2222 S. Street, N. W.
Washington, D. C. 20008
Tel: (202) 332-6416
Fax: (202) 332-4923
http://www.laoembassy.com
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| EMBASSY OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC
2222 S. Street, N. W. Washington, D. C. 20008 Tel: (202) 332-6416 Fax: (202) 332-4923 http://www.laoembassy.com |
| NEWS BULLETIN OF THE LAO EMBASSY |
| JULY-AUGUST 1997 |
LAOS AND THE U.S. CONCLUDED BILATERAL TRADE AGREEMENT
At the end of the third round of negotiations, on August 13, 1997 in Washington, D.C., a Memorandum of Understanding (MOU) on a bilateral trade agreement and a bilateral investment treaty was concluded between Soubanh Srithirath, Vice Minister of Foreign Affairs of the Lao People's Democratic Republic and Susen G. Esserman, General Counsel, Office of the United States Trade Representative. The talks resulted in comprehensive agreements aiming at normalizing economic relations between the two countries. The Laos-U.S. bilateral trade agreement is necessary for the granting of normal trade status (Most-Favored Nation treatment or MFN) to Laos by the U.S. Congress. The text of the bilateral agreement addresses the issues of trade in goods, protection of intellectual property rights, and trade in services. The Laos-U.S. bilateral investment treaty guarantees investors of each country the rights to invest in the other country on terms no less favorable than those accorded domestic or third-country investors, in most sectors. It also guarantees the free transfer of capital, profits and royalties. This is the first bilateral investment treaty that the United States concluded with a Southeast Asian nation. These agreements form a solid basis for establishing trade and investment relations as well as for enhancing multi-cooperation between Laos and the United States.
LAO PDR BECOMES MEMBER OF ASEAN
Southeast Asians have done themselves proud by taking a significant
step toward fulfilling aspirations to unite all 10 nations of the region
under a single for multilateral dialogue on political and security
organization. Laos and Myanmar were admitted on 23 July as new members
of the ASEAN, bringing the membership to nine. It is hoped that Cambodia,
too, will be able to assume its rightful place in the near future.
ASEAN was established on 8 August 1967 to promote the economic, social
and cultural development of the region through cooperative programmes;
to safeguard the political and economic stability of the region against
big-power rivalry, and to serve as a forum for the resolution of
intra-regional differences.
With the end of the Cold War, the political and economic situation
changed and the transformation allowed ASEAN to turn its faltering
steps into firm strides. ASEAN has come a long way and now has an
impressive record -- from promoting political and economic cooperation
among its members to developing fruitful relations and mutually
beneficial cooperation with other countries .
The achievement of ASEAN are many. Significant among them are:
POLITICAL
*The ASEAN Regional Forum (ARF) established in 1994 has developed into a
well- known forum for multilateral dialogue on political and security
affairs in the Asia-Pacific.
* The Treaty on Southeast Asia Nuclear Weapon Free Zone, signed by the
ASEAN
Heads of Government at the 5th ASEAN Summit in December 1995 has been
In force since 27 March 1997.
* ASEAN now has eleven dialogue partners including United States.
ECONOMIC
* The ASEAN nine has a combined population of over 480 million and
gross domestic product of $632 billion.
* Economic growth is forecasted to coverage between 7 percent and 8
percent in 1997.
* ASEAN Free Trade Area (AFTA) is to be set up by the year 2008.
* The Common Effective Preferential Tariff (CEPT) Scheme, which is the
main mechanism for realizing AFTA was launched on 11 January, 1993;
* Between 1993-95, intra-ASEAN exports grew from $42.77 billions to 68.83
billions, representing an average growth rate of 30.46% per annum; and
*ASEAN cooperation in the area of investment through the establishment
ASEAN investment area ( AIA ).
In reviewing the situation, Laos felt the time was ripe to join
ASEAN. It firmly believes that in doing so, it can complement the
efforts of the other members in maintaining peace and stability in the
region and promoting economic growth and prosperity for all.
