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

November - December, 1997

CONTENTS

1. 22nd Anniversary of the Lao PDR
2. President of the Philippines Visits Laos
3. U.S. Deputy Secretary of State Visits
4. U.S.MIA Remains Returned
5. New Zealand Foreign Ministers Visits Laos
6. The Seventh Francophonie Summit Meeting
7. Agreement on Nam Ngum 3 Signed
8. Lao Roast Coffee for Export
9. United Kingdom to Boost Lao Businesses
10. UNDP to Support Management of Mineral Resources
11. Japan Grants to Build Afforestation Center
12. Se Piane and Se Nam Noi Power Projects in Progress
13. Norwegian Investment in Laos
14. Land Laws Essential
15. Funding for Tax and Customs Administration Reform
16. Main City Roads to be Asphalted Next Year
17. Canadians Looking for Investment Opportunities
18. Lao-U.S Joint Venture to Boost Agricultural Production
19. ADB Assists Thailand-Laos-China Road Study
20. European Union Grants GSP
21. Third Mekong Bridge on Good Tracks
22. Seminar on Drug Control Held
23. Drug Control Project Agreements Signed
24. Project to Help Children in Trouble
25. Lao Doctors in France Donate Medical Equipment
26. Mekong Institute Tours Laos
27. 1997 NGO Directory Handed Over
28. Ethnic Groups in Laos
29. MOU Signed for Prospect of a Hotel on Had Donechanh
30. Preservation of Luang Phrabang as a World Heritage
31. Laos is Your New Love

December 2 is a day of great significance in the history of Laos because it is a victorious day for the country's very long and difficult liberation process with great dedication from people of all ethnic groups throughout the country. It is the day to open a new era of real peace, independence, democracy, unity and prosperity for the country and its people.

Since the first celebration of December 2,1975, celebrations have varied depending on the country's situation at the time. The celebration has been organized every year, however, it has been more elaborate every five years. Giant celebration were performed in 1975, 1980 and 1985 with several activities, mainly parades showing the achievements of each sector for-one and five-year periods. In those celebrations, people in colorful costumes gathered at That Luang Esplanade to cheer the parades on. Since 1990, the celebrations have become more economic. The government has decided to reduce the funds used for celebration arrangements for development of other sectors. It is in this vain that this year's celebration consisted of lectures and meetings in order to remind the entire population of the day and its history without spending substantial amounts of money.

On November 30, some 150 overseas Lao around Washington D.C. got together at the Lao Embassy to celebrate this of National Day. " 22 years old are not long for the whole history of a country. However, it was a longest period of time that our country enjoyed political stability and unity of all our multi-ethnic people. This constitutes fundamental conditionals for the socio-economic development, especially for the implementation of the government development strategy to rid our country of the state of under-development by the year 2020 ", stated H.E. Hiem Phommachanh in his welcome remarks. Photos on the achievements in various fields were exhibited for the occasion.

President Fidel Ramos of the Philippines made a State Visit to the Lao PDR in October, at the invitation of President Nouhak Phoumsavanh. It was the first State Visit ever by a Philippine President to Laos. The visit manifests the policy of the two countries, now both members of the Association of Southeast Asian Nations, to strengthen their ties with each other.

The two heads of the States held the meeting to discuss the technical cooperation in various fields. After the discussion, six agreements were signed. Among them, the first two agreements involved a memorandum of agreement on cooperation against illicit trafficking of narcotic drugs and psychotropic substances and abuses thereof, and an exchange of notes concerning the amendment to the agreement on the exemption of visas for holders of diplomatic passports.

The third agreement is dealing with cultural cooperation.The fourth document was a memorandum of understanding on technical collaboration for the malaria control program and the fifth agreement deals with cooperation on public health.

The business conference was also held during the visit of the President Ramos. The business meeting was marked by the signing of the sixth agreement concerning the promotion of trade and investment cooperation between both the public and private sectors of the two countries. There are plenty of possibilities and opportunities for cooperation between the two private sectors in forging joint ventures, partnerships and business tie-ups. The agreement represented a milestone for the better economic trade and investment cooperation between the two countries.

The US. Deputy Secretary of State, Strobe Talbott visited Laos from November 9 to 10, 1997, on a U.S. presidential mission. The visit was the first highest ranking U.S. State Department official to Laos, since the foundation of the Lao People's Democratic Republic.This visit made a contribution to the developing tie of relations and cooperation between Laos and the United States.

The Deputy Secretary's visit was to show the U.S.support and appreciation for the improving bilateral relations between the two countries, in particular for the cooperation by the government of Laos in helping the U.S. to recover the remain of the U.S. serviceman as missing in action (MIA ) during the Vietnam War. The visit also supports the counter narcotics efforts made by the Lao side. The MFN for Laos is also gained support from the U.S. delegation.

The Deputy Secretary visited Xiengkhouang province, the province which was totally destroyed during the War. The Deputy Secretary was reported by to the Mines Advisory Group, a British Non-Government Organization that, the United States dropped about 85 million small bombs on Laos between 1964 and 1973, 10 - 30 percent of which failed to explode. Tens of thousands of people, many of them children have died from the tennis-ball sized bombs scattered about the country, the United Nations Development Program estimates.The Deputy Secretary expressed the support of the US for the programs to clear unexploded ordnance from the land in order to return it to productive use.

The Lao People's Democratic Republic returned to the United States the possible remains of a U.S. serviceman missing in Laos during the Vietnam War. The remains were presented to U.S. Ambassador to Laos at a formal ceremony in Vientiane. The presentation represents the first success of a program established in August 1997, in which the Lao POW/MIA investigation teams unilaterally investigate cases the joint U.S.-Lao investigative teams were not able to solve.

