The Lao Embassy has noted with concern the inaccurate media reports concerning the apparent disappearance of two Hmong US citizens that imply the Lao Government was somehow responsible. Some of these reports, supplemented by lobbying efforts of a vocal minority of US citizens who do not approve of improved relations between the United States and the Lao PDR, have unfortunately led to US Congressional concerns expressed in resolutions that repeat these inaccuracies. The actual facts concerning this matter follow:

On May 7, 1999, the Embassy of the Untied States in Vientiane, the Lao PDR, sent a note (No. 386) to the Lao Ministry of Foreign Affairs, informing them that they had received a report that two American citizens, a Mr. Houa Ly, age 55 years, and a Mr. Michael Vang, 36 years old, entered into the Lao PDR and disappeared. In addition, Ms. Elizabeth McCay, First Secretary of the US Embassy, informed the Ministry of Foreign Affairs that according to the American source of information in Chiang Mai, Thailand, the two American citizens entered into Laos without passing through the immigration checkpoint, that Mr. Houa Ly was killed, and Mr. Michael Vang had been arrested and jailed in Vientiane.

On May 31, 1999, H.E. Mr. Sisavath Keobounphanh, Prime Minister of the Lao PDR, received H.E. Ms. Wendy Chamberlin, the US Ambassador to the Lao PDR, to bid farewell at the end of her diplomatic mission. The US Ambassador raised the matter to the Prime Minister and requested assistance and cooperation from the Lao Government to thoroughly investigate the situation, that international protocols be followed, and if Mr. Ly and Mr. Vang were dead, their remains be repatriated to the US. Further, if they were arrested and jailed, the US Consular Affairs officer would seek to meet with them. The Prime Minister pledged cooperation and ordered the Ministry of Foreign Affairs and all authorities concerned to investigate the matter.

On June 4, 1999, the Lao Ministry of Foreign Affairs sent Diplomatic Note No. 389 to the US Embassy in Vientiane. The Note formally stated that based on the good relations and cooperation between the two countries, and the request of the US Government, the Lao Government would cooperate sincerely and fully with the United States in investigating this matter. The Ministry of Foreign Affairs reported that no Lao Embassies or consular offices found any record of having issued visas for the two individuals. Moreover, the Ministry of Foreign Affairs, in cooperation with the Ministries of Interior and National Defense and relevant authorities in the northwestern provinces of Laos, found no record of their entry into the Lao PDR through immigration checkpoints or other relevant information.

In further response to the request of the US Government, and in accordance with Lao Government agreement to investigate the area where the report indicated the two Hmong- Americans had disappeared, a Joint Lao-American Investigation Team was established. This team, comprised of five Lao and four US officials, conducted a field investigation from July 2-5, 1999.

During the investigation, the team interviewed officers at the immigration check point;  checked entry books that record foreign visitors; interviewed the head of the Boat Association at the river crossing of the border checkpoint; and interviewed the officers in charge of the police headquarters in Bokeo Province. The Team also showed the pictures of the missing men to people in the areas where they conducted the interviews and asked whether they had seen the two Hmong-Americans. Subsequently, the Team visited the provincial jail, where they personally viewed the prisoners, checked the list of prisoners, and interviewed the officers in charge. This joint field investigation found no evidence of entry or presence of the two Hmong-Americans.

In summary, based upon reports requested of all Lao Embassies and consular offices abroad, the records of all immigration checkpoints in the border provinces of the Lao PDR, and results of the joint field investigations by US and Lao officials, no information has been developed that lends credence to reports that Mr. Ly or Mr. Vang entered Laos, legally or illegally. Further, the Lao Government still has no information on the fate of either man and has vigorously denied reports to the contrary.

It is truly unfortunate that such reports appear to be designed to impede the improvement of relations between the Lao PDR and the United States and include attempts to discourage tourism to our country, despite thousands of tourists who have visited from the United States, including Lao-American citizens. Despite this, the Lao PDR will continue its policy of cooperation on this matter and will not let it interfere with our extensive cooperation in other areas, such as effective joint efforts to account for Americans still missing from the war, narcotics control, humanitarian issues and consultations to achieve regional stability and economic development.

We would welcome any new information from the United States on this matter and would request that US media outlets take into account in future reporting the facts above on this unfortunate situation.

Washington, D.C
November 5, 1999
 

LAOS, CAMBODIA, VIETNAM RELATIONS REACH NEW LEVEL 

Exchanging views on the major guidelines and measures aimed at broadening and boosting bilateral and trilateral social and economic cooperation were the main points raised at an Informal Summit between Cambodia, Laos and Vietnam on October 20 in Vientiane. 

