The National Assembly ( third legislature ) in April closed its 10th ordinary meeting after 16 days of session, with the adoption of a resolution endorsing four law bills.

The resolution indicated that the 10th ordinary meeting of the National Assembly (NA) considered and adopted four new laws, including the law on land, the law on electricity, the law on minerals and the law on land transportation, and amendments to the law on the election of National Assembly members.

According to the resolution, the four new laws adopted will add to the instruments of the state in macro-management. They will also create conditions favorable for national management and use of the economic potentials of the country based on the mechanism of a market economy. At the same time, the new laws will serve to promote cooperation, and domestic and foreign investment.

The resolution said that since the 9th ordinary meeting, National Assembly members had conducted some important activities. They met people, voters in their respective election constituencies, and discussed the implementation of the resolution of the 9th ordinary meeting with them. In addition the visiting National Assembly members mobilized people to take part in realizing the social economic development plan and the annual budget plan for 1996-1997, and coordinated the efforts of the administrative authorities to solve problems according to complaints, petitions or requests from the people.

The resolution said that from now till the end of 1997, which is the last pan of the term of office for the NA third legislature, some main activities have to be carried out in preparations for the 11th extraordinary meeting of the National Assembly, including the contents and conditions for the elections of members to the National Assembly (fourth legislature) due in late 1997.

On May 01, 1997, the Economic and Social Council of the United Nations, also known as ECOSOC, at its regular session proceeded to the election of candidates to different UN subsidiary bodies. Laos whose candidacy had been endorsed long ago by the Asian group, was elected by acclamation by the Council to the Commission on Narcotic Drugs (CND).

The CND, one of the important organs of the United Nations, has the duty to elaborate policies and formulate various measures to be submitted to a higher UN body for consideration with the objective of solving the problem of drug abuse worldwide. The election of Laos to the above-mentioned Commission this year, first time ever since it became member of the United Nations on December 14, 1955, clearly indicates its increasingly important role in the international arena. It also shows the recognition of the international community of the correct policy of the Lao Government in handling drug issues.

In the capacity as member of the said Commission, in collaboration with other member countries, the Lao PDR whose term will begin from January 1998 to December 2001, will do its utmost and participate actively in the work of the said Commission in order to contribute to the international community's efforts aiming at tackling the scourge of drug abuse at the global scene.

Houay-Ho Hydropower Project recently held a ceremony to mark the completion of the dam across the Houay-Ho river and the closing of the pressure tunnel from the reservoir to the power station in Attapue province. More than 85 per cent of the work has been completed, and the tunnel was closed to collect water for the next two year until the turbines and generators become operational.

The Government has agreed to allow the Project Development Group composing of Deawoo Corporation (South Korea) to hold 60 per cent of the share, with Electricity du Laos(EDL) 20 per cent and Loxley Public Company Limited (Thailand) to hold the remaining 20 %. The Project Development Group is responsible for development, design, construction, operational and maintenance of the project.

EDL will assist the Group for the operation of the power plan and also will coordinate with the Lao Government.

Deawoo Corporation, one of the largest Korean general contractor, with worldwide activities, will be responsible for the design engineering, procurement, construction and commissioning of the project as a turnkey contractor.

Loxley Public Company Limited, one of the Thailand's largest trading companies will participate as equity partner representing Thailand's interest in the project.

The Houay-Ho Hydropower Project is built on the Houay-Ho river in the southern part of Laos. The Project site is about 160 km east of Pakse and approximately 30 km from the town of Attapeu.

The project has completed the basic work, but entire work is not yet complete. Only the power plant is set up to be able to generate electricity and set up transmission lines from Houay-Ho to Ubon Rachathani in Thailand. Now the transmission line is more than 50 per cent complete. By closing the tunnel now, water will be collected about 500-600 million m3. It can generate about 300 to 500 million KW/h per year. After one year collection of water, it will be a test to run one turbine. If on schedule the project will be complete in 1999.

The Houay-Ho project will be pursued on a Build, Operate and Transfer ( BOT ) basis, which is usually based on concession agreement between the Government and the project company established by sponsors to carry out the construction and operation of the project . The project will have 30 years' concession beginning from the beginning of 1999. Electricity generated by the power station will be sold to the Electricity Generating Authority of Thailand (EGAT).

