July-August 1998

Prime Minister Sisavath Keobounphanh and his delegation paid an official visit to Malaysia and Singapore from August 10 to 14. The visit was in respond to the invitations of the Prime Ministers of Malaysia and Singapore, Dr. Mahathir Mohamad and Mr. Goh Chok Tong, respectively. Members of the delegation include Vice Prime Minister and Foreign Minister Somsavat Lengsavad, and Minister of Commerce and Tourism Phoumy Thiphavone.

During the visit to Malaysia, the two leaders signed two agreements on bilateral trade and tourism cooperation between Laos and Malaysia. Under the agreement, government of both countries agreed to provide necessary assistance and encourage the private enterprises to explore the opportunities in trade. The trade agreement would also facilitate the development of trade relations between the two countries through granting each other Most Favored Nations Treatment in matters relating to custom tariffs, charges and customs procedures in connection with importation and exportation of products.

ONE YEAR ANNIVERSARY IN ASEAN
Laos entered ASEAN on July 23 1997, and since that time the country has cooperated in many areas with other group members and ASEAN's official dialogue partners. During the past year Laos has actively participated in many areas, notably: economic policy, technical cooperation and external relations.

Immediately after Laos was formally admitted into ASEAN at meetings in Malaysia, the Lao foreign minister joined the proceedings at the 30th ASEAN Ministerial Meetings (AMM). At that time, Lao Foreign Minister Somsavat Lengsavad met with the foreign ministers of ASEAN member states, its official dialogue partner countries, representatives of the European Community and the United Nations Development Programme (UNDP).

Four months after it was admitted as a full member on December 15, 1997 the head of the Government of the Lao PDR Khamtay Siphandone, joined the 30th ASEAN Informal Summit to meet with other ASEAN heads of state, as well as with leaders of Japan, China and Korea.

Lao delegations, ranging from technical to ministerial level, have also actively participated in meetings concerned with ASEAN affairs, especially as a part of the ASEAN Regional Forum, which focuses on the peace and stability of the Asia-Pacific region.

As a signatory of the treaty authorising Southeast Asia as a nuclear-free zone, the Lao PDR has been involved in efforts to keep the region free from such weapons.

In the field of economics Laos has agreed to previously signed agreements, contracts and sub-contracts of ASEAN.

Agreements for economic cooperation involve: trade, industry, finance, banking, investment, food, agriculture, forestry, mining, power, transportation, telecommunications, services, intellectual copyright, and private and international economic cooperation. Being a member of ASEAN also means Laos aims to be a part of the ASEAN Free Trade Area (AFTA).

In its preparations to become a full member of AFTA, the Lao PDR has sent a full list of goods for tariff reduction to the ASEAN Secretariat in Jakarta, Indonesia.

The four lists are: a list of 533 types of goods for tariff reduction, a list of 2820 types of goods for temporary exclusion, a list of 102 types of goods for permanent exclusion and a list of 96 sensitive goods. The first list for 533 products was implemented January 1, 1998. The goal for reduction is a final tariff rate of 0 to 5 per cent by the year 2008.

The Lao PDR has also pledged its cooperation in the areas of science, technology, environment, information, culture, social development, drug control, and civil affairs.

During the past year, Laos and other members discussed and endorsed several action plans and many important programmers in the above areas of cooperation, especially with regard to the environment, social development, culture, information, and science and technology.

In addition, the members have contributed ideas to ASEAN's "Towards 2020 Action Plan on Technical Cooperation" which will be accepted at the Sixth ASEAN Summit to be held in Hanoi at the end of this year.

ASEAN members have continued to recognise the importance of external relations since the first group summit in 1976. Presently, ASEAN has seven dialogue partners, that include: Australia, Canada, the EU, Japan, the Republic of Korea, New Zealand, the United States and the UNDP. ASEAN has also established sectional dialogue relationship with India and a consultative relationship with the People's Republic of China.

Although Laos has been a full member for only a short time, it has been able to participate in many activities.

Because English is the official working language of the group, Laos has also paid serious attention to upgrading the English language ability of its personnel working for ASEAN. Moreover, the Lao government has also established a Lao embassy in Brussels, Belgium, which is the administrative base of the European Community.