Laos is going to join the World Trade Organisation (WTO) in the appropriate future and had applied to be a member on June 30 this year. In preparation for joining it, the Ministry of Commerce invited representatives from various ministries, departments, institutions and companies to participate in a meeting called "National Seminar on the World Trade Organisation and the Multilateral Trading System" which was held in Vientiane between July 15-17, under assistance from the WTO. During the three-day seminar, the participants were introduced to multilateral trading system, its rules and disciplines, and several agreements involved in the WTO's activities. These agreement include Agreements on Agriculture, Application of the Sanitary and Phytosanitary Measures, Textile and Clothing, Customs and Valuation, Technical Barriers to Trade, Preshipment Inspection, Import Licensing Procedures, Rules of Origin, Subsidies and Countervailing Measures, Anti-Dumping Measures, Safeguards, Trade Related Aspects of Intellectual Property Rights, and Trade-Related Investment Measures. The participants were also introduced to the General Agreement on Trade in Service and understanding of' rules and procedures governing the settlement of disputes notification requirements. The participants have also listened to the result of the Uruguay Round of Multilateral Trade Negotiations which were of paramount interest to the participants. The global result of the Uruguay Round was the implementation of the agreements which would lead to more secure and open markets for exports of the developing countries. These would represent additional opportunities to diversify sources of foreign exchange meaning. The Uruguay Round Agreements also created a World Trade Organisation which provides a permanent forum for negotiating trade relations on a multilateral basis among its members. The specialization encouraged by more open markets will allow developing countries to concentrate their resources in areas where their productivity advantages are largest. It is believed that the intention of the Lao Government to join the WTO will be effective in the appropriate time.
(Vientiane Times , July 12-15, 1997 writes about the interview given by H.E. Hiem Phommachanh). " Lao - US relations have had highs and lows, but diplomatic ties between the two countries were never severed ," noted Ambassador Hiem Phommachanh during a conversation with Vientiane Times at his Washington Embassy. He noted that, of the three countries of Indochina, Laos was the only one which always maintained diplomatic relations with the United States during and after the war. The relations, which had been kept at Charge d'Affaires level since 1975, were upgraded to Ambassadorial level in 1992. The two main issues which are of interest to the US bilateral relations with Laos are the recovery of American soldiers missing in action during the Indochina war (MIA) and the fight against drug production, trafficking and consumption which are considered as humanitarian issues. " As we are concerned for our own people's condition following the war, we understand the worries of the American people for their missing loved ones. It is for these humanitarian reasons that Lao PDR accepted to cooperate with the US in both issues and has tried its best to help, Mr. Hiem said. Cooperation has developed gradually; in 1996, Laos was removed from the list of countries not entitled to US direct assistance. In May of the same year, the two countries signed an agreement on Overseas Private Investment Cooperation ( OPIC) which offers financing for US ventures in Laos via direct loans and loans guarantees and providing a broad range of political risks. Now, both sides are working on a trade agreement which, once signed, would constitute a major step towards MFN, the Most Favored Nation status. The granting of MFN status would give a boost to the Lao economy as it will open wide markets for its products in the US. The private sector will consequently expand. Moreover, more US private companies will be able to invest in Laos. " We hope that the US government or Congress would not raise obstacles to the agreement," Mr. Hiem said. The Ambassador noted that , for the time being , garment is the major export item to the US . Since 1993 Laos export 125,000 dozens of garment to the US every year with an annual increase of five percent. Without MFN, taxes are high - over 40 percent, and the quota is limited. Without MFN, US companies can invest in Laos but cannot sell their products in the United States. The EXIM Bank, the US Bank for export and import still gives no loans to American companies in Laos. " With MFN ,we will have markets and investments. We need American investors to invest in Laos," the Ambassador said. The Ambassador also targeted Americans of Laos origin, saying many would have the opportunity to invest in their homeland if MFN were granted. Mr. Hiem noted that the United States was the number two investor in Laos. Ambassador Hiem Phommachanh voiced confidence that the Lao-US relations will expand in the future and cooperation between the countries will increase. The US has representative in Vientiane for MIA affairs and the Drug Enforcement Administration ( DEA ). " We have done and will continue to do our almost to meet the US requirements concerning MIAs and drug. " the Ambassador insisted. " We are a small country. We cannot be harmful to the US national security. We want the two countries and peoples to understand each other ." he added. Mr. Hiem said another duty of his embassy is to make Laos known in the US and Canada and Mexico where he is also accredited. " In fact, few people know about Laos and where it is located on the world map. Many people do not know we have suffered from the war and the American bombing." he said. The embassy tried to publicize the situation of Laos, its culture and traditions, and the Lao People's efforts in national construction. It must explain the government policy of renovation . The embassy has good cooperation with Non Government Organizations ( NGO ) who want to start projects in Laos. They are explained the country's situation and needs and are accorded all facilities for their trip to Laos. Business people who are interested in having economic relations with Laos are provided with all information. " We have an increasing number of requests as to feel MFN is getting closer ." Mr. Hiem said. Talking of Lao - Americans, Mr. Hiem said there were about 300,000 people of Lao origin in the US and 20,000 in Canada. " Our duty is to have the Lao living in the two countries understand the situation of the country and its economic policy, we encourage them to turn towards their fatherland, to follow events at homeland and to come and visit the homeland. For those who have the means, we give them all facilities to invest in Laos and to help their homeland." The Lao living in the US and Canada have maintained the culture and traditions of Laos and greatly contributed to showing them to Americans