Lao Embassy News Bulletin

Minister of Foreign Affairs Somsavat Lengsavad has sent to the new United Nations Secretary-General, Mr Kofi Annan, and a message of congratulations which reads as follows:

"Your nomination to this responsible post, which we in Laos welcome very much, is a tribute to your great continent, Africa. Aware as we are of your rich diplomatic experiences and skills, I am confident that you will successfully guide our organization in the pursuit of its noble ideals, as enshrined in the United Nations Charter.

Taking this auspicious opportunity, I would like to express to you the sincere thanks of the Lao Government and the people for the importance assistance provided to us by the UN system and also to express the firm belief that the strong relationship existing between the UN and the Lao People's Democratic Republic will be developed and further strengthened, in the interests of world peace, international security and cooperation."

Mr Annan, who succeeded Mr Boutros Boutros-Ghali as head of the international body on December 17, 1996, is the seventh Secretary General of the United Nations.

LAOS SEEKS UN SUPPORT FOR NEW DEVELOPMENT STRATEGY

Deputy Prime Minister Khamphoui Keoboualapha recently told a visiting UN envoy that the Committee for Foreign Investment Management and Cooperation has finished putting together a socio-economic strategy leading up to the year 2000, and Laos is now seeking United Nations support.

Mr Khamphoui Keoboualapha informed the United Nations Assistant Administration and Regional Director for Asia and the Pacific, Mr Nay Htun, that human resource development and rural development are the main areas, which require support. Mr Khamphoui also provided details about how cooperation projects run by the United Nations Development Programme (UNDP) and the Lao Government, from 1992 to 1996, have satisfied the criteria of both sides. Most importantly, these cooperation programmes were said to have met the needs of Laos.

After hearing Mr Khamphoui's assessment, Mr Nay Htun expressed his support for the new strategy, which will continue these development programmes up to the end of the century. Mr Nay Htun also met the deputy Prime Minister when he attended a UNDP conference for deputy resident representatives to Asia and the Pacific in Vientiane, in late January.

Mr Nay Htun, the UN envoy, also met Minister of Foreign Affairs Somsavat Lengsavad. The two men discussed new UNDP progammes to support development efforts in Laos. They also talked about the preparation for the sixth roundtable meeting on development in Laos, which is scheduled to be held on June 1997 in Geneva.

VISIT OF VIETNAMESE VICE PRESIDENT

The Vice President of Vietnam, Mrs Nguyen Thi Binh, arrived in Vientiane on January 23, on an official visit at the invitation of her Lao counterpart, Vice President Sisavat Keobounphanh. The objective of the visit is to further strengthen the traditional relations of friendship, special solidarity and all-round cooperation between the two countries. However, the visit is also designed to give Vietnam an idea of just how Laos is upgrading its economy in the lead up to the 21st century, and the upgrade in Lao-Vietnamese cooperation that will be required to suit this changing situation.

The Vice President of Vietnam and her delegation met the Vice President of the Lao PDR and his delegation on January 23. During the meeting, the two sides exchanged information on developments in their respective countries.

During her six-day visit, Mrs Nguyen Thi Binh called on President Nouhak Phoumsavanh, Party President and Prime Minister Khamtay Siphandone, and toured Champassak and Vientiane provinces. Vice President Binh and her delegation also visited the Lao-Vietnamese cooperation and aid projects in the two provinces.

PRINCESS SIRINDHORN OF THAILAND VISITED LAO PDR

Princess Maha Chakri Sirindhorn of Thailand arrived in Vientiane with her entourage on January 21 for a four-day visit to the Lao PDR. The Princess was greeted at Wattay Airport by Minister of Foreign Affairs Somsavat Lengsavad, his wife, and senior officials of the Lao government.

During her stay in Vientiane, Princess Sirindhorn paid a courtesy visit to President Nouhak Phoumsavanh. She visited the Houa Sone-Houay Soua development project, at Km 22 north of Vientiane municipality, where she saw various activities involved in the project, including a cattle breeding project and an irrigation construction site. The project is a joint development project between the Lao government and the King of Thailand. It serves to promote cattle breeding and agricultural production among people in the rural area.

The Princess also visited the Orphanage at Km 67 north of Vientiane municipality, where she officially opened a newly built kitchen worth 600,000 baht, and released fish fingerlings into a pond. Other activities of the orphanage funded by the Thai princess included construction of four small weirs on Houay Mark Fai river for use in fish breeding, and expansion of areas for vegetable plantation. Princess Sirindhorn then proceeded to visit Oudomsay and Luang Namtha provinces before returning home.

VISIT OF GERMAN MINISTER FOR ECONOMIC COOPERATION

On January 20, a German delegation of sixty members, headed by Minister for Economic Cooperation and Development Carl-Dieter Spranger, made a two-day visit to Lao PDR at the invitation of the Chairman of the State Committee for Planning and Cooperation, Mr Bouathong Vonglokham.