The informal meeting involved Prime Minister Sisavath Keobounphanh, Cambodian Prime Minister Samdech Hun Sen and Vietnamese Prime Minister Phan Van Khai. 

At the meeting, the three leaders emphasized the importance of further increasing various areas of cooperation such as strengthening the bonds of friendship and shared solidarity fostered during the struggle for independence. This effort is regarded as a task of strategic significance in the present cause of national development. 

The three Prime Ministers exchanged views on the possibility of cooperation toward a " Development Triangle", which is seen as a mutually beneficial initiative for the three members of the Association of Southeast Asian Nations (ASEAN). 

"I believe this form of Cooperation among the three countries of Laos, Cambodia and Vietnam should not be misunderstood by other ASEAN members, I would like to confirm that, during the meetings, we neither discussed any matter relating to the upcoming informal ASEAN summit in Manila, nor any general issue about ASEAN." The Deputy Prime Minister and Minister of Foreign Affairs, Mr. Somsavat Lengsavad, said in a press conference. 

Major guidelines and measures aimed at broadening and boosting bilateral and trilateral social and economic cooperation were also discussed. Specifically they, made plans for: exchanging agriculture and forestry technology; promoting trade by opening more border points and implementing open trade and economic zones at border areas; establishing a power grid to provide each other with electricity; intensifying educational and training cooperation; jointly investing to upgrade the roads linking the three countries in the framework of Trans-Asia Transport and East-West Corridor development; collaborating to build post and telecommunication facilities; cooperating to produce medicines and accomplish health projects; mitigating and eradicating poverty and hunger; increasing cooperation in labor; cooperating to work out a strategy to preserve environment and bio-diversity along the border areas of the three countries, especially in water resource and wild life management and exploitation; opening more airlines routes to open up tourism link. 

The three Prime Ministers were unanimous in reinforcing their cooperation in fighting crime and drug trafficking. They also agreed that economic, political, cultural and social cooperation proposals made at this meeting would provide a new impetus for fostering traditional friendships and fulfilling the aspirations and interests of the people of the three countries. Taken together, they would contribute to the peace, stability, cooperation and development in the region. 

LAOS, CAMBODIA COOPERATION 

Laos and Cambodia signed cooperation agreements, following a meeting of the Prime ministers of the two countries in Vientiane on October 21, 1999. 

During the meeting, Prime Minister Sisavath Keobounphanh, Cambodian Prime Minister Hun Sen informed each other of the situation of each country, especially in socio- economic development. They also touched on the strong points and weak points on economic development. The two Prime Ministers also evaluated the relationship and cooperation between the two countries in the past, and discussed ways to strengthen and expand the bilateral relationship and cooperation in the future. 

The sides agreed to continue to expand their relationship and cooperation by adhering to the Treaty of Friendship and Mutual Assistance signed in 1995. The sides will define strategic guidelines for mid and a long-term cooperation to promote good neighborly relationship and well-rounded, long lasting cooperation. The two Prime Ministers also agreed to encourage the joint border commissions of the two countries to continue their meeting soon, leading toward an agreement on border survey and demarcation that has to be finished within the year 2000. 
The Prime Ministers of Laos and Cambodia then agreed to upgrade the local checkpoints to international level that will facilitate contact communication, trade and tourism between the people of the two countries. 

The two sides also agreed to promote expanded cooperation in the economic, social and cultural areas. 

After the meeting, the two sides agreed to sign three cooperation agreements: the agreement on criminal extradition; the agreement on electric power; and the land transportation agreement. 

  
LAO DELEGATION ATTEND WORLD BANK ANNUAL MEETING 

A Lao government delegation, led by Deputy Prime Minister and Finance Minister Bounyang Vorachit, the Lao Permanent World Bank (WB) Representative, participated at the 541 annual meeting of the WB Governing Council in Washington. 

The meeting faces the continuing challenge of world economic difficulties, and the need to find solutions to the world economic crisis. Included on the agenda are: 
•  evaluation of the WB work and policy-implementation for member countries over the past year; 
•  study the possibilities for world economic and financial guidance for the year 2000 
• improvement and emendation of some WB regulations; 

Participants were briefed on economic conditions and future plans of each member country. 

The Lao PDR representation reported on the achievements, difficulties, and assistance needs from the WB and IMF to help resolve the effects of economic crisis and stabilize the country's economic condition. 

Since 1977, WB loans to Lao PDR have been worth US$ 575 million, including interest, for 27 projects. 16 projects have been completed and 11 are still being carried out, using US$ 399.6 million. The Governing Council also met and conferred with the International Monetary Fund. 
 

  
LAOS PREPARES FOR WTO MEMBERSHIP  

A preliminary meeting of Laos' coordinating committee for the World Trade Organizations (WTO) membership met at the Ministry of Commerce and Tourism on September 9. 

