The National Assembly- closed its Fifth Ordinary Session in April, with the adoption of new laws on Road Traffic, Education and Pharmaceutical and Medical products.

However, the session was not able to agree on amendments to articles on criminal law and on the draft law of Local Administration as planned. Time ran out, but Justice Minister Kham-ouane Boupha read the Local Administration Law at this session. Some of these articles and local administration will be considered, adjusted, and approved at the next session. 

NA members heard a report on implementation of the first six-months of the socioeconomic development plan for fiscal year 1999-2000, and a report on the election of a new member to represent the 18th constituency of Saysomboun Special Zone.

The NA President added that socioeconomic development has increased especially for agricultural production for domestic consumption and for trade. The country is continuing in political stability and the kip exchange rate is stable.

The NA President also congratulated the NA members on amendments on new laws and the guidelines to implement the last sixth-months of the state budget plan. The socioeconomic development plan involves the government theme of building the province as a priority unit of economic development, with districts to be planning units and villages to be the units of implementation.

The law on Land Communication comprises nine chapters and 36 articles, the Education law has ten chapters and 53 articles, and Pharmaceutical and Medical products law has eight chapters and 44 articles.
 

LAOS ELECTED TO UNICEF ADMINISTRATIVE COUNCIL 

On May 3, in New York, UNICEF's Economic and, Social Council (ECOSOC) elected 14 new countries to the administrative council, to take their seats at the start of next year. Four countries were nominated for the 3 Asian area seats - Laos, Indonesia, South Korea and Yemen. The election resulted Laos, Indonesia, and Yemen being given ECOSOC seat for 3 years.

ECOSOC comprises 36 countries, including 7 from the Asian region. The council task is to support, monitor, and evaluate the international work of UNICEF. This is the first time that Laos has been elected to a seat on ECOSOC to oversee the work of the body which the country has been a member of for more than 30 years.

The Lao PDR will be involved in work such as the protection of the rights of the world's children, supplying their basic needs, and making available the opportunity for children to exploit their full abilities. Laos will be part of Policy-making and upgrading of UNICEF aid worldwide. The Lao Foreign Ministry in a statement said that the election of Laos to ECOSOC demonstrates the country's commitment to the work of the United Nations and its agencies and further establishes the country on the world stage.
 
 

LAOS, CAMBODIA SIGN THREE AGREEMENTS 

The Lao People's Democratic Republic and the Kingdom of Cambodia on April 24 signed three agreements during a cordial official visit to Cambodia by Prime Minister Sisavath Keobounphanh. The agreements include cooperation in information and education for the 2000-2003 period, and cultural cooperation.

The first two agreements were signed by Lao Deputy Prime Minister and Foreign Minister Somsavat Lengsavad and Cambodian Senior Minister and Minister of Foreign Affairs and International Cooperation Hor Nam Hong. Signing the third agreement were Lao Information and Culture Minister Sileua Bounkham and Cambodian Culture and Fine Arts Minister Princess Bopha Devi.

The signings are under the 1993 agreement on economic, scientific, technical, and cultural cooperation, and in accordance with the minutes of the fourth meeting of the joint committee on bilateral cooperation in Phnom Penh on December 13-14.

The information cooperation agreement emphases drawing lessons from cooperation, with exchange of visits and consultations with ministers and technical officials, especially covering the media. The two countries will publicize each other's national days and holidays.

The agreement on education cooperation includes an annual student exchange, with six Lao students to Cambodia to study Khmer literature and language and six Cambodian students to Laos to study Lao linguistics and literature. The agreement further stipulates exchange by officials at various levels to draw lessons on education.

The cultural cooperation agreement stresses exchange visits at different levels and with traditional and contemporary performers, facilitating relations between cultural and artistic associations. It also covers support for exchange visits and consultations between border provinces.
 

LAO, VIETNAMESE PRIME MINISTERS MEET

Lao Prime Minister Sisavath Keobounphanh asked Vietnamese Prime Minister Phan Van Khai for a 50 percent reduction in the tax on goods exported from Laos to Vietnam at a meeting during the Vietnamese Prime Minister's three-day official visit to Vientiane.