Due to its activities in ASEAN affairs, Laos has seen its profile rise on both regional and international stages. From these experiences of the past year, the Lao PDR should be able to learn and move on to higher levels of engagement in ASEAN activities.

LAO, CHINESE MINISTERS OF DEFENCE MEET
Lt. Gen Choummaly Saygnasone, Deputy Prime Minister and Minister of National Defence, met with Chinese State Councilor and Defence Minister Chi Haotian in Kunming, Yunnan province of China.

Chinese Defence Minister pointed out that China and Laos are neighbouring countries with long-standing friendship. Both of them are developing countries and face the same task of promoting economy, thus sharing extensive common ground, to further strengthen the friendship and cooperation between the two countries and their armed forces, the basic interests of the two peoples also play a significant role for peace, stability and development in the region.

The Lao Deputy Prime Minister was also briefed on China's reform and opening-up and its achievements in the building of armed forces. He thanked the Chinese people and army for their support to the Lao people and spoke highly of the friendship between the two countries and armies. It is a basic strategy of Laos to continue promoting the long-term friendship and cooperation between the two countries and their armed forces.

US DEPUTY ASSISTANT SECRETARY OF DEFENCE VISITS LAOS
US Deputy Assistant Secretary of Defense Robert L. Jones visited the Lao People's Democratic Republic.

In this capacity as Deputy Assistant Secretary of Defense responsible for Prisoner of War/ Missing Personnel Affairs, Mr Jones visited Laos, Vietnam and Cambodia to confer with the Joint Task Force - Full Accounting Detachments Laos and Vietnam, and the US Embassy in Cambodia.

During his trip to the region, Deputy Assistant Secretary Jones also consulted with high ranking officials on the status of joint efforts in the search for Americans missing since the Indochina conflict.

In Laos, Mr Jones met with Deputy Foreign Minister Soubanh Srithirath; and Deputy Minister for National Defense, Lt. Gen. Ai Souliyaseng.

LAO-VIETNAMESE BORDER COMMITTEE MEETING
Technical officials of Laos and Vietnam held their fifth technical meeting on border mapping in Vientiane.

The sides reviewed previous activities specified in the memorandum of the fourth meeting on border mapping between the Laos and the Vietnam, which was signed on August 18, 1997 in Hanoi, Vietnam.

The sides touched up on the bilateral cooperation, achievements and shortcoming, conveniences and difficulties arising over the past one year. The sides agreed to speed up their cooperation activities for the second half of 1998-1999. These activities include the continuation of the aerial photography of the rest of the border, and map drawing.

During the three-day consultation, the sides examined and endorsed the outcome of mapping products.

Their discussion also covered the management and hand-over of products and technical data related to the mapping project of the Lao-Vietnamese border, and planning and making a report on economic and technical analysis, among others.

LAOS' ECONOMY INTEGRATION WITH ASEAN DISCUSSED
A workshop to discuss economic issues related to Laos and the Association of Southeast Asian Nations (ASEAN) was recently organised by the Ministry of Foreign Affairs, Ministry of Commerce and the Asian Development Bank (ADB), in Vientiane.

Discussions at the forum entitled, "Lao PDR: ASEAN Membership and Macro-economic Policy Issues" focused on progress being made in preparations to meet the requirements of the Asian Free Trade Area (AFTA), AFTA-plus, economic issues directly related to ASEAN membership, and policy changes that will allow the Lao PDR to maximise benefits from its membership in ASEAN.

The aim of the workshop is to view the implementation of the first anniversary of Laos' admission into ASEAN. The goal is to consolidate closer economic integration among the ASEAN member countries by focusing on development and to address the existing economic development gaps between them.

Given the importance of these goals for AFTA, leaders of ASEAN appear determined to step-up ASEAN cooperation even under the current economic difficulties affecting the region.

Laos as a new member of ASEAN will make every effort to foster closer economic integration with other member countries.

Participants also reviewed some of the impacts of the Asian crisis, namely: foreign investment changes and foreign exchange fluctuations.