The delegation which included high officials, journalists, special guests from National Assembly, and police met with the directors of the Lao-German cooperative projects and examined their progress. They went on to visit the Lao-German Technical School in Vientiane, which was established in 1964 with German financial assistance and experts to help Lao students to develop their skills in technical field. Germany is a big supporter of human resource development in Laos. Every year, the German government grants 10 scholarships to Lao students for a one-year study period in Germany.

Relations between Laos and Germany are expanding. The German government has had an embassy in Laos since 1958 and have assisted many projects over the years. Assistance is focused in specific fields like rural development, environmental protection, human resource development and drug control with projects in the northern provinces of Luang Namtha and Bokeo. In 1995-96, the German government assisted 17 projects worth about DM 20 million in Laos, and there are currently 11 projects underway. Last year, it also donated 5000 tons of rice for flood aid.

Assistance comes in two forms: technical and financial. There are now six financially assisted projects which Germany supports. These are: road upgrading project in Houaphan province, worth DM 15 million; rural communication project worth DM 14 million; a rural credit service project worth DM 6 million; extension project for Forestry College worth DM 5 million; informal education development project worth DM 5 million; and Luang Prabang Water Supply Project (phase two) worth DM 8 million.

On January 21, the visiting Minister of Germany, Mr Carl-Dieter Spranger, and the Chairman of the State Planning Committee, Mr Bouathong Vonglokham, signed an agreement to provide DM 10 million in aid to Laos. The money will be used in the construction of a power line from China to Luang Namtha province. With the aid, a power station will also be built. The electricity facility will boost industrial development in the province.

During their stay in Lao PDR, the German Minister and his delegation were received by President Nouhak Phoumsavanh, Prime Minister Khamtay Siphandone, and Minister of Foreign Affairs Somsavat Lengsavad. They also met with many Lao high officials concerned. They visited cultural sites in Vientiane and Luang Prabang.

LAO-VIETNAM COOPERATION COMMISSION ANNUAL MEETING

The 19th annual meeting of the cooperation commissions of Vietnam and Laos met in early January to review their cooperation in economic, cultural and technological areas over the past year. The meeting resulted in the signing of an agreement for a plan of cooperation from now to the year 2000. For 1997, Vietnam will grant 57 billion dong to Laos. Of the grant 20 billion dong will be used in education and training of Lao officials, and 37 billion dong will be used in the field of agriculture, forestry, culture, science and technology.

In addition, from now to the year 2000, Vietnam will cooperate with Laos to survey, design and build irrigation facilities in various areas of Laos. Vietnam will continue to create favorable conditions for Laos to use its seaports, which Laos has been given access to, and to transport goods through Vietnam. Vietnam decided to build a seaport in Wung Ang, which Laos can also, use. Along with the seaport project, surveys for road and oil pipeline construction from Wung Ang seaport to Laos will be conducted.

INTERNATIONAL RELATIONS TRAINING CENTRE

A training Centre to provide regular intensive training courses in international relations and foreign languages for ministerial and governmental agencies at both central and local levels has been opened in January, in Vientiane. Present at the ceremony were Mr Thongsing Thammavong, Permanent Member of the Party's Politburo Bureau, Chairman of the National Committee for Human Resources Development, Mr Bounyang Vorachit, Vice Prime Minister, members of the Diplomatic Corps and representatives of International Organizations.

In his opening speech, Deputy Foreign Minister Soubanh Sritthirath said: "The opening of the International Relations Training Centre will serve the government's renovation policy, marked by increasing multisectorial international activities. In the past as well at present, in parallel to the increased socio-economic development and the augmentation in cooperative relations with foreign countries, the Lao PDR has attached great importance to human resources development by paying due attention to training of personnel in various disciplines both within and outside the country. Such effort is still far too little to meet the requirements of the new stage when the Lao PDR prepares itself for membership in ASEAN and other international organizations".

FIRST PUBLIC CONSULTATION ON NAM THEUN 2 (NT2)

The first round of National Public Consultation on Nam Theun 2 Hydroelectric Power Project opened in Vientiane on January 27-29. Some 150 participants from all sectors in and from outside Laos were consulted over three independent studies concerning the project. The consultation, organized by the Science, Technology and Environment Organization (STENO) in accordance with its mandate to oversee the overall management of environmental matters in the Lao PDR, was chaired by Deputy Minister of Industry and Handicraft Khammone Phonekeo, with the presence of Vice President of STENO, Mr Noulinh Sinbandith, and Vice Chairman of the State Planning Committee, Mr Leuan Sombounkhan.

The workshop is intended to be the first in a series in which information about the project is made available to representatives of local communities, and to other indirect stakeholders from the international community who have expressed an interest in the project. As a starting point in this information sharing, STENO has sent to the organizations invited to this workshop the Terms of Reference and Inception Reports for three independent studies which are prepared for the government in support of the Environmental and Social Assessment: the study on alternatives to NT2; the study on its economic impact; the study on the Environment and Social Management Action Plan for the catchment and corridor areas of the dam. In addition, the project sponsor, Nam Theun Electricity Consortium (NTEC) has prepared general background information on the NT2 project, which is to be shared with the participants.