After a greeting ceremony at the National Assembly, the Lao and Vietnamese Prime Ministers and their delegations, met at the Prime Minister's Office to review and further strengthen the close and special relationship and solidarity between the two countries, and to expand all-round cooperation between their parties, governments and peoples.

During the meeting the Lao Prime Minister asked his Vietnamese counterpart to consider and advise the concerned sectors to halve the import tax, which is imposed according to an agreement between the two countries. Laos has for the last two years reduced by 50 percent the import tax on Vietnamese goods entering the Lao PDR. The Lao Prime Minister sought agreement on other fees, and asked for a joint team to work on the Economic Triangle Development project.

Prime Minister Sisavath spoke of outstanding development issues such as measures to overcome the effects of the Asian economic crisis. Laos has reduced the inflation rate from last year's 140 percent to 45.4 percent last months, stabilizing the exchange rate of the kip. The Lao Prime Minister also talked of agricultural production, saying that last year Laos produced 2.1 million tones of rice, enough for domestic consumption with a reserve and some exports. At the same time Laos has encourage the processing industry and handicrafts for domestic use. Foreign investment has been increasing since the economic crisis, and since the beginning of last year there have been 77 foreign investment projects worth more than US $155 million.

Prime Minister Sisavath told the Vietnamese Prime Minister about the 2000-2001 economic development plan, focused on implementation of the government eight priority plans. These include foodstuff production, production of goods for export, stopping slash-and-bum cultivation to preserve the forest (to “make the green gold”), rural development to eradicate remote area poverty, building infrastructure, services, foreign cooperation and human development resources.

Prime Minister Sisavath covered Lao-Vietnamese cooperation since the two governments met in July 1998 in Hanoi, which concerned ministries, have been implementing actively. This cooperation is particularly in agriculture, forestry and irrigation, trade and tourism, human resource development, information and culture, health, labor and social welfare.

After the meeting the agreement on construction of Road 18D in Laos was signed by Laos-Vietnam Association Vice President Phimpha Thepkhamheuang and Deputy Planing and Investment Minister Lai Quang Thuc. 

This project involves a loan of US$ 35 million from the Vietnamese government to build a 150-km asphalt and concrete road from Attopeu province to the Vietnam border.
 

LAOS EXPECT TO GET 2.2 MILLION TONES OF RICE THIS YEAR

The Ministry of Agriculture and Forestry is forecasting a total rice harvest of 2.2 million tones (1.6 million tones of wet season production, 600,000 tones in the dry season) this year.

The Ministry is encouraging its staff in all provinces, the Municipality and the Special Zone to encourage the farmers to make haste to harvest the dry season rice to avoid rain damage, and to prepare early for the wet season rice, take measures against the possible onset of drought or flood, and carry out all preparations, checking on machines, agricultural equipment, water pumps and soil improvement. Farmers are in particular urged to choose high quality rice seed. Officials are providing technical training courses for farmers in both large and small arable areas.

The department also encourages farmers to plant wet and dry crops, especially corn, beans, and sugar for consumption, for the market and to supply Lao food processing factories.
 

LAO PARQUETRY FAVORED IN JAPANESE MARKET 

Lao parquet flooring has established a great market in Japan. The Master Flooring Company (MFC) currently has a backlog of Japanese orders and is finding it difficult to keep up with the demand. Each month the company receives orders for around 6-8 container loads, each container comprising 22 square meter of flooring. However, the company can currently supply only three containers per month.

The Garden Furniture Sets are most popular, to be used in the building of Japan garden-style housing.

The Lao hardwood parquet flooring exported to Japan is priced at around US $20- 30 per square meter. Last year the company supplied more than 450 square meters of flooring. The company pays the Lao government more than 30 million kip tax every year.

Most of the wood comes from Vientiane, and the MFC has been buying more than 100 square meter a month. The company has only 8 machines able to produce only two squares meters a day. The MFC has been in business in Vientiane province for 13 years, and now employs 140 workers and three experts. 

