1. Deputy PM’s Address To ASEAN Celebrants 
2. Floods Hinder Rice Cultivation In The South 
3. Production And Investment Outlook Fair
4. Planning For Basin Development Continues 
5. Lao Skills Make Foreign Orders 
6. Vientiane To Improve Road Drainage 
7. 142 Foreigners Granted Lao Citizenship
8. Bank Warns Of Counterfeit 20,000 Kip Notes
9. 2002-03 Opium Cultivation Eradication Plan Geared Up 
10. Government Takes New Look At Juvenile Offenders 
11. SIDA Grants Aid To Six Lao Provinces 
12. Sethathirath Gains Equipment For A New Century 
13. World Bank Provides Loans To Laos
14. US Govt. Picks Up Efforts To Eradicate Opium 
15. President Of JCC Makes Personal Donation 
16. ROK To Finance Vocational Training Center 
17. Food Security Project In Khammuan
18. China To Fund Friendship Hospital In Luang Prabang 
19. Three Indochinese Countries Discuss Drug Control Cooperation 
20. EU Trade Preferences Discussed In Vientiane
21. US MIA Remains Sent Home 
22. Laos Establishes Diplomatic Ties With East Timor 
23. Activities In Washington Mark Lao-Viet Anniversaries 
24. Laos, Thailand Discuss Business Disputes

 
FLOODS HINDER RICE CULTIVATION IN THE SOUTH

Floods, caused by torrential rainfall since early this month, are now causing havoc for rice cultivators in the central province of Savannakhet and southern province of Saravan.

The torrential rainfall, which commenced in early July, pushed up the water level in the Sedone River rapidly and has flooded 421 ha of rice fields in Khong Sedone district, Saravan province. The floods have inflicted serious damage to 30 ha in the area of Thaluang and Keng Houad. The water level receded on July 12. Based on the local features, the authorities of this southern province are taking urgent measures to improve the situation. A second rice transplantation will be applied in highland areas. The Provincial Agriculture Service has arranged eight tones of paddy for this purpose.

Khong Sedone has planned 13,800 ha of rice cultivation for the 2001-2002 period. Rice transplantation has been carried out on 8,228 ha of rice fields so far.

In Savannakhet, this central province has faced heavy rainfall since July 10. The rainfall has made the water rise in the Se Samsoi river. According to an unofficial figure, 271 ha of rice fields in Sonboury district have been flooded.

The inundation is expected to extend its scope since the water level is still rising. Vast newly transplanted rice fields are expected to be submerged by the rising water level.

PRODUCTION AND INVESTMENT OUTLOOK FAIR

The production and foreign investment climate in Laos still has a fair outlook despite recently released figures stating that economic growth reached only 5.7 percent in fiscal year 2001-2002, well short of the 6.5 percent target.

According to a recent Planning and Cooperation Committee budget and development evaluation, rice production is expected to reach 2.4 million tones, an increase of 4.3 percent compared with last year. The wet season rice harvest will be around 1.7 million tones, 4.8 percent higher than last season.

Animal raising also looks set for a good trend. The country currently has about 1 million buffaloes. The figure has jumped up about 2 percent. Cattle have sprung up 6 percent to 1.2 million heads.

The amount of pigs also expanded about 3 percent. Now, there are about 1.4 million pigs. Poultry numbers have expanded 12 percent to about 18 million, according to Vice President of the Planning and Cooperation Committee Mr. Somdy Duangdy.

The vice president reported that the Government fully supports foodstuff and agricultural production for processing factories and for export. Now, there is 278,000 hectares of commercial crops and a 138 ha dry season crop harvesting 543,000 tones.

Animal feed production at the Tha Ngon Animal Feed Factory can produce 1,200 tones per month and new factories have completed construction in Huaphan and Bolikhamsay provinces and are currently running experimental production phases.

The Ministry of Industry and Handicrafts expects that the gross industrial production will expand at 6.6 percent this fiscal year. The mining sector will go up 7 percent, and electricity and water supplies will see a 4.2 percent expansion.

Mr. Somdy Duangdy reported that over the last nine months the electricity sector could produce about 2,366 million kWh increasing only one percent compared with the same period last year. Domestic use was about 18.4 percent and 81.6 percent was exported. The export value was about US$ 66 million. Electricity production is expected to be around 3,356 million kWh over the year and the export value is expected to be about US$ 93 million.