According to a conference report the most notable domestic impact of the currency movements has been an increase in the price of imports within the Lao market. This is a result of the fact that the kip has depreciated considerably against the bath and US dollars. The report concluded that because of the specialised nature of the Lao PDR' s exports (eg. the heavy reliance on relatively demand inelastic electricity exports), the effect on Lao exports is, likely to be less significant than the impact on imports.

The conference also discussed the multiple currency phenomenon, or the domestic use of foreign currencies along with the kip.

It was mentioned that the multiple use of foreign currencies in Laos was not the problem, but is rather a symptom of larger macro economic ailments. The real problem facing the country is a lack of confidence in the kip. This lack of trust in the national currency emanates, from an underdeveloped monetary system, economic uncertainty, and weak legal and institutional structures.

The long term solution to the problem does not lie with imposing a forced use of the kip. Addressing the core problems directly is the way for the multiple currency phenomenon to "cease to be constraint.”

It was also mentioned that Laos receives a significant share of its direct foreign investment from Thailand, the country in which the financial crisis began one year ago. New inflows of Foreign Direct Investment (FDI) from Thailand and other countries of the region are thus most likely to slow appreciably or even stop for a period of at least one or two years.

ROAD No. 7 CONSTRUCTION TO BEGIN
The first contract for constructing the roads from Phou Khoun to Ban Muang Souy Xiengkhouang province was signed between the Ministry of Communication, Transport, Post and Construction (CTPC) and the Chinese Jian Jin Coop Company.

The Jian Jin Coop company will construct road No 7 with the total length of the road from Phou Khoun to Ban Muang Souy extending 87 km. Two new bridges, 78m in length will also be constructed. The total cost of the road is US$ 125 million. The construction will commence in August 1998 and expected completion will be in February 2002.

The Lao Government has loan approval from the Asian Development Bank (ADB) with low interest rates on US$ 46 millions US$ 4 million from the Organization of Petroleum Exporting Countries (OPEC) and a Government fund of about US$ l4 million for the construction of roads No 7 ( 267km) and No 1 (31km). As well as the upgrade and widening of the roads and construction of new permanent bridges in Xiengkhouang province.

The total length of the roads are 298 km. The construction of roads No 7 and No l are divided into four packages:

Contract No l: construction of road No 7( 87km), China TianJin Coop successfully bided US$ 12,528,600.

Contract No 2: road no 7 (49 km) and contract No 4: road No 1 (31 km), China Road and Bridge Coop successfully bided US$ 9,243,584.

Contract No 3: road No 7 (131km), Civil and Engineering Incorporation- 18 from Vietnam successfully bided US$ 12,657,182.
The consulting service during construction is SNC-LAVALIN Inc. from Canada.

NAM PA BRIDGE WAS COMPLETED
A bridge across the Nam pa River at Ban Thakham, Phonsay district, Luang Prabang province, was inaugurated in July, following its completion. The cost of the construction of the reinforced concrete bridge is US$ 153,958.

The four-pile bridge is 5.30 m wide, 36 m long, and six metres high, with a fifty centimeter-wide pedestrian sidewalk on each side. The construction commenced on November 11, 1997.

This is one of the four bridges to be built with the financial assistance of the European Union's Micro Project Luang Prabang, phase two, within its operation period of 1998-2001.

The other three bridges are the Had Khang bridge in Pak Ou district, which is nearly complete, and the Sob Chek and Nam Phae bridges, which are to be built in Pak Seng district. The two latter are in the bidding process.

FOREIGN INVESTMENT IN SAVANNAKHET
Savannakhet enjoys more foreign investment projects. To date, the province has registered a total investment of US$ 52 million by 19 foreign companies. Among the foreign companies six were from Thailand, five from China and two from France. The rest are from Vietnam, Australia, Singapore Finland, the Republic of Korea, and Malaysia.

The investment is mostly in the forms of joint venture with the government and local private companies. To attract more foreign investment, Savannakhet authorities will work harder on disseminating laws on foreign investment and regulations on procedures of application for investment in the Lao PDR.