During the three days, the studies were presented by study team leaders to the participants at plenary sessions and then discussed in small groups. Studies were made by specialized international companies. Lameyer of Germany and Worley of New Zealand carried the study on alternatives. An international team from Louis Berger of Washington was responsible for the economic impact study while IUCN made the survey for the environmental and social action plan for Nakai-Nam Theun catchment and corridor areas. The methodologies underlying these studies were also presented to the participants during the three days of the public consultation and the views expressed both in the plenary sessions and the breakout groups will be recorded by the consultants, and documented in their working methods and draft reports.

Discussions were businesslike but sometimes with a touch of passion, showing the participants' deep concern over the issues raised. During a debate on environment matters, Member of Parliament Somphavanh Inthavong said that more that wildlife it is men who are an endangered species, evoking the fate of some ethnic minority group whose number does not even reach a hundred and who lived in precarious conditions. Many suggestions were also made to the three studies and to improve their methodologies, including diversification of markets, mitigating government's risks, how to make best use of water discharged from the plant, concern over wildlife and the well-being of stakeholders in the process of resettlement.

As a further step in this information sharing, specialists with the State Planning Committee, the Ministry of Industry and Handicrafts, and STENO, are working with each of the study consultants to develop appropriate ways to share information with directly affected stakeholders, particularly at the district and local levels. This will include identifying the stakeholders to be consulted, determining their customary forms of decision making, and drawing up plans for their participation in the consultation process. Meetings using visual and written information will be held, and local leaders will be consulted. The project sponsor is also working on an Environmental Assessment specifically for the NT2 project and a Resettlement Action Plan. Information on this work will be released in the coming month.

Three national workshops are to be held to discuss the methodology and the findings of the three studies commissioned by the government. After this first workshop, two workshops will be convened in March and in May or June to cover the preliminary findings and conclusions of the studies. Most important will be the consultations beginning at the local and regional level in the course of these three studies. Of particular importance will be that undertaken by the Environmental and Social Action Plan for the Catchment area, since the government has asked that pilot activities begin on how to involve local communities in protecting and managing the catchment area, at the same time raising their living standard.

At the same time and in conjunction with NTEC, a number of thematic seminars will be held to discuss the findings of the many environmental, technicals and social studies commissioned by NTEC. The first of these seminars will be held in Vientiane on February 19 and 20 with the objective of stimulating thoughtful and constructive discussion on proposed project strategies. These NTEC-commissioned studies will form the basis of two key reports to be used for the project's appraisal: 1. The Environmental Assessment and Management Plan for the NT2 project (EAMP); 2. The Resettlement Plan (RP).

STENO, in conjunction with NTEC, will hold a number of participatory workshops in Vientiane on the Resettlement Plan and the Environmental Assessment and Management Plan. These workshops will be conducted in the same manner and have the same follow-up process as those for the three independent studies. Meanwhile STENO will keep its door open for anybody interested in discussing the project or obtaining documentation on it.

The mass organizations, such as the Lao Women's Union, the Lao Front for National Construction, the Lao Federation of Trade Unions and the Youth Union which have a long and successful history of working with local communities to improve their livelihoods and strengthen their community organizations, also participate in the process of consultation with local communities so that their views are fully heard and expressed.

Consultation is a two way process. It involves a dialogue from government to the communities and from the communities to the government. As in all consultation processes, government remains the final decision-making authority. Public consolations are a long-standing tradition in Laos. To draft the constitution or any law, the people are consulted and invited to contribute critics and suggestions. For NT2, consultations will be carried at four levels--at local level with the direct stakeholders, at provincial level, at national level with foreign participation like the present meeting, and, if necessary, at international level.

JAPAN: HAND-OVER OF BRIDGES ON ROUTE 13 SOUTH

The project for reconstruction of 11 bridges on National Route 13 South from Ban Lao to Thakhek was completed one month ahead of schedule. It was handed over to the Lao government early February at the Hinboun Bridge, Khammouane province. This project, financed by the Japanese government, was constructed by the Obayashi Corporation at a contract value of 1,056,000,000 Yen, and was supervised by CPC and Nippon Koei Consultants for an additional 76,664,000 Yen. In addition, the Lao government paid 14,920,435 kip for the project's management expenses. The bridge construction project on National Route 13 South, between Pakkading and Thakhek was implemented under the Ministry of Communication, Transport, Post and Construction.

Supported by the government of Japan, this was the second phase of the project to reconstruct bridges on Route 13. In all, 11 old bridges along the Ban Lao-Thakhek stretch of Route 13 South were replaced with 2 new bridges and 9 box culverts. The combined length of two new bridges is 149.6m with the Hinboun Bridge spanning 124m and the Houay Ark Bridge measuring up at 25.6metres. The crowning jewel of the completed phase, the Hinboun Bridge, was constructed by a composite of steel girders and concrete deck slabs. It is 7m in width, has a bearing capacity of 80 tons, and is installed with a new automated lighting system. The total length of the 9 box culverts is 130.6 metres. They are paved with a double surface treatment, and are constructed with erosion protection embankments.