The country has completed construction of a second Vang Vieng cement factory and has started production. It can provide about 200,000 tones of cement per year. The third and fourth cement factories will be built in Khammuan and Saravan provinces in the coming years.

The domestic and foreign investment situation is reportedly better than last year. The Government has approved 71 foreign projects with a net value of US$ 480.3 million. Investment has increased 10 times compared with last year, according to a top official from the Department of Promotion of Domestic and Foreign Investment.
 

PLANNING FOR BASIN DEVELOPMENT CONTINUES

The first meeting of the Lao National Basin Development Plan Sub-committee was held at the Lao National Mekong Committee Office on July 17 in Vientiane municipality. The object of the meeting was to maintain national involvement and ownership of the Basin Development Plan (BDP) and maintain and support the BDP in high level decisions and approval by authorities.

The meeting discussed the selection of a pilot sub-area and studies, progress of the BDP up to date, BDP implementation in the near future, discussion of BDP draft working papers and guidelines and advice for national planning of BDP implementation.

The Director of Planning Division, Head of BDP Unit said there are nine projects to develop the Mekong River including development of environment, forests, fish and agriculture along the Mekong river. He added that this includes the construction of harbors and embankments along the Mekong river.

The Mekong River Commission (MRC) Basin Development Plan will run from October 2001 to 2004. The Mekong river basin is one of world’s longest rivers and one of the most productive rivers with exceptional biodiversity. The Mekong river is ranked 3rd in the world for its number of fish species –more than 1,500 species.

The Lower Mekong Basin covers an area of 606,000 sq. km and in 2001 the river was connected to a population of 62 million people. Forty percent of the people who live along the Mekong river are in poverty.

The project is being supported by US$ 6.16 million from donors including Australia, Denmark, Japan, Sweden and Switzerland.

 
LAO SKILLS MAKE FOREIGN ORDERS

Local skills are fermenting trust in Lao-made furniture among foreign businesses and orders are constant for an established Chinese investor in Laos. The Lao Challenge Company says that Lao skills and quality wood have kept orders from its foreign customers.

"The company exports at least US$ 200,000 in furniture and ornaments each year," said the Lao Challenge Company marketing manager. In 2001, the company exported US$ 247,407 worth of goods. The products are sent to China, Taiwan, Thailand, Japan, Russia, Canada, Switzerland and New Zealand. "Our main markets are Taiwan and Japan," added the manager.
She explained that the company is getting permanent customers because they trust in the quality of the goods. "It is because we have this quality wood and labor forces to support our production," said the manager.

There are more than 300 workers producing for the company. In the first few years experts from China came to train the workers to improve their skills. "Now all products are made by Lao workers and we have regular orders from our customers," said the manager.

Lao labor cannot currently be exported, however local skills and experience can be exported first and can also be trusted. The products are made according to orders from customers. The products include Chinese, Japanese and European styles. Most orders are for Chinese style products.

"The customers just tell us what style they want and then we do it. It is quite hard work, but it is ok. We can do what we know will make them trust us," she said. Lao Challenge Company is a Chinese investment set up in 1991. It produces furniture and ornaments for export. In 1996, around 20 percent of its products were sold domestically.

Investors choose to invest in Laos in this field because Laos has abundant raw materials and cost-effective labor which can be trained and encouraged to produce quality goods.
The company uses an average of 2,000 cube meters of wood per year from the provinces of Sayaboury, Bolikhamsay and Savannakhet.

In 2000, the Government stopped giving individual quotas to each company but gave concessions to logging companies in the provinces. "The companies in such provinces always win the concessions and we have to buy the wood from them. We buy it at export prices and also have to pay for transportation by ourselves," said the marketing manager.

VIENTIANE TO IMPROVE ROAD DRAINAGE

Information on drainage systems in Vientiane municipality was imparted to staff of the Communication, Transport, Post, and Construction Service of Vientiane municipality at a workshop opened Vientiane.

Head of the CTPC of Vientiane municipality said that the four-day workshop aimed to impart techniques for engineers to create a database on ditches and gutters along roads in Vientiane municipality. The database was created based on the survey of road drainage in Vientiane municipality early this year.

According to the survey, ditches and gutter systems in Vientiane need to be improved and professional staff from the CTPC as well as the Vientiane Urban Development and Administration Authority have to upgrade their skills to fix the problem.
 

142 FOREIGNERS GRANTED LAO CITIZENSHIP

The Vientiane municipality Administration has granted permanent residency to 142 foreigners living in Laos.