The company has a development and expansion plan, and will import new machinery for producing parquetry and buy 8 more machines if the business stays as good. 
 
 

NAM LEUK POWER COMING DOWN THE LINE 

The Nam Leuk Hydropower Station in Saysomboune Special Zone will run its first turbine and generate electricity by the end of this year, barring unforeseen delays.

Construction work started late 1996 and was completed in February 18 this year. Right now, it is producing electricity for the Pakxan electricity station. The Nam Leuk hydropower dam started producing electricity April 2 after synchronizing work on the powerhouse was completed.  The Nam Leuk dam has the capacity to produce 60 megawatts (MW) of electricity, and the US$ 110 million construction project is an investment of the Lao government.    

The project has involved the construction of a reservoir, with most of the flow being diverted by a weir on the Nam Ngum Basin. The reservoir also receives water from a weir on the Nam Poun River, a small tributary of the Nam Leuk River. Reservoir water is tunneled down about 170 meters to the Nam Sane valley.

The electricity will be generated at the new powerhouse on the left bank of the Nam Sane River and at the existing Nam Ngum powerhouse.

The dam creates a 12.8 square meter reservoir within the Phou Khao Khouay National Biodiversity Conservation Area. Electricité du Laos (EDL) has started construction of a supply grid to the capital of Saysomboun Special Zone, the neighboring provinces of Xiengkhuang and Bolikhamsay, and the project site in Long Sane district. Hydropower in Laos is currently generated by Nam Ngum Dam (15OMW), Seset (45MW), and Selabarn (5MW). About 65 percent of the power are exported to Thailand, earning US$ 30 million in annual income, making EDL the biggest contributor to the national budget.

A power market has already been agreed through inter-government Memorandums of Understanding signed with Thailand for the export of 3,000 MW by 2006 and with Vietnam for the export of 1,500 to 2,000 MW by 2010.

The Nam Leuk dam will be able to generate an annual income of about US$ 7 million. The power travels via two 115 kV lines from Nam Leuk to Pakxan and to Nam Ngum powerhouse
 
 

GOVERNMENT EVALUATED THE OUTPUT 

A Government meeting chaired by Prime Minister Sisavath Keobounphanh was held to evaluate the output in May. They discussed improvement and encouragement of production, fulfilling the Party economic development line and priority planning. They considered 2001-2005 goods production and ways to encourage state and private investment, such as trade priority, tax reductions, and customs duty exemptions.

They heard a report on dry season cultivation and the 2000 rainy season production plan. This year dry season rice cultivation is on 91,860 ha or 83.5 percent of the plan. The shortfall was blamed on the unprecedented cold snap and a continuing lack of water. Vegetable production in the municipality covered 656 ha, more than the plan. This rainy season, the government has an accelerated plan for 1,635,000 tones of rice on 510,000 ha, an increase of 20 percent in fish production, and a 4 per cent per year increase in animal husbandry, aiming to produce 86,200 tones of beef.

They also discussed the Vientiane urban development plan and the development of Vientiane Municipality as a political, economic and cultural center, and a beautiful and modern city. A Board to lead Vientiane city development, chaired by the Deputy Prime Minister, was also appointed.

Participants also discussed and called for a review of the results of the 1999-2000 socioeconomic development plan and budget, and for preparation of 2000-2001, 2001-2005 and 2001-2010 action plans, based on domestic potential in collaboration with the improved foreign relations and cooperation, particularly with close neighbors.

The government meeting also reviewed the May situation and government focus work plan for June. In May, the political and socioeconomic situation stabilized. Inflation fell to 34 percent and goods prices were normal. For June, the meeting agreed to encourage the dry rice harvest and better preparations for the rainy season rice cultivation, achievement of the tree plantation target, and prevention of animal diseases.
 
 

NATIONAL ROUTE 9 UPGRADING  

Since a ground-breaking ceremony last December to start the 20km stretch of National Route 9 from Seno to Phalan district in Savannakhet province, contractor Obayashi Corporation has finished temporary works and commenced asphalt paving under the supervision of JICA, acting for the Japanese government and the Roads Department.