The total project cost including interest during construction approximately US$220 million. It is planed that US$50 million will be financed through equity and the remaining through debt.

Most of the electricity, which is generated by the Houay-Ho plant will be sold to Thailand and five to ten MW will also to be used in the Champasack and Attapue provinces. The project will earn about US$26 to 32 million per year from selling electricity.

The Houay-Ho hydropower has a nominal rate installed capacity of 150 MW. Water will run into the power station along the upper pressure tunnel, the vertical pressure shaft, the lower pressure tunnel and the penstock. Water from the power station will be discharge into Xekong river through a 870 m long tailrace channel. Two units of Pelton type in the power station, each having a rate capacity of 75 MW.

This project is only flooding 37 sq km, with no big trees, pines and many bombs. Only two villages are affected. The project has already relocated 400 families to new settlements, about 60 km from their old villages. It has built houses for each family and allocated one hectare of land for cultivation for each family. One hospital and school has been provided with training for permanent occupations.

The Asian Development Bank (ADB) and the Government of the Lao PDR signed a Memorandum of Understanding (MOU) in Vientiane for a technical assistance fact-finding mission to support Urban Development Management Committees in secondary towns (UDMCs). The MOU was signed at the Ministry of Communication, Transport, Post and Construction (MCTPC).

The proposed Bank loan will finance integrated urban development investment in the town of Luang Prabang, Paksé, Savannakhet, and Thakhek, to be managed by the UDMCs. The Ministry of the Communication, Transport, Post and Construction will be the executing agency for the project.

According to the document from the UDMCs, as a further step, the Government aims to establish municipal administration for the project towns with full responsibility for maintaining urban infrastructure, planning and controlling land use, and sustainable urban delivery service. UDMCs are required to meet specific needs of urban communities, and are designed to operate on principles of cost recovery where possible, through the increased mobilization of local resources.

The aims of the Technical Assistance (TA) is to support development toward stronger and self-sustaining urban institutions and municipal administrations. It will address this at the central and local level. The specific objectives of the TA are: to support the national level Government Project Management Unit and the local level Project Implementation Unit within the UDMCs.

Effective implementation of the Secondary Towns Urban Development Project, with particular emphasis on institutional and procedural aspects, is to provide institutional support to government at provincial and local levels, including the setting of the staff structure, devising the phased implementation plan, identifying training needs, and formulating and preparing training programs. The scope of the TA consists of two parts: Project Management, will be undertaken at the central level, and Institutional Support, will be focused at provincial levels, to promote the establishment adequate functioning of the UDMCs.

The ADB will act as the biggest source of funding for this project which is worth over US$38 million. Other financial contributors are the United Nations Development Program (UNDP), a Norwegian organization (NORAD), a German organization (KFW), the government of the Lao PDR and from the local people in the four towns who will be the direct beneficiaries of the project.

According to the UDMCs, the processing of this TA is scheduled as follows: the TA will be approved in July and a sort list consultants will be announced in September this year. The contact negotiations will be signed in December this year, and the project will commence in January 1998. It is expected to be completed in the year 2000.

An agreement on train transportation between Laos and Thailand was signed in last April between the Lao Ministry of Communication, Transport, Post and Construction and Ministry of Transport and Communications of the Kingdom of Thailand.

The two sides agreed to build a railway between Vientiane and Nong Khai in northeastern Thailand. They also agreed to set up a joint working committee to study an agreement and put it into effect.

This agreement covers bilateral cooperation between Laos and Thailand. In term of passengers and goods transportation, in line with Lao and Thai policies, construction of road and railway network will be accelerated, which will promote the growth of economic activity and trade between the two countries.

Since 1966, technical assistance has been provided to riparian countries for bank protection design and construction at critically affected areas of the Mekong River.

The Australian Government has provided financial assistance for such construction work for Tha Deua Phase I (1991) and Tha Deua Phase II (1993) under the Mekong River Commission (MRC) project . "Lao Mekong River Bank Protection." bank protection projects began at Wattay and Tha Vat Muongva, the two most affected sites identified in the Vientiane Municipality, in 1995 and 1996. The total assistance amounted to over US $731 thousand.

