1. Government Reshuffles Key Ministerial Positions
2. Industry In Vientiane Province
3. First Pacific To Launch Vang Vieng Mining 
4. People Express Their Support For Nam Mang III Dam
5. How To Plant Gold In The Soil  
6. Foreign Ministry Says Vang Vieng Perpetrators Not Terrorists 
7. Fa Ngoum Not A Revival Of Monarchy 
8. Double Celebration Attracts Huge Crowd At Vat Phou 
9. Luang Prabang To Hold Large New Year Festival This April 
10. Lao Expatriates Seek Opportunity To Develop Home Town 
11. Ministry Applauds Quaker Service In Laos 
12. ADB Loans For Infrastructure And Industry 
13. Silky Deal For Xieng Khuang And Huaphan 
14. Donors Visit Northern Drug Control Project 
15. Thai Media, District Chief Send Up Another Fake Fireball 

GOVERNMENT RESHUFFLES KEY MINISTERIAL POSITIONS 

The National Assembly (NA) approved a major reshuffle of the Government cabinet as proposed by President Khamtay Siphandone.

As part of the changes Mr. Onneua Phommachanh, formerly Governor of Champassak province, is now Minister of Industry and Handicrafts, Mr. Chansy Phosikham, former Governor of the State Bank, is now Minister of Finance and Mr. Soukan Mahalath, former Minister of Finance, is now Governor of Xieng Khuang province. 

Of the senior officials they will replace, Mr. Phoumi Thipphavone, formerly Minister of Commerce, becomes State Bank Governor; and Mr. Soulivong Daravong, formerly Minister of Industry and Handicrafts, becomes Minister of Commerce. 

Replacing Mr. Onneua Phommachanh as Governor of Champassak is Thongvang Sihachak, former Governor of Saravan, who will leave the position to his deputy, Phosay Sihachak. 

NA President Samane Vignaketh authorized the reshuffle on January 15 in accordance with Articles 2 and 40 of the Lao Constitution and Article 25 of the Law on the National Assembly.

INDUSTRY IN VIENTIANE PROVINCE

 In the first, quarter of this year, the industry and handicraft service of Vientiane province generated 97.626 billion kip in earnings, of which 90% of the province's total revenue is from the processing industry. The figure represents 24.97% of the target 393.7 billion kip. 

It was reported by the Chief of the Industry and Handicraft Service of Vientiane province, to a meeting held earlier this month, to report on the revenue, generation in the province in the first quarter of this year. 

The chief continued, that the service officials called on business units in the province to operate on a regular and legal basis during the officials' visit to local business units to collect information and data on businesses.  

According to the information collected, Vientiane province now has 3,055 factories and plants, including two large factories, 46 medium sized factories and plants, and 3,007 small sized ones. 

The province also has 17,946 small handicraft groups of weaving, blacksmithing, basketry, and tailoring. 

The official pointed out that in the second quarter, the revenue was expected to rise to 98.759 billion kip. The service will urge all business units of different sizes to operate on a regular basis and examine the technical conditions of factories and the quality of their products.

 
FIRST PACIFIC TO LAUNCH VANG VIENG MINING VENTURE 

Twenty square kilometers of Pha Luang in Vang Vieng district; Vientiane province will be transformed into a new industrial zone by First Pacific Mining Company, after it received Government approval for the project on February 4. 

First Pacific Mining signed a contract with the Planning and Cooperation Committee to build a factory and begin mining after the completion of survey work, which began early last year. 

The contract allows the 6ompany to run the mine for 18 years to extract zinc, lead and barite. The company has invested US$ 2 million into the survey and mining. The company predicts that the income from the mine will be more than US$ 2.5 million per year. 

"The first survey area covered 56 square kilometers. After the survey, 20 square kilometers were identified for mining," stated a press release. 

The investment by First Pacific Mining will create 200 jobs for villagers and increase their income. Some 30 kilometers of road to the factory will be repaired and three villages will gain electricity supplies.