The citizenship ceremony was held on August 9 at the National Assembly in the presence of representatives from the Lao People' s Court, the Security Force of Vientiane municipality, the Vientiane municipality Administration Office and the Lao Front for National Construction.
Of the new Lao citizens 58 are Chinese, 77 are Vietnamese, five are Cambodian, and two are French.

Vientiane municipality Administration has launched three phases of applications for Lao citizenship. Over 200 new Lao citizens will eventually be admitted.

 

BANK WARNS OF COUNTERFEIT 20,000 KIP NOTES

Just weeks after the release of the new 10,000 and 20,000 kip bank notes, the Bank of the Lao PDR has issued a warning to the public about the circulation of counterfeit 20,000 kip.

The bank says that the fake money is printed on low quality paper, and is different to the genuine note because of its rough texture and pale color. The public has been warned to check for the relief imprinted in the texture of the paper. The genuine ones have distinct "security line" and watermark (the picture of the late President of the Republic Kaysone Phomvihane) when held up against the light, while the counterfeited money has not. On the note, the drawings are sharp, and the colors are clear, says the bank.

The bank advises the public to maintain vigilance and report any counterfeit notes to the police immediately.

 

 

 
2002-2003 OPIUM CULTIVATION ERADICATION PLAN GEARED UP

Lao National Commission for Drug Control and Supervision (LCDC) Chairman Soubanh Sritthirath appreciated anti-drug units for their active attention and creativity in the implementation of the opium cultivation eradication plan.

The chairman said that units in their localities achieved their duties by means of signing memos or contracts with families and local authorities. This led to the reduction in opium-growing areas, which has exceeded the target of the plan.

The Chairman made his statement an annual meeting to draw lessons from curbing opium cultivation and in preparation for the implementation of the 2002-2003 opium cultivation eradication plan held here on July 19.

The meeting gathered governors of 11 northern and central provinces of Vientiane, Borikhamxay, Bokeo, Xieng Khuang, Huaphan, Luang Prabang, Phongsaly, Luang Namtha, Sayaboury and Oudoxay, and the Special Zone of Saysomboun. Compared to last year, the area under opium has dropped by 3,199 ha, accounting for 18.5 percent. The opium output also dropped by 4.9 tones, or 4.2 percent. The number of opium addicts was also down by 5,520, or 9.6 percent.

These figures are only initial achievements, representing only 74 percent of the annual plan target, noted Mr. Soubanh, adding that, now the total areas under opium cover 14,052 ha, which Laos plans to eradicate the plantation of this illicit crop by 2005.

He continued that the commission together with relevant central parties and local authorities where opium is planted was soliciting funds from both domestic and overseas sources for the implementation of the integrated rural development project to persuade and divert farmers from the cultivation of this illicit crop to other forms of farming.

In parallel, the LCDC is trying to attract funds from the international community for border provinces to help intercept drug smuggling and trafficking. The commission also sets aside funds for the dissemination of resolutions, directives, regulations and laws on the settlement of drug issues so that the general public realizes dangers and impacts of narcotics on individuals, families, society and the international community.

GOVERNMENT TAKES NEW LOOK AT JUVENILE OFFENDERS

The Ministry of Justice recently gathered officials to talk about sensitive treatment for young people who find themselves on the wrong side of the law. Judges, police officers, prosecutors, district and village chiefs and members of mass organizations gathered in what was termed another major step towards children’s rights.

According to an official from the Ministry of Justice, the aim of the training was to improve the understanding of the new way to look at children when they do wrong.

During the workshop participants discussed how to change working-practices to better protect the rights of children. Once changes have been agreed they are formalized as local action plans for change. District and provincial project teams monitor progress in implementing the agreed changes.

This workshop is bringing improved knowledge and understanding of justice for young offenders. It should be put into practice.

The training is part of a Ministry of Justice initiative to establish a juvenile justice system in the Lao PDR that promotes alternatives to custody and protects children’s rights. The project is establishing youth courts, promoting mediation, and encouraging the use of bail as an alternative to remand, and promoting the wider use of non-custodial sentences. The project is supported by Save the Children (UK) and the British Government Foreign and Commonwealth Office.

In the past month a series of training workshops have been held in Champassak, Savannakhet, Vientiane, and Luang Prabang provinces for members of the local justice system.

