PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY

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

NEWS BULLETIN

May-June, 1998

President of the Lao People's Democratic Republic (LPDR), H.E. Mr. Khamtay Siphandone, on June 15 handed over credentials to 11 Lao Ambassadors, as listed below, who are leaving Laos soon for the countries to which they have been accredited, to assume their respective posts: H.E.Mr. Hiem Phommachanh, Ambassador to the Kingdom of Thailand; H.E.Mr. Vang Rattanavong, Ambassador to the United States of America; H.E.Mr. Sompheth Khousakoun, Ambassador to Indonesia; H.E.Mr. Phanethong Phommahasay, Ambassador to Germany; H.E. Mr. Kideng Thammavong, Ambassador to India; H.E.Mr. Ly Southavilay, Ambassador to Cambodia; H.E.Mr. Vilayvanh Phomkhe, Ambassador to Vietnam; H.E. Mr. Chanhpheng Sihaphom, Ambassador to Cuba; H.E.Mr. Sompadith Vorasane, Ambassador to the European Union; H.E.Mr. Khamkeng Sayakeo, Ambassador to DPR of Korea; H.E.Mr. Soutsakhone Pathammavong, Ambassador to Australia. The hand over ceremony took place at the President Palace.

H.E. Mr. Khamtay Siphandone, President of the Lao People's Democratic Republic made a State Visit to Brunei Darussalam, in May, at the invitation of His Majesty the Sultan of Brunei Darussalam. The visit manifests the policy of the two countries, now both are members of the Association of Southeast Asian Nations, to strengthen their ties with each other.

The two heads of state held the meeting to discuss the possibilities of promotion of economic and commercial cooperation. After the discussion, some agreements were signed. Among them, the first is an agreement on air transportation between Laos and Brunei, which was signed by the Ministry of Communication and Transport of the two countries. Under the agreement, the two countries are able to open direct flights between Vientiane and Bardar Seri Begawan. The second agreement is an exchange of notes on the exemption of visas for holders of diplomatic and official passports of the two countries.

At the invitation of the Lao President, His Majesty sultan Haji Hassanal Bolkiah of Brunei Darussalam also made a State Visit to Laos, at the end of May. During which, the two sides agreed to set up a Joint Lao-Brunei, Brunei-Lao Commission for cooperation in economic, technical, cultural, educational and sport fields. The Commission is designed to promote bilateral cooperation and to help the respective countries develop.

It is believed that, the exchanged visits of the two heads of state would improve relations and cooperation between the two countries to meet the aspirations of the two peoples and to strengthen the solidarity and cohesion of the Association of Southeast Asian Nations (ASEAN).

A military delegation including American Lt. General Defrancisco visited Laos. The aim of the trip was to discuss with high ranking Lao officials the current status of US-Lao joint efforts in the investigation and recovery of the remains of Americans still missing from the war in Southeast Asia, and US-Lao cooperation in demining efforts in the Lao PDR.

General Defrancisco traveled to Savannakhet, where he visited excavation sites involving joint US-Lao teams recovering the remains of missing Americans. The delegation also met with Minister of National Defense, and Minister of Foreign Affairs of the Lao PDR. This visit to Laos is the latest in a series of high level US visits over the past year that demonstrate the growing relationship between the two countries.

An additional trade agreement was officially reached between Laos and Cambodia in Vientiane, during the visit to Laos by the Minister of Commerce of the Kingdom of Cambodia. The aim of this trade agreement is to extend the most favored nation treatment for tariffs and fees on exports-imports between the two countries. It will also include rules and regulations on importation and exportation and will adhere to the laws of each country as well as international principles.

This agreement follows an earlier one signed in May 1994 which stipulated that the two sides would continue to expand mutual trade and encourage business with each other. The trade agreement is to ensure full support and cooperation between Ministries

of Commerce of the two countries as well as between Lao and Cambodian business and tourism ventures. It is also to prepare storage facilities in Stoeng Treng to facilitate the flow of goods from the southern part of Laos to the northern part of Cambodian provinces.

