forth across the Thai border. Clashes were reported in previous

years.

Two Soviet experts and their Lao driver were killed in an ambush by resistance

forces in Xieng Khouang Province near the Thai border in 1984. That same year

Radio Vientiane reported that there had been 22 clashes with

counterrevolutionaries nationwide. In addition, "guerrilla" forces, or village

troops, carried out 1,300 security operations.

No such reports were issued in 1985 or 1986. This was the case even though

reports on the Thai side stated that Laos forces were

ati}\a

^

rr^.<

^

operations to suppress the resistance and that Hmong refugees had been killed

on several occasions.

During these past 2 years, Laos has established guerrilla forces throughout

the country. Last week, the official radio reported that last year, Luang

Prabang Province, which is another province that borders Thailand, "basically

finished establishing guerrilla forces in order to foil the "destructive

stratagems of the enemy." Laos' mouthpiece did not say to whom it was

referring.

But Laos cannot rest on the accomplishments in Luang Prabang Province. Because

at the end of January 1987, the official radio of Laos reported that ^y,

only 40 districts in 17 provinces nationwide are "secure from the destructive

intentions of the enemy." This is tantamount to admitting that national

security is still an important problem in Laos. But this should come as no

surprise if statements made by Mr Kaysone are reviewed.

In a speech given at the 1985 plenum of the Supreme People's Council, the

party general secretary warned those present that "enemies have infiltrated

us and are causing great damage just like termites in a.house." Mr-Kaysone

made similar statements on many other occasions after that. In P«*lcul£, >£

issued such a warning at the Fourth Party Congress held last November. In his

17
political report, Laos' top leader criticized those comrades who are unaware

of the enemy's stratagems.

"In the new conditions of our revolution, we have placed great emphasis on

revolutionary awareness. But there have been times when insufficient attention

has been given to defending against the threats to the revolution. Some cadres

and party members and some of our citizens are not fully aware of the

dangerous tricks and clever stratagems of the enemy, particularly the enemy's

psychological warfare stratagems," said the general secretary.

All of this shows very clearly that Laos is not yet ready to promulgate a

constitution. And nothing definite has been stipulated concerning the future

of the country's first constitution.

11943

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18
LAOS

BACKGROUND TO LAO-THAI TALKS, PROBLEMS, PERSONALITIES

Bangkok KHAO PHISET in Thai 1-7 Apr 87 PP 49-52

[Unattributed report: «Penetrating Analysis: the Three Villages Have Become

an Issue Again; Thai-Lao Relations Have Become Tense Again"]

[Excerpts] "They were a failure. No progress was made." That is the conclusion

of officials on both sides and the members of the mass media who monitored the

second round of negotiations that were held on 25 and 26 March in an attempt

to improve Thai-Lao relations.

The results of this round of talks were very different from the first time

when Mr Arun Phanuphong, an advisor to the prime minister, led a team of

senior officials to meet with Lao officials in Vientiane. This time, the talks

ended on a very sour note and both sides left emptyhanded. This has reminded

?hai officials of what the atmosphere was like in 1984 when Mr Souban

Salitthilat brought a delegation to Bangkok for two rounds of negotiations

here. The talks were a complete failure. The only thing gained by the Lao side

was that it had a chance to use the Thai capital as a stage for attacking the

Thai government. And the Lao deputy minister of foreign affairs has not

changed his behavior, as he made clear last week.

Afterwards, Mr Souban tried to explain that he had acted in accord with the

agreement reached with Mr Arun in Vientiane. That is, he spoke frankly. He

said that he wanted the Thai people to understand the problems in our

bilateral relations. But that did not help improve the situation.

Mr Souban bagan the negotiations by expressing doubts about whether Thailand

is really sincere about improving bilateral relations. ^ raised several

issues that he said showed Thailand's evil intentions. One of the matters that

he mentioned was the arrest of a Thai military officer and a number of Lao

expatriates and the arrest of Lao refugees from the Ban Winai Refugee Center

in Pak Chom District, Loei Province. Mr Souban claimed that he has conclusxve

evidence showing that Thailand and the United States had sent these people to

carry on espionage and commit acts of sabotate in Laos.

The Lao deputy minister of foreign affairs also charged that «terrorists from

the Thai side" were involved in the bombing that took place on 9 March at the

Soviet Cultutal Center in Vientiane. Mr Sarot Chawanawirat, the

19
director-general of the Thai Information Department, said that this charge was

"totally unfounded."

But This Has "Left a Bad Taste"

Actually, these ill feelings toward each other first arose in February when

Lao officials announced that they were postponing their visit to Thailand from

the end of February to last week. As an excuse, they said that Mr Souban had

to attend a meeting of the nonaligned group in Guyana in South America. Laos

did not give any other explanation. For example, during that period, a Soviet

deputy minister of communications was in Vientiane. And at the beginning of

March, when Mr Souban was supposed to visit Thailand, Mr Eduard Shevardnadze

stopped off here on his way to Vientiane. And during this same period, Mr

Oskar Fischer, the East German minister of foreign affairs, paid a visit to

Laos.

All of these visits created much work for Laos. Thailand understood. There was

no need to explain things. Because the Lao government has only two deputy

ministers of foreign affairs, Mr Souban and Mr Soulivong Pasitthidet.

However, just after the Lao side postponed the visit and negotiations, the Lao

ambassador in Bangkok met with Gen Chawalit Yongchaiyut on two occasions and

tried to convince the Thai RTA CINC to visit Vientiane before the trip to

Bangkok by Mr Souban and his delegation.

However, things had begun to turn sour even before that. This began at the

beginning of January when Laos began voicing criticisms and making charges

through the Lao press and radio. Thailand informed the Lao delegation that

that was a violation of the agreement reached in Vientiane. On that occasion,

the Thai delegation had proposed that the two sides stop criticizing each

other and instead dicusss things together through diplomatic channels. Laos

agreed to this proposal.

But this time, Mr Souban told the Thai delegation that this was difficult,

because it is difficult to distinguish between criticisms and the presentation

of the facts or Laos' view.

On 9 January, Thailand and the United States signed an agreement on

establishing a war reserve stockpile for use in times of war. This was

criticized by Laos repeatedly. Laos charged that this war reserve stockpile

poses a threat to Laos and its allies in Indochina.

Things grew even worse when the Lao Ministry of Foreign Affairs issued a

statement on 16 January condemning the association between Thailand and the

united States. Radio Laos broadcast this statement that same day.

Shortly after the flap over the war reserve stockpile, a new issue arose, and

this proved to have a very serious effect on relations between the two

countries. On 13 February, Mr Sombat Chunlamani, the director-general of

Department 3 (Political Department), summoned Mr Waiphot Suwannamoli, the Thai

charge d'affairs, and handed him a protest note. Laos charged that a Thai spy

plane had penetrated 5 km into Lao airspace on 3February in Champassak

20
Province on 7 February [as published]. The Lao official warned the Thai charge

d'affairs: "Thailand should implement strict measures to ensure that this

does not happen again. Otherwise, Laos will take appropriate action."

Was Laos going to shoot down Thai aircraft that violated its airspace?

Fortunately, that did not happen. In particular, that was a period in which

Thai military forces were engaged in a battle against Vietnamese forces. That

was also a period in which Maj Gen Osakan Thammatheva, the chief of the

Political Department of the Lao People's Revolutionary Army and the Lao deputy

minister of defense, was attending an army political department meeting with

his Vietnamese and Cambodian counterparts in Phnom Penh. Only Laos knows if

that had anything to do with relations with Thailand/According to a report

broadcast over the national radio, Maj Gen Osakan and his party left

on 3 February and returned on 10 February.)

The atmosphere grew even worse. On 18 February, that is, just 5 days later,

PASASON, the newspaper of the Lao People's Revolutionary Party, published an

article criticizing reports that had appeared in newspapers in Bangkok. The

reports stated that Laos had fired on a Thai Mekong River Operations [MROUJ

boat and that Vietnamese soldiers in Laos had killed 43 Hmong. The Lao

newspaper article said that these reports were untrue. The article said that

both Thailand and Laos should be on guard against the "evil intentions

of the "right-wing reactionaries among Thai powerholders," who are trying to

block any improvement in bilateral relations.

Laos stopped making criticisms for about a month. But things were still

smoldering. Then on 18 March, Lao Radio broadcast another report denying the

charge that Laos was involved in narcotics trafficking activities. A Thai MROU

official had discussed this in an interview with reporters. The broadcast also

charged that Thailand had sent people into Laos to gather intelligence, commit

act of sabotage, and rob.

On 19 March, which was only 5 days before Mr Souban and his party were to come

to Bangkok, in an interview, Mr Phanthong Phommahasai, the acting spokesman

for the Lao Ministry of Foreign Affairs, blamed the "right-wing reactionaries"

in Thailand for the explosion that occurred on the morning of 9 March during

the visit to Vientiane by the Soivet minister of foreign affairs. Mr Phanthong

referred to the arrest of a Thai and a number of expatriate Lao. He said that

there was "conclusive" evidence. Mr Souban revealed this to the Thai

delegation last week. He then released this information to reporters outside

the negotiating room.

Return to the Problem of the Three Villages

Mr Souban stipulated that solving the problem of the three villages should

form the basis for improving bilateral relations and cooperation. "If we can

solve this problem, other obstacles to improving relations will decline," said

Mr Souban.

The head of the Lao delegation did not make any new proposals. He reiterated

that Thailand must withdraw its military forces from Lao territory. He also

asked Thailand to return the Lao who fled these villages and who have been

21
living in Thailand since 1984. He said that if these conditions are met, Laos

will be willing to form a joint committee in order to determine the facts. All

of this can lead to "conditional cooperation" in the future.

The head of the Thai negotiating team said that he proposed to the Lao

delegation that the local-level joint committees and the national-level joint

subcommittee be revived. Laos said that it would consider this but that

activities could get underway again only after the problem of the three

villages had been solved.

Mr Arun also proposed that Laos find a way to allow private Thai businessmen

to invest in Laos. Laos said that it would consider this. But in the end, the

sticking point was again the problem of the three villages.

It seems that Laos has assessed the situation incorrectly. Mr Souban said that

the time has come to solve the problem of the three villages. The situation

has changed since 1984. He said that this problem can be solved if Thailand

will try just a little harder. This is why Laos tried to persuade Gen Chawalit

to "bypass diplomatic circles" and visit Vientiane. Laos belives that only the

military can resolve the military dispute between the two countries. But as

far as Thailand is concerned, the time is not yet ripe. One of the conditions

set by Thailand is that the two sides must spend time getting to know each

other, increase mutual cooperation, and allow the peoples of the two

countries to visit each other more frequently in order to create a better

atmosphere as a basis for mututal relations. Only then will it be possible to

resolve such critical matters.

What Thailand means is that the time will be right when Air Chief Marshal

Sitthi visits Vientiane. It was expected that that would occur after his visit

to the Soviet Union and certain East European countries in May. But now, his

visit, tentatively scheduled for June, may have to be postponed. And the visit

by the Thai RTA CINC, which was set for April, may have to be postponed, too.

A Spark of Hope

Even though no further meetings have been scheduled, the talks last week

cannot be labeled a "failure." It cannot be said that "no progress was made."

In an interview with reporters on his return to Vientiane on 28 March, Mr

Souban admitted that on the surface, this second round of talks with Thailand

"failed to make progress," because the two sides did not reach any agreement.

But the day before, when he went to pay his respects to Gen Prem Tinsulanon,

the Thai prime minister, the "prime minister said that if (the negotiations

at) this level cannot solve the problems, matters should be taken up by a

higher level in order to solve the problems. I feel that the Thai government

wants to continue the negotiations in order to solve the problems," said Mr

Souban.

"I think that this is good. Because the meetings will continue. Like Laos,

Thailand wants the meetings to continue," reported Radio Laos citing a

statement by Mr Souban during its 29 March morning program.

22
Prior to that, the Lao deputy minister of foreign affairs told reporters in

Bangkok that he had taken the opportunity to invite Mr Arun to lead another

delegation to Vientiane if it is felt that last week's talks did not create

the conditions necessary for a visit by the Thai minister of foreign affairs.

But there is nothing to assure either Laos or Thailand that anything would be

achieved by Air Chief Marshal Sitthi visiting Vientiane, which is becoming the

leading capital of the Indochina group.

However, certain aspects of the negotiations have generated a spark of hope

for Thai-Lao relations. Both sides agreed to use the two joint communiques of

1979 as the basis for trying to improve bilateral relations. Thailand proposed

that the two countries cooperate in promoting tourism between the two

countries. It proposed that some of the islets in the Mekong River be opened

to tourists. Laos said that it would consider this.

Laos proposed that cultural and scholarly exchanges be expanded and that there

be student exchanges. The Thai delegation said that it would submit this

proposal to the government. Laos said that it would look into the matter of

narcotics production in Laos and that it would look for ways to prevent

narcotics from being smuggled into Thailand. It was Thailand that raised this

issue and expressed concern during the talks. Laos denied that it has

supported the cultivation or production of naroctics except for permitting

people to grow such plants for use as a medicine.

All of these things are questions to which both sides are waiting for an

answer. And these are conditions that should enable the two sides to find a

way to continue the negotiations even if this should take several months.

11943

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23
LAOS

THAI VISITORS SEE DETERIORATION, REGIME UNPOPULARITY, EXCHANGE RATES

Bangkok SIAM RAT SAPDA WICHAN in Thai 5-11 Apr 87 pp 26, 27

[Unattributed report: "A Visit to Vientiane"]

[Excerpts] After eating breakfast, we road to the "Tha Set" dook in Nong Khai

Province in order to cross the river to the Lao People's Democratic Republic.

Many people asked us, "Why are you going there?"

They charged us 30 baht apiece to take us across to the other side, to a

foreign country. Even though it takes only 5 minutes to cross over by boat, at

this price, we had to wait a few minutes until the boat was filled with

passengers. If someone wants to leave immediately, they charge 50 baht per

person. Some of the boats that cross the river fly the Thai flag while others

fly the Lao flag. Some say that the boats that leave from the Thai side must

be Thai boats. Those are the ones that fly the Thai flag. The boats coming

from the Lao side must be Lao boats.

Actually, Thai-Lao relations have improved greatly since the beginning of the

year following the visit to Laos by former Minister Arun Phanuphong and his

party. Following that, a Lao drama troupe came and performed in Thailand,

mainly in Bangkok. Because relations between our two countries had improved,

Thai officials reduced the number of items on the list of strategic goods from

273 to only 61. That is, it allowed Thai merchants to sell these goods to

Laos.

Just a few minutes after leaving Thailand, we reached Laos. The boat docked at

the stairs of the Lao dock known as "Tha Dua." Lao officials examined our

passports or border passes at the foot of the stairs. Because this was the

start of the dry season, the water level of the Mekong River was very low. At

first, we did not know whether these officials were soldiers or policemen,

because they were dressed in light-green uniforms. They looked quite young.

They looked at our passports and just nodded. They didn't say anything but

indicated that we could go up the stairs.

When we reached the top, we were met by customs officials. They asked us what

items we had brought with us and how much money we were carrying. They were

dressed casually. Some of them spoke to us in the Thai language without any

accent at all. Following that, our passports were examined again by female

24
officials. The inspection was quite thorough. However, an acquaintance told us

that "these officials are not very efficient, because their duties change

almost every month."

Before we left the Tha Dua checkpoint, we exchanged our baht for kip at a rate

of 400 kip per 100 baht, which is the official rate of exchange. We did this

because we needed to have some kip on us. As for purchasing various items, in

general, people will gladly accept payment in baht. The baht is just as strong

here as it is in Bangkok.

Even though the Lao government has been in power for 11 years now, the

government is still having problems in governing the country. Lao who are

enemies of the government are still stirring up trouble. Terrorist acts are

committed occassionally. But many of these things have been concealed. Most

recently, a bomb was set off during the visit by the Soviet minister of

foreign affairs. This shows that those opposing the government are very

"bold." They are not afraid to operate in the cities and on important

occasions, which is an embarrassment to the government.

In terms of its views and ideals, the present Lao government is definitely

communist. But it is very difficult to determine how well it has succeeded in

turning the Lao people in general into communists. We saw many young Buddhist

monks, and villagers continue to engage in merit-making activities. The only

thing is that many of these monks are studying the Russian language. Perhaps

this is because many books are available in the Russian language. And most of

the foreigners in Vientiane are from the Soviet Union.

In general, the government has not yet made any attempt to oppose religion.

All it has done is reduce its support for religion. Thus, the temples look run

down. But most buildings in Vientiane look dilapidated. The former lords and

wealthy citizens have all fled their homes and others have moved in. These

houses look old and run down. Buildings that look new and that are cared for

well are all embassy buildings or offices of senior diplomats. But even though

the temples are run down, they still look all right. The people still like to

build stupas to hold the bones of their ancestors. They hire skilled

plasterers to build these.

11943

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25
MALAYSIA

PAPER COMMENTS ON UMNO ELECTION

Selangor SIN CHEW JIT POH MALAYSIA in Chinese 26 Mar 87 p 27

[Editorial: "UMNO Election Draws Great Attention"]

[Text] Nominations submitted by the nationwide 120 divisions of the United

Malays National Organization [UMNO] were closed on 22 March. In the matter

of party chairmanship, Prime Minister Datuk Sri Dr Mahathir overawed other

candidates by winning the largest number of nominations, while Minister of

Trade and Industry Tengku Razaleigh, who is most likely to challenge the

party chairman, was nominated by 37 UMNO divisions. Concerning the post of

party deputy chairman, Deputy Prime Minister Ghafar Baba led in the number of

nominations against his challenger Datuk Musa Hitam.

Generally speaking, the nominations of the divisions throughout the country

to a certain degree essentially reflected an election of high-level posts

within the UMNO. However, as the circumstances surrounding the imminent UMNO

election were different from the past, especially the intense competition

for the conveted posts, it is possible that the divisions' nominations had

been influenced by certain delicate factors and that these nominations

may not be able to completely reflect the essense of the UMNO election.

As a matter of fact, judging by the public statements made by leaders of UMNO's

two factions in the past month, particularly their mutual rummaging of old

accounts, people can deduce that the present UMNO election is really the

most intense and sensational.

As a result of the fierce competition for the posts of party chairman and

deputy chairman, some people believe that the situation may ultimately

lead to a split within the party. We do not agree with this view, because

the power struggle in the UMNO leadership level is not something new but

already occurred during the Tunku [Abdul Rahman] period. However, by virtue

of the UMNO's fine tradition, plus the fact that the majority of its

members have democratic thinking, each and every power struggle was appropriately

resolved in the long run and the party's solidarity speedily restored.

Looking at the present situation, the fierceness of the UMNO election is indeedunprecedented and, to a great degree, has shattered the tradition of an

UMNO election. However, ve believe that we should view this problem in

a positive manner, because the shattering of the UMNO election tradition in

itself carries a positive meaning and also coincides with the democratic

political system as pursued by our country.

26
In fact, we had anticipated that a fierce struggle could erupt at the current

UMNO election. A year ago, when Datuk Musa Hitam relinquished his government

post, we pointed out that since he is a man of political ideals, Musa Hitam

can of course continue to realize his own political ideals by struggling

within the realm of democratic politics. This is understandable. Consequently,

an exciting situation may arise in the forthcoming UMNO election, more sensational than the previous time when Musa Hitam and Tengku Razaleigh Hamzah

vied with each other for the post of UMNO deputy chairmanship.

At present, although the election is still 1 month away, high-ranking UMNO

leaders who are in the running are barnstorming all over the country in their

efforts to win votes. This is a normal phenomenon of a political party

election.

Politics tend to undergo a stormy and unstable situation in an unusual

way. As the strength of the two contending factions is gradually becoming

clear-cut, and although the leaders concerned have hinted an absence of

room for compromise, this is by no means signifies that the current situation

within the factious UMNO will remain unchanged prior to the party election m

April As a matter of fact, Deputy Prime Minister Ghafar Baba has not made

known his official stand, and the opinions of UMNO's elder statesmen as well

as certain controversial problems—all continue to make an impact on the two

factional forces. Therefore, a new situation is likely to emerge within this

month. Let us wait and see.

9300/12828

CSO; 4205/16

27
MALAYSIA

IMPROVEMENT OF ECONOMIC SITUATION VIEWED

Selangor SIN CHEW JIT POH MALAYSIA in Chinese 28 Mar 87 p 23

[Editorial: "Vigorously Improve the Economic Situation"]

[Text] In his 1986 annual report published day before yesterday, Central

Bank Governor Datuk Jafer Hussain asserted that this year's economic prospect

is definitely better than last year, and the growth rate for exports is also

more impressive.

Governor Hussain pointed out that our economic condition during the first

9 months last year was very bad, but the price and export volume of our

primary products turned for the better beginning last October, which helped

revive the economy. This was a development unexpected while we were drafting

our national budget.

He also said that from November last year to February this year, there was

an influx of foreign currency amounting to M$4 billion from Hong Kong,

Singapore, Australia and the United States, an indication of confidence of

foreign investors in our country.

As a matter of fact, beginning this year, there has been an increase in price

of our palm oil, petroleum, timber products and rubber. Judging by the present

situation, the prices for these primary products will continue to be good in

the next few months. Consequently, there is definitive basis for forecasting

that this year's economic prospect is better than last year.

The 1986 Annual Report of the Central Bank maintains that the main driving

force for our economic growth this year hinges on the benefits derived from

our exports. Although there has been much improvement in our foreign trade

during the past 20 years, price fluctuations of our primary products in world

markets have continued to exert a crucial effect on the volume and production

of these products, which has indirectly affected our national income and

government revenues. This can be seen from last year's situation, when the

primary products as a whole dropped by 25.2 percent in price, which caused

a reduction of the national income by 7.3 percent, although we increased the

export and production volumes of the commodities.

28
Whether the prices of our primary products can turn for the better is basically

decided by the demand of consumers markets. The annual report predicts

that there will be no marked improvement in the prices of primary products

in the coming 12 to 18 months. This forecast is understandable. However, the

economic situation in Europe and America has greatly improved, and this is

an advantageous factor to foreign sales of our primary products.

Basically, we also agree that our country's economic growth this year depends

largely on our export trade. So our primary task should be concentrated

on strengthening the competitiveness of our products and promoting our

exports.

In recent years, our national leaders have repeatedly stressed manufacturing

industries by way of promoting our exports. It must be pointed out, however,

that growth in the manufacturing industries depends on an active participation

by the people. In recent years, participation by the private sector in this

field of endeavor leaves much to be desired, mainly because they are not

satisfied with the low efficiency of the government authorities in granting

licenses for factory layouts and supply of utilities, as well as with the

restrictions of the Industrial Coordination Law.

In addition, domestic businessmen cannot enjoy the same privileges as foreign

firms in that the latter may hold 100 percent equity capital for producing

commodities which have no local competition. This, to a certain degree,

adversely affects domestic businessmen's interest to invest their money.