The road is designed to international standards suitable for the East-West Trunk Highway. The two-layer asphalt paving is 10-12 meters wide, with 7 meters of roadway.

The Japanese government in a May 23 Exchange of Notes has promised financial assistance to another 53 km road stretch from the 20 km point to Muang Phalan, and will finance a third 60 km stretch from Muang Phalan to Muang Phin.                   

For the ADB-funded 18-km of road from Muang Phin to the Vietnam border, tenders were submitted last month. The whole road from Seno to the Vietnam border is expected to be completed by 2003 or 2004.
 
 

COOKING OIL MADE IN LAOS

The first cooking oils factory of Laos, the Sengsavang Cooking Oil and Plastic Bottle Factory, has been operating on a pilot basis and will officially be inaugurated soon.

The factory, on Phontong Road, Savang village (Chanthaboury district, Vientiane Prefecture) has a registered capital of one billion kip. The oil will be marketed in one-liter transparent plastic bottles or 18-litre metal containers.

The oil will be produced from palm and Soya bean, initially imported, though eventually the factory aims to use local crops.

The factory has a bottling capacity of 60 liters a minute (800-900 bottles per hour) and a storage capacity of 60 tons. The product will reduce imports, easing hard currency outflow.
 
 

LAO EXPORTS INCREASE 

Industry -Handicraft Minister Soulivong Dalavong has announced that Lao exports last year increased 7.96%. Especially important were sewing, timber, wood products, electricity, coffee, and handicraft products.  

The amount of industry product exports is small because not a great deal is produced and there are few factories. Also the quality is not yet high enough for the foreign market and many raw materials are still imported. At present the biggest exports are raw materials such as minerals, sawed wood, coffee, logs, and other forest products.

The Minister said that to support exports, our government needs to upgrade and strengthen basic industry development, including support policy.
 
 

NEW ZEALAND SUPPORT THE UXO-LAO  

A New Zealand-financed equipment warehouse has been built at the UXO- Lao National Training Center, Ilay village, Nasaythong district, Vientiane municipality.
Construction began November last year and was finished on February 2000, at a cost of around US$ 20,000.

UXO Lao works in 9 provinces of Laos with a substantial logistical system, and the new warehouse will assist in improving the speed and efficiency of deliveries.

The Lao National UXO Program was established in 1996, with two main tasks community awareness, and unexploded ordnance clearance.  The two objectives are to reduce death and injury and to increase the area of land for food production and other development. 

The UXO- Lao Program has received funding from many donor countries and other international organizations, among them New Zealand, which had been a supporter from the beginning.
 
 

LAO-VIETNAMESE FRONT COOPERATION 

Laos and Vietnam have shared experiences on their Front work during a visit to Laos by a delegation of the Vietnam Fatherland Front (VFF) led by Central Commit General Secretary Tran Van Dang.

The VFF delegation held talks with representatives of the Lao Front for National Construction (LFNC) headed by acting President Siho Bannavong. They briefed each other on their countries' socioeconomic situations and activities of mass organizations in mobilizing the people to implement Party and State policies in the renovation process. They also compared notes on the functions, role and duties of the Front.

It was hoped that the experiences shared by the two delegations would contribute to the success of the upcoming National Congress of the LFNC.
 
 

HOST COUNTRY AGREEMENT BETWEEN LAOS AND ADB SIGNED 

ADB President Tadao Chino and Mr. Bounnyang Vorachit, Deputy Prime Minister and Minister of Finance of Laos in May signed the agreement for the establishment of an ADB Resident Mission in the Lao PDR. This will pave the way for the official opening of ADB's Resident Mission in Vientiane.

ADB has extended development assistance to the Lao PDR since 1970. As of December 1999, cumulative lending to the Lao PDR consisted of 46 loans amounting to US$ 827 millions. In addition, technical assistance grants for 171 projects amounting to US$ 76.5 million has been provided. In the 1970s and 1980s, ADB assistance was focused mainly on economic growth projects involving infrastructure development in the transport and energy sectors. Financial sector development was also assisted by ADB in the latter part of the l980s.

