President Khamtay Siphandone concluded his three-day state visit to China and left for home on July 16 after a short visit to Kunming, capital of southwest China's Yannan province. He held talks with Chinese president Jiang Zemin and met with other senior leaders. The two Presidents said that China and Laos would continue cooperative relations in the years to come. President Jiang said relations between the two countries and parties have been developing well since the normalization of bilateral relations 10 years ago and have yielded positive results. Peace and stability in border areas have been maintained. 

He told President Khamtay "We are satisfied with the smooth development of bilateral relations."

The Lao President said his visit played an important role in promoting the further development of the time- honored friendship and co-operation between the two countries.

President Jiang said that the development of bilateral relations was ensured by both leaders, who have always attached importance to bilateral relations and frequent exchange of visits.

He said they share common ideals and beliefs, taking the socialist road under the leadership of their ruling parties, pursuing the policy of reform and opening-up, and having identical viewpoints on many important international and regional issues.

The two Parties and peoples have supported the development of Sino-Lao friendly relations whether in revolutionary struggle or peaceful times, Jiang said.

He told the Lao President that conditions are favorable and lay an important basis for promoting further all-round cooperation between the two countries.

President Khamtay said the Lao People's Revolutionary Party (LPRP) and the government are satisfied that the bilateral relations and the further development of the long-term stable relationship in the new century conform to the fundamental interests of their peoples.

He also congratulated China for the smooth return of Hong Kong and Macao due to the successful implementation of the policy of "one country, two systems" initiated by Deng Xiaoping.

He reiterated the Lao government belief that Taiwan is an inseparable part of the Chinese territory, saying Laos will continue to support China's reunification and pursue the one-China policy.

President Khamtay briefed President Jiang on the Lao domestic situation, saying that in recent years, Laos has stuck to the leadership of the LPRP with all round and principled guidelines of innovation.

Despite the Asian financial crisis, Laos has maintained social stability and economic development, scoring achievements in both internal and external affairs, he said. He added that all the facts prove that the LPRP is powerful and cohesive, and will lead the Lao people, in overcoming difficulties. 

The two leaders reached common ground on furthering comprehensive and cooperative relations between the two countries, and will as soon as possible sign a document to define the framework for the further development of Sino-Lao relations.

President Khamtay once again invited President Jiang to visit Laos, and the Chinese leader accepted the invitation. 
 

LAOS HAS NO INTERNAL POLITICAL DISPUTES, SAYS FOREIGN MINISTER 

Leaders of the Lao PDR have been working hard for close and integrated ties, having no conflicts or misunderstandings within their leadership, Foreign Minister Somsavat Lengsavad told a reporter from the Far Eastern Economic Review magazine in Bangkok.

The reporter wrote an article in his publication, saying Laos has political problems because some of its leaders prefer China, while others seek support from Vietnam. Mr. Somsavat laughed loudly before he answered the question, saying how the reporter created such an idea.

There has been no quarrel inside Laos' leadership," Mr. Somsavat insisted. He told the reporter that Lao rulers have experienced disputes over centuries. The history has taught Lao leaders to be united. Former disputes among its leaders in the past made Laos fall prey to colonization by other powerful nations.

"Lao people do not want history to repeat itself," he said. He explained to the reporter that Laos has very close ties with both China and Vietnam. The relationship with China has been more and more upgraded. China has assisted Laos during the recent economic crisis by providing soft loans and grants. China and Laos also strengthen trade cooperation because it will help Laos overcome its economic difficulties. At the same time, Vietnam has helped Laos for many decades already.

"Vietnam and Laos have struggled together to liberate their countries. We are very grateful for what Vietnam has done for us. We can never forget it," Mr. Somsavat said.

The reporter then asked whether Laos has other internal political conflicts as he referred to the issues of bombs that recently exploded in Vientiane and the dispute at the southern Vang Tao-Chong Mek border checkpoint earlier this month.

Mr. Somsavat said those two incidents do not mean that Laos has a political problem.
He explained that the bombs could have been caused by business disputes or personal vendettas.
“ No one has claimed responsibility," he reasoned. "Five bombs exploded in Vientiane during the past few months. The first bomb exploded at a very busy restaurant. The second was in Dong Palane village and was associated with a couple's love relationship. The third one was in a car park and caused no injuries. The fourth and the fifth were in public places the bus station and Morning Market. The bombs did not kill anyone as was reported, and only minor injuries occurred. No bomb exploded in Pakse," Mr. Somsavat said.

Asked whether the spate of bombings was linked to the robbery of the customs office of Vang Tao- Chong Mek border checkpoint, Mr. Somsavat said he could not define whether the two incidents were associated. He thought the customs office seizure might have been by a group of bandits or terrorists.

"All countries have both bad and good people. Laos is like other countries, having the same problems as other countries. Why are these bombs that exploded in Laos a matter of surprise to western reporters?" he asked.

The reporter also asked about the anti-government movement outside of Laos, saying there are groups of Lao people, including a son of the former king, trying to form a united front against the Lao government.

Mr. Somsavat said that "Prince Soulivong Savang" was using at the moment was wrong because the prince wants to charge money from working people. "People have worked hard to spend their lives in foreign countries, but the money they save from their hardship is going to an unhelpful person," he said. 