The economic condition of our neighboring country, Singapore, is improving

day by day, its economic growth rate reaching 6 percent during the first

quarter this year. This is mainly because the Singapore authorities are

bold enough to tackle any problems as soon as they crop up, without delay.

This method is worth learning.

To improve our national economic situation, we must create a favorable

environment for absorbing foreign investment and encouraging domestic

businessmen to invest more money here. We believe that as long as the

authorities look at this problem squarely and overcome it, our economy will

gradually turn for the better.

9300/12828

CSO: 4205/16

29
MALAYSIA

BRIEFS

GERAKAN PARTY CONVENTION--In reply to a reporter's question, Datuk Lim Keng

Yaik, president of the Malaysian People's Movement [GERAKAN], indicated

today that his party's convention may be postponed from the original

schedule of 9-10 May to 6-7 June due to several reasons. This question

will be resolved by the party's Central Committee after its meeting this coming

Saturday. Datuk Lim listed three considerations from the postponement:

1) more than 20 delegates from Kelantan, who embrace the Islamic religion,

have requested a postponement, because 9 May falls within the Muslim fasting

period this year; 2) on 9 May GERAKAN party adviser Dr Lim Chong Eu will

still be out of the country on business; 3) Prime Minister Dr Mahathir, who

is keen in attending the forthcoming GERAKAn convention after missing its

three previous congresses, will not be free on 9 May due to a prior

commitment. Although Datuk Lim did not set a definite date for the delayed

convention, it is generally assumed that it will take place on the first

Saturday and Sunday after the Idul Fitri festivities, which fall on 6 and 7

June. [Text][Selangor SIN CHEW JIT POH MALAYSIA in Chinese 30 Mar 87 p 1]

/9300/12828

TRADE DELEGATION TO PRC--A 22-member trade delegation, organized by the AllMalaysia Federation of Business Firms, left for China for a 15-day visit

today. In a statement issued prior to its departure, the delegation leader

and concurrently federation chairman, Tengku Mohammad, said that the party

will visit four major cities in China, namely, Beijing, Dalian, Shanghai

and Guangzhou. The purposes for making the trip are fourfold: 1) to promote

direct trade relations between Malaysia and the PRC; 2) to promote the

marketing of Malaysian manufactured and semimanufactured products in China;

3) to establish commercial relations between Malaysian manufacturers and

Chinese trading enterprises; 4) to open up more commercial opportunities.

The statement said that Malaysian commodities to be promoted in China's

market include rubber products, plastics, electrical appliances and parts,

chemical products, communications and mechanical equipment, construction

materials, pepper, cocoa, marine products, tung oil, etc. [Excerpt]

[Selangor SIN CHEW JIT POH MALAYSIA in Chinese 2 Apr 87 p 3]/9300/12828

CSO: 4205/16

30
THAILAND

COLUMNIST SEES POSSIBLE U.S. SHIFT ON POLICY

Bangkok THE NATION in English 27 Apr 87 p 4

[Article by Suthichai Yoon]

T

[Text]

rtHE argument sounds familiar enough:

The Americans would say what they

do with Vietnam is based purely on

humanitarian and non-political grounds

while the Japanese have been insisting that

private companies couldn't really be told

not to do business with Hanoi. ASEAN

members, too, have had their own

soul-searching to do: Singapore has just

denied that it planned to refine oil from

Vietnam.

But the humanitarian and business

contacts by the US Government and

Japanese trading firms appear to have ,

gamed magnitude recently. ASEAN may

have to do some rethink on the issue and

with Mikhail S. Gorbachev throwing his

peace gestures all around in the region, even

Ronald Reagan may have to do.a bit of

bending in Washington's stance toward

. Vietnam — if nothing else but to check the

Soviet inroads into Asia.

No, Washington isn't "shifting" its stand

by appointing Gen John W. Vessey Jr, a

retired army officer and former chairman of

the Joint Chiefs of Staff during 1982-85, as a

special envoy to Vietnam. Neither is Japan

abandoning its years-long policy not to have

any economic dealings with Vietnam when a

major trading firm, Nissho Iwai, signed the

most comprehensive trade package with

Hanoi recently.

But, ASEAN must by now have realized

(hat the stalemate over Kampuchea which

has brought about the soured relations with

Vietnam cannot.but be stained without

some occasional' hiccups from friendly

nations like what we have witnessed lately.

No doubt, both Japan and the US must have

expected a common expression of concern

from ASEAN on both scores. But they also;,

knew that the standard responses Would,

suffice.

What if the real reason behind the

appointment of Gen Vessey as a special

envoy to Vietnam is a global policy seen by

Reagan or his close foreign policy aides as a

move to counter Gorbachev's peace

initiative in Asia and the Pacific and that

ASEAN's concern may be viewed as a

regional bloc's own issue which may^ or may

not necessarily coincide with Washington's

new set of priorities?

On the same token, what can any ASEAN

country say when a Japanese Foreign

Ministry official explained that Nissho Iwai

had entered into the large-scale trade and

aid agreement with Hanoi for iio other

reason except commercial consideration:

Nissho Iwai simply wants to get back some

of the money it had lost to Vietnam

previously and that there is nothing political

about its latest deal? The same response

may be given if the question is raised in the

near future as to why. a few other major

Japanese trading firms are also following

the same path in Vietnam. This time around,

Japan may even cite the strong yen as being

the main reason for Japanese firms to set

their sights offshore.

Domestic issues in the US and Japan are

gaining momentum and foreign policy,

which used to be in the forefront of a

nation's relations with others, may have

been sent to the backburner. Economic

considerations have made their presence

felt in a big way and Thailand had better be

prepared for the future shape of things to

come.

31
It is significant to note that Reagan's

appointment of Gen Vessey as his personal

envoy to Vietnam is no ordinary move. If the

former US chairman of the joint

chiefs-of-staff finally makes his visit to

Hanoi, he will be the most senior US

representative to visit that country since

President Jimmy Carter despatched a

special commission to Hanoi a decade ago.

Vessey's official mission is to show Hanoi

that Washington is serious about the

question of American servicemen missing in

action in Vietnam and that it is a purely

humanitarian move which should not

involve any political linkage. ASEAN has

not expressed any official concern over that

move so far although it is being closely

watched here. And nobody should be

surprised if some informal enquiries have

already been put across.

Bangkok-based diplomats have yet to

come to a consensus on the latest

developments on this front — and they

perhaps will never reach one. But one

interesting suggestion points to Washington's recent decision to permit broadened

contacts with North Korea and the

encouragement by Washington for the

resumption of bilateral talks between South

and North Korea. Earlier this year,

Washington came up with another surprise

when it opened formal ties with the People's

Republic of Mongolia which is a Soviet

satellite in Central Asia — after long years

of firm refusal by the US to recognize that

republic.

Whether Thai leaders and foreign policy

Elanners want to admit it or not, the Soviet

nion's recent diplomatic offensive to put

up a smiling face at the non-communist

Asian countries including Foreign Minister

Eduard'A.* Shevardnadze's recent visit, has

given Washington some rude awakening.

ASEAN leaders may have concluded that

Gorbachev's "Asia Initiative" platform has

so far seen more talks than action but still

gestures are at times as important as

substance in a diplomatic demarche.

Washington may not be running scared,

but it is beginning to run faster trying to

catch up although it isn't quite sure about

the direction. Japan's move may belong to a

different category (with domestic economics

coming into the political picture more often'

than its allies would like to see) but still, the(

crux of the issue remains more or less

similar: ASEAN will have to produce its own

version of a response to the Soviet Union's,

peace initiatives.

It is in this context that the upcoming visit

to Moscow of Thai Foreign Minister ACM

Siddhi Savetsila will be important to the

overall scheme of things — not only to

Moscow but also to Washington, Tokyo and

all major capitals of the world. Where

ASEAN stands at this juncture — on the

global issues and not Kampuchea alone —

will have to be made clear to all concerned.

The Thai government has yet to expound a

clear-cut stand on this matter and so far, we

have seen only a defensive posture — a

cautious and 'What's new?' sort of response

to the Soviet overtures. But if we look

around seriously enough, the indications

should be clear that things are slowly taking

on a new shape and we can no longer afford

: to Judge the new regional as well as the

global environments from the old mind-set.

We don't necessarily have to over-react to

the proposed project by the Japan

Economic Research Centre to research on

Northeast Asia to set up an economic zone

which, according to one version, may

incorporate Japan, China, South and North

. Korea, Taiwan, Hong Kong and Vietnam.

But if some enterprising researchers,

businessmen and intellectuals should begin

' to paint various scenarios of the new

schemes of things to come in the future for

this region, shouldn't we in Thailand start

asking ourselves what we have been doing

with our planning and imaginative

capability in the regional and global

contexts all these years?

/8309

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32
THAILAND

YEN LOAN BORROWING TARGET FROM JAPAN SET

Bangkok THE NATION in English 13 Apr 87 p 17

[Text] T

1HE Finance Ministry has

sought to borrow 110,000

milhon yen under the 13th

Yen Loan from the Japanese

government with 2.5 per cent ;

interest rate per annum. This was :

down from three per cent charged

on previous annual yen loans.

A Japanese team is due to arrive

here next month to discuss the

ministry's request. The loan has

been extended through the Overseas Economic Cooperation Fund.

Well-informed sources said that

the government would ask for four

programme loans accounting for 30

per cent of the total. They are for

promotion of export, tourism,

small-scale and medium-sized industries.

Thailand's borrowing under the

Yen Loan mainly comprised of

project loans. "We should borrow

the funds based on the need for us to

spend, not just what the Japanese

government wants us to do," said

the sources, pointing out that this

would be another step in the

development in the country's

borrowing.

The Japanese team was due to

arrive here this month but there

would be a delay by one month.

The 12th Yen Loan amounted to

72,000 million yen. It has 10 years

of grace period and repayment of 30

years.

The ministry will maintain the

ceiling for foreign borrowing at

US$1,000 million for fiscal 1987,

despite an improvement in the

: balance of trade and payments with

an increase in the country's

international reserves.

The ministry will continue to be

cautious in fiscal management

because it has to ease the debt

sarvicing burden, said the sources.

During fiscal 1987. the ministry

intends to refinance up to US$1,000

million which is equivalentto 10 per

cent of the total debt of US$10

billion.

Under law, the country can

refinance up to 25 per cent of the

total, or US$2,500 million.

So far, it has refinanced US$350

million. "There is no need for the

ministry to reach the refinancing

target because it has to watch the

market. It has to watch the

country's debt to avoid a bunching:

in the future. Refinancing must be

timely to avoid damage," they said.

/8309

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33
THAILAND

WEEKLY SEES HMONG AS ANTI-LPDR INSURGENTS, NOT REFUGEES

Bangkok KHAO PHISET in Thai 25-31 Mar 87 p 6

[Editorial: "Thailand and the United States Hold Differing views on the Case

Involving the Hmong Refugees; 'a Violtion of Espionage Rights or Human

Rights?'"]

[Text] The United States has used the phrase "for human rights reasons" as an

excuse to interfere with Thailand's refugee policy. Around the middle of

March, Mr Robert L. Fanset, the acting director of the U.S. State Department's

Refugee Program, praised the role played by the United States in helping the

refugees. He said that the "help that we have given to refugees throughout the

world is particularly praiseworthy." The reason is that the "United States has

provided more than 25 percent of the annual budget used by the United Nations

to help the more than 10 million refugees worldwide."

These statements by Mr Fanset contain an element of truth with respect to the

humanitarian role played by the United States if we overlook the fact that the

United States has played a major role in creating refugees in several regions

of the world. We agree that the nations of the world should hold to

humanitarian reasons. And at the same time, Thailand should not take any

position that might damage the country's humanitarian character to the point

where allies such as the United States become alarmed.

It seems that there is a great conflict between the "actual situation

regarding the refugee problem" and Thailand's "humanitarianism." It cannot be

denied that the United States has played a major role in Thailand's internal

conflicts. We feel that the United States has overreacted in the case of

Thailand's decision to expel 38 Hmong tribesmen to Laos.

Mr Fanset said that the American ambassador to Thailand has stressed that the

"United States and the Hmong tribesmen have strong ties to each other." This

seems to be a rather special relationship. Because at one time, the United

States used this Lao hill tribe as a tool to kill other Lao and block the

spread of communist influence in Laos. And during the past 10 years, there

have been reports that Hmong tribesmen living along the Thai-Lao border have

been looked after well by the United States. They have been looked after by

the CIA and have carried out several important operations in the name of

the "right-wing Lao movement."

34
In view of these "strong ties," the strong protest made by the spokesman for

the U.S. Department of State, Mr Charles Redman, and the concern expressed by

Mr Willian Brown, the U.S. ambassador to Thailand, to the deputy minister of

foreign affairs about this matter make it seem as if the attitude of the

United States is more one of "interference" than of "humanitarian reasons."

Recently, the director-general of the Lao Department of Intelligence, Ministry

of Foreign Affairs, spoke about "sabotage and espionage" in Laos. He said that

those involved in this are trying to damage relations between our two

countries. At the same time, Mr Somphan Kokilanon, the deputy director-general

of the Information Department, Ministry of Foreign Affairs, discussed the

position of the Hmong tribesmen who were expelled to a safe area in Laos. He

said that these tribesmen were "anti-LPDR insurgents," not "refugees."

It's possible that Thailand violated the human rights of these people as

claimed by Mr Charles Redman. But it should not be forgotten that those

"refugees," about whom the U.S. government has criticized Thailand, fled here

carrying AK-47 rifles.

11943

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35
THAILAND

COLUMNIST WANTS CONCILIATORY STANCE TOWARD LAOS

Bangkok DAILY NEWS in Thai 4 Apr 87 p 2

[Around the World column by Trairat Sunthonpraphat: "A Neighbor"]

[Text] Mr Souban Saritthirat, the Lao deputy minister of foreign affairs, has

returned to Vientiane, leaving behind incomprehension and the feeling that

Laos was not really interested in seeking peace or cooperating on various

fronts. Instead, he insulted Thailand in Bangkok and took a tough line with

Thailand. He acted like some big-shot whose job was to attack Thailand. His

actions violated diplomatic courtesy. But its good that we know how Laos feels

about Thailand. It good that we know to what extent Laos has been brainwashed

by Vietnam and Heng Samrin.

I feel sorry for Laos. Thailand once used a strong policy and forced Laos to

crawl to us. We became overconfident and viewed Laos as a landlocked country

with no access to the sea. Moreover, the economies of both Vietnam and the PRK

were very bad. We did not think that they could give Laos any help. We felt

that if we put great pressure on Laos, Laos would collapse or turn back to us

in order to survive economically. Thus, Thailand looked down on and exerted

great pressure on Laos just after the revolution to seize power from

the pro-Western faction. Because of this, Laos had to rely on Vietnam and Heng

Samrin for support. It needed them as allies, and it gained support from the

Soviet Union. More than 50,000 Vietnamese soldiers were sent to Laos in order

to protect Laos from pro-Thai elements. Reports stated that Thailand backed

certain hill tribes and former Lao power groups in their attempt to topple the

pro-Vietnamese Lao government.

As for the three villages located along the Uttaradit border, this should not

be a problem. Because normally, people rarely go there. But when the dispute

arose, Thailand claimed that this area belonged to Thailand. It sent troops

there even though there is nothing there to defend. As for the Suranari

celebrations, that is Thailand's affair. We have been doing this for a long

time. This is not meant to humiliate Laos. Rather, this is meant to honor Thai

women who dared to fight and sacrifice themsleves when the country was

invaded. The only problem was that the celebrations were held at the time of

the visit by the Lao representative.

36
Laos is in effect threatening Thailand, saying that it is building a road to

Vietnam and that it is negotiating with Heng Samrin about using the Mekong

River as a route to the sea. If that happens, Laos will no longer be dependent

on Thailand economically. That is a good way out for Laos. But Laos stands to

benefit greatly from associating with Thailand. The important thing is that it

won't have to be Vietnam's slave. Thailand and Laos are like brothers. We are

bound together like tongue and lips.

Even if Laos has roads to Vietnam and a river route to the sea through

Cambodia, what can Laos gain from Vietnam and Cambodia in view of the fact

that Vietnam and Cambodia are no better off than Laos? At the same time,

Thailand has done much to hurt Laos. We should do something to correct our

mistakes. There are many people who have bad intentions toward us. If we can

improve relations with Laos, let's do so now.

11943

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37
THAILAND

PRK BORDER LOSSES, DAM CONSTRUCTION

Bangkok KHAO PHISET in Thai 25-31 Mar 87 pp 26-28

[Unattributed report: "The D-9 Operation, 17 Dead at Chong Bok, a Hellish

Battlefield"]

[Excerpts] "When I was digging the bunker, the Vietnamese were only 500 meters

away. I laid my helmet down on the ground and concentrated on digging the

bunker. A moment later, one of the Vietnamese ran up. He did not have a rifle.

He ran up and snatched my helmet. He stole my helmet right in front of me. I

shouted at those with me to fire at him. One of them fired an M-79 round. But

the range was too short. The round failed to explode. The round fell in back

of him and rolled away. When he fell, I ran up and grabbed my helmet. I was

afraid of losing my helmet, because my I would have been fined for losing it.

I grabbed my helmet. But they cheered when they saw that the round that we had

fired failed to explode. But when they fired at us, all of their shells

exploded."

A thahan phran irregular who had been sent to help hold the line at Ban Lat

and Ban Bannae in Ubon Ratchathani Province said this to KHAO PHISET before

the army took reporters on a 2-3 day inspection trip along the front lines in

Ubon Ratchathani Province. This same thahan phran irregular also said that

besides using regular forces to clear the area, thakan phran irregulars from

all the regiments and battalions in the 2d Army Region have been mobilized to

participate in this operation. There has frequently been hand-to-hand

fighting. Sadly, he stated quite clearly that the Thai forces have suffered

more than 100 casualties since being sent to the front in February 1987. There

have been no reports about this.

This patriotic thahan phran irregular said that there have been battles in

which the thahan phran irregular company has been decimated. That is, only 12

of the 80 men have emerged unhurt. So far, three company commanders have been

killed. Two of these were graduates of the Chulachomklao Royal Military

Academy [CRMA], and one was a non-commissioned officer. The Ubon Ratchathani

hospital is overflowing with wounded soldiers. Even though many units of

thahan phran irregulars from the Pak Thong Chai headquarters have been sent to

provide reinforcements, the situation still doesn't look good.

38
Bloody Season at Chong Bok, a Terrible Situation

Even though Thailand has great self-defense capabilities, this dry season has

been such a bloody period that the army has had to reveal the truth about the

danger and about Thai losses. On 21 March 1987, several dozen reporters were

taken to Chong Bok, a hellish battlefield where the smoke of war was

everywhere.

Chong Bok is located at the tri-border area where Thailand, Cambodia, and Laos

converge. The terrain here is one of steep mountains and mountain passes

though which Khmer coalition forces frequently retreat into Thailand. Now

Vietnamese forces are moving through these passes to seize the hills in this

area and engage Thai forces in battle.

Some of the strategic areas that the enemy frequently infiltrates are the

Chong Obok area in Khun Han District, Sisakat Province, the Chong Chom area in

Kap Choeng District, Surin Province, the Chong Mek area in Ubon Ratchathani

Province, and the Chong Bok area in Nam Yun District, Ubon Ratchathani

Province.

As for the present situation at Chong Bok, Vietnamese forces have penetrated

about 2 km into Thailand and are trying to alter the terrain in preparation

for repelling Thai efforts to dislodge them. During the period that reporters

observed things there, Col Thawisak Ruangphong, the deputy chief of staff of

the Suranari Force, confirmed that the "2d Army Region and the Suranari force

will definitely not allow foreign forces to remain inside Thailand. We will

quickly force them out of Thailand."

The D-9 Operation, Thailand Loses 17 Men

Col Thawisak disclosed that three or four Vietnamese battalions of 500-800 men

each from the 733d Regiment, 315th Division, invaded Thailand this time. The

headquarters of these forces is located 1-2 km across the border inside

Cambodia. After penetrating 1 km into Thailand, the Vietnamese forces

separated into companies in an attempt to penetrate 3-4 km into Thailand. It

is estimated that each of these companies has no more than 40-50 men.

This incursion and the seizure of several strategic hills forced Thailand to

launch the D-9 Operation. This got underway around the middle of January 1987.

Thailand launched this operation in order to expel the Vietnamese forces. The

Suranari Force is the main Thai unit. This unit is being supported by elements

from the 22d Thahan Phran Irregular Regiment. The 6th Artillery Regiment is

providing fire support to destroy the enemy positions.

In this operation to dislodge the Vietnamese and recapture the hills, to date,

17 Thai soldiers have been killed and 60-70 have been wounded. These figures

show the seriousness of the situation.

Col Thawisak said that the strategic area around Chong Bok is composed of

hills 396, 382, 408, 500, 469, 495, 497, 375, and other hills. So far,

Thailand has recaptured two of the hills, hills 396 and 382. We are now trying

39
to recapture hills 408 and 500. The Vietnamese forces are pulling back, and

our forces are clearing the area.

Gen Chawalit said that after the area has been cleared of foreign forces, two

dams, the Chanra and Phran Sua dams, will be built in this border area in

accord with the royal program. This will help increase security in this area.

Gen Chawalit feels that these two dams will help provide the people here with

an adequate supply of water and serve as a good defense line.

A news report informed KHAO PHISET that it will take 4-5 years to build these

dams. So far, only surveys have been made. The person who has been put in

charge of this is Gen Phichit Kunlawanit, the assistant RTA CINC. These two

dams will use 50,000 rai of land. The hills will be used to dam up the water

to the tops of the hills. Thus, is will be possible to store a huge amount of

water.

Maj Gen Phaibun Hongsinlak, the deputy commander of the 2d Army Region, talked

with KHAO PHISET about the village development program in this border

battlefield area. He said that according to the development line, the first

group of people to settle here will be thahan phran irregulars or Border

Patrol Police. This is because these people can carry on defensive operations

in conjunction with developing the area.

Conclusion

Vietnam regularly carries on dry-season operations. But the fact that over 100

Thai soldiers have been killed or wounded in this particular operation shows

that Vietnam violated Thailand's sovereignty intentionally. As for Thailand,

there have been many lessons concerning fighting along this border. But

strangely, the casualty figures are still very high. And it is uncertain

whether Thailand will have to suffer more casualties before the fighting in

the Chong Bok area ceases at the end of March.

An observer in the area said that the strategy of developing these stragetic

points may be based on the hope that this area will someday be safe. The

important thing is that before we reach that point, we must do something to

hold the line in the dry season and reduce the number of casualties.

