The Seventh Annual Plenary Meeting of the Lao People's Revolutionary Party Central Committee (LPRP CC) since its Sixth Congress has urged for efforts to maintain next year's Gross Domestic Product (GDP) at 6-7 percent. 

The LPRP CC plenum was held and evaluated the LPRP CC's functioning over the past year and discussed future work. The plenum viewed that the country would face many difficulties, including hikes in goods prices, the strong fluctuation in currency exchange rates, resulting from the economic financial crisis in the region, and the unfavorable weather conditions for agriculture for the third year. 

Despite those hardships, the country is still ensured with political stability and social order. The rhythm of the economic growth is still developing continually from last year. 

The meeting praised Lao people's active contribution to the national construction and development, particularly in the field of agriculture. 

People of all ethnic groups and all social strata are united firmly, trust in and give support to the course of the Party's guidance while the political structure and system from central to grass-roots levels has been improved and strengthened. 

The country's role and prestige has been enhanced in the international arena, thus friendly countries throughout the world have a better understanding and have extended more support and assistance to Laos, the plenum stated. The plenum also studied in depth the shortcomings, and discussed frankly ways to tackle problems. 

The meeting also discussed work for the coming year to ensure the country's political stability and social order, to return the economic and financial situation to normalcy, to ease the hardships of the living conditions of civil servants, military officers and people, and to ensure the continuation of the socioeconomic development. 

  
GOVERNMENT TO TAKE FIRM MEASURES TO FIGHT ECONOMIC AND FINANCIAL CRISIS  

Prime Minister Sisavath Keobounphanh, in his report to the second ordinary session of the National Assembly, Fourth Legislature, on its opening day, proposed drastic measures to fight the economic and financial crisis. 

The Prime Minister reported that, despite the crisis affecting the region and the country, the Lao PDR had recorded last year substantial achievements. Political stability and social order 
were maintained. Development was still going on, though at a slower pace. Production, especially Nasaeng, the second rice cultivation, has doubled area over the past 22 years and has registered a bumper crop for the second year. Animal raising and the cultivation of industrial crops have expanded. In the industrial field, important projects were completed, including the Theun-Hinboun hydroelectric plant, the communication network, roads and bridges and the Wattay International Airport Terminal. 

To alleviate the people's, especially the government employees' difficulties, the Government has purchased consumer goods from Vietnam and China and sold at lower than the market price to those people. Focus has been put on all-round rural development. International cooperation has been enhanced, thus heightening the prestige of the Lao PDR in the international arena. 

However, the Prime Minister forecast many difficulties ahead as the country enters the new fiscal year. Inflation will continue to soar and the people's living conditions will become more difficult. Nevertheless, the Government will endeavor to maintain Gross Domestic Product (GDP) growth of 6-7 per cent. It will take measures to gradually mitigate the effect of the economic and financial crisis and counter the inflation. 

Those measures include boosting domestic production for local markets and for export; continuing to invest in the construction of more irrigation facilities so as to enlarge further the nasaeng cultivation areas; mitigating the effects of flood and drought. 

Moreover, the Government will supply funds to people for production and animal raising. Foodstuff supplies will be normalized so as to decrease imports. For this, the Premier said, a good planning is needed for this cultivation season. 

The Government will invest in factories and industries where potentials exist. Big projects that are not strategically vital for the country's economy will be postponed.  Unnecessary expenses will be cut: there will be fewer receptions and travel abroad. 

The Anti-Inflation Committee will meet and coordinate with all sectors concerned. The Government will promote domestic and foreign investment in priority sectors such as cement, fertilizer, construction materials, animal fodder, sugar and textiles. It will tighten the control of goods so as to curb price hikes. 

The Government will exert stricter control on the import of luxury goods, including cars, alcohol and cigarettes. Domestic products will be promoted and protected through higher taxes on imported goods when the same locally made products are available. 

State enterprises must be helped to improve their performance and the people's cooperative economy must be encouraged. A better distribution of goods throughout the country is urged. Exports are to be boosted, focusing on processed wood, coffee, and textiles and traditional weaving. 

In the field of trade, especially with Vietnam, China and other neighboring countries, the barter system and the use of local currencies for payment will prevail. 

State-to-state trade, and border trade should be encouraged. A free trade zone should be set up wherever favorable. Laos must get prepared for membership of the ASEAN Free Trade Area (AFTA) and the World Trade Organization (WTO). 

People are urged to buy savings bonds and to place their foreign currency with the banks. The press is urged to encourage the people to save and to practice thriftiness, especially to avoid wasting water, electricity, petrol and daily use items such as office stationary in state organizations. 