LAO-THAI TRADE TALKS
Following the talks with leading Thai business officials in Bangkok, the Lao government and business leaders are optimistic that some of their proposals tabled at the talks will eventually boost trade between the two countries.

The creation of an agriculture investment zone along the Mekong River, the use of local currencies (baht and kip) to facilitate trade transactions, and increased investment in Laos (especially in the field of agriculture) were some of the main topics discussed.

Lao side proposed that Thailand sign an agreement on transportation, which would lead to cheaper transport prices for Lao exporters shipping their goods in transit through Thailand.

Increasing the availability of shipping service companies to Lao exporters, and allowing the use of Lao vehicles to transport goods in Thailand, and vice versa, was thought to offer benefits to both sides.

Lao side also proposed to the Thai Commerce Ministry that its businessmen increase their investments in Laos, particularly by setting up an agriculture zone along the Mekong River. Specifically, Lao side proposed that Thai firms open agriculture processing factories in Laos or Thailand to process Lao food harvests.

Attracting foreign investors is a special priority of the government. Laos is specifically targeting investment in the agriculture field by offering low rents on land and waiving many of the standard taxes.

To mitigate some of the ill-effects of the region's economic downturn, the meetings also addressed the issue of trade payments and it was proposed that local currencies be used more to cut down on dependence on the US dollar for trade transactions.

Last year figure showed that Thailand was the biggest foreign investor in Laos, with 240 projects worth US$ 2.599 billion. This made up 33.4 per cent of the 719 projects worth US$ 5.603 billion approved by Laos' Foreign Investment Management: Committee (FIMC).

The energy sector accounted for 65.9 per cent of the total foreign investment, followed by hotels and tourism at 8.87 per cent and telecommunications and transport at 8.24 per cent.

Last year, Thailand's exports of goods to Laos were worth US$ 382.4 million, up by 4.9 per cent from 1996, while imports from Laos fell by 19.3 percent to US$ 55.1 million. Thailand recorded a trade surplus of US$ 327.3 million with Laos last year.

Major Thai exports included motorcycles and their parts, electric heaters, fabric, rice, rubber, ceramics, iron products and steel. Its major imports from Laos were processed wood, timber, metal and coal.

The Lao government is actively promoting the production of domestic products that will substitute for some of these imports. Some industries being encouraged to do so are cement, steel and plastics. The meetings also agreed to form a 30-member joint committee to try to resolve trade barriers. This committee will meet every two months.

LAO AND DANISH RED CROSSES EXPAND COOPERATION
In Vientiane, letter of Intent was signed between the Lao Red Cross (LRC) and the Danish Red Cross . The overall aim of the agreement was to strengthen the bilateral cooperation between the two national societies and look further into possibilities to support LRC in the implementation of a Primary Health Care (PHC) programme in Houaphan, Xiengkhouang and Phongsaly provinces following a capacity building strategy on all levels.

Consequently, a feasibility study/ programme formulation was initiated to:
- assess the basic needs of the local population, especially the most vulnerable groups in the three provinces and current PHC services to meet these needs.
- outline strategies to increase the capacity of PHC services to meet these basic
health needs through increasing quality and accessibility of PHC, especially for the most vulnerable groups.
- assess the role and the strategy of LRC in the health sector and the capacity/potential of LRC HQ/Local to be actively involved in carrying out these strategies.

The feasibility study/programme formulation process started in January 1998, conducting a survey in Houaphan and Xiengkhouang in the two selected districts Houamuang and Nonghed, visiting and interviewing a substantial number of village officials and inhabitants concerning their major health problems and their socioeconomic status/difficulties. Additionally, meeting and discussions were held on district and provincial level with relevant departments, Lao Red Cross and other agencies working in the health sector. As one element in the programme formulation, a capacity assessment of Lao Red Cross was conducted to analyze the strength and weaknesses in the organisation towards the implementation of the further PHC Programme.

The approach used in the development of the programme framework focuses on the participation of local communities, institutions and individuals in all stages through intensive discussion study trips and exchange. This approach has enabled staff, of the Lao Red Cross and other involved parties to be actively involved in the development of the Programme.