Since the early 1990’s, the emphasis of ADB assistance to the Lao PDR has been broadened to include rural development, social development and environment.

The establishment of an ADB Resident Mission is expected to significantly enhance the effectiveness of the Bank's operation in the Lao PDR.
 
 

AMERICAN GROUP DONATES TO PHONE HONG HOSPITAL 

Vientiane Province's Phone Hong district hospital recently received US$ 84,000 worth of medical equipment from American Organization Project Hearts and Minds-Laos.

The donation was officially made to officials from Phone Hong Hospital Lao-Thai Cooperation (PHHLTC) at a ceremony in May.

The hospital, 70 kilometers north of Vientiane, is a main health care facility for the province. 

PHHLTC director expressed his thanks to the Americans for their kind donation and the previous donations to his hospital. The staffs have a better understanding of medical supply inventory and management using database systems because of these generous donations. 
 
 

IMF MISSION TO DISCUSS LAO ECONOMY

A ten-day visit by an IMF mission led by Indochina Division Deputy Chief Hisanobu Shishido ended on May 15. The mission was to lay groundwork for future negotiations for financial assistance under the Poverty Reduction and Growth Facility (PRGF).

The mission met with Deputy Prime Minister and Finance Minister Bounnyang Vorachit; head of the Prime Minister's Office Saysomphone Phomvihane; National Assembly Budget and Finance Committee Chairman Bouasy Lorvansay, Bank of Lao PDP, Governor Soukanh Maharath; Commerce and Tourism Minister Phoumi Thibphavone; and Minister to the President's Office Soubanh Sritthirath.

The mission also discussed possible Lao economic reforms at a workshop chaired by Deputy Minister in the Prime Minister's Office Mrs. Khempheng Pholsena. The workshop was attended by members of the Lao Counterpart Committee for International Financial Institution and other officials.

Authorities will now study the mission analysis; prepare more detailed information as requested by the mission; and convene a meeting of interested donors to discuss the Lao macro-economic outlook.

The mission then returned for negotiations for financial assistance under the PRGF. Since the beginning of the Lao reform process, the IMF has provided US$ 75 million in loans and extensive technical assistance, and continues to advise on economic policy through Resident Representative Wayne Camard.
 

LAO-THAI BORDER SURVEY 

Some 450 km of the Laos- Thailand border survey has been completed and 104 marker posts erected, the May 20-22 9th Conference on Boundary Cooperation and Security was told in Bangkok.

This annual conference discussed and reaffirmed the importance of the past year's bilateral cooperation at the government and armed forces levels.

The joint boundary cooperation sub-committee has recommended that the Joint Boundary Cooperation and Security body meets at least twice a year, and inspection of the boundary should be done at least once a year. However, the sides will immediately respond to emergency cases.

The sub-committee also proposes that provincial boundary cooperation and security bodies meet at least once a year, with up to three members from either side of the Joint Boundary Cooperation Sub-Committee to be invited as observers.

The Bangkok meeting decided to ban either side's police or army border patrol from violating territory, territorial waters or airspace of the other side. The only exception is in case of accident rescues along the Mekong River. If this occurs, one side must immediately inform the other. All these measures are aimed at avoiding possible border conflict. If problems persist despite preventive measures, the joint boundary sub-committee and the provincial counterparts are authorized to address the problems.

The meeting also discussed border security maintenance, covering immigration, arrest of one national by the other country, operations of Thailand's Mekong Patrol Unit, (Nor Por Khor), and enemies of the Lao-Thai relationship. The meeting was pleased with the progress in the Lao- Thai borderland demarcation by the Joint Boundary Commission, which has erected 104 boundary markers over 450 km so far.

In case of incidents, the two sides have agreed to delegate the Lao-Thai Border Security- Order Keeping Cooperation sub-committees to resolve the problems.

The meeting further agreed that all Lao-Thai agencies should cooperate in countering drug trafficking in border areas, as well as in support for the action plan for the cooperation drug suppression and precursor control between Thailand, Myanmar and the Lao PDR in Chiang Rai, northern Thailand, on February 9-11.
 