The meeting was chaired by Mr. Somsavat Lengsavad, Deputy Prime, Minister, Minister of Foreign Affairs, and attended by Mr. Phoumi Thipphavone, Minister of Commerce and Tourism. Other relevant ministries were also represented. 

The focus of the meeting was to inform the members of this inter-agency committee on Laos' preparation plan for becoming a WTO member so as to ensure effective cooperation and coordination. 

The preparation of the WTO membership was approved by the Government. In this framework, the Ministry of Commerce and Tourism has received technical assistance from the United Nations Development Program and the work is funded by the Australian government. This national interagency committee was established on May 5, 1999. 
 

  
PARTICIPATION AGREEMENT FOR EXPO 2000 SIGNED 

The agreement for Laos to participate in the world Exposition in Hannover next year was signed in Vientiane. 

Laos will be presenting itself at the exposition with its own pavilion, with different projects under the key theme, Humankind-Nature-Technology: The creation of a new world. 

Further to the contract, a finance assistance agreement will be signed between the Lao and the German side granting Laos 80 percent financing of the participation in the exposition. The overall cost to participate in EXPO 2000 is estimated at around US$ 750,000. 

EXPO 2000 will take place in Hannover, Federal Republic of Germany, from June 1 until October 31, 2000. The organizers are expecting more than 40 million visitors from all over the world during these five months. 

Laos will be participating at the EXPO 2000 along with 187 other countries and will present the following projects: 
- The Palm Leaf Conservation Program 
- The Wildlife and Habitat Inventory Program 
- The Environment Protection & Community Development in Siphandon Wetland Project 
- The Highland Integrated Rural Development Pilot Project 
- The Forest Management and Conservation Program 
- The sub-regional Biodiversity Forum Project. 
 

  
LAOS’ ECONOMIC WOUNDS BEGIN TO HEAL 

The continuous strengthening of kip since last month has put long lost smiles back on peoples faces, now that they no longer have to hoard their Thai baht and US dollars. Many people who have never exchanged money through the bank have begun to sell their baht back to the bank. 

The exchange rate in the parallel market on the morning of September 27 was between 220-225 kip per baht or about 8,700 kip per US dollar. 

On October 14, the rate was about 210 kip per baht or about 8,130 kip per US dollar,and at the end of June it was up to 276 kip per baht. 

This is the first time for the government to maintain the strength of the kip since the beginning of the economic crisis two years ago. 

Since late 1997 when the Asian economic crisis began to hit Laos' economy, the government made every effort to fight the negative impacts. However, inflation of the kip continued to destroy the Lao economy and financial stability. Over the past two years, the kip fell from 700 per US dollar in mid 1997 to 9,800 in mid 1999. During the kip's weakest period (late last year and earlier this year), the government tried to sell emergency bonds to manage the plummeting of the kip, but they only delayed its fall. The Japanese government also provided aid under its non-grant aid project to help relieve the tension, but it had little impact on the situation. In April this year, the commercial banks also tried to raise their exchange rate to chase the parallel market, but they failed because the more the bank chased, the faster the parallel market rate jumped. At the same time, the government also established a special committee Involved in inflation control but the committee was unable achieve its target. Until mid July this year, the government renewed members of the committee from all the concerned sectors. Fortunately, the newly established committee worked more efficiently and stopped the depreciation of the kip immediately. 

The government also has made several decisions to control the fluctuating exchange rate and illegal money trading by pegging the bank rate to that of the parallel market. 

The measure the government took besides pegging the bank rate included tighter controls on tax collections and collecting unpaid debts from domestic traders. Import tax payments on goods brought for private use from Thailand have also been more strictly implemented. The bank stopped spending large amounts of money at any one time and the import of cars was prohibited. Several private companies involved in foreign currency trading were warned to cease their activities and the illegal money trading in Vientiane's Morning Market and at the central postal office was closely monitored by the police. 

In addition, the Ministry of Commerce and Tourism tried to find ways to increase cooperation and trade relations with Vietnam. Several Vietnamese supermarkets and shops have been established and Lao people have been introduced to Vietnamese products, instead of Thai goods alone. 

Since the immediate measures to control inflation have proven successful, the government will now begin to implement its long-term and sustainable measures. It wants to increase domestic production and the country's revenue. The government is now asking the Japanese government to provide a soft loan, the "yen loan" to heal the wounds caused by the crisis. However, whether the soft loan will be approved or not depends on the decision of the Japanese government and the government of the Lao PDR, on the recommendations provided by Japanese economic experts. 
 