"I beg the prince not to continue this action. He knows that he has no meaning in this country," Mr. Somsavat stressed.

The Vang Tao-Chong Mek incident seemed to be the overriding issue raised by foreign media representatives during the participation of the Lao Foreign Minister at the ASEAN Ministerial Meeting. Mr. Somsavat said he was pleased to answer all of their questions.

From now on, he said, he hoped the foreign media would report accurately about Laos.
"Even my age in your article is wrong," Mr. Somsavat told the Far Eastern Economic Review reporter.
 
 

FOREIGN MINISTER BRIEFS DIPLOMATS ON REAL SITUATION 

To give a clear understanding of the real situation of recent dramatic events, the Foreign Ministry held a briefing on July 6, for heads of diplomatic corps and international organizations, resident in the Lao PDR. The briefing was to give information on the situation, and indicate the stance of the Lao government to the event. Acting Foreign Minister Phongsavath Boupha referred to the number of bomb explosions, the murder of foreigner at a guesthouse, the robbery and murder at a gold shop, and the most recent incident at the Vang Tao check point, Phonthong district, Champassak province.

All of this was the work of opposing people abroad who want to build tip a bad situation, make trouble and cause misunderstandings about Laos. The Acting Minister also spoke of the role of foreign media, which is easily accessible in Laos. Much of the foreign media carries reports, which misrepresent the truth. This causes the viewer/listener to misunderstand the situation in Laos. This is important since this is Visit Lao Year and the Lao government is speeding up the implementation of the national economic and social development plan in the interest of all Lao ethnic groups, in which many-projects are achieving good results. Laos is also improving its cooperation with the countries in the region and the world. He added that the Lao government is not standing still in the situation, but is working hard to bring the criminals to justice.

The government is also improving the security network around the country. He asked for cooperation from the diplomatic corps for information about anything unusual, which might happen. He also talked about the most recent incident at the Lao-Thai checkpoint, Vang Tao- Chong Mek, saying that this event is not a domestic incident, but a border robbery, and the bandits had already been punished heavily by 6 deaths. Two of these were Thais, and some escaped wounded into Thailand, for the humanitarian Lao soldiers were ordered not to shoot as the bandits crossed the fence line.

Asked how the arrested bandits, would be returned to justice in Laos, the Acting Minister answered that an official Lao request had already been transmitted to the Thai authorities under a Lao-Thai government agreement on extradition, when the two leaders had promised safety along the border.
 
 

LAO AMBASSADOR ON EXTRADITION

Lao Ambassador to Thailand Hiem Phommachanh said at a press conference on July 10 that he was very distressed when he heard that bandits from Thai territory had carried out a robbery in Lao territory.

On July 4 Permanent Secretary of Foreign Affairs Bounkeuth Sangsomsack invited the Thai Ambassador to Laos to discuss the matter. He asked the Thai Ambassador to return the bandits to Laos for investigation. On July 5 the Ministry of Foreign Affairs sent a formal request to the Thai Ambassador to be forwarded to the Thai government for the return of the 27 criminals.

The Lao Ambassador said there were many questions to be answered, particularly as the incident followed an official visit to Laos by Thai Prime Minister Chuan Leekpai, a visit which received a friendly welcome. During the visit to Vientiane the Thai Prime Minister reaffirmed his policy to Lao Prime Minister Sisavath Keobounphanh and President Khamtay Siphandone, saying that Thailand would not encourage any terrorist group which opposed the Lao government. The Thai Prime Minister said: "Thailand will not let robbers and terrorists use Thai soil for refuge."

The Ambassador said it was very surprising that the incident happened so soon after the Thai Prime Minister went home.

Of the bandits who were killed, two were Thai, one held Thai nationality, and a fourth was a Lao refugee who holds a Thai identity card.

The Thai media, especially Matison (a Thai language newspaper) reported the names of all 27 bandits detained by the Thai authorities in Ubon Ratchathani. They include 11Thais.

The Ambassador queried how much damage the incident had on the Lao-Thai relationship. He said it impacted directly on the relations between people living along the border, who regularly visited and traded, with each other. The immediate result was that their trade declined and stopped and the numbers of tourist declined.

The other countries in the world might be surprised at the intensity of the reactions when there are good relations between Laos and Thailand, and why this bandit group was able to cross from Thailand to carry out a robbery in Laos when the two countries had signed an extradition agreement last year.

The Ambassador said that the questions that must be asked are: Who are these bandits and where are they from? Who backed them? 

The Thai media reported that there were between 60 and 70 bandits. Such a large fully armed group is not easy to coordinate, and they needed support; how else could they have entered Laos?

The Ambassador reminded the media that the incident occurred only 15 meters inside Lao territory, and after the attack the surviving bandits fled back to Thai soil.

The relationship between Laos and Thailand is different from other nations. These people share long border, the same tradition, and speak a similar language. The two nations signed a Joint Communiqué in 1979 and, a Friendship Treaty.  The agreements provided for peaceful co-existence, non- interference in each other's internal affairs, and mutual assistance in socioeconomic development.