The design work was started in 1994, using a new technique applied for the first time in the region - the reinforced earth technique. This low cost bank protection design has been modeled, developed and constructed at Tha Deua followed by a slightly amended version at Wattay and Tha Vat Muongva. bank protection, with a total length of 250 m and a width of approximately 28 m, filled with rip-rap at the beginning and at the end.

Besides the construction work, seminars on computer applications for slope stability checks and river morphology for the Vientiane-Nong Khai stretch of the Mekong were organized for the local staff.

The Wattay bank project was completed in August 1996 and the Tha Vat Muongva project in October 1996. The projects will help areas affected by flooding. Besides helping to train the local staff in investigating, tendering and supervising low cost bank protection projects, the projects have also led to the finalization of a technical file for another embankment at Vat Sop.

The completed Namkading to Savannakhet section of road under the Lao No 13 Highway Improvement Project, was handed over to the Lao Government.

The Namkading to Savannakhet section is a part of the Road 13 National Road financed with World Bank loans for the construction and extension of communication, according to the socioeconomic development plans outlined by the Government. Construction work for this project was carried out by the Tianjin Construction Company of China, while the design and works supervision were implemented with great success by the Consulting Engineering Service Private Limited (CES), in close coordination with the Lao project management, representing the Government. The total cost of the project was US$ 55.7 million, plus over 2 billion kip of participatory funds from the Government.

The Namkading to Savannakhet section of Highway 13 is 276 km in length and 9 meters wide with double level paving. Constructed within this stretch of road are six concrete and pre-stressed concrete bridges totaling 377.22 meters, box culverts measuring 628 ms, nearly 10 thousand ms of pipe culverts, and drainage constructed with concrete slabs measuring over 45.5 kilometers.

In addition, other works including bank protection, guard posts, kilometer stone and traffic signs were also completed. The construction, begun in February, 1992 was completed in April, 1997. The construction took about five years and three months.

The completion of the Namkading to Savannakhet road construction project has facilitated , accelerated and secured road safety, helped development of the area along the road and improve the living standard of the rural populace. The achievement also represent a historical landmark for the Lao population in general and more specifically for those in Pakkading, Khanthabouly and Outhoumphone districts who now has easy access to neighboring towns and cities forming a spearhead for the national economic development.

"Ensuring all workers in the Lao PDR to have a social safety net'' is the objective of a new aid project of the United Nations Development Program (UNDP) which has been set up in the Lao PDR.

UNDP will focus on designing the structure, or "webbing", of the bet, with special attention given to the private sector which now employs 70,000 people without organized fall-back protection: employers must take in responsibility for their employees- this is vital for poor growing private sector and a priority for the Lao government..

The project , worth more than US$ 1 million, will set up a social security system for the private sector. Employers pay into this system together with their employees in return for access to such things as paid sick leave and protection in case of accidents at work.

Since 1986, the Lao government has encouraged private sector development, selling off enterprises that it formerly owned. The labor law, enacted in 1994, refers to social security coverage for private sector workers but lacks the legal and administrative to make it a reality.

The government will design an effective social security system that can finance itself. UNDP will fund international experts to work with staff in the social security and pension departments of the Lao Ministry of Labor and Social Welfare.

The project will also revise the existing social security decree for public servants so that it can support itself financially. The new social security net will be set up in a way that protects and benefits employees and the Lao economy.

To accomplish these goals, the project will use a staged approach beginning with a modest scheme for both the private and the public sector that is easily managed by a small administration, later, coverage can expand.

A Memorandum of Understanding (MOU) on environmental protection and community development was signed for the wetland area of Siphandone in southern Champassak by the Ministry of Agriculture and Forestry with the Cooperation and Development Organization of Italy (CESVI).

Siphandone is one of Laos' most important wetlands containing many endangered species including the rare Irrawaddy dolphin (known by the Lao as Pa Kha). The project area covers 54 villages in Siphandone. However, initial activities will focus only on four villages where four programs are to be implemented. These include data collection , monitoring and assessment of data on fisheries and biology, assessment of the environment, and training.

Workshops and training on protection of water resources and community development in Siphandone wetlands will form a major part of the project. The agreement follows the community fishery and protection of the Irrawady dolphin project.