VIENTIANE MUNICIPALITY SELF-SUFFICIENCY IN RICE 

Vientiane municipality in 1998-1999 has achieved self-sufficiency in rice production thanks to the quantitative and qualitative growth of agriculture in the municipality. 

Output reached 226,320 tons of paddy, up 37,065 tons over the 1997-1998 period. The rice growing areas covered 65,091 ha. 

The average per capita per annum paddy rice income reached 350 kg, was considered a basic sufficiency. 

It was considered noteworthy that the municipality has increased the irrigated areas from 15,000 ha in 1998 to 23,000 ha in 1999, while the dry season irrigated paddy fields also rose from 13,012 ha to 16,732 ha in the previous harvest. 

Next year the municipality has fixed a target of 270,440 tons of paddy, with a per capita per annum income of 400 kg of paddy. 

For this, the municipality will increase the rainy season paddy field area to 49,700 ha   (up 3,296 ha) and to 21,500 ha in the dry season (up 4,768 ha). 

The municipality will also encourage intensive agriculture, aiming to raise the main rice crop yield to 3.4 tons of paddy per ha, and to 4.6 tons for the dry season rice crop. 
 

  
NEW ROAD JOINS LAOS, CHINA, THAILAND AND MYANMAR 

Road No 17 at Luang Namtha province will be completed before the set plan. Construction on Road No 17 started in 1996 and expected completion was to be in the year 2000. Seventy kilometers is already completed and parts of the road are already in use. 

The total length of the road will be 72km in length. It splits off from Road No 13 in Luang Namtha district and will join with roads in Myanmar and Thailand. 

After completion of the road, trade between the local people will be facilitated and at the end of each month a trade fair will be organized between Laos, Myanmar, China and Thailand. 
 

  
ADB ASSISTS THE GOVERNMENT IN PREPARING PIP FOR 2001-1003 

In September, Asian Development Bank (ADB) approved the provision of technical assistance to the Government of the Lao People's Democratic Republic in an amount of US$150,000 for Preparing Public Investment Program (PIP). 

ADB will assist the State Planning Committee (SPC) in preparing the first 3-year annual rolling PIP for the period of FY 2000/1-2002/3 in a more participatory and effective manner. The new PIP will fully reflect the Government's medium-term objectives and sectoral priorities as well as resource availability. The Government will prepare the new PIP by April 2000 and present it to the Seventh Round Table Meetings (RTM) between the Government and aid agencies to be held in Vientiane in June -2000 to attract external donor assistance as well as foreign direct investment. 

ADB will assist line ministries in selecting priority projects in line with sectoral strategies and preparing each ministry's PIP proposal, assist SPC in assessing, appraising and prioritizing the public, investments proposed by the line ministries, and assist in the conduct of a consultation seminar to discuss the draft PIP and in finalizing the PIP. 

The new PIP will feed into the Government's Socio-Economic Plan for 2001-2005 (the 5th five year plan) to be prepared during the year 2000. 
 

  
766 FOREIGN INVESTMENT PROJECTS APPROVED 

In the 1998-1999 period, Laos approved 766 investment projects worth US $ 7 billion, in various domains, with investors from 35 countries. The major foreign investors came from 14 countries -Australia, China, France, Hong Kong, Japan, Republic of Korea, Malaysia, Russia, Singapore, Thailand, Taiwan, the United Kingdom, the United States of America, and Vietnam. 

The major amounts invested ranged from US$ 10 million to 2.9 billion. The projects are in the spheres of electricity, communications- transport, industry and handicraft, garments, wood, fuel and mining, trade, hotels-tourism, banking, construction, consultancy services, and agro-business. 
 

US SENATOR VISITED LAOS 

Deputy Prime Minister and Minister of Foreign Affairs, Somsavat Lengsavad received a delegation of the U.S. Senate led by Senator Richard Shelby from Alabama at the Ministry of Foreign Affairs on September 2. 

At the meeting, both sides discussed and exchanged views on a series of issues concerning the relations and cooperation between the two countries. The Lao Deputy Prime Minister affirmed the policy of the Lao PDR to further maintain its good relationship with the United States, and further pursue its humanitarian policy with regard to the cooperation in finding the remains of American soldiers missing in action during the Indo-China war. He also touched on the cooperation in anti-narcotics efforts. 

The two sides were of the view that they should look to the future of bilateral relations for the benefit of the peoples of the two countries. The two sides should not bring any issue to bargain and obstruct the good relations and cooperation. In addition, the two sides exchanged views concerning the economic situation in Southeast Asia, particularly regional stability and other matters of common interest. 

Senator Shelby and his wife and delegation plan to visit the World Heritage city of Luang Prabang and a training center on drug control and suppression in the northern province. 

This visit to Laos is the second for the US senator and his wife. His first visit was on August 12-13, 1997. 
 