 

SIDA GRANTS AID TO SIX LAO PROVINCES

SIDA aid funds for the 2001-2002 period have been channeled to the Public Health services of six provinces for the purposes of environmental sanitation and water supply. The 2001-2002 allocations include US$ 71,900 to Sekong province, US$ 71,400 to Borikhamxay, US$ 63,800 to Khammuan, US$57,900 to Sayaboury, and US$ 77,400 Bokeo as well as an unspecified amount to Huaphan.

Held at the Environmental Sanitation and Water Supply Center on July 11, the presentation was performed between Dr. Bounlai, Director of the Hygiene Department, Ministry of Public Health, Dr. Nuanta Maniphousay, Director of the Environmental Sanitation and Water Supply Center, and Khamphone Phoutthavong, acting Director of the Inspection, Planning and Budget Department, Ministry of Public Health. The event was witnessed by Dr. Bounkwang Phichith, Deputy-Minister of Public Health. Also on hand were representatives from the Swedish International Development Agency (SIDA).
 

SETHATHIRATH GAINS EQUIPMENT FOR A NEW CENTURY

A batch of the latest hi-tech medical equipment was handed over to Sethathirath Hospital by the Lao-Japan, Sethathirath Hospital Improvement Project (L-J SHIP) on June 12.
Worth US$ 280,000, the package of 33 items is said to be a significant contribution to the services provided by medical workers at the hospital.

Procedures which had not been done so far in this country are available at Sethathirath Hospital now, states Chief Advisor to the L-J SHIP project.

The package includes a color ultrasonography, a complex ultra sound device used to examine the inside of the stomach and the brain. Also included is a colonofiberscope, a small camera inserted into the body and used to visually examine the patient’s colon.

Other significant items in the package are an automatic immunoassay machine and a hemoglobin electrophoresis, both specializing in the analysis of the patient’s blood. The former is used to check hormone levels and the later to search for parasemia.

A hospital press release stated that use of the modern equipment would contribute to the task of upgrading the skills of doctors and nurses at the hospital.

The provision is expected to pave the way for improvements in laboratory, endoscopic and imaging diagnosis. Other medical fields are also expected to gain advanced diagnostic capabilities including the diagnosis of thyroid hormone levels, fertility hormone levels, tumor markers, and color flow imaging in the organs and direct observation of gastro-intestines via a video monitor.

Under the activities of L-J SHIP, eight Japanese experts are working at present, in the fields of Anesthesia, Internet Medicine, Nursing, Hospital Administration and Maintenance. They are going around the hospital with Lao personnel in order to level up their diagnostic skills or other managing capabilities. These things, states the press release, are essential elements for Sethathirath Hospital to become a leading hospital in the Lao PDR. The L-J SHIP project is being supported by the Japan International Cooperation Agency (JICA).
 

WORLD BANK PROVIDES LOANS TO LAOS

The World Bank has released US$ 45 million in loans to three projects in Laos. A macro-economic adjustment credit project for the financial sector, a technical loan for financial management and a poverty reduction fund project received the loans.

The loan was formalized with an agreement between Finance Minister Soukanh Mahalath, and Ian Porter, World Bank Country Director in charge of Lao PDR Affairs.

The US$ 17-million macro-adjustment credit project for the finance sector is designed to support the Lao Government in improving the administration of the state, state enterprises and the financial-banking sector.

The US$ 8.5 million project of technical credit for the implementation of the macro-adjustment in the financial sector will go into capacity building in the macro-economic adjustment of the Government.

The US$ 19.3 million poverty reduction project is aimed at improving the living conditions of rural people, particularly in the provinces of Huaphan, Savannakhet and Champassak.



 

US GOVT PICKS UP EFFORTS TO ERADICATE OPIUM

The United States government has agreed to provide more than US$ 3 million to the Lao government to create infrastructure in rural areas in order to eradicate opium cultivation.

The agreement was made between Soubanh Sritthirath Chairman of the National Commission for Drug Control and Supervision (NCDCS) and US Ambassador Douglas Hartwick on July 18 at the Presidential Palace.

Grant aid from the US government for the fiscal year 2002-2003 is worth US$ 3,622,900. Of this, some US$ 2,622,900 will be utilized for a Crop Control Project including the construction of roads, irrigation facilities, water supplies, markets, schools and dispensaries in remote areas, stated a new release.

The fund will also boost the production of agricultural goods and handicrafts for commercial purposes with a view to turning the people’s earnings away from dependency on opium production and to create new Crop Control Projects in Viengkham and Ngoy districts in Luang Prabang province, it reported.

