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PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY2222 S. Street, N. W. Washington, D. C. 20008 Tel: (202) 332-6416 Fax: (202) 332-4923 |
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PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY2222 S. Street, N. W. Washington, D. C. 20008 Tel: (202) 332-6416 Fax: (202) 332-4923 |
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CONTENTS
GOVERNMENT PROGRAM ON LAND AND FOREST ALLOCATION To date the land and forest allocation program of the government has been implemented in 7,117 villages out of the 8,500 target villages, said Minister of Agriculture and Forestry at a conference to review land and forest allocation being opened in Savannakhet town. In 1999-2000 land and forest were allocated to the people in 787 villages, of which 65 in Sayaboury province, 64 in Borikhamsay, and the rest were in Vientiane province and other parts of the country. The success in land and forest allocation has been instrumental in reducing areas under slash and burn cultivation. There are some areas that have stopped practicing this method of cultivation all together. Land areas used for mobile swidden cultivation have reduced from 115,000 ha in 1999 to 72,600 ha and it is expected that the following year, swidden areas be expected to be down even more. Another positive result of land and forest allocation, it was pointed
out at the conference, related to an increase in the state's revenue due
to land tax. In 1999-2000, the revenue derived from land tax totaled 10,454
billion kip, an increase of 43% compared to the previous year.
The National Mekong Commission in January held a two-day national seminar to formulate a draft strategic plan for the 2001-2005 period under the chairmanship of Boliboune Sanasisane, chief of the Secretariat of the commission. The seminar allowed participants to draw experiences, and reviewed the past operations to supplement the draft plan in preparation for the conference to adopt the strategic plan. The participants also studied law and regulations on water resources; planning for the socioeconomic development in the field of water and relevant resources; and the management, administration, and organization of the human resources development. For the 2001-2005 period, the Lao People's Democratic Republic will
focus on development activities, such as active afforestation and forest
restoration, curb and eventual termination to slash-and-burn cultivation,
curbing of the nomadic lifestyle on mountainous areas, management over
logging and timber sale, rehabilitation of the management system of tapping
watersheds for production and people's daily life, sustainable arrangement
and supply of water to the system of agro-forestry production in multiform
and enhancement of the maximum use of watersheds.
After installation of a new radar system at Wattay International Airport for flight control and to resolve disputes about foreign aircraft use of Lao airspace, it has been established that there are between 130 and 150 foreign aircraft flights through the Lao sky every 24 hours, said Civil Aviation Department (CAD). “We estimate an income of about US$ 15 million and 3.9 billion kip for the 1999 to 2000 period. This comes from over-flights, landing and navigation aid fees, parking, airport service charge and so on,” he said. He explained that before 1975 foreign aircraft flights through Lao airspace was controlled and monitored by Thailand and south Vietnamese flight controls, and Laos did not benefit. The CAD said: "After national liberation and the foundation of the Lao PDR, the Lao government had to negotiate in the national forum. Finally the CAD in 1978 was assigned the responsibility for the control of foreign aircraft flights through Lao airspace." At first, this flight control used a VHF and HF radio system, said the Deputy Director. The equipment was not modern because Laos, Vietnam and Cambodia had just been liberated. There were only around 250 over-flights between 1981 and 1985, earning only US$ 3 to 4 million per year. Between 1986 and 1995, development and expansion of the flight control capabilities went on, as equipment was improved and upgraded by Lao government investment and foreign grant aid. It is estimated the number of over-flights increased to 500 to 600 a week, earning US$ 8 million per year. Since 1996, CAD has been working to master plan to improve the basic infrastructure of the four main airports, included upgrading the flight control communications system. The Lao government had spent around US$ 100 million; including grant aid and Lao government funds, for airport renovation, terminal construction and airport facilities. Since 1996, there has been an average of 1,000 over-flights, worth about US$ 10 million annually. Since CAD was empowered in 1978, the total revenue from over-flights has been US$ 150 million. In the past there had been no radar system at Wattay International Airport, and controllers relied solely on radio communications with aircraft crossing the Lao sky. The radar can very clearly indicate foreign flights in the Lao sky. The computerized radar screen will identify the flight, plane type, height, and speed. That is why the radar installation project is important and necessary for Lao Aviation. The radar will assist and improve flight control. Wattay International Airport radar covers the sky as far as Phongsaly province, in northern Laos, and the radar in Savannakhet province can cover the Lao airspace as far as the Lao-Cambodia border. The new equipment is from the Air Sys-ATM joint Thomson-CSF Company
in France. The Lao government has spent around US$ 17 million for radar
at Wattay and Savannakhet airports. CAD has also installed two remote control
air ground communications systems, one at Luang Prabang and one at Savannakhet
airport. Lao Aviation staff are currently being trained in France
in radar traffic control, maintenance, and use.