In the field of agriculture, rural development will continue non-stop with its aim to help localities solve their difficulties. The Vientiane plain's capacity as a producer of foodstuffs will be utilized to the maximum. Slash and burn cultivation must decrease and stop. 

In the field of industry, the major hydroelectric plant projects of Nam Leuk and Houai Ho as well as other vital projects in other sectors must be complete and electricity sold to neighboring countries. Fodder factories should be implanted in areas, which are suitable. Other factories, such as sugar refineries, construction materials, agricultural tools, paper, cement textiles, iron and machines plants should be set up wherever possible. 

In the social field, the Government will take measures to curb social plagues, to stop opium growing and to repress drug trafficking. 

Promote Lao products and produce handicrafts for local use and export are the mottoes for the Visit Laos Year campaign for 1999 and 2000. Cultural, natural and historical tourism should help foreign visitors to understand Laos' millenary history, rich culture and policies for the country's prosperity. 

Laos must gradually become the regional hubs, the road and rail link between neighboring countries. Airports, warehouses, banks, hotels, telecommunications, immigration, customs, security and other services must be ready to support the move. 

To achieve all of this, the Prime Minister appealed to the entire Lao people to enhance patriotism and unity, in the spirit of laboriousness and thriftiness, to respect laws and regulations and to produce more for the market. 

  
MORE PRISONERS RELEASE BEING CONSIDERED  

The Public Prosecutor, speaking on amnesty to prisoners, hopes to increase the occurrence of the event, which currently takes place only twice a year on Lao National Day and Constitution Day. The Lao Government issued a decree on granting amnesty to a number of prisoners while it marked the 7th  anniversary of the Constitution of the Lao PDR on August 15 and it also plans to release more prisoners at the end of the year. 

The Lao government has granted amnesty to the prisoners every year since the country was liberated, but it will consider trying to increase the number of days for granting amnesty to prisoners in the future. The government will take into consideration important days such as Lao New Year for the possibility of becoming official amnesty days. The Government will also allow and grant amnesty to prisoners at the end of this year to the mark the 50th anniversary of Human Rights. 

The objective of granting amnesty to prisoners is to allow those who have changed their ways the opportunity to reintegrate into society to promote its justice. 

According to the decree, a total of 144 prisoners, including five women, are to be released from prison, while another 302 prisoners, including seven women, received a reduction of their prison term. 

The promptness of their release depends on the location of the prison and finalization of the necessary release documents. In the past, these activities have been carried out within a month after the President’s decree had been announced. 

The grant of amnesty, to prisoners is according to specific conditions and regulations that have  been met by the prisoners such as: Criminals who-paid attention to self education during their term of imprisonment; Criminals who feel remorse for their past activities and carry out activities to compensate for their wrong doings and for those that set examples to other prisoners by working and upholding and implementing prison regulations throughout their sentence. 

  
LAO AMBASSADOR PRESENTS CREDENTIALS TO PRESIDENT CLINTON  

Mr. Vang Rattanavong on September 10, presented his credentials as the new Ambassador of the Lao PDR to the United States of America to President Bill Clinton, at the White House, Washington DC. 

The Ambassador conveyed the best wishes of President Khamtay Siphandone to President Clinton and through him to the people of the United States. Mr Bill Clinton thanked the diplomat for conveying the congratulations from the Lao President and he returned his best wishes to President Khamtay and thanked the Lao Government for the cooperation in Missing In Action (MIA) in Laos, which is a priority issue for the United States. 

During the conversation, the Ambassador expressed his pleasure with the US President to realize the growing cooperation between the two countries, especially in MIA, drug control and humanitarian cooperation. The Ambassador added that the United States was the second largest 
investor in the Lao PDR. If the United States agreed to grant the Most Favoured Nations (MFN) status to the Lao PDR, then investment from the United States in Laos would increase. 

The President said that he would encourage cooperation between the two countries, and wished the Ambassador success in his diplomatic mission in the United States. 
 

  
LAO VICE PREMIER ATTENDS 53rd  UN GENERAL ASSEMBLY  

A delegation headed by Mr Somsavat Lengsavad, Vice Premier and Minister of Foreign Affairs to participate in the 53rd  session of the United Nations General Assembly in New York,               Mr Somsavat addressed to the General Assembly on September 22. 

Part of his speech, he stated that the world peace continues to be just as fragile and in various regions of the world, civil wars, conflicts among states, border disputes, ethnic, tribal and religious confrontations are still lingered. In the face of such a situation, it is important for the international community, in its respect for the United Nations Charter, to focus its energies and do its utmost to reduce tension and assist the counties concerned in resolving their problems by means of negotiations; thus favoring the current general trend toward international cooperation for development. 