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40
TRADE WITH AUSTRALIA EXPECTED TO INCREASE

Bangkok BANGKOK POST in English 22 Apr 87 p 13

[Article by Artcha Boongrapu]

THAILAND

[Text]

THE value of Thai-Australian trade

1B expected to rise from the present

A$330 million to A$500 million by

the end of next year, according the

visiting New South Wales Minister

for Industry and Small Business and

Energy and Technology Peter Cox.

In an exclusive interview with the

Bangkok Post yesterday, he said that

after the current mission, which he

leads and is the second ofits kind, he

can confidently predict a growing

trade relation between the two countries.

Asked about the main objectives of

this mission, he said they are to

encourage Australian businesses to

see opportunities on trade and joint

ventures in Thailand and Thais to

see trade opportunities in Australia.

"In other words, our purposes are

to familiarise Australian businesses

with the types of opportunities that

exist in Thailand and to urge them to

make contacts. These purposes have

been achieved," Mr Cox noted. "We

have had extensive talks with the

Electricity Generating Authority of

Thailand and extended an open invitation for EGAT officials to visit New

South Wales to inspect our coal

deposits, power transmission projects

and other civil engineering works."

He added that New South Wales

welcomes all trade delegations from

Thailand.

While here, he also met Industry

Minister Pramual Sapavasu, Deputy

Communications Minister Suraphan

Chinawat and Bangkok Governor

Maj-Gen Chamlohg Srimuang.

Mr Cox said Mr Pramual was very

cooperative and promised to encourage Thai-Australian industrial joint

ventures.

The Australian firms which are

very keen to meet potential Thai

partners forjoint ventures are Trans-

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field Pty (transmission lines and civil

engineering works), Boral Cyclone

Ltd (agricultural products) and BHP

Engineering Co (construction).

Mr Cox discussed the State Railway of Thailand's railway project

with Mr Suraphan.

"Commonwealth Engineering Co

(Comeng), which will also join the

project bidding, has the capacity to

compete with any overseas train

manufacturer. Comeng won most of

the rail project contracts in New

South Wales which recently spent

about A$l,500 million on railways

systems," he said.

During his meeting with Maj-Gen

Chamlong, Mr Cox proposed to

create a city tie between Bangkok

and Sydney. This means an established long-term relationship between the the Bangkok Metropolitan

Administration and the State ofNew

South Wales and its cities. The benefits that both sides will receive are in

terms of friendship, expertise sharing and cultural exchanges, among

others.

Maj-Gen Chamlong agreed in

principle to the proposal.

"I also raised the question of encouraging more Thai students to further their education in Australia. On

my return, I will report to New South

Wales's Premier Barrie Unsworth

and discuss with him ways and

means to provide more facilities for

Thai students," Mr Cox said. '1 also

expect more than 100,000 Australian

tourists to visit Thailand this year. I

see Australia as belonging to this

region. Our ties with the UK will not

be asstrong as with this region."

On Monday, a seminar on "How to

trade with Australia" was held at the

41

Department ofExport Promotion and

attended by 300 people, much more

than anticipated.

Asked whatThai products could be

successful in Australia, Mr Cox said

Australia has relaxed its tariffs on

textiles, garments, and footwear

from Thailand. He added that Australia would like to export fruits to

Thailand, which will not compete

with local fruits as they would arrive

mainly in off-season periods.

He also said he is launching a

"Small Business Train" which is a

mobile business information office

and will stop at every major town

and city in New South Wales to give

information to local people on how to

' set up small businesses.

He noted that Thai government

agencies are welcome to make use of

the space in the train to distribute

leaflets on tourist activities or products available in Thailand.
THAILAND

COMMERCE OFFICIALS SATISFIED WITH EC GARMENT ACCORD

Bangkok THE NATION in English 14 Apr 87 p 25

[Text] COMMERCE Ministry officials are satisfied with the

agreement reached with the

European Community (EC)

in which they accepted the

inclusion of certain types of

garment previously outside

the quota into the general

quota under the new Harmonized System.

Under the agreement the quota of

garment products in Category 4, set

at 500,000 pieces annually in the

previous Harmonized System, will

increase to more than four million

pieces in 1987 with an annual

growth rate of five per cent.

The negotiations on Category 5

will take place next month, Director

General of the Foreign Trade

Department Oranuj Osathananda

told The Nation over the weekend.

The EC has adopted the new

Harmonized System for garment

imports claiming that the change

will help simplify the categorizing

process and modify those where

there have been difficulties in

applying the quota system.

The change takes account of the

guiding principles adopted by the

EC by aiming at a more liberal

textile policy. The agreement

reached in the Category 4 with

Thailand concluded on April 11 in

Brussels was a clear reflection of

this policy, sources said.

Thai officials expressed confidence that EC's policy in liberalizing its textile trade will also be

applied when negotiations on

Category 5 starts next month.

The agreement on Category 4 will

see the inclusion of previous

non-quota garment types in the

quota of Section 82. They are under

garments other than those of

children, knitted or crocheted not

elastic or rubberized or of wool, of

fine animal hair or of regenerated

textile fibres.

Items previously specified in

Section 82 included shirts, T-shirts,

lightweight fine knit roll, polo or

turtle-neck jumpers and pullovers,

undervests and the like, knitted or

crocheted.

Likewise, non-quota items were

added to Section 83. They are outer

garment and clothing accessories

Knitted or crocheted, not elastic or

rubberized. Items already specified

in this section are shirts, T-shirts,

lightweight fine knit roll, polo or

turtle-neck, jumpers and pullovers,

undervests and the like knitted or

crocheted, not elastic or rubberized.

The exact new quota given under

the agreement on Category 4 is

4,017,690 pieces or about 620 tons.

Thailand exported 1,670,773

pieces under the previous Harmonized System under Sections 82 and

83 of Category 4 in 1985 but the

total export volume reached

6,116,446 pieces last year for these

non-quota items defined according

to the new Harmonized System.

Oranuj expressed satisfaction

over the agreement as the negotiations, which began in the middle of

last year, were based on the figures

for the middle of 1985 when the

42
export volume was low.

The so-called "consultation" with

the EC was to adjust the records

and use new sets of figures.

EC, meanwhile, has asked for

postponement of the talks on

Category 5 because the export

volume was much greater than

Category 4. Thailand exported

550,000 pieces under Category 5 to

the EC in 1985 but the volume

reached 2.3 million pieces or four

times more in 1986. They were

non-quota items then.

Oranuj said the Foreign Trade

Department was trying to negotiate

for a reasonable export volume in

the qouta speedily so that exporters

can receive the quota allocation.

Textile and garment exports have

topped the foreign exchange earning for Thailand replacing rice since

1986. Total export value of textile

and garment is expect to be more

than 30,000 million baht this year.

The Business Economics Department has forecast that the total

export value of textile and garment

this year will be 35,590 million baht

of which 23,190 million baht will be

garments and 12,400 million will be

textile products including fibre.

Rice exports this year are

expected to reach 4.3 million tons

worth about 20,000 million baht.

President of the Thai Garment

Manufacturers Association Viroj

Amatakulchai previously expressed

caution over the original quota

target for Category 4 but he was not

available for comment on the

agreement.

Before the new Harmonized

System was introduced, Thailand

exported items equivalent to Category 4 of 10,137,000 pieces in 1986.

The quota set under the new system

was 11,150,000 pieces or an

increase of just 1,013,000 pieces.

Exports of items in Sections 82 and

83, which were not in the quota

before, amounted to 6,116,446

pieces.

Thailand faced disadvantage because the country received an

increase of about one million pieces

under the quota but lost about six

! million pieces, analysts said.

Exports equivalent to Category 5

were 7,711,000 pieces in 1986 but

the new system limited the quota to

just 8,400,000 pieces representing

an increase of about 689,000 pieces.

Again Thailand was not getting the

better part of the deal since exports

of non-quota items which were

placed in Category 5 amounted to

2.3 million pieces last year.

Deputy Director General of the

Foreign Trade Department Pongtien Payakniti said after he

. returned from Brussels yesterday

that the Thai team had done its best

to conclude a deal favourable to the

country because the EC is expected

to impose greater restrictions in the.

future.

His comment ran counter to EC's

insistence that the European

economic block was aiming to

liberalize its textile policy.

Pongtien said that without a

quick conclusion to the negotiations

Thailand could face possible shortage of export quotas.

Thailand earlier asked the EC to

postpone the Harmonized System

for a year because the country was

not prepared to handle the new

system, sources said.

Pongtien said Thai officials have

been sent for training on the

Harmonized System and similar

training would have to be provided

to Thai exporters to familiarize

themselves with the new system.

He said textile and garment

exports to the EC aren't easy but

the government hopes that more

could be exported. The EC has

informed the Thai side that this

country is performing well in its

markets but warned that it should

not aim to become the "best."

The agreement on Category 4

takes effect immediately and

Pongtien said the deal reflected the

understanding EC has towards

Thailand and certain sympathy

that allowed for a quota increase in

cases where the amount set

previously was too small.

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43
THAILAND

INCREASE IN FOREIGN RESERVES REPORTED

Bangkok THE NATION in English 24 Apr 87 p 25

[Text]

DURING the first three months of the year, the

official foreign exchange reserve increased by more

than US$400 million to US$ 4,202.4 million or an

equivalent value of five-month imports, the Bank of

Thailand reported yesterday.

The reserve at the end of March was US$426 million

higher than the outstanding at the end of December

1986 and could be attributed to increased earnings

from exports, tourism and adjustment by commercial

banks to reduce their net holdings of foreign assets to

20 per cent of their capital funds.

'The first quarter foreign trade indicators were

generally favourable. The balance of payments

registered a surplus of about 7,700 million baht and

there was a current account surplus of 1,500 million

baht. Higher earnings from tourism resulted in a

surplus on the service account of 9,000 million baht.

However, there was a balance oftrade deficit of 7,500

million baht which was 130.3 per cent higher than in

the same period last year. This could be attributed to

import growth of 19 per cent compared to a decline of

nine per cent during January-March 1986.

A central bank spokesman said the first quarter's

icrformance was in line with prediction. Exports grew

iy 12.7 per cent to amount to total earnings of 63,200

million bnht. The principal export items did

exceptionally well.

Exports of natural rubbe> rose by 33 per cent,

tapioca by 17 per cent, fresh shrimp by 31 per cent and

textiles and garments by a hefty 42 per cent.

e

Other exports registered an average growth of 20 per

cent. Exports of ornaments rose by 71 per cent, canned

marine products 38 per cent, wood products 37 per

cent, plastic products 50 per cent, shoes 67 per cent,

frozen chicken 31 per cent and frozen fish and squid 42

per cent.

The domestic economic recovery helped to boost

imports which reached 70,700 million bant during the

first three months of this year. Imports of non-oil

products such as raw materials and consumer goods

rose by 25 per cent. Import of oil products declined by

about six per cent.

The current account declined by 58.6 per cent to

1,500 million baht. The balance of payment surplus

declined slightly from 8,905 million baht to 7,651

million baht.

Net capital inflow rose by 1.3 per cent to 4,100

million baht of which 3,000 million baht belonged to

the private sector. Total private sector capital inflow

was 7,531 million baht but offset by the public sector

capital outflow of 3,484 million baht.

Tax Collection

' On the fiscal side, the Finance Ministry announced

,that the Revenue Department's tax collection during

the first six months of the current fiscal year rose by

8.43 per cent to 30,811.66 million baht still 7.94 per

cent below the target.

The collection by the Excise Department rose by

47.72 per cent to 29,591 million baht which is 1.3 per

cent above the target. The figure rose significantly in

March due to whisky royalty payment of 1,577.5

million baht.

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44
THAILAND

OFFICERS COMMENT ON PLANS FOR ELECTRONIC WARFARE

Bangkok KHAO PHISET In Thai 18-24 Feb 87 p 11

[Unattributed report: "An Electronic Weapons Company, a Distant Dream of the

Military"]

[Text] Even though military scholars claim that the most important thing in

waging war is to attack the enemy's strategy, or force the enemy to surrender

without having to fight, and that this is a sign of great skill, it is still

essential to make preparations and have a full complement of weapons.

The Directorate of Joint Communications and the Directorate of Joint

Operations once formulated a plan to "establish an electronic weapons

company." They proposed this about 3 years ago. But this was rejected during

the time that Gen Athit Kamlangek served as supreme commander. But now this

idea has been revived. Supreme Command Headquarters has filed a motion to

increase the 1987 budget by 300 million baht. It claims that it will establish

an electronic weapons company in order to wage electronic warfare and

coordinate things between the services more efficiently.

As for the communications equipment that will be used in waging electronic

warfare and that must be procured first, a lieutenant colonel told KHAO

PHISET:

1. Jamming equipment is a communications tool with a high degree of

technological development. This equipment can jam the frequencies of the enemy

when they try to locate our position. At the same time, this tool can be used

to locate enemy troop positions.

2. Anti-ballistics equipment can be used to block enemy missiles by electronic

means. If we can intercept the enemy's signals, we can determine the position

and speed of the missiles fired. If the enemy fires a guided missile, this

type of tool can be used to alter the course of the missile. England made

efffective use of this type of equipment in the Falklands War. However, to

make effective use of this equipment, it must be operated by specialists who

are well-trained in its use.

3. Short-range vibration detection equipment can be used to detect movement

at short ranges. In waging electronic warfare, the enemy may send drone

45
aircraft over our positions at altitudes too low to be detected by radar and

bomb our positions. This equipment can be used to provide a warning signal.

This will give us a chance to respond by launching an air attack.

However, Lt Gen Thian Chonmaitri, the director of joint communications, told

KHAO PHISET that this program has been "kept in the drawer" for a long time

because of the lack of funds. He does not know if any progress will be made

in the "electronic weapons company" program, because the 300 million baht for

this "has not yet been approved."

A former chief of staff who is now serving as a military advisor said that

this "electronic warfare company" will be a "counter company" that is equipped

with modern technology and that has high electronic capabilities. This

represents another step forward in the development of the weapons used by the

Thai military. "Today, other countries use computers to control combat. Firing

does not require pilots. This is like a computer war game."

"All we need at the present time is equipment to counter and control things.

Our present radio system is very outdated. We lack tubes and other parts. I

don't know what new systems other countries are using," said an operations

official in the Directorate of Joint Communications about the outdated

equipment used by the Thai military. He also said that the chances of

establishing this electronic weapons company at the present time are about

fifty-fifty.

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46
THAILAND

RTAF ASSISTANT CHIEF OF STAFF FOR OPERATIONS PROFILED

Bangkok DAILY NEWS in Thai 23 Mar 87 p 5

[DAILY NEWS Square column by Nanthana: "Air Marshal Anan Klintha, the

assistant RTAF chief of staff for operations"]

[Text] Air Marshal Anan Klintha, the assistant RTAF chief of staff for

operations, was born on 19 June 1933 in Bangkok Metropolitan. His father is

Prachak Klintha, and his mother is Sanguan Klintha. He graduated from upper

secondary school at Triem Udom Suksa in 1952. In 1953, the air force

established the RTAF Academy and accepted 31 cadets as members of Class 1. He

was one of those chosen to attend the academy. After completing his second

year at the academy, he received an RTAF scholarship to attend theair force

academy in England in 1958. In 1959 he took flight training. In 19611 he was

assigned to the 22d Squadron, 2d Wing. He also served as a pilot with the 3d

Flight, 63d Squadron, 6th Wing. Later on, he was assigned to the Operations

Division of the Tactical Air CommandJHe served as an air controller with the

Combined Operations Section, Tactical Air Command, in 1963 and as a flight

instructor at the Flight Training School in 1965. He also served as a jet

pilot. Later on, he served as a jet aircraft flight instructor. Following

that, he served with RTAF headquarters, Wing 6, the Directorate of Education

and Training, the Directorate of Intelligence, the Tactical Air Command, and

the Directorate of Operations. He is now serving at RTAF Headquarters again.

The important positions that he has held include the following: In 1975 he

was the deputy chief of the Planning Section, Operations Division, Tactical

Air Command. In 1976 he was the deputy director of the Policy and Planning

Division, Directorate of Operations. In 1979 he was appointed assistant RTAF

attache in Jakarta. In 1982 was made deputy director of the Directorate of

Operations. In 1983 he served as chief of staff of the Directorate of

Operations Control. Since 1986, he has been the RTAF assistant chief of staff

for operations.

As for rank, in 1960 he was commissioned a pilot officer. In 1961 he was

promoted to flying officer. In 1964 he was promoted to flight lieutenant. He

was promoted to squadron leader, wing commander, group captain, and senior

group captain in 1968, 1973, 1976, and 1979 respectively. In 1983 he was

promoted to air vice marshal, and in 1986 he was promoted to axr marshal.

47
Education: In 1958 he graduated from the air force academy in England. In

1970 he graduated from the Squadron Officers School at Maxwell AFB in Alabama.

In 1971 he graduated from the Air Command and Staff College as a member of

Class 15. In 1977 he graduated from the Armed Forces Staff College as a member

of Class 19. In 1982 he graduated from the Air War College as a member of

Class 17. In 1986 he graduated from the National Defense College as a member

of Class 28.

He is married to Suraphi Klintha. They have three children. Miss Aphichada

Klintha and Miss Aphisara Klintha are students at Triem Udom Suksa. Their son,

Phatraphon Klintha, attends the Phetcharat School.

Special government duties: In 1962 he served as a combat report officer with

Combat Planning Division 507. In 1969 he served with the UN forces in Korea.

In 1972 he served as a liaison officer with the 1st RTAF Liaison Team in

Ratburi. In 1973 he served as a fighter operations officer in the Khmer

Republic. In 1975 he commanded the Nakhon Phanom air base and was awarded the

Isariyaphon medal. In 1985 he was awarded the Prathamaphon Monkut Thai medal.

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48
THAILAND

RTAF SHORT OF CASH TO REPLACE CRASHED JETS

Bangkok THE NATION in English 18 Apr 87 p 2

[Text]

THE Royal Thai Air Force (RTAF) said

yesterday that it needs three jet-fighters and a

trainer jet to replace the four jets that crashed

last month in its worst single-day loss.

RTAF Commander-in-Chief ACM Praphan

Dhupatemiya, however, said that the air force

did not have the money to buy new jets.

Speaking to reporters at the Parliament, the

air force chief said the RTAF lost four F-5E

jet-fighters in two separate accidents. Three of

the jets smashed into ä hill while en route to a

demonstration marking the RTAF anniversary

March 27. The air force also lost a T-37C trainer

jet which crash-landed near the Don Muang

Airport on the same day.

"We hope we can find money to purchase the

same type ofjets because the prices are relatively

cheap and their combat capability is up to the

standard," he said.

Each F-5E jet costs about 14 million baht.

Praphan said that the air force was also short

of trainer jets, although it took delivery a couple

of days ago of two B5 trainer planes costing

US$300,000 each from the United States.

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He said RTAF cannot afford to buy F-5 trainer

jets for the time being because they are too

expensive.

I'd like to tell you that we have tried our best

not to bother others and we have been trying to

delay low-priority projects, but please be

sympathetic with us. In some cases, we do need

to spend money," he said.

The air force chief also confirmed a Nation

report that RTAF had decided to purchase a

number of T-37 anti-aircraft artillery guns from

China.

He said that the air force reported the decision

earlier this month to Defence Minister ACM

Panieng Kantarat, who would ask for the final

Cabinet approval.

"We are still waiting, for the approval, but I

don't see any problem,' he said.

ACM Praphan said that the air force has

allocated about 300 million baht for the

purchase.

RTAF sources told The Nation that the deal

would involve about 30 twin-barrelled antiaircraft artillery guns and five units of fire

control radar.

49

fev^*j/5<;
THAILAND

DETAILS OF CPT ARRESTS, WHO'S WHO

Bangkok THE NATION in English 26 Apr 87 p 9

[Article by Sompong Kittinaradorn]

[Text] A total of18 communist suspects were arrested

early last week in a major swoop which dealt a

severe blow to the Communist Partu of

Thailand (CPT). Sompong Kittinaradorn

relates here how the secret operation was

shaped up and carried out.

Q\ UNDAY nightApril 19, fear that this would scare

T^% at about 7 pm, an them off. The sighting ofthe

h*Jrinformant gave the two sedans and a checking of

authorities an important their registration numbers,

tip-off: a large group oftop

communistleaders were

however, convinced the officials that the tip-offcannot be

huddling inside two bunga- taken lightly.

lows at a seaside resortin After lunch in the tourist

Bangsaen. Such a rare resort, most ofthe team

meeting would not take rushed back to their offices in

long and the top-brass the capital but some were left

communists would prob- behind to tail the seven

ably split Monday orTues- ,

day, the authorities were

! suspects.

Monday night, the informer

told. They were aware that was called to a meeting where

they had to race against he was questioned on every

time lest they miss the best detail ofthe conference going

windfall in years. on. The debriefing had to be

A team ofofficials disguising held at night due to some

themselves as tourists inconveniences.

travelled from Bangkok to The tough questioning

Bangsaen Monday morning to which started at about 7 pm

double-check the tip-off. They convinced the authorities of

wanted to make sure that they the accuracy ofthe tip-off and

were not being fooled. provided them with details

The officials located what necessary for their operation.

was reported to be the secret A meeting of key officers

rendezvous ofthe top com- representing related agencies,

munist leaders at about 11 am including the Special Branch

and spotted a Volvo and a Division ofthe Police DepartPeugeot 504 parked at two ment, the Internal Security

bungalows. They did not get

too close to the suspects for

50

Operations Centre, and the

Armed Forces' Security Cen-
tre was hastily called to

discuss what should be done.

The officers carrying the

rank ofmajor general for the

men in uniform and a C-8 or

C-9 level for civil servants took

only about half an hour to

debate on the issue. They saw

eye to eye that the government should seize the golden

opportunity to swoop on the

suspects. This despite a concern raised in the meeting on

its political implication: the

major haul may draw criticism

that the government cooked it

up to divert public attention

from the.reports that government and army lobbyists were

sabotaging the opposition plan

to grill Prime Minister Prem

Tinsulanonda and his Cabinet.

The meeting quickly shot

down the concern on grounds

that security considerations

must take precedence over

political considerations. They

agreed that they would put

forwards a proposal for the

arrest to their superiors at the

top. Ifthe superiors turned

down the proposal for whatever reasons, the authorities had

at least put a "professional

proposal" to them.

IMMEDIATELY after the

meeting, the authorities

started working out a

report on the issue and the

operation plan. They finalized

and filed the report at about

10 pm to Interior Minister Gen

Prachuab Suntrangkoon and

Army Commander-in-Chief

Gen Chavalit Yongchaiyudh

in his capacity as deputy

general director of communist

suppression. The officials got

the approval for the arrest at

about 11 pm late Monday

night.

The whole morning the next

day was wasted on preparations which involved a lot of

paperwork and procedural

red-tape. The knowledgeable

authorities did not know then

when the seven communist

suspects would wound up the

meeting and leave their secret

rendezvous.