The completion of this stretch of road is an initial step in accessing Laos to the sea. The road is the hope of the Lao people to boost their trade relations with Vietnam and other countries through a port in Vietnam. Road 9 was once rehabilitated in the 1980s and was seriously damaged again later. This rehabilitation project funded by the Japanese Government and the Asian Development Bank is conducted in the open market era, which is hoped to bring benefits to the Lao people. The Japanese Contractor, Obayashi Corporation has finished recently all the asphalt pavement for 20 km stretch of National Road Route 9 from Seno to Phalan district in Savannakhet province under the supervision of Japan International Cooperation Agency (JICA), the expediting Agency for the Japanese government and for the client, the Roads Department of the MCTPC. All of the work including marking, installation of signs is scheduled to be completed in February 2001. The road has a thickness of 10-cm asphalt concrete which meets the international standard. It is also suitable for the Trunk Line of the East-West Corridor. In addition to the initial 20-km stretch, the Government of Japan granted an aid for a second 53-km road stretch from the 20-km point to Phalan district by signing the Exchange of Notes dated May 23, 2000. The construction works of this section is going on and scheduled to be completed by March 2003. Furthermore, JICA has finalized a basic design study for a third 60km
stretch from Muong Phalan to Muong Phin. At the site, Lao Army cleared
unexploded ordinance (UXO) alongside the road in January 2001. The Japanese
government is going to extend financial aid for this section and the construction
work will be commenced in the later half of this year after another tender
stage and completed by March 2004.
A World Trade Organization (WTO) Advisory Mission, is in Vientiane, from 15-17 January 2001. Mr. Cato Adrian and Mr. Sajal Mathur, met with senior government officials and functionaries from other international organizations, including UNDP, with a view to assisting Laos PDR in its application to join the WTO. Membership of the WTO, based in Geneva, has been steadily increasing since its inception in 1995, with 140 Members as of 31 December 2000. A further 28 governments, including Lao PDR and neighboring countries, Vietnam, Cambodia, and China, are currently in the process of acceding to the WTO. Progress in the Lao PDR's application for membership to the global trade body, that commenced in July 1997, is expected to be made following the submission to the WTO, by the government, of a detailed Memorandum describing the foreign trade regime. The WTO staff members, in a seminar conducted for the different bodies
responsible for preparing the Memorandum, have been carrying out a simulation
exercise to prepare the government for the next steps ahead.
Vientiane municipality is in the process of developing an industrial area, at some distance from the town, to reduce crowding of factories in urban areas as well as pave the way for future economic expansion. The industrial zone is located at Km21, on Road No 13 South, at Pholsa-Ad village in Saythany district of Vientiane municipality. The Government is going to allocate 14,000 hectares to Vientiane municipality for developing land into an industrial zone. In the first stage, Vientiane municipality will develop 3,000 hectares and introduce infrastructure into the area with roads, water supply and electricity. The Lao Government has attracted large investors internally and externally since opening the country and using market orientated policies to develop its economic plan. The number of factories in urban areas is now increasing and there needs to be a comprehensive strategy for economic expansion in the future. According to statistics from the Vientiane municipality Industry and Handicraft Services, factories in Vientiane municipality total 1,304, with 102 factories owned by foreign investors. The factories are categorized into three sizes: large, medium and small. There are 93 large factories that employ more than 50 workers, 183 medium size factories and 73 small. Now that the urban residential population is increasing, it is difficult to find space to build factories. This is a great proposal to help the expansion of industry, the project will help investors find locations and build their premises. Already some 60 hectares have been prepared ready for factories to be setup. This year, the government has budgeted one billion kip to upgrade the roads and gain access to these areas. Electricity and roads have already reached the industrial site and are only awaiting investment from interested businessmen. According to the future plans, the Industry and Handicraft factories would be moved from the urban areas to the new industrial zone, especially those that affect the environment and people's health. The increased factory population will also encourage future investors to set up business in the area. The industrial zone is located in a prime spot, the area is high and
will be safe from flooding. The water supply is not yet installed however,
according to the water company supply will be in the area soon, if there
are many factories in this zone in the future the Industrial and Handicraft
Services plan to building a separate water treatment system. So far, there
have been no applications for opening factories in the industrial zone.
Over the last 25 years, there has been foreign investment in sectors such as forestry, mining, hydropower, garments, telecommunications, transport, tourism and banking, in more than 800 projects worth more than US$ 7billion. In 1990, there was 43 foreign investment, projects worth US$ 337.6 million. The Highest amount of such investment was in tourism, with 6 projects worth US$ 247.5 million. There were two projects in telecommunications and transport worth US$ 44 million; two projects in mining and petroleum were worth US$ 29 million; and the 8 projects in the garment industry were worth US$ 9 million. According to a report of the Planning and Investment Committee, 16 countries invested in Laos during the year 2000. The countries included Australia, China, France, Germany, Holland, Hong Kong, India, Japan, Malaysia, Russia, Singapore, South Korea, Switzerland, Thailand, Vietnam and Cambodia, and local investors. US$ 33,947,450 of investment was made in 48 projects. Thailand ranks first for having made most investment (US$ 2,900 million)
in 262 projects. The United States of America comes second with more than
US$ 1,400 million invested in 46 projects. South Korea ranks third with
US$ 636 million invested in 39 projects.