The remain and objects were recovered by the Lao investigation team while conducting an investigation on the case No.1685, at Kham district, Xiengkhouang province. The investigation although undertaken in very difficult conditions, both geographic and atmospheric, has nevertheless given satisfactory results. The remains are believed to be those of a U.S. Air Force AIE pilot who was lost over Laos on December 24, 1970.

The U.S. Government, through its Embassy in Vientiane expressed her deep appreciation for the Lao humanitarian commitment in helping family members come to closure over the loss of their loved ones. And it is hopeful that this cooperation will bring increased result in the future. Achieving the fullest possible accounting for the 454 MIAs is the highest national priority of the United State in Laos.

In October Minister of Foreign Affairs and Trade of New Zealand Don McKinnon paid an official visit to Laos. This visit was a historical milestone for the future relations of friendship and cooperation between the two countries.

New Zealand is one of the countries that always gives support and assistance to the Lao PDR. So far, New Zealand has provided Laos with aid worth NZ.$ 500,000 in 1995-96 fiscal year, and NZ.$750,000 in 1996-97. For the 1997-98 fiscal year, it is expected that New Zealand will increase its support to NZ.$ 1 million. In 1996-97, New Zealand helped Laos in a number of humanitarian areas. Its aid for the unexploded ordnance (UXO) program totaled NZ.$ 125,000. In addition, it provided aid worth NZ.$ 80,000, to the integrated rural development program; through the United Nations Development Program (UNDP), NZ.$ 100,000 to consultancy work in forestry law making, NZ.$ 400,000 for human resource development, particularly in the area of English language training and NZ.$10,000 for retired public servants.

During the visit, Minister of Foreign Affairs and Trade Don McKinnon meet with Lao Foreign Minister Somsavat Lengsavad and presented grants supporting infant health and veterinary services for villages in Sekong province: to assist in reducing infant mortality (US$2,729) by training trainers and 20 traditional birth attendants and in reducing infectious animal diseases (US$5,742) by providing veterinary services including the vaccination of 76,000 animals

These grants follow-up on last year's New Zealand Embassy grant (US$16,149) to finance UNDP's Revolving Loan Funds program for women's income generating activities in Saysomboun Special zone. With these funds, village women from the Hmong and Kamu ethnic groups were able to expand their income-generating activities into embroidery, vegetable growing and the raising of small animals. This grant both empowered village women and provided market opportunities for sustainable development and poverty eradication.

The Minister also visited UXO LAO office. UXO LAO, the National Unexploded Ordnance Program, has an ambitious agenda this year to build capacity of local people so the country can rid itself of the unexploded ordnance left strewn in at least 12 of 17 provinces from aerial bombardments during the Indochina War (1964-1973). An estimated one third of the 2 million tones of bombs and anti-personnel bomblets dropped on Laos did not explode.

New Zealand is among the countries which have supported UXO LAO from its beginning, by contributions to a special Trust Fund established by the Government of the Lao PDR, UNDP, and UNICEF in 1995. New Zealand has contributed a total of NZ $649,000 to this work, and sending two army officers, now working as part of an International team assisting and training Lao staff in all aspects of running the program.

The Seventh Summit meeting of French speaking countries was held in Hanoi (Vietnam) for the first time on the Asian continent. Fifty- one delegations from countries and entities completely or partially speaking French, including 18 heads of state and 15 chiefs of government, attended the three-day meeting

An important reform was introduced in the structure of the Organization to make it a strong one before entering the 21^st century. The Permanent Council Francophonie became a kind of executive board composed of representatives of heads of state of all member countries, led by a general administrator, Belgian Roger Dehaebe. The meeting also gave Francophonie a new Charter. Former UN secretary general Boutros Boutros-Ghaly was appointed the secretary general of the French speaking Organization.

Two more countries were admitted to the club: Moldavia and Sao Tome and Principe while three countries became observers: Poland, Albania and Macedonia. The meeting adopted an action plan and the Declaration of Hanoi which put the stress on economic cooperation among member countries as the Francophone space, is made up of a huge market of half a billion people. Economic ministers will work out an action plan involving public and private sectors as well as market and social economies. Human resources development will be boosted to give more young people professional and technical training. French language presence on the information highways will be enhanced. Financial efforts will be exerted to develop French language in university, commercial and cultural contents while trying not to widen the gap between North and South countries In the age of globalisation, Francophone countries set themselves the aim of encouraging diversity while preserving each country's culture, heritage and language.

As a full member of the Francophonie movement, Laos supports the ideas and initiatives of the summit. It has development programs for French language teaching at the National University and is preparing to set up of a French Institute for Tropical Medicine in the country.

To realize the Summit's will to make Francophonie a strong, respected, credible and active institution in the international arena, President Nouhak Phoumsavanh in his speech urged the French speaking community, despite its cultural, economic and political diversity, to agree on ways and means to meet the challenges of today and tomorrow, for true cooperation. Laos, as it was in the past, is at present also ready to contribute its utmost.

The government and MDX LAO Co signed an agreement to develop the Nam Ngum 3 hydropower project., situated in the middle of the Nam Ngum river, between Mount Soung Neua and the Nam Pha River near Long Cheng village, in Saysomboune Special Zone. It is 254 Km north of Vientiane capital by road and 130 Km by air.

The Nam Ngum 3 hydropower station will have an installed capacity of 460 MW and generate 2,160 gigawatts/hour. Some of the energy produced will be exported to Thailand and some will use for domestic consumption. The exported electricity will be transmitted on 148 Km of transmission lines.