The first phase of the project, also supported by the Japanese government, was completed in February 1996, and included the construction of 15 new bridges at a total cost of about US $13 million. The total cost for the reconstruction of the 26 bridges from Pakkading to Thakhek was about US $25 million.

In his speech at the Hinboun Bridge inauguration ceremony, Ambassador Hiroomi Sakai of Japan said: "The government of Japan may extend its support for reconstruction of additional bridges between Thakhek and Pakse. We are also undertaking a detailed design study for the construction of a bridge over the Mekong River, in Pakse. This span will be twice the length of the Friendship Bridge between Vientiane, Laos, and Nong Khai, Thailand."

THAILAND: HAND-OVER OF LUANG PRABANG AIR TERMINAL

On January 14, Thailand has handed over a new passenger terminal and control tower at the Luang Prabang Airport. The Minister of Foreign Affairs of Thailand, Mr Prachuab Chaiyasan, presented the work, valued at 49.31 million baht, to the Minister of Foreign Affairs of Lao PDR, Mr Somsavat Lengsavad. Starting in mid February 1995, the work of renovating Luang Prabang Airport included the 24,500-metre long runway and the apron and fencing. It also involved construction of the new terminal and control tower, on an area of 2,500 square metres.

After the hand-over ceremony, the Thai Foreign Minister presented one million baht in cash to the Lao Foreign Minister for the relief of flood victims in central and southern Laos. He also presented 110,000 baht to the governor of Luang Prabang province for the Fifth National Games to be hosted by Luang Prabang in February.

Mr Prachuab Chaiyasan was in Laos from January 13-15, leading a Thai delegation on an official visit at the invitation of his Lao counterpart, Mr Somsavat Lengsavad. During their three-day visit, the Thai Foreign Minister and his delegation were received by President Nouhak Phoumsavanh and held talks with his Lao counterpart.

During the talks the two foreign ministers and their respective delegations discussed issues on the relations and cooperation between the two countries in the past, in particular the co-operation in the economic sector, in border-security keeping, and in investment. The two sides also discussed the granting of rights for local authorities to hold meetings, the meetings between border provinces, the efforts to provide easier contact between the two countries, together with the problems of transportation, and the opening of consulates in Laos and Thailand. After the talks, members of the Thai delegation met with Lao government officials in the line ministries.

NEW COUNTER NARCOTICS UNIT OPENS IN SAVANNAKHET

A new office for the Counter Narcotics Unit was officially opened in Savannakhet on January 28. The opening of the provincial unit for drug control and suppression indicates the Government's increasing efforts at keeping security and order, by enforcing laws in dealing with drug traders. Present at the opening were the Chairman of the National Committee for Drug Control and Suppression, Deputy Foreign Minister Soubanh Sritthirath, US Ambassador to Laos Wendy Chamberlain, Director of Narcotic Affairs Section Albert L. Bryant, and Savannakhet Governor Inpong Khaiyavong.

In his opening speech, Mr Soubanh said that in the past Savannakhet province has paid attention to activities in drug control and suppression, which resulted in the arrest of 34 drug dealers, including five Thais, and the seizure of 370 bars of processed marijuana, weighing 370kg, 170 kg of marijuana leaves in dried form, and 8.5 kg of heroin. In addition, more than 258,000 tons of marijuana plants were destroyed. Ill-meaning people from abroad who illegally entered the province and provided local people with funds to grow marijuana encouraged the drug trade and trafficking in the province. Such as the marijuana plantation at Ban Nong Teng in Songkhone district which was funded by a Thai from Mahasarakham province.

The opening of the new office was marked by the hand-over of two pick-up cars, four motorbikes, long distance radios, and office equipment, which were provided by the US government. The Savannakhet office is the second to be opened following the opening of the one in the municipality of Vientiane. According to the Committee, the third provincial-level office will be opened in Bokeo in the first few months of this year.

US AMBASSADOR VISITED PROJECT OPERATIONS IN HOUAPHANH

US Ambassador to Laos Wendy Chamberlain visited US-assisted projects in Houaphanh and XiengKhouang on January 9. She led a US technical team, which inspected road construction projects and two hydropower stations being built on the Nam Aed and Nam Peun rivers. During the trip, the US Ambassador also handed over an operation table for a hospital in XiengKhouang.

The main purpose of the visit, though, was to review the ongoing projects, which include small irrigation projects, schools, hospitals, the national unexploded ordnance-clearing programme (UXO LAO), and others. Since 1989, the United States has also granted US $10 million to Houa-phanh for its anti-narcotics programme. Between June and August last year, the US also helped renovate the Friendship Hospital in Xiengkhouang, at a cost of US $2 million, and helped the Military Hospital in the province. In 1996, the US made contributions of US $1.3 million and US $2.7 million to the UXO LAO programme. Under this arrangement, US staff work with the British Mines Advisory Group (MAG) in Xiengkhouang and with German team in Houaphanh.