LAOS, JAMAICA ESTABLISH DIPLOMATIC TIES 

The governments of the Lao PDR and Jamaica have agreed to establish their diplomatic relations at the ambassadorial level. 

The agreement was signed by Lao and Jamaican ambassadors to the United Nations, Mr. Alounkeo Kitikhoun and Ms. Patricia Durrant, in New York on August 27. 

The establishment of the diplomatic ties will serve to expand and strengthen the time-honored relationship, and better the understanding and cooperation between the two countries and peoples. It is based on the principles of respect for each other’s independence, sovereignty and territorial integrity, corresponding with the principles and objectives of the U.N. Charters and with the Vienna Convention on diplomatic relations with 108 countries. 
 

KOREA - LAOS COOPERATION  

Since the reestablishment of official relations until the end of 1998, the Republic of Korea had provided Laos with roughly 2 million US dollars of Grant Aid. It provided computerized communication equipment to the Ministry of Foreign Affairs, assisted the construction of the embankment of the Mekong River in Vientiane and conducted two feasibility studies, one in the Luangprabang province for the construction of irrigation dam, the other one in Savannakhet province for a small scale hydroelectric power plant. 

This year alone, KOICA has invited almost 40 Lao officials to various training courses such as Economic Development Policy, Rice Production Technology, Irrigation Development and Water Management, Development of Capital Market, International Trade and WTO Agreement Implementation, National Tourism Development Strategy, Science and Technology Policy and so on. 

Recently, a Korean doctor who specializes in the pediatrics arrived Laos to practice medicine at the Mittaphab Hospital according to the KOICA's medical assistance program. Korea's direct investment in Laos ranks third in total volume, with roughly 920 million US dollars in various fields ranging from agriculture, textile, mining, trading, tourism, construction to energy. It is noteworthy that the Houay Ho Hydro-electric Power plant began commercial operation in early September, selling 2.5 million dollars of electricity to Thailand every month. 

Now that the Korean economy is recovering from recess, and a growing number of Korean companies will show interest in doing business with their Lao counterparts. 
 

  
SENIOR US STATE DEPARTMENT OFFICIAL VISITS LAOS 

Mr. Neil Silver, Office Director for Myanmar, Cambodia, Laos, Thailand, and Vietnam Affairs of the US State department visited the Lao PDR on October 2-6. 

The purpose of his trip was to consult with US Embassy staff and Lao government officials in various ministries on the bilateral relationship. 

At the Foreign Ministry, Mr. Silver met with Permanent Secretary Bounkeut Sangsomsak, and met with Acting Director General, Department of Europe and Americas. He called on Ket Kiettisack, Vice Minister of Justice and also met with Phiane Philakone, Vice Governor, Bank of the Lao PDR. 

Mr. Silver visited the National Director of UXO LAO. He received a briefing on the work of UXO LAO and consulted on the continuing US contribution to the national demining program. Mr   Silver    also     met     with representatives of international organizations with offices in Laos. 

Mr. Silver's visit is one of a series of high-level visits from the US to foster a growing relationship and cooperation between the US and the Lao PDR. 
 

  
VIETNAM FACILITATES GOODS IN-TRANSIT FOR LAOS 

Vietnam has taken various measures to facilitate the transport of goods in-transit for Laos, Vietnamese Ambassador to the United Nations Ngo Quang Xuan re-affirmed in August. 

Addressing conference of the fourth countries, transit countries and donors in New York, August 24, Ambassador Xuan spoke about Vietnam's initiative at the sixth Summit of the Association of Southeast Asian Nations (ASEAN) in Hanoi last December. The initiative was concerned with the development of nations along the East-West corridor in the Mekong sub-region. 

He stressed that the initiative would be implemented with assistance and co-operation from international communities, especially donor countries and international financial institutions such as the World Bank and the Asian Development Bank. 

Implementation of the initiative would benefit transport of Lao goods in-transit and socioeconomic development of countries in the region. 

Discussions at the conference, by the UN Co-operation, Trade and Development, focussed on measures to boost international co-operation in developing transport networks and regulations to simplify transit procedures to create favorable conditions for transport of good and services of inland countries, as well as to promote import-export activities. 
 

VIETNAMESE IMPORT TAX REDUCTION FOR LAO-MADE GOODS 

In September, Vietnamese Prime Ministerial decision on tax on Laos-made goods imported to Vietnam is guided by joint Circular No. 77 issued on June 22 jointly by the Ministry of Finance, the Ministry of Trade and the General Department of Customs. 