and Canadians. They hold celebrations during Pimai, the Lao New Year, and other festival such as the Rocket Festival. " They even organize Seung Bangfai, the colorful rocket procession." In 1996 some11,000 overseas Lao from the US and Canada went to visit the homeland , especially during the Pimai and the Thaluang festival. We expect more of them will travel home this year. The embassy encourages Lao Americans to invest in Laos and contribute to the country's development. Many have helped in various fields of development such as building or rehabilitating schools, donating relief aid during floods. Many aging people like to say they want to spend the last part of their life in Laos. They can live a comfortable life in the homeland even with a modest pension form North America. " I am glad to see Lao people keep their fine national traditions and maintain their love for their country. Some have succeeded in business and are acknowledged by the business cycles here." said Mr. Hiem who mentioned two men who had developed computer business in Providence, Rhodes Island, and Wichita, Kansas, and had become important figures in the profession. He also talked of Lao farmers who supply the whole Honolulu market with all kinds of vegetables from their farms. He said those people would certainly be willing to share their experience with compatriots back home. Some have studied or have given the opportunity to their children to study and get degrees. Their knowledge and experience can also be useful in nation development. " However, the ambassador observed, there are groups of people who still live in the past and seek revenge. But their number is decreasing and they are more and more isolated as their stand does not accord with the trend in the region and in the rest of the world. The embassy also takes care of Lao citizen living in or visiting the US and Canada . Many people travel to North America to visit their relatives here. Moreover there are students, including holders of Fullbrigh and Humphrey scholarships, and students who went to the US and Canada on their own funds. " The United States and Canada are wealthy countries with high technology, we can use that technology to develop our country," Mr. Hiem said. " We have good relations with the major financial institutions based in Washington such as the World Bank and the International Monetary Fund and we do everything to cooperate with and facilitate visits of their staff to Laos," He added. Laos has a beautiful and elegant embassy in a quiet area of Washington DC. The Chancellery is staffed with one counselor, one second secretary, two third secretary and two attaches. " That is not enough, especially when Laos joins ASEAN, there will be more activities of all kinds with ASEAN embassies." Ambassador Hiem said.
(Following is the assessment of the relations between the peoples and governments of the Lao PDR and the United States, disclosed by the US Embassy in Vientiane on the US National Day, July 4, 1997). LAO-U.S REGIONAL DIALOGUE AND TRADE PARTNERS: The United States enthusiastically supported the decision of ASEAN members to invite Lao PDR to join this influential regional group. Within the framework of ASEAN, the United States looks forward to discussions with Lao officials on regional economic and security issues which affect our two nations. In the past several years trade and commercial ties have become closer. The number of American businesses in Laos has doubled each of the past three years, making the United States the second largest investor in the country. Understanding between our two governments have benefited greatly through an increase of high level official visitors and exchanges. The United States would like to see these positive trends toward better relations continue. AMERICA APPRECIATES LAO GOVERNMENT COOPERATION IN THE SEARCH FOR REMAINS OF MISSING SERVICEMEN: Since 1992 Lao government officials from the military, provinces, and various ministries have provided enormous assistance to the American government in its efforts to identify the remains of missing servicemen. The American People deeply appreciate the humanitarian motives of the Lao Government to ease the emotional distress of families who lost loved ones during the war. Recovering remains is important in American culture and religion. Each time Lao villager comes forward with information to help locate remains, the American people are deeply moved by the act of kindness. U.S. HUMANITARIAN AND ECONOMIC ASSISTANCE: American people are mindful that many Lao families also lost loved ones during the war and that their families continue to face economic hardships. The U.S. government also wants to help the Lao people and increased assistance to Laos by 150 per cent last year alone. Aid projects include building schools, renovating hospitals, providing irrigation pumps, assisting the rural health system and supporting the national HIV/AlDs program. In addition, this year the United States provided trucks and vans and several large shipments of medical supplies to the Lao government. Our two countries are discussing additional irrigation systems, road building equipment, help to prepare rice paddy and various other project. COUNTER NARCOTICS COOPERATION: The U.S. and Laos share a deep commitment to suppressing the threat deadly narcotics pose to all peoples of the world. Since joint cooperation began in 1989, the U.S. has contributed over $14 million dollars to Houaphanh province in a project to provide former opium growers another livelihood so they could stop narcotic cultivation. The U.S. contribution to the Lao American project in Houaphanh has built roads, schools, clinics, dams, irrigation and electrical power systems. With more than 460 hectares of new irrigated paddy land, villagers happily give up opium production. The U.S. government intends to give an additional $900,000 to Oudomsay province this year for rural development in recognition of the firm anti-narcotics policies of the provincial government. U.S. AID TO RETURNING LAO REFUGEES : The United States offers resettlement aid to Lao villagers who chose to return to their homeland. Since 1993 the U.S. has given over $1.5 million to help build irrigation systems, schools, clinics, and detoxification centers. U.S. EDUCATION AND TRAINING PROGRAMS: Through grants and fellowships such as the Fulbright and Humphrey scholarships, the U.S. seeks to help Laos strengthen human resource capabilities. Over the past several years, $2,210,000 has been provided to fund several projects. These include: supplying an American English teacher for the National University of Laos, training in library science, 30 day study tours of the U.S. for four Lao government officials each year and technical training for television and radio managers. The U.S. believes fellowships, English language materials, visitor grants and guest speakers further mutual understanding. These programs also assist Lao government efforts to reform the economy and boost preparedness for ASEAN.