The programme framework was intensively discussed during feedback meetings in Houapmuang and Xiengkhuang/ Nonghed with representatives from the involved provinces/ districts, Ministry of Health, Ministry of Education, Lao Red Cross, the International Federation of Red Cross and Red Crescent Societies and the other Red Cross Societies operating in Laos, during a Programme Planning Workshop held in Vientiane. This participatory approach will be extended to the implementation phase, where the detailed content of activities will be defined by and with the individual target communities using participatory tools to identify problems, opportunities, priorities and strategies to address health problems and community development issues.

Institutional constraints were identified during the feasibility study/programme planning process, towards the implementation of the programme. A strong capacity building component was therefore developed and incorporated in the PHC Programme as part of the programme approach. The International Federation of Red Cross and Red Crescent Societies will play the coordinating role among the Participating National Societies working in Laos, to develop a comprehensive approach toward the Institutional Development of Lao Red Cross based on the further formulated Development Plan for Lao Red Cross. A Memorandum of Understanding between the Lao Red Cross and the Danish Red Cross marking the official start of the programme cooperation between the two Red Cross National Societies was signed in Vientiane .

LAO- CANADIAN FOUNDATION ASSESSES 3 YEARS ACTIVITY
A meeting of the Lao-Canadian Foundation for Education and Public Health (LCFEH) was held in Vientiane, at the Lao Front for National Construction (LFNC) office to wrap up and review its previous activities.

The foundation has provided aid, valued at US$ 336,250 to Laos since 1993. In 1993, the foundation provided 100 kg of medicine for the Provincial Hospital of Vientiane and the Phouvong District Hospital in Attopeu province; and 40 kg of medicine, valued at US$ 30,000 for the Champhone District Hospital, and the Provincial hospital of Savannakhet. In addition, the provision also included medical equipment worth US$ 250,000.

In 1994, the foundation organised a performance by foreign artists to raise fund to help the Provincial Health Service of Savannakhet. The performance earned over two million kip for the Service.

The aid to Savannakhet province included the construction of three drilled wells at a total cost of 450,000 kip, the presentation of medicines and medical equipment worth US$ 10,000 to the hospitals in the districts of Champhone, Sonboury, and Outhoumphone, and 1,400 medical books worth US$ 2,800.

In 1995, the foundation presented medicines worth US$ 5,000 to the district hospitals of Sepone and Adsaphangthong, and the Medical Rehabilitation Centre in Savannakhet province. In 1996, the foundation presented medicines worth US$ 5,000 to the Province of Champassak.

In 1997, the foundation's aid in the form of medicines worth US$ 15,000, was given to the northern province of Luang Namtha and the Special Zone of Saysomboun .

The foundation provided a US$ 300 fellowship for anaesthesia training at Mahosot hospital for a medical staff from the Luang Prabang hospital.

This year, the LCFEH has just presented medicines worth US$ 15,000 to the LFNC for further distribution to the provinces of Phongsaly, Sayaboury and Oudomsay.

LAO-EU COOPERATION BEARS FRUIT
The relations between the Lao PDR and the European Union (EU) reached a new stage following the first ever high-level European Community-Lao PDR Joint Committee Meeting held in June, in Vientiane.

This Delegation of the European Commission to Laos follows on the heels of guidelines set by a Cooperation agreement signed and ratified by the European Community and the Lao PDR in April 1997, which set to map out the future of bilateral cooperation in a wide range of fields.

The EU-Lao cooperation was confirmation of a new era in relations. It reflects a shared interest in a healthy political relationship, as well as building lasting trade links and maintaining a high degree of development cooperation.

The Lao delegation highlighted the major challenges facing the country in order to develop an equitable-socioeconomic programme which the Government plans to implement. The Lao government underlined the importance of strengthening relationships between the Lao PDR and the EU. It welcomed the assistance which has been provided by the EU and further stressed the need to enhance this assistance in order to achieve the goals set out in the Lao PDR report on socioeconomic development and investment.

Since diplomatic relations were established in 1986, co-operation between the EU and the Lao PDR has increased dramatically, extending to sectors as diverse as rural development, health, reintegration of refugees, the urban environment, and forestry.