Goods made in Laos, and exported to Vietnam, are subject to a Vietnamese import tax rate equal to 50 per cent of the preferential import tax rate specified in the Preferential Import-Tariff if they meet the following conditions: 

-being on the goods list issued together with this Joint Circular; having a certificate of origin granted by the Lao Foreign Trade Department of the Lao Ministry of Commerce certifying that such goods originate from Laos. 

-being transported into Vietnam through the official Vietnam-Laos cross-border points.  The decision takes effect immediately. 
 

  
JAPAN HELPS TO DEVELOP HOUAY SALOY ELECTRICITY PROJECT 

The government of Japan has decided to extend over US$ 82,000 in aid for an electricity development project in Houay Saloy area, Nong district, Savannakhet province. 

The grant contracts to this effect were signed on September 3, at the Ministry of Industry and Handicraft between the Director of the Service of Industry and Handicraft in Savannakhet province, and the Ambassador of Japan to the Lao P.D.R., Mr. Yoshinori Miyamoto. 
 

  
AUSTRALIAN AID FOR FOUR BRIDGES ON ROUTE ONE. 

The recent completion of four bridges along Route 1 has somewhat reduced the two to three day journey north from Vientiane to Xieng Khuang. The bridges will facilitate travel for people in remote areas into Xieng Khuang, Saysomboun Special Zone and Bolikhamsay province. 

The bridges were a grant from the Australian Government to assist Laos in developing the communication network and were officially handed-over by the Australian Ambassador to Laos. 

The completion of four bridges on Route 1, like the friendship bridge across the Mekong River, will symbolize the strong ties of friendship that continue to be built between the people of Australia and the people of the Lao PDR. The completion of these four bridges is a symbol of cooperation and assistance from the Government and people of Australia. 

It is important for the socioeconomic development of Laos as well as for the improvement of bridges and roads in our country. It will be of great benefit to the people, especially in Xieng Khuang province, who, in the past had many difficulties transporting goods. It will also contribute to rural development and tourism in the area. 

Responsibility of the bridges was given to the local administration, to maintain and keep them safe and in good condition for as long as possible. 

Construction started in June 1997 and was completed in May 1999. Total cost amounted to AUD 1.8 million. 
 

  
LAO-GERMAN PROJECT AT NOSPA PLANNING FOR PHASE III 

A Joint Lao-German evaluation of the second phase of the project "Training and Advisory Services in Market-oriented Economic Policies" concluded in September. 

The main objective of this evaluation was to agree on a concept for the third phase of the project. The GTZ project team was assisted by the mission from the representatives of the German Ministry of Economics and Technology and GTZ East Asia Division and Head of the Reform Program Vietnam/Laos. 

The findings of the evaluation demonstrated that the second phase of the project was so far successful and that the main results have already been achieved or will be achieved till the end of the second phase in June 2000. However, to reach the overall project objective continued cooperation in form of a third phase is considered to be necessary. 

In the beginning of  September a planning workshop took place to elaborate a final concept for Phase III and to agree on the project objective, the results and the related activities. 

In addition to the participants from NOSPA and the GTZ also representatives from the National Economic Research Institute, the Prime Minister's Office and the Ministry of Finance took part. 

It was agreed during the workshop proceedings that besides its major focus on training of teachers in the field of economics, two further project components will be added, namely research cooperation and economic policy advice on the decision-making level. Further discussions with relevant Lao institutions are scheduled for the end of the year 1999 in order to agree on a suitable form of cooperation. On September 3 a singing ceremony took place by representatives of NOSPA and the GTZ . 

However, the agreement between NOSPA and GTZ as executing agencies is subject to the approval of the government of the Lao PDR and of the Federal Republic of Germany. 
 

  
CANADA SUPPORTS URBAN ENVIRONMENT 

The Canadian Ambassador to the Lao PDR, Bernard Giroux, recently announced a grant of US$ 3,960 in support of a project designed to raise public awareness in Vientiane about solid waste management issues. 

The project will support the production of 30 copies of a Lao language video designed to raise awareness about waste management problems. The project will also produce 5,000 copies of a 20 page color handbook designed to raise awareness about waste management issues in the capital city. 

Both the video cassettes and handbooks will be distributed throughout Vientiane as part of a public awareness raising campaign. 

The Canadian grant supported activities will be implemented by the Cleanliness and Environment Protection Organization. 
 

ZOA FUNDS IRRIGATION CONSTRUCTION IN XIENG KHUANG 

A signing  ceremony for the construction of the Houai Poung Kheung  irrigation project in Paek district, involving the Lao side and ZOA (a Dutch NGO), was held at the ZOA office in Xieng Khouang. 

The project is to cost US$ 300,000, including the construction of a 500,000 cubic meter reservoir and a four kilometer canal to supply water to 140 ha of paddy fields. 
 