Concerning the atmosphere in the Caribbean, the Vice Premier expressed his hope that the United State and the Republic of Cuba will commit themselves to reasonable negotiation in order to solve their dispute and end up the 30 years of economic, commercial and financial blockade against the Republic of Cuba, for the interest of the regional and world peace as well as that of the people of the two countries. 

In Southeast Asia, he said, the atmosphere of mutual cooperation continues, but many countries have experienced dramatic economic shocks caused by the financial crisis. On this issue, he urged all nations to assist and support those countries experiencing hardship to help avoid having the contagion spread to other regions. 

In his speech, Mr Somsavat supported all activities that will lead to the creation of peace in Cambodia because it will help build amity amongst the Cambodian people and stability in the region. 

He told the world gathering that social and political stability in Laos has firmly continued and the implementation of the economic renovation policy has been satisfactorily achieved. 

In his address, Mr Somsavat also focused on narcotics, stating that the Lao government has used strict measures to reduce opium production and suppress trafficking of other narcotic substances within the country. "However, the most pressing problem for Laos on the narcotics front at the moment is the import of chemicals for the production of narcotic drugs," he said. 

At the end of his speech, the Lao Foreign Minister asked the United Nations Assembly to improve and reform its organizational structure, calling on the world body to push for peace and development among the world's nations and to solve the problems of famine, poverty, and infectious disease.  "The United Nations Assembly is the only universal international organization 
capable of establishing peace and development around the world," he said. 

On his way back Mr Somsavat visited Lao Embassy in Washington DC, where he met with many Lao-American businessmen and talked to the Lao-American Community. 
 

SEPOLE AND PIN DISTRICTS GOT ELECTRICITY  

Sepole and Pin districts in Savannakhet were finally provided with electricity after an eight-month wait. The 3.3 billion kip installation effort finished in August.  The electricity is imported from Vietnam via a generator in Dong Ha district, Quangtri province. The connecting line is 97 kilometers long. 

Future plans call for the province to install electricity at Nong and Virabury districts, at an estimated installation cost of one billion kip. 
 

  
45,000 UXO DESTROYED DURING THE FIRST EIGHT MONTHS OF THIS YEAR  

During the first eight months of 1998, about 173.33 hectares of land for agriculture, public utility construction and development projects have been cleared, and over 45,000 UXO have been destroyed. 

One hundred and ninety four students including deminers, Community Awareness staff, Medics, Team Leaders and Instructors, have successfully graduated from the UXO LAO Training Centre based at the Ministry of Agriculture's Livestock Training facility at Nam Suang. 

A meeting organized by UXO LAO, the Lao National Unexploded Ordnance Program, was held to discuss progress during the first eight months of this year.  A review of the decisions and recommendations of UXO LAO' s Executive Steering Committee since the last National Steering Committee Meeting was included in the meeting's agenda. A presentation of the report of UXO LAO' s  External Evaluation conducted in June 1998 was presented as well as a briefing on the strategic and operational planning process to prepare the UXO LAO Work-plan for 1999. 

A discussion on the financial report of the Lao PDR Trust Fund and a review of funding needs for the coming year  were also discussed. 
 

  
HMONG MOVE TO SEDENTARY CULTIVATION IN LOW LAND  

People of the Hmong ethnic group who moved from Phoune district, the Special Zone of Saysomboune, to Nolong village, Bolikhan district, Bolikhamsay province, to wage a sedentary life and engage in fixed cultivation, received aid from the provincial administration. 

The aid consisted of 25 tons of sticky rice, two tons of salt, 5,000 pieces of corrugated sheeting, 350 blankets, and 320 mosquito nets. 

The aid was presented to 160 families, representing 800 people, by the head of the provincial Labour and Social Welfare Service. The people of the new settlement previously lived in outlying and mountainous areas, and practiced slash and burn cultivation. 
 

  
OPEC LOANS FOR ROAD CONSTRUCTION IN BOKEO  

The Lao government has been loaned US $45 million from OPEC Fund for the construction of a road linking Houai Sai district to Mom village, Bokeo province. The signing ceremony of the contract for the construction was signed by  the head of the provincial Rural Development project of Bokeo, and the representative of the Italian-Thai Company, who won the bidding for the construction. This road is in the framework of the Rural Development Project of Bokeo province. 

A 67 kilometre long, and 6.5 metre wide road, with four layers, of which two are asphalt, and 13 concrete bridges are to be built. The construction of this road is classified into two phases. The first phase is from Houai Sai to Nam Keung with a length of 27 kilometers with  five concrete bridges.  The construction of the road is to start early this month, and expected to be completed by 2001.  The second phase will start from Nam Keung to Mom village. This road, once completed, will facilitate communication, trade and tourism between Laos and Myanmar, and also contribute to the cooperation and business in the golden quadrangle. 
 