PEOPLE EXPRESS THEIR SUPPORT FOR NAM MANG III DAM 

The 374 Hmong families living in the Phou Khao Khuay area soon to be developed under the Nam Mang Hydroelectricity Construction Project have agreed to support the development. 

Villagers from Ban Phou Khao Khuay and Ban Phoukhaokeo agreed to support the construction of the dam after discussions with a government team. The team led by Chaleun Yiapaoheu, Director of the National Organization for the Study of Policy and Administration visited local people to discuss resettlements. 

Nam Mang III is to be a 40 MW Hydroelectric Project costing US$ 60 million. The project has been underway since January 2001. It is expected to be completed in May 2004. The project covers more than 200 hectares of local cultivation land and a number of built up areas. 

Speaking with the people, Mr. Thongyeutho, Deputy Chairman of the Lao Front for National Construction who accompanied the team said the Party and State leaders worried about the living conditions of all ethnic people and would like to improve them as soon as possible. He added that the Nam Mang III project would help improve the living standards of the Lao people. He urged locals to cooperate with the Government to make the project a success. 

On the movement of the people from the construction site, Mr. Thongyeutho confirmed that the Party and Government would provide them with as much help as possible and the Government would also have accommodation and agricultural areas available for them in Thoulakhom district.

HOW TO PLANT GOLD IN THE SOIL 

This is by far is the most prized of all incenses, in its purest form it is worth more than its weight in gold, states a Ministry of Agriculture and Forestry leaflet. 

The leaflet is describing an evergreen tree growing up to forty meters high and sixty centimeters in diameter. It bears snow-white flowers, sweetly scented. 

These trees frequently become infected with a fungus and begin to produce an aromatic resin commonly called Ketsana. The trees are known as agar or Aquilaria Malaccensis. These trees are native to northern India, Laos, Cambodia, Malaysia, Indonesia and Vietnam. 

"Agar wood is extremely valuable in foreign markets and can be compared with gold. In northern Laos we can plant a lot of agar wood growing in suitable conditions," said director of Lao Anfar International.  

According to the company, which is encouraging the plantation of the tree instead of forest exploitation, around five thousand trees can be grown per hectare. Each tree is worth between US$ 100 and US$ 400 depending on the quality after seven years growth. 

"Compare it with other investments and you will find you can save your money in the bank," said the director. 

According to the peoples who are experienced in producing the fragrant essence, every part of the tree is used in the process of perfume. The process involves drying the wood in the sun, grinding it, soaking it for about two weeks, and then finally boiling it to obtain the valuable fragrant essence. 

"Let everyone think. If we only cut this kind of tree one day the next generation will only be able to see agar wood in the museum. Now we can use science to improve and develop agar wood into a plantation industry. A lot of markets await and Laos has good soil for plantation crops, “he added'. 

Agar has been used for hundreds of years by a variety of cultures. Japanese use agar wood that has been infected by fungus. When this happens, the tree produces a resin that is very aromatic when an old tree is uprooted by weather, plants and leaves eventually cover it. This starts the fermentation process. Sometimes the piece of wood is covered for hundreds of years. These fossilized pieces are thought to be the purest incense burning wood.

Agar wood in the future markets will earn a lot of money. Nowadays perfume is an important product for many peoples in the world. The markets need more and more agar wood to produce the perfumes. Only if men and women in this world stop using perfumes it mean the end of the agar wood industry, said the director.

FOREIGN MINISTRY SAYS VANG VIENG PERPETRATORS NOT TERRORISTS  

The perpetrators, who ambushed a bus and other vehicles on Road 13 North on February 6, were bandits, not terrorists, acting Foreign Minister, Phongsavath Boupha told foreign ambassadors to Laos. 

Ambassadors of Germany, France and the United States of America met the acting foreign minister on February 11 to discuss the nature of the incident, which occurred 5 km north of Vang Vieng, a popular tourist town. 