Ambassador Hiem said that he gave an interview to ITV at the Thai Foreign Ministry on July 4. He said the media is a tool, which can persuade people to love each other or to hate each other. It can make people friends or enemies,

He said that Lao and Thai are similar languages; so Lao people can read, watch, hear and understand the words and meanings from Thai TV, radio, or newspapers.

The Thai ITV fabricated report that 3,000 students plus soldiers who were against the government seized the Vang Tao Lao-Thai border checkpoint.

Then a Bangkok Post reporter phoned the Lao Embassy in Bangkok and asked if it were true. Ambassador Hiem explained that it was impossible. From Pakse to Vangtao- Chong Mek is 42 kilometers. He asked the press to imagine how 3,000 people got there.

If they walked, surely soldiers in a Lao village must have noticed them. It would have taken at least 30 buses, and the bus fleet in Pakse is not more than 20.

He said he wrote a letter to the Bangkok Post about its reports on bomb explosions in the Lao PDR. These bombs were not necessarily the result of any one group. He told the newspaper that the acts were carried out by terrorists wanting to destroy the security of the people. But the paper wrote an editorial saying that for any incidents taking place in Laos, first of all one has to see whether there is something behind them. They tried to interpret it in their own way.

He pointed out: "The Lao People's Revolutionary Party unites all ethnic groups to fight the old regime and aggressors. The Lao People's Revolutionary Party, have never had any conflict."

The terrorists caused the bomb explosions and no country, no government in the world, supports terrorism.

However, some Thai media reported the news credibly and gave the correct information.
The Ambassador reminded the media about the Lao government request for extradition of the 27 bandits. "The Thai government has not replied to that letter, we are waiting for a reply," he said.
 
 

VOA INTERVIEWED AMBASSADOR VANG RATTANAVONG

The Senate Resolution 309, expressing the sense of the Senate regarding condition in Laos, will not effect the relations between Laos and the United States, Lao Ambassador to the United States of America gave an interview to the Radio “Voice of America” in July 26, 2000.

The Ambassador stated that there are bad elements, remnants from the wartime living in the United States try to approach some of the US Senators in their constituency in order to submit such a resolution groundlessly criticizing and accusing the Lao Government of violating the human rights practice in Laos. In reality, the human rights in Laos have been guaranteed by the Lao Constitution and Law, and the government is implementing and trying to improve the human rights practice according to the level of the socio-economic development of the country. 

The critics made by the Resolution 309 are untruthful. It is an one-sided view resolution. “In my point of view, I would like to invite the US Representatives and Senators, who are interested in the situation in Laos, to visit the country in order to see Laos by their own eyes. That would be very much better than to listen to some extremist groups that are unwilling to let the US have good relations with Laos,” said the Ambassador. These people have tried to oppose the improvement and development of the relations between the United States and Laos. This resolution would not have any impact on the relations between the United States and Laos, since the resolution is only an expression of the sense of some US Senators. It is a non-binding Resolution and it has no force of Law.  

Laos and United States have good relations and cooperation. The two countries have worked to build a mutually beneficial relationship in many areas, said the Ambassador. Especially, in the field of investigation and recovery of the missing American soldiers during the wartime; the cooperation in the struggle against narcotic drug; the cooperation in the field of clearing UXO in Laos; and the cooperation on investment. However, there are some obstacles remained to be resolved. 

There is a barrier to the improvement of the trade relations between the two countries. The US House of Representatives has not yet passed the NTR for Laos. The US government argued that two American citizens were missing along the Lao-Thai Border, and linked this issue to the passing of the NTR for Laos. Early before, the Christian problem had been raised as an obstacle. Immediately after, the Christian problem had been solved, the US Government raised the issue of the American missing along the Lao-Thai border as the barrier to the improvement of the trade. 

The Ambassador said that, the missing of the two American citizens is outside of the Lao Government responsibility. “We don’t know whether they entered into our country or not. Those two people did not apply for the Lao entry visa, and did not pass through any Lao immigration checkpoint. So we did not have any record about them”, added the Ambassador. 

To throw the responsibility to the Lao government on this matter is totally incorrect. It serves the pretext fabricated by the bad elements living in the United States as an obstacle to prevent the promotion of the relations between Laos and the United States. However, sooner or latter we would overcome this problem, like any other issues that we had in the past, concluded the Ambassador.  
 
 

SECOND MEKONG BRIDGE IN USE 

The Pakse-Phonthong Bridge across the Mekong River in the southern province of Champassak, which began the construction on May 23, 1997, was officially opened for public use on August 2. 

The Japanese government gave a grant of 143 million yen (US$ 1.2 million) for survey and design in 1995-1996, and 5,446 million yen (US$ 50 million) for construction.  The bridge carries a 2-lane concrete road 1,380m long and 8m wide, with a 1.5m path on each side. There are two access roads of 680m and 2,350m. 

Project consultant was the Nippon Koei Company, and the contractors were the Shimizu and Hazama corporations. 

The people living far from Vientiane's Friendship Bridge, in places like Pakse and Phonthong have long dreamed of having their own bridge, and their dream has come true now that the Pakse-Phonthong Bridge has been built. 