FRANCE: AID IN DEVELOPMENT

On December 30, an agreement to fund two projects was signed between the Economic Cooperation and Foreign Investment Department and the Caisse Francaise de Developpement (CFD). According to the agreement, France will provide 27.1 million francs to the project for development of the Boloven Plateau, under a five-year project, starting from 1996. The project is aimed at raising the living standards of local people, by increasing the productivity of the coffee, bean, fruit and animal husbandry industries.

The second project, a three-year programme, will integrate the Nabong Agriculture and Forestry College into a faculty of the National University of Laos. This project, at a total cost of 15.5 million francs, will focus on upgrading the scientific knowledge and teaching skills of the instructors. For this purpose, workshops and experiments have been organized, as well as guides for the compilation of documents and instructional papers, provision of teaching aids, laboratory equipment, utilities provision and improvement of the classrooms. The project also calls for the training of agronomists with special scientific skills that will be useful in Laos.

LAUNCHING OF LAO SATELLITE, L-STAR 1, INTO ORBIT IN 1997

Arianespace has been chosen as the launcher for the first Lao satellite, L-Star 1. The launch is scheduled for late 1997, from the Kourou launching pad in French Guyana.

This announcement was made by the General Manager of Arianespace, Mr Francis Avanzi, during his visit to Laos in late December. "Arianespace will stand at your side to turn your ambitious project into an exemplary success," said Mr Avanzi who voiced his pleasure at being in Laos as a messenger from France and Europe to "a friendly nation with which the traditional and historic links are deeply anchored in our hearts".

After the Lao government decided to have its own satellite, it signed a joint venture agreement with Asia Broadcasting & Communications Network on November1,1995, thus establishing LaoStar Co Ltd in which the government holds 20 percent of the shares for a period of 30 years. The cost of the program is US $500 million. L-Star 1 is manufactured by the American company Space System/Loral. Telesat Canada is responsible for ground monitoring from the station, which is in construction next to the Mekong River in Hatsaifong district, 18km south of Vientiane.

Arianespace is a European venture in which 53 shareholders and suppliers from 12 countries are represented. Arianespace has become the world leader in space vectors, encompass- sing 60 per cent of the market. Asia has commissioned 20 satellites, of which 14 will be launched by the European company. The company has 46 customers throughout the world and has so far launched 167 telecommunication satellites of which 125 are already in orbit. L-Star 1 will soon join the 150 communications satellites orbiting around the globe.

UNDP: MORE FUND TO UXO LAO

On January 20, the United nations Development Programme (UNDP) signed an agreement with the Lao government to provide another US $850,000 to the national programme for awareness and clearance of unexploded ordnance (UXO LAO). It comes from UNDP fund for countries facing exceptional needs, like post-war rehabilitation or recovery from natural disasters. The contribution will finance management and administration of the national programme, allowing other donations to go to raising awareness and clearance activities in the field. It follows an earlier an earlier grant of US $400,000, which helped establish the programme.

UNDP also administers the UXO Trust Fund, which draws donor support for UXO awareness and clearance activities in the country. To date, the UXO Trust Fund has received financial or in-kind contributions from nine countries: Australia, Canada, Germany, Japan, the Netherlands, New Zealand, Norway, Sweden, the United Kingdom, and the United States. Funding has also come from UNDP, UNICEF, and a number of non-governmental organizations. In 1997, UXO LAO will grow to a US $10 million programme for awareness and clearance activities in eight provinces.

OPENING OF VANGVIENG-KASY ROAD

The section of Road 13 North running from Vang Vieng district through Kasy district, Vientiane province, was opened to the public in mid-January. Work on the highway, 63 km long with double surface treatment, began in March 1992. The first surface is eight metres wide and the second surface six metres wide. The total cost of the construction was some US $8 million, in loans provided by the Asian Development Bank.

"The new highway would benefit not only the local people in VangVieng and Kasy districts but also significantly contribute to the expansion and improvement of transportation and economic development in the country," said the Minister of Communications, Transport, Post and Construction at the inauguration ceremony.

DEVELOPMENT PROJECT FOR SEVEN NORTHERN PROVINCES

On January 20, a round-table meeting to discuss the accelerated development project for seven northern provinces during 1996-97 was held in Oudomsay province. The conference discussed several issues, such as the repair of road N01, 234km long, which links the border between Boten-Oudomsay-Phoulao in Houaphan province, road No 2 from Oudomsay to Pakbeng, 144km long, and several other roads in the northern provinces.

Participants at the roundtable meeting also talked about the construction and repair of irrigation systems, the installation of electricity lines from China to Oudonsay, Luang Namtha and Phongsaly provinces and rural development in the various priority areas in these northern provinces.