 

JAPANESE SUPPORT FOR LAO ECONOMIC DEVELOPMENT 

A signing ceremony of the minutes to the meeting on " Macro- economic Policy Support for Socio-Economic Development in Lao PDR" in Vientiane between JICA and the- State Planning Committee.

This was to formulate economic policy recommendations by the Lao- Japanese Committee, and to develop economic analysis and policy formulation, to maintain the sustainable socioeconomic development.

The cooperation will cover reform of the financial system; direct foreign investment; state owned enterprises; industrial policy (exports promotion) and agriculture and rural development policy (exports promotion).

The cooperation is for a two-year period along with the JICA Study on the Integrated Regional Development plan in Savannakhet and Khammouane regions, and with a Special Economic Zone Development Plan in the Savannakhet province border area.
 
 

LAOS-EU TEXTILE COOPERATION 

The Lao PDR and the European Union (EU) are planning to cooperate in textile production. 

The agreement was signed on May 27 between the Lao Ambassador in Brussels (Belgium), EU President Vasco Valente (who is also the, Portuguese Ambassador), and European Community Director Peter Carl Mogens.

The two sides discussed the significance of the expansion, of cooperation between Laos and the EU, calling this an historical agreement to pave the way to other trade agreements in coming years.
 
 

LAO-VIETNAMESE BORDER CONSULTATION

A meeting between the Interior Ministries of Laos and Vietnam was held in Vientiane. The meeting reviewed security operations along the Lao- Vietnamese border and the implementation of Lao Vietnamese border demarcation cooperation; and reviewed the inspection of demarcation markers, the exchange of information, immigration movement, third-country tourism, and national defense and security border issues

Chaired by Brig. Gen. Phetsamone Vongphouthone, Department of Security Director-General, the meeting was attended by Lao People's Revolutionary Party Politburo member and Interior Minister Maj. Gen. Asang Laoly and LPRPCC member and Deputy Interior Minister Maj. Gen. Soutchay Thammasith. Others at the meeting included directors and deputy-directors of Interior Ministry departments; and chiefs of the Security Forces of the 10 provinces bordering Vietnam.

The Lao Interior Minister pointed out border security and order maintenance issues and urged greater vigilance, which will contribute to tightening the long-standing special solidarity and friendship and all- round cooperation between Laos and Vietnam.
 

DRUG SUPERVISION AND CONTROL MEETING

Lao National Commission for Drug Control and Supervision (LCDC) Chairman Soubanh Sritthirath at the Presidential Palace hosted a meeting for diplomats of donor countries (the Mini Dublin Group) concerning the Lao situation of drug supervision and control. 

The meeting was proposed by Japanese Ambassador Yoshinori Miyamoto. Mr. Soubanh Sritthirath, who is also Minister to the Presidential Palace, briefed the meeting on major activities, especially the outcomes of the first national conference on drug supervision and control held in March. The conference commended efforts to set up integrated rural development projects to reduce opium cultivation.

Preventive education, information, detoxification and rehabilitation centers were launched. The Commission has increased drug police units in the provinces to improve interception of illegal and precursor drugs.

The LCDC Chairman pointed to cooperation with foreign partners, particularly neighboring countries, to intercept drug trafficking in the sub-region. He briefed the participants on the six-year strategic plan to reduce the opium output from the current 123 tones to 41 tones per year. This will also reduce the practice of slash-and-burn cultivation. Whether all this can be achieved depends on the access to funds for implementation. The Lao government is determined to achieve the plan goals. He ended by expressing the hope that the international community would respond positively to the Lao government plans. 
 
 

REVIEW DRUG CONTROL ACTIVITIES IN LAOS

Chairman of the National Commission for Drug Control and Supervision, Minister to the President's Office Soubanh Sritthirath, presented a status report on drug control in Laos. Following are excerpts of the report:

Opium supplies and demand reduction:
Many Lao highland people have been practicing slash-and-bum, the traditional way of shifting cultivation, along with opium poppy cultivation as their only option to eke out a living on the mountain slopes with their marginally productive soils. It is true enough that since the colonial days opium production has been a traditional agricultural activity to earn cash income. Opium has the advantage of being a non-bulk and non-perishable commodity that can easily be transported and smuggled over the production areas.