General Finance Asia Tech Group Company of Thailand and GF-Brierley of New Zealand invest some US $ 30 million over a fifty-year period for a forest plantation program in Khammoune and Bolikhamxay province of Laos, according to a Memorandum of Understanding (MOU) signed with the Lao Government last month.

In Khammoune province they have tested 100 ha for planting Acacia Mangium trees. The total area for planting trees of the project by year fifty is 50,000 ha in Khammoune and Bolikhamxay provinces. They will start planting trees at the beginning of the rainy season this year.

The Lao Government will hold a 15 per cent share of the project, Asia Tech Group Company 30 per cent, and GF-Brierley 40 per cent stake.

Laos and Singapore have signed a business agreement for express transportation and distribution of packages in the Lao PDR, heralding faster mail services.

The agreement was signed between Entreprise des Postes Lao (EPL) (Lao Post Company) and Federal Express (FedEx) at the Lao Plaza Hotel,

At the beginning of the project, EPL will act as an agent of FedEx, delivering and dispatching packages throughout Laos. For all packages from FedEx, EPL will be paid a service fee as mentioned in the agreement. In June, the FedEx Vientiane Office will open its doors within the EPL main facility on Lane Xang Avenue. FedEx will serve Vientiane and the key Lao provinces from this new central location. This new location will be part of the FedEx Asia One Network, with service through Singapore to its transportation hub in Subic Bay, Philippines.The Lao PDR is added to the FedEx network as its 212th destination served.

The American computer marker Digital Corporation entered the Lao market by donating US$ 200,000 worth of State of the Art Computer technology to the Ministry of Foreign Affairs (MFA).

Its aims in coming to Laos at this time is to help the Foreign Ministry to get ready to joint ASEAN as well as to seek a new market for its products. This offer to the Foreign Ministry was just the first step. The next step is to run a number of Information Technology (IT) seminar which will probably take place in June or July at the Foreign Ministry's English Training Centre (International Relations Training Centre), in Vientiane.

The purpose of this Training Seminars will be to discuss information technology issues so that people's general knowledge will be enhanced.

The computers donated include one large 64-bit computer and six high-performance personal computers (PCs), along with some very important software. The software package will contain Internet Software and Local Software capabilities. This "Server", would allowed the Foreign Ministry to get to the Internet and establish a Lao Home Page.

According to a Digital representative, the most important thing that need to be done in Laos is to train more people. There should be an Advisory Board (AB) and on the AB there should be people from different ministries: education sectors, computer vendors, and people concerned with information technology. If such an AB were established, similar advice could be given to all the computer operators and there would be common knowledge.

Digital is the third largest computer company in the world. It specializes in business computing and computer networks and has 124 representation offices in the 124 countries throughout the world.

Recently, the first round of talks on Bilateral Trade Agreement has been held in Vientiane between Lao inter-ministerial team and its U.S. counterparts from the Commerce Department, State Department, Department of Agriculture and the Department of Treasury.

Laos does not get Most Favored Nation treatment from the United States and it hasn't since 1975. This means that goods shipped to the US from Laos are required to pay very high duties, upwards of 30-50 per cent versus the MFN duties which are about 4 per cent on average. At the moment this discrepancy in terms of duties paid make it hard for Lao exporters to have access to the U.S. market. So, the talks aimed at how to normalize trade relations so that Laos can gain MFN treatment. In the United States, this process is a cooperative process between the United States Administration and the Congress. This requires Congress to enact legislation that would authorize the President to grant MFN status only upon completion of a bilateral trade agreement which establishes trade relations. As a result, Laos would have access to the U.S. market and conversely the United States would have access to sell in the Lao market.

The Vientiane Mini Dublin Group (VMDG) met with the Lao National Commission for Drug Control and Supervision (LCDC) to discuss drug issues in Laos, at the Foreign Ministry.

The VMDG, which is interested in drug issues, includes diplomats from Australia, the United States, Sweden, Japan, Germany and France, as well as UNDP and UNCDP representatives based in Vientiane.