The Lao PDR and the People’s Republic of China on February 5 signed an agreement to increase the relations of solidarity, friendship and cooperation between the two countries’ armed forces. Signing the agreement were Lieutenant General Choummaly Sayasone, Vice Prime Minister, Minister of National Defense and Mr. Chi Haotian, Vice Chairman of the Central Military Commission and Minister of Defense for the People’s Republic of China. The signing of the agreement of cooperation between the armed forces, it is said, reaffirms an increasing state of solidarity and friendship between the two nations and their armed forces in the new phase. At the same time it implements the joint declaration signed by the Presidents of the two countries in 2000 in Vientiane. Chinese Defense Minister Chi Haotian arrived in Vientiane on February 5 for a four-day official goodwill visit to Laos. The main purpose of his visit is to strengthen the friendly relations, friendship and cooperation between the two countries, particularly between the two armed forces. In a written statement issued at the airport, Mr. Chi said that over a long period of time, exchanges and cooperation between China and Laos in various fields have yielded satisfying results and friendly cooperation between the armed forces of the two countries have expanded significantly, thanks to joint efforts of both sides. To consolidate and develop friendly relations between China and Laos and the armed forces of the two countries is in keeping with the fundamental interests of the two peoples and is conducive to peace, stability and development in the region. Chi said his visit would give fresh impetus to the development of such
relations in the new century. Laos is the first leg of Chi’s four-nation
Asian tour, which also takes in Vietnam, Cambodia and Nepal.
The Commander-in-Chief of the US Pacific Command (CINCPAC), Admiral Dennis Blair, met with Lao leaders to express US Government appreciation for cooperation on POW/MIA full accounting and efforts toward a constructive relationship. Admiral Blair and the delegation also met leaders to discuss a variety of issues of regional interest including future cooperation on ongoing programs. During the two-day visit, January 14-15, Admiral Blair along with Chargé
d'Affaires Karen Stewart met Deputy Prime Minister and Foreign Minister
Somsavat Lengsavad; Minister to the President's office and Chairman of
the Lao Commission for Drug Control and Supervision, Soubanh Srithirath;
and Deputy Defense Minister Lt. General Ay Suliyaseng.
A historic Extradition Treaty between Laos and Thailand is due to take effect at the end of this month after negotiations between officials from both nations. The treaty was officially signed on January 30 by Phongsavath Boupha, Deputy Minister of Foreign Affairs representing the Lao Government and Suvidhya Simaskul, Thai Ambassador to Laos. It will mean that either government can, for the first time apply to the other government to have “persons found in the territory of one the Contracting Parties who are wanted for prosecution, trial or for the imposition or execution in the territory of the other Party” sent back across the border. The treaty is intended to help both countries to fight criminals and threats to security, such as the bandits at Vang Tao-Songmek International Border Checkpoint, who in the early morning of July 3, 2000, attacked and robbed a border outpost. This incident was an act of terrorism intended to mislead tourists about the security situation in Laos. The Lao authorities are still seeking cooperation from the Thai authorities in bringing these bandits to justice according to Lao law. Thailand is slow to cooperate. Such criminals might have been immediately extradited had a treaty existed between Laos and Thailand at that time. The Vong Tao incident is an exception however. Previously, both countries
cooperated in the arrest of cross-border criminals. The treaty signed recently
will clear such matters up by creating a common set of rules for extraditing
cross border criminals.
Khammouan province inaugurated a new international border checkpoint with Quang Binh province of Vietnam at Naphao and Cha Lo. The Naphao-Cha Lo checkpoint is the second international border checkpoint in this Lao central province after the Thakhek-Nakhone Phanom international border checkpoint with Thailand. Khammouan shares a common border of more than 200 km with Quang Binh.
This central province is run through by the National Highway 13 from north
to south. The province serves as a corridor linking Vietnam and the Northeast
of Thailand with a distance of over 300 km on routes No. 12 and 8B on the
Lao territory, which run across Road No.1A and the express way of Ho Chi
Minh to the Vung Ang seaport in Vietnam.
The Lao-Thai and Thai-Lao Joint Border Security and Order Commission made aerial and land inspections of the border between the Lao southern province of Champassak and the Thai-Ubon Rajathani province in January. It was found out that a Thai border police station was built north of Houai Done river mouth, which was not included in the memorandums signed by the two sides on February 05 and October 01,2000. The Lao side asked the Thai side to immediately withdraw the police force out of the area and the Thai side accepted to rapidly execute. This point, however, was not included in a memorandum. The Lao Champassak provincial officials and the Thai border police commander were assigned to settle the problem. At the same time, the two sides also jointly inspected the Lao military forces stationed at Song Phok, phoukangkhok, Dong Houai Sai, Song Pongdeng and the Thai border patrol police stations at Phou Mot-ngam, Song Ta-ou and Anouphong area. These bases and posts were found at the same places as the sides had earlier agreed. .