  
OVER 280 LAO REFUGEES RETURN HOME 

A number of the Lao refugees at Napho camp in Thailand returned home on a voluntary basis. The return of these 282 refugees in 152 families followed agreement at a July 20 trilateral meeting in Vientiane between the Lao PDR, the Kingdom of Thailand, and the UN High Commissioner for Refugees (UNHCR). 

The repatriates received a warm welcome from the authorities of Khammuan province, Thakhek district, and residents of Nasa-ard village, which had been chosen by the Lao government and the province for the resettlement of repatriates. 

The hand-over of the returnees was performed by the Governor of Khammuan province and the Vice Governor of Nakhone Phanom province of Thailand, witnessed by UNHCR officials and officials from the Lao Foreign Affairs and Interior Ministries. 

The UNHCR estimates that there are still more than 1,000 Lao refugees at Napho camp in Thailand. 
 

  
US GOVERNMENT SUPPORTS EFFORTS TO STOP POPPY CULTIVATION  

The US government will contribute a total of US$ 3,338,000 to the Lao government for counter narcotics activities under agreements signed in Vientiane in October 14. 

The agreements were signed by Minister to the President's Office and Chairman of the Lao National Commission for Drug Control and Supervision, Soubanh Srithirath, and US Charge d'Affaires a.i. Karen Stewart. 

The agreements indicate that of this amount, US$ 600,000 is funding for the final year of the Lao American Crop Control and Development Project in Vieng Thong and Hua Muang districts, Huaphan province. 

The project's purpose is to help farmers in mountainous areas stop opium poppy cultivation by helping them find other sources of income. Since 1989, the Project has built roads, small hydroelectric dams, irrigation weirs, district hospitals, and primary schools. Agricultural extension services have been provided, making possible for the first time cultivation of dry season rice and other crops. 

Detoxification of opium addicts has also been supported. This year's funding will be used to complete construction of the Xon Tai-Muang Peu road, and to develop commercial silk production and other activities. Since 1989, the US government has contributed nearly US $17 million to this project. 

A further US$ 2,288,000 is funding for the first full year of the Lao American Crop Control and Development Project in Samphan and Boun Tai districts, Phongsaly province. Like in Huaphan, the Phongsaly project's objective is to help villagers in the project area follow the Lao government policy to end opium cultivation, by building rural infrastructure and supporting development of alternative sources of income and food security. 

This year's funding will be used primarily to begin construction of a 60km road, which will provide access to 14 villages included in the project's first phase. The initial 30km of the road had already been surveyed, and construction is scheduled to begin before the end of this year. 

The remaining US$ 450,000 is for continued support of counter narcotics law enforcement units in Vientiane and the provinces. This project began in 1992 and focuses on stopping drug trafficking in Laos. 

Additionally, the Lao National Commission for Drug Control and Supervision (LCDC) and the US Embassy recently signed an amendment to the existing bilateral agreement on counter narcotics cooperation. The amendment provides US$ 72,500 in US government funding for use in the Lao American Cooperation Project in Huaphan province. This amount is additional to the nearly US$ 17 million the US government has provided to the project since 1989. The Lao government has also contributed to the project budget. 
 

  
LAOS, GERMANY COOPERATE ON DRUG CONTROL 

The Lao National Committee for Drug Control (LCDC) together with GTZ held a meeting in Vientiane on strategies for drug control and planning of Lao-German cooperation to support action. 

Attending the opening ceremony were Colonel Inkham Inthamany, Chief of Administration Office of the Interior Ministry, Vice Director of LCDC; Mr. Roland Wittur, Head of team of GTZ; representatives from the United Nations Development Program (UNDP) and United Nations Drug Control Program (UNDCP). Vice-governors and officials from Luangnamtha, Borkeo, and Xiengkouang provinces; and Mr Ulrich Dreesen, German Ambassador, to Lao PDR. 

The participants heard reports and experiences involving drug control projects in each province. 

Colonel Inkham Inthamany said that the Lao Government has actively sought efficient ways of drug control. The committee, established in 1990 strictly follows state policy indicated in the master plan for drug control to the year 2000. This includes: 
1. Increase the capacity of those government sector in charge of drug control works. 
2. Reduce drug production, and instigate rural development projects to improve the standard of living of people in opium cultivation areas. 
3. Reduce the need for drugs use and abuse. 
4. Administer strict punishment for drug traffickers according to the state law. 
 

  
TOURISM NOW BIGGEST CONTRIBUTOR TO NATIONAL INCOME 

National tourism earnings in 1998 topped income generated from export of garments and electricity for the first time, the National Tourism Authority announced recently. 

Last year, the country earned US$ 79.9 million from the tourism sector, a considerable improvement over the previous year. 