Mr. Phao Bounnaphon, Minister of Communication Transport Posts and Construction (CTPC) said that Laos is expected to play the region's role of “Land Bridge” in the Indo-China transport and communications network. The current network does not meet regional demands, so there is a need for improvement of infrastructure to encourage progress in the domestic market and social services. Human resource development is crucial for maintaining and developing the network, he claimed. 

The new bridge is an important event for the Lao PDR because it links both sides of Lao soil in Champassak province. It will improve communications and transport to local and international markets. The bridge is an important contribution from the Japanese government and people to the Lao government and people for their economic and social development. It also links Laos with Cambodia-Vietnam-Thailand, and will draw tourists to the region.

Laos and Japan have had a long relationship of friendship and cooperation. Japan has given assistance in many areas, and particularly in construction. Even though, the financial crisis had affected all countries in Asia, Japan is the leading country for assistance and support to the Lao PDR. 
 
 

MORE PEOPLE, MORE NEEDS

An annual population increase of 2.5 per cent, or about 100,000 people, will deepen problems about basic human needs of supply and demand. 

The Lao population increased from 4.6 million in 1995 to 5.2 million this year, and is expected to reach 10 million by 2025. With a rapid population increase like this, the economic needs of the people increase too, and demand is high. The 2.5 per cent increase every year is faster than any other country in the region; Vietnam is only growing one per cent annually, reported National Statistical Center (NSC). 

The Lao population is growing so fast because the infant mortality rate has dropped drastically, health care has improved, and there are no controls over the number of children in a family.

Food, housing, education, health care, and transport are considered basic human needs for daily living; but these things are subject to normal laws of supply and demand, with the usual limits, for example on the reach of transport.  Areas with low transport access are still poor and lack food, hospitals, and schools. As the country is large, there is a need for wide development, and for an increase in population, though 10 million people may be a limit.  In the next five years the population will boom and the annual increase may be as much as 2.7, predicted the NSC.

People want to improve their living conditions, and want access to food, schools, and hospitals. They also want good roads. However the first and most basic need is for food. The Agriculture and Forestry Ministry says that last year Laos cultivated around 700,000 hectares and produced around 2.1 million tones of rice, up from 660,938 tones in 1975. If we compare the increase in population numbers and the increased rice production, the NSC pointed out, there is enough rice for domestic consumption and no problem.

At present Laos eats more rice per head than anywhere else does in the region, at about 600 grams per head per day. The amount of rice which Laos produce right now is enough to supply the needs of the country, he continued, but there are some areas especially in the north, which sometimes still run short of rice at some time in the year. Partly because our transport is still of low quality and the areas are difficult to access; we can't move rice supplies from places with plenty to help the shortage. 

Currently Laos has a total of 24,000 km of roads, including 3,900 km of tarred roads, 6,900km of graveled roads, and 13,200 km of earth roads.

Over the 25 years of the Lao PDR, the economy has grown fast, with an average annual increase of between 4 and 6 per cent. The country has to improve development in many sectors, including health care, transport, and education.  There is a good deal of development going on in main domestic products such as electricity and garments.
 
 

ELECTRIC POWER IN SOUTHERN PROVINCES 

Southern provinces like Savannakhet and Champassak will have a better power supply when the Xeset-II and III Hydropower Projects in Saravane province come on line.  The Xeset Electricity Dam I cannot provide enough power in the dry season (February to April) because of the water shortage. 

The feasibility study for the Xeset-2 and 3 projects began in November, 1998, and was completed last November, with US$ 1.8 million from the Norwegian Agency for Development (NORAD). The technical part was undertaken by Norconsult Company, Norway, and environment and social surveys were the responsibility of an Australian company. The surveys predicted that neither project would have a serious negative impact on the environment or agricultural production. It would not be necessary to move many people from the project area because the pond area will cover 10 and 20 hectares, and will run like a river.

Project staff are making a detailed study of survey results, which will finish by the end of next year.

It is expected that the need to call on power supplies from Thailand will be considerably reduced. The Assistant Manager said that last year Laos used 173.4 GW/h of electricity from Thailand. Of that amount, the southern provinces used 8 percent, with 21 percent used in Vientiane province, 4 percent by northern provinces like Bokeo and Houaphanh, and 67 percent by Khammuan and Savannakhet provinces.

The detailed plans for construction still have to be drawn up and the project is now looking for funding sources for both projects, but the targets are to finish construction and come on line by 2005 for No II and by 2008 for No III.

The total budgeted cost for dam No II is US$ 107 million and US$ 33 million for No III.
Dam II will provide 76 MW, and will take 2.5 years to build. Dam III will take 1.5 years to construct and supply 20 MW. The second dam will be above Xeset I, and the third will be upstream of the second.

Both II and III are to be small but high capacity dams to provide light to locals and power to sell to Thailand.

Xeset I was built in 1988-91 with US$ 44.4 million of domestic and foreign funding. It produces 45MW of electricity from five turbines. Every September, some water in the pond is, released, to clean the weir area. People in Saravan, Champassak, Savannakhet, Sekong and Attopeu provinces use its power output.

A project official admitted that there is not sufficient power in some areas because the transmission line system is not yet complete, so much of the current surplus electricity from Xeset I is sold to Thailand. By 2010 the transmission line system will almost completely cover the country.