A meeting on world poverty was held in Denmark to review the achievements of the last 5 years. The meeting was told that the number of the poor in the world had risen every year since the last meeting. The United Nations defines “poor” as those with an income of US$ 1 a day or less, and the number of poor so defined has risen to around 1,200 million. Attending the meeting were over 4,000 people, who discussed how to eradicate world poverty especially in developing countries, aiming at reducing by half the number of the poor by 2015. Participants also reached agreements on protection, management and help for poor countries in the world, especially those in financial crisis. The meeting agreed that developing countries should have representatives on the World Bank board. They also urged every country to improve and to take part in the world market to improve their economy, especially developing countries. The meeting said that developed countries should give technological assistance to the poor country. The meeting urged lowering the debt burden for the 41 poorest countries, which share a debt of US $ 214 billion. For Laos the government economic focus is on development to eradicate 80 % of the poverty in remote areas, said Deputy Prime Minister and Cabinet Standing Member Boun-Nhang Vorachith The government is aiming at taking the country out of the “least developed” status by the year 2020. The aim is also to eradicate poverty by the year 2010 and eliminate opium poppy growing by 2006. There will be enough food to eat for everyone and education even for the remotest area dweller, said Boun-Nhang Vorachith. To reach the poverty alleviation target, the government needs funding
for its 8-part priority plan, so needs help from abroad to develop. Even
though it cannot solve the whole problem immediately, it is important to
access sufficient aid funds from abroad to reach the government target.
There must be cooperation between the relevant sectors and international
organizations. Every province and authority in remote areas should look
to achieve self-sufficiency in order to achieve the government target to
eradicate poverty in the country.
UN drug control staff on December 8 praised clear indications that Laos, the world's third largest producer of opium, has set itself firmly on a "Very courageous" approach to opium poppy eradication. An order released by Lao Prime Minister Sisavath Keobounphanh turns away from the former "go slow" policy and specifically commands all provinces to eradicate opium by 2006. In a humanitarian gesture, however, it allows elderly addicts to grow opium poppy on limited plots exclusively for their own consumption. Poppies grown for commercial purposes are targeted for destruction. The Vienna-based UN Office for Drug Control and Crime Prevention (ODCCP) said the order "goes beyond our most optimistic expectations of what we could get done in Laos." If followed through, the UN will herald it as a major achievement in the field of drug control. The Lao Prime Minister said that Laos, like all countries in the world, faces drug problems that are "harming human beings, causing upheaval within society and being a source of transnational crime and obstacles to socioeconomic development." He said that through ongoing government efforts, a number of villages in drug producing areas are already on a decreasing trend, but that the nation's past solutions have not yet met the hopes of the government or the international community, including the regional goal of a drug-free Southeast Asia by 2015. The Prime Minister has ordered the provinces to work with the National
Drug Control Commission to formulate rural developments, projects for which
funds may be raised both domestically and from abroad, and to set opium
eradication goals that will result in the crop's total elimination by 2006.
These plans must provide for the destruction of commercial poppy crops
and the re-education of farmers dependent on them. The order goes into
force immediately throughout the country.
A three-day national Drug Enforcement Strategy Workshop jointly organized by the Lao National Commission for Drug Control and Supervision (LCDC) and the UNDCP was opened in Vientiane. In the opening remark, Col. Inkham Inthamaly, Head of the Office of the Ministry of Interior and Vice President of LCDC, stated the need to consolidate internal coordination and cooperation among MOU countries (Cambodia, People's Republic of China, Laos, Myanmar, Thailand, Vietnam and UNDCP), in order to implement the decision of the recent Bangkok conference to make ASEAN countries drug free by 2015. He also pointed out the Lao Government's policy, which has given a priority
to drug control and suppression since the very beginning of the establishment
of the Lao PDR. Among others, he pointed out, to show its commitment, the
government in March last year adopted a strategic program to eliminate
opium poppy cultivation by 2006. In this regard, the Prime Minister has
recently issued a decree on measures against cultivation, consumption,
and interdiction of drug production and trafficking. He viewed that this
workshop is yet another effort to raise the capacity of law enforcement
officers.
The Lao National Unexploded Ordinance Program (UXO LAO) unveiled its results from last year and announced the demining agency's 2001 Work-plan at the 15th ordinary session of the Lao National UXO Program Steering Committee Meeting. The Committee met to consider and approve UXO LAO’s work-plan and the budget for its humanitarian clearance activities in 2001. Permanent National Steering Committee members include representatives of the Ministry of Foreign Affairs, Ministry of Defense, Ministry of Interior, United Nations Development Program, UNICEF, and the representatives of the nine provinces where UXO LAO has a presence. UXO LAO National Program Director told the Committee that 742 hectares of land was cleared across the country in 2000, and over 80,000 pieces of unexploded ordnance was destroyed. In addition, 252 students, including deminers, surveyors, and medics, successfully graduated from UXO LAO Training Center based at I Lay village. He also noted that community awareness teams had exceeded their planned targets by visiting 813 villages and briefing 256,000 people on the dangers of UXO. The National Director reported that in 2000 there were 58 accidents
involving UXO in nine provinces. There were 102 victims from the unexploded
ordnance and 39 people were killed.