ANNUAL CONFERENCE ON AGRICULTURE AND FORESTRY

The 1996-1997 annual conference of the Ministry of Agriculture and Forestry (MAF) was held in Vientiane from January 21-23, 1997 with the participation of more than 120 Heads of Provincial Agriculture and Forestry Departments, private enterprises and other concerned organizations. The aim of the conference was to facilitate an exchange of experiences and conclusions that different divisions have gained over the years, in order to provide farmers with the sum of their knowledge on foodstuff production for self-sufficiency and surplus. According to the MAF target, more than 1,818,000 tons of rice will be produced in 1997. It is projected that the rainy season will produce 1,520,000 tons and the dry season 85,000 tons.

The conference highlighted the significance of coordination between the central and local levels, the state and people and the divisions concerned, in order to make steps to improve ago- forestry production more effectively. The attendants heard a report on last year's achievements and an outline of this year's implementation plans presented by the Minister of Agriculture and Forestry. They also heard a number of reports on agro-forestry activities, presented by delegates from across the country, including representatives from ministries, state bodies and private businesses.

It was noted that last year farmers planted more than 11,850ha of trees and managed to burn less forest than the year before - only 176,600 ha. Slash-and-burn cultivation was also kept steady at 180,000 families last year. In 1995-96, the total rice harvest in Lao PDR was 1,413,500 tons, out of an area of 535,779 ha of paddy. The rainy season produced 1,076,000 tons on 363,133 ha, for an average yield of 2,960kg per ha, while the dry season saw a harvest of 71,500 tons in 17,962 ha, and averaged 4 tons per ha. In its continual bid to aid farmers feed their animals, the Agriculture Promotion Bank also provided credit to farmers up to 5.7 billion kip.

THE YEAR THAT WAS ..... 1996

As 1997 begins, the following is a look back on news and events happening over the last year, which reflected major developments and changes in economy of the Lao PDR. The most important event taking place in the year 1996 was the opening of the Sixth Congress of the Lao People's Revolutionary Party.

1996 began with Lao Aviation opening a flight in January between Vientiane and Kunming, the capital of Yunnan in southern China.

In the same month, the Government signed a master agreement with a Malaysian firm, Syuen Corporation, to build a more than US $ 200 million resort project over the area of Nam Ngum Lake. Known as "The Phou Khao Khouay-Nam Ngum Eco-tourism Resort", the project will cover a total area of more than 18,000 ha, where a mini-city of hotels, aqua-parks, golf courses, a marina and a range of leisure facilities will be built. The project has progressed well. Another major event during that month was that the governments of Laos and Thailand agreed to build two new bridges over the Mekong River and increase flights between major Lao and Thai cities, when the Thai Minister for Communications visited Vientiane.

Equally important was the news about Laos and India signing an agreement on bilateral cooperation when Indian Foreign Minister Pranab Mukherjee visited Laos. The cooperation covered the areas of business, investment, education, health care, culture, sports, and mass communication. The event was seen as a major move in their bilateral relations after the two sides allowed for the setting up of a joint venture for the production of agricultural pumps in Laos with a US $2 million soft loan.

In February, the government of Japan handed over the US $26.8 million Chinaimo Water Treatment Plant to the government of Laos. Construction started in 1992 with grant aid from the Japanese government.

The government of Australia pledged to fund the building of three new bridges at a total cost of US $12 million on Route 13 South.

Boualapha Group, based in Vientiane, told the local press at a Fair to promote agriculture and forestry that it would export eucalyptus charcoal to the Republic of Korea.

In March, relations between Laos and Poland saw a new development following a visit to Laos by the Marshall of the Senate of the Republic of Poland, Dr Adam Struzik.

The Wildlife Conservation Society fully backed the Nam Theun 2 dam in a letter to the International Rivers Network.

The construction of 15 bridges on Route 13 South with the grant aid of the Japanese government was completed. Japanese businessmen who represented 16 companies in Bangkok, Thailand, came to Laos to explore investment opportunities. The visiting Japanese were told that Laos could learn a lot from Japan, as it switched from a centrally planned to a market economy.

The Sixth Congress of the Lao People's Revolutionary Party opened in Vientiane. It was attended by 380 delegates representing 78,000 party members throughout the country. A total of 49 delegates were elected members of the Party Central Committee, which is the highest body of the Party leadership. The number was cut back from 54 in its previous congress in 1991.

Enterprises Telecommunications of Laos and Australian Telstra launched the first Lao telephone directory with more than 18,000 personal and business listings.

The German government announced it would fund the second phase of a mammoth tele- communications project.

The Science, Technology and Environment Organization (STENO) told that Laos had to use the Internet.

In April, the biggest ever celebration of Pimai Lao was held in Luang Prabang to mark the city's World Heritage status. As the best-preserved ancient city in Southeast Asia, Luang Prabang was declared a UNESCO World Heritage site in December 1995. Prime Minister Khamtay Siphandone and his Vietnamese guest Prime Minster Vo Van Kiet attended the Pimai celebration in this ancient city.