Xeset I has produced and provided electricity to the socioeconomic development of the southern provinces since 1991.  In 1998 the electricity usage was doubled because of a massive increase in demand from the economy and population. 

It is estimated that in the next 10 years, demand will multiply by 13. In 1992 people used 15 million kWh but the demand is predicted to rise 190 million kWh by 2010, over the production of Xeset I and the Selabam dam in Champassak province. This prediction prompted Electricité du Laos to ensure sufficient electricity supply by building Xeset II and III addition. 

The total output of the two projects will be about 390 million kWh per year, which will more than satisfy demand in Champassak and Saravan, as well as near by provinces. In addition, power from the two dams will be sell to Thailand.

The development of the Xeset II and III projects give new hope for the continued expansion of the electricity supply to remote areas, and contribute to the economic development of the southern provinces. 
 

ROAD BUILDING IN CAPITAL VIENTIANE

Communications Transport, Post and Construction (CTPC) department report that over the last 6 months the CTPC had finished some road construction and repaired other roads in Vientiane municipality. The department with national CTPC Ministry support had built 7 roads and repaired 5, with a total length of 35,960 m. The road numbers concerned were 3, 4, 5, 6 and 7.

Road number 2, still being worked on, has had 3,000 m paved with hot-mix asphalt, and road number 1 from Sikai to the Friendship Bridge, had not been funded yet, but CTPC has repaired damage in some places, especially from the fork road of Wattay airport to the fork road of Simuang. To surface and repair this road properly will call for 4.8 billion kip. This financial year the CTPC department had received 3 billion kip, and had spent 1.56 billion kip for the road from Wattay to Simuang, the road along the Mekong River bank, and the road to the National Stadium (100 m x 14 m).

A length of 4,500 in of Road 2 in Hatsayfong was finished, and 70 percent of the 12-km road from Sikert to Dongdok was complete, with estimated completion by the end of this year.
 
 

LAOS RENEWS RENTAL OF THAI SATELLITE 

The government has agreed to pay US$ 240,000 per year to Thailand’s Thai COM. Ltd. to rent its satellite for two more years, from 2000 to 2002.

Terms of the agreement were made public at a signing ceremony held at the Ministry of Information and Culture, in Vientiane. The Thai company contributed motor vehicles and equipment totaling more than US$ 39,000 to clinch to the deal.

The aim of Laos renting the satellite is to enable the nation's television and radio broadcasters to reach a national audience in remote parts of the country.
 
 

NEW ROADS, NEW JOBS

The Japanese government has agreed to fund rural roadwork in Houaphanh province, as part of the campaign to reduce opium poppy cultivation.

Almost US$ 76,000 is being spent on the 43 km of road between Sone Tai and Meuang Pur villages, Viengthong district. Just over US$ 71,000 has been budgeted for the upgrade of the 10-km road between Meuang Oh and Keosik villages, Houameuang district.

In Houameuang district the roads are too small and difficult for vehicles to travel. They are really just tracks often ruined by heavy flooding, isolating the villages from the outside world. On foot, it would take more than a day to travel between villages.

There are about 25,000 families in 89 villages in Houameuang district. Trading was difficult, and agriculture mostly depended on nature, as produce could not be transported to market. 

Communications between Keosik and Meuang Oh villages is easier since the Lao-American integrated Rural Development Project, assisted by the US government constructed a road. Road No 6 started in April 1998, and was completed in February 27, 1999, at a cost of US $1.6 million. It was built by the Namtha Road Bridge Construction Company, and links Houaphanh province with Hanoi, Vietnam. This was part of the Lao- American Integrated Rural Development Project.

The Lao-American Integrated Rural Development Project has assisted substantially in improving the living conditions of the people. Meuang Oh village is in a remote mountainous area where many villages practiced slash-and-burn cultivation and planted opium as their main source of income. The newly constructed road will provide villagers with access to the outside world and allow people the opportunity to receive a better education and health services.

In Meuang Oh village, not a single family is involved in opium anymore, and now farm rice and other crops instead. However, rice farming alone is not enough and many villagers are still active in slash-and-burn cultivation. To reduce this destructive practice they need the government or other organizations to help building irrigation systems to cultivate two crops of rice a year.
 
 

ADB PRIMARY HEALTH-CARE EXPANSION PROJECT

Successful loan negotiations for a Primary Health Care Expansion Project funded by Asian Development Bank (ADB) were held July between representatives of the Lao People's Democratic Republic and ADB. The minutes were signed by Health Ministry- Office Director and ADB Program Officer. 

The project will develop primary health care in the northern provinces of Bokeo, Houaphanh, Luang Namtha, Luang Prabang, Oudomsay, Phongsaly, Sayaboury, and Xiengkhouang. It will improve access to, and quality of essential preventive and curative health services at village heath center and district levels in 34 underdeveloped districts (with a total population of 0.9 million) and improve referral services for 1.7 million people. It will also strengthen the institutional capacity of the Health Ministry and all provincial health offices to plan, manage, monitor, and finance primary health care. The project will contribute to government goals of improving the health status and reducing poverty, in particular by targeting women, children, ethnic minorities, and the rural poor.