The other US$ 1 million will be used for the construction of detoxification centers and law enforcement systems to clamp down on narcotics producers, traffickers, users and those who possess narcotics, it stated.

In addition, the fund will also be used to establish rehabilitation centers in provinces where there is a high risk and to establish counter narcotics units in needed provinces.

After signing the agreement, the US Ambassador presented six Toyota pick-up cars to Mr. Soubanh Sritthirath who is also Minister to the President’s Office. The vehicles are worth a total US$ 132,000.

 

PRESIDENT OF JCC MAKES PERSONAL DONATION

Mr. Nakagawa Keiji, President of the Chamber of Commerce of U Chi City of Japan has said that he will present US$ 10,000 as a personal donation to poor Lao children via the Lao Educational Promotion Foundation (LEPF).

His commitment was given yesterday while meeting with Deputy Prime Minister Somsavat Lengsavad. The two men agreed that U Chi city's Chamber of Commerce activities are so far small in comparison to that provided to neighboring countries. In the future, said the president, the chamber would endeavor to increase its assistance to Laos.

Mr. Somsavat Lengsavad, who is also Minister of Foreign Affairs praised Mr. Nakagawa Keiji for his visit to Laos and expressed thanks to the President of the Chamber of Commerce for his assistance.
 

ROK TO FINANCE VOCATIONAL TRAINING CENTER

Vientiane municipality is to have new Vocational Training Center via grant aid from the Republic of Korea’s Korea International Co-operation Agency (KOICA).

To cover a total area of 30,982 square meters, the new center is designed to provide employment opportunities for underprivileged people.

The project of the Laos-Korea Vocational Training Center is scheduled to run from now up to 2005 with a total US$ 2 million covering the establishment of the center and provide training for Lao trainers and students.

The ROK will dispatch experts to help install equipment in the center, train Lao trainers in the center in addition to dispatching Lao trainers to study in Korea.

The Ministry of Labor and Social Welfare revealed that the Laos-Korea Vocational Training Center will train people in five main subjects namely electronics, auto repairs, tailoring, and computer technology.

A minute of discussion on the project between KOICA’s Mission Team and the Ministry of Labor and Social Welfare was signed on July 19 between the Acting Director of the Labor Department and Head of KOICA’s Mission Team.
 

FOOD SECURITY PROJECT IN KHAMMUAN

The NGO, Care International of Australia is set to launch a food security project for the two districts of Nhommalarth and Boulapha in Khammuan province to run from now until 2005.

A memorandum on food security for the two districts in Khammuan province was held at the provincial Agriculture and Forestry Service on July 18.

The Head of Agriculture and Forestry and a Country Director of Care International Australia to Laos signed the memo while Khammuan Governor Leka Kannha witnessed the signing ceremony.

The project will spend over US$ 600,000 for three main works covering upgrading of professional personnel capacity, increasing agricultural production (including the construction of small scale weirs and irrigation facilities), and animal raising for poor families to generate household income. Some of the fund will be spent on purchasing vehicles for professional officials to oversee the project, to purchase 900 tones of rice and to run study tours.

The project is designed under the food for work paradigm. The project will be run in Nhommalarth for the first year, and the second year will see it move to Boulapha. The Care International Coordinator to Laos revealed that the NGO commenced operations in Khammuan province in 1995 with the provision of emergency rice aid and disaster control activities supported by the European Union, the World Food Organization, and the Care International of France.

 
 

CHINA TO FUND FRIENDSHIP HOSPITAL IN LUANG PRABANG

The Government of the People's Republic of China has agreed to grant funding for the construction of the Laos-China Friendship Hospital in Luang Prabang province.

A stone-foundation laying ceremony for the construction of the hospital was held on July 20 in Luang Prabang province and honored by Public Health Minister Dr. Ponemek Daraloi, and Chinese Ambassador Liu Zheng Xiu to Laos and a large number of guests.

China is to be responsible for designing and construction according to Lao style architecture. With modernized and complex wards, the hospital will provide health treatment with both chemical and traditional medicines for local people in northern provinces.

 
 

THREE INDOCHINESE COUNTRIES DISCUSS DRUG CONTROL CO-OPERATION

Laos hosted two separate bilateral meetings with Cambodia and Vietnam in Vientiane, in preparation for the coming trilateral meeting of the three Indochinese countries regarding co-operation in drug control.