According to a Lao Ministry of Trade and tourism spokeswoman, during the discussion, the two ministers reviewed the basic regulations to be implemented for both countries businessmen in accordance with international law, taxation and fees on imports and exports. Border trade is to be facilitated as well as surveys for road renovations between the southern part of Laos and the northern part of Cambodia. Laos is expected to import more wood, forestry products and food from Cambodia.

A delegation of the government of the kingdom of Thailand arrived in Vientiane to discuss with Laos energy cooperation projects.

The aim of the visit to Laos was to step up the cooperation in the areas of electricity, trade and investment. Moreover, the visit also sought to monitor the program of electricity cooperation between Thailand and Laos. Under the program, Laos will supply 3,000 megawatts to Thailand according to an agreement signed in 1993 between the two countries. One of the major issues of the discussion was the project of building a 500 kw transmission line from Yunnan, southern China, via the northern Laos to Thailand. It is a sub-regional cooperation project among six countries: Cambodia, the Laos, Myanmar, Thailand, Vietnam, and Yunnan, southern China.

This project was initiated in 1994 by the Asian Development Bank (ADB) and a report on economic analysis of the project is being drafted. The Thai delegation also put forward a new idea on building an oil pipeline from Thailand via Laos to Yunnan.

People in the northern province of Oudomsay now enjoy electricity supply as a hydropower plant on Nam Ko river was inaugurated last month. The construction of the hydropower plant was started at the end of 1994, by the National Equipment Import-Export of China, the contractor. The government of the Lao PDR borrowed funds from the government of the People's Republic of China to build this power plant at a total cost of 59 million yuan. The loan, granted on a long term basis, is free of interest.

Nam Ko hydropower plant is a small power plant with three generators, each having a capacity of 500 kw. All the three generators are capable of generating more than 970,000 mw/h per year. The structure of the power plant includes a water sluice, a 830 meter-long water tunnel drilled under a mountain, a 1,420 meter-long concrete canal, two 100 meter-long catchment gutters, and a water catchment basin capable of containing 482 cubic meters.

Completed at the end of 1996, the power plant was operated on a trial basis to supply electricity to urban areas of Oudomsay province for some time. However, the power supply was suspended because there were technical problems with the water catchment basin. Its repair took more than one year. So the official hand over ceremony of the power plant was delayed until April 21. Now more than 3,000 households in Meuang Say and Meuang La have access to electricity from it. From now until the year 2000, the Electricity du Laos branch in Oudomsay will develop low and mid-voltage power transmission lines to ensure that all households in the two districts have electricity.

The renovation of a 200 km strategic stretch of Road No 13 South between km-35 in Savannakhet and Pakse will start this month. This was disclosed by the director of the Savannakhet-Pakse Road No 13 South Renovation Project, following the signing of contracts with two contractors at the Ministry of Communication, Transport, Post and Construction.

The two contractors are the Lao-Singapore Company which won the first 29.1 billion kip contract, and the People's Republic of China which captured the second 28.64 billion kip contract. The two contracts amount to 57.66 billion kip, approximately US$ 27.43 million in the international bedding.

The fund for the project comes from a loan from the World Bank to the Ministry of Communication, Transport, Post and Construction. Experts for the project are from Denmark.

According to the project, the road stretch third category of international standard, will be 11 m wide of which seven meters will be set for road traffic. The renovation of this strategic road will be completed in mid-August, 2001.

Handicraft goods are going to develop by clustering handicraft workers. Recently the Ministry of Industry and Handicrafts allowed handicraft workers to establish a Lao handicraft group. The aim of the group is to preserve Lao-style handicrafts and bring craft workers together. By bringing them together, they will be easier to administrate and the workloads will increase. Another objective is to extend handicraft trade within the country by using new technologies blended with elaborate Lao-style designs and workmanship to make the quality of goods with standard quality, increasing their popularity within the country and on foreign markets.