LAO GOVERNORS VISITING THE U.S.
Sponsored by the U.S. Information Agency, Governors Phoumy Thippavone (Xiengkhouang), Soukanh Maharat(Bokeo) and Somphand Phengmany(Houaphanh) have made a study tour July 21- August 8, 1997 in Washington DC, Texas, California, and Hawaii. This was the first time that a delegation of such importance level paid a visit to the U.S. The visit mutually offered both the people of the Lao PDR and the United States. The three northern provinces represented by their governors face several special challenges beyond the usual developing country problems. For example, they are trying to counter drug problems, deal with the threat of unexploded ordnance left by the bombing during the war, and cooperate with the US in accounting for the American missing in action (MIA). On all of these issues the three governors could learn from the experience of the US. These three provinces also have a difficult task to improve the living standards of their populace, which includes numerous ethnic minorities.=20 These provinces whih are among the poorest in the country can benefit greatly from increased trade with the US. By coincidence, the visit of the governors took place at a time when the US Congress is considering whether or not to grant the Most Favored Nation status to Laos. Some small groups of Lao Hmong now living in the U.S. are lobbying the Congress in opposition to U.S. granting MFN status. In fact, they simply do not understand that MFN will help their relatives in the country to produce goods for U.S. markets, which in turn can raise their living standards substantially. The three provinces are home to many minorities, especially the Hmong. So they know well the needs and desires of the minorities. This was a point, which the governors have addressed at their meetings with Congressmen.
INTERNATIONAL DIRECT DIALING SYSTEM VIA SATELLITE FOR LAOS
An international direct dialing system via satellite has been installed in Ban Nathom, on the outskirts of Vientiane by a Lao-Japanese cooperation project as a gift from the Japanese government. The system will allow a direct link with a number of countries through a Japanese telecommunication service called KDD. These countries include Singapore, China and Vietnam. Later, countries such as Germany, Taiwan, Malaysia and Korea will be added to the list of countries with an international direct link with Laos. The construction work was divided into two phases. The first phase involved improving the capacity of the central international telephone centre. This work, starting in July last year and ending in March, was done by Nisho Iwai Co. Some 225 million yen were used for this phase. Of the figure, some 200 million yen were used to purchase equipment. The second phase dealt with installation of cables. The work, starting in October 1995 and lasting 13 months, was carried out by Mitsui. The cost for this phase was 897 million yen, of which 639 million yen were used for equipment.
YOUTH UNION DEALING WITH YOUTH-RELATED PROBLEMS
The Lao People's Revolutionary Youth Union (LPRYU) began actively working with youth in four districts in Vientiane municipality to solve youth problems currently occurring in Lao society. The aim of grassroots building in four districts is to educate youth and solve youth-related problems in Vientiane municipality. The second purpose is to rebuild grass-roots youth organizations in the villages. Their goals in implementing work in the districts include curbing negative setbacks among youth and children in general. The main issues to be tackled are those of teenagers sniffing glue, going to night clubs when they are under 18, stealing valuables and bag snatching in the streets. Even more worrisome are young girls who are secretly working as prostitutes in bars. There are also young boys who are following Western styles: piercing their ears like girls do and wearing earrings, shaving their heads leaving only a ponytail in back called hang tao. Furthermore, youth are gambling, begging in the streets and crossing the border to Thailand to find work. The problems with youth are happening due to children's lack of education, unemployment and families living in poverty. The children's shortcomings are not only themselves, but are also due to a weakness in many youth organizations at the municipal and village levels. They lack ideological education from other organizations at a time when the social situation in Vientiane is changing rapidly. However the problems occurring here are not as dangerous as those facing other societies and the Youth Union is making a plan to solve these problems step by step. The Union works at the grass-roots level in some twenty villages and four districts. The major youth work is done by consulting and working with the village authorities and village women's union, youth union, and trade union. The Union has organized lectures and talks on the problems youth face and ways to overcome them, particularly AIDS. It conducted several forms of youth canvassing and showed videos on child labor and child prostitution. The lesson learnt from grassroots activities is the need to improve youth organizations at the village level and the need to be aware of problems youth face in the villages because all of these are necessary in solving these greater problems. The grass-roots building will continue working in many districts in Vientiane and other provinces throughout Laos.