At about 1 pm, the preparations were finalized and the

team comprising about 20

officials from the Special

Branch Division and other

related agencies rushed out of

the capital in three sedans and

a pick-up truck, heading for

Bangsaen to raid the suspects'

bungalows.

The Special Branch Division

officials were clad in white

T-shirts for the operation and

the pick-up truck was prepared for the transportation of

the suspects back to Bangkok.

In the meantime, the authorities tailing the suspects

flashed a message to the raid

team that the seven suspects

had wrapped up their meeting

at about noon and were

making preparations'to leave

the bungalows.

The suspects left in the two

automobiles and used separate

routes to the capital. Alleged

Politburo members Prachuab

Ruangrat, Nop Prasertsom

and central committee member VibulJenchaiwat were

seated in the Volvo driven by

Chidchanok Sophonphan,

alleged to be a close aide of

alleged politburo member

Vaithoon Sinthuvanich. The

Volvo moved southwardsto

Bangsaen and then turned

back northwards to Chonburi

while the Peugeot headed

towards Angsila on a separate

route.

Obviously, the two vehicles

took separate routes so that

they would not travel towards

Bangkok at the same time.

The other three suspects:

Vaithoon, alleged politburo

member Sin Termlim and

alleged central committee

member Chamnarn Banchongkliang, alias Chao Pongsunthornsatnit were in the

•Peugeot.

The authorities' cars met

the suspects' vehicles at about

3 pm on the highway between

Chonburi and Bangpakong

District ofChachoengsao. The

officials' cars turned back and

chased the two speeding

vehicles.

The police team leader, Pol

Col Panya Sathonpanich,

decided at the crucial moment

that highway police had to be

brought into the arrest operation at the last minute;

otherwise it would become

futile.

The section chief ofthe

Special Branch radioed to the

highway police based along

the Chonburi-Bangpakong

Highway for help. Thanks to

his past service in the

Highway Police Division, the

highway police swiftly acted

on the request although they

had no knowledge about the

operation but for the order

that the suspects must be

stopped and arrested. Minutes

afterwards, a number ofpolice

cars pulled out ofthe checkpoint nearest to the suspects'

automobiles, their sirens blaring out along the highway

while they were after the

51
suspects.

ABOUT 3.20 pm, the

highway-police cars

overtook the Volvo and

the Peugeot, which were about

10 kms apart, and intercepted

them. The suspects were calm

and did not put up any

resistance.

The seven communistsuspects were later taken to

Bangkok.

At the detention centresin

Bangkok, officials in charge

fought an ideological battle

with the suspects to persuade

them to renounce their objective ofoverthrowing the

government through underground and subversive activities.

"Communism does notsuit

the Thai circumstances and

things are getting better

gradually. Why don't you and

your colleagues come out and

join hands with us to make

contributions to the country."

"Ifyou cooperate with us, we

will give you lenient treatment." So were the suspects

told in the intense lobbying.

Six ofthem stood firm and

kept quiet but the last one

finally broke down after four

hours ofideological debate

with the authorities. He

revealed the city hide-outs of

party cadres, including two

alleged central committee

members, at about 10 pm

Tuesday night. Earlierin the

night, he had revealed the

residence ofOnsri Intawuthichai, the wife of

alleged politburo member Nop

Prasertsom. The broadcast of

the arrest news reportedly

alerted the female suspect who

waited until late that night to

leave her house. She was

nabbed by the officials who

had staked the house waiting

for her to come out.

At about 3 am Wednesday

morning, nine police teams

raided what were suspected to

be the hide-outs ofother senior

communist membersin the

city. They rounded up eight

others including Prasert

Thaothongchai and Nok

Bunyodom, alleged to be

members ofthe CPT's central

committee. Police later nabbed

two other suspects.

Urban Strategy Derailed

THE massive haul of 18

communist suspects early last week once again

frustrated the serious attempt

by the outlawed Communist

Party ofThailand (CPT) to

realize its new strategy of

promoting underground activities in the capital and other

urban areas, official analysts

told The Nation.

The CPT's first serious

attempt to infiltrate the

capital and the urban areas

was detected not long after the

so-called Fourth Party Congress adopted a resolution to

shift the emphasis from the

armed struggle in the remote

and rural areasto "political

and other forms ofstruggles"

in the urban areas five years

ago. The CPT leadership had

assigned a group ofsenior

members, including six alleged

central committee members,

to step up the propaganda

work in the urban areas to

recruit more sympathisers and

members. These groups of

high-ranking operatives were

however nabbed in a massive

swoop which rounded up a

total of 23 communist suspects

on July 3,1984. The six

alleged central committee

members were Manoch

Methangkul, Saiyud Tapansith, Sa-nguan Thipsing,

Prasong Arunsantiroch, Pirun

Chatvanichkul and Mrs

Cholthira Sattayawattana.

The Prosecution Department

had decided against filing

communist charges against

Mrs Cholthira and Saiyud for

lack of evidence while the

other suspects are standing

trial at the Military Court.

The official analysts said

that the senior communist

suspects nabbed in the swoop

on Tuesday and Wednesday

had been assigned the work

which the captives should

have been doing had they not

, been arrested three years ago.

; Chamnarn Banchongkliang, for example, has been

assigned to take over the

urban responsibility from

Arun Santiroj, who was

arrested in the 1984 swoop.

Sin Termlim, an alleged

politburo member, has also

reportedly replaced Prasit

Thiensirvwho was well

experienced in working with

labourers before he died of a

serious ailment on March 5,

last year. Sin had been

reportedly shuttling in and out

ofthe capital frequently before

the arrest.

Vaithoon Sinthuwanich,

another alleged politburo

member arrested last Tuesday, is a graduate of

Thammäsat University and

has been regarded as CPT's

asset in its attempt to promote

the activities to drum up

support from the intellectuals

and student activists.

The official analysts'said

that as a result ofthe swoop,

CPT lost almost all its

top-ranking operatives well

versed in urban affairs.

Thong Jaemsri, the general

secretary, who is still at large

used to operate in the city but

52
the analysts doubted that the

leading OPT leader can take

over the iob given his heavy

responsibility to oversee all

the domains ofthe CPT's

affairs and the higher risk of

being captured in town.

Except for Prasit Tapienthong, the other central

committee members are

mostly inexperienced and

were just elected to the

top-brass leadership in the

Fourth Party Congress.

Moreover, most ofthem were

farmers, and not intellectuals.

Prasit, the exception, is in fact a senior communist member

who used to work with

labourers in town. He was

married toa worker.

The swoop on the four

alleged politburo members

and four central committee

members will also affect the

CPT's activities throughout

the country because the

captives have been assigned to

supervise the operations in

various regions. ACCORDING to the

official analysts, Vaithoon and Chamnarn are

responsible for the CPT

activities in the Central

Region; alleged politburo

member Prachuab Ruangrat,

alleged central committee

members Vibul Jenchaiwat

and Prasert Thaothongchai

have been assigned to oversee

the Northeast operations; Sin

served as the leadership's link

to the southern leadership and

cadres; while Nop has been

assigned to take care ofthe

operations in the North. Vibul

was also allegedly responsible

for the financial affairs ofthe

party.

The swoop may not disrupt

the communist activities in all

the four regions but the loss of

the 1 arge number oftop

leaders is expected to deala

heavy blow on the morale of

the rank and file throughout

the country, the official

analysts said.

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It was the first time that

politburo members elected by

the central committee five >

years ago have been arrested.

With four having been

nabbed, there are officially

only three politburo members

still at large: Thong, Virat

Angkhathavorn and Vinai

Permpoonsap. Virat has,

however, been incapacitated

because he is afflicted with

paralysis while Vinai has been

reported missing since 1984.

The haul has also drastically

reduced the 35 central

committee members to only 10

at the most. Apart from the 14

captured in the two big

swoops, five have surrendered,

two have been reported

missing, one died and two

others were captured by

Laotian troops while they

were fleeinga military

offensive across the Thai-Lao

border in the North.

Moreover, the arrest also

disrupted the preparations for

the holding ofthe Fifth Party

Congress. The official analysts

believe that CPT had to

postpone the meeting from

October to next year or even

the year after.

The seven top communist

suspects nabbed aftera secret

rendezvous in Bangsaen

Tuesday afternoon were

reportedly discussing preparations for the Fifth Party

Congress. A document seized during

the swoop shows that the

seven communist suspects

farmed out the responsibility

among themselves on the

drafting ofthe reports for the

Fifth Party Congress.

The outlines ofthe reports

are: the analysis ofThai

society, the overall party Performance since the Fourth

arty Congress, the party

membership and the strategy

and tactics to fight against the

government.

The document states that

they must finalize., the draft

reports within August so the

congress could be held in

October.

53
THAILAND

MONK SUPPORTS COUP LEADER MANUN, GIVES POLITICAL OVERVIEW

Bangkok KHAO PHISET in Thai 18-24 Feb 87 pp 15-20

[Interview with Phra Udonkhanaphithak Kittiwutto, the director of Chittaphawan

Withayalai, Bang Lamung, Chonguri; date and place not specified]

[Excerpts] [Question] What is your view of the general situation regarding the

present government's efforts to solve the problems?

[Answer] I think that if we are to solve the economic problems and other

problems in Thailand, the first problem that we must solve is the rice

problem. We must improve the situation of the 35 million farmers so that they

have greater purchasing power. That will improve the economic situation. The

situation of stores at all levels will improve. Many things that are now

depressed will improve. I am looking at things here. I am not looking at

things abroad. I believe that rice is the country's important force. It is

rice that can improve the economy here. There is no reason to look abroad.

[Question] Thus, if the government can solve the rice problem, the economy

will improve.

[Answer] That's right. That is my prediction. If rice recovers, the economy

will recover. We will have to wait until June. But things seem to be

improving. I don't foresee a downturn.

[Question] People are still dissatisfied with what the government has done to

solve the economic problems, isn't that right?

[Answer] If the rice problem is solved.... But there are so many problems.

It's difficult. Even if the rice problem is solved, political problems may

arise. There is still the matter of how to bring about justice in society. The

state must take steps to bring about justice among the people. Those in the

government must perform their duties in a responsible manner and view the

people as the masters. They must not view themselves as the masters of the

people. They must view the people as the masters. Resolute steps must be taken

to solve the problems. All the problems can be solved.

54
[Question] Does this require an ideological revolution?

[Answer] A revolution is aimed at improving things. If things are not good,

there must be a revolution to make improvements. Ideas and organizations must

be changed. There are many things that need to be changed in order to bring

about justice. Some of the laws need to be revised.

[Question] Do you follow politics?

[Answer] I pay attention to what is going on. I think that there are still

many problems.

[Question] You mean that there are still many problems that need to be solved.

[Answer] Yes. However, we need to concentrate on one thing first. Because in

the past, our political system has not been a democratic system. We have had

just the form. But, as you know, people have used money to purchase votes. We

have to do something to develop the people. We have to improve their standard

of living. I followed last year's election. The people were really poor. The

people had very little money. Some people did not have enough money to pay the

bus fare to the polling point. And they had to have money for lunch because

they couldn't return in time to eat at home. I am talking about people who

live far from the polling points. The canvassers sent vehicles to pick them up

and provided lunch for them. Who wouldn't accept this? They were given a

little money and some food. As a result, the people did not vote for good

people in all cases.

[Question] Shouldn't the system be changed somehow? Because giving power to

the people just on election day does not seem to be enough.

[Answer] You're right. This is not the right way. The election law needs to be

revised. I don't think that the present election method is honest. Last year,

there were many "ghost units" that voted.

[Question] Do you know anything about a national government?

[Answer] A national government could solve the nation's problems. At a time

when the political situation is unstable, we need a national government.

[Question] In the short-term, that is, in the next 3-4 years, do you think

that there will be political weakness?

[Answer] If we continue to play dirty politics like this and the politicians

are rotten like this, nothing will improve.

[Question] Do you think that there will be a coup?

[Answer] I agree with Gen Chawalit Yongchaiyut, who said that coups are a

thing of the past. I think that it will be the people rather than soldiers who

solve the problems.

55
[Question] Do you think that there will be an uprising?

[Answer] The people will solve the problems.

[Question] What form will this take? Will there be an uprising?

[Answer] I think that it is the people who can improve the country's

situation. The military is just one element.

[Question] But in what form will public opinion be expressed? Because today,

whoever makes a demand is crushed.

[Answer] They are put on the block (laughs). But if it reaches the point where

they really want to change things, no one can stop the people. If it reaches

that point. If those presently in office want to remain in office, I think

that they must quickly take steps to improve things.

[Question] If they don't, is there any chance?

[Answer] Yes.

[Question] This refers to a real revolution, right?

[Answer] (Laughs)

[Question] But the people's forces have been harassed to the point where they

have little power left.

[Answer] I'm not sure, (laughs) Don't underestimate the people. I'm not sure.

(laughs)

[Question] Do you have any knowledge that leads you to believe that....

[Answer] I have said that I am not sure.

[Question] Do people lack a center around which to rally?

[Answer] When people lack a center, it is dangerous. But I hope that those who

come in contact with the masses will be honest people and not use the masses

as a base for their own interests. In the past, people have built a mass base

for their own interests. But after obtaining what they wanted, they have

stepped on the people. The Thai people have learned from these experiences.

From now on, it will be difficult to use the people as a base. The people are

smarter now.

[Question] In the next 2-3 years, will there be anyone with the capabilities

to serve as the leader of the people?

[Answer] Thailand has many people who are qualified to lead. There are many

good people in Thailand, but they have not been given a chance. (Laughs)

56
[Question] Who, for example?

[Answer] I don't want to mention any names. But there are many such people. I

usually praise them quietly.

[Question] Are they playing a role now?

[Answer] Some do and some don't.

[Question] What about Gen Chawalit?

[Answer] He is a good person. He is intelligent and gentle.

[Question] He is sincere about wanting to solve the problems, isn't that

right?

[Answer] He has solved several problems, and he has done so using a gentle

approach.

[Question] Many people feel that the fact that Gen Chawalit has supported

solving the rice problem in cooperation with Chittaphawan means that he has

expanded his base.

[Answer] People should not think that way. If he feels that something is good,

he supports it. The farm issue is something that must be given much thought. I

started this, and he is helping. He is concerned about the farmers. Don't

start criticizing the military for getting involved with the farmers. What he

said is correct. As I have said, most of the soldiers come from farm families.

Few soldiers are sons of businessmen. Those with missing arms and legs are all

children of farmers.

[Question] There have been reports that Col Manun Rupkhachon is a disciple of

yours. Is this true?

[Answer] We have known each other for a long time. We are close to each other.

I am acquainted with many people.

[Question] Does Col Manun have sincere intentions?

[Answer] He is a person who is not afraid to make a decision. In certain

cases, he has acted too hastily. But he is sincere about wanting to solve the

problems. In solving problems, we want a leader who is not afraid to make a

decision and take responsibility. We need someone who is willing to take the

blame as well as the credit. We don't want a leader who allows someone else to

take the blame when something goes wrong. The leader must take responsibility.

A leader cannot shift the blame. When a subordinate is assigned a task and

something goes wrong, the leader must bear responsibility and solve the

problem immediately. He can't be weak.

[Question] From the standpoint of a human resource, this is a shame, isn't it?

[Answer] Yes, it is.

57
[Question] How do you feel about the fact that Col Manun has been stripped of

his rank and discharged from the service?

[Answer] I feel sorry for him. I feel sorry because he was trying to help the

country. That should not have happened. I think that it was a mistake to

discharge him. Staging a revolution is not a sin. Those who think about

staging a revolution are willing to bear the responsibility. We must give them

a chance. Just like politicians, we have to honor them. If they think in a

constructive way politically, we should honor them. The entire world must

accept this, because those with political thoughts are the people who are

willing to take responsibility for society as a whole. They may be wrong

sometimes. When they realize that they were wrong, they should be forgiven.

Manun probably had good intentions when he staged his coup. But he may not

have had an all-round view of the problems. We should grant him amnesty in

view of the fact that we have always granted amnesty to such people.

[Question] The leadership situation is not very good today, is it? As you

said, the leaders are afraid to make decisions.

[Answer] The leaders must be intelligent and think about how to solve the

problems. It must be admitted that our country's apparatus, which includes the

laws and other things, has been unjust for a long time. People have not dared

make criticisms or take steps to correct things. They have just cited the

laws as a way to protect themselves. We have to determine which laws need to

be revised. It is easy to promulgate laws but difficult to repeal them even

though they are unjust. We should repeal those laws that contain loopholes

that allow dishonest officials to oppress the people. These loopholes should

be closed so that these people will have to earn their living honestly. But

nothing has been done to get rid of these laws. A committee should be

established based on the law to determine which laws need to be repealed. We

do not evaluate the laws that are promulgated to see if they are correct. Some

of the laws are promulgated out of greed or anger. An example is the abolition

of the tax on Pepsi. (Laughs) That was an arbitrary action.

[Question] Some say that we should allow democracy, or the parliamentary

system, to develop at its own pace. Others say that nothing has improved and

that changes must be made in the political structure. With which of these

views do you agree?

[Answer] Our principles are good. The structure is fine. It is the methods

that are bad. For example, is has been stipulated that Thailand must have the

king at the head. That is good. Thailand must have the king at the head. The

problem is how to develop democracy to make it a moral system. Actually, from

te standpoint of Buddhism, democratic principles are not always correct. A

majority vote that is unjust is not right. This is part of the Buddhist

discipline. Thus, the Buddha distinguished between three types of "athipatai"

[sovereignty]: "Lokkathipatai" [worldly], "attathipatai" [self], and

"thammathipatai" [truth]. He did not use the word "prachathipatai"

[democracy]. However, it is it is the "truth" that represents democracy. In

this world, the "truth" is supreme. Righteousness is the best thing. This

means holding the "truth" and what is right as the highest good. The voice of

58
the people cannot be placed above everything else. It is also necessary to

look at what is right. If our form of administration gives more attention to

the "truth" and moral democracy, I think that everything will be fine.

[Question] Is too much emphasis being placed on the majority vote?

[Answer] Definitely! Today, more importance is placed on winning than on what

is right. If the government uses what is right as the standard instead of the

majority vote and if the opposition proposes something that is right, the

government should accept that. It should not regard that as a defeat. It

should go ahead and accept that. There is no need to take a vote all the

time.

[Question] Can the present system be called a parliamentary dictatorship?

[Answer] If the majority is immoral and does not listen to the opposition,

that is a dictatorship regardless of the actual system. If those in power do

not listen to the people, that is a dictatorship regardless of whether it is a

parliamentary system or some other system.

[Question] It has been said that the present prime minister has been very

lucky. What is your view?

[Answer] You can call it luck. But when it comes to making decisions,

regardless of whether it concerns increasing the salary of a subordinate or

promoting someone, at what do we look? We have to look at their goodness,

right? That is the main issue. I think that from the standpoint of goodness,

the prime minister is a good man. But there are other aspects, such as

intelligence and boldness in making decisions. This is something else.

[Question] Based on what the villagers have told you, what is their view of

the government?

[Answer] The villagers pray every evening. (Laughs) One day, a layman said to

me, "I pray that you will have a long life. I talk to my husband every night.

He says that without you, things would be very difficult. Whenever I pray, I

always pray for your safety and long life. You are our protection." I

pretended to be annoyed and said to her, "You mean that laymen <-e praying for

monks now?" (Laughs)

[Question] Whom do you think is suited to becoming leader?

[Answer] There are many people. There are many good people. We shouldn't look

at things in a partisan manner. I am not concerned about which group or party

a person belongs to. Regardless of what party a person belongs to, he must be

a good person. If he is, he can be a leader. But our country seems to be fated

to be out of balance. The good people who should be playing a role to help the

country are not given a chance. I don't know why. Something needs to be done

to enable the good people to play a role in administering and helping the

country.

59
[Question] Would you care to mention a few names?

[Answer] (Laughs) No, I don't want to go that far.

[Question] Today, it seems as if we are creating a system in which there is no

competition. That is, this is the only person who can serve as leader. No one

has any idea who the 17th leader will be.

[Answer] There are many people. But this isn't the time to reveal their

identities. People will accuse me of appointing the next prime minister. Prime

Minister Prem will fault me.

[Question] Have you ever talked with Prime Minister Prem?

[Answer] No.

[Question] What does Gen Prem think about the rice program of Chittaphawan?

[Answer] I don't know. But Deputy PM Sonthi (Admiral Sonthi Bunyachai, the

deputy prime minister) stopped and visited me. He is a very hardworking

person. The prime minister understands and chose him as his servant. (Laughs).

Because Deputy PM Sonthi is an honest person who tries to maintain the

interests of the country. If he had not been put in charge of the rice problem

this year, the country's interests would have suffered greatly. As you

probably know, the reason why people criticize him so much is that he is

working to preserve the nation's interests. He wants to succeed. As for his

honesty, I can assure you that he wants to help the farmers. He made a point

of coming to see me. He asked about the things that I am doing.

[Question] What about the matter of politicians lacking qualifications and the

problem of corruption?

[Answer] We have to solve the economic problems, the economic and welfare

problems.

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60
THAILAND

PUBLISHER VIEWS DESIRABILITY OF END TO PREM TENURE

Bangkok LAK THAI in Thai 9 Apr 87 p 66

[Speak Thai column by Rattana Yawapraphat: "Topple Prem Through Parliament"]

[Excerpts] Even though people have been working together for a long time to

end Prem's tenure as prime minister, the gong was sounded and resolute action

was taken only near the opening of parliament in April. The opposition parties

are citing old reasons as an excuse to hold a no-confidence debate on Gen

Prem. These include his inability to administer things or solve the problems

for the people. The economy is still terrible, and the people are growing

poorer and poorer all the time. Even though the opposition is using these old

reasons once again, it has a good system for expressing its ideas. As a

result, people who have little interest in politics view the Prem

administration with great distaste.

Gen Prem has been prime minister too long. He has served in this position for

five terms for a total of 7 years. Obviously, many people are tired of him.

This is particularly true of opposition politicians, who are bent on taking

his place, and their followers. The long wait of the opposition parties is

like a huge bonfire that oould flare out of control if someone pours on a

little more gasoline.

However, the good point of democracy is that when the leader of the country

has been in office too long, those who are tired of him can find an issue in

order to force him out. But the person in office has the right to stay in

office if his followers can gather their forces and give him strong support.

In some democratic countries, there is a good understanding of how the people

and opposition feel and so there are stipulations in the constitution to

prevent a person from holding the position too long. The constitution

stipulates that a person can remain in office for only two terms. After that,

someone else, whether from the same party or from an opposition party, must be

given a chance to hold this position.

If a person remains in the top position for too long, this leads to a

reluctance to give up power or to a "disease" that can be called "power

crazy." A recent example was that of President Marcos in the Philippines. He

forgot himself and the rules of democracy. Gen Prem is lucky not to have a

61
wife like Mrs Marcos. Because of this, many of his difficulties have subsided.