This group is supported by UN-ESCAP and GTZ-PROTRADE. It will open handicrafts exhibitions soon in Sayaboury and Luang Prabang. The Luang Prabang exhibitions will be held in Pha Nom village and Sang Khong village because the villagers in these localities are active in handicrafts. In the future, handicraft workers in Luang Prabang will be invited to be members of the new handicraft group.

Lao and Chinese companies have agreed to enter into a joint venture to build a 300 million Yuan cement plant in Vang Vieng district, Vientiane province. The agreement was signed between the Agriculture and Forestry Development firm and the Lao Import-Export Service (AFD-LIXC) in collaboration with the China Yunan Corporation for International Techno-Economic Cooperation (CYCITEC).

Under the agreement, a medium-sized cement plant with a capacity of 200,000 tons per year will be built in Vang Vieng district, where the first cement plant was built. The construction of the second cement plant expected to kick off in mid 1999 will take two years and a half, following the completion of a geological survey, design, technical and economic analysis, and the Lao government's authorization.

The concession will be valid for 20-25 years. Owned by the Agriculture and Forestry Development firm and the Lao Import-Export Service, the first cement plant with a capacity of 73,000 tons per year was completed in 1994 at a cost of US$ 13.9 million. Half of the expenses are loans from the People's Republic of China.

In the 1998-99 fiscal year, Saravane plans to inject 11.04 billion kip in 10 priority programs in its effort to move socio-economic development in the southern province. The figure marks a 15 percent increase over the budget for 1997-98 period.

The 10 priority programs include production of foodstuffs and cereal, commodity production, rural development, termination to slash-and-burn cultivation, seeking of income sources, human resources development, services, foreign cooperation, and social order and security.

The budgetary plan was endorsed at a meeting on investment programs for the 1998-99 fiscal year of this southern province. The plan will be considered by the fifth executive committee of the provincial Party committee in its first plenary meeting to be organized soon.

The Ministry of Communication, Transportation, Post and construction (CTPC) along with the Overseas Economic Cooperation Fund of Japan (OECF) signed a Memorandum of Understanding (MOU) for the construction of the new bridge to cross the Mekong river and connect Savannakhet province, Laos with Mukdahan province, Thailand.

The agreement calls for the release of a 5,148 million yen loan for the construction of the Lao-side of the international span. The OECF will also release 5,302 million yen to the Thai side to finance construction of their side of the bridge.

Upon completion, the bridge will span 1440 meters and be 12 meters wide. It will be the second bridge to connect Laos and Thailand.

The Lao government with assistance from the Asian Development Bank (ADB) hosted the Fourth Meeting of the Sub-regional Forum for the Greater Mekong Sub-region (GMS). The meeting aimed at strengthening transportation cooperation for the continued economic development of the GMS.

Delegates from the Ministry of Communication, Transportation, Posts and Construction of Laos, Cambodia, Myanmar, Thailand, Vietnam, Yunan province of China, and representatives from Malaysia, France, Japan, the UNDP and other international organizations reviewed the progress of implementation of sub-regional transportation projects and activities, in particular, the Phnom Penh-Ho Chi Minh Project, the East-West Transport Corridor Project, and the Chiang Rai-Kunming Transport Project, and the Cross Border Movement of goods and people in the GMS. Participants also exchanged views on "second tier" sub-regional priority projects and discussed other regional initiatives in the transport sector.

Cross border issues related to solving transport impediments within the sub-region were also on the agenda. Some of the problems for facilitating the quick movement of goods and people across the region's borders were thought to be: proper management and control, efficient organization, adequate and competent human resources, and necessary tools and equipment at the borders.

Transport and communication were said to have a critical role in the social and economic development of each country within the GMS.