A LOOK AT THE RISING CRIMINALITY
Educating youngsters is still believed to reduce criminal problems in Laos, because today there are a lot of problems occurring among the Lao youth, especially teenagers. The only solution now is to educate and teach youngsters about the bad effects of what they have done. The people closest to youth persons are their parents who can teach and understand them more than the others. Other close people are teachers who every day, before teaching the main subjects, should educate their students in good conduct. It is believed that all the problems occurring among young people today have someone behind them, backing them up in their crime. Therefore there should be strict regulations for stopping these backers. Another way to help reduce the problems is to expand vocational schools for young people who are interested in learning and those who do not have the opportunity. There must be public vocational training centers where the youngsters can learn. There are several vocational private school, but the private school are run to make a profit and they do not teach ideological education. The Youth Union should have places or clubs for young people when they want to play sports.
MICRO-FINANCE FOR HOUSEHOLDS IN RURAL AREAS
Thousands of rural people will gain better access to saving and loan services thanks to new UNDP/UNCDF project aiming to bring financial services to the poor. The US$ 7 million project is being funded by the Lao Government and UNDP, UNDCF . Its focus is micro-finance , which means providing small-scale financial services like deposit and credit to hundreds of small rural communities. At present, only one out of every 10 Lao families is involved in any form of borrowing and only one in 100 has success to a deposit account. Recently, the government made development micro-financial services a priority , especially to women as generators of additional family income. In Sayaboury and Oudomsay provinces , funds will be loaned in cycles to a village bank which is essentially a group of borrowers and savers. At first the village bank will be supported by the project management . Step-by-step they will move towards a credit union-type of management and will be run by the villagers themselves. Training villagers to do this is an essential part of the project and the Lao Women's Union will be the main partner in the process. Emphasis will be put on savings and market interest rates. The micro-finance project will also support small business people who need deposit and credit services, and potential entrepreneurs who need seed capital, financial advice and services. The banks will charge market interest rates to insure they cover their costs, a problem with some revolving funds currently in operation. On the national level, the government will set up a Micro-finance Task Force within the Ministry of Financial. It will become the focal point for the development of micro-finance in the Lao PDR and will advise the Government on coordination of foreign assistance, policy, regulation, and sensitization in the field of micro-finance. In Vientiane, project staff will also work with banks and credit unions to create a favourable policy and legal environment for the development of micro-finance. The micro-finance creates a bridge between the formal banking system and the rural poor as one of the major pillars for rural development and reduction of poverty.
INAUGURATION OF FLOOD PROTECTION DIKE
On the occasion of Europe Day in the Lao PDR celebrated in last June, the delegation of the European Commission arrived in Laos to inspect their funded projects. To mark this historical day, the delegation handed over several projects for the Lao government's use and maintenance. The urgent phase of the Vientiane Plain Flood Protection project was one of those projects presented. The project which began in April 1994 includes a 46.5 kilometre dike running from the north of Vientiane in Kaolieo, Nasaithong district to the south in Dongphosy, Hadsaifong district and a 420-metre river bank protection. The project cost about ECU 2.51 million granted by the European Commission (EC). The objective of the urgent phase of the Vientiane Plain Flood protection was to provide increased flood protection from flooding caused by the Mekong river urgently required in Vientiane and the Vientiane plains. The EC was involved in this project because it wants to help solve problems related to flooding in Lao PDR which have now become a major problem for the development of the Lao economy. Floods disrupt social systems, cause emergencies and at the same time consume valuable resources in responding to them. They can cause death, injury, destroy crops, houses and personal belongs to both urban and rural communities. The works reconnect the rehabilitation and improvement of the existing flood protection dikes, the construction of new dike and associated water control structures over the distance of 46.5 km. The dike divided into three sections was designed for all types of vehicle. Another part of the same project , the river bank protection, was also considered important because the erosion process is increased by the seepage of water through the river bank washing out silts, sands and gravel in the lower bank strata. The Vientiane plain where the dike is located, is one of the lowest parts of the country and in recent times this area has flooded. This area has good soils for agricultural production and is double cropped with irrigation water provided from small pump stations. The principle crops on the plain are rice, tobacco, sugarcane and vegetables. There is an Agricultural Research and Extension Station located at Haddokkeo village adjacent to the flood protection dike which was previously supported by the European Community. The Vientiane plain is an area of alluvial deposits. Therefore, the Mekong River is unstable and tends to meander between its banks. Consequently, river bank erosion is a continual problem for Lao authorities.