Mr. Phongsavath explained that the incident which claimed the lives of 10 Lao nationals, one Chinese and two Swiss was a brutal act of robbery, similar to events that had happened along Road 13 North four years ago. The last such incident occurred in 1999 when Mr. Claude Vincent, a French businessman was robbed and murdered on the road. 

The ambassadors expressed regret over the incident and condemned the violence, which took the lives of 10 Lao, one Chinese trader based in Kasi district and two Swiss tourists, Ms. Siivia Franziska Meier and Mr. Markus Jochen Nagelin. The incident left 30 people injured and 19 in intensive care in local hospitals. 

On February 6 a group of nine gunmen ambushed a public bus and other vehicles on Road 13 North near Pakpoh village, only 5 km from urban Vang Vieng. The gunmen sprayed the bus, a pick up, bicycles and a tractor with automatic gunfire before robbing the victims. 

The acting foreign minister reassured the ambassadors that in general, Laos has political and social stability. The number of tourists is also increasing every year. Travel conditions in Laos have also improved. 

“The Lao Government always pays attention to protecting the life and property of the Lao people and visitors. Officials have detained some suspects in their investigations over the Vang Vieng incident and will continue to investigate to bring the bandits to justice according to the Lao Law,” said Mr. Phongsavath Boupha. Currently the situation in Vang Vieng is normal. 

In a statement released on February 7, 2003, State Department spokesman Richard Boucher condemned that fatal attack, saying the United States supports the rule of law in Laos and the efforts of the Lao government to identify the perpetrators and bring them to justice.

FA NGOUM NOT A REVIVAL OF MONARCHY

Misleading reports in the foreign media say that the Lao Government is promoting the return of the monarchy, by building a statue of King Fa Ngoum in central Vientiane municipality. 

Dr. Souneth Phothisane, Director of the National Museum says that the point of the statue is not to promote a monarchal regime but to celebrate the true spirit of Laos.

“We don't mean to promote the monarchy. We built the Fa Ngoum statue to remind us of the spirit of patriotism and courage that Lao people have shown against various enemies. It is an expression of the love for the beautiful land that Fa Ngoum was born into and united bringing peace, independence, unity and prosperity to the people," he said. 

It was because of the great patriotism and sacrifices of King Fa Ngoum that he came back from Angkor Thom, the Khmer Kingdom to liberate and unite the country. 

Many countries build statues as memorials to their great leaders who united their peoples and brought peace and prosperity. The memorials remind this generation to continuously protect their country as well as to improve the living conditions of their people. 

"The Fa Ngoum statue was selected because he was the first Lao king who rescued the country. He was the first king to have occupied the largest land area around which the Mekong River flows," said Dr. Souneth Phothisane. 

The director said that Laos didn't build other things instead of statues because the statue is easy to see when people travel through the town. It is an important symbol that people of every generation can learn about history and Lao tradition and culture of 650 years ago. 

"The Fa Ngoum statue was built in the Pakpassak area at the park of the Three Headed Elephant because after Fa Ngoum had united the land of a million elephants he celebrated his victory there.  

During the celebrations, King Fa Ngoum told his people that from now on the area formerly separated would be called the Kingdom of Lane Xang. He told the people to foster solidarity, national harmony and trust in one administration and authority, much like the current Laos today.  

Many people, especially those overseas may have misunderstood the recent events and think that the Fa Ngoum statue was built to admire the monarchal regime. In fact it was to admire the hero of King Fa Ngoum who devoted all his energy and intelligence to bring happiness to the Lao people of all ethnic minorities". 

He explained that the statues of former President Kaysone Phomvihanh and King Fa Ngoum were different. The Kaysone statue or bust is located in every province of the country but King Fa Ngoum might not be remembered in the same way because they are from different historical eras and are different symbols for the Lao people.