The participants were reported the components of sub-regional road projects in the Lao PDR. To date, sections involved in the Chiang Rai-Kunming road improvement project had made the least progress; Road 9 under the East-West Transport Corridor Project has been able to obtain financing and the southern Laos-Sihanoukville Road Project is proceeding well, with civil works scheduled to be completed before the turn of the century. Progress was likewise reported concerning water transport in the upper Lanxang-Mekong river. A bilateral navigation agreement with China has been signed, and meetings have been held with Thailand and Myanmar to draft a similar agreement. While railway project components in Laos remain at a standstill because of funding problems, there have been significant developments in the air transport sub-sector. At the moment airports around the country are undergoing improvements. An air control tower and new passenger terminal at the Vientiane International Airport is being built with grant aid from Japan. An extension of the runway at Luang Prabang Airport, which has recently been opened as an international airport, is underway with assistance from Thailand. The Pakse Airport is also under improvement with assistance from the ADB and Overseas Economic Cooperation Fund of Japan(OECF). In addition to the airport improvements, several air strips are being planned to promote domestic communication, trade investment and tourism.

Officials in Savannakhet province continue in their efforts to fight deforestation with a reforestation project supported by both the Asian Development Bank (ADB) and Lao government. For now, this project has been named: "the ADB project". The aim of the project is to produce young plants to supply enterprises and individuals for planting in deforested areas.

Specialists attached to the project have also given advice about how best to protect trees in the early stages in order that they grow to be 5-6 years old and are thus old enough to sell.

At the moment there are three model areas for tree growing, they are: Phonsim village, Khanthaboury district (52 ha), Boung Bouathong village, Sayboury district (13 ha), and Outhumphone district (4.7 ha). At Outhumphone, a garden has been planted to gather seeds so that in the future it won't be necessary to import seeds from other countries. Those trees most planted are eucalyptus and acacia. These types of trees are known to grow quickly and so far the growers at the project are happy with the good results. In 1997, 72 families at Phonsim village were loaned money from the bank to make their own gardens, and at the moment 92 families are growing trees on 130 ha.

An integrated development area has been set up by Oudomsay authorities to help two ethnic groups change from slash-and-burn cultivation and planting opium. The two groups include 586 families who have been allocated permanent rice fields to plant crops in the Nahom area.

This focal area with its striking natural landscape is still rich in trees, wildlife and fish and is especially appropriate for agricultural development. This area has a farmland capacity of several hundred hectares and about 850 ha of rice fields. Although it is about 99 percent mountainous, there are also many small plains along the various river banks suitable for planting crops for trade which is the reason why the provincial authorities set up this area for development to improve the living conditions of the local people.

The Nahom integrated development area, located about 22km from the Pakbeng district town, is home to two ethnic groups, Hmong and Khmu, with a population of 4,066. For generations, these people have practiced slash-and-burn cultivation as their main job. As this type of cultivation depends on the rains, when the climate is good, the people have rice to eat for about nine months. However, when the weather is bad they do not have enough rice to feed themselves. They have to find work outside their villages to support themselves until the next farming season.

To improve the living conditions of the people, the Pakbeng district and provincial authorities decided to pour their funds and some international funds into developing this area. At first, the government contributed about 600 million kip to build 35 kilometers of roads from the Pakbeng district town to the development area and roads passing through the mountains into the various villages. Last year, the people expanded their rice fields by about 31 ha and built three irrigation systems for a total cost of seven million kip. So far, the district authority has allocated forest and land to the people and the two tribes have resettled in nine villages to do permanent farming. Since this move, the government is now trying to find international funds to build a permanent school with five classrooms and two semi-permanent schools, for a total cost of more than 35 million kip. They also plan to build a health care center and set up nine home-based drug revolving funds. In 1997-98, people will continue to move down from the mountains to the plains along the river banks and be given permanent jobs to replace opium growing and slash-and-burn cultivation with cash crops, raising livestock and planting fruit trees.