Vice-Minister of Foreign Affairs Soubanh Sritthirath, LCDC President, has requested and suggested that the VMDG support and cooperate in three areas to control and supervise drug issue in Laos. First, to help to launch alternative development projects in Oudomsay and Phongsaly. Second, to urge the European member countries represented in Laos to encourage the European Union (EI) to support the Saysomboun project. In case the EU decided not to support this project, it should be encouraged to support other projects such as Oudomsay or Phongsaly. Third, to ask the donors to support a new project to be started in Xiengkhouang next year, and the donors are urged to support this request when it is proposed by UNDCP for the use of the multilateral contributions of the donor's respective countries to UNDCP.

At the meeting, has been reviewed the Government's strategy for reducing the scale of drugs in Laos from the year 1994 to the year 2000. Though in the past there were difficulties in terms of budget, staff, materials, etc, the government and LCDC are pleased with the outcome of those activities, such as the six rural development projects (four of which are under implementation and two of which are under study).

According to the document, the second national opium production survey, which was conducted last year with the collaboration of UNDCP, indicated a slight increase in production to about 140 tons from 130 tons in the first national survey in 1992. However the situation tended to vary form province to province. Generally, production had decreased in the north-eastern provinces of Xiengkhouang and Houaphan, but increased in the north-western ones.

The reason for this evolution and shift in production can be attributed to two main factors. In the provinces of Xiengkhouang and Houaphan production decreased because people have been receiving assistance through alternative development projects. Moreover, the surrender of Khun Sha and his troops in Myanmar resulted in disorganization of the opium and heroin supply in the region. Prices of opium increased considerably in Southeast Asia. The affected areas are mostly the north-western provinces of Laos which are the closest to the Golden Triangle.

Although the price of opium will stay at high levels in the coming years, what happened is good illustration of the inter-related nature of the drug problem in the region and the necessity for a coordinated response.

In the next few weeks, LCDC will make an indepth review of the master plan of the National Drug Control Plan and update its components, including a list reflecting the latest developments.

The Lao National Commission for Drug Control and Supervision (LCDC), acting on behalf of the Lao government, has conferred a medal of Friendship on Albert L. Bryant, Director of Narcotics Control at the U.S. Embassy to Laos.

During his tenure as the First Secretary of the U.S. Embassy in Laos and Director of Narcotics Control since October 1993, Mr. Bryant has made a major contribution to drugs suppression.

The anti-narcotic director visited opium producing areas in the country, and discussed narcotic problems with Lao officials at central and local levels, looking at how they were dealing with these problems.

Mr. Bryant also solicited funds, amounting for over US$10million, for development projects in Viengthong and Houameuang districts, in Houanphan province.

These projects include the Intergreted Rural Development Project, the construction of roads and bridges, irrigation schemes, schools and hospitals, agricultural promotion, electrification, and technical training. They are designed to fight against poverty and a lack of development, to promote fixed farming and better foodstuff production, and ultimately to promote better living conditions. The aim is to eradicate opium cultivation and consumption in the area.

A new narcotics control and supervision office was officially opened in northern Bokeo province. It was the third to be opened in the country. The other two are in Vientiane and Savannakhet.

Addressing the inaugural ceremony, Mr. Soubanh Sritthirath, Deputy Minister of Foreign Affairs, praised efforts by Bokeo officials to control and supervise narcotics.

Talking about outstanding performances, Mr. Soubanh cited the joint effort of provincial administrative authority, customs and police in smashing amphetamines and other illicit drugs.

He said that this counter-narcotics operation helped demonstrate to the world, in an important way, the government commitment to cooperating with international counter-narcotics agencies to fight the illicit drug problem.

American ambassador Wendy Chamberlin, in her speech, made an appreciative note on the increasing cooperation in counter-narcotic activities carried out by the two governments. She spoke of the US government's gratitude for the cooperation which the Lao side has extended to America and other international agencies in the field.

The Bureau for Population, Refugees and Migration of the U.S. Department of State has decided to support the Namsang-Phathao Irrigation Project, Phase 11, in Vangvieng district, Vientiane province.

A grant of over US$ 546,000 has been allocated for this two-year project, which is to benefit refugees repatriated from Thailand. It will affect some 200 families, totaling around 1,000 people. The government have given land for housing and production to these people.