A cooperation agreement between the Faculty of Forestry of the National University of Laos and the Faculty of Forestry, Geography and Hydrology Sciences of the Dresden University of Technology of Germany was ratified in September 2000. The Lao - German Technical Cooperation Project for the Promotion of Forestry Education (PROFEP) at the Faculty of Forestry of the National University promoted supported the achievement of the cooperation. Experiences in cooperation between Lao and German institutions for forestry education have been exiting for more than 20 years. From the beginning the German government focused support to forestry education in the Lao PDR at the Vientiane Forestry College, which was steadily development into the Faculty of Forestry. The cooperation agreement between the two faculties can be regarded as a formal continuation of the long lasting tradition. The major objective of the cooperation is to provide academic contributions
to the efforts of the Faculty of Forestry of the National University of
Laos to establish a university forestry education according to the needs
of the national forest sector and at international standard. The academic
qualification and professional upgrading of Lao forestry scientists as
well as the development of applied forestry research are the major pillars
of the future cooperation program. The program is subdivided into the following
topics: academic education of students; academic qualification and upgrading
of instructors; research; communication and exchange of scientific results.
Despite the end of Visit Laos Year 1999-2000, the Lao National Tourism Authority (LNTA) still has many activities planned to promote domestic tourism and to attract more visitors in 2001, said LNTA Vice Chairman. The tourist promoters are planning the development of tourist attractions in every province, with a heavy concentration on environmental and heritage sites. In Vientiane city, the LNTA plan to improve the grass and garden area around the That Luang Stupa. It also installing stronger lighting in many of the main temples like Wat Phakeo, That Luang and Sisaket, as well as at Patusay (Victory Gate) in cooperation with the Information and Culture Ministry. There is also a plan to reconstruct and build more traditional houses in the National Culture Park near the Friendship Bridge and take the bigger animals like bears and monkeys to Ban Keun zoo. Next year Vientiane municipality and the LNTA say they are surveying new tourist places in the new Dongsay National Park at Km 15 village on National Route 13 South, looking to develop it as an eco-tourism attraction. The Phoukhaokhouay National Park is under consideration by the LNTA and Defense Ministry as an eco-tourism site, and there are expansion plans for the Nam Ngum reservoir in Vientiane province and the Tha Pha Bat temple area in Borikhamsay province. Vang Vieng is currently attracting tourists from all over the world, so the LNTA is investigating how best to maximize the site attractions without spoiling the environment here. Many foreign tourists visit the north, especially Xieng Khuang, Luang Namtha and Houaphan provinces, where the weather is cooler in the dry season and the people are known for their hospitality. In Xieng Khuang province, besides the heritage area known as the Plain of Jars, the scenery also beautiful. One promising future tourism feature is the Nam Ha Eco-tourism project in Luang Namtha province. This New Zealand supported project covers 19 villages in the Viengphoukha and Sing districts, centered on Nam Ha village. The aim is to promote local eco-tourism by building a model tourism center for activities such as trekking, which will be owned and managed by the local people. All these LNTA and more local plans are on the assumption that the basic tourist needs like accessibility, comfort, accommodation, meals, good guides, and transport will be even better next year than this. The LNTA says that tourist arrivals in the first ten months of 2000 totaled 596,286 and by the end of the year, over 675,700 tourists arrived in Laos, compared to 614,278 in 1999. The LNTA says this ten per cent rise will be repeated in 2001, predicting around 743,000 visitors. Tourists enter Laos via a number of routes. This year over 350,000 tourists
have crossed the Friendship Bridge; over 75,000 have flown in to Wattay
International Airport, almost 60,000 have come in through Savannakhet,
almost 24,000 via the Vang Tao checkpoint; almost 3,000 have flown in to
Luang Prabang; and over 12,000 have crossed into Laos through Khammouan.