But even so, he must not forget this rule of democracy. He must step down as

prime minister next year, which is when his present term of office expires.

Trying to topple Prem through parliament is an ordinary matter. Similarly, it

is only normal that Prem will try to prevent others from toppling him either

this way or in some other way during his term of office. Democratic people do

not ride tigers. Thus, they can step down as prime minister when the time

comes. And when Gen Prem steps down, he will be called a statesman. Throughout

our long period of democracy, there has never been such a political statesman.

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62
THAILAND

CHAVALIT ON FERTILIZER PROJECT

Bangkok BANGKOK POST in English 18 Apr 87 p 11

[Article by Pattnapong Chantranontwong and Chatrudee Kittisuksatit]

[Text]

ARMY Coinmander-in-Chief

Chavalit Yongchalyudh has

led a group of investors to the :

rescue of the dying National

Fertiliser Corporation fertiliser project, an informed

source told the Bangkok Post

yesterday.

Gen -Chavalit, together with

other project Bupporters, have

agreed to set up a new company,

which is expected to be called

Agriculturers Corporation, to act

as NFC's share holding firm.

The holding firm will have a

registered capital of 100 million

baht with Gen Chavalit acting

as one of its shareholders.

The source said most of the '

new firm's shareholders will be ,

agricultural and farmers' cooperatives and organisations.

A Scandinavian-based finan- ,

cial source has agreed to provide :

a soft loan of more than 200

million baht to the company

' which will subscribe to NFC ,

shares to boost its registered |

capital to 2,250 million baht.

NFC has not yet been able to j

increase its registered capital to i

2,250 million baht BB many of its

Thai shareholders have refused

to contribute any more to the

corporation because of doubts

hanging over the project's feasibility.

So far only 86.78% shares

have been subscribed to, so the

new firm will subscribe to the

remaining 13.22% worth about

297.45 million baht.

Committed subscribers comprise the Bank for Agriculture

and Agricultural Cooperatives

with 0.78%, Krung Thai Bank

with 1.92%, the Finance Ministry with 7.86%, the Petroleum

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Authority of Thailand with

16.49%, the Marketing Organisation for Farmers with 6.28%,

financial companies with 0.48%,

commercial banks with 4.62%,

insurance companies with

0.72%, fertiliser firms with

2.63%, Stamicarbon BV with

3.54%, Haldor Topsoe with

4.73%, the Industrial Fund for !

Developing Countries (IFU) with

4.73%, Jordan Rock Phosphate

with 10%, the contractors with

10% and the international Finance Corporation with 12%. i

Although the source declined

to name the Scandinavian financial source, it is expected to be

Haldor Topsoe which will operate the project if it is able to get

offthe ground.

Haldor Topsoe earlier proposed a 200-million-baht soft

loan extension to the NFC. The

loan, which would be channelled

through IFU of Denmark, would

carry an interest rate of about 3-

4% for a period of at least five

years.

The source said the new firm

was expected to be registered

shortly, after which it would

issue a prospectus inviting the

general public to subscribe to its

shares.

Agriculturers Corps backing

will help the NFC complete its

registered capital increase and

raise the Thai holding in the

corporation to 51%.

If the NFC can increase, its

registered capital to 2,250'mil-'

lion baht, its position will be

strengthened in negotiations

with parties concerned and it

will also qualify for a 20,206-

million-yen loan channelled

through the International Finance Corporation of Thailand

63

from Japan's Overseas Economic

Cooperation Fund.

Meanwhile, former Finance

Minister Sommai Hoontrakul,

who is currently the chairman of

IFCT's board of directors, said

the IFCT was ready to extend

the loan to the NFC if it increased its registered capital to

2,250 million baht.TFCT would

also require a loan guarantee.

Mr Sommai said the guarantee was essential, especially now

because of the sharp appreciation ofthe yen.

As for NFC's difficulties in

boosting its registered capital

because ofthe reluctance ofsome

private Thai shareholders to in-

' crease their holdings, the former

finance minister said the Government should take more than

j a one-third share in the corporaj tion.

! "The fertiliser project is very

important for agriculturalists,"

' he said. "Without the project,

fertiliser traders can control

pricing and supply sub-standard

fertilisers to farmers at high

prices."

Meanwhile, negotiations be-

;

tween NFC and Chiyoda, the

Japanese company heading the

contractor consortium, over the

fixing of the foreign exchange

rate have ended in deadlock

again.

The NFC wanted the rate to

be fixed at 200-220 yen per dollar, while Chiyoda said it would

offer 157 yen at best,

NFC chairman Aran

Thammano said the negotiations

had automatically extended the

validity of the letter of intent

issued by the NFC to its contractors.
THAILAND

PAPER PROFILES CONTROVERSIAL BUDDHIST MONK BUSINESSMAN

Bangkok THE NATION in English 19 Apr 87 p 9

[Text]

ATJLt

MAN entering monkhood

is supposed to be

.estranged from the secu- ]

lar world, but not Kitti Vudho

Bikkhu who has been involved '

in a series of controversies, the

latest concerning "rice business."

"I have adhered to Lord

Buddha's teachings that we

must help relieve the plight of

people....," said the stout and

moon-faced Kitti Vudho Bikkhu

last Wednesday at Government

House — a place where one

would hardly come across a

monk.

The controversial Buddhist

priest was not making a

sight-seeing trip at Government

House, but discussing rice

problems with Deputy Prime

Minister Admiral Sontee

Boonyachai, chairman ofthe

National Rice Policy and Measures Committee.

Kitti Vudho Bikkhu's talks

with Sontee did not cause much

surprise, given the fact he

constructed rice mills at his

Jittapawan Buddhist Centre in

theteoastal province ofChonburi

and plans more in temples all

over the country.

Earlier this year the monk

constructed a rice mill in the

Buddhist centre compound as a

pilot project to enable farmers to

mill their paddy there instead of

paying private rice millers.

As he puts it, the main

purpose of his project is to

enable farmers to reduce the

cost of paddy production and

raise the prices.

During his talks with Sontee,

the well-known preacher proposed thatthe state-owned Bank

for Agriculture and Agricultural

Cooperatives (BAAC) waive the

2,000-million-baht interest

charged to farmers for their

10,000-million-baht debts.

On the same occasion, he

confirmed Jittapawan Buddhist

Centre's plan to take over the

financially-ailing Kanasawat

private college in the northeast- .

em province of Maha

Sarakham.

The monk said he would "beg"

creditors ofthe college to waive

debts to preventthe academic

institution from going bankrupt

which would severely affect the

students. He also has an

ambitious plan to turn the

college into a top agricultural

school as part of a move to turn

the drought-stricken Northeast

into a "green belt."

In an earlier interview, the

monk said he has forwarded a

request to the University

Affairs Ministry for the establishment of a college in the

compound ofJittapawan centre

in Banglamung District. The

college, to be named "Banglamung College," will concentrate

on producing graduates in

vocational fields to ensure them

ofjobs.

64
Lecturers ofBanglamung:

College will be laymen and

Buddhist monks and the college

will cooperate with its sister

college, Kanasawat, he added.

Kitti Vudho Bikkhu also haä a

long-term plan to raise water

buffaloes, Asia's rice field

"tractors." The animals, raised

atJittapawan centre and other

temples, will be distributed to

farmers free of charge.

"The farmers who get the

animals from the temples must

promise not to eat, sell or

overwork the animals on religious holidays," he said.

Kitti Vudho Bikkhu has

always been a controversial !

figure" with a capacity for doing

things which invite criticisms. , The monk has been accused

by critics of being a right-wing ',

religious activist, a gun smuggler for Kampuchean guerrillas,

a bogus businessman and a

misguided monk who uttered

such ä shocking statement as "it,

is not a sin to kill a communist." '

However, the 51-year-old

monk has survived such attacks

with very few bruises.

In the early 1970s, Kitti

Vudho Bikkhu had overt links

with the right-wing "Nawaphol"

movement." His association

with Nawaphol caused question-1

ing over the role ofBuddhist

monks in politics. And the

disputed remark, "It is not a sin

to kill a communist," was part

of his sermons made then. (

The controversial activities

inside the Jittapawan Buddhist

Centre at that time generated a

great deal ofspeculation. The

centre remained strictly off:

limits to outsiders and was

suspected ofbeing used as a

military training ground.

At present, there is no other

temple in the country quite like

Jittapawan. Instead ofbeing

contemplatively quiet, the

Buddhist centre looks like a

small-scale industrial plant with

rice mills, car and bus repair

operations and workshops.

Buddhist monks there communicate with one another

through walkie-talkies.

In one ofthe scandals M

involving Jittapawan, police ,

uncovered a huge arms cache in i

a convoy of cars which brought

•Kitti Vudho Bikkhu and his

followers to a religious function

near the Thai-Kampuchean

border.

Even though Kitti Vudho

Bikkhu vehemently denied any <

involvement, speculation ran

wild that the seized weapons

were destined for Khmer Seri

resistance forces fighting the

pro-Peking Khmer Rouge ruling |

Kampuchea at that time. j

'. Later, there were scandals

involving the purchase ofseveral Volvo sedans and a woman

alleged to have had "close

contacts " with Kitti Vudho

Bikkhu,

. In 1985, Kitti Vudho Bikkhu

made headlines again when

about 3,000 clients of one ofthe

most Cilebrated chit fund

operators — Mrs Nokkaew

Chaiyuen — gathered atJittapawan to listen to what

Thai-language dailies called his

"chit fund sermon."

Fugitive Nokkaew was declared bankrupt for allegedly

violating the government's

Anti-Chit Fund Act. '

In his sermon to Nokkaew's

clients, who lost hundreds of

millions of baht in the unorganized money game, Kitti Vudho

i Bikkhu said they were pursuing

the "right course" by investing

' in the chit fund poll. Furthermore, ifsomeoneTvere to be

blamed for their sufferings, it

would certainly be the government, he had said.

Critics ofthe monk questioned the motive behind his

move in defending Nokkaew.

And the Education Ministry

immediately ordered an investigation of him by the Sangkha

Supreme Council, the body

which oversees the activities of

Buddhist monks.

Kitti Vudho Bikkhu entered

the monkhood when he was 20,

the traditional age when Thai . men enter the monkhood for at

least one month ofsoul,

searching.

Initially, he intended to be a

monk for a short time. However,

he has stayed in the monkhood

for more than 30 years and

turned the life ofThai Buddhist

priests upside down.

He spent his early days in

monkhood in Wat Paknam

Pasicharoen before moving to

Wat Mahathat, where he is

affiliated despite spending most

ofhis time atJittapawan which

he founded.

Kitti Vudho Bikkhu is known

for his eloquent preaching style.

He has a great following

including many who supported

him financially — and sometimes politically.

/8309

CSO: 4200/564 65
THAILAND

WEEKLY VIEWS PATENTS, FORSEES PROBLEMS

Bangkok KHAO PHISET in Thai 25-31 Mar 87 pp 6, 7

[Editorial: "Patents, Be Careful About Domination of Information"]

[Text] Strong pressure is being exerted to protect patents. This problem arose

just a few years ago. This is a sign of tension in international relations,

often referred to as "north-south relations." This tension has arisen at a

time of crisis in the world economic system, a crisis that has existed for

several years now. The problem of patents and intellectual property rights

became a serious international issue when newly-developed countries such as

Korea, Brazil, and Mexico developed the capabilities to copy and modify the

technology of the developed countries, which gave them the ability to produce

the same types of goods and compete on world markets. They succeeded in taking

markets away from the developed countries. Thus, the developed countries,

which were in the midst of the world economic crisis, began exerting pressure

on these countries in order to protect their patents. All of this has affected

Thailand, too, as KHAO PHISET reported recently.

Domestically, the patent problem reflects the conflict between the

multinationalcorporations, which want to protect their interests, and Thai

financiers, who want a chance to develop the technological potential under the

existing patent system, that is, the legal system that affords weak patent

protection and the weak patent administrative system. Clearly, this conflict

concerns a struggle for profits. This problem also has many other effects,

effects that concern other elements of society such as people in general and

the government. For example, prices will increase and we will have to spend

more foreign currency if there is strong patent protection.

In the midst of this struggle over interests, the groups with superior power,

particularly the multinational corporations, have a great advantage, because

they can mobilize the state apparatus and international units to support

them and put pressure on the Thai government. They can also disseminate

information and ideas on the patent systems that are in accord with their

interests. And from what we have seen, many Thai bureaucrats seem to favor

strong patent protection. In particular, they are happy to receive the

technical aid (concerning patent administration) provided by the World

Intellectual Property Organization (WIPO).

66
KHAO PHISET feels that it has a duty to provide information about this matter.

To this end, we would like to present the ideas of an American scholar. On

21 March, Professor R.E. Evenson, who is on the staff of the Economic

Development Center, Yale University, told KHAO PHISET that WIPO was

established in order to protect the system of patents and other intellectual

property. One of its important tasks is to exert pressure on countries to

promulgate strong patent protection laws. WIPO's objective in giving technical

aid (concerning both content and administration of the patent system) to

Thailand and other developing countries is to get these countries to provide

strong protection for the patents (of the developed countries), which will

greatly benefit the developed countries.

He said that the countries that provide strong protection must be countries

that have a high level of technological development and a strong industrial

base. The developing countries, such as Thailand, which began carrying on

technological development just recently, should provide weak patent protection

in order to give Thai industrialists a chance to copy and improve existing

technology or disclose things in the patent journals of the developed

countries without having to pay anything (free rider). Besides this, these

countries should not give patent protection to products that are of great

benefit to the country, such as medicines, crop varieties, livestock breeds,

and so on.

Professor Evenson feels that Thailand's Patent Act has already taken these

issues into consideration and that there is, therfore, no reason to revise

this act. The country's interests have been looked after well. As for those

countries that cannot produce high technology to compete on the world market,

the appropriate patent policy is to provide weak protection and engage in weak

patent administration.

This is additional information that should be considered, particularly by the

government units concerned, national-level policy administrators, and MPs,

whose duty is to promulgate and revise laws.

11943

CSO: 4207/183

67
POLITICAL VIETNAM

VOTERS COMPLAIN ABOUT ELECTION PROCEDURES

Ho Chi Minh City SAIGON GIAI PHONG in Vietnamese 21 Mar 87 p 1

[Article by Ben Nghe: "A Reasonable Request"]

[Text] Up until today (20 March 1987), we have received 18 letters from

individual or collective voters in a number of subprecincts, village, units,

agencies, enterprises, etc., reflecting a lack of democracy in the

introduction of election candidates. The writers requested that these letters

be immediately delivered to the Municipal Election Guidance Committee with a

request for prompt inspection and examination to correct any mistakes noted in

accordance with the directive of the Political Bureau in order to prevent a

loss in confidence of the voters in those locations.

Careful reading of these appeals shows a general compulsion by preconceived

opinions and structures without listening to the opinions of the people,

placing those for which a majority of the voters have no confidence on the

election roster, and failing to include those in which the voters have high

confidence. When the voters anxiously inquire, the explanation is that it "is

due to the stipulated structure," that "people's council delegates must be

leadership cadres," "must be party members," etc. If the voters fail to agree

and complain further, some locations have "diplomatically" and "tactfully"

sent someone from the election and front committees to "make satisfactory

arrangements for tranquility." However, there have also been places that have

ingeniously ordered that cadres responsible for the election and other key

cadres in the local area harshly question the doubters, including many who

have been recommended for election,but have not been placed on the election

roster, as follows: "If he (or she) will dare to pledge to our faces that he

is competent to fulfill the role and responsibility of the people's council,

go ahead and demand that he be elected."

In accordance with the reasonable demands of the voters, we have sent the

letters above to the Municipal Election Guidance Committee with a suggestion

for prompt inspection, examination and resolution. We believe that the

constructive voices in the letters above prove the political growth of the

people, and prove that the people have confidence in the party and the

government, and want all levels of the party and government to resolutely

supervise proper compliance with the point emphasized by Phan Van Khai,

Chairman of the Election Guidance Committee, that it is necessary to "be truly

emocratic in the election, especially in the selection and introduction of

candidates."

7300

CSO- 4209/V20

68
POLITICAL VIETNAM

NEED FOR REGULAR PUBLIC CRITICISM IN PRESS DISCUSSED

Hanoi NHAN DAN in Vietnamese 3 Apr 87 p 3

[Article by Huong Duong, State Inspection Commission: "Inspections and the

Broadening of Democracy and Public Criticism"]

[Text] With a spirit of looking squarely at the truth, evaluating things

correctly, and speaking the truth, many newspapers at the center and in the

localities have publicly criticized a number of negative matters of a serious

nature.

In the case of a number of these newspaper articles, the authorities have

studied the matter and prosecuted those who committed violations. However, in

a rather large number of cases, the organizations responsible have failed to

respond to the revelations in the newspapers. They have not handled matters

promptly with the aim of satisfying the wishes of the masses.

Public criticism in the press under the socialist system in our country is a

matter with the nature of a principle and was affirmed long ago.

As for the inspection organizations, public criticism in the press and the

examination of complaints are tied to each other very closely. Furthermore,

something that is of even greater significance is that public criticism is a

form of control by the masses over the activities of the organizations and

personnel in the state apparatus. Thus, in organizing inspections at various

echelons, on one hand, there must be an objective attitude and zeal and

support for revealing criticisms in the press. On the other hand, things must

be coordinated with the organizations that have judicial functions in order to

examine and respond seriously to the questions raised by the masses and

readers.

Through public criticism, the inspection organizations can obtain a sizable

quantity of information from the masses. Based on this, they can carry out

their duties and tasks better. The resolution of the Sixth Party Congress

states that the "slogan of the'people knowing, discussing, acting, and

controlling and all for the people and by the people' must be implemented. The

masses must be mobilized and organized to participate in managing the economy

and society and to participate in the economic reform activities."

69
In order to fulfill this requirement and turn the party's resolution into a

living reality in social life, promoting public criticism in the press is a

necessary measure of positive significance. This must become a regular

activity. It should not be done only when there is a campaign.

11943

CSO: 4209/408

70
POLITICAL VIETNAM

ILLEGAL PRACTICES OF MANAGEMENT UNITS DISCLOSED

Hanoi NHAN DAN in Vietnamese 3 Apr 87 p 3

[Article by Le Huyen Thong: "Through the Inspection of Two Business

Management Installations in Thai Binh and Hau Giang: Social Justice and State

Discipline"]

[Text] The "health" of a business corporation that has exceeded the quotas in

the state plans every year is being inspected by a provincial inspection unit.

This has generated great concern among many people. As a unit that has

integrated business tasks, the Dong Hung District Commercial Corporation has

actively maintained the sources of goods and obtained many types of goods. The

operational guideline of the corporation is to regard supporting the laboring

people as its main task. But reality has been very different.

The Essence of the Matter

In response to complaints by people^ team of inspectors from the Thai Binh

provincial People's Committe was sent to this corporation in order to examine

the use of the commodity funds, the distribution of materials, and the

implementation of the price policy during the past period. The team discovered

many irregularities. The unfair distribution of goods is the striking point

here. Analyzing this from the perspective of social policy, these shortcomings

lead us to believe that social justice must also be ensured in support

businesses. Distributing commodities based on special privileges and special

interests will create additional negative aspects in life and reduce the

enthusiasm of the excellent laborers who have contributed much to society.

Social justice in the sphere of distribution and circulation takes place on

many fronts and is manifested fairly clearly in the implementation of the

policy of the district people's committee on "distributing cement to the

villages in order to sell bonus amounts to those people who have scored

achievements in selling much pork to the state." The Dong Hung Commercial

Corporation delivered almost 300 tons of cement to the villages in order to

implement the resolution of the district. However, the bonus sale of scarce

items to the people has been done in a very arbitrary manner. To be allowed to

buy a ton of cement, some villages have had to sell only 2 tons of pork while

other villages have had to sell 3-4 tons. Some villages have had to sell as

much as 9 tons of pork. And when the cement reaches the village, distribution

is not fair. This has led to jealousy and suspicion among the people. Some

71
villages have sold almost all of the cement sent to the village by the

district to the cadres and to families that did not sell any pork to the

state. At the same time, many households of excellent cooperative members who

sold much food to the state-operated commercial organizations have not been

allowed to buy any of the cement.

The exchange of cement for the paddy of the peasants has been carried out

inefficiently, too. A number of villages that have many agricultural products

and that have fulfilled their obligations to the state for many years have not

received their fair share of the industrial goods, or they have received about

the same amount as villages that have not done a good job in production and

that have contributed little to society.

This corporation had a number of good-quality transistor radios. It was

thought that these would be distributed to the villages that had many

agricultural products. But instead, 44 percent of these valuable radios were

sold to cadres for whom the district had issued a letter of introduction. The

rest were sold to personal acquaintances as determined by the corporation.

This was a case of "all talk and no action."

Something that should be given attention is that the commercial corporation

and stores have frequently sold valuable and scarce goods at low prices based

on "internal distribution." Or these goods have been reserved for sale to

personal acquaintances and "dignitaries" in the localities. The distribution

of mosquito net cloth to the villages during the past several months has been

very irrational, too. Some villages have received only 40 meters while for

some reason, other villages have received almost 3,500 meters in just a short

period of time.

With such an irrational distribution of goods as that exhibited by the Dong

Hung Commercial Corporation in the recent past and that is still taking place

at a number of other places today, it will be impossible to manifest the

social enthusiasm of the real laborers. In reality, when distribution is

unfair, many times this has a negative effect and encourages cheating,

laziness, and illegal activities.

How Could This State of Affairs Continue for so Long?

Unlike the function of the Dong Hung District Commercial Corporation, the Chan

Tho City market management unit was established to carry out two tasks: to

oppose speculation, smuggling, the production of bogus goods, illegal business

activities, tax evasion, and the theft of state goods and to contribute to

stimulating commodity circulation, creating conditions to expand production,

and stabilizing the market. Unfortunately, a number of cadres and personnel in

the Can Tho market management unit did not carry out these tasks.

Many people in Can Tho City have complained about the the unit's violation of

the principles in seizing contraband (almost 600 memorandums filed during b

months of seizing goods were not stamped and many of the figures were

changed). Many of the seizures were not recorded in the files, particularly in

the case of abandoned goods. Many types of goods seized by the unit were

distributed like a bonus using the form "sell internally at a flexible price.

72
What is even more important is the unit's arbitrary and arrogant work style

and its brutal violation of the people's ownership rights. The unit has used

weapons, detained people, and beaten people in violation of the law. A number

of bad elements have relied on this unit to oppress the masses.

Based on many complaints filed by citizens, the Hau Giang provincial People's

Committee recently directed the provincial Inspection Commission to examine

the activities of the Can Tho market management unit. One question is, how

could this unit have violated state discipline and encroached on the property

and ownership rights of the people for so many years without action being

taken to stop it?