The aid from the U.S. government is expected to help improve their living conditions. The current phase of the project, starting from September 1996, will be completed in August 1998. Work to be carried out includes technical support of feeding canals, water management, training in agriculture and animal husbandry. All the technical support will involve people themselves.

The Canadian Ambassador to the Lao PDR, Manfred Von Nostitz, announced that his government will provide $1 million (Canadian) in food aid support for the World Food Program, to assist those who suffered during the recent flooding in Laos.

Canada has long been a supporter of WFP and its efforts to support those who need food and assistance in times of natural disasters such as the disastrous flooding that occurred in the Lao PDR..

The Canadian government will provide the aid through the Canadian International Development Agency (CIDA) expressing its deep concern over the floods that destroyed crops in central Laos last September.

Mr. von Nostitz said he hoped the donation of food and the concerted efforts of other generous donors would help more than 400,000 flood victims in the country to survive in their villages and be able to cultivate this year's rice crop.

The Lao doctors' association in France, Association des Medecins Laotiens de France, (AMLF) presented to Mahosot Hospital with medical equipment, worth more than US$ 10,000 .

In addition to the equipment, AMLF also presented pharmaceutical product, worth some US$ 65,000 to Mahosot, Pakse and Luang Prabang hospitals.

During the other three missions to Laos, AMLF presented aid respectively worth US$ 30,000, US$90,000 and US$ 46,000.

AMLF received support from the government of France and the European Community as well as French and Lao individuals living in France. This was the fourth visit to Laos by AMLF, within the framework of mutual assistance reached in November 1996.

Q.: Mr. Ambassador, we're here today in Washington at the Embassy of the Lao People's Democratic Republic, and you're your country's highest-ranking representative to North America. That sound like a lot responsibility for one person. Tell me, what does an ambassador do?

A.: Thank you for your interest in the Lao People's Democratic Republic. Indeed, few Americans know about my country, which is literally on the other side of the world. However, I hope this program can give your viewers a glimpse of Laos, as my country is popularly known.

The official duties of any ambassador and the Embassy's staff can be overwhelming. First, an Ambassador has to protect the interests of his or her country and its nationals. Second, he or she has to make every effort to improve the bilateral relationship and cooperation between the home and assigned countries. By relationship, I mean the full scope: politics, culture, economics, trade, development assistance, investment, etc.

To say the least, for a small Embassy like ours in Washington, D.C., these wide-ranging tasks are a challenge. In addition, I serve as Ambassador to the US, Canada and Mexico.

Q.: Here's a copy of a letter from your office with five at the top: PEACE, INDEPENDENCE, DEMOCRACY, UNITY , and PROSPERITY. How do each of these values play into the government of Laos? Let's start with PEACE.

A.: This five-word motto symbolizes the ultimate aspirations of the multi-ethnic people of Laos. These words act as a kind of road map for our national actions, based upon our history and cultural make-up. Let me explain.

Peace, we have learned from experience, is a requisite for building a nation. Without peace, a country cannot pursue economic and social development. For thirty years, from the mid-1940's to the mid-1970's, my people witnessed much warfare and destruction of our countryside. After over two decades of reconstruction, my country has truly entered its modern development stage.

Independence is very critical and precious for a small developing nation like Laos, which was under foreign control for over century. We cherish strongly our integrity and right to decide how we will secure and use our land, our food, and our human and natural resources.

Democracy is a means for citizens to become masters of their nation. As we are a one-party system, sometimes we are accused of not being democratic. In my opinion, there is no single specimen for democracy. Rather, the concept of democracy should be based upon the reality of each country in terms of its history, population, economic development, and educational level. Ultimately, democracy must unite people of a nation state, not divide them.

Unity is crucial for our diverse population which consists of more than 60 ethnic groups. Previously our land was divided into three feudal kingdoms. So, to build a modern nation state, to maintain political and social stability, and to continue our two decades of peace, all of our multi-ethnic people must strive to create unity among themselves.

Finally, prosperity means we should seek to improve the material and moral well-being of all our people.

Q.: 60 diverse ethnic group live in Laos. It's landlocked. Many roads are impassable. There are no railroads as such and only one major airport. As a young, rapidly developing nation, tell me about your greatest challenges.

A.: Those are certainly the realities in my country. We face many challenges, both domestic and international. Let me touch upon a few.