The year 2000 was the last year of the 20th century. For a country of slightly over 5.2 people, it was a year that brought about both new opportunities and challenges for its continued growth. Historically significant was the marking of the Lao People's Revolutionary Party's 45th, founding anniversary on March 22, and of the 25th, birthday of the Lao People's Democratic Republic on December 2. Another important political event was the commemoration of the 80th birthday of the late President Kaysone Phomvihane on December 13. The national economy recovered as the united government efforts to deal with the effects of the 1997 regional economic crisis took effect, also preventing any recurrence. Agricultural production rose promisingly, with a record rice yield of more than 2.2 million tons, while drives for increased production for import-substitution and exports was effective in all parts of the country. This has helped maintain or even strengthen the value of the kip, the national currency, currently standing at just over 8,000 kip to the US$, as compared to over 9,000 kip to the dollar in late 1999. The country has achieved rice self- sufficiency, with a surplus for export. Other foods are also being increasingly produced. Fish, vegetables, eggs, and chickens are being commercially produced, which is helping import substitution. Lao people no longer need to import cucumbers, chilies, onions and melons; instead, they are able to export cabbages and other vegetables. 2000 was the most difficult but successful, year for the Lao PDR. The country has had to work hard to recover from an economic crisis, stood firm against the enemy's political tricks, and was honored to host and celebrate many important national and international events. While the Party and government have had to work hard to stabilize the national economy, it has also celebrated its 25-years of achievement - leading people to food self- sufficiency and import-substitution. However, some groups have tried to sabotage these efforts. The enemy has tried to destabilize the Lao PDR and oppose its achievements in growth, stability and national construction. They have tried bombs and used the foreign media to shout words to drown out the truth; they have invented events and claimed them to be real. They have lied to people of the old regime now living in other countries that the anti-government movement was progressive. However, in reality, people across the nation are happy with the country's achievements, working together to maintain peace and build the nation. The people of the Lao PDR have helped their leaders to, overcome these malignant forces. The enemy may be able to hire young amphetamine abusers to commit crimes, but cannot buy the spirit of the average person. Since the government has encouraged trade with China and Vietnam to reduce a dependence on Thailand alone, the country has taken a major step in economic growth. There is Chinese trading center in Vientiane, providing cheap but high-quality goods. All parts of the country are able to buy Chinese and Vietnamese products. Another success has been the stability of kip. The government encouraged all sectors to be involved in the fight against inflation; the kip value has remained almost stationary at around 8,000 to the US$ all year. In Vientiane, many construction projects have been completed, many continued and other new ones begun. Two of these, the roads and the drainage systems, are significantly altering the face of the city. Details of the year's important events and achievements are briefly noted below: January: The highlight event this month was the official visit of Japanese Prime Minister Kaizo Obuchi, who announced grant aid for three projects in human resource development worth 836 million yen. Immediately after his visit, the Japan international education service was set up to select 20 graduate and postgraduate students to study in Japan every year. Early this month, the government took an important step in administration as Prime Minister Sisavath Keobounphanh issued an anti-corruption decree, stepping up the anti-corruption drive and adding more transparency, good governance and accountability in the administration system. In Pakse, Champassak province, the second Mekong Bridge project took a major step forward to completion as the two parts of the bridge were connected. The government allocated US$ I 5 million to the National Sports Committee to upgrade Vientiane Municipality National Stadium to half-international standard. The improvement of stadium was specifically to prepare to host the Sixth National Games in November. February: It was the month to start annual works after overcoming January's challenges. Japanese experts arrived in Vientiane to explain how Laos could best gain access to the Japanese assessing container behavior, and how to penetrate the market. Lao and Thai Trade Ministers met in Vientiane to discuss trade problems between the two countries. The Lao Minister asked Thailand to allow faster and easier passage for goods transiting Thailand between Laos and third countries. JICA also launched a survey into the export potential of 300 manufacturing companies in Vientiane, Khammouan, Savannakhet and Champassak provinces. They were collecting data and company profiles, and cataloguing products, in an attempt to help government and foreign aid organizations to help Lao business sell to Japan. The State Planning Committee in cooperation with the Japanese Sasakawa Peace Foundation looked at the pluses and minuses of macro-economic management to help refine the economic policy. Vietnamese National Assembly President Nong Duc Manh paid a four-day visit to the Lao PDR and received by his Lao counterpart Samane Vignaketh, thus strengthening the inter-nation friendship and develop cooperation between the two bodies. Orphans in northern provinces were provided with a new home by the International SOS Village. The US$ 1.7 million home was for children in difficult circumstances, who at risk from Unexploded Ordnance still littering northern provinces. The southern province of Sekong opened a new road to link up with the neighboring province of Attopeu and the east of the country. March: The Lao people completed preparations for the 45th anniversary of Party Day. State offices, enterprises and the general public were all involved in at least one scheduled event to mark the Day. The National Assembly opened its fifth session, amending articles of land transportation, pharmaceuticals and medical products. The opening of the National Culture Hall was another major change in the capital. The Hall has become already a significant venue for national and international events. The completion of some roads in Vientiane forced municipal authorities to rethink road and traffic management in the capital. Vehicle owners who park vehicles on the roadside are now obliged to pay fees, 70 percent of which goes for cleaning and maintenance of parking lots and 30 percent to the state. This month showed progress in the third Mekong Bridge project, when survey design and estimates were given the go-ahead. This bridge will become another east-west corridor linking Savannakhet province with Vietnam and Thailand. Scaling of a 200-km section of Road 13 south between Savannakhet and Champassak provinces started with a loan from the World Bank International Development Association, and should be completed in the coming March. April: The highlight was the Lao New Year Festival, when everybody spent 3 days sprinkling water on each other. Luang Prabang celebrated Visit Laos Year as the first stage of the Luang Prabang airport improvement project was completed, enabling an increase in visitors. The southernmost province of Attopeu opened its Visit Lao Year campaign with a display of local art, music, dance, sports and a trade fair. Permission for a gold survey in Khamkeut district, Bolikhamsay province, was received by the Vientiane-based Khamkeut Mining Company. The agreement was signed on April 9, with a total concession area of 36.65 sq. km. A Memorandum of Understanding was, signed for the Sekong 5 Hydroelectric Project between the Lao government and Italian company Sondel. The Nam Theun 2 Hydropower Project progress as Thailand reached a provisional agreement with Laos on the purchase of electricity. Laos hopes to generate US$ 250 million a year from the project. Prime Minister Sisavath Keobounphanh paid an official visit to Cuba.