King Fa Ngoum was born in 1316 AD. Being a great warrior, he fought and unified Lao townships into the united kingdom of Lane Xang. His childhood was spent in the Xiengthong Palace, then he studied in the Khmer kingdom (at school in the Khmer Court), and finally he struggled to unify the Kingdom of Laos, waging battles to occupy various towns, especially Phuan, Phay Nam and Hoi-et. 

Fa Ngoum successfully developed his army. In 1349 he had only 10,000 men and in 1354 and 1358 the fighters increased to 600,000 and 1,000,000 respectively. 

King Fa Ngoum reigned over the Kingdom of Lane Xang from 1353 to 1373 AD and renamed Xiengthong as Luang Prabang, as the capital of the kingdom. The boundary of Lane Xang Kingdom extended much further out than the borders of the modern Lao State. King Fa Ngoum died in 1374.

DOUBLE CELEBRATION ATTRACTS HUGE CROWD AT VAT PHOU 

Thousands of people flocked the Vat Phou site on February 14 to attend the celebration of the declaration of Vat Phou as a UNESCO World Heritage Site, coinciding with the temple's festival. 

This is a special year for Champassak people because they have a double celebration: the annual festival of Vat Phou temple and the declaration of Vat Phou and associated ancient settlements with the Champassak cultural landscape as the second World Heritage site of Laos.  

The prestigious "World Heritage" label attracted many people to come to the festival, especially people who have never been to Champassak. And local people who had left their home to live abroad took the opportunity to visit their home. 

This year, there have been a record number of visitors to the festival because they came to celebrate Vat Phou as the second World Heritage Site of Laos. The highlight of the celebration was the procession showing the culture and tradition of the people of the ten districts composing the province of Champassak to local and foreign guests.

A trade fair had started from February to display handicraft products produced in the ten districts. The products reflect the remarkable lifestyle and unique time honored traditional culture of the people of Champassak. Apart from the trade fair, there were many other interesting activities including a song contest, a Nang Sida contest and art performances by artists from Laos and Vietnam. 

Addressing the participants in the celebration, the governor of Champassack province said that Vat Phou was an outstanding testimony to the culture in the Khmer empire, which dominated the region from the 5th to the 12th century. It is an example of the magnificent architecture of the ancient Khmer civilization, which symbolizes the relationship between nature and man. 

Then Mr. Samane Viyaketh, President of National Assembly, hit the giant drum nine times to officially open the festival celebration of Vat Phou and associated ancient settlements with the Champassak cultural landscape as World Heritage Site.

 This signaled the start of the procession of the ten districts from the edge of Vat Phou esplanade to the grandstand. The performances by each district were met with loud applause from the guests and the public. 

The procession started with a float carrying the World Heritage certificate presented by Champassak district. On the float was also Nang Sangkhan, the goddess of the year, seated on a peacock. The float, decorated with paintings of Vat Phou temple, was accompanied by several dozen Apsaras dressed in gold and wearing shining golden crowns. 

On the 15th day of the waxing moon of the third month, February 16, a Takbaat ceremony (morning offering to monks) took place near the temple ruins and in the evening scores of people participated in the candlelit procession.

LUANG PRABANG TO HOLD LARGE NEW YEAR FESTIVAL THIS APRIL 

Luang Prabang province plans a large art and cultural festival for the northern provinces to celebrate the seventh anniversary of its admittance into UNESCO's world heritage site listing for the coming Lao New Year celebration in April.

 On 11 and 12 April, there will be a contest to choose beauties, who will sit on a float depicting the legendary Nang Sangkhane. There will be art performances from domestic and foreign art troupes.                         

On 13 April, a festival of cultures of the northern provinces will be staged, along with celebrations for the seventh anniversary of Luang Prabang's admission into world heritage sites listed by the United Nations Educational, Scientific and Cultural Organization. The city center will also be thrown open to street markets. 

Traditionally, the street market is held on the last day of the outgoing year to provide opportunities for residents to shop in preparation for festivities and for the release of animals in anticipation of the New Year. The last day of the outgoing year, Mue Sangkhane Pay, falls on 14 April, this year. 