NEW FISH SPECIES FOUND IN LAOS
Nam Theun Electricity Consortium (NTEC), the developers of the Nam Theun 2 Hydroelectric Project (NT2) in central Laos have completed a second major survey of fish and aquatic fauna. It was conducted by internationally renowned expert on fish and aquatic biodiversity in Asia, Dr Maurice Kottelat. This second survey was a continuation of the one conducted in March 1996 to determine impacts of the NT2 Project on fish and aquatic fauna. One hundred and sixty five (165) fish species were observed, 46 of which were not previously recorded in the scientific literature as existing in Lao waters. One hundred and thirty one (131) fish species were observed in the Xe Bang Fai basin, and 60 were observed in the Nam Theun basin. Prior to the second survey, five of those species found in the Xe Bang Fai basin and eleven of those species found in the Nam Theun basin were believed to live only in those basins. These two surveys conducted for NTEC by Dr Kottelat substantially increased the information on fish species found in the NT2 Project area and in adjoining areas. Preliminary findings from this latest survey, conducted in the Xe Bang Hiang, Nam Ou, and the Nam Tha river basins showed that several species previously believed to only live in the Nam Theun and Xe Bang Fai river basins have now been found in other Lao river systems. At least 240 fish species were observed in this study, including 50 new species-not previously known to inhabit Lao waters. The addition of these 50 new species brings the total known fish species in Laos to 340. About 100 of these species were discovered during surveys conducted with NTEC support. In 1975, it was believed that only 203 species existed in Lao waters. The specimens will be added to the archives located at the Agriculture and Forestry Ministry and will be used for future research and environmental monitoring.
TREES PLANTED ON NATIONAL ARBOR
According to the reports from the Forestry Department, about 16,000 ha of trees would be planted throughout the country this year for the National Arbor Day, June 1. The report said most of the trees to be planted were for trading and consuming and they would be planted by State and private companies and former swidden farmers. To facilitate the plan for forest plantation and reforestation, the Forestry Department has ordered each province to implement the project suitably to the conditions of their locality. The statistics said that more than 30,400 kg of seeds have been collected, over 20.7 million saplings were for planting, and about 12,260 ha of land have been prepared. This year's planting surpassed planting done in any previous years. Since 1975, the areas for planting trees have increased year by year. For example, in the ten year period before 1985 only 2,425 ha were grown in the whole country. It is only since 1990 that the tree-growing areas have been increased, beginning from 716 ha in 1990 to 1,359 ha one year later, and to 1 1,850 ha in 1996. Planting trees has three main objectives such as growing for re-sale, for maintaining water resources, and for enlarging permanent forest areas. Planting will be focused on all parts of the country depending on what kinds of trees are suitable for each locality.
NORTHERN ROAD 13 PROJECT INAUGURATED
The Luang Prabang-Pakmong section of Road No 13 North was inaugurated and put into public service after four years of reconstruction. This road section is considered as part of the backbone of the country. It stretches 112 km from Luang Prabang to Pakmong. The road is now in very good condition. Now it takes less than two hours from Luang Prabang city to Pakmong. Before reconstruction, it took about one day to drive the same distance. The completion of the Luang Prabang-Pakmong road reconstruction will enhance development and improve the living standards of people in the areas along this road. It links Luang Prabang with Xieng Khouang, and Oudomxay where there is access to China. This US$27.8 million road funded by ADB was said to be designed suitably for the mountainous locality. Almost all along the roadside, there are canal and embankments for draining water. Constructed by the Korean construction company, Samwhan Corporation, and inspected by the Australian consulting company KM (SWECO) International, this road is said to be up to international construction standards with a two layer pavement and be expected to have a 15-20 year lifetime if repairs and maintenance are done regularly. The reconstruction was begun in April 1993 and completed 18 days ahead of schedule. This 112 km-long stretch includes 12 small concrete two-lane (6m wide) bridges and three big bridges. The road itself is seven meters wide.
JAPAN GRANTS FOR THE BRIDGE ACROSS MEKONG IN CHAMPASSAK
The Japanese government has agreed to grant aid to the Lao Government for the construction of a bridge across the Mekong River in Pakse, Champassak province. The grant aid amounted to 5,446,000,000 yen (about US $50 million) and will be used to build an additional Mekong bridge, which will be the third after the Savannakhet project of the Mekong River bridge. According to its design, the Pakse bridge is 1,380m long, and 11 m wide, and has access roads to each side of the bridge. Construction will be carried out in four stages. The first stage will be from now to March 1998, the second from April 1998 to March l999, the third from April 1999 to March 2000, and the last stage from April 2000 to March 2001. Earlier in August 1996, the government of Japan provided about US $1 million in grant aid to the government of Laos for funding work on the bridge survey and design.