The total estimated cost is US$25 million, $20 million of which will come from ADB special concessional funds, with a 32 year period, a grace period of 8 years, at 1.0 percent per annum interest during a grace period and 1.5 percent her annum thereafter. The project will be implemented over six years, from the end of this year. 
 

JULY GOVERNMENT MEETING RESULT

A government meeting chaired by Prime Minister Sisavath Keobounphanh was held in Vientiane July 24- 25 to evaluate results from the last month.  Participants discussed issues, which included implementation of the socio-economic plan report and of the 1999-2000 budget, and passed the 2000-2001 socio-economic development plan.

They also evaluated the last five year plan (1996-2000) for socio-economic development, considering in particular the economic and financial situation, which they considered to be more stable because of the tight government guidelines on food and goods production, to fight inflation, control prices, and maintain the exchange rate.

According to preliminary estimates, the 1999-2000 gross domestic product (GDP) increased 5.9% over fiscal year 1998-1999 (the target is 5 per cent), agriculture and forestry has increased 4.4%, industry and handicraft 7.3%, and social services 6.4%.

They also considered and passed the telecommunications and public health draft laws. These will be considered and amended as necessary by the law preparation committee before being submitted to the fifth session of the National Assembly (fourth Legislature).

The government meeting reviewed July and the government focus plan for August. In July, the political and socio-economic situation stabilized. Inflation fell to 21 per cent and goods prices were steady. For August, the meeting agreed to encourage rainy season rice cultivation and the fight against animal diseases, and to encourage better preparation against flooding.
 
 

LAO FIRMS WIN ADB CONTRACT

Local Lao consultant companies Lao Consulting Group (LCG) and Rural Development Specialists (RDS) were recently awarded the ADB (Asia Development Bank) contract for 5-year Shifting Cultivation Stabilization Project in Huaphanh Province.

The general objective of the project is to reduce slash-and-bum, introduce sustainable farming, and reduce opium planting, by providing better returns from alternative crops and improved yields from existing agricultural activities.

LCG was lead firm joined by RDS, another Lao firm, and claims that this may be the first time that a Lao company as lead firm had won a major ADB contract, adding that competition was fierce and made up of mostly international firms.

LCG Director pointed out how beneficial this was for the Lao economy. It shows that the capacity now exists within the country to manage large-scale projects. It is no longer necessary for foreign firms always to take the lead role, and there are also other revenue advantages for the Lao economy.

ADB project economist Robin B. Erickson said the project is worth US$ 8.8 million, which includes US$ 1.7 from the Lao government, US$ 5.6 ADB loan, US$ 1.3 UNDCP assistance, and about US$ 100,000 from villagers. The project will run from this August to 2005.

Houaphanh Governor Cheu Ying Vang said that 65 percent of the 250,000 farmers in Houaphanh still do slash-and-burn. Every year since 1995 the government has spent about 100-150 million kip to stop slash-and-burn and reduce the opium crop planting. So far 145 villages have stopped slash-and-bum.
 
 

US MIA DELEGATE VISITS LAOS

A US MIAs mission visited Laos to further discuss the issue with Lao officials as there are still over 400 Americans missing in action (MIAs) in Laos. 

Deputy Assistant Secretary of Defense Robert L. Jones told the press during his official visit to Laos August 11-13 that he planned to meet with important government officials to consult on the work of Joint Task Force-Full Accounting Detachment Three in Laos. He planned to go to where the search for American MIAs is being conducted in the northern province of Huaphanh.

More than two million tones of bombs were dropped by the United States during the Indochina war in Laos. The Unexploded Ordnance program UXO-LAOS reports that many of the bombs dropped by US planes on Lao people during the war did not detonate. When asked if the US government felt any responsibility to help Laos to deal with the unexploded ordnance, Mr. Jones replied that his office was not directly responsible. However, he said, the US government had provided more than US$ 13 million to assist Laos to resolve UXO problems. His team was conducting an operation to excavate aircraft crash sites. If his team found exploded ordnance his experts would take that ordnance and centralize into one location and report to the Lao Defense Ministry, so that Lao experts trained by the US can deal with that unexploded ordnance. 

The UXO-LAOS work-plan for this year reported that over 107,000 tones of UXO were destroyed between 1996 and 1999 with donations from more than ten generous countries for the unexploded ordnance program of clearance in the Lao PDR. 

Mr Jones said: "My office has encouraged a program called Veteran-to-Veteran and has asked American veterans who served in Laos, who might have information related to missing Lao persons or may have materials relating to soldiers who were disabled during the war, to provide such information and materials to Lao government to facilitate accounting and/or humanitarian assistance to those disabled." 

Asked about responsibility for people who were injured by UXO, he replied that the US had developed training and sponsored UXO-LAOS, and provided US$ 1.5 million a year. 

He said that his trip here has emphasized that there are issues remaining for the relationship between the US and Laos, which continues to be a high priority. 

Asked about the current status of American MIAs, he said that there are 2,014 in Southeast Asia (427 in Laos). The US government is actively pursuing 1,372 missing Americans in Southeast Asia, including 401 in Laos. 

Since 1973, 569 Americans have been accounted for Southeast Asia (142 in Laos). There were 1,170 Americans in the “further pursuit” category (373 in Laos), 202 Americans in the “deferred category” (28 in Laos), and there were 642 Americans in the “no further pursuit” category ( 26 in Laos).
 