On 14 April, there will be a street market and competitions in traditional sports and games. In the afternoon people will cross the Mekong River to the other side of the town to build sand stupas on the island of Done Sai Moungkhoune. 

On 15 April, Mue Nao - the day between the Old and the New Year, a textile trade fair will be held several kilometers from the town, at the village of Phanom which is largely inhabited by Tai Lue. 

In the afternoon, there will be a procession of the legendary Nang Sangkhane from Vat That down the main road of Sisavangvong, past the former Grand Palace to the other end of town, ending at Vat Xiengthong, one of the most magnificent temples in town. 

The procession will include a palanquin for a revered monk, a long parade of Buddhist monks and novices, a float of Nang Sangkhane, young girls dressed in traditional costumes, musicians of traditional musical instruments, and artists. 

On 16 April, a traditional Baci wishing ceremony will be held for leaders and provincial senior officials on the occasion of the Lao New Year. Earlier in the morning, devout Buddhists will pay homage to Phra That Chome Sy - the town’s symbolic and revered stupa built on a mountain of Phou Sy standing in the heart of the town. A local trade fair of “one village one product" will also be held on the day. 

On the following day, the sacred Buddha image of Phra Bang, after which the town is named, will be taken from the palace-turned museum, and placed at Vat May Souvannaphoumaram Temple for the water-pouring ceremony. 

In the afternoon, leaders and provincial senior officials will take an upstream cruise on the Mekong River toThamTing Cave, around 30km north of the town, for water-pouring ceremonies over the Buddha images at the cave, and other images at Vat Park Ou Temple opposite the cave. At Park Ou, there will also be a trade fair. 

On 20 April the Phra Bang Buddha image will be brought to the museum. 

During the three days of the Lao New Year celebration, people will pour water over each other. The purpose behind the water splashing is to wash away the past year's bad omens. 

Because the ancient royal capital is perched on a confluence of two rivers, the Mekong and Nam Khane rivers, and it nestles peacefully amid the northern mountains, Luang Prabang has become an outstanding world tourist attraction. 

In preparation for the coming celebration, the Urban Administration and Development Organization has set up a small clean-up and maintenance team to undertake the maintenance and cleaning of gutters, parks and roads.  

LAO EXPATRIATES SEEK OPPORTUNITY TO DEVELOP HOME TOWN  

Lao Chinese businessmen have returned to examine the investment opportunities in their motherland after more than 20 years since they left the country. 

Recently, more than ten Lao-Chinese businessmen, led by the Lao World Group president Peter Lin, discussed possible investment opportunities with the Deputy Prime Minister Thongloun Sisoulith, President of the Committee for Planning and Cooperation. 

Most of the businessmen run their own companies or mini-markets in many countries including America, Canada, Australia, France and Vietnam.

 "We would like to come to develop our land but we still don't know much about the business in Laos. So it is a good opportunity for us to seek the potential this time," said Peter Lin (whose Lao name is Somsack Somsouk).

 Peter Lin was born in Saravan province, in Southern. Laos and moved to live in America more than 20 years ago. He runs his own company, N. A. Trading Company, in the US. The company acts as a wholesaler for various goods, mostly imported from Thailand. "It is fifty-fifty whether we decide to invest in Laos. May we look at the opportunity first," he said. 

Mr. Lin pointed out that to export to the US, there were three things that Laos had to improve: Facility of transport (as Laos is landlocked), the quality of the products and privilege from the US. 

Goods from Laos now cannot compete on price, as Laos doesn't have the privilege from the US, which means taxes cannot be reduced like in other countries and the transport costs are also higher. 

The Deputy Prime Minister said that there were many transport improvement plans in the near future including the discussion to use Vietnam's Danang Harbor and the improvement in roads to facilitate transport as well as the potential strategic location as the East-west corridor. 