Nam Ngum 3 is a joint venture between the Lao government, with 45 per cent, and MDX Lao, with 55 per cent. The Lao government signed a memorandum of understanding with MDX Lao to develop the project in November 1995. In the same year, MDX Lao contracted the Snowy Mountain Engineering Corporation (SMEC) and the Southeast Asia Technology Co (SEATEC) of Thailand to conduct the feasibility study for the project.

Following the completion of the field study, the dam site was fixed, the initial design completed and the project will cost US$ 600 million. Some infrastructure construction, including road access, will commence at the end of this year.

In 1995, the Lao PDR. exported 9,000 tons of raw coffee to the international market, in 1996, 10,000 tons and in 1997, the expected exports should total 13,000 tons according to the Lao Coffee Association. The importing countries include France, Belgium, Switzerland, Italy and Poland.

Lao Commodities Export Co.Ltd (LACOMEX) which was set up in 1994 is a coffee trader and roaster, as well as having the largest coffee plantations in the country. In 1995, this company exported 1,200 tons of raw coffee to the international market, in 1996 1,600 tons, and they expect to reach 2,900 tons in 1997. Since 1996, the company's coffee plantations have covered 150 ha. which they intend to increase up to 500 ha. by the year 2000. In March 1997, this company built a coffee roasting factory at Km 24 on the road between Pakse and Paksong districts in Champassack province. The company's coffee brand "Pak Song" is available in 250 gram bag of either coffee beans or ground coffee. They are now being tested on the market especially in Vientiane municipality where they are served in luxury hotels and restaurants, and on sale in duty free shops and mini-market. The company's arabica is a very scarce and high-quality product. The quality processing is conducted from the selection of the ripest fruit on the company's Bolovens coffee plantations. Laos exports only raw coffee, because making instant coffee powder like "Nescafe" requires at least US$ 120 million but to roast coffee requires a much smaller investment.

Lao coffee is slowly making a name for itself on the international market as people begin to find out about it and discover that its quality ranks in the front line with Colombian and Brazilian coffees. Lao coffee from the Bolovens plateau, also called Paksong coffee, has long been famous within Laos for its delicious and strong taste and now that the international community has begun to experience its qualities the future looks fairly bright for this brew.

An Operating Condition Agreement between the government of the Lao PDR and the Commonwealth Development Corporation (CDC), United Kingdom, was signed in October in Vientiane.

The United Kingdom and Laos have had a good relationship for a long time and this signed agreement is a major first step to enhance foreign investment for both state and private investors in the Laos. CDC's investment program will focus on the private sector and special attention will be given to responsible social environmental practices, in accordance with Lao and British government policy. Sectors of interest to CDC in Laos include forestry, rubber, tourism, financial services, cement and processing.

CDC is a statutory corporation established in 1948 by Act of Parliament of the United Kingdom. It is a development finance institution. Its sole purpose is to assist overseas countries in the development of their economies, and is thus readily distinguishable from a commercial bank. CDC achieves this purpose by identifying. Promoting and investing in financially viable development projects mainly in the private but also in the public sector, by way of medium and long term loans, and direct investment in equity.

An agreement to strengthen the capacity of the Department of Geology and Mines of the Ministry of Industry and Handicrafts to effectively regulate the development of the country's mineral resources was signed. This is the third project supporting the development of the mineral sector funded by the United Nations Development Program (UNDP).

Laos' rich natural resources include mineral deposits of gold, copper, coal, tin, and gemstones. Non-metallic deposits in the country are limestone, anthracite, gypsum, construction aggregate and lignite. Still, mining potential in Laos remains largely untapped. The government recently passed a mining law reflecting its commitment to develop this sector. The new UNDP project will focus on environmental regulation, and policy development objectives. It will help draft and implement environment and health and safety regulations in the mining sector. This will follow up on initiatives begun in earlier UNDP projects which included taking officials on study tour to Canada to learn about environmental management and health and safety regulations in the mining industry.

Japanese International Cooperation Agency (JICA) and the Forestry Department, Ministry of Agriculture and Forestry, in October signed an agreement to construct an Afforestation Center.

The government wants to use the center for technical training and assistance to promote residents' participation in afforestation activities initially in Somboun Sub-District, Vang Vieng District of Vientiane Province. The Japanese government entrusted the study of the viability of the project to JICA. JICA then conducted a basic design study and dispatched a study team. The project will involve the construction of an afforestation center and the provision of related equipment for the extension of afforestation activities. The Japanese government dispatched the team from an environmental point of view and taking into account the conservation of the world's environment.

The construction of hydropower stations on Se Pian and Se Nam Noi rivers in Champassack province, starting in mid-1996 is now in progress.

The joint venture has been formed among Dong-Ah of the Republic of Korea with 45 per cent share in the venture, Thai partner holding 20 per cent and Lao partner holding 35 per cent..This US$ 688-million project, has so far cut a 97 Km. access road and built 55 buildings of living complexes In the coming stages, the contractor will build three main hydropower stations : the Se Nam Noi, the Se Pian, the Houai Markchap power houses.

Upon completion expected in 2002, these three stations will have a total capacity of 390 megawatts. The Lao government has inked a deal with the Thai government for exporting 360 megawatts generated by the stations by the year 2004.

Norwegian development assistance to Laos, through the aid agency Norway's Development Cooperation Agency (NORAD), is growing and growing fast.