Laos and the EU have cooperated together in 16 projects worth US$ 122.8 million in grant aid from the EU for which the Lao government has contributed US$ 12.8million.

Eight of the 16 projects have been completed, they include: the first phase of the Nam Ngum pump irrigation system, flood protection for Kaoliao village on the Mar Hiao river, Thakek district water supply system, renovation of That Luang lake, a carpentry training course at Pakpasack school and refugee return programmes spread out around the country.
Eight projects currently in operation are: the small scale rural development in Luang Namtha province, the second phase of the reintegration of refugees, unexploded ordnance in Saravane and Sekong provinces, malaria care and prevention of sexually transmitted diseases, Phongsali provincial forest conservation, and rural development and livestock services and extension activities all over the country.

Presently the EU is considering helping Laos' activities within ASEAN and a banking system reformation project to include the Bank of Lao PDR. Laos has also requested EU support for the Nam Ngum pump irrigation project's second phase and a carpenter training course project at Pakpasack school.

Since the introduction of the programme in 1980 a total of 23,891 Lao refugees have returned from Thailand alone.

During their stay in Lao PDR, the EU delegation visited an EU-funded reintegration of refugees program and the inauguration of a new school at Hadsayfong district. Vientiane municipality has played a significant part in the repatriation program carried out in the Lao PDR, receiving more than 3,500 individual returnees.

The EU-Funded Assistance to Returnees (FAR) programme has provided funds for the renovation of the existing school building and the addition of a new building as well as stationary, books and equipment. The new facilities will benefit 294 families of Ban Thinphia and surrounding villages, including those returnees.

ICAO TEAM WORK WITH UNDP TO ASSESS LAOS AIR SAFETY
A team of experts from the International Civil Aviation Organisation (ICAO) are in the Lao PDR to meet with the government and discuss issues of safety in the civil aviation industry.

The three officials from ICAO arrived in Laos at the invitation of the United Nations Development Programme (UNDP), which is in the process of assisting the Government develop aviation in Laos. UNDP has committed US$ 200,000 to assist the Government in working towards meeting international air travel standards. This follows a US$ 500,000 capacity building project also funded by UNDP between 1995 and 1997. The team will conduct a short assessment of Lao Aviation and review the role of the Department of Civil Aviation and safety oversights within the country.

The object of the mission is to get as much information as possible to formulate plans to improve air travel in Laos. The team will meet with high ranking officials of the concerned authorities. Following these discussions, the ICAO officials will observe the technical procedures of a Lao Aviation flight to Luang Prabang and Chiang Mai.

ICAO govern aviation regulations all over the world and have already assessed safety oversight programmes in fifty-nine countries. Their visit to Laos is the first step in what is hoped will lead to improved standards in air safety. The donor and international communities have expressed concerns over the Lao air industry's capacity to deal with the increased air traffic expected in Visit Laos Years 1999-2000.

JAPAN PLEDGES SENIOR VOLUNTEERS TO LAOS
The Government of Japan, the biggest official aid donor to Laos, will increase its commitment to the development of human resources in Laos by sending senior volunteers to Laos to augment its existing assistance programmes.

This pledge was made at the signing of a Record of Discussion to begin sending Japanese senior volunteers to Laos. The document was signed in Vientiane between the head of the office of the Japanese International Cooperation Agency (JICA), and the General Director of Department of Foreign Economic Cooperation.

Immediately after the signing, representatives of ministries talked to JICA representatives to explain the needs of their respective ministries. More detailed needs will be passed along to JICA after the ministries' representatives discuss matters with their own departments and from there-arrival in Laos will depend on the reaction times of the individual ministries.

According to the document at the signing ceremony, the addition of these - senior volunteers will not lead to a reduction of in-country Japan Overseas Cooperation Volunteers (IOCV), nor will the number of Japanese experts in Laos be reduced.

The volunteers to be sent to Laos were said to have abundant experience in specific fields and volunteer spirit. Samples of these attributes were displayed to those at the signing ceremony to show the skills which Japanese volunteers can pass along.