The Deputy Prime Minister also pointed out the trade benefit with China and Korea. He said that this year Laos get privilege from China to export about 204 kinds of goods to China without tax, because of the special relationship, and many kinds of goods to South Korea without tax. "This is also another potential for Lao export," he added. 

The Deputy Prime Minister also invited the group of businessmen to invest in building five-star hotels. Such hotels are needed for many government activities. He also encouraged investment in agriculture and tourism. 

The businessmen's group won't make their decision on investment immediately, they will observe first and then discuss opportunities. The group also observed at the business opportunities in Vientiane and provinces.

MINISTRY APPLAUDS QUAKER SERVICE IN LAOS

The Quaker Service Laos was recently congratulated by the Ministry of Labor and Social Welfare for the major assistance it provides to victims of fires and floods. 

The ministry on January 29 awarded a certificate of congratulations to the NGO for its continued work in Laos. Between 2000 and 2002, the Quaker Service Laos (QSL) in coordination with the Social Welfare Department provided some 279,234,000 kip in funding assistance. 

The Organization began its work in Laos in 1973 with assistance to people suffering from the impact of war, regardless of political affiliation. 

A central purpose of QSL programs is to promote equal opportunity for all members of the community.  

Currently, QSL program work is concentrated in the northern provinces of Oudomsay, Luang Prabang, Xieng Khuang and Phougsaly. The Small Scale Irrigation, Program helps farmers plan, construct and manage irrigation systems and also provides opportunity for farmer training. 

Activities of QSL have included food security, family economy, women’s activities, health and education.  

There is a major emphasis in all QSL program work to help build the capacity of local partners by both offering training and exposure opportunities in both technical and social development areas. 

QSL allocates a portion of its budget for community initiated proposals. Proposals are welcome for consideration to assist development activities or emergency situation.

ADB LOANS FOR INFRASTRUCTURE AND INDUSTRY  

Laos has been given the go-ahead for a loan of US$ 67.9 million from the Asian Development Bank (ADB) and US$ 700,000 in grant aid from Japan, announced the Finance Ministry recently. 

"The grant aid will come from ADB's Japan Special Fund, financed by the Government of Japan. It is technical assistance," states the press release. 

The loan has to be paid back in 32 years with interest of 1 percent for every year of the grace period and 1.5 percent for every year after that.

The money is intended for use to develop the country's tourism, communication and agriculture system, according to a press release from the ministry.

The US$ 700,000 donation will be used to carry out feasibility studies for airports and will also be used for technical assistant to prepare a project to improve the airports in Bokeo, Huaphan, Oudomsay, Phongsaly, Sayabouly and Xieng Khuang provinces, northern Laos. 

With two-thirds of these provinces covered by forest and woodland, rural accessibility is poor, with half the country inaccessible during the wet season. Air transport is thus a vital area of development. 

The aid will also be used to upgrade the existing civil aviation master plan, originally prepared in; 1993, to provide a framework for sustainable and effective development of    the civil aviation sector. 

A US$ 30 million loan will be used to construct the road from Huaysay district, Bokeo province to Boten district, Sayabouly province. The road is to connect China, Laos and Thailand.

In the absence of a railway system and access to the sea, Laos depends heavily on roads and airports. Improving the airports in north to acceptable international safety and security standards will be crucial to providing market access and better delivery of social services as well as promoting national, regional and international tourism. 

Other loans totaling of US$ 10.9 million will be used for a project to develop the economically important tourism sector to attract larger numbers of tourists. 

The project will improve tourism related infrastructure, support pro-poor community based tourism projects in rural areas, facilitate private sector participation in tourism marketing and promotion, and ease the movement of tourists across borders. It will also establish mechanisms to increase sub-regional cooperation, according to the ADB press release.

Another US$ 15 million will promote optimal use of water resources in the Nam Ngum river basin in Xieng Khuang and Vientiane provinces. 