May: Laos and Thailand agreed to more cooperation in border security, and in the political, economic, technical and cultural areas. The Joint Commission for Lao- Thai and Thai-Lao Cooperation met in Vientiane to review and discuss cooperation. Vientiane municipality's new indoor stadium at Beungkhayong village, Km-3 Thaduea road, opened on May 1. The 800 million kip facility was financed by the government and built in 18 months. The indoor stadium will accommodate over 1,000 spectators for the sepak takraw, basketball and volleyball competitions at the Sixth National Games in December. The Prime Minister asked Vietnamese Prime Minister Phan Van Khai for a 50 percent reduction in the tax on goods exported from Laos to Vietnam. Vietnam and Laos need to solve some nagging difficulties if they want to boost commercial cooperation. The highlight was the visit of Thai Prime Minister Chuan Leekpai. He handed over the 62 million baht Lao-Thai road. In Champassak province, the Huay Hor Hydropower Project reported that Dam had exported more than 500 million kw/h to Thailand. In Vientiane, the first cooking oil factory was inaugurated to substitute imported oil. June: The foreign media invented a report that the Lao government had requested Vietnamese military assistance, denied by a Foreign Ministry spokesman, who said the reports were unfounded and a fabrication to damage the image and reputation of the Lao PDR. Vietnam News Agency said the Lao people felt hurt when the Western media cooked up stories of so-called "increasing political disorder" and tales of Vietnamese soldiers in Vientiane streets. People in Vientiane saw no Vietnamese soldiers in their city. The US$ 114 million Nam Leuk Hydropower Station in Saysomboun Special Zone was officially opened 80-km northeast of Vientiane, generating 60 megawatts of electricity. Laos and Vietnamese companies held a trade fair, the second time for such a fair. July: The enemy added more pressure to destroy peace in Laos. A number of bombs were detonated and cross-border bandits raided the Vang Tao-Chong Mek border checkpoint, seizing the customs office and looting the duty- free shop. More than 30 Lao and Thai nationals returned to Thailand after the robbery, when 28 were arrested. There was an international difficulty when Thailand refused to return the arrested to face Lao courts and the foreign media reported misleadingly on the event. Thai television channel 3 reported that about 3,000 students demonstrated against the government in Champassak province, though Vientiane Times reporters, led by the editor, in Champassak at the time saw no demonstration at all. Foreign Minister Somsavat Lengsavad attended an ASEAN Ministerial Meeting in Bangkok, where foreign media pointed their microphones at him. He did his best to rectify the false reporting on what happened. Another important political event was the visit of President Khamtay Siphandone to China, invited by President Jiang Zemin, an important event in Lao-Sino political and development ties. Lao and Chinese trade cooperation boomed. August: Boundary survey and demarcation was postponed; so far only 17 boundary markers along 95km between Champassak and Thailand's Ubon Ratchathani province had been established for the 1999-2000 period. The government announced a project to make Vientiane's Nongchan area a green and beautiful park. September: The remarkable story this month was the flood situation in central and southern Laos. The government sent staff to help the victims, and asked for outside assistance. The Red Cross launched an appeal for US$ 500,000 for 7,000 families who lost homes and/or farmland. Another hot issue concerned the Mekong islands in Bokeo province. The Thai media reported that Lao militia had forced Thai farmers on the islands to leave. The Lao authorities denied, saying Lao authorities needed the land and asked Thai farmers to leave after the harvest. In Vientiane, there was an informal discussion between the Lao Security Keeping Committee and the Security Council of Thailand. October: Laos prepared for the ASEAN-EU Ministerial Meeting and the 25th National Day. Roads showed new faces with new street lamps. Many damaged roads were repaired. Deputy Prime Minister and Foreign Minister Somsavat Lengsavad were visited by diplomats from the European Union. The four member countries of the Mekong River Commission (Cambodia, Lao PDR, Thailand and Vietnam) agreed on cooperative steps to develop and manage the River Basin and its resources. In Savannakhet the Australian Oxiana Resources proposed mining 90 tons of gold and a million tons of copper, and were awaiting government approval. Houaphan province completed the Namsat dam with irrigation system under the Lao-American Integrated Development Project, to help reduce poppy cultivation. November: There were many significant events starting with preparations for the 25th anniversary of the Lao PDR. Chinese President Jiang Zemin came to Laos, the two countries agreed to strengthen their relationship, and China has promised to help in human resource development and the economy. There were the annual That Luang Festival and its Trade Fair, which for the first time saw Chinese products. This year's Fair earned the government over 230 million kip. The Sixth National Games were held in the country's first semi-international stadium. The Seven Round Table Meeting between the Lao Government and the foreign aid donors was held in Vientiane. The Information and Culture Ministry held a national culture festival in Vientiane, with dancing, chants and poetry from ethnic groups in every province at the National Culture Hall and the That Luang Square. There was also the Mekong-Ganga Ministerial Meeting, attended by Indian Foreign Minister. December: Three important events, ASEAN-EU Ministerial Meeting, the Lao PDR 25th National Day, and 80th birthday anniversary of the late President Kaysone Phomvihane marked a successful end of the year. The ASEAN-EU Ministerial Meeting was considered the most successful
event of the year because it was prepared against many outside forces and
political conflicts. All state institutions, offices and companies are
now happy with the nation's achievements, and all organizations are now
celebrating the victory.