Much of the funds are being channeled through key projects of the United Nations Development Program (UNDP) that aim for sustainable development in Laos. Environmental management and the drafting of sound environmental legislation is one area of NORAD support. Other environmental initiatives NORAD is contributing include wastewater testing and solid waste management through a UNDP project to set up efficient and safe garbage disposal systems in four provincial capitals Luang Prabang, Pakse, Thakhek, Savannakhet and the nation's capital, Vientiane.

Raising awareness of the role women play in Lao PDR and increasing gender sensitivity among decision makers is the focus of another UNDP project with NORAD funding. With the Lao Women's Union, it will set up gender resource and information centres in Vientiane and three provincial towns-Sayaboury, Xieng Khouang and Savannakhet. This is a key to the advancement of women in the country, because although women have the legal right to take part in all state economic and social development of the country, women are in fact generally poorer, less educated and have fewer opportunities than men

Building capacity within government is another significant area of NORAD support. A current project with the National Assembly is helping to build this institution's potential to perform its constitutional functions. It is providing members with advice and seminars on parliamentary practice and legislative process and with foreign language training. Strengthening the abilities of the provincial offices of the National Assembly is another aim of NORAD support.

Before issuing land titling certificates, it is needed to have a basic law to ensure that activities are effective. Protecting land title is the basic premise which will provide the foundation for other laws, on business, mortgages, finance, investment, land rental, the sale of land and how land is used. Land titling and land transfer were the main goals for ensuring land be used efficiently.

The land titling project began in June this year and will run for seven years. In many countries, when the country moved from a central economy to an open market economy, the legal infrastructure was still low. Initially, a lot of time is needed to create laws and structural rules concerning the environment, traditions, history, politics and society.

The land management system has special characteristics to match the position of each country. The step-by step procedure is the best way, as the land is the wealth of the nation, and provides the basic way of life for urban and rural people. The state would protect the land and forests with the law. The government had to make sure the land law did not conflict with the investment law or other national and international laws.

Laos is an agricultural country. The population density is 19 inhabitants per square kilometer and about 35 per cent of the land is suitable for agriculture and forests. The government had formulated rules on land management and allocation, to eliminate slash and burn agriculture, and encourage people to take up to fixed occupations.

So far, Vientiane municipality, Savannakhet and Champassak provinces have provided the best examples of how land management and allocation can be done successfully. Models have been created to transfer the experiences to other regions, as far as applicable.

But despite achievements in allocating land, many provinces still lack human resources and skilled public servants in the field. The capabilities of both the state and private sector are still too low, as are materials and funds. The government would allocate land to the many ethnic groups in the Lao population for effective management and use under the guidance of macro-level management bodies.

The UNDP and IMF-supported project to Strengthen Fiscal Management received and additional grant of US.$ 343,000 from Norway's Development Cooperation Agency (NORAD) in October. The money will be used to improve tax and customs administration reform work in Laos.

The project is crucial for Laos because tax and customs is important in the long run to ensure that the Lao government has access to enough revenue to finance its own development plans and activities. In addition, the project is very important in light of Laos' recent entry into ASEAN, because ASEAN brings with its very clear requirements in terms of trade, tax and customs obligations. These are all encapsulated into the ASEAN Free Trade Area (AFTA) trade agreement which is signed and agreed to by all the ASEAN countries states. The Lao government will be able to be in full compliance with the requirement of AFTA.

NORAD is a key partner for the Lao government and it is a partner which has demonstrated its commitment to help the government to improve its own administration and governance skills. This project means that the Customs and Tax offices are much more capable of meeting their requirements over the next three years. The project's current phase is focused on maximizing government revenue by improving the administration of tax and customs . In the past, the project helped to support Laos' integration into AFTA which will have a major impact on customs revenue as tariffs are reduced. It also helped establish a Large Taxpayers Unit to process tax collections from biggest taxpayers.

Other activities have included conducting the AFTA workshop for customs officials, a Value Added Tax (VAT) seminar for government officials and business community and supporting the Lao government's attendance at the World Customs Organization Meeting.

With renovations in full swing, four of the six major roads in the capital will be paved by next year's dry season. According to the project, road No. 3, 4, 5 and 6 will be paved, while the design process for roads No.1 and 2 has just been finished.

The estimated cost for the four roads is US.$ 30 million. The road contractors are now concentrating on laying culverts. Then they will focus on upgrading the surface of the roads and eventually the paving. Roadside drains are being laid without many problems because most of the obstacles, including electricity pillions, houses and shops, have been moved with the cooperation and support of local residents and administrations. However, there are difficulties at some sites because of underground distribution pipes for the water supply system.

Road No. 3 is divided into two stretches, the first one 3.85 Km. long and running from Patousay to the That Luang swamp and Nonh Khor village. The second stretch runs from Mahosot Hospital, passing the Nasay junction and running on to the Phonkheng junction, a total distance of 3.76 Km.

Road No.4 covers two roads, Khouvieng and Fa Ngoum. A 5.1 Km. stretch runs from the Khoua Khao junction on Khouvieng Road, through the Morning Market on to the traffic light at Sihom crossroads to the Pakpasak Technical School.

On Fa Ngoum Quay, its starts at the junction of Fa Ngoum and the short road off the Pakpasak Technical School, running along the Mekong and off to the That Khao traffic light, on through Phasay village to Khouvieng road, a total distance of 3.4 Km.

The 10.9 Km. Road No. 5 runs from the junction of Hong Saeng Bridge through Done Koi village to Km-9 on the way to Thadeua. Road No. 6 is divided into two stretches. The first stretch, running for 3.43 Km. goes from the Phonthanh junction near the Corrugated Roofing Sheet Factory through the Phonsay junction next to the Ministry for foreign Affairs. The second stretch starts at the Phonh Sinuane junction and runs through Dong Palane to Sailom, for a distance of 2.5 Km.