 

ASEAN COCI CULTURE SUB-COMMITTEE MEETS IN LAOS

The ASEAN COCI Sub-Committee on Culture held a meeting August 1-3 at Vientiane to evaluate ASEAN culture development projects and projects with dialogue partners. COCI stands for Committee on Culture and Information 

All 10 ASEAN member countries were represented at the meeting, which was attended by more 60 people, and participants presented and discussed new project proposals. The event gave an opportunity for Lao cultural workers, planners, policy-makers and academics to learn more about ASEAN COCI, and especially the sub-committee on culture. 

Apart from reviewing and evaluating projects being implemented, the meeting considered newly proposed cultural projects. Laos has previously proposed nine project most of them about Lao culture. In this meeting Laos presented proposals for six projects, including a picture book about cultural heritage, nature and lifestyle of people, and a project for publishing Lao proverbs in the English language. 
The sub-committee looks to help preserve ASEAN member country cultures and to spread understanding of and access to these cultures for all member countries. 

The ASEAN Declaration on Cultural Heritage, signed by ASEAN Foreign Ministers on 25 July in Bangkok (Thailand), marked a good beginning for the preservation of cultural heritage. The declaration, with the Hanoi Plan of Action, will be the guideline for a cultural program.
 
 

USA DONATES VEHICLES TO UXO LAO

The United States Embassy to Laos donated 17 off-road vehicles and 22 motorcycles to the UXO LAO program at the national bomb clearing operation's National Training Center in Ilay village. The vehicles are valued at US$ 656,402 and are to be used in clearance activities of UXO Lao personnel. The latest donation on July 14 by the U.S. government brought its total support to over US$ 13 million.

Since the establishment of the UXO LAO program in June 1996, the United States provided training of UXO clearance personnel as well as training Lao UXO trainers and donating equipment in-kind.

These vehicles will be used for field operations in Houaphanh, Luang Prabang, Xiengkhouang, Khammuan, Savannakhet, Champassak, Sekong, Attopeu and Saravan provinces.
 

LAOS STANDS FIRM ON ASEAN RULE 

Lao Foreign Minister Somsavat Lengsavad told BBC TV reporters on July 23 in Bangkok that Laos and the other ASEAN countries have to respect the ASEAN principle of non-interference in the domestic affairs of individual member countries.

"This should be an immortal rule of ASEAN," the Minister stressed, saying that the 4000-year history of the development of the world has demonstrated that there is conflict rather than peace if one country interferes in the political affairs of another.

He said that in the new era of globalization, this principle was even more necessary because the new era needs peaceful cooperation. "If we want civilization and justice, then we have to respect this rule," he added.

When asked what would happen if a special committee, called a "Troika", were established to deal with any special issue that one country could pot solve by itself, Mr. Somsavat said the Troika Committee system operates according to the agreement of the governments of all ten ASEAN members.

This means a Troika cannot be formed if one of the ten ASEAN member countries disagrees with the issue.

The BBC reporters asked whether Laos was experiencing benefit from its ASEAN membership, Mr. Somsavat said Laos has gained a lot from membership, especially by a strengthened relationship with other nations.

Questions were also raised about the relationship with Thailand resulting from a border incident earlier this month. Mr. Somsavat answered that Laos and Thailand have been continually improving their fine relationship since the border conflict in 1988. He said that the problem, which arose on July 3, should not cause a breakdown in the friendly relations, which the two countries have worked for so long to create. He said that both countries are now working together to solve that specific problem, explaining that Laos and Thailand have three joint committees who work together closely to solve border problems.

The interview gave BBC reporters a fresh view on Laos, as the Foreign minister told them something about the difference between the real Laos and the mythic Laos, which existed in the minds of the western media. "Laos is more stable, peaceful and secure than the western media think. Laos has no human rights problems,” he said. “ I would be very pleased to welcome you to my country to see what Laos is really like”.
 
 

VIETNAM-LAOS WORKING GROUP MEETING ON BORDER 

The Vietnam-Laos joint working group on border held its meeting in Thakhet Township, Khamouane province, Laos.

The two sides discussed the orientation on controlling the Vietnam-Laos borderline in the next 10 years until 2010. They reviewed the one-year implementation of the minutes of the 9th meeting.

In the spirit of frankness, sincerity and mutual understanding, the two sides held that the conference to review 10 years of implementation of the two countries' agreement on borderline regulations which was held in Hanoi last April, was important to, the two countries' borderline activities.

Director of the Vietnamese Government Border Committee and Lao Deputy Foreign Minister, who is also Chairman of the Laos-Vietnam Border Committee, signed the minutes of the 10th meeting and of the conference to review 10 years of implementation of the agreement on borderline regulations between the two countries.

The two sides expressed the determination of their Governments and peoples to build the Vietnam- Laos borderline into one of peace, friendship and stability.
 
 

LAOS JOINS EC-ASEAN COOPERATION AGREEMENT 

The Lao PDR is now a member of the European Community-ASEAN Cooperation Agreement, following the signing of a protocol providing for its accession to the Agreement at a ceremony held in the margins of the ASEAN Post Ministerial Conference in Bangkok on July 28.