MEETING ON PROMOTION OF FOREIGN INVESTMENT IN SOUTH  

A conference to promote foreign investment for seven provinces in the central and southern parts of Laos was held recently in Champassak province. 

Participants evaluated the progress that provinces had so far achieved in this project and shared their opinions on the implementation of the projects. In the meantime, the participants agreed on defining an investment plan to suit the current economic reality, and capacity of each province, aimed at maintaining principles, and unity between companies and the state organizations. 

The foreign investment will cover the fields of industry, agriculture, tourism and others. 
The conference was held by the Department of Foreign Investment Management in conjunction with the Asia Development Bank (ADB) and participated in by 30 delegates from board in charge of Planning Co-operation, Agriculture and Forestry and Finance and Industry services from seven provinces: Borikhamsay, Khammuan, Savannakhet, Champassak, Saravane, Sekong, and Attopeu. 

ADB PLEASED WITH ITS PROJECT PORTFOLIO PERFORMANCE IN LAOS  

The Asian Development Bank will strongly support Laos in its macro-economic reforms and its development efforts of social, physical and rural infrastructure. 

About 18 on-going projects in Laos are funded by loans from the Asian Development Bank (ADB). Every year the ADB comes to Laos to carry out its annual country portfolio review. The main objective of the review is to assess the overall performance of the ADB's program over the past year and make specific recommendations for improvements in project implementation. 

The ADB mission stated that the Lao PDR has been negatively impacted by the regional economic crisis. As a result, the country has experienced high inflation and a significant  deprecation in the kip. The country has also experienced a reduction in Foreign Direct Investment (FDI) inflows and exports are likely to induce some pressure on the external balance. The mission also said that the economic reforms that the government was undertaking were very important to continue the momentum and the pace of those economic reforms; "There must be economic growth and the regional economic crises is having an impact on Laos. It is affecting the value of the kip and it is affecting the inflation rate. The ADB mission basically came to discuss the macro-economic situation and the portfolio of the projects. 

The ADB said it will strongly support Laos in macro-economic reforms and its efforts in the development of social, physical and rural infrastructure. Over the past three years, the ADB's operations have expanded significantly in the Lao PDR with loan commitments averaging approximately US$ 90 million annually, with an additional US$ 5-6 million in technical assistance grants. This makes the ADB one of the largest donors to the Lao PDR. 

Every year the ADB adds new projects to the portfolio. At the moment ADB is supporting the government in developing physical infrastructures such as the Nam Leuk hydropower project. It has also been very involved in the transportation sector as well as the airport improvement project. The ADB is also active in social infrastructure, which includes education, health and agriculture. 

A Senior Program Officer of ADB said that responsible for 50 per cent of the gross domestic product, agriculture is a large part of the Lao economy, and any portfolio that the Bank has in Laos can not exclude agriculture. The ADB has a number of projects planned for the future in agriculture and rural development. "One of the most difficult aspects in promoting agriculture is how to get credit to farmers and how farmers can have access to credit in order to buy feed and agricultural equipment. He reiterated that in the future the Bank would try to help the government build and strengthen its ministries and departments, in order to allow them to receive the resources and projects that the Bank would be lending to the Lao PDR. 

The ADB also has two kinds of technical assistance. One is technical assistance that helps the government design and implement the project and the other helps to advise the government on how to do things better or build capacity within the government. The ADB is moving more and more towards a balanced portfolio between physical infrastructure and social sectors and agriculture. 

Education is a very important part of the sector because the government needs to have human resource development. But like many countries, which are in a similar state of development, there is a need for education, health, agriculture and roads, so it is a question of relative importance and education is a very important sector in which the ADB is working. Recently, the ADB has approved a very important basic education project for girls at a cost of US$ 20 million. 
Health projects are another focal point that the ADB cannot exclude either. The ADB has a project called "Primary Health Care", it is a pilot project for the rural, remote areas of the Lao PDR. The focus of this project is on preventative health care, which includes Sexually Transmitted Diseases (STDs), AIDS and HIV awareness. 

During the duration of the portfolio review , the Bank met with all the ministries that have ongoing projects with the Bank. In a 'Wrap up' meeting attended by all the representatives of the 
line ministries, all the issues were discussed regarding the on-going projects, the things that were going well and the things that were not going so well and recommendations were made on how the ADB could help the government make these projects even better in terms of their implementation. Delegates to the meetings said there were a number of ways the Bank could help in the future. One is by providing more assistance in project implementation activities, for example maybe giving some technical assistance to ministries that need to build up their capacity to monitor and implement projects. Also recommended was the introduction of an implementation document, which would describe the process in an easily understood manual and ADB will give seminars on project implementation and administration. A seminar will be held in Vientiane in November, where a number of government officials will come and learn more about project implementation and administration. 
 