A Canadian trade and investment commission made up of 2O Canadian Companies' representatives met and discussed investment opportunities with Lao businessmen, trade and investment officials in Vientiane municipality in October.

At the meeting, The Canadians were interested in and focused on eight kinds of businesses and investments, among them are airline transportation, geomatics, energy and consultants, financial services, engineering services, environment, water and wastewater, treatment, agri-food, agricultural promotion, telecommunication and import promotion.

During the meeting, the investment situation in Laos was presented along with Lao rules and laws of foreign investment and incited the Canadian businessmen to invest in the country. This Canadian group decided to come to Laos because this sub-region is going to become a major market, and Lao is going to be in the middle of that market. So they wanted to come and bring their companies to Laos and see the opportunities which exist in this market and how it relates to the Thai, Cambodian and Vietnamese markets.

There were four Canadian companies interested in airline transportation: ADAT Sale (Thailand) Co., Ltd, Canadian Airline International, TNT Express' World Wide and the United Parcel Service, Canada Ltd. Interested in Geomatics was the Canadian Geomatic Solutions Ltd. Consultants and energy companies included Nova Gas International Ltd, Sage Consultants, Pac Rim International (Thailand) Co., Ltd, and Quality Log Homes. The Royal Bank of Canada was interested in the field of financial services. The four companies interested in engineering services, environment and water & wastewater treatment were: Dessau International, EDM International Inc, Microsep International Thailand Ltd, and the UGC Engineering Co., Ltd. The companies interested in agri-food and agriculture promotion were: McCain International, North South Trade & Investment, and the Norwest Labs. SR Telecom Inc. was interested in the field of communication and lastly, interested in import promotion was the Bata Shoe Co. of Thailand PCL and Colco International.

The Lao-American Agricultural Promotion Company was inaugurated in October, in Vientiane.

The Lao-American Agricultural Promotion Company is a US$ 920,000 joint venture between Lao and American businessmen, in which the Lao side holds 30 per cent of the shares while the rest is held by the Americans. With a concession of 20 years, the company will do business particularly in agriculture and animal raising for domestic supply and export.

The company's area of operations covers 30,000 ha. in central Laos, including Vientiane municipality, Vientiane and Borikhamsay provinces. Activities in Borikhamsay province will be focused on fish culture, chicken raising, mushroom growing and provision of materials for agro-production in support of market-oriented production. In Vientiane province, fish culture, and demonstration sites for commercial agro-production will be set up. At present, the company has started clearing land to be used for fish raising at Nam Ang village, Thourakhom district, and Houai Khong village, Keo-oudom district, Vientiane province.

The road improvement project covering the Chiang Rai to Kunming road via Laos held its first Project Steering Committee Meeting in Vientiane in October.

The delegates and observers reviewed the technical assistance consultant's Inspection Report. Under a technical assistance contract with the Asian Development Bank (ADB) executed on July 10, 1997, a consulting team made up of their staff and commenced field services on July 28, 1997.

The engineers summarized the work activities including site visits along the entire road corridor from Chiang Rai to Kunming via Laos. According to the Inception Report, preliminary reconnaissance of the project road in Laos was undertaken by the highway engineer. The 249 Km. length of project road through Laos was segmented into three distinct sections as Boten to Luang Namtha (Km-831 to Km-887), Luang Namtha to Ban Nam Ngeun (Km-887 to Km-967), and Ban Nam Ngeun to Houei Sai (Km-967 to Km-1080. The Committee decided to hold its second meeting in Chiang Rai, Thailand in December 1997, and the third meeting will be held in Kunming, China in March 1998.

The European Union (EU) met, with Lao officials to discuss the derogation from the rule of origin of the Generalized System of Preferences (GSP) and signed two more financing agreements.

The Lao government was informed about the EU's decision to grant a derogation from the rule of origin of the GSP for certain Lao textiles exported to the EU. The regulation came into effect on September 11 of this year and the derogation will apply for the period from 1 August 1997 until 31 December 1998.

According to the information from the EU Mission, the EU's GSP is a unilateral commercial policy tool aimed at development. It offers developing countries a tariff lower than normal customs tariff rate and allows the Least Developed Countries (LDCs) to export industrial and agricultural products to the EU at a zero tariff rate. In order to receive such preferences, exporters must comply with the GSP's rules of origin.

The EU launched two more new projects with the signing of the financing agreements on October 13. The projects are aimed at poverty alleviation in Laos. The first focuses on the strengthening of veterinary services and extension activities in order to reduce animal diseases, increase economic returns from livestock and therefore to improve people's living conditions in the provinces of Vientiane, Luang phrabang and Luang Namtha. It is a six-year project worth ECU 5.7 million (approximately US$ 6.3 million ). The second project focuses on rural development and environmental protection compatible with development guidelines for sustainable forest management in target villages. This project is a seven-year project in Phongsaly worth ECU 9.5 million ( approximately US$ 10.5 million).

Agreed minutes on the special assistance for project formulation concerning the bridge to be built across the Mekong river, from Savannakhet to Moukdaharn in Thailand were signed at the Ministry of Communication, Transport, Post and Construction (MCTPC) on October 17. Representatives of MCTPC and Japan's Overseas Economic Cooperation Fund (OECF) signed the agreement in preparation for an OECF loan. The bridge will cost US.$ 60 million. It will be a 1,500 m. long and 12 m. wide structure.

The Lao PDR's focus on finding methods and resources to reduce drug supply and demand has seen quite satisfactory progress.