The U.S. has had diplomatic relations with the Lao People's Democratic Republic (Lao PDR) since its founding in 1975. These relations were not interrupted as in the cases of Vietnam and Cambodia. According to the U.S. State Department, international donors and NGOs, the Lao government is cooperating well on the search for MIA remains from the Vietnam War and a campaign to eradicate narcotics production and trade in northern Laos. The U.S. currently funds approximately $10 million per year in MIA recovery, clearance of and education about unexploded ordnance (UXO), and counter-narcotics programs in Laos, The Lao government has also expressed willingness to cooperate on HIV-AIDS and trafficking of women and children from Laos to neighboring countries. A U.S./Lao bilateral trade agreement was signed in 1998. However, it has not yet been submitted by the State Department to Congress for ratification. With the passage of the U.S./Vietnam trade agreement, Laos will become the only country in Southeast Asia without normal trade relations with the U.S. This is including Burma (Myanmer), which enjoys permanent NTR despite the Congressional imposition of limited sanctions against its military government. The only other countries in the world without NTR are Afghanistan, Cuba, Libya, Iraq, and North Korea, none of which has normal diplomatic relations with the US. The U.S. has not had an ambassador posted in Laos for over eighteen months. The nominee, Douglas Hartwick , was put on hold by Sen. Bob Smith (R-NH), calling for a full review of U.S. policy towards Laos. In effect, Sen. Smith has held U.S. policy hostage to his political agenda. No other Senator has come forward to persuade him to change his mind. Sen. Smith credits his views to the so-called "U.S. Congressional Forum on Laos." This group, which despite its name has no link to the U.S. Government, has held closed-door, secretive meetings on Laos since 1999. The Forum is organized by a pseudo-organization called the "Center for Public Policy Analysis," directed by Philip Smith and believed to be supported by the former Hmong general (and CIA client) Vang Pao. The center’s phone is a voice mailbox; calls are never returned. Its supposed location, 2020 Pennsylvania Ave. N,W is an address that does not exist. (These facts have been confirmed by numerous NGOs as well as State Department officials.) This group's influence on Capitol Hill is far out of proportion to its actual constituency. Background on Laos The Lao PDR is a multiethnic state with a bare majority of ethnic Lao and more than 40 minority groups, the largest being Kam Mou (11%), Phou Thay (10%) and Hmong (7%). Although income and education gaps among regions and ethnic groups can be great, there is no legal discrimination against specific minority groups. Ethnic minorities are well represented at all levels of government. More than 80 international development organizations in Laos are encouraged to work with all ethnic groups and have access to all parts of the country. Laos continues to have human rights problems. International Human rights groups do not have access inside Laos. However, some progress has been made in the area of religious freedom. US Ambassador for Religious Freedom, Robert Seiple, visited Laos several times in the past two years. His quiet diplomacy resulted in the release of many of the approximately 60 prisoners of human rights concern, although new cases have emerged subsequently. In April 1999, two Hmong-Americans, Michael Vang and Houa Ly, disappeared
along the northwestern Thai-Lao border. Vang is the nephew of Vang Pao,
Ly was connected with the CIA
Investigations by both U.S. and Lao authorities have produced no trace of the two men. Two FBI delegations have visited Laos to investigate the case; however, the State Department is not satisfied with the level of cooperation they have received from the Lao government, which claims it has no record of the two men entering the country. Since March 2000, there has been a series of bombings in Laos. Some
of these attacks may have been economic or personal in nature; others are
likely politically-motivated terrorist acts. They do not appear to be related
to a power struggle within the Lao leadership, as has been mistakenly reported
in certain media. An attack on the Thai border near Pakse in July 2000
involved 60 armed Thai and overseas Lao who stormed a border post. A leader
of the former Lao royal family living in France at first appeared to endorse
the attack, their retracted their statement. Some of the individuals who
coordinated the attack may be Lao-Americans.
(1) The U.S. should send a new ambassador to Laos. (2) The bilateral Lao-U.S. Trade Agreement, signed in 1998, should be submitted to Congress and passed. (3) The Neutrality Act, prohibiting American citizens front engaging in attacks against another government, needs to be enforced. (4) The U.S. Government should label attacks against civilians in Laos as terrorist in nature. (5) The unresolved case of two Hmong-Americans who went missing along the Lao-Thai border in April 1999 should continue to be investigated. However, it should not be an obstacle towards achieving the above four points in Lao-U.S. relations. (6) Recent initiatives on the part of the INS to repatriate deportable
persons raise concerns that can only be addressed with the presence of
an ambassador.
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