Lao children in rural and remote areas may have more opportunity to study since a Loan Negotiation Minute was signed between to Ministry of Education and donors.

As the Lao government has a plan to improve basic education among children and adults, especially women in rural and remote areas, it has made efforts to find funds from outside donors.

The signing of the Minute indicates that the Lao government is working towards its target. The Ministry of Education proposes to establish a basic education project for ethnic people, especially women. In the proposal, the Ministry asked the Asian Development Bank (ADB) to provide US$ 20 million. The Australian assistance agency (AusAid), will grant the project US$ 4.3 million and the Lao government and people will contribute about US$ 8.7 million. However, the success of the project still depends on the donors who will study the Ministry's proposals before the final decision.

The project is to encourage more and more people in rural areas to enter primary school, finish it and continue on to secondary school. The project will focus on the construction of 425 primary school building across the country. The project to start this year will also train teachers and supervisors, especially women and ethnic teachers.

A unit for the study of gender roles and minority education will also be established. The project will be divided into two phases. During the first three years (the first phase), it will cover 96 villages in 12 districts in Phongsaly, Oudomsay, Borikhamsay, Khammouane, Sekong and Attopeu provinces.

It is expected that the project will be able to help Lao children and uneducated adults, especially those who want to study but have no school to attend. The real situation is that most of the villages in Laos do not have enough schools or teachers, therefore some poor rural villagers who have no vehicles to travel to school have to walk or cycle a long way every day to study in another village in the same region. Moreover, the Lao country side is sparsely settled; some villages have only ten families which often does not make it feasible to build schools and provide teachers.

If all goes according to the plans, this basic education improvement project will build combined- classroom schools allowing villagers to enter primary and possibly junior high school near their homes. This is an experimented method which was used by many developed and developing countries in the world.

The government of Sweden has agreed to continue to support the development of statistical system in Laos. It is the third agreement of the same kind between the two countries and it covers the period 1998-2000. Sweden will support the implementation and monitoring of the project within an amount of SEK 25,000,000 for the whole period. More precisely, the agreement provides funds for support to the National Statistical Center (NSC), and to other producers of statistics within Ministries.

This kind of support started in 1992 and has, during its existence, contributed to a rapid development of the statistical capacity at the NSC. The first achievement was the 1992 LAO Expenditure and consumption Survey and Social Indicator Survey providing important inputs to the analysis of economic and social conditions in the country. The 1995 Population Census was successfully completed with Swedish support. National Accounts and Consumer Price Index are other areas of improvements. The NSC has also recently been equipped with the most modern client/server techniques in order to be able to process and make access to more and more databases.

This third agreement will support the development of the statistical system in four areas: 1- to the overall system of statistics at the National Statistical Center, especially the national accounts, input-output tables and social accounting matrices, 2- to line ministries for the development of sector statistics in their respective fields, 3- for special support to analyses of the 1997/98 LAO Expenditure and Consumption Survey such as poverty, agriculture, time use and household production (with gender issues), nutrition and household businesses, 4-for the undertaking of the 1998/99 Agricultural Census.

The commencement ceremony for the new bridge construction phase was officially held in Khammouane province.

The construction of these bridges, which was actually started before the official commencement ceremony, is expected to be completed in March 1999. This is the second phase of a 1.9 billion yen project assisted by the government and people of Japan. The first phase of construction saw 26 bridges, from Pakkading (the border of Borikhamsay and Khammouane provinces) to Thakhek, completed earlier last year.

The bridges are being build by the Japanese engineering firm Obayashi Corporation with inspections to be carried out by the Japanese consultants Oriental Consultants and Japan Overseas Consultants. Due to the good track record of Japanese companies, officials remain confident that Obayashi will complete the bridges on time or even ahead of schedule.

In the area of road construction, Japan is involved in the building of National Road No8, construction of the Pakse bridge to span the Mekong River, the reconstruction of 26 bridges from Pakkading to Thakhek, and reconstruction of many small scale bridges in Champassak province.