At the seminar on drug supervision and control, for the judges, prosecutors, and police officers, the Chairman of the Lao National Commission for drug Control and Supervision (LCDC), H.E. Soubanh Srithirath, stated that the Lao government was putting efforts into drug suppression. On June 8, 1996, the Lao President enacted the amended version of Article 135 of the criminal law, strengthening the law on drug supervision and control. It curbed the use of Lao territory as a drug trafficking route.

In the past, Article 135 was criticized for setting too light a punishment for drug-related crimes, thus making Laos a route for drug trafficking. In 1992, the Lao PDR established an office for drug supervision and control and in 1997 two drug control units were set up in the provinces of Savannakhet and Bokeo. In 1998 the units will be expanded to the northern provinces of Phongsaly, Sayaboury, Luang phrabang and Xieng khouang, and the southernmost province of Champassak. The plan will be eventually cover the whole country.

The seminar, which was held under the auspices of the United Nations Drug Control Program (UNDCP), provided participants with information on narcotics supervision and control useful for prosecution by law enforcement officers.

Two project agreements concerning drugs were signed on October between President of the Lao National Commission for Drug Control and Supervision (LCDC) and the Representative of the United Nations International Drug Control Program (UNDCP).

The first Project concerns the reduction of illicit drug use in the highland of the Laos. The purpose of this project is to contribute to the national plan for the reduction of drug abuse, and related social problems, by providing assistance in selected highland communities. This include health development, food security, income generation and quality of life improvements. This project is one of the initiatives developed under the framework of a Sub- regional Action Plan signed between Cambodia, China, Laos, Myanmar, Thailand, Vietnam, and UNDCP. The project will be implemented by the Lao government, UNDCP and Save Children Australia (SCA). SCA had already been working successfully for a number of years in the province of Sayaboury. The duration of the project is 27 months (October 1997 - December 1999) and UNDCP contributed US$135,000 for activities in Laos.

The second project concerns the Xiengkhouang Highland Development Program (Preparatory Phase for Follow-up Program ). The Xiengkhounng highland development program was launched in 1992 with an IFAD loan of US$ 5,300,000 and a UNDCP grant of US$ 6,000,000. It is implemented by the Lao Government and the United Nations Office of Project Services (OPS).

The aim of the program is to initiate a process of sustainable rural development and gradual elimination of the opium poppy cultivation. The program has achieved significant outputs in agriculture, health, water and sanitation, education, infrastructure, micro-credit, etc...,and has established working methods suited to the area including labour-based road construction. Community development has received due attention and thus group formation and group promotion, revolving systems etc... have been introduced in Nonghet and in the province. As a result of the integrated poverty alleviation process thus initiated, opium production and abuse started to decline in Xiengkhuang province.

The present US$ 190,000 extension, funded by UNDCP with a contribution from Sweden, will allow the Xiengkhuang highland development program to continue until June 1998. This extension will also serve as a preparatory phase for a follow-up IFAD loan for Agricultural Development in Xieng khouang province.

The project agreement on support and protection of children in especially difficult circumstances was signed in Vientiane.

The objective of the project is to collect data, analyze the problems, and research methods for helping Lao children in especially difficult circumstances. This includes delinquents, children neglected by their parents, thieves, those involved in glue sniffing or other drug abuse, gangsters, prostitutes and those caught up in child labor.The project will focus on solving the problem in Vientiane municipality. Sisattanak town will be the experimental point where this project will participate alongside many groups, such as the youth union, the Lao Women's Union, local protection forces, and local administrations, right down to village level. The project will last for eight months and cost of US.$ 42,000, provided by the three organizations namely the United Nations International Children's Education Fund (UNICEF), the Church World Service and Save the Children Fund (UK). The Lao government will provide staff.

The Association of Lao Doctors in France (AMLF) donated medicines and medical equipment to three hospitals in Laos worth a total of US$ 46,450. The AMLF presented to Mahosot Hospital equipment worth US$ 18,614. The rest of the equipment will go to provincial hospitals in Luang phrabang and Champassack later on.

The donation includes a heart monitor, gynaecology equipment, respiratory equipment, microscope, acupuncture needles and medicines. This is the fifth donation in a three year program spanning from 1997 to 1999 which was signed on November 6, 1996 between AMLF and the Ministry of Public Health. AMLF members come to Laos twice a year. In addition to the equipment, the purpose of the trip is to support Lao doctors, exchange technical information and train Lao practicians. AMLF members, who are Lao doctors living in France but also French practicians interested in Laos, stay there for two weeks each time to help treat Lao patients. The first mission by AMLF members to Laos was conducted in April 1997.

As a part of a Mekong Institute course on economic development and reform of state owned enterprises, New Zealand trainers and course participants from Khon Kaen University made a study tour to Laos.

This particular Mekong Institute course had 30 participants from the Greater Mekong Sub-region (GMS) countries, with five trainees from each of the following countries: Myanmar, Cambodia, Vietnam, Thailand, Laos and China. All 30 people came to Laos for a three-day study tour, and one of the main purposes is to give them the opportunity to see economic development in Laos.

While in Vientiane, they met with the high officials from the State Planning Committee to discuss economic development situations, and the National Development Plan in Laos. They talked with officials from the Lao Women's Union about Lao women's role in economic development and cooperation with the non-governmental organizations in economic development.

The Mekong Institute was built with funds from the governments of Thailand and New Zealand. The Institute expects to conduct five courses a year. When people come from these countries to attend the course, all of their fees are paid by the Government of New Zealand which contributes US.$ 12,000 per year to the program. The government of New Zealand will support the Institute until the year 2000..