The objective of sending volunteers to Laos is to actively support its development by working to improve its human resource base. All volunteers - work in recipient countries for a one -or- two year period before they return home or move on to a third country. These volunteers possess expertise in the areas of education, culture and sports, and will be assigned to work in both central and local governmental organizations. Upon the request of such governmental organisations, a senior volunteer may work within one or more local governmental bodies, research institutions, medical institutions, Non Government Organasations (NGOs), or event private-sector corporations. A senior volunteer is thus in a good position to access levels of grassroots cooperation within Laos.

JICA selects what it feels are appropriate individuals through a registration system that targets those aged between 40-69 with good health and high levels of expertise and experience.

According to its promotional literature, almost 1,900 people were registered as candidates for the Senior Volunteer Programme and most of them were self employed rather than working with governmental organisations.

The document stated that JICA dispatched experts and Japanese volunteers to developing countries as a part of its technical cooperation programme. Senior volunteers have been dispatched so far to 11 countries; Thailand, Indonesia, Maiaysia, Nepal, Jordan, Honduras, Dominican Republic, Uruguay, Samoa, and Fiji. At present, there are 78 senior volunteers working in these countries. In this fiscal year, 60 senior volunteers are expected to be sent to the listed countries and the number of countries in the program is expected to increase. At the moment, there are 80 Japanese experts and young volunteers working in Laos in administration, engineering, medical and other fields.

GERMANY HELPS TO DEVELOP COMMUNICATIONS
Since 1994, the German government has provided US$ 8.7 million to develop rural telecommunication in the provinces of the Lao PDR. Outdated Morse code and radio equipment has been replaced by a modern digital system. German technology is operating now in 14 provinces and covers areas from the north in Phongsali to south in Attopeu. The development programme was engineered and implemented by the German Consulting Company DETECON (subsidiary of German Telecom) in close cooperation with the Lao Telecom Company (LTC). The German Company Alcatel-SEL is the supplier of the technology.

Direct dishing is now possible in the provinces and districts of the Lao PDR. Even in remote areas people can now easily communicate with their friends and relatives around the world.

Recently another US$ 5.6 million was provided by the German government to continue the Rural Telecommunication Project (Phase 3) in the provinces, and another new Support and Assistance Contract was signed between the German DETECON and the Lao Telecom Company.

By the year 2000, 11 additional districts in the provinces of Oudomsay, Sayaboury, Xiengkhouang and Houaphan will have state-of-the-art telecommunication facilities.

UNDP PROVIDES GRANT FOR DRUG CONTROL PROGRAMME IN LAOS
The United Nations International Drug Control Programme (UNDCP) has provided a grant of US$ 653,500 over two years for drug control capacity building in the Lao PDR.

The project agreement was signed at the Presidential Office by the Chairman of the Lao National Commission for Drug Control and Supervision(LCDC) and Minister to the President's Office, and UNDCP Representative to the Lao PDR.

This project is one of the projects listed in the Lao National Drug Control Master Plan which was adopted by the Government of the Lao PDR in 1994.

The grant will assist in strengthening the capacity of the LCDC, its permanent secretariat, and the provincial drug control commissions in the ten northern provinces. It will support the national opium survey, and a survey of urban drug abuse which will start in 1999. It will also facilitate a revision of the National Drug Control Master Plan.

The project will help to update Lao drug Control legislation in line with the 1988 international convention against illicit traffic in narcotic drugs and psychotropic substances, thus advancing the Lao ratification of this convention. Furthermore, the grant will support training of prosecutors and judges in drug control legal matters.

It is also expected that the cooperation between UNDCP and LCDC made possible through this grant will lead to the development and launching of new national plans for the elimination of opium and for drug demand reduction.

Donations to UNDCP from the governments of Sweden and the USA have made it possible for UNDCP to extend this grant to the Lao PDR.

LAO-AMERICAN OPERATION OF ACCOUNTING FOR AMERICAN MIA
Lao-American technical teams made 19 joint surveys in the provinces of Savannakhet, Saravane, Sekong, and Attopeu, and made an excavation in Sekong province and four others in Savannakhet between May and June. Following the joint operations, the teams have discovered debris of aircraft and personal belongings of pilots. The findings will be sent to the United States for further analysis.