In 1997 tourism earned US$ 73.3 million, ranking third in earnings after precious materials and wood products. 

According to an official of the action Tourism authority, tourism as seen a continual rise in arrivals from all over the world, from 102,946 in 1993 to 463,200 in 1997. In 1998, the number rose to 500,200. 

Most tourists, a total of 364,227, came from the Asia-Pacific region. Europeans numbered 52,076, Americans numbered 25,326, and 1,602 arrived from Africa and the Middle East. A further increase in the number of tourists is hoped for as a result of the Visit Laos Year 1999-2000 campaign, which officially opens in November. 

Tourism in the Lao PDR has been developing continually and its role and status has grown importance to the country's socio-economic development. 
 

  
STUDY PROJECT FOR TOURISM DEVELOPMENT IN LAOS 

The Japanese and Singaporean governments have conducted a fact-finding study on tourism development in Lao PDR. The study team, composed of five Japanese and three Singaporeans, exchanged views with concerning authorities and visited several sightseeing spots in Luang Prabang to seek the program ideas to be cooperated in by the both governments. 

Singaporean and Japanese government representatives signed the Minutes of Meeting (MM) of the Joint Project Formulation Study Team on Tourism Development in the Lao People's Democratic Republic under the Japan-Singapore Partnership Program for the 21ST Century. 

Both governments also submitted the results of the survey to the National Tourism Authority. In the MM, both governments will assist in the human resource development field in areas such as "Strategy and Planing on Tourism", "Marketing and Promotion on Tourism", "Human Resource Development in the Tourism Industry" and "Tourism Management". 

Some of the team members will make a field survey in the southern part of Laos for a few more days to seek another program idea. 
 

  
SAVANNAKHET, THE LAND OF DINOSAURS  

Dinosaur fossils are something that characterizes the central province of Savannakhet. So, Lao people know this province as dinosaur land. 

Twenty dinosaur's fossils have been found in Tangvai Lamthouay village, Sonboury district. 

The fossils are displayed in the provincial office of the Science, Technology and Environment Organization. 

Now, Savannakhet scientists are also searching for more dinosaur fossils in Nakabong village, Assaphone district. The scientists won't take the fossils for display in the provincial museum, but the fossils will be displayed at a museum which is to be established in the site where they were found. 

On the occasion of Visit Laos Year 1999- 2000, this site will become a tourist site for the province as well as for Assaphone district itself. There are four species of dinosaurs found in Savannakhet province. 

The archaeologists found shells of two big turtles in Sonboury district, about 90 km far from the provincial town. Plansay district was also another location where the fossils of the dinosaurs were found. This district is 100 km east of the provincial town. Most of fossils found were teeth. In addition to the fossils, local archaeologists found ancient wood stick that changed to a stone. 

Local archaeologists reported that three more sites, assumed to have fossils of dinosaurs, have not yet been excavated. The sites, some 100 km from town, are at Vangyai and Koktom villages, Assaphone district. The last site found is at Khanthachan village, Saiphouthong district. The village lies along the bank of the Mekong River. Archaeologists said that local people have found fossils emerging on a river bed. 

Scientists in many countries said that this kind of animal had lived in the earth about 110 million years ago. 
 

  
PAKSAN BOAT RACING FESTIVAL 

Hadsay village's rowers raced to victory at the Houay Siat, Paksan Boat Races in Borikhamxay province in September. 

Twenty-five boats took part in the competition, including 17 in the men's division and five in the women's section. Each boat held 22 rowers. Boats participated from the provinces of Borikhamxay, Khammouan, Vientiane, and Vientiane municipality. 

Hadsay was followed on the winner's podium by Phoxay, then Pakkading and Borikhan villages. The women from Hadsay completed the sweep as they won in the women's group. Nam Ngiep village placed second, and was followed by Pakkading and then Kouay villages. Houay Siat Dam is the main component of an irrigation system built in 1992 to provide water to a hundred square hectare site for dry rice field cultivation. The boat racing festival was held at the " Rose Garden Resort, which is the renovated site of the former Skanska road construction crew camp. The facility once houses workers who constructed Road 13 South before it was handed over to the administration of Borikhamsay province in 1994. 

The present reservoir at Houay Siat provided an ideal setting for the races. Houay Siat Boat Race Festival is the second such event held in the area and would continue every year. The boat race is held at Paksan on the Mekong River at the time of Boun Ork Phan Sa or the end of Buddhist Lent. This year's festival was held over two days and three nights and attracted large crowds of revelers. 

Some observers estimated that the Houay Siat races attracted more people than the annual Paksan races. The Houay Siat Boat Racing Festival was sponsored by the International Olympic Fund in collaboration with Borikhamxay province.