The Institute expects the participants to learn something about economic and trade development as well as state-owned enterprise reform. Moreover, because the course participants stayed together for 10 week on the same residential program, they also make friends from other GMS countries and this provides them with a possibility for experience, and cross- cultural exchanges.

Several Non Government Organization (NGO) representatives on October handed over the1997 directory of NGOs in the Lao PDR to the Lao government.

The NGOs in the Lao PDR published the directory to improve coordination and co-operation, and to inform anyone interested about the work that NGOs do. In addition to addresses and contact information, the directory provides information on the nature of each Organization, the project that it is currently implementing, and the sectors and locations of these projects.

The 1997 directory will be an important tool for furthering the aims of the Government and the people of the Laos. The International NGOs are working alongside the Government of the Lao PDR and mass organizations on all levels for the common goals of social justice, basic social service and sustainable development. Government counterparts and NGOs are actively engaged in improving the quality of life for the people of the Laos.

According to the directory, the combined budgeted development assistance of 63 NGOs in the Laos for 1997 is US$ 18,159,900. The NGOs' contribution, however modest in size, tries to offer more than just monetary assistance. NGOs offer partnership, solidarity, understanding and a commitment to work together to improve people's quality of life.

NGO assistance focuses primarily in the sectors of education, health, social welfare, agriculture and environmental protection. NGOs offer a combination of flexibility, little internal bureaucracy and small-scale, feasible, locally-based development activities which generally produce sound development processes that can be carried out by the local people and government authorities after the termination of external support.

Based on the, 1995 census, the Lao PDR counts 47 tribes, settled throughout the country. Prior to 1975, research done by France, America, the Soviet Union and Vietnam recorded 68 tribes. The difference in the figures is mainly due to a difference in criteria and a certain amount of mixing between different tribes.

Depending on the tribe, the oral language, traditions, customs and cultural behavior may vary greatly. However, they can be divided into three main ethnic groups which are named according to where they live: Lao Lum (living in the lowlands), Lao Song (living on the top of high mountains and Lao Teung or Lao Kang (on the plateau or Mountainside).

Researchers further divide the tribe into six sub-categories based on the language spoken: Lao-Tai, Mon-Khmer, Mong-Yao, Tibe-Myanmar, Viet-Mouang and Han or Hor. The final list enumerating 47 tribes takes into account the race and origin of the tribes, the names of which are: Alak, Bit, Chere, Hmong, Haw, Ha-nhi, Jri, Kaw, Katang, Khmu, Katu, Kui, Khmer, Kri, Lao, Lue, Laven, Lavae, Lamet, Lolo, Lavi, Makong, Museu, Mon, Nhuon, Ngae, Nhaheun, Nguon, Oi, Phu Thai, Phu-Noi, Phong, Pakoh, Souei, Samtao, Singmun, Sila, Sadang, Saek, Ta-oi, Taliang, Thin, Tum, Yao, Yae, Yang, Yumbri.

Our News Bulletin will be running a series dealing with many of these tribes, their distinctive cultural behaviors and oral languages. This issue deals with the Lahousi or Mouseu tribe.

The Lahousi or Mouseu tribe is a Tibe-Myanmar race that once lived in the north-west of China, first moving to Koangthong (Myanmar) and then onto northern Laos in 1880. Due to war and poor living conditions, they were looking for a better life. The Lahousi tribe is now settled in Ban Phortham, Long district, Luang Namtha province and some live in Bokeo province.

The Lahousi population numbers only about 15 thousand people based on 1994 statistical research. They practice slash and burn cultivation and also plant corn, soy bean, taro and breed some animals.

The Lahousi women weave traditional fabric for clothes and the men do handiwork such as making baskets and buckets. Their houses always made of bamboo, with rectangular grass roofs and stoves in side the house have small shrines over the bed of the head of the family.

The everyday attire for men is black trousers, a striped towel tied around their waist, and a long-sleeved, collar-less black shirt. They usually carry a red and white striped shoulder bag. The women wear striped skirts, black shirts with red or blue trim on the cuffs, necklaces of various colors and silver earrings.

The Lahousi have three traditional events: the corn festival held in August, the new rice crop festival held in September and the New Year festival on 25 February every year. For the New Year, they stop their normal work for five days to celebrate. On the first day, the entire tribe sets out to together to collect animal, food, and dry wood for the fire. During the next four days, villagers must remain in the village and guests are welcomed in. However, once they enter the village they will not be allowed to leave until the celebration is over. In general, Lahousi kill pigs for festive meals, make bonfires, drinking and dancing together around the fire.

Young men and women are allowed to meet each other during these festival, and are free to choose their partners. If a young man wants to propose marriage, he does so through a mediator who negotiates with the girl's father.

The parents do not choose the future husband or wife for their children as in other tribal groups. When an agreement is reached, they hold an engagement ceremony after which the couple can live together. The wedding ceremony is not held until three years later and the couple must live with the girl's mother for three to eight years. Once this period of cohabitation is over, the couple can set up its own household.

In the past, the Lahousi groom had to pay some ounces of silver to the bride, however this has changed over the years, leaving it up to the individuals involved to decide on the amount.

The wedding ceremony is very simple. After the baci, the elderly men and women pray for many children and a long marriage. At this time, the couple partakes of a holy water which is blessed by the elderly men, who are careful not to drop any water on the ground. They believe that if a single drop of water reaches the ground, their son or daughter will die. If several drops of water touch the ground, many of their children will also die. The firstborn son takes the father's name as his family name whereas other sons or daughters do not. The Lahousi tribe practices monogamy and in the case of divorce, the party requesting the divorce must pay silver to the other party.