On July 28 another joint investigations began. Operations are planned for six Lao provinces and are scheduled to last 33 days. The joint investigation team plans to investigate up to 26 cases in four provinces, while joint recovery teams will excavate up to eight sites in one province.

The US team consists of 40 specialists with experience in remains recovery operations and will be jointed by Lao officials. The US team was led by US Army LTC Robert Gahagan, Commander of JTF-FA's Detachment 3 in Vientiane. There are 2,087 Americans still unaccounted for in Southeast Asia. Of that total, 446 are unaccounted for in Laos.

The surveys and excavations are in accordance with the fourth joint operations of the 1997-98 annual action plan, and the 60th operation of accounting for Americans missing in action in Laos during the Indochina War. The operations are in implementation of the humanitarian policy of the government of the Lao PDR, and the 1997-98 annual action plan, and in response to the requests of the US government as well as of the families of the Americans missing in action during the war.

LAO STUDENTS GET SCHOLARSHIP TO STUDY IN FRANCE
Eight Lao students left Vientiane for France. The 20-year old students, including two girls, received scholarships from the Francophonie University Agency AUPELF-UREF.
Every year, AUPELF-UREF grants such scholarships to outstanding students attending the Lao-French sections of the faculties of Law and Engineering.

Whilst in France, the students will join six teachers from French language primary schools who are attending summer classes. The French teachers are part of the six bilingual Lao-French classes programme run by AUPELF-UREF.

The aim of this programme is to provide a higher bilingual education to young children, from primary to end of upper secondary school. Six classes, two in Luang Prabang, two in Savannakhet and two in Pakse, started functioning in October 1997.

The program is expected to be developped and extended in the three provinces next September.

Since the setting up of the AUPELF-UREF office in the Lao PDR in 1996, 29 students and 20 teachers have been sent to Francophone (French speaking) countries.

A BUDDHISTS MEETING HALL TO BE BUILT
Lao Buddhist followers will pool their efforts to build Hor Thammasapha, or Religious Meeting Hall. It is a joint project among the Lao government, the Lao Buddhist Fellowship Association, and local and overseas Lao Buddhist followers. The new building, 54 m wide, 74 m long, and 37 m high, will be built at That Luang Neua Temple in replacement of Sala Phanhong, the Thousand-Room Hall, a muti-purposed Lao-styled structure which was demolished in the 1970s.

The multi-purposed hall will serve as the nation's spiritual, art cultural centre. It will be a venue for merit making and a meeting hall of the Lao Buddhist Fellowship Association .

In addition, the Hor Thammasapha will symbolise the civilisation of Buddhism in the new period of Laos as a country of independence, unity and social progress.

The committee in charge of the construction of Hor Thammasapha has asked for public donations for the project.

Individuals are invited to make donations for the project on the ground floor of the Maha Kadi, the building of the Upper Secondary School for Monks, Telephone: (856)21 412-193. Donations can also be transferred to: - Bank of the Lao PDR, at the account number 00.4521003.03; - Setthathirath Bank, at the account number: 00.4521003.87; - Banque Pour le Commerce Exterieur Lao, at the account number:
02.4545000.00002 ( in Thai currency), or 01.4545000.00003 ( in US dollars).

HISTORY FILMS WERE MOVED TO LAOS
Some 1,181 reels of old Lao film were moved to Laos. The films were made by Lao and Vietnamese technicians during the period of the liberation war in Laos. The films have been stored in the Film Archives institute in Vietnam since 1960, under appropriate care and with no storage costs. To send the films back to Laos, the Vietnamese facilitated the process which included full documentation of all the films, specific techniques such as ultrasound to clean the films and proper packaging.

The delivery of the films was supported by the US Government, who supplied the aircraft from the US Air Force to transport the films from Vietnam to Vientiane.

According to a press release from the US Embassy, Approximately 162 reels of these films may contain relevant information on missing Americans. The US Government has been working with the Lao Government since 1994 to assist with the improvement of the Lao film archives.

The return of these films will permit the Lao Government to catalogue and store such valuable objects of Lao cultural heritage and history here in Vientiane.