The Agreement is the basis on which cooperation between the EC and ASEAN on trade, economic, and development matters has evolved and deepened over the past twenty years. Participation in the Agreement allows Lao PDR and Cambodia to be involved in European Community (EC)-ASEAN activities. Both sides are now working on a number of projects designed to enhance trade and investment between the two regions and to promote mutual understanding. 

These include sectoral programs dealing with standards, energy, environment, business links and education. The current EC contribution to ongoing ASEAN-EC cooperation programs stands in excess of 100 million euros.

Signing on behalf of Laos, Foreign Minister Somsavat Lengsavad said, "I would like to express my high appreciation to Thailand and Singapore, our ASEAN and EU colleagues as well as the ASEAN Secretariat for their assistance to the Lao PDR in its preparations for ASEAN-EU relations."

Cambodia acceded to the Agreement at the same time as Laos. Myanmar, also a new member of ASEAN, was not accepted in to the ASEAN-EC Cooperation Agreement because of EC reservations over Myanmar's progress in terms of democracy and human rights.

"The European Union has strong bilateral relations with both Cambodia and Lao PDR. The extension of the agreement to include these two countries will however help them integrate further into important areas of ASEAN-EC cooperation," said President in office of the Council of the EU Charles Josselin at the ceremony.

Cooperation between the European Union and the Association of Southeast Asian Nations has its basis in the 1980 EC-ASEAN Cooperation Agreement. The Agreement was signed by the European Union on the one hand and the individual countries of ASEAN on the other. At present, Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam are all signatories. The Lao PDR and Cambodia just acceded to the Agreement on July 26.

Since 1978, ASEAN-EU Ministerial Meetings have taken place every two years and since 1995 it has been agreed that EU-ASEAN senior officials would meet between ministerial meetings.

According to a press release from EU delegation to the ceremony, the EU has been a longstanding dialogue partner of ASEAN. The EU and ASEAN share an over-riding common goal, a commitment to regional peace and stability. However, the EU was not satisfied with the admission of Myanmar to ASEAN 1997 so the EU- ASEAN Ministerial Meeting in Berlin in March 1999 was postponed. The EU, however, later realized that its stance towards Myanmar should not affect its relationship with ASEAN.
 
 

SCHOLARSHIPS FOR HMONG, KMOU GIRLS

The People and Neighbors Project (PNP) of the Republic of Korea will help four Lao ethnic minority girls through their training to become English teachers starting in the coming academic year.

The girls will be selected by the Basic Education Girl Project in cooperation with the Teacher Training Department. The Project will pick two Kmou ethnic girls from Luang Prabang and Oudomsay provinces and two Hmong girls from Luang Namtha and Xaysomboun Special Zone.

The project will provide scholarships to the girls because Lao ethnic girls have less educational opportunities, said PNP International Director.

The girls will study at Bankeun Teacher Training College, Vientiane Province with scholarships worth US$1,200 each coming from donors in Korea. Each parent donor helps each girl for four years study until she gains her teacher qualification. After qualifying the teachers have to work in their own provinces for at least four years. The project also has plans to give scholarships to boys too when it has raised enough money. 
 
 

EXPLOSION AT POST OFFICE

More than five people were injured by a bomb explosion at the Vientiane Post Office on July 31, at 10:50 in the morning. One of the injured was in a wheelchair, but there were no reports of death. It may have been fortunate that only five people were injured as the bomb exploded at a busy time for the Post Office, on the first working day of the week.

One of the injured people was a handicapped man in a wheelchair, who came to collect a packet and was unable to protect his body from the bomb. The explosion was in the parcel collection service point 13 in the main building.

All of the injured were taken to the Mahosot and 109 Hospitals. A few minutes after the bomb exploded, more than fifty police and soldiers arrived to investigate and interview witnesses. This latest explosion in Vientiane brings the total to seven in the last three months.
 
 

LUANG PRABANG AND LUANG NAMTHA BURN DRUGS

A total of 72,000 amphetamine pills and 13.9 kg of opium were burned on June 26 in Luang Prabang province by the province Drug Control and Supervision Committee.
The ceremony was witnessed by Luang Prabang province Vice Governor, representatives of NGOs, and province staff.

This was part of the International Day Against Drug Abuse and Trafficking (June 26).
To mark that day, in Luang Namtha province 25,000 amphetamine tablets, 5.3 kg of heroin, and 3.6 kg of opium were burned.
 
 

TOURISTS INCREASE IN LAOS

The National Authority Tourism (NAT) opened its 8th training course in Vientiane Municipality, with 65 tourist guides from around the country. 

Deputy Trade and Tourism Minister Jeng Sayavong said that tourism is important in the socio- economic development of the country, because every tourist brings a lot of money. Since our country opened to international tourism in 1990, the number of tourists has increased from 14,400 to 614,278, an average increase of 22.81 % per year, and the number of rooms has risen from 1,989 rooms in 1992 to 5,544 last year. The amount of tourism investment expanded from US$ 2,470,000 in 1992 to US$ 605,105,713 in 1998. 

The tourist development plan not only brought income to the country, but it employed more and more people and supported production.