The persistence of opium production is partly accounted for by the fact that highlanders do not yet have opportunities and alternatives to give up their traditional crops and traditional methods of cultivation. Hunger and poverty are still endemic in backward and isolated areas, particularly, in opium production areas. The labor force is still very weak, since many men are addicts.

The vicious cycle of rural poverty could be eradicated by 3 main macro policy programs:

• ensuring food security; 
• enhancing opportunities for income generation; and 
• developing physical and social infrastructure (particularly feeder roads and bridges for access to markets, irrigation systems, health care facilities and schools).

• Palaveck Pilot Project (funded by UNDCP); 
• Lao-American Crop Control Project in Vieng Thong and Hua Muang districts (funded by the USA); 
• Integrated Food Security Project (IFSP) in Muong Sing (funded by GTZ); 
• Drug supply and demand reduction project in Muong Long (funded by UNDCP); 
• United Nations Nonghet alternative development project in Muong Nonghet (funded by ULNDCP); 
• Shifting cultivation stabilization pilot project of the Asian Development Bank (ADB) with UNDCP funding of the village-based development Micro-project in Xamneua; 
• Food Security and income generation project in Phongsaly (funded by the European Union and IFAD); 
• Physical infrastructure development projects (funded by various bilateral donors and financial institutions).

These projects have shown that local people do want to participate in development providing alternatives to opium. Improved access to sanitation and health care services replaces the need for opium as a pain killer; an increase in agriculture production provides food security; alternative sources of income replace the need for opium as a cash crop; and improved roads provide local access to more marketing opportunities. It is very important for the Lao Government to achieve goals set for 2020, being poverty alleviation and ending of the least developed country status. Among other strategies, multidisciplinary rural development approaches are needed to reach that goal.

Our policy and guidelines on poverty alleviation coincide with the essential issues endorsed in the Social Development and Poverty Alleviation World Summit held in Copenhagen in 1995.

By solving the problem of supply reduction only, we do not tackle the drug problems. The 1997/98 LCDC/UNDCP National Opium Survey showed that over 50% of the opium was used locally, including feeding the habit of 63,000 addicts. The balanced approach of Community-Based Drug Control (CB-DAC) has proved to be very successful. Addicts and their families are encouraged to prepare and care for each other during detoxification and rehabilitation. District and provincial detoxification centers like in Xieng Ngeun, Nam Bak, Phou Kout, (Luang Namtha Province) play an important role as well.

Cannabis plantation
Compared to opium, cannabis is not such a traditional product. The first cannabis plantation appeared in the seventies. Cannabis is grown in the low lands and specially in the area alongside the Mekong River between Bokeo and Champassak provinces. From these areas it can easily be sent abroad. The demand for cannabis, especially from neighboring countries, was very high during and after the war. At that time the socioeconomic situation in the Lao PDR was critical. Lao people took many risks to earn any extra income. They were encouraged by Thai investors, who advanced funds to Lao farmers. The funds included seeds, equipment, and input in return for the cannabis to be exported to Thailand. In the past three years, scrutinizing efforts by officers of Counter Narcotics Units (CNUs), Customs Officers, local authorities, and communities, cannabis producers have moved from the Mekong River into mountainous and isolated areas. So far, cannabis production has not been remarkable.
 
 

LAOS HAS SEEN POSITIVE CHANGES OVER YEARS 

Land and people of Laos and Vientiane in particular, have made distinctive changes for the better over the past years, said a Vientiane based Vietnam News Agency correspondent. 

The Lao people felt hurt indeed when the Western media attempted to cook up the so-called "increasing political disorder" in their country and fabricated a story of 'tanks carrying Vietnamese soldiers along Vientiane streets. 

It is even very rare to meet soldiers of the Lao People's Army in the city, the correspondent said, adding that what he saw are only traffic cops on duty at junctions.

Truly, Laos is facing economic difficulties on its way of development but it is not as someone described facing a dead end.