Through examining the two business management organizations in Dong Hung and

Can Tho, we now know that implementing social justice must go hand in hand

with restoring discipline in socioeconomic management. This is an urgent

requirement of life today. These two aspects are tied to each other closely

and affect each other. Because whenever a place fails to implement social

justice, laws will be violated there. And if the laws are violated, there is

no need to talk about social justice.

11943

CSO: 4209/408

73
POLITICAL

VIETNAM

NEEDS OF YOUTHS DISCUSSED

Hanoi NHAN DAN in Vietnamese 26 Mar 87 p 2

[Article by Pham Thi Hong: "Give More Attention to the Legitimate Needs of

Youths"]

[Text] As the Fifth National Congress of Delegates of the Ho Chi Minh

Communist Youth Union approaches, many primary-level union organizations have

reviewed youth mobilization activities during the past period. One matter that

needs to be given attention is that union activities in many places are still

formal and monotonous. There is too much red-tape. Things are done in an

ostentatious and wasteful manner, and results are poor. There are many reasons

for this state of affairs. In this, attention should be given to the fact that

the various-echelon union organizations do not given attention to the

legitimate needs and preferences of the youths. In mobilizing youths, many

party committee echelons have not kept in close touch with the lives of the

youths, particularly the problems that they are facing. The mobilization

activities lack forms suited to each type of target.

"Administrationism" in the activities of the union has reduced the results of

the youth mobilization activities. The party Organization Department and the

propaganda and training departments of the provincial unions in the Mekong

Delta and Ho Chi Minh City recently began conducting a survey on the

aspirations of youths ages 16 to 25 in order to try and understand the needs

of youths. From integrating and analyzing the ideas obtained in different

areas, three issues are quite clear:

a. The No 1 need: The youths want a stable job and a good income in order to

maintain their material and spiritual lives.

b. The No 2 need: It is hoped that the various echelons will create the

conditions necessary to make effective use of the youths' leisure time. Things

should be organized, and there should be recreational spots. There should be a

rich and interesting cultural life in accord with the psychology of youths.

c. The No 3 need: Many youths want to study and train and raise their

occupational standards.

74
Many cadres who have been involved in union work for many years think that

these three needs are similar to those of youths in many countries. UNESCO has

published statistics on the leading interests of youths throughout the world.

These are sports, traveling and sightseeing, camping, dancing, singing,

movies, and art.

Instilling revolutionary ideals in the youths must go hand in hand with giving

attention to the legitimate needs of the youths. Satisfying the letigimate

needs of the youths means coordinating obligations and rights. This has the

nature of a principle in order to ensure that the youth mobilization measures

are implemented well.

Today, an urgent problem that requires the attention of many primary-level

union organizations is that the contents and forms of the activities and

training must be improved so that these are appropriate for the youths and

achieve good results. To do this, greater attention must be given to the

legitimate needs of the youths. This must be manifested concretely in both the

forms and contents in making innovations in youth mobilization activities.

11943

CSO: 4209/408

75
POLITICAL VIETNAM

THAI BINH PROVINCE IMPLEMENTS PARTY RESOLUTION

Hanoi HANOI DOMESTIC SERVICE In Vietnamese 10 May 87

[Text] The Thai Binh Party Committee's standing body during 8-10

May held a conference with almost 500 leading cadres of various

branches and sectors in the province and eight units to study and

discuss measures to implement the resolution of the Party Central

Committee Second Plenum and to disseminate the Provincial Party

Committee's decision on issues concerning the management mechanism

in agricultural cooperatives. Each member of the provincial and

district party committees is assigned to guide work at one

cooperative using his comprehensive experience, while formulating

concrete action programs for agricultural production, especially

programs for improving rice fields and water conservancy projects.

It is imperative for agricultural cooperatives to promptly harvest

the spring rice while evaluating the results of the 1987 spring

crops. It is also essential for them to implement new methods in

supplying materials and in serving the 10th-month rice crop.

Thai Binh Province is planning to plant 81,200 hectares of the

10th-month rice this year to obtain a total output of 244,000

metric tons of paddy. It has also planned to plant 19,000

hectares of subsidiary food crops comprising potatoe, sweet

potatoe, and corn to bring the total outpout of subsidiary food

crops converted to paddy equivalent to 65,000-70,000 metric tons

or 5,000-10,000 metric tons over that of the 1986 winter-spring

crop.

1181/13104

CSO: 4200/566

76
POLITICAL VIETNAM

LOCAL WOMEN'S CONGRESSES HELD IN PROVINCES, CITIES

Hanoi HANOI DOMESTIC SERVICE in Vietnamese 13 May 87

[Text] To date, 40 provinces, cities, and special zones

throughout the country have held women's congresses from the

grass-roots to the provincial and city levels. This is a broad

political drive aimed at promoting a thorough understanding of

the women's motivation line of the party among women of all

strata, bringing into play the role and great capabilities of

women in carrying out the socioeconomic tasks set forth by the

Sixth National Party Congress, and protecting the interests of

women and children.

In the spirit of renovation and democratic discussions, the local

women's congresses have set forth practical, concrete, and

effective programs of action and initiated an emulation movement

among women of all strata to implement various economic and

welfare programs, ensure political security and public order and

security, and promote the building of women's and chldren's

welfare projects, and so forth.

The delegates attending the congresses have contributed tens of

thousands of ideas to the draft political report of the Vietnam

Women's Union (VWU) Central Committee and brought to the attention

of the party and state problems relating to women's and children's

interests.

The local VWU's have elected new executive committees and

appointed delegations to the Sixth Vietnamese Women's Congress to

be held on 19-20 May.

1295/13104

CSO: 4200/566

77
POLITICAL VIETNAM

BRIEFS

KEY CADRES IN LAM DONG STUDY PARTY RESOLUTION--Lam Dong has held

a conference of key cadres of various sectors, branches, mass

organizations, districts, and cities to study and implement the

resolution of the Second Party Central Committee Plenum. The

province decided to quickly disseminate this month the spirit of

the resolution among all party cadres and members and the people.

All sectors and grass-roots units will rely on the suggestions

made by party cadres and members and the people to urgently

formulate plans to implement the resolution. Pending the

promulation of a concrete state plan on the people's welfare, from

May onward Lam Dong will be granting temporary allowances to

cadres, workers, and civil servants in the administrative sector

to ensure their livelihood and create an enthusiastic atmosphere

in productive labor. [Text] [Hanoi HANOI DOMESTIC SERVICE in

Vietnamese 12 May 87] 1203/13104

PROVINCIAL WOMEN'S CONGRESSES CONCLUDE NATIONWIDE--Women's

Congresses have been held in all the forty cities, provinces and

special zone across the country in preparation for the upcoming

National Women's Congres scheduled from May 19-20. Pervaded by

the spirit of renovation, the local Women's Congresses have

worked out practical, concrete and effective programmes of action

aimed at involving women of different social strata in labour

emulation movements to successfully implement the 6th CPV

Congress's Resolution, especially in building welfare projects

for women and children. Tens of thousands of suggestions have

been made at these congresses to contribute to the draft report

of the Central Committee of the Vietnam Women's Union to be

presented at the National Congress. New executive committees of

provincial and municipal women's organizations and their

delegations to the National Congress have been elected. [Text]

[Hanoi HANOI DOMESTIC SERVICE in Vietnamese 14 May 87] 8407/13104

SRV, CAMBODIA SIGN FORESTRY COOPERATION PROTOCOL—A protocol on

cooperation between the Kampuchean Ministry of Agriculture and

the Vietnamese Ministry of Forestry for 1987 was signed in Phnom

Penh, Tuesday, reports SPK. The signing took place during a

78
recent visit to Kampuchea by a Vietnamese Forestry delegation.

The delegation held talks with Say Chhum, Kampuchea Minister of

Agriculture. The two sides discussed measures for furthering

their bilateral cooperation. [Text] [Hanoi HANOI DOMESTIC

SERVICE in Vientnamese 14 May 87] 8403/13104

CSO: 4200/566

79
ECONOMIC VIETNAM

REASONS FOR DISTRIBUTION OF POOR-QUALITY INSECTICIDE EXAMINED

Hanoi NHAN DAN in Vietnamese 25 Mar 87 P 2

[From Production to Consumption column by Hoang Van Quyet: "More Than 55 Tons

of Poor-Quality Insecticide"]

[Text] Recently, many peasant households in Ha Nam Ninh have complained about

the poor quality of the insecticide that is being sold. The Zone 1 Quality

Standards Center investigated the situation regarding this item in circulation

and distribution and found:

In circulation and distribution in Ha Nam Ninh Province, a number of lots of

insecticide were substandard in quality. Seven lots of insecticide produced by

the Vinh Thinh Chemicals Plant, which is subordinate to the Chemicals General

Corporation, were examined. The quality of five of these lots was found to be

7.8 to 22 percent below the stipulated level.

What is the reason for this state of affairs? One reason is that shipping and

receiving between the chemicals plant and the Vegetation Protection

Department, Ministry of Agriculture and Food Industries, has been carried on

in an arbitrary manner. In 1986, the Vegetation Protection Department shipped

raw materials to the Vinh Thinh Chemicals Plant to produce insecticide. In

return, it received insecticide for distribution. The two sides have this

economic relationship but have not signed a contract. As for quality, the

Vegetation Protection Department received the lots of insecticide from the

plant, but there was no attachment indicating product quality control results.

Before receiving the insecticide, the department checked samples from the

lots. In 1986, 51.9 tons of methyl parathion 50ND, 2.1 tons of kitazin 50ND,

and 6 tons of basudin 10 percent were found to be of poor quality. Because the

goods were substandard, they should not have been accepted. But the Vegetation

Protection Department accepted the insecticides and sold them to farmers at

cost.

In April 1986, the Vegetation Protection Department shipped 30 tons of

raw materials for producing kitazin 94 percent to the Vinh Thinh Chemicals

Plant (again, without an economic contract). According to the norms

stipulated, the Vinh Thinh Chemicals Plant was supposed to produce 55.45 tons

of kitazin 50ND of the stipulated quality. The plant finished producing this

lot around the end of the 2d quarter and the beginning of the 3d quarter of

80
1986. It should have been put to use immediately, but the two sides got into a

dispute about the quality. This dispute could not be resolved, because the two

sides did not have an economic contract. In the end, the 55 tons of kitazin

50ND remained in the plant's storehouse until the end of 1986 even though

there was a great need for fungicide to support agriculture.

During the inspection conducted at the Vinh Thinh Chemicals Plant at the end

of 1986, the Zone 1 Quality Standards Center concluded that the 55.45 tons of

kitazin 50ND fungicide produced by the Vinh Thinh Chemicals Plant in 1986 was

12 to 22 percent below quality as compared with the stipulated norm (this is

without mentioning that the amount of raw materials was short by 4.33 tons).

That lot of fungicide was finally received by the Vegetation Protection

Department in February 1987. It then distributed this fungicide at a greatly

reduced price and gave consumers guidance on how to use it.

Clearly, the arbitrary work method and lack of a spirit of responsibility

mentioned above have led to reduced product quality and a waste of public

property and caused consumers to suffer losses.

11943

CSO: 4209/405

81
ECONOMIC VIETMM

DISTRICT, COOPERATIVES CRITICIZED FOR RESELLING FERTILIZER FOR PROFIT

Hanoi NHAN DAN in Vietnamese 1 Apr 87 p 2

[From Production to Consumption column by Nam An: »One-hundred Tons of

Chemical Fertilizer To 'Create a Budget"']

[Text] Phu Luong District made a proposal to the province and Bac Thai

Province naturally put the proposal to the central echelon, which was to

supplement the chemical fertilizer distribution norms. Who isn't striving to

ensure that rice yields are high and that the upland potato fields give high

yields so that, together with the entire country, we can solve the gram

problem?

Shortly after that, Phu Luong District obtained 100 tons of chemical

fertilizer. Everyone was happy about this. But unexpectedly, after obtaining

the fertilizer at the state's directed price of 5.6 dong per kg, the district

then sold it to the cooperatives for 20 dong per kg and used the profit to

»create a district budget." Seeing this, a number of cooperatives followed

suit. After purchasing the chemical fertilizer from the district, they sold it

to the farmers for 30 dong per kg in order to "create a budget." Thus, this

chemical fertilizer did not go directly to the rice fields or upland potato

fields. It was drawn out of the orbit of the plan to support agriculture and

the two-way economic contracts between the state and the farmers. Some of it

even fell into the hands of speculators.

A good turn is spread afar and so is a scandal. In a very short time, the Bac

Thai Province economic arbitrator found out about this. After looking into the

matter, he promptly forced the district to correct this and not sell things

this way anymore. The Provincial CPV Committee and the Provincial People's

Committee promptly directed Phu Luong District to review the matter and take

steps to prosecute this case. Fortunately, at that time, there were still 00

tons of chemical fertilizer in the storehouse that had not yet "slipped out.

Many consumers in the locality welcome the speedy and resolute action taken by

the economic arbitrator and the provincial leadership. At the same time, they

82
have criticized the cadres in the district for their lack of a spirit of

struggle in the face of the creation of these illegal budgets, which caused

confusion concerning economic management discipline and prices, which resulted

in materials being used for the wrong objectives, and which affected the

delivery of goods to the state based on the two-way contracts.

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83
ECONOMIC VIETNAM

IMPLEMENTATION OF UNIFORM PRICE FOR GRAIN ANNOUNCED

Ho Chi Minh City SAIGON GIAI PHONG in Vietnamese 15 Mar 87 p 1

[Article by "Q.V.": "Grain Sold at a Uniform Price Beginning in March 1987"]

[Text] During the second week of March 1987,the precincts and districts

simultaneously disseminated and implemented the selling of rice at a uniform

price throughout the city.

According to that mode of selling rice, all rice-selling locations

(neighborhood agencies, and selling locations for cadres, workers, and civil

servants) will sell ordinary rice at the uniform guaranteed commercial price

of 50 dong per kilogram, which is close to the market price of rice. The

Financial Service, the Municipal Bank, and the Grain Service have been

assigned responsibility for cooperating in implementing the system of rice

price supplements to salaries. The categories to receive price supplements

include cadres, workers, and civil servants, college and specialized middle

school students, and Assault Youth members; the categories covered by the

policy (cadres who are retired or disabled, disabled veterans, families of war

dead, and families with merit toward the revolution); dependents, and people

who receive aid because Of permanent difficulties. Those categories will

receive price differential payments due to the rice price adjustment which

will amount to 45.8 dong per kilogram (they will have to spend only 4.2

additional dong per kilogram). The March rice ration will remain what it has

been during the past several months.

If people covered by contracts (except for those who are regular employees of

the state) were provided rice ration booklets by the precinct or district

grain store, they will receive the same rice price differential payments as

cadres, workers, and civil servants. Since January 1987 small industryhandicrafts workers and peasants in specialized vegetable-growing areas have

been able to buy rice at state commercial prices and do not receive price

differential payments. In their case the price disparity payments are

included directly in the contracted price and the state purchase price.

Cadres, workers, and civil servants who for one reason or another have not

been able to buy their February rice ration may still purchase the February

ration at 17 dong per kilogram. If they do not purchase it they will receive

a price disparity payments of 45.8 dong per kilogram (including 12.8 dong

84
supplemented in accordance with the old rice price—17 dong—plus 33 dong,

which total3 45-8 dong).

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85
ECONOMIC VIETNAM

NEW MANAGEMENT MECHANISM CALLS FOR EQUALIZING PRICE OF RICE

Ho Chi Minh City SAIGON GIAI PHONG in Vietnamese 15 Mar 87 p 1

[Editorial: "New Management Mechanism Demands That Rice Be Sold at One

Price"]

[Text] During the past several months the cadres, workers, civil servants,

and families covered by the policy have purchased rice at the price of 17 dong

per kilogram, only one-third of the price for the same kind of rice on the

unorganized market. After buying rationed amounts of rice at "subsidy"

prices, many people do not use all of it but sell it on the "free" market. A

considerable quantity of state rice "flows" out to the market, which creates a

situation of buying and reselling and causes difficulties for management and

the transformation of the grain market. Since March of this year, the

implementation of a single rice price corresponding to the market price has

been beneficial in the following ways: first of all, after receiving price

differential payments the people need only buy as much rice as they need, and

do not have to purchase the full rationed amount, as in the past, because the

price was too low, and are not harmed (especially in the case of people whose

families send rice from rural areas or who are ill and use other kinds of

food). Therefore, with regard to grain management in society the grain sector

saves a certain amount of grain in distribution so that it can meet the other

needs (such as selling it on the market), in order to stabilize the price of

rice on the general market. Some people may be confused: there is inflation,

so after receiving price differential payments will they be able to buy a

sufficient amount? According to guidance by the municipal people's council,

the Municipal Grain Corporation guarantees that there will be sufficient rice

to sell the full monthly rations according to standards. In even that it is

necessary to adjust the price of rice upward, the price differential payments

made to the various categories will be increased to correspond to the adjusted

price of rice, thus ensuring that the people can buy rice in accordance with

the ration standard. With regard to small industry-handicrafts workers and

peasants in the specialized cultivation areas, no rice price differential

payments will be made but the contracted-out unit price and the state

purchase price will be increased.

Selling rice at a uniform price also has the benefits of reducing troublesome

paperwork for the people, facilitating the grain sector'simplementation of

accounting, and tightening grain management (in comparison to the time when

86
the same kind of rice was sold at many different prices), and also helps the

financial sector in making price differential payments to the various

categories who buy rice in rationed amounts.

Its greatest and most practical benefits, and also the core of the system of

adding rice price differential payments to salaries, are meeting the

requirement of changing over from the administrative-subsidy mangement

mechanism to socialist economic accounting and it is another factor helping

the state and the basic economic units to be able to correctly calculate

production costs and assess the production-commerical effectiveness of the

unit, a very important factor in encouraging the development of economic

activities.

The selling of rice at a unified price has only begun to be implemented, so

deficiencies are unavoidable. With a spirit of collective mastership in

social management, the people must cooperative with the relevatnt sectors in

inspecting, supervising, and assisting the grain and financial sectors so that

they can do a good job of carrying out that policy.

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87
VIETNAM ECONOMIC

DIRECTIVE ISSUED TO REGULATE DISPARITY IN PRICE OF RICE

Ho Chi Minh City SAIGON GIAI PHONG in Vietnamese 21 Mar 87 p 1

[Article by T.Q.T.: "Rice Price Differential Payments Based on Rations of

Each Cadre, Worker, or Civil Servant"]

[Text] The Municipal People's Committee has just issued a directive which

stipulated the selling of rice at a single price and rice price disparity

payments to cadres, workers, and civil servants.

The rice price disparity payments are based on the monthly ration standards of

the state that have been stipulated for each category. Each dependent and

each cadre, worker, or civil servant who experiences permanent difficulties,

people covered by policies, mambersamembers of the armed forces, etc., receive

supplements based on the ration standard of 10 kilograms per person per month.

Every quareter the Municipal Price Supplement Council, made up of the

Financial Service, the Grain Corporation, and the Price Commission, will

review the situation and recommend a rice price disparity supplement level for

approval by the Municipal People's Committee.

In March 1987 the rice price supplement is 45.80 dong per kilogram (50 dong

minus 4.20 dong).

The Municipal Pepple's Committee has directed the banking sector and the wards

and districts to carry out the payment of rice price supplements to cadres,

workers, and civil servants promptly and rapidly. With regard to people who

are retired or disabled, dependents, and people who receive allowances because

of permanent difficulties, all-out efforts must be made to make one

supplementary payment in cash.

So that cadres, workers, and civil servants can have money to buy rice in

March 1987, while awaiting the adjustment of paperwork, the Grain Corporation

and the Financial Service ahve advanced funds so that the rice can be

distributed to the various categories.

Because of the difficult grain situation, some places have stil not sold the

full rice ration for February 1987 to cadres, workers, and civil servants.

88
In such cases, the Municipal People's Committee has provided specific guidance

regarding two method sof resolution: selling the full amounts of the ration

at the price of 17 dong per kilogram, or making supplementary payments based

on the new rice price (45.80 dong per kilogram). The payment of rice price

supplements must be made very rapidly.

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89
ECONOMIC VIETNAM

HARVEST OF WINTER-SPRING RICE REPORTED NATIONWIDE

Hanoi HANOI DOMESTIC SERVICE in Vietnamese 11 May 87

[Summary] "The Statistic General Department reported that over

the past 10 days southern provinces harvested more than 680,000

hectares of winter-spring rice. Cuu Long, Kien Giang, Long An, An

Giang, and Ben Tre Provinces have basically completed their

harvest work. Generally speaking, southern provinces obtained a

better winter-spring rice productivity compared with last year.

The total output increased by 75,000-80,000 metric tons. An Giang

and Ben Tre exceeded their set plan norms."

In the northern provinces, winter-spring rice has grown ears and

harvest work is beginning. "According to an estimate by the

Statistics General Department, as of 5 May about 80,000 hectares

of winter-spring rice in the northern provinces had been

harvested, the remaining rice acreage was being seriously ravaged

by harmful insects. About 60-78 percent of the rice cultivated

area in Ha Nam Ninh, Thai Binh, and Hai Hung provinces were

damaged by the insects."

Although rains have come during the past several days, drought is

still prevalent in localities, and more than 190,000 hectares of

winter-spring rice are badly in need of water. To cope with this

situation, the electric power section should formulate a plan to

supply more electricity to sectors concerned to help them urgently

fight the drought.

At present both northern and southern provinces are concentrating

their efforts in planting the summar-fall rice and preparing land

for the early 10th-month rice. Southern provinces have plowed

land quicker than the corresponding period last year and have

sowed more than 200,000 hectares of rice seedlings.

"Over the past 10 days the planting of subsidiary food and

industrial crops were quicker than the corresponding period last

year. The nation has planted 460,000 hectares of subsidiary food

crops or 24 percent over the same period last year and has

90
planted 133,000 hectares of industrial crops or 11.7 percent more

than last year."

Localities are urged to prepare better rice varieties to obtain

bumper rice crops, while paying attention to eradicate harmful

insects to ensure an increase in agricultural production output.

1189/13104

CSO: 4200/565

91
VIETNAM

ECONOMIC

PRECINCT AGENCY ENCOURAGES FOREIGN REMITTANCES

Ho Chi Minh City SAIGON GIAI PHONG in Vietnamese 24 Mar 87 p 1

[Article by T.Q.T.: "Precinct 5 Raw Materials Procurement Agency Rapidly

Transferring Foreign Exchange, Equipment, and Machinery Sent By Vietnamese

Living Abroad to Relatives in Vietnam"]

[Text] Since the beginning of the year thousands of Vietnamese living abroad

have sent foreign exchange, materials, raw materials, equipment, and machinery

to relatives via the Precinct 5 Raw Materials Procurement Agency. With regard

to foreign exchange, the agency imported thousands of tons of materials and

raw materials of all kinds and brought them into production, including bOO

tons of PP and PVC plastic, 48 tons of "ambavit" (to serve animal husbandry

and produce growth hormones), more than 50 tons of chemicals, and materials

for the printing sector. The agency has also imported 104 industrial sewing

machines, along with spare parts and equipment, to set up the Precinct 5

Export Clothing Enterprise.