The Lao officials were led by Soubanh Sritthirath, Minister to the President's Office and Chairman of the Lao National Commission for Drug Supervision and Control (LCDC). The Cambodian delegation was led by Tengsavong, Deputy Director General of the National Police Department, Secretary of the National Committee for Drug Prevention and Suppression. The Vietnamese group was headed by Le Thi Tiem, Deputy Minister of Police, Chairman of the Committee for AIDS, Drug and Prostitution Control.

The two bilateral meetings reviewed and evaluated the past co-operation in drug control and suppression between Laos, Cambodia and Vietnam as well as co-operation between border provinces of Laos and the other two countries on the basis of the spirit of agreements and memoranda of the bilateral meetings.

In his opening address to the meetings, Mr. Soubanh Sritthirath briefed the participants about the situation of the local opium cultivation and anti-amphetamine campaign in Laos for this year. He continued that the Lao Government exerted all efforts in integrated rural development for poverty reduction with the simultaneous introduction of opium substitute crops, the reduction in drug consumption and the implementation of legal measures.

This year, opium output dropped to 112.4 tones from 117.3 tones last year. The same trend is reported in the number of drug addicts from 58,173 last year to 52,611 this year, and in the areas under opium from 26,837 ha in 1998 to 14,052 ha this year, reported the LCDC chairman.

He continued that the Lao PDR paid attention to control and consumption of psychotropic substances from central to grass-roots levels across the country. Concerning legal measures, a wide scale campaign has been launched to disseminate article 135 of the amended criminal code, which has intensified the penalty to capital punishment for cases related to trafficking of amphetamines and heroine, and life imprisonment for opium-related cases.

In parallel, training and upgrading courses have been organized for law enforcement officers. Drug suppression police units have been commissioned in 11 provinces and will be extended to three more provinces by the end of this year added the LCDC chairman.

He continued that co-operation with neighboring countries has been improved and stepped up, enabling the interception of drug trafficking more efficient. Since the meeting in Phnom Penh last year, the drug suppression officers have arrested 325 alleged drug traffickers, including nine foreigners, in 203 cases.

Interception of drug trafficking at the border checkpoints with Vietnam has been strengthened. Since the meeting in Danang last year, Vietnam, officers have arrested 305 alleged drug traffickers, including 91 women and nine foreigners, in 203 cases. Of the foreigners include eight Thai nationals and one Vietnamese. The seizures include 173.03 kg of opium, 45.52 kg of heroine, 632,382 amphetamines and 669.4 kg of dried marijuana, continued Mr. Soubanh.

Finally, the LCDC Chairman noted that the meetings would serve as an important forum for discussion and an encouragement for further co-operation in curbing cross-border drug trafficking between the two countries. "Understanding and co-operation are important factors for the struggle against drugs and we will try to raise the efficiency of the co-operation", vowed the Chairman of the Lao National Commission for Drug Supervision and Control.
 

EU TRADE PREFERENCES DISCUSSED IN VIENTIANE

The Lao PDR and the European Union have so far experienced good cooperation in the framework of the EU's Generalized System of Preferences (GSP) for Lao goods.

The statement was said by Mr. Siaosavat Savengsuksa, Deputy Minister of Commerce at the opening of a seminar on exports under GSP held on July 25 and 26. The EU has issued new regulations on GSP (not including weapons of mass destruction) for 49 under developed countries, including Laos. These countries are able to export their products (with no limit to quota) to the EU without taxation, said Deputy Minister.

He added that Laos is able to export only 10 percent of its total production to the EU. The exportation covers mainly garments at a total value US$ 310 million last year, he said.

The seminar was designed to increase the quantity of Lao products, particularly agricultural products and handicrafts. The chief of the EU delegation in the seminar said that the new regulations on GSP were aimed at attracting and promoting preferential countries. Laos, especially, he said, will utilize GSP more effectively, to increase more exports to the EU in addition to upgrading the role of the Lao PDR in the world market. GSP also provides a chance for Laos to develop its domestic industry in order to compete with international markets.

The participants also discussed the General Agreement on Tariffs and Trade (GATT), the generation and the importance of GSP and the links between commercial initiatives and policy within the EU. Sponsored by the EU, the seminar was co-chaired by the Deputy Minister of Commerce and the Head of the EU delegation.



 

US MIA REMAINS SENT HOME

Laos has returned a new batch of remains and personal effects of US soldiers missing in action in Laos during the Indochina War excavated in Sepone district, Savannakhet province, back to the United States of America.