It will also support livelihood opportunities for poor and ethnic groups in some of the most degraded parts of the Nam Ngum river basin.   

The final US$ 12 million in loans is for agriculture production promotion in four flatland areas of Vientiane, Nakay district in Khammuan, Savannakhet and Champassak provinces. 

This project is to promote commercial smallholder agriculture to sustain rural income and reduce poverty. It will improve the living standards of rural populations.  

The money will support the farmers and people in rural areas by training them to produce, to protect the forests, sustain the rivers and irrigate their crops.

Agriculture in Laos is limited mainly to the subsistence farming of rice, and productivity is low because of inefficient practices, low input use and low farm mechanization. So the project will implement technical assistance and financial advisory activities for trade, commerce and the development of agribusiness.

SILKY DEAL FOR XIENG KHUANG AND HUAPHAN

Forty villages in two northern provinces will be integrated into new silk production areas after a new assistance agreement was made between the Government and Consortium Lao. Under the agreement, Consortium is obligated to provide technical assistance and needed inputs to develop and promote silk production. 

People in the two provinces traditionally plant mulberry for raising silk worms so as to produce silk. 

Even though the people have been planting and raising silkworms for along time they need some technical assistance to improve the quantity and quality of their products. 

The consortium will assist local people in 40 villages by training local officials, providing techniques on how to plant mulberry trees and raise silkworms, marketing and support equality between men and women. 

Some of the officials need to learn how to plant mulberry trees and raise silkworms so they can assist the local people. The assistance aims to support existing enterprises and micro-enterprises engaged in the production, processing and marketing of silk in Laos by increasing their volume and profitability. In addition, new private silk sector enterprises and micro enterprises are to be established, placed on a growth trajectory and made profitable. 

Consortium began the first phase of the project in 2000 and assisted people in 24 villages. The new round assistance will run from now until the end of 2004. 

Consortium is funded by USAID and runs by the Lao Economic Acceleration Program for the Silk Sector so as to enhance the economic livelihoods of poor rural farmers in Xieng Khuang and Huaphan provinces.

DONORS VISIT NORTHERN DRUG CONTROL PROJECT

Opium cultivation in Xieng Khuang province has been reduced quite substantially over the last few years but more funding is needed to eradicate opium from the province.

"Drugs are a serious problem for Xieng Khuang province, especially opium. We have about 1,000 hectares of opium plantations with 225 villages involved in opium cultivation," Mr. Sivon Yayongyea, Governor of Xieng Khuang province, told international organizations and ambassadors of countries assisting the drug control program in Laos. 

The donors visited Nonghad district, Xieng Khuang province to look into the progress of the drug control project. 

Before the coming of the drug program, Nonghad district was a popular place for opium growing.  There were 1,300 hectares of opium, the largest opium plantation area in the province. 

In 1999 Nonghad district received funding from the United Nations Drugs Control Program (UNDCP) to set up a development project aiming to create permanent jobs for local people as an alternative to opium. 

Since 1999 the project has improved the infrastructure in 55 target villages and built facilities for the villagers such as schools, hospitals and a clean water supply. In addition, the project has also encouraged villagers to change from planting opium to pursuing permanent jobs such as growing commercial crops and breeding livestock. 

According statistics from Xieng Khuang province for 2002, there were more than 2,700 people addicted to Opium. About 5,500 families who were involved in the opium plantation lived in remote areas and in impoverished conditions. 

"The main purpose of opium production is to sell it in exchange for basic needs," said the governor. Besides improving the infrastructure and providing new alternatives for the local people, the provincial authority has paid attention to educate the people and used the law to help people understand the dangers of drugs. 

"We sent officials to the grassroots to educate the opium producers and we let them know about the government policy on drugs," the governor said. 

According to the press release, after the visit the donor countries and international organizations, called the Mini-Dublin Group, agreed to continue support for the opium eradication plan of the Lao Government. 