TAIWANESE FIRM TO LOAN US$ 1,9 BILLION TO LAOS 

Taiwanese lenders have agreed to lend upwards of US$ 1.9 billion to the Government of Laos to fund future investments around the country. The Memorandum of Understanding (MOU) for the loan and joint investment between the Lao Government and Pontis King Business Co Ltd. of Taiwan was signed in Vientiane. 

According to an official of the Committee for Foreign Investment Management and Economic Cooperation (FIMC), the company will provide the loan at what was said to be "low interest",  and may depend on the types of targeted investments. 

The Minister to the Prime Minister's Office and the Chairman of Committee for Foreign investment Management and Economic Cooperation, Prof. Bountiem Phissamai,  represented the Government at the signing and said that the loan should be forthcoming in the near future and that the long-delayed Lao-Star satellite program might be the first customer. Launch of Laos' first satellite has been delayed for months because of funding difficulties caused by the regional economic crisis. 

The money will be used for building infrastructure, specifically hydroelectric power lines, roads and other industrial projects. 

This loan will be very important stimulus for the Lao economy. Many are sounding optimistic with the arrival of these Taiwanese investors, believed interested in bringing real direct investments and cooperation to Laos. 

  
ALCATEL WINS US$ 22 MILLION TELEPHONE CONTRACT 

French telecommunications giant Alcatel has won a US$ 22 million contract to construct an Outside Plant telephone network in Laos. 

Announcement of the deal was made public on October at an official contract signing ceremony between Lao Telecommunications Co Ltd. (LTC) and Alcatel at the LTC office. 

LTC plans to begin expansion of its national network service next year by boosting the number of telephone network areas across the country. Last year on October 29, the company began accepting formal bids for the project from foreign telecommunications companies. 

This project will commence in May 1999, and work is expected to finish in the year 2010. 
When completed, the project will see 58,000 additional telephone lines in operation around the country. 
 

  
NEW POTENTIAL FOR EXPORT 

Sun flower growing may be the next agricultural innovation for Lao farmers to continue earning an income after the completion of the rice harvesting season. 

Ideas suggesting the potentiality of sunflower harvesting were presented by Thai agricultural technicians at a workshop in Vientiane . 

The Microtec Computer company and Vientiane municipality Agriculture and Forestry Service sponsored the workshop conducted by Thai technicians to present information about  sunflowers, and introduce plans for implementation methods to their Lao counterparts from nine districts of Vientiane municipality of the Agriculture and Forestry Service. 

The demand for sunflowers regionally and around the world is high, and the weather and soils in Laos are also suitable. It can be an income supplement for Lao farmers, once the rice harvesting is complete. It takes about four months for one yield. 

The objective of the workshop is to provide information on growing techniques and to encourage Lao technicians to promote its advantages to farmers to grow it for export. 

The first phase of this project is the workshop to promote the advantages of the sunflower and convince the farmers of its benefits. The second phase will be to carry out a practical experiment by planting an area of three hectares, in Sikhottabong district Vientiane province with sunflower seeds. Organizers will then invite the agricultural staff to monitor and study their progress. The company then conduct a survey on the interested farmers, who want to plant this crop and the company will supply the seeds to them and make a contract stating that the company will then buy the flowers from them. 
 

LAOS GAINS ACCESS TO THE SEA VIA VIETNAM  

A bilateral meeting, held between Lao and Vietnamese officials, concluded with an agreement to build the harbour at Voung Ang, Vietnam. This harbour is directly opposite, Khammouane province in the South China Sea. 

When fully completed, Laos will have access to the Pacific Ocean by gaining permission to use the harbour as a gateway for its imports and exports. Goods brought in and out of the country will be transported along national road Number 12 to the Mouya border check-point between Laos and Vietnam. 

The meeting also discussed road construction from the harbour to Laos, the rules for use of the harbour, warehouse storage procedures, and the rules for the cross-border transport of goods. 
 

  
HIGHWAY REST COMPLEX TO BE COMPLETED  

After over three year's construction costing more than 1 billion kip, a new multi-purpose highway rest station is getting set to open in December at Nong Teng village, 10 km north of Vientiane on Road No 13. 

The facility is being built by the Lao Aussie Europe Import-Export Co Ltd and is the first-ever, integrated transportation rest station in Laos, combining a shopping center, a petrol station, a garage, food stands, and a guesthouse. 