On the domestic level: Over 80 percent of our 4.7 million people live in rural areas. They have little access to roads, markets, and public services such as health and education. Their livelihoods and sources of food depend heavily on the whims of the weather. A significant number of ethnic minorities live in hard-to- reach mountainous villages of 100 to 200 inhabitants. Their economic and educational well-being tends to be much lower than that of the lowland rural people. The challenge facing us is how to provide these remote villagers with access to roads, schools, health services and markets, quickly and cost effectively.

About ten years ago, we moved from an economy managed by the government to one that follows the open market. By doing so, we stabilized our economy, increased outside investment and provided jobs for off-farm workers. At the same time, the market economy has brought forward new concerns. There is a growing economic and social gap between the urban and rural areas, and between the well-off and poor. International aid agencies, like ADRA, have joined my government in making the closing of the poverty gap a top priority.

Another issue is the rising unemployment and underemployment of our youth. Previously our government was able to provide jobs to most youth who graduated secondary level. In the future, we will need to expand our vocational training to fit non-farm employment, as many youths do not wish to farm as their parents did. We also need to tailor their training to fit potential jobs.

At the beginning of this decade, my government adopted its Constitution and began enacting a series of legal codes and decrees for commerce, family affairs, labor, and crimes, to mention some. However, the enforcement and judicial mechanisms will need to be strengthened over the next few decades, especially in rural zones.

On the international scene: Our goal is to change our regional trade and economic cooperation status from 'landlocked" into a "landlinked." We would like to become an intersection of transport between the Southeast Asia peninsula and China. To do this, we must become proactive in promoting commercial trading and exchange of goods with our neighbors.

This year we will join ASEAN, the Association of Southeast Asian Nations. The challenge is how Laos, a small underdeveloped nation, can become an equal partner with ASEAN's more advanced nations, like Singapore and Malaysia. We must prepare to handle regional commerce, develop our skilled labor resources, and enforce our new labor laws and commercial legal codes. Beyond ASEAN, we hope to become a member of the World Trade Organization, where the requirements are even more sophisticated.

Q.: ADRA's involved with assisting Laos in the challenges you face with clean water. Talk about the water situation in Laos.

A.: Let me take this opportunity to thank ADRA for its development assistance, especially that focused on the rural clean water program. We know that improvements to clean water supply and sanitation are essential for reducing disease and death from diarrhoeal diseases, cholera and typhoid. Access to clean water also improves a family's well- being and relieves children's work loads, so that they can go to school.

Since the beginning of the decade, international assistance like ADRA's has helped my government increase clean water supply to about one-half of the population. However, this still leaves a huge challenge to get clean, safe drinkable water to the other half, who are among the poorest and least accessible of our people.

To do this more systematically and efficiently, we have set up the National Committee for Clean Water, coordinated by the Ministry of Public Health. If other non-governmental agencies would like to assist us on this matter, please contact this Committee.

Q.: It'd be wonderful to have someone to help you. And one of the agencies doing that, we try to be sensitive to your needs, your culture. Do you ever experience challenges that happen as a result of agencies wanting to help you?

A.: Our policy is welcome technical and financial assistance for development from all organizations. For the cooperation to be successful, we request foreign friends to respect our internal affairs and to understand the reality of the country--especially given the wide cultural variations among our multi-ethnic peoples. In the past many projects failed because they lacked the participation of the intended recipients and were planned and managed by outsiders.

Q.: You are situated geographically in a very, very interesting position. You're a buffer in a way. How do you maintain independence and at the same time neutrality with your neighbors?

A.: Yes, during the Cold War era, we were often labeled the "buffer state." In those days, many small emerging nation states had to bend with the competing winds of the great powers, while trying to maintain open friendly relations with all countries. Since the foundation of our Republic, our foreign policy has been based upon the principle of peaceful coexistence. This means we respect the independence of other nations, and do not interfere in their internal affairs. This policy has served us well, as today we have friendly, respectful relations with all our neighbors, who politically are quite diverse.

Q.: There are some countries, and Laos is among them, who get a lot of criticism from environmentalists. How so you answer them?