THAI MEDIA, DISTRICT CHIEF SEND UP ANOTHER FAKE FIREBALL The people who gave interviews to Thai channel ITV reporters about the Nagha fireballs (Bang Fai Payanak) have not been arrested or sentenced but warned said Vientiane Mai newspaper on January 9.

Three Thai newspapers, Khao Sod and Neo Na on December 24 and Thai Rat on December 27 last year reported that a group of Lao people were given 12 years in prison for firing a gun into the air for Thai media thus, faking the natural phenomenon. 

The papers claimed that residents from Done Neu village, Pak Ngeum district, Vientiane municipality fired a gun into the sky in order to create an image for the ITV reporters from Thailand, claiming that it was a Nagha fireball (Bang Fai Payanak) and were sentenced to 12 years imprisonment last November, which was troubling their relatives and making them ask for help from ITV. 

The report to the newspapers came from Virasay Mongkhonepumrat Chief of Nongkhai district, who claimed that he used to run a business with the Lao people. He gave an interview to the reporters about this matter and disclosed the names of people in Done Neu village who were supposedly sentenced to 12 years in prison, including Mr. Sifong Rattanathavone, Mr. Phiou Meksithong, Mr. Doun Khanti, Mr. Deng Sengpanya and Mr. Somneuk Chanthavong. 

After this news spread, it drew widespread attention from the public and it raised suspicions about whether it was true or not since the Bang Fai Payanak issue had become quiet for a long time and people wondered why this issue had been raised again. 

A writer from Vientiane Mai, Pak Top was assigned to search for the truth about this issue. The writer went to Pak Ngeum district and made an interview with Mr. Jeuwa Saytong, Chief of the district. He said the idea that those people were sentenced to 12 years in prison was a pure fabrication. It was invented without any evidence. 

The writer also went to Done Neu village to meet the people that were claimed to be in prison. When the writer got there, the writer saw that everyone still earned their living and lived their lives as normal. No one was in serious enough trouble to need financial help from ITV. Interestingly, some of the names reported in the newspapers such as Deng Sengpanya were fabricated. There was no one by that name. 

All in all, this is another pure make-up story from some Thai media that intend to destroy relations between the people of the two countries, Laos and Thailand. 

It can be noticed that these three papers that reported this story all referred to Virasay Mongkhonepumrat, the chief of Nongkhai. Therefore, the writer wants to ask why the chief reported this. Was it for the benefit of anyone?

According to information from the writer, there was a conflict between Nongkhai people and a group of program producers about making of Behind the Scenes: Bang Fai Phayanak. That means the chief was one of the people who argued against ITV during the broadcast of this program on the ITV channel. But presently, he has turned to become a troublemaker by making up the story that aims to discredit the authorities and Lao people especially people in Vientiane municipality, Pak Ngeum district and Done Neu village. 

The writer wants to ask why the chief made up this story or whether he has any involvement with the workers at ITV. Apparently, the writer heard that Nongkhai once called for damages from ITV for more than a hundred million baht, but it was not successful. What Nongkhai received was just an apology to the Governor of Nongkhai from ITV. Thus the writer asks: "Is this the, reason? Did Virasay Mongkhonepumrat want to take this opportunity to get money from ITV? 

The writer keeps on asking why the chief had to damage the reputation and honor of people in Done Neu village as well as Lao people throughout the country to get involved in this business. Is this action appropriate for a high-ranking official? 

The writer calls for the chief to take responsibility for his report as well as the fabrication despite the fact that the authorities of Pak Ngeum district as well as Vientiane municipality did not sentence the people mentioned above. The authorities however, warned those people about correctness and public consciousness. The authorities also told the people to consider the story as an invaluable lesson, which was now over. 

People in Vientiane municipality have always stuck to friendly relations existing for a long time with Nongkhai people and the Nongkhai people also do the same. However, when there is a group of malicious people trying to destroy the relations things become shaky. Thus the writer calls for the people of the two districts to fight against the group and calls for the group to come out and take responsibility for there actions.