Tribes living in close proximity have regular contact with one another. As a result, intermarriage, although not common, is acceptable. So as tribes mix more and more frequently, their distinct traditions are disappearing, giving way to modern practices. ( To be continued..)

A Memorandum of Understanding (MOU) between the Lao Government and Metropolis Sdn Bhd, a Malaysian company, entitling the survey of land for the possible development of a hotel resort on Had Donchane (Donchane island) in the Mekong River in front of Vientiane, was signed on November.

Metropolis Sdn Bhd will have nine months to survey the land in the designated area. During this time they will gather data on soil and water level. Afterward they will report back to the Lao government.

This is an interesting project. If it is feasible, it will contribute to developing Vientiane municipality. It will be a place to host national meetings, and also attract foreign tourists who come to Laos

Preservation of Luang Phrabang as a World Heritage site moved a step further after a three days meeting in November in the ancient capital. The meeting marked the end of the first phase of the UNESCO World Heritage Project Plan.

Safeguarding heritage is more than preserving homes, temples and buildings. It also means preserving the nature and mountains surrounding the town, the views, the ambiance of the city that exudes from both the avenues and the small lanes, the quarters and their details like the cobblestone and brick paths, the entrance ways and stairways around the town and the vegetation.

The problem is how to preserve the image of Luang Phrabang as it develops. This cannot be done without the education and input of local people in preserving their own surroundings. With tourism as the fastest-growing industry in Laos and Luang Phrabang as a main tourist destination, there may be conflicts between socio-economic factors and the desire of people to protect their heritage.

Decree of the President of the Lao PDR on the Preservation of Cultural and Historical and Natural Heritage was officially presented at this meeting. This decree is essential to the process of heritage preservation. Without rules and regulations there will be difficulties for the construction and restoration work. It is only one step to have a decree. The people must understand how to make it a reality.

A master plan for the Luang Phrabang World Heritage Site was presented at the meeting along with a model of the city center revealing the dimensions of the town. This was useful for discussions about effects of development, for example if larger buildings or hotels are proposed for Luang Phrabang.

Concerns of the UNESCO World Heritage Project are three-fold:

• architecture ( 55 buildings are on the current heritage list);
• inform and assist in providing information about regulations;
• put on exhibitions and ensure developers respect regulations and heritage rules.

1999 is Visit Laos Year, and the theme is "Laos is Your New Love.". The National Tourism Authority of Laos (NTAL) has chosen this year because it promises to be a big historical event. It's the end of the 20^th century and the opening of the 21^st century. The Tourism Authority also hopes, it will be the year Laos fully opens up to tourism.

"Visit Laos Year" will be officially launched at the celebration of That Luang Festival in November 1999. At the festival, all provinces will take part in the big parade. Each province will showcase its customs, traditions and its models of tourism. Exhibition of products and handicrafts from each province will also be highlighted at the festival. In addition, NTAL will invite foreign companies, organizations from Asia, Europe and other continents to display their technology, culture, trade and tourism. During the celebration there will be sporting events in the day time and at night cultural activities from other countries and Laos.

NTAL will also hold the Mekong Forum on Tourism for the Mekong Basin countries: Laos, Thailand, Myanmar, Cambodia, China and Vietnam.

The tourism sector is very important for developing a country because it encourages socioeconomic development, such as communication, transport, agriculture, handicrafts, urban growth, and human resources.

Laos has many entry points: from China at Boten, Luang Namtha; from Vietnam at Savannakhet and Borikhamsay; from Thailand at Houaisay, Bokeo; Savannakhet and Champassak. Visas on arrival can be obtained at the Wattay International Airport or at the Mittaphab Friendship Bridge connecting Laos and Thailand. Now, with plenty of hotels and many guest houses available, Laos can cater to each individual's needs, from a five-star hotel to a simple guest house.

When tourists come, they will be able to see Luang Prabang, the World Heritage site designated by UNESCO on the same level as some of the world's best known destinations such as Taj Mahal in India and Angkor Wat in Cambodia.

In 1995, Luang Prabang was recognized by UNESCO as the best preserved ancient city in Southeast Asia. It is located about 350 kilometers north of Vientiane. Luang Prabang was the capital city of the Lane Xang Kingdom in ancient times. It has some of the most charming and beautiful temples in the whole country.

Tourists will also be able to see the original capital city, Muang Khun Cheuang, which was almost totally obliterated by the US bombing during the Vietnam War. In Xiengkhouang, one can see the stone jars on the Plain of jars. The largest jar weighs eight tons, is 3.25 meters tall and 2.50 meters in diameter. Researchers have estimated it to be around 2,500 to 3,000 years old.

In the south, there is Wat Phou, an Angkor Wat look-alike, believed to be built by the Cham people from the 5th century, two centuries before Ankor Wat was built. In Vat Phou one can see many Hindu-style symbols and designs.

In Vientiane, there is the That Luang stupa, which is the largest stupa in the Lao PDR. That Luang was constructed in 1566 by King Setthathirat. Not far from That Luang there is the Patousay monument, which resembles the Arc de Triomphe of Paris. Its architecture incorporates typical Lao motifs and standing on the top of the monument one can have a panoramic view of the entire city. A short distance from the monument stands the old temple of Vat Si Saket, where 6,840 Buddha images rest peacefully.There are also many other interesting temples in Vientiane for those who are interested.

===OOO===

WE WISH YOU AND YOURS ALL THE HAPPINESS

THAT A PROSPEROUS AND SUCCESSFUL NEW YEAR CAN BRING