A.: Laos is rich in natural resources: hardwood forests, wildlife, minerals and a vast network of rivers. As the owners of our country, we--more than anyone else-- are very proud of these riches and care about how they are used and protected. So, I would not say the Lao Government is at odds with the goals of the environmentalists. For example, in the past we recognized that we had to slow down our one percent deforestation rate and increase reforestation programs. Otherwise, our nation would lose about 1 million acres of forest each year, which in turn could destroy valuable watersheds and soil quality, and create a climatic warming.

My government actively sought international assistance to find alternatives for shifting cultivation. These farmers, the majority of whom are poor, grow a labor intensive, low yielding upland rice. To force them to stop shifting cultivation without offering other solutions would increase their poverty and be a human rights violation. Since the late 1980's, much assistance has gone into helping these farmers voluntarily open up new fields in lowland areas, set up irrigation schemes, and introduced them to less damaging and higher valued crops, such as setting up teak tree plantations.

At the same time, the government lowered commercial logging quotas, and set up logging laws coupled with enforcement mechanisms. Finally, with assistance form several environmental groups, the Department of Forestry has created protected forest areas in our most precious wildlife areas.

It is true there has been international concern about hydropower development which my government feels is crucial for increasing our revenues. After long studies, my government decided that hydropower could provide long term revenues for our poor country. It is a readily available resource, there is an export demand by our neighboring countries, and the production of electricity fit our timely needs. Thus, we initiated joint ventures with overseas companies to develop export electricity at about forty sites.

Eventually, the foreign earnings from such electricity exports should help us to finance more of our rural development programs, instead of relying almost exclusively on foreign aid. My government recognizes that people in these hydropower dam areas deserve to receive direct benefits from these ventures. That is why we are making local electricity supply a stronger point in future efforts. In the end, we see hydropower as a necessary trade off: the flooding of some forested areas in exchange for an increase in national economic revenues and independence.

Q.: Mr. Ambassador, thank you for sharing some of your time today. I have just one more question: Laos, as we know it today, is only about forty years old. Where do you see it in the year 2025?

A.: Allow me to correct one point. As a country, Laos is one of the oldest in the world. As a modern nation state, however, we have had real and full independence for only twenty-two years. So, to accurately predict thirty years ahead is difficult, but I will try my best. Above all else, let me repeat that the fundamental condition for my country to continue improving its well-being is peace and stability. After that, I would say several factors should help us in the future.

First, we are in the crossroads of the fast-growing Greater Mekong Subregion. This should open up new trade and export opportunities for us. Second, as I have said before, we have rich untapped natural resources, which we need to exploit carefully and sustainably. Third, if we continue to place high emphasis on social development -- education, health, culture -- all of our people can develop into a strong skilled work force.

That should lessen the socio-economic gaps. If all of those factors come together, my country should be able to catch up economically and socially with our neighboring countries.

Once again, thank you for your interest in our country. I hope this discussion is helpful for your viewers. If they would like further information, please feel free to contact our Embassy in Washington, DC. Thank you.

____________

To facilitate visits to the Lao PDR by foreigners including officials, business people, visitors and tourists from countries which do not have Lao Embassy or Consulate General, beginning June 1, 1997, entry visas can be obtained at Vientiane International Airport and the Mekong Bridge International Border check point (Vientiane).

The Visa applicants are required to present the following documents to the Immigration Officers at the entry port:

• a return air ticket or visa to enter another country after leaving the Lao PDR;
• correspondence verifying sponsorship by a local person;
• a letter confirming accommodation in the Lao PDR; and
• a bank statement or a life insurance certificate.

For travelers from countries where the Lao PDR has its Embassy or Consulate General, in emergency cases such as illness or death of parents or relatives, entry visa on arrival can also be granted. In this case, visitors must provide by fax a copy of their passport and driver license(or social security number) to the Embassy prior to the departure date.

This visa issued upon arrival is good for a 15-day stay in the Lao PDR. It can be extended one time , if necessary. The visa fee on arrival is US$50 per individual.

For more information, please contact the Visa Section of our Embassy in Washington, D.C. Tel.: (202) 667-0076 (9:00am-12:00noon) or Fax.(202) 332-4923

Washington, D.C., June 1, 1997

Visa section

Copyright © 1997 by the Lao Embassy, Washington D.C. All Rights Reserved.