FOREIGN MINISTER GOES ON PILGRIMAGE TO SISONGHAK STUPA
At the invitation of his Thai counterpart Prachub Sayasarn, Foreign Minister Somsavad Lensavath has led a delegation of the Lao-Thai Friendship Association to the traditional celebration of That Sisonghak Stupa in Thailand's Loei province. The delegation was accompanied by artists from the Central Arts Troupe who gave performances as part of the That Sisonghak celebrations. That Sisonghak was built in 2103 BE or 1550 AD by Vientiane's King Saysethathirath and the Thai King of Ayuddhaya. It was built between Meuang Dane Sai and Loei districts, the border between the two nations at that time. It was meant to be a symbol of kinship between the two people. The inscription on the stone slab reads, in part, as follows: "The generations to come must not violate and dispossess territory of the other . They must not be greedy or act in a deceitful manner in their interaction until the end of the sun and moon."
NAM THEUN 2 VS THE ENVIRONMENT
International non-government organisations (NGOs) have talked a lot about the forests on the Nakai plateau recently. If these forests are destroyed, they say, it will mean the loss of one of the most resource- rich forests in Asia. Some of these natural resources include the odorous tree "Ketsna"[Agalloch] and some of the rarest wildlife in the world, like the "saola"[antilope or Giant Muntjak]. The saola has a head similar to a cow's, antlers like a deer and barks like a dog. One was recently discovered on the Nakai plateau and is typical of the exotic wildlife which exists only in the Lao-Vietnamese border area, in Nge-Anh Hatinh and Quang Binh, two Vietnamese provinces, and Laos' Khammouane and Borikhamsay provinces The discovery of these animals over the past three years has aroused the interest of scientists from all over the world, and many have come Laos to do research . NGOs such as International River Network (IRN), World Wild Fund for Nature (WWF) Green Peace, and Towards Ecological Recovery (TERRA) have, opposed the Nam Theun Electricity Consortium (NTEC) proposal to build a dam on Nakai plateau because it involves flooding plateau. They have submitted three reasons for their stand. These are impacts on the environment, society and the economy. Nature preservation groups are anxious about the protection of rare wildlife. However, what many people don't realize is that many valuable species of animals have already been hunted almost to extinction because of uncontrolled hunting. Traditional slash and burn farming has also taken its toll on the densely forested Nakai plateau. This type of cultivation and lifestyle means destroying the habitat and killing the wildlife to the point that nothing is left. But local people faced with starvation, have had no choice and the Lao government, with a tiny budget, has lacked resources to rectify the situation. The answer of course is money. But Laos is one of the most under-developed countries in the world, with an annual per capita income of' US$ 350. It lacks the budget to solve problems in a setting free of "development." Only through disposal of the government increase and the most viable development option for the Nakai plateau area, and indeed Laos, with all its mountains and rivers but not a lot of anything else, is hydro- power dams. The bulk of trees being cut down in the area are not the victims of forestry operations by the NTEC project but of slash and burn cultivation by local people, carried out since the turn of the century. The controlled cutting is not being carried out in a preservation area set aside for rare species of wildlife, only in the area to house the hydropower plant. NTEC has provided funds to protect animals that otherwise, without money to support their protection, would be hunted to extinction. An experience was learnt from Nam Ngum Dam, where the trees were not cut before the dam was launched 25 years later, the trees are contaminating the water and the government had to spend a lot of money solving this problem. Therefore, the cutting in the Nakai area is being carried out before the launch of the project. NTEC will provide about US$ 1 million for forestry restoration and forest limit hunting to set seasons. The United Nations Development Fund (UNDP) and World Wild Fund for Nature (WWF) have proclaimed that Laos and Vietnam have agreed to joint programme of wildlife preservation along the border. This agreement was signed at Troung-Sun in Vietnam, in last January, with the support of the United Nations Organisation [UNO]. Vietnam submitted an application to extend the land used for a reservation area containing rare wildlife to up to 2,000 km sq. The area on the Lao side, in Borikhamsay province, covers 3500 km sq.