The Japanese government also plans to help building another Mekong friendship bridge between Savannakhet and Mukdahan, Thailand.

Improving the level of infrastructure in the country is said to be of crucial importance to the Lao PDR as many feel the country has the potential to be at the very center of the future development of the Great Mekong River Sub-Region.

Moreover, the government of Japan also commits 822 million yen, or about US$ 7 million grants aid to the Lao PDR for three projects, namely: -The construction of an afforestation center worth 416,000,000 yen to be located at Vangvieng in Vientiane province; -A project for malaria control worth 260,000,000 yen; -Debt relief for the first half of 1998 worth 146,000,000 yen.

Construction of the afforestation center is to support and defend forests north of the Nam Ngum dam area. The malaria control project aims to combat the incidence of malaria infection around the country. Funds for debt relief are aimed at supporting and improving the socio-economic development of the Lao PDR.

The first links of development cooperation between Laos and Sweden were established in the mid-seventies. In the early years Swedish support was geared towards the reconstruction of the war-torn country; this included Bailey bridges to make roads passable, trucks and lorries to transport essential goods, and subsequently a workshop (km 14) for repair and maintenance of heavy vehicles.

In 1976-77 Laos became a "program country" for bilateral Swedish development assistance, and in 1978 an embassy with a SIDA office was opened in Vientiane. In the late seventies forestry was added to the country program. During the eighties forestry and a more general support to roads and communications dominated the cooperation.

Towards the end of the decade a major investment in cooperation with the Asian Development Bank was the Xeset hydropower station. A technical assistance component at the Electricité du Laos complemented this project.

In 1997 total development assistance from Sweden to Laos amounted to US$ 15,3 million. Road and forestry continue to be the major fields of cooperation, together amounting to more than 70 percent of the total. The major emphasis in most projects is institution building and manpower development.

Since the mid-eighties Sweden has provided program support to the road sector through the Ministry of Communication, Transport, Post and Construction (MCTPC). A major component of assistance has been the construction of about 190 km of Road 13 south from Vientiane to Pakkading, officially inaugurated early 1997. The construction work, including nine bridges, was carried out by a Swedish contractor SKANSKA. Presently, the program has entered a new phase of cooperation 1997-2000. The new program, amounting to approximately US$ 24 million, will mainly include capacity building and provincial road construction and maintenance in three provinces: Oudomsay, Luang Prabang and Khammouane. In addition, construction of some access roads to Road 13 South in the Vientiane and Bolikhamsay provinces will be included.

The Lao-Swedish Forestry Program (LSFP), which started in the late seventies, is now in its fourth program phase. It is implemented by the Department of Forestry of the Ministry of Agriculture and Forestry with technical assistance from Sweden. Methods development for stabilization of shifting cultivation in the up-lands of Luang Prabang and joint forest management with selected villages in Saravane and Savannakhet as well as protection and management of selected conversation areas are some of the most important activities. The annual budget amounts to approximately US$ 4 million. Moreover, there are many projects dealing with health care system, statistics, environment, rule of law, and demining also receive a great support from the Swedish government.

As a result of this official development cooperation a number of Swedish companies have established themselves in Laos, or obtained contracts under credit agreements with international development banks, for example in road and communications sector. There is also an active commercial involvement in the hydropower sector, especially the 210 MW Theun Hinboun Power Project which was inaugurated in April this year, as well as in a few smaller private undertakings.

Lao National Commission for Drug Control and Supervision (LCDC) sets up new Counter Narcotics Unit in Oudomsay, with a ceremony held in Muang Xay, making it the fourth unit established in Laos with the US government assistance. The first three units are in Vientiane, Savannakhet, and Bokeo provinces. For each unit, the Lao government provides personnel and office space, and the US government provides training and equipment.

Oudomsay is a northern province where people still plant opium and partake in illegal trafficking. The fairly easy access to Oudomsay by road, air and river, as well as its common borders with many Lao provinces and China, facilitates illegal trafficking by the local population.