The Government allowed the establishment of LAOSTAR Co Ltd after it had signed a joint venture with Asia Broadcasting & Communications Network, a subsidiary of the Thai M group. With LAOSTAR, the country will get its first telecommunications satellite next year.

Electronics giant, Philips, opened its first outlet in Vientiane.

Lao Stanley Co Ltd opened its factory in Vientiane to assemble head and rear lamps for automobiles and motorbikes. Production is for both the domestic market and export.

Princess Maha Chakri Sirindhorn of Thailand visited four southern provinces of Laos.

Laos appointed a State Vice President, the first ever appointment over 20 years, at the 8th ordinary session of the National Assembly. The session passed amendment to sections of the law on narcotic trafficking, which provides more severe punishments for violators.

The governments of Laos and Thailand decided the site for the second bridge across the Mekong River, which will be about 300m south of Ban Thasano Noi in Savannakhet province on the Lao side and at Ban Phaloka on the Thai side in Mukdahan.

Japanese businessmen based in Singapore visited Laos to scout investment opportunities.

An American oil company, US Asia-Pacific Company was allowed to build an oil refinery in Borikhamsay province, according to a memorandum of understanding it signed with the Government.

In May, Laos and Vietnam signed a new agreement providing for both goods and passengers transportation through seven border crossings.

The World Bank provided Laos with a US $28 million loan to improve the land property ownership system.

Police arrested 43 gamblers, mostly Thai nationals, in a raid on at the Km 14-tourist resort complex project. Cards, dice, chips and gambling materials were seized during the raid.

Laos marked the 35th anniversary of its diplomatic relations with China.

Route 13 North section between Kasy and Luang Prabang was completed.

The International Monetary Fund approved the third annual loan of an amount equivalent to US $17 million, under the enhanced structural adjustment facility, to support economic reforms this year.

The government of New Zealand agreed to contribute a grant of more than US $120,000 to a UN trust fund set up to pool funds and coordinate the unexploded ordnance clearance.

Thai Petrochemical Industry Public Co Ltd was allowed to build a US$300 million cement factory in Vientiane's Vang Vieng district. The cement plant, which is to take about four or five years to build, will have a capacity of 15 million tons.

A Lao national, Ms Dara Kanlaya won the Nikkei Prize for culture in Japan for her work on the restoration of palm-leaf manuscripts which are in temples all over Laos.

Vientiane Monument was given a new name Patouxay, an arch of triumph.

The Japanese International Cooperation Agency opened its office in Vientiane as its work on economic cooperation with Laos has increasingly been expanding.

Adjusted rates of road tax were introduced, according to which the rates for all types of vehicles were lowered drastically, while those for motorbikes remained the same.

Foreign Minister Somsavat Lengsavad visited the Republic of Korea following the signing of an agreement to establish diplomatic relations between the two countries in October last year.

The US government agreed to grant US $1.7 million to the Lao-American anti-drug cooperation project in the northern province of Houaphanh.

The government of Australia reaffirmed that it will give US $1 million for the clearance of unexploded bombs in Laos.

Lao and Thai technicians met to discuss how they can coordinate the conservation of forest reserves and aquatic and wild animals along the common border, including the Mekong giant catfish, Pa Beuk.

Residential projects for state employees were launched in Vientiane.

US mine detectors were brought to Laos by a US aircraft for use in the clearance of unexploded bombs.

Malaysian Airlines opened flights between Kuala Lumpur and Vientiane.

In June, the government of Japan allocated another US $26 million for the refurbishment of the Vientiane International Airport. In total, Japan has granted US $42 million to the rehabilitation of this airport.

Laos opened its consulate general in Khon Kaen, northeastern Thailand.

A memorandum was signed in Kuala Lumpur to set up a Lao-Malaysian joint commission to further enhance bilateral trade and economic relations, during Foreign Minister Somsavat Lengsavad's visit to the ASEAN member countries.

The World Environment Day was marked in Vientiane by more than 2,000 people who scoured the streets to rid the city of garbage.

The joint commission of Laos and Myanmar for cooperation held their second meeting in Vientiane to discuss the extension of the bilateral cooperation.

Lao-Thai relations were further enhanced with the signing of an agreement on electricity sales from Laos to Thailand during Prime Minister Silpa-Archa visited Vientiane. The sales were to increase to 3,000 MW from 1,500 MW.

The British-based Standard-Chartered Bank opened its representative office in Vientiane. It was the first European bank in Laos.

Drugs of all kinds were set on fire on That Luang Esplanade in Vientiane as Laos marked the International Day against Drug Abuse and Illicit Trafficking, while 23 men involved with drug cases were sentenced for up to nine years in prison.

A mission of businessmen from South Korea was in Laos to discuss trade and investment with government officials.

In July, Party President Khamtay Siphandone visited Vietnam to attend the 8th Congress of the Communist Party of Vietnam.

National Assembly President Samane Viyaket visited Thailand, reciprocating the visit in the first half of the year to Laos by his Thai counterpart Boon-Eua Prasertsuwan.