He also refuted the so-called increasing pressure of most Lao people for changing the regime.

Nowadays, under the leadership of the Lao People's Revolutionary Party, the Lao people are struggling to build the country from a "zero" starting point left by the colonial regime.

To be fair, it is easy to realize a brighter general picture of Laos through indications of its recent socioeconomic development particularly in the first six months of this year.

Laos obtained a total rice output of 2.1 million tones in the 1998-99 crops, not only ensuring domestic food supply but also having surplus rice for export. Lao farmers transplanted spring-summer rice on 90,000 ha this year. The country registered a 10.3 percent growth rate in industrial and handicraft, production in the year-to-date.

The Lao government has poured investment into building and upgrading national highways, and over 80 percent of the construction of six main inner routes of Vientiane have been completed. Laos welcome 300,000 foreign tourists and granted licenses to 21 foreign direct investment projects in the past sit months. Laos was successful in checking inflation, reducing the inflation rate from 121 percent in October 1999 to 34 percent in May. The value of Lao kips rose to 7,500 kip to one US$ in May this year from 7,700 kip six months earlier. The country registered a four- percent gross domestic product (GDP) growth rate and State budget collection worth 758.88 billion kip in the last six months.

Recently, there were some explosions heard in the Vientiane capital. The explosions did not leave any “echo” in the country but were exaggerated with ill intention by Western mass media.

Lao mass media timely informed the public of those incidents to help Lao people aware of the sabotage force. People living in areas where the explosions took place expressed their anger at the saboteurs and hoped relevant agencies would soon find the criminals so as to maintain the country's peace.

Those who wish to make use of the explosions to stir up confusion among the Lao people, particularly those residing in Vientiane, or even to obtain their wicked political objective, will be absolutely upset when witnessing the Vientiane people's peaceful life, which can be observed at street, offices, and markets. 
 
 

LETTER TO A DAUGHTER OF MR. HOUA LY

Ms. Yeu Ly

The Lao side would like to clarify with you the reality regarding the suspicion that your father was missing at a Lao-Thai border area between Chiang Rai province of Thailand and Bokeo province of Laos on April 19, 1999. The fact is, when the Lao side received Note No 368 dated May 7, 1999 from the US Embassy requesting cooperation in the search for your father, the Lao authorities immediately acted on the matter by advising concerned Lao agencies to conduct a search for your father. The Ministry of Foreign Affairs advised the Lao Embassies in Washington D.C, and in Bangkok, and the Lao General Consulate in Khon Kaen to check in detail the list of visa applicants to enter the Lao PDR, but the name of your father was not found on this list.

The Ministry of Interior informed immigration authorities at all border check points in the north of the country to check for and find your father, but they did not find the name of your father nor any traces of his entry to Laos through these border check point. At the same time, the Ministry of Defense also ordered army units based in the north of the country to conduct a search for your father. But so far no traces of him have been found.

In addition, the Government of the Lao PDR set up a joint technical team made up of representatives from the Ministries of Foreign Affairs, Interior and Defense on the Lao side. On the US side were representatives from the US Embassies in Vientiane and Bangkok, including Mr. Joseph De Maria and Ms. Meyung Robson (FBI).

The joint technical team conducted checks twice in Bokeo province, the first from July 2-4, 1999, and the second from November 10-20, 1999. The team checked the list of people entering and exiting the local immigration checkpoints, inmates in the prisons, passengers at river ferry ports, guest-houses, hotels, restaurants, and police headquarters. In addition, the team showed photos of the missing Americans to the locals to see whether they had seen the missing Americans. Later on, the team interviewed police officers, hotel owners, hotel receptionists, the head of the express boat association, restaurants staff and authorities in charge of detention camps. All these people certified that they did not know, see or hear about the missing Americans.

The Lao side clearly stated that it would provide cooperation for the third time in finding information and traces of the missing Americans. But the US side rejected it. The US side also raised a question and requested permission to interview people who are outside of Laos' jurisdiction. We do not know who they are, nor do we know where to find them, for the names, and identities given by the US side are all fakes.