The complex will benefit traffic conditions in Vientiane and lead to improve safety levels. Every lorry entering Vientiane from the north will be required to stop and await a customs  clearance check before being allowed to continue on into the city. 

This will, in view of the director, allow transportation authorities to have better control over the kind of vehicles plying the streets of the capital. Staff at the Nong Teng bus station will be permitted to examine in-coming buses and lorries to check for potential problems. Vehicles deemed unsafe or hazardous will be denied entry to Vientiane and there will be mini-buses on hand to ferry passengers to their destinations. 

Work on the project is now 70 per cent compete and has been financed completely by the Lao Aussie Europe Import-Export Co Ltd. 

  
LAOS GAINS MFN STATUS IN GARMENTS FROM NORWAY  

The Government of Norway has extended the duration of the Most-Favoured Nations status in exportation of garments for the Lao PDR. The move was announced by Mr Onesy Boudsyvongsak, President of the Industrial Textile and Garment Group (ITGG) of the Lao PDR. 

This was made in accordance with the demand of the Government of the Lao PDR. The Ministry of Foreign Affairs of the Kingdom of Norway released the extension of the duration in a message on August 28 to the Lao Embassy in Stockholm. 

The new agreement will be in effect until February 28, 1999.  All garments produced in Laos by using ASEAN countries' raw materials will get tax exemption in Norway. 
 

  
US GOVERNMENT DONATES GENERATORS AND WATER PUMPS  

Mr. Soubanh Srithirath, Minister to the Office of the President, presided over a ceremony in which the US Ambassador to the Lao PDR, Ms Wendy Chamberlin, presented a shipment of three generators and three water pumps to the Governor of Huaphan province, Mr Cheu Ying Vang. The value of this donation is estimated at US$ 47,000 (178.6 million Kip). The ceremony was held at the Office of the President. 

The three 3-kilowatt generators will be used to provide electricity for medical clinics in Huaphan province. The pumps will be used for irrigation and flood control. Each pump is capable of pumping 1,400 litters of water per minute and irrigating approximately 51 hectares of land. The US Embassy's Civil Affairs Liaison Team (CALT) coordinated the donation of this equipment. 

The CALT also held a training course for irrigation engineers from the Lao-American Project, which operates in Viengthong and Huameuang districts. The training covered operational and maintenance procedures for the donated generators and water pumps. 

This humanitarian assistance is part of the US government's response to the needs of the Lao people who have assisted the United States in the on-going efforts to obtain the fullest possible accounting of Americans still missing in Laos. 

  
JAPANESE GOVERNMENT ASSISTS IN ECONOMIC DEVELOPMENT IN LAOS  

The Japanese Government has agreed to grant the Lao PDR with 144,951,000 yen (US$ 1.07 million) to contribute to the economic construction and development and improve the Lao people's living conditions. The grant is contained in the debt write-off project for the Nam Ngum hydropower station, second phase, for 1998. 

The agreement on the write-off of debts was signed at the Ministry of Foreign Affairs on  between Mr Phongsavath Boupha, deputy Minister of Foreign Affairs, and Mr. Hiroomi Sakai, Japanese Ambassador to the Lao PDR. In the first half of 1998, the Japanese government had provided grant assistance for the Lao PDR on two installments. On March 27 the Japanese government granted 1 .5 billion yen worth of aid to the non-project program for the Infrastructure Improvement Project. And another grant was the 400-million-yen Rice Provision Project for the year 1997-98. The total cost of the two projects amounted to US$ 18 million. 

In early June, the Japanese government granted 416 million yen for the construction project of a Forestry Restoration and Protection Center in Vang Vieng district, Vientiane province; 260 million yen for the Malaria Control project, and the 146,321,000-yen debt write-off project for the Nam Ngum dam for the first half of this year. The three projects are valued at US$ 7 million. 
 

LAOS, CHINA SIGN AGREEMENT ON COOPERATION  

An agreement on economic and technical cooperation between the governments of the Lao People's Democratic Republic and the People's Republic of China was signed at the Laos-China Cooperation Commission (LCCC)'s Office, attached to the Prime Minister's Office. The signatories to the documents were Mr Mai-ean Inseng, LCCC Chairman, and Mr Pan Guangxue, Charge d' Affaires a.i. of the Chinese Embassy to Laos. 

The agreement stipulated that due to the demand of the Lao Government's socio-economic development, the government of China agreed to provide 10 million yuan (Chinese currency) of grant aid to the Lao government. 

Mr Mai-ean expressed, on behalf of the Lao Government and the Lao people, gratitude and thanks, through Mr Pan, to the government and people of China for their great assistance to Laos. 
 