At Vientiane's Wattay Airport on July 27, the hand-over of the remains and personal effects of the MIAs was held between Sompheth Khousakoun, Chief of Cabinet, Ministry of Foreign Affairs, and the US Ambassador to Laos Douglas Hartwick.

The presentation was made up of the remains and personal belongings found at the excavation sites of cases 0480 and 0536 in Sepone district, central Savannakhet province. The findings are the result of a unilateral exploration and the implementation of the Lao-US bilateral co-operation plan for the fourth 2001-2002 operation of survey and excavation for remains in Savannakhet province.

Official sources state that 560 US military personnel went missing in the Lao PDR during the Indochina War. A total of 169 have been recovered, identified and returned to their families and the US Government, as a result of the Joint Task Force operation since 1992, with 391 American still unaccounted for in Laos.


 

LAOS ESTABLISHES DIPLOMATIC TIES WITH EAST TIMOR

East Timor is the 114th country to enjoy diplomatic ties with Laos after it gained independence from Indonesia on May 20, 2002. East Timor is located in the southeast of Indonesia.

The agreement on the establishment of diplomatic ties between Laos and East Timor was signed during the 35th ASEAN Ministerial Meeting in Brunei between Mr. Somsavat Lengsavad, Minister of Foreign Affairs and his counterpart from East Timor. The Lao Embassy to East Timor will be located in Jakarta, Indonesia.

Before signing the agreement, Mr. Somsavat and his East Timorese counterpart discussed and exchanged their viewpoints on the potential for future co-operation. Mr. Somsavat confirmed that Laos would co-operate with other ASEAN member countries to support East Timor.

 

 
ACTIVITIES IN WASHINGTON MARK LAO-VIET ANNIVERSARIES

July 13, the Lao and Vietnamese Ambassadors in Washington have jointly held a ceremony to mark the 40th anniversary of their diplomatic ties (September 5, 1962) and the 25th anniversary of the signing of the Friendship and Cooperation Treaty (July 18, 1977) between the two countries.

The Ambassadors took turns, reviewing the historical milestones in their bilateral relations. They affirmed that these ties have not only created favorable conditions for each country's socio-economic development but also contributed to peace and stability in Southeast Asia and the world as a whole.

The special traditional friendship and cooperation between the two neighboring countries would continue to be a bright example in cooperation and assistance for mutual benefit, Vietnamese Ambassador Nguyen Tam Chien and his Lao counterpart, Phanthong Phommahaxay, stressed.

Generations of Laos and Vietnam are proudly responsible for unceasingly developing the exemplary, pure, and loyal cooperative ties that have been forged by the two countries through decades of struggle for national independence and construction, they added.

The two diplomats pledged to enhance cooperation and mutual assistance to accomplish the tasks entrusted to them by the two Parties and people in the new stage.

The ceremony proceeded with sports activities and games and a banquet with special dishes from each nation.

LAOS, THAILAND DISCUSS BUSINESS DISPUTES

A Lao-Thai business and investment mediation committee on July 22 held a meeting in Vientiane, to discuss the settlement of disputes, which will serve as a measure to promote mutual trust and lead to the extension of economic cooperation between the two countries.

The disputes could be classified into two categories: state-private disputes and private-private disputes.

Heading the Lao officials at the meeting was Mr. Bounkeuth Sangsomsack, Deputy Minister of Foreign Affairs and Chairman of the Lao-Thai mediatory sub-committee of business and investment disputes while the Thai side was led by Prachuab Chayasarn, chairman of the Thai-Lao mediatory sub-committee of business and investment disputes.

The meeting studied 19 cases of business and investment disputes. According to the information from the meeting of the Lao-Thai mediatory committee held in Chiang Rai province, northern Thailand, on August 9 and 10, 2001, the committee is considering 34 cases of business and investment disputes, of which 25 cases are grounded with references.

Of these, 12 cases are found to be state-private disputes and 13 are disputes between private individuals. Six of the total cases have been settled.

The meeting considered principles as a guide for the mediation. For state-private disputes, the sub-committee should serve as a mechanism for the facilitation of mediation. For disputes between private individuals, the mediatory sub-committee would ask the parties to lodge a complaint to the mediatory bureau of economic disputes of the Lao PDR or file a lawsuit to a court according to standard legal proceedings. In this respect, the sub-committee will ask relevant state agencies to provide advice.