NAM THEUN- HINBOUN DAM CIVIL WORKS OVER 80% COMPLETED
Civil works on the construction of Nam Theun-Hinboun hydropower Station, now in its final stage, are expected to be completed by the end of this year, probably 4 months ahead of time. Theun-Hinboun is a 2lOMW hydropower project which necessitated US $280 million. The Lao government holds 60 per cent of the shares while the Thai MDX Co. and the Nordic Hydropower Co. of Norway and Sweden hold 20 per cent each. The construction was started in 1994 in the provinces of Khammouane and Bolikhamsay. It is a 30-years joint venture between Lao Government and foreign investors. The electricity produced by Theun-Hinboun hydropower station is to be exported to Thailand and partly serve the local population.
The Government of Lao PDR has approved the National Authority for Tourism (NAT) proposal to launch the " Visit Laos Year 1999 " on the day of the That Luang festival, June 30, 1999. The government has also urged the National Authority of Tourism to speed up the co-operation and coordination processes with other sectors concerned, for the preparation, management and implementation of the occasion. The government urged immediate focus to be made in preparation for the "Visit Laos" year with relevant preparations: construction and maintenance of roads, telecommunications, electricity and water supply, airports, hotels, restaurants, tourist sites, food stuff, souvenirs, advertisements to alert nationals and attract foreign tourists. Tourist guides and service personnel of hotels, restaurants, airport and so on should also be provided with more training and exposure, to upgrade their knowledge and all-round efficiency.
On the International Day Against Drug Abuse and illicit Trafficking, June 26, the provincial administrations held burning ceremonies to destroy illegal drugs seized over the last year. In the north,, Oudomsay province destroyed 13.6 kg of opium on the day. The opium was seized in Baeng district and the provincial capital last year. Xiengkhouang province burned 68 kg of opium, and Luang Namtha burned one kilo of heroin, six kilos of opium, 1.9 kg of chemical substances for heroin production, 10,531 sachets of pain killers, and expired medicines. In central Laos the Khammouane administration burned heroin, 84 kg of marijuana, and 300 amphetamine pills. In Savannakhet, the Drug Control and Supervision Unit burned 3.5 kg of heroin, 1,200 kg of dried marijuana, 385 kg of compacted marijuana and some drug making chemicals. These drugs were confiscated within this central province and neighbouring provinces. Held at the provincial stadium, the burning was witnessed by administrations of the provincial capital, and representatives of the Vietnamese and Thai general consulates in Savannakhet.
MORE AUSTRALIAN GRANTS TO LAOS
Australian Foreign Minister Alexander Downer announced during his visit to Laos on July 3-4. more grants to support development in Laos. Australia will allocate $500,000 for the removal of unexploded ordinance (UXO) in Laos which still affects more than half the country's total area each year killing and injuring hundreds of people, many of whom are children. A $12 million Australian initiative has been operating since May last year to rid the lower Mekong basin from landmines and UXO. Of this amount, $900,000 has been allocated to Laos for UXO. The new grant has made Australia one of the largest donors to UXO clearance in Laos It also was announced that additional funds of $250,000 would be granted to support Laos when it becomes a member of the Association of South-east Asian Nations (ASEAN). The latest Australian support will focus on helping Laos introduce economic reforms and Manage an English language training strategy for the government officials.
GERMAN GOVERNMENT AIDS LAO PALM LEAF PROJECT
The government of the Federal Republic of Germany (FRG) has provided second installments of funds to the Lao Palm Leaf Manuscript Protection Project for the 1996-1997 fiscal year. The fund amounting to US$ 85,798 is for the implementation of the project in the northern provinces of Luang Phabang, Oudomsay, Phongsaly, Bokeo, Luang Namtha. In the first half of this year, the German government provided over US$ 29,000 for the operation of the project.
FM Radio station was opened at the Lao National Radio in last June. The FM radio with a capacity of 20kw was set up with he Japanese government's Debt Relief Fund amounting to 150 million Yen. The aim of this project is to improve and upgrade the technology and quality of the Lao Radio. People who live in remote areas can listen to news and other programmes on Lao Radio. The FM radio, the first to be operated in Laos began its transmission on a trial basis last May. The transmission reaches Vientiane municipality, the districts of Phonhong, Vang Vieng and Paksane.
GOLD MEDALS FOR YOUNG LAO TAEKWONDO
Nine junior Taekwondo athletes, aged from nine to sixteen, sent to compete in Thailand won nine medals, including six gold ones. Recently, the Lao Taekwondo Federation (LTF) sent nine junior Taekwondo athletes to participate in a competitive event held in Cholboury province, Thailand. There were athletes competing from 30 Taekwondo clubs (29 from Thailand and one from Laos). The competition was divided into 32 weight categories. All nine athletes, four boys and five girls, participating in nine categories brought a medal back home. Two of them, one boy and one girl, were chosen as excellent athletes and a coach from Laos was also chosen as an excellent coach.
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