  
CANADA SUPPORTS URBAN ENVIRONMENT PROJECT  

The Canadian Ambassador to the Lao PDR, Bernard Giroux, recently announced a grant of US$ 20,094 for a two-year urban environment project in Vientiane municipality. 

The funds will be used to produce a kit of educational media materials dealing with the protection of the urban environment, including illustrated booklets for children and adults, posters, stickers and slide sets for presentations. Training regarding the use of these materials will also be provided for teachers in seven villages in Chanthaboury district. Government officials and local people will also be encouraged to participate in various project activities, and a campaign to clean-up Vientiane's urban environment will be implemented. 

The Canadian grant supported activities will be implemented by the French non-government organization Ecoles Sans Frontieres (ESF) in cooperation with local communities and a number of government agencies. 
 

  
CHINA DONATES 300 TONES OF RICE TO LAOS  

The Government of the People 's Republic of China and the Government of the Lao PDR signed a hand over document for 300 tones of rice donated by China to Laos as aid relief for victims of natural disaster at the Ministry of Labor and Social Welfare in Vientiane . 

The 300 tones of rice have already been distributed to Luang Namtha, Phongsaly and Oudomxai provinces in the north of Laos. Those three provinces were most severely affected by flooding, drought and forest fires over the past year. 

This is the first time the Government of the People's Republic of China has granted assistance to Laos in the form of rice. Last year, it granted US$ 120,000 to Laos as assistance to victims of natural disasters. 

The hand-over document was signed by the Chinese Charge d' Affaires, Mr. Pan Guang Xie and the representative of the Lao Government, Dr. Khamphay Ratsami, Vice-Minister of Labor and Social Welfare. 
 

  
DANISH GOVERNMENT SUPPORTS NATIONAL FOREST SEED SECTOR IN THE LAO PDR 

The government of Denmark is providing DKK 6. 3 million from the Danish Environmental Facility to improve the National Tree Seed Sector in the Lao PDR for a five year project entitled Support to Institutional Capacity Building of the National Tree Seed Sector in the Lao PDR. 

The Government Agreement was signed in Vientiane. The project office will be located at the Nam Souang Research Center. In addition to the allocated budget a Danish technical advisor will be provided to assist the project in the Lao PDR. 

The project will develop proposals for appropriate policies, legal framework and organization of the tree seed sector. Key facilities at the Seed Procurement Unit at Nam Souang Research Center will be upgraded. Staff will be trained in order to improve methods, documentation and technologies for collection, handling and storage of forest seed. Relevant methods and technologies will be imparted to seed users. Further more the project will develop a national strategy for conservation and use of generic resources of indigenous priority species. 

In the long term, the project aims at enabling Lao PDR to improve wood production and rehabilitate degraded forest. The project has a strong focus on safeguarding the environment. 

Denmark has been a pioneer country within the forest seed sector. During the last 30 years, Denmark has supported national forest seed programs throughout the world covering areas of seed procurement and tree improvement, and in the last years also in gene conservation. 
 

  
MISSING IN ACTION PROGRESS DISCUSSED DURING TALKS  

The United States of America and the Lao governments organized a technical and consultative talk to discuss the progress of the Missing in Action (MIA) investigations. The talk was organized by acting director of the Europe, Americas Department of the Ministry of Foreign Affairs and Brigadier General Tucker of the Joint Task Force Full Accounting (JTF-FA), from Hawaii. 

The main topic of discussion was the 1998 half-yearly report on the progress of the MIA and Prisoners Of War (POW) investigations. A plan was also discussed regarding the Lao and United States future cooperation. 

Over the past six months the joint task force, between the Lao and the US, has conducted 34 investigations. Of those 34, eight excavation exercises have been carried out, which have recovered 93 bones, 12 teeth and 2 dog tags. At present the joint task force operations between Lao and America total 61. 

  
NEW JOINT INVESTIGATION AND RECOVERY OPERATIONS FOR US MISSING IN ACTION 

Technical representatives of the Lao People's Democratic Republic and the United States on October 1  began pint investigations and remains recovery operations pertaining to Americans unaccounted for in Laos as a result of the war in Southeast Asia. 

This will be the 40th  Joint Field Activity conducted by Lao and US representatives since Joint Task Force-Full Accounting was formed in January 1992. 

The operations are planned for three provinces, Savannakhet, Saravan and Sekong, and are scheduled to last 30 days. The joint team plans to investigate as many as 24 cases and excavate up to eight sites. 

The US team will consist of 40 specialists with experience in investigations and remains recovery operations, and will be joined by Lao officials. 