According to the 97-98 statistics there are more than 3,000 ha of opium plantations in 55 areas throughout the province. About 3,510 people are addicted to opium and still others are addicted to amphetamines and involved in the illegal traffic of narcotics.

To implement the government's order on stopping activities of trafficking, owning, producing and distributing narcotics, Oudomsay province has tried to set up activities to successfully reach this target. These include sending staff to rural areas to educate people about stopping opium plantations and to encourage them to do legal jobs.

In addition, the provincial authority has cured about 522 opium addicts, arrested some of the offenders and recovered 68.25 kg of heroin and other evidence. The cases of nine offenders arrested have been transferred to court for judgment.

The trafficking, production and use of narcotics has become a difficult problem world-wide. So the power of one country alone cannot solve this problem; narcotics protection and suppression are the responsibility of people around the world and countries must help each other. To solve the narcotics problem, the Lao government cooperates with many countries in the world, especially exchanging experience and information with neighboring countries.

According to the report, the US government will continue to support the establishment of counter narcotics units in Laos. Counter Narcotics Units are planned for Houaphan, Luang Prabang, Phongsaly, Xieng Khouang, Sayaboury, and Champassak provinces in the near future.

A national workshop on measures to prevent the diversion of legal substances, known as precursors, from legitimate trade for illegal narcotic production was organized in Vientiane, by the Lao National Commission for Drug Control and Supervision (LCDC) and the United Nations Drug Control Program (UNDCP) and is supported by the European Commission and the British government.

The workshop was of great significance since it demonstrated the efforts being made by the Lao government in the area of drug control and supervision for the country's security and social order, and for a society free from the threat of drugs.

As is generally known, Southeast Asia is one of region that produce opium and heroin, while drug consumption in the region has experienced constant growth. In addition to the two above mentioned drugs, officials have noticed that the region is facing other drug production and trafficking abuses. In particular, experts view amphetamines as the most dangerous drug in the coming century. Though Laos is not facing a serious threat from amphetamines yet, 1997-1998 statistics show that arrests have risen 10 times against 1996's.

Concerning the issues of control and eradication, the attention was paid to the control of precursors, the important chemicals for converting opium into heroin and for the production of amphetamines.

It is realized the significance of the workshop, since it would present actual lessons and apply international principles in precursor control to the participants and familiarize them with drug traffickers' tactics in their efforts to divert precursors from legitimate trade for illegal narcotic production. In the past, as Lao counter-narcotic officers were inexperienced, opportunists brought in precursors through legal business operations and diverted the chemical for illegal drug production. As the cases in 1996, the crack-down on an amphetamine plant at Ban Mom village, Tonpheung district, Bokeo province, and the case of Diazepam in 1994 in Vientiane municipality.

The subjects covered at the workshop included precursor situation in East and Southeast Asia, precursors used in illicit drug production, background of precursor control and basic measures to identify and prevent diversion from legitimate trade.

The Leu tribe is one of the many ethnic groups in the Lao PDR. They live in the northern provinces of Luang Namtha, Oudomsay and Phongsaly . According to the 1985 census, this tribe has a population of about 102,760. Researcher reported that this tribe likes to live in the lowlands, breeding animals and growing vegetables. They breed buffaloes and cows to use for labor in the rice fields as well as for food. Besides cattle, they breed chickens, ducks and pigs for use in their various traditional ceremonies and for trade.

Most often, Leu houses are 12-15m long and 5-6 m wide and built on piles. The roofs of their houses are covered with grass and some families, who has more money, use wood. Inside, their homes have only one big area; it is not divided up into separate rooms. However, the area inside the house has two parts: one for guests and the other for the family members. Married people sleep under a black mosquito-net, the parents sleep next to the area where the guests sleep, followed by other family members. Daughters, who are single, sleep outside on the covered terrace in front of the house and single sons sleep in the guests' area. They also reserve a place for worship, and outsiders are not allowed to come near that area. Normally, Leu houses have two kilns, one for cooking and one for boiling water for visitors. Some large families have four or five kilns in a single house.