The reason why the Precinct 5 Raw Materials Procurement Agency has the

confidence of its customers is that it quickly pays Vietnamese money to people

receiving foreign exchange and has set up agencies in a number of countries to

help Vietnamese living abroad to transfer money electronically (by telex) to

their relative which is many times faster than sending money by mail.

Furthermore, by means of the agency network the organization purchases

machinery and equipment for the production units and helps Vietnamese living

abroad to send machinery to their relatives in Vietnam in foreign ships which

carry cargo for the Precinct 5 Raw Materials Agency.

The agency also coordinates with the Fatherland Front and the precinct Small

Industry-Hanidcrafts Enterprise Federation in encouraging families with

sources of money and goods to organize production in accordance with Decision

34.

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92
ECONOMIC VIETNAM

TAX COLLECTION STATIONS ON ROADS ELIMINATED

Ho Chi Minh City SAIGON GIAI PHONG in Vietnamese 25 Mar 87 p 1

[Text] Implementing Decision 30-CT of the Chairman of the Council of

Ministers on eliminating the control stations on roads, the Central

Industrial-Commercial Tax Department has issued a guidance document to the tax

branches and offices in the provinces and districts to eliminate inspections

and tax collection stations on roads and at transportation centers, and to

collect taxes one time, at the source. If at a selling location tax cadres

carry out an Inspection and find that the merchant has no receipts, the tax

evader must pay a fine and pay the taxes.

The tax cadres who previously worked at the joint inspection stations on the

roads will be sent to the basic level so that they Can closely monitor

activities and cooperate closely with the market management committees and the

masses in uncovering and promptly prosecuting black marketers.

The tax sectors of the provinces and municipalities must also change their

forms of tax collection to contribute to encouraging the circulation of

agricultural products and foodstuffs and reduce the imbalance between supply

and demand in all areas.

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93
VIETNAM

ECONOMIC

INCORRECT ECONOMIC VIEWPOINTS CRITICIZED

Ho Chi Minh City SAIGON GIAI PHONG in Vietnamese 27 Mar 87 p 1

[»Speak Frankly, Speak the Truth» column: "Incorrect Economic Viewpoints

Create Many Serious Consequences"]

[Text] The party, the state, and the people realize that because of

sluggishness in economic thought our country's economy has not developed as

desired.

Decision 34 of the Municipal People's Committee has created impetus for the

development of small industry in the city.

But there are other trades—such as fishing and maritime products—which have

not received attention although they greatly benefit the state.

The raising of maritime products has been developed only during the past

several yea'rs and the area harvested is small. The catching of aquatic and

maritime products has always been a great source of profit. But why has

fishing developed in some places but not in others, and the living standard of

the fishermen is too high in some places and too low in other places, so they

must go elsewhere to earn a living or change trades, even though their new

trade is not appropriate to their capabilities.

Are those disparities due to the influences of unproductive land and seas?

Duven Hai and Vung Tau-Con Dao are only a river mouth apart. The sea oil

Duyen Hai is very productive and export shrimp are caught there the year

around. However, some Duyen Hai fishermen who have changed over to the

shrimping trade have to operate out of Vung Tau, even though they ply their

trade off Duyen Hai. Seldom do Duyen Hai fishermen work near Vung Tau. That

is because the state purchasing of shrimp and fish in Duyen Hai is

bureaucratic, prices are not fair, and money is not paidpromptly. State

purchasing cadres sometimes do not pay fishermen who sell shrimp until amonth

later.

The price paid by the Export-Import Supply Corporation of Duyen Hai District

is low, and when the shrimp is resold to private merchants each order is 10

percent or short. Thus the fishermen of Duyen Hai are greatly harmed.

94
Every day the workers who come to the plant to shell shrimp are given small

shrimp which are difficult to shell, while large shrimps are reserved for the

plant's personnel.

Ater shelling the shrimp the workers are given coupons instead of being paid

money right away (each person is paid 100 dong or less), and are not paid

until 5 to 7 days later. People who are hard-up for money and must sell the

shrimp coupons lose 10 percent. But they must sell them because "what the

hands make the jaws chew." If they did not sell them they could not live.

That is the pathetic life of the fishermen. Who bought those coupons? The

employees of the Frozen Food Corporation.

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95
ECONOMIC V

1

*

WAYS TO INCREASE PRODUCTION OF CORN SILK CARPETS DISCUSSED

Hanoi NHAN DAN in Vietnamese 25 Mar 87 p 2

[Article by Ann Long: "Export Goods Program: Capabilities for Increasing the

Volume of Production of Corn Silk Carpets for Export"]

[Text] Corn silk carpet goods are expanding. If the export value in 1983 is

set at 100 percent, the value in 1984 was 120 percent, that in 1985 was 169

percent, and the 1986 value was 281 percent (32 percent above the planned

target). Much progress has been made in organizing the production, purchase,

and export of corn silk carpets. The units that have had a high volume of

production include Hai Hung, 180,000 square meters, Vinh Phu, 120,000 square

meters, Ha Bac, 138,000 square meters, and Hanoi, 334,000 square meters. In

implementing the 1987 plan, to date, many localities such as Vinh Phu, Ha Bac,

and Thanh Hoa have signed production contracts for quantities equal to 150-200

percent as compared with the amounts produced last year. The General

Corporation for Export-Import of Handicrafts and Art Objects, Ministry of

Foreign Trade, has signed contracts to export more than 2.5 million square

meters of corn silk carpets, which is equal to 260 percent as compared with

1986.

However, the increases mentioned above are still insufficient to satisfy

market demand. Recently, the general corporation had to export hundreds of

thousands of square meters of rush carpets to foreign customers in place of

corn silk carpets based on the contracts already signed. And it still owed

almost 100,000 square meters, which must be sent this year.

Could it be that the volume of production of this type of good cannot be

expanded quickly? The director of the Hai Hung Rattan and Corn Corporation,

which is one of the five main units and which exceeded the contract signed

with the General Corporation for Export-Import of Handicrafts and Art Objects

by 20 percent in 1986, said that each year, Hai Hung plants [illegible] to

5,000 hectares of corn. Each hectare yields 0.5 tons of com silk. Thus, the

entire province produces more than 2,000 tons (on the average). This amount of

corn silk is sufficient to produce 700,000 square meters of carpet (last year,

the entire country produced only about 1 million square meters).

Corn grows well throughout the country. Counting only half of the provinces

and cities, such as Hai Hung, that have production capabilities, more than

96
40,000 tons of corn silk can be harvested each year. If half of this is used

as a raw material, the approximately 7,000 laborers can produce 5 million

square meters of corn silk carpets for export. At today's prices, this would

bring in 10 million dong in foreign currency. But there are only five

localities that make full use of the corn silk to make carpets. Many

districts, villages, and cooperatives in places that grow much corn have not

given attention to obtaining and processing this type of material. The

collection of the corn silk is usually done in a spontaneous and unorganized

manner, and incomes are low. As a result, results are very limited. Each corn

season, tens of thousands of tons of corn silk are burned in stoves. This is

the case even though many production installations with good skills lack raw

materials to produce corn silk carpets. Because of the lack of organization

and guidance, corn silk twinning and carpet making have not expanded even

though this is quite simple.

There is also a serious shortage of secondary materials for the production

installations. This includes ink, jute fiber, and sulphur. Only 20-30 percent

of the amounts needed are being supplied, and the materials are not supplied

on time. Because of the lack of sulphur to dry the materials, production

installations in Thuan Thanh District, Ha Bac Province, had to throw away 18

of the 20 tons of corn silk because of mildew. Some localities that grow jute

deliver 100 tons of jute every year. The local installations that produce corn

silk carpets for export ask to purchase only 2 tons of jute for use in making

corn carpets but they are refused.

The policies on those who make corn silk carpets are irrational. This is the

main obstacle. In Hai Hung, in order to produce 1 square meter of common corn

carpeting, producers must spend 100 dong to buy corn twine and 10 dong to

purchase sulphur and jute fiber. They can sell the carpet for 150 dong, which

gives them a profit of 40 dong. But that does not include taxes, management

expenses, insurance premiums, or wages paid to laborers. Similarly, in Ha Son

Binh, the "profit" of 47 dong does not take into account the wages that must

be paid for the 2.5 days worked and other expenses. Subsidy goods sold to the

production installations by the general corporation in accord with the

stipulations on foreign currency use rights sometimes fail to reach the

producers. Or if they do arrive, they are not in accord with the real

situation because of rising prices. In general, today's prices do not cover

expenditures or allow the reproduction of the working strength of those who

make corn silk carpets for export.

Recently, with a thorough understanding of the spirit of the resolution of the

Sixth Party Congress, in order to suport the export program, the general

corporation met with the foreign trade corporations in the northern provinces,

a number of districts, and a number of cooperatives that make corn silk

carpets for export. Those at the meeting unanimously agreed to expand the

production of corn silk carpets. Many specific measures have been put forth,

and a number of proposals have been submitted to the party and state:

First, the districts should be helped to formulate plans and organize the

collection of corn silk to make export carpets. A rational wage must be paid,

or essential goods such as paper, pens, cloth, and clothing can be exchanged

in order to encourage the production installations to make full use of the

97
working strength (including that at the schools) to do this work. Use must be

made of the experiences of a number of places such as Hai Hung. Specialized

units consisting of 50 to 100 people must be organized in the agricultural

cooperatives, or specialized cooperatives of approximately 300 to 500 people

can be organized in places with large sources of corn silk. The production of

corn silk carpets must be expanded in the southern provinces having large

quantities of raw materials. They must strive to produce 500,000 square meters

of corn silk carpets this year.

Second, ties between places with skills and places with raw materials must be

expanded. For example, Hanoi initially invested capital, employed techniques,

and expanded the production of corn silk carpets in districts that grew much

corn, such as Dong Ann, Gia Lam, Dan Phuong, and Hoai Due. As a result, its

volume of production of export corn silk carpets was always the highest of any

province or city in the country.

Third, the general corporation must be responsible for providing adequate

quantities of and advancing secondary materials such as dyes, sulphur, jute

yarn, and rushes to the production installations. Shortages of these items

must not be allowed to block production. At the same time, studies must be

done to find substitute materials that meet the technical requirements.

Fourth, the purchase price of carpets must be recalculated in accord with the

principle of covering rational production expenses based on current prices and

ensuring that the producers make a profit in order to reproduce the working

strength. The sale of aid goods must be organized well and controlled in a

timely manner (based on foreign currency remittances) in order to ensure that

things reach the producers and people who gather raw materials based on the

policies stipulated.

Fifth, more money must be invested in improving technology, such as providing

packing machines to the localities with much corn silk in order to facilitate

transporting the raw materials to the installations that make carpets. Studies

must be done on manufacturing corn carpet roving frames in order to_increase

labor productivity. Investments must be made in purchasing or devising small

jute fiber roving machines or manual means in order to overcome the present

serious shortage of jute yarn. Control over the production process must be

strengthened. Studies must be done and the patterns must be improved in order

to improve product quality.

Sixth, the localities must be entrusted with the task of exporting this item

to socialist countries.

Seventh, the finance sector should improve the tax collection system. The

banking sector should create favorable conditions for making loans and drawing

cash. The localities must eliminate the obstacles and problems in circulation

and coordinate the production of this type of good.

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98
ECONOMIC VIETNAM

ACTIVITIES OF CITY ECONOMIC ARBITRATION UNITS DISCUSSED

Hanoi NHAN DAN in Vietnamese 2 Apr 87 p 1

[Unattributed report: "Ho Chi Minh City, Hanoi, and Haiphong Economic

Arbitration Sectors Expand Activities To Help the Production Installations

Implement the Economic Contracts Well"]

[Text] Along with putting forth a number of new measures in accord with the

special characteristics and capabilities of the localities in order to step up

production, implement the three economic programs, and expand commodity

circulation, Ho Chi Minh City, Hanoi, and Haiphong have given attention to

manifesting the role of the economic arbitration units in managerial and

juridical activities with the aim of helping the production and business

installations fulfill the economic contracts well.

These three cities now have an economic arbitration system from the city to

the wards and districts. They have formed a network of of cadres to manage the

economic contracts in almost all the primary-level state-operated units,

cooperatives, subwards, and villages. Using many forms and methods of

operation, the economic arbitrators of the three cities have begun

implementing the motto of using education and prevention with the aim of

improving the units' concept of obeying the laws on economic contracts and

actively preventing shortcomings and violations stemming from complacency. At

the same time, the economic arbitrators in the three cities are striving to

implement an inspection and control routine, resolve the disputes, prosecute

violations of the contracts, and promptly undo the snarls in economic

relationships for the production installations.

Violations of the economic contracts in the three cities have been adjudicated

and the violators have been forced to repay hundreds of millions of dong in

misappropriated capital and hundreds of thousands of dong in foreign currency

in order to guarantee the foreign currency use rights of units with export

goods. Fines totaling tens of thousands of dong have been levied, and the

units that have caused losses for other units as a result of violating the

economic contracts have been forced to pay millions of dong in compensation in

order to protect socialist property and the interests of the units involved in

economic relationships and maintain socialist law and discipline in production

and business.

99
On 1 April 1987, the key economic arbitration leaders in the three oities

organized a meeting to exchange experiences. The meeting was attended by the

state economic arbitration chairman. Those at the meeting discussed the

organization and implementation of the managerial and juridicial activities in

the sphere of economic contracts and economic arbitration in order to help

each other manifest the good points, overcome the weaknesses, and evaluate the

results of the emulation pledges among the economic arbitration units of the

three cities in 1986. Those attending the conference unanimously agreed that

the Ho Chi Minh City economic arbitration unit was the leading emulation unit

in 1986. At the same time, those at the conference put forth a number of

specific norms and measures in order to emulate and strive to do an even

better job in 1987 and become a legal tool of the state in guiding economic

management.

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100
ECONOMIC VIETNAM

DAC LAC ABOLISHES CHECKPOINTS, PRICES DROP

Hanoi NHAN DAN in Vietnamese 3 Apr 87 p 1

[Unattributed report: "Dae Lac: Since Abolishing the Checkpoints, the Price

of a Number of Consumer Goods Has Dropped"]

[Text] Since the inter- and intra-provincial commodity circulation checkpoints

were abolished, the cadres and people have been very enthusiastic, because

travel by bus to other provinces and within Dae Lac Province is more relaxed

than before. The time it takes to travel from Dae Lac to the lowland provinces

has been cut in half. At the Dae Lac market, the price of a number of

essential consumer goods such as ocean fish, fish sauce, soap, sugar, MSG,

cigarettes, and noodles has dropped 30-50 percent as compared with before the

checkpoints were abolished. Prior to 20 March, the price of frozen mackerel

was 700 dong per kg. The price has now dropped to 350 dong per kg. The price

of state-produced Da Lat cigarettes has dropped from 90 dong per pack to 60

dong per pack. The commercial stores now sell MSG for 1,500 dong per kg, but

it can be purchased on the free market for 1,240 dong per kg.

In order to oppose tax evasion with respect to industrial and commercial taxes

and combat speculation, smuggling, and illegal business activities, the Dae

Lac provincial People's Committee has stipulated a number of positive measures

such as solidifying and perfecting the market reform and management boards of

the province, districts, and cities. These boards have been strengthened with

capable cadres of good moral quality. These cadres will carry out tasks in

various locations. Also, the people have been encouraged to participate

actively in opposing speculation, smuggling, and illegal business activities.

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VIETNAM ECONOMIC viciHiui

REASONS FOR DECLINE OF CARPET WEAVING IN HANOI DISCUSSED

Hanoi NHAN DAN in Vietnamese 3 Apr 87 p 2

[Article by Hoang Quan, Thai Ha Carpet Corporation, Hanoi: "Why Has Carpet

Weaving in Hanoi Declined?"]

[Text] Hanoi is well known for weaving carpets for export. Jhe first

installation was the Dong Da Cooperative in Dong Da Ward. In 1973, the Thai Ha

Export Carpet Corporation was establsihed and made solely responsible for

business activities involving carpet goods (woolen, jute, and rush carpets,

straw mats, corn silk carpets, jute gunny sacks). With suitable forms of

production and business organization (contract ordering woolen, semiwoolen,

and jute carpets and purchasing corn silk carpets), the corporation developed

the carpet industry in both the urban area and the suburbs. It had more than

100 production installations and approximately 15,000 laborers (of which 6,000

were specialists). The year 1985 was its peak year.

Prior to that, it had always made progress. But in 1986, it slipped back. The

value of production was only 70 percent of the planned norm. In 19Ö7, the

corporation is making a great effort, but the planned figures are still low.

They are only about one-half of the production capacity of the city's carpet

sector. Some cooperatives have accepted plans for 50,000 square meters. But

the production installations have the capacity to produce much more than that

if they are supplied with enough materials and raw materials. The fact that

the industry is "suffering difficulties" is quite evident: from a peak of

6,000 cooperative members who specialized in weaving carpets, there are now

only 2,000.

Changes in Markets and Plans

Prior to 1982, foreign customers were very fond of jute carpets. This type of

good was Hanoi's speciality. Hanoi concentrated its investments on purchasing

equipment and training people. In 1983, other provinces began concentrating on

this type of good, but they did not follow a unified plan and so Quality

declined and the trust of the customers was lost. The corporation and the Dong

Vinh Cooperative in Dong Da Ward took steps to improve the quality and art

work. Those in the business referred to these as Ba Dinh carpets. The trust of

people was restored to a degree.

102
Then came the turn of just carpets, which were woven of small fibers by

machine and which were referred to as Long Bien carpets. Customers ordered

large quantities of these carpets. But this type of good was not the

speciality of the Hanoi carpet sector. The workers were not used to making

this type of carpet, labor productivity was low, and the excellent workers

could weave only 8 square meters of Long Bien carpet per month (they could

weave up to 30 square meters of Ba Dinh carpet). An even greater difficulty

was that all the equipment (looms, wire healds, and so on) had to be replaced.

This was very expensive, and many of the production installations couldn't do

this. A number of the installations had to shut down, and the carpet weavers

had to find other jobs. This included the Tam Hiep Cooperative in Thanh Tri

District and the La Phu Cooperative in Hoai Due District. Other installations

such as the Tin Thanh and Co Do cooperatives in Dong Da Ward could produce

only small amounts. They agreed to weave 5-7,000 square meters but actually

wove only 500 square meters.

Replacing almost all the equipment and improving the skills of the weavers in

order to increase labor productivity and the output of Long bien carpets was a

very expensive measure for all concerned, from the production installations to

the Thai Ha Carpet Corporation. This is the main cause of the deterioration of

the Hanoi carpet industry.

Lack of Synchronization in Managing the Plans, Delays in Changing the Economic

Policies

The management system charts for the Hanoi carpet sector are rather cumbersome

and unwieldy. There are six or seven types of goods under the control of two

ministries. The Ministry of Foreign Trade is responsible for rush and corn

silk carpets and door mats. The Ministry of Light Industry has been

responsible for woolen and jute carpets since 1985. The Thai Ha Carpet

Corporation maintains a relationship with these two ministries through the

Hanoi Federation of Export-Import Enterprises. As for the carpet goods managed

by the Ministry of Light Industry, with the exception of woolen carpets and

Long Bien jute carpets, the 1986 planned norms for Ba Dinh carpets are not in

balance with respect to raw materials. The ministry is requiring the

corporation to "provide its own raw materials" and given it permission to

"purchase goods based on the high price." At times, the localities have

reserved jute thread for export to obtain foreign currency and so the

corporation has been able to obtain only enough raw materials to weave 50,000

square meters of carpet, a very small figure. Sources of raw materials for

producing corn silk carpets are also very unstable, because there is work only

if there is a good corn harvest and purchases are made actively.

Prices have fluctuated greatly. The price of raw materials has increased

rapidly, but the price of the goods has increased slowly. In 1985 and 1986,

the price of rush and corn silk carpets (controlled by the Ministry of Foreign

Trade) quadrupled. The price of other primary goods (controlled by the

Ministry of Light Industry) doubled. Also, accounts are paid late (to date,

the jute carpet cooperatives have not been paid the 1985 export bonus).

Finally, production has declined. Some types of goods have lost money. The

carpet weavers work hard, but their incomes are low.

103
In the suburbs, the weaving of woolen carpets is done at the agricultural

cooperatives. There are difficulties in dividing things between the

agricultural Reduction and handicrafts sectors. In some places, agricultural

Sborers are paid 38 dong per man-day while carpet weavers earn only 20 dong.

Weavers h^e abandoned their looms to work in other sectors, such as grxnding

talc, making glue, and making noodles.

Resolving the Difficulties and Changing Management

The public expects the Hanoi export carpet sector to make timely changes.

Specifically:

Management refers to making innovations. The planned norms must be f^^f

by the ministries responsible by balancing the raw materials and supplying

convertible commodities (with primary goods).

Th- Price policies (price of raw mm—«als, product purchase prices

SanspÖ^taÄon charges, and other expenses) and the policies on sharln^the

nrofIts in foreign currency must be changed promptly in a way that will ensure

?hat productiof and business make a profit in order to have expanded

reproductLn and provide the laborers with an adequate income ^^«vS

in which a number of other organizations come to the carpet weaving

instillations in order to purchase goods at high prices using exports or other

goods must be stopped.

Adquate attention must be given to the social position of the carpet weavers.

The grade of the workers in this sector must be studied and set. It must be

recognized that collective handicraft workers are an element of society in

expanding the participation of the working class. The highly skilled workers

aSartifans in the carpet sector must be given the proper amount of attention

and paid suitable compensation.

The situation in which the same few patterns and designs are used over and

over again for years must be overcome by organizing things and encouraging the

creatSn of nel patters and designs in accord with the preferences of the

customers.

11943

CSO; 4209/M09

104
ECONOMIC VIETNAM

PHU KHANH IMPLEMENTS ECONOMIC PROGRAMS, RESOLUTION

Hanoi HANOI DOMESTIC SERVICE in Vietnamese 12 May 87

[Statement by Vo Hoa, Chairman of the Phu Khanh Provincial

People's Committee on implementation of the Party Central

Committee resolutions; date not given—recorded]

[Summary] Since the liberation of South Vietnam, Phu Khanh

Province, a province with great economic potential, has made

great efforts in developing its economic, cultural, and social

domains. The following is a statement by Comrade Vo Hoa on Phu

Khanh's objectives and measures to implement the three major

economic programs and the Party Central Committee's second plenum

resolution.