The US team will be led by US Army Lieutenant Colonel Robert Gahagan, Commander of JTF-FA Detachment 3 in Vientiane. 

There are 2,081 Americans still unaccounted-for from the war in Southeast Asia. Of the total, 444 are unaccounted-for in Laos. 

Few weeks ago, the Lao and American technical teams also launched joint survey operations of 21 cases  in Houaphanh and Xieng Khouang provinces and in Vientiane municipality. The teams also conducted excavations of five cases in Savannakhet province. 

The joint actions were made according to the humanitarian policy of the government of the Lao People's Democratic Republic, the 1997-1998 bilateral cooperation plan and in response to the requests of the U.S. government and the families of the Americans missing in action. 

  
LAO PEOPLE HELP ALLEVIATE THE SUFFERINGS OF THE CHINESE PEOPLE  

The Lao Government, on behalf of the Lao people donated over 33 million kip to the people of the Republic of China to aid those who were affected by natural disasters in the Northern and Southern parts of the country. 

The hand-over ceremony was held at the Prime Ministers Office. Mr Saysomphone Phomvihane, Minister of the Prime Ministers Office and President of the Lao-China Friendship Association, on behalf of the Lao Government and the Lao people presented the donation to Mr Zhao Jiahua, Ambassador of the Republic of China to the Lao PDR. 

Mr Saysomphone said: "Although, this is a small amount of money, it is nevertheless evidence of the deep spirit of fraternal friendship of the Lao people to the Chinese people." 
The Chinese Ambassador also thanked the Lao people who contributed to help the Chinese people in this event. 

NEW ENGINEERING SUBJECTS TO BE IMPLEMENTED IN THE YEAR 2002 

The Electronics Department of the Faculty of Engineering of the National University of Laos have introduced two new subjects, Power Engineering and Computer Engineering to be incorporated into the engineering curriculum at the university. These two very useful subjects will be implemented in the year 2002. These two subjects are new to Laos that researched by Lao and Japanese experts, they will be used to teach in the department of electronics in the future. 

The Electronics Department and the Japan International Co-operation Agency (JICA) organized a workshop on teaching development strategies and course improvements, at the Electronics Department University. 

Many topics were introduced, following the key developmental issues of the University's computer engineering curriculum, such as a demonstration of the Internet, the introduction of advanced network technology, the Power Engineering curriculum and other topics relating to power electronics in the Lao PDR. 

The main objectives of the seminar were the reports of two JICA experts in support of the upgrade of this department and one member of the department who went to Thailand for the certificate of Power Engineering. At the same time, the experts gave a demonstration of Internet links with the telephone wires to show the teachers and gave them an opportunity to practice. 
The teachers and experts were also able to exchange ideas about usage with each other. 

The Electronics Department has 23 teachers, who received training abroad, technical experts to teach in the university, and modem equipment used for research from funds received from JICA. These new subjects are of great interest to many departments in the university because they are new in Laos. 

TOUGH SKIN PERFORMANCE AT NECP  

The performance by tough skin performers involving swords and blades took center stage at the National Ethnic Cultural Park to draw attention to World Tourism Day. 

Although the display known as "Forn Lai Ngao" has long been one of the more astonishing artistic performances in Laos, it still makes people cringe with disbelief at the sight of performers who are seemingly immune to the damage a sharp blade can produce when cut across human skin. 

The show was divided into three parts. The first part proved to the audience the actual razor sharpness of the swords as a group of men and women cut banana trees while dancing. The second part involved a performance of women who showed the toughness of their skin by running the sharp edge of the scimitar along their necks, shins, bellies, tongues and the space between their toes. In the final act, the men of the troupe performed similar feats as the women had, but with greater vigor and force and with the added pressure it seemed that much more dangerous. 

People who have never seen this nature defying exhibition for themselves may not believe that it is real and prefer to argue that the display involves clever deception similar to a magic trick. However, those who are accustomed to this performance believe it to be very real indeed. 

When looking for the source of the mystery, there are found two possible answers for the seemingly impenetrable nature of the performers' skin. The first explanation offered by believers involves the mysterious words chanted by the teacher of the performers. The second source of supernatural strength comes from the eating of a ginger-like root found secretly in the jungle. People who eat this root are said to gain an armor-like shield of skin that lasts for several days. 

This performance is now registered on the Visit Laos Year program to begin next year and continue until the year 2000.  At present, a committee responsible for Visit Laos Years activities is hard at work putting together a celebration package of similar events. 

Officials this year used World Tourism Day as test-run leading up to next year's activities. The event included, boat races, sports competitions, artistic performances, an exhibition of traditional handicrafts and a children's painting contest.