The Leu tribe has very good handicrafts skills like those in other ethnic minority groups, including weaving, sewing, and blacksmithing. The men make silver necklaces and earrings among other things.

Leu boys wear black shirts and trousers and tie a white scarf around their heads. The upper part of their trouser legs are embroidered with flowers. Leu men used to tattoo their arms and legs and pierce their ears, but that practice has been abandoned.

Most of Leu girls wear black blouses, but on traditional ceremony days, they wear red and purple midriffs, made from silk. The bottom of their skirts are black, but embroidered with flowers and many colors from the middle to the waist. Some traditional skirts have three parts, each with a different design to show off their workmanship. Leu women also wear a white scarf tied around their heads. They like wearing arm and leg bracelets, necklaces and earrings.

The Leu tribe practices Buddhism and they still believe in ghosts. Leu have their own alphabet which comes from the Pali letters. The Leu letters are widely used in their temples. Although their language is different from Lao, it can be understood by Lao speakers.

The Leu also have their own art such as traditional songs which describe the relationship between nature and people. They enjoy singing at wedding, ceremonies, new house ceremonies and when they go on picnics in the forest. They play traditional music instruments such as flutes, violins and two-chord guitars.

A young Leu adult has the right to choose his or her mate at the age of 16 or older. According to Leu traditions, the boy goes to the girl's house, where they talk. If they love each other, the boy will ask the girl's parents or older relative for the girl's hand in marriage. If the girl's family agrees, a wedding date is set. On the engagement day, the girl's family kills chickens and pigs to prepare food for the village chief and elders. The chief will decide if they can be husband and wife. According, to tradition, the girl's family is in charge of providing the bedroom necessities such as pillows, blankets and the mosquito-net.

The wedding ceremony is organized at the bride's house. Both sides are responsible for the food. The elders and relatives parade the groom to the bride's house. when they reach to the foot of the stairs at the bride's house, one person waits to receive a money bag, sword and knife from the groom. After that, the oldest member on the bride's side will lead the groom to the baci ceremony.

Once the ceremony at the bride's house is over, the bride is led to the groom's house for another baci. According to tradition, the boy usually pays some silver coins to the girl and her parents.

Like other Buddhists, the Leu honor their dead by offering food and household items to the monks. The Leu also have their own traditional ceremonies according to their calendar such as the Leu New Year which falls in June. For the New Year, they worship and ask god for water for their agricultural production. During the three-day New Year celebration, they go to the temple to pray. In addition to the New Year, they also have a rocket festival ( Boun bangfai ) as well as the various ceremonies on the Lao calendar such as entering Buddhist lent and the end of Buddhist lent as well as festival for the dead.

Agreements have recently been reached between Laos and Myanmar to develop tourism between the two countries in the Golden Triangle. An agreement was concluded when a delegation of the Hotel and Tourism Ministry of Myanmar visited Laos. The visit fulfilled conditions of an agreement signed in May Last year to pursue investment opportunities.

As a result of the visit, both sides agreed to cooperate, develop and promote tourism, especially in the Golden Triangle, the border between Laos, Myanmar and Thailand. The agreement also covers several aspects including:

1. To facilitate tourists traveling by road: - from Houaisay (Laos) through Thakhilek (Myanmar) to Xiang Rai (Thailand). - from Thakhilek through Houaisay to Xiang Rai.
2. To increase investment of state firms and private enterprises in Lao territory in order to welcome tourists to Laos through the Golden Triangle.
3. To create situations to support businessmen and tourists and entrepreneurs of the two countries to be able to exchange their experiences and run businesses together.

The National Tourism Authority of Laos also informed and invited Myanmar to join the campaign about the Visit Laos Year 1999-2000.