[Begin Vo Hao recording] Compared with 12 years ago Phu Khanh

Province has improved considerably in the economic, cultural, and

social domains. We have surged forward from a province

insufficient in food to a self-reliant locality which can provide

grain procurement. Along with accelerating agricultural

development, Phu Khanh has rapidly developed the small industry

and handicraft sector while restoring many other branches and

occupations, including some traditional production establishments

to increase the volume of consumer and export goods.

Dealing with measures to implement the three major economic

progrmam, Vo Hao said:

[Begin recording] "Regarding the grain and foodstuffs program*

our objective is to strive to produce 650,000 metric tons of

grain converted to paddy equivalent by the year 1990, that is on

the average, Phu Khanh must strive to increase Its grain

production output by 50,000 metric tons annually. We are

continuing to apply intensive cultivation and strive to increase

area for subsidiary food crops by 20 percent." We are also

striving to improve and develop livestock raising and fishery.

"Regarding the production of consumer goods program, our objective

is to strive to increase the production value Of industrial,

small industrial, and handicraft products by 22 percent annually,

105
especially the production of traditional goods using local

materials." We have also cooperated with adjacent provinces to

integrate more capital to rapidly improve consumer goods

quantitatively and qualitatively in order to produce diversified

commodities to meet demands of people in the region.

"Regarding the production of export goods, our target is to

obtain an export goods value of 50 million rubles and dollars by

the year 1990. For us, this is the most difficult target to

obtain and it is essential for us to take our most concrete

measures to fulfill this task." [end recording]

Dealing with measures to make the resolution of the Party Central

Committee Second Plenum a reality so as to contribute to the

stabilization of the nation's socioeconomic situation, Comrade Vo

Hoa said:

[Begin recording] "Carrying out the resolution of the Party

Central Committee Second Plenum, Sixth Term, at a time when we

are preliminarily summing up our achievements in the 1st Quarter

of 1987, and in implementing the spirit and letters of this

resolution —on the direction of eliminating bureaucratic

centralism and state subsidies and shifting economic activities

to socialist business accounting in accordance with the principle

of democratic centralism to make the whole system of production

and circulation function in compliance with the objective law to

quickly increase social products--Phu Khanh Province has

strengthened its guidance apparatuses of the standing bodies of

the provincial party and people's committees as well as those of

the financial, banking, prices, and planning sectors. These

tasks are aimed at integrating efforts and formulating plans to

solve pressing problems on distribution and the circulation

of goods. We are working closely with production establishments

to review various projects on good production, labor, and wages to

carry out tasks effectively in order to help enterprises achieve

a correct and accurate calculation for stabilizing production to

gain profit, fulfill obligation toward the state, and increase

the income of workers, thereby contributing to reducing the

budget deficit, preventing price increases, and reducing

difficulties in the worker's daily life."

The implemention of the Party Central Committee's Second Plenum

resolution by Phu Khanh Province is still incomplete, yet its

achievements in the 1st Quarter of 1987 indicated that progress

has been made in the production of grain and foodstuffs, consumer

goods, and export goods. [end recording]

1243/13104

CSO: 4200/565

106
ECONOMIC VIETNAM

NGUYEN THANH BINH URGES MORE MARKET GARDENING

Hanoi HANOI DOMESTIC SERVICE in Vietnamese 13 May 87

[Text] Nguyen Thanh Binh, politburo member of the CPV Central

Committee and Secretary of the Hanoi Party Committee, has called

upon the farmers and state employees on the outskirts of the

capital to promote their market gardening in order to supply more

food for the city and improve their living standard and the

ecosystem.

Addressing a conference held here recently to discuss measures

for the development of market gardening, Nguyen Thanh Binh said:

"Household economy in general and market gardening in particular

have played a very important role in supplying food and foodstuffs

for the people's daily life. They represent about 60-70 per cent

of the total income of each peasant family.

"An age-old occupation in Vietnam, horticulture has brought large

incomes to many families. Household economy including the vac

system (garden-pond-pigsty) has long been a complete ecosystem

which brings high economic profits while protecting the

environment.

"Our farmers have accumulated a wealth of exper ences in this

field and many cooperatives in the suburban areas of Hanoi have

thrived thanks to gardening. The Da Ton Co-op for instance, has

been able to give a free lunch to the 300 children of the creche.

"However, market gardening should be undertaken in the context of

a simultaneous development of all economic sectors, state,

collective and family, for which the state run sector must play

the key role.

"Our party has issued a policy to encourage household economy

aimed at tapping the great potentials in manpower and land

resources, in raw materials and capital in order to boost

production, improve the people's living conditions and continually

increase social products".

8358/13104

CS0: 4200/565 107
ECONOMIC VIETNAM

BRIEFS

HANOI ROUNDUP OF CSSR ECONOMIC GROUP'S ACTIVITIES--After a visit

to Vietnam to attend the eighth session of the SRV-CSSR Commission

for Economic, Scientific, and Technical Cooperation, the

Czechoslovak economic delegation led by Comrade Rudolf Rohlicek

left Hanoi on 10 May. Seeing the delegation off were Comrades

Tran Duoc Luong, Mai Tri, and other members of the Vietnamese

Government economic delegation and representatives of the Ministry

of Foreign Affairs. Czechoslovak ambassador to the SRV, Miroslav

Kapoun, and cadres of the CSSR Embassy were also present. Before

leaving Hanoi, the CSSR delegation was received by and held

cordial talks with Comrade Do Muoi, member of the Political

Bureau and Secretary of the CPV Central Committee. During its

stay in Vietnam, the delegation paid a tribute to President Ho

Chi Minh at his mauseleum and visited his home and office. The

delegation also visited a number of economic and cultural

establishments in Hanoi and Ho Chi Minh City and met and worked

with officials of some ministries and sectors concerned. The Ho

Chi Minh City People's Committee received and hosted a dinner for

the Czechoslovak delegation. [Text] [Hanoi HANOI DOMESTIC

SERVICE in Vietnamese 10 May 87] 8405/13104

SRV-USSR ECONOMIC SYMPOSIUM HELD AT HANOI C0LLEGE--A

Vietnamese-Soviet symposium on economic issues during the

transitional period toward socialism has been held at the Hanoi

College of National Economics. Nearly (number indistinct)

research papers, products of the cooperation between the Hanoi

College of National Economics and the Moscow Plekhanov Institute

of National Economy, were delivered at the symposium. They dealt

with the politico-economic issues, the struggle between the two

ways —socialism and capitalism—in the economic field, the

national economic planning in the transitional period, experiences

in developing agriculture and industry, and new economic policies

in the Soviet Union and Vietnam. [Text] [Hanoi HANOI DOMESTIC

SERVICE in Vietnamese 14 May 87] 8405/13104

CSO: 4200/565

108
SOCIAL VIETNAM

LAWS GOVERNING MARRIAGES, FAMILIES PUBLISHED

Hanoi NHAN DAN in Vietnamese 9 Jan 87 p 3

[Text of Law: "Lay on Marriage and the Family"]

[Text] The family is a cell of society. One must have good families to have

a good society and once the society is good the families become better.

In the socialist family husband and wife are equal, they are loving and help

each other progress: they actively participate in the building of socialism

and the protection of the fatherland; and together they raise their children

to become useful citizens of society.

Inheriting and expanding upon the Law on Marriage and the Family of 1959, the

new law will, in order to continue building and consolidating the socialist

family, maintain and promote the fine customs and practices of our people,

eliminate the backward customs and remnants of the feudalistic marriage and

family systems, and fight against the influences of the bourgeois marriage

and family system; based on Articles 64 and 75 of the Constitution of the

Socialist Republic of Vietnam the following law stipulates our marriage and

family system.

Chapter I

General Provisions

Article 1. The state guarantees the implementation of a marriage system which

is voluntary, progressive, monogamous, with equality between husband and wife,

aimed at the building of a democratic, peaceful, happy, and lasting family.

Marriages between Vietnamese citizens belonging to different nationalities, to

different religions, and between a religious and non-religious persons are

respected and protected.

Article 2. A couple has the duty to produce children in accordance with a

plan.

The parents have the duty to raise and teach the children to turn them into

useful citizens of society.

109
The children have the duty or respecting, taking care of, and nursing the parents.

Article 3. The state and the society protect the mothers and the children,

helping the mothers to fulfill well their noble role as mothers.

Article 4. Early marriage, forced marriage, obstruction of voluntary and

progressive marriage, and demands for dowry in marriage are expressly forbidden;

forced divorce is likewise forbidden.

It is expressly forbidden that currently married persons enter into a new

marriage or a common law marriage with a third person.

It is expressly forbidden to mistreat or physically abuse one's parents, spouse,

or children.

Chapter II

Marriage

Article 5. Only males of 20 years of age or more and females of 18 years of age

or above are allowed to marry.

Article 6. A marriage in an act of voluntary decision by a man and a woman

with no coercion on either side, nor can it be forced or impeded by anyone else.

Article 7. Marriage is forbidden in the following situations:

a) When one already has a spouse;

b) When one is mentally ill and unable to know what one is doing; or when one

has venereal disease;

c) Between directly related blood kin; between siblings of the same parents or

siblings sharing one parent; and between people other than the above as long

as they are related within the scope of three generations;

d) Between a foster parent and an adopted child.

Article 8. The act of marriage must be recognized by the people's committee

of the village, subward, or township in the place of residence of one of the

two marriage partners and it must be recorded in the marriage register as

stipulated by the state.

The marriage among Vietnamese nationals abroad is to be recognized by the

diplomatic representative office of the Socialist Republic of Vietnam.

All other marriage rituals have no legal value.

Article'9. An act of marriage which violates one of the stipulations found in

Articles 5, 6, or 7 of this law is considered illegal.

When one or both parties to a marriage is married illegally, the spouse or

children of the already married party, the People's Control Organ, the

Vietnam Women's Union, the Ho Chi Minh Communist Youth Union °^fhe Vietnam

Trade Union can request that the people's courts annul the illegal marriage.

110
The property of the partners in an annulled marriage is taken care of in

accordance with the following principle: the personal property of each

partner goes with him or her; the common property is divided up on the basis

of the relative contribution of each side; the legitimate rights of the party

cheated or forced into the marriage are to be protected.

The rights of the children involved are to be taken care of as in the case of

divorced parents.

Chapter III

Obligations and Rights of a Spouse

Article 10. A husband or wife has equal rights and obligations in all aspects

within the family.

Article 11. Spouses have the obligation of remaining faithful to each other,

of loving, respecting taking care of each other, helping each other progress,

and of implementing planned parenthood together.

The husband has the duty to create the conditions necessary for the wife to

realize well her function as mother.

Article 12. Spouses have the right to choose a legitimate profession, to

participate in political, economic, cultural, and social activities.

Article 13. The residence of the married couple is up to them, without their

being bound by customs or social habits.

Article 14. The common property of the married couple is made up of the property

created by the spouses themselves, of their occupational income as well as

of other legal income during their marriage, and of the inherited property

that they receive together or are given together.

Article 15. The common property is used to take care of common requirements

of the family.

The spouses have equal rights and obligations when it comes to this common

property. Any sale or purchase, exchange, giving away, borrowing, or renting

or any other transaction relating to the common property and involving a sizeable

value must have the agreement of both spouses.

Article 16. In the case of property belonging to the husband or wife before

their marriage, of property inherited individually or given to only one of the

two partners during their marriage, the owner of that property has the right

to incorporate that property into common property or retain it as

individual property.

Article 17. When one of the partners dies, if there is the need to divide up

the common property it should be divided into two. The personal property of the

deceased is to be divided in accordance with the stipulations of the law

regarding inheritance.

Ill
The wife or husband has the right to inherit the deceased spouse's property.

Article 18. While the marriage is in force, should there be a request by one

of the spouses for a legitimate reason, the common property of the spouses can

be divided up in accordance with Article 42 of this Law.

Chapter IV

Obligations and Rights of the Parents and Children

Article 19. The parents have the obligation to love, raise, and educate their

children, to take care of their training and the healthy development of the

children from the point of view of their physical, intellectual, and moral

growth. The parents must be good examples for the children in every aspect

and coordinate closely with the school and other social organizations to

educate their children.

Article 20. The parents have to take care of grown up children who are not

ablebodied.

Article 21. The children have equal obligations and rights in the family.

They are to respect, to take care of, and to feed their parents, and listen

to the parents advice.

Article 22, Grown up children who live together with their parents have the

right to choose their profession, to participate in political, economic, cultural,

and social activities.

Article 23. The children are entitled to their own property.

The children 16 years old and above who live with their parents have the

duty to take care of the common life in the family, and if they have their own

income they are to contribute to the needs of the family.

Article 24. The parents represent their minor children in legal matters.

The parents are in charge of managing the property of minor children.

Article 25. The parents are responsible for paying for any damage incurred

through the illegal acts of minor children under 16. In case the parents are

unable to do so, should the child in question have his her own property that

property can be used to pay for the damage. Minor children above 16 years

are responsible for paying with their own property for any damaged caused

through their violations of the law. Should they have no property of their

own, the parents would have to pay for it.

Article 26. Should a parent be judged to have physically abused

the dignity of a minor child, to be seriously cruel to or to have tortured a

minor, the people's courts can decide not to give him/her custody of the

child, not to let him/her educate the child, manage the latter's property,

or represent the latter during a period from 1 to 5 years. In the case of those

who may have corrected themselves the court could reduce the sentence.

112
A parent so sentenced still has the obligation to pay towards the cost of

raising the child.

Article 27. The grandparents have the obligation to raise and educate their

grandchildren in their minority should the children become orphans. Grown

grandchildren have the obligation to take care of their grandparents when the

latter do not have any surviving children of their own. Siblings have the

obligation to take care of one another in case the parents are no longer living.

Chapter V

Determination of Parenthood for the Children

Article 28. Children born of a marriage or born from a pregnant wife during the

marriage period become the common children of both husband and wife.

In case there is a request to redetermine the parenthood of the child, then other

proof will have to be produced.

Article 29. The person declared to be the father or mother of a child can ask

that the child be determined whether or not the child is one's actual offspring.

A person who has not been declared to be the father or mother of a child can

also ask that the child be determined to be one's own.

Article 30. The recognition of a child out of wedlock by a parent is to be

recognized by the people's committee of the village, subward, or township of

the child's residence and to be recorded in the birth register.

Article 31. A child born out of wedlock has the right to recognize his/her

father or mother even in case the father or mother have died.

A mother, a father, or a guardian has the right to ask that a child born out of

wedlock find a determination of his/her father or mother when he is still in his

minority.

The People's Control Organ, the Vietnam Women's Union, the Ho Chi Minn Communist

Youth Union, the Vietnam Trade Union are all entitled to request a determination

of parenthood for a minor child born out of wedlock.

Article 32. A child born out of wedlock who has been recognized by his or her

parents (either father or mother) or who has been allowed to recognize his or her

parents by a people's court has all the rights and obligations as one who is

born into a legitimate marriage.

Article 33. All disputes concerning child or parent recognition are to be

decided by the people's court of the locality of residence of the child.

113
Chapter VI

Adopting a Child

Article 34. The adoption of a child is meant to bind emotionally the parent of

adoption and the adopted child in a parent-child relationship, thus guaranteeing

that the adopted child in his minority be fed, taken care of, and educated well.

Between the parent of adoption and the adopted child there are obligations and

rights belonging to parents and children as stipulated in Articles 19 to 25 of

the present law.

Article 35. Only a child 15 years old or younger can be taken as an adopted

child. In the case of wounded soldiers, of handicapped persons, or those adopted

by lonely and helpless old people, those above 15 can still be adopted.

The parent of adoption must be older than the adopted child by 20 years or more.

Article 36. The adoption of a child must have the consent of both husband and

wife in the case of the parents of adoption, of the natural father and/or mother

of the adopted child in his minority, or of his/her guardian. Should one adopt

a child 9 years old or older one should have his/her consent also.

Article 37. The adoption of a child is to be recognized and recorded in the

vital statistics record by the people's committee of the village, subward, or

township of the place of residence of the parent of adoption or of the adopted

child.

Article 38. The state and the society encourage the adoption of orphans as

adopted children.

A dead hero's child, even when he/she has been adopted by another family, is

still entitled to all the privileges of a dead hero's child.

Article 39. The adoption of a child can be terminated when the parent of

adoption or the adopted child has done something seriously damaging to the body

or dignity of the other, or when they have done other acts leading to the

cancelation of all emotional bonds between the parent of adoption and the

adopted child.

The termination of an adoption is to be decided by the people's court based on

the request by either the adopted child or the parent of adoption. In case the

adopted child is still in his/her minority, either the natural father or mother

or the guardian of the child, the People's Organ of Control, the Vietnam Women s

Union, the Ho Chi Minh Communist Youth Union, or the Vietnam Trade Union are

all entitled to request a termination of the adoption.

Chapter VII

Divorce

Article 40. When either wife or husband, or both, have put in an application

for divorce the people's court will investigate and try to reconcile the couple.

114
In case both husband and wife request the divorce, if reconciliation has failed

and it turns out that both sides voluntarily seek the divorce, the people's

court will allow the divorce take place.

In case only one side seeks the divorce, should reconciliation fail, the people's

court will sit in judgement. Should the situation be found to be serious to

the point that life together cannot endure much longer, thus negating the very

objective of marriage, the people's court would judge to let the divorce take

place.

Article 41. Incase the wife is pregnant the husband can ask for a divorce

only after waiting 1 year after the child is born.

This limitation doesn not apply in the case of the wife seeking the divorce.

Article 42. In a divorce the division of property is to be decided by mutual

agreement of the two parties, and this must be recognized by the people's court.

The people's court will decide only in case the two sides cannot come to a mutual

agreement.

The division of property upon divorce, in principle, must follow the following

stipulations:

a) The private property of each side continues to belong to.the owning party;

b) The common property of both husband and wife is to be divided by two but it

must be rationally based on the situation of the property, on the concrete

situation of the family, and on the contributions that each side has made to

that property;

c) In case both husband and wife still live with the extended family, thus

making it impossible to.determine the actual part of the property belonging

to the husband and wife, either the husband or the wife will be entitled to

one share of the common property belonging to the extended family. This is

to be based on the contributions that the party concerned has made to the

maintenance and expansion of the common property as well as on the

contributions he/she has made to the regular upkeep of the extended family.

The amount of labor contributed to the family is considered to be the same as

production labor;

d) In the division of property one must guarantee the rights and privileges of

the wife and of the children in their minority; one must also protect the /-"

legitimate interests of production and of the profession. f

Article 43. In a divorce should the party that is economically distressed |

as a result request that it be assisted then the other side must help to the

extent of its capabilities.

The amount of the alimony and the duration of such assistance are to be agreed

upon by both sides. Should the two sides be unable to agree between themselves

the people's court will make a decision.

Under changing circumstances, the beneficiary of the alimony or the person

required to provide it may ask that either the level of the alimony amount or

its duration be changed. Should the beneficiary of the alimony remarry he/she

is not longer entitled to it.

115
Article 44. Divorced parents retain all their obligations and rights in regard

to their common children.

Article 45. In a divorce the question of whom to assign the care, feeding, and

education of the minor children must be based on the multifaceted interests of

the children. In principle, children who still have to suck for their milk are

to be assigned to their mothers.

The person who does not have the charge of taking care of the children has the

obligation and the right to visit, looking after the interests of the children,

and he/she has to contribute towards shouldering the cost of feeding and

educating the children. Should he/she procrastinate on this duty or even avoid

the payment, the people's court will make a decision to take it off from his/her

income or to force him/her to come up with the money.

When necessary and in the interest of the children, the responsibility for taking

care of them or the level of contribution towards their upkeep and education

can be transferred to the other party.

Chapter VIII

Guardianship

Article 46. Guardianship must be procured in the situation of a minor child

needing care and education or protection when he/she is bereft of the parents

or when the parents are alive but not in position to carry out the above

responsibilities.

Article 47. The parents can designate a guardian for their minor children.

When the parents are unable to do so the close relatives of the child can

designate such a person. The designation of a guardian is to be recognized by

the people's committee of the village, subward, or township.

In case the parents or close relatives are unable to designate the guardian

the responsible state organ with such a function or a social organization would

take charge of the guardianship of such minor.

Article 48. The citizen who acts as a guardian must be 21 years old or above,

he/she must be a morally upright person and be self-supporting to be a guardian.

Article 49. The citizen or organization that serves as the guardian of a child

has the following responsibilities and rights:

a) To take care of and educate the child in one's guardianship;

b) To manage the property of the child in one's guardianship;

c) To represent the child in one's guardianship in court and protect his/her

rights.

Article 50. The guardian-citizen must submit to the supervision of the people's

committee in the village, subward, or township as far as h/is guardianship is

concerned. /

116
The relatives of the child in guardianship, the People's Control Organ, the

Vietnam Women's Union, the Ho Chi Minh Communist Youth Union, and the Vietnam

Trade Union all have the right to ask that the people's committee of the village,

subward, or township change the guardianship should the latter turn out not to

fulfill his responsibilities and cause serious damage to the interests of the

child under guardianship.

The guardian-citizen can request that someone replace him/her when he/she feels

that he/she no longer fulfills the conditions to be a guardian.

Article 51. A guardianship is terminated when the child under guardianship is

returned to his/her parents, when he/she is adopted, or when he/she reaches 18

years of age.

Chapter IX

Marriage and Family Relationships of a Vietnamese Citizen With Foreign Nationals

Article 52. In the marriage of a Vietnamese citizen with a foreign national,

each side is to follow the legal stipulations of his/her country in regard to

marriage.

If the marriage between a Vietnamese citizen and a foreign national takes place

in Vietnam the foreign national must also follow the stipulations found in

Articles 5, 6, and 7 of this law. The marriage procedures are to be decided by

the Council of Ministers.

Article 53. Questions such as the conjugal relationship, the property relationship,

parent-child relations, the annulment of marriage or divorce, and the adoption

or guardian of a child involving a Vietnamese citizen and a foreign national

are to be decided by the Council of Ministers.

Article 54. In instances where there has been an agreement on judicial and legal

help between Vietnam and a foreign country concerning marriage and the family,

one must follow the stipulations of such an agreement.

Chapter X

Final Provisions

Article 55. In regard to the minority nationalities, the Council of Ministers

will base decisions on the present law and the concrete situations of each group

to come up with appropriate stipulations.

Article 56. The Council of Ministers, the Supreme People's Court, the Chairman

of the Supreme People's Control Organ are all responsible, within the scope of

their functions, for helping with the guidance in the application of this law.

The Vietnamese Fatherland Front, the Vietnam Women's Union, the Ho Chi Minh

Communist Youth Union, and the Vietnam Trade Union are to educate and motivate

the people to implement this law strictly.

117
Article 57. The present law replaces the Marriage and Family Law of 1959.

The present law has been passed on 29 December 1986 by the National Assembly of

the Socialist Republic of Vietnam in its 7th session, 12th meeting.

President, National Assembly

Nguyen Huu Tho

1751/12951 END

CSO: 4209/287

118
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