The Chairman of the National Mekong Committee of Laos, Dr Kithong Vongsay, was made chairman of the Mekong River Commission for a one-year term.

Lao and Malaysian officials discussed in Vientiane a railway linking Singapore, Malaysia, Thailand, Laos, Vietnam and southern China. Discussion focused on the railway section from Vientiane to Thakhek and Savannakhet and to the Lao-Vietnamese border.

The Government adjusted rates for electricity, which is 8 kip per KWh for residences which consume less than 100 KWh per month, and 15 kip per KWh for 101-200 Kwh per month, and 25 kip for 201-500 KWh per month.

Cooperation and investment management, previously under the Committee for Planning and Cooperation, came under the jurisdiction of the Prime Minister's office, following a change in the name of the committee, which now looks after only the planning work.

A 60-member Japanese mission from Keidanren, a private and non-profit organization which virtually represent all branches of economic activity in Japan, visited Laos, aiming to explore possible broader economic cooperation through meetings with government leaders, including Prime Minister Khamtay Siphandone and deputy Prime Minister Bounyang Vorachith.

A total of 98 Buddha images, 15 coated with gold, were unearthed in Vientiane Polytechnic School.

Vientiane residents were given a number of card phone booths throughout the town.

In August, Society International de Telecommunications Aeronautics (SITA) opened its Vientiane office.

The German government agreed to continue funding the third phase of rural telecommute-action project, which will expand telephone lines to rural areas.

This month saw many parts of the country flooded. the prolonged floods caused damage to 25,000 ha of rice crop and fruit plantations in 200 villages of nine provinces.

The government of Japan agreed to fund the construction of the third bridge across the Mekong River in Pakse, Champassak, which shares a land border with Thailand.

In September, Laos and the Philippines decided to abolish visas for their diplomats.

The Asian Development Bank approved a US $52 million loan for Nam Leuk Hydropower project. The medium-sized project is located in the Phou Khaokhouay Mountain in the special zone of Saysomboune.

The 98 unearthed Buddha images found in July were stolen from the revolutionary Museum and smuggled into Thailand. A few weeks later all the stolen Buddha images were seized from a Thai stealer, and then returned to Laos by the Thai authorities.

Goods could be transported from Laos by containers through Southeast Asia as three companies, local Societe Mixte de Transport, Denmark-based Maersk Lines and US Indochina Express signed an agreement to cooperate in transporting goods by containers.

In October, experts from ten countries gathered in Vientiane to discuss a plan for the protection of Laos' intangible cultural heritage.

The 9th ordinary session of the National Assembly passed the water law and forest law.

Laos established diplomatic relations with the United Arab Emirates.

A study team on Laos plan to become an ASEAN member met government officials in Vientiane and called on President Nouhak Phoumsavanh.

A drug dealer was arrested at the Post office in Vientiane, with 844gr of powder opium hidden in face cream boxes to be sent to the USA.

In November, Laos agreed for Phnom Penh to be the location of the Mekong River Commission's head office for a five-year term in a meeting in Vientiane. Upon the expiration of the term, the head office will be moved to Vientiane.

Laos opened its first national university, known as the National University of Laos. This university has integrated seven faculties so far, which are located on five different campuses in Vientiane and the surrounding areas. With the inauguration of the national university, it is hoped that the quality of education would gradually get close to the international standards.

National Assembly President Samane Viyaket visited the Republic of the Philippines. Meanwhile, State Vice President Sisavath Keobounphanh made a trip to Italy, where he attended the World Food Summit.

A new map of Vientiane was printed.

The Chairman of the Standing Committee of the National People's Congress of China, M. Qiao Shi, visited Laos.

In another development, World Bank Managing Director Gautham Kaji came to Laos to see the progress of the environmental survey work for the Nam Theun 2 dam project, while donor countries and organizations opened a roundtable meeting in Vientiane to discuss their further support for development in the country, in particular in rural areas.

A similar meeting was also held at the provincial level in Oudomsay and Sayaboury provinces for donor countries and organizations to meet provincial officials concerned with rural development and identify for themselves what they can support.

The Republic of Korea granted aid to the Lao government for surveys on hydrology, geology and the environment, associated with the construction of a dam in Savannakhet.

The end of this month was marked with Prime Minister Khamtay Siphandone's visit to Indonesia, where he also attended the unofficial summit of the heads of state and government of the Association of Southeast Asian Nations. Another significant event for Laos was the United Nations launching support plans to Laos up to the year 2000.

December featured the opening of the '96 Lao Textile Festival, to encourage and promote the preservation of Lao culture through cooperation between the public and private sectors.

The relations and economic cooperation between Laos and Malaysia moved a step forward as National Assembly President Samane Viyaket visited Malaysia this month.

The most significant event, however, was the first-ever oil drilling in southern Laos by Laos Hunt Oil Company. The oil-drilling site is Ban Na of Sanasomboune district, about 70 km north of Pakse, the provincial town of Champassak.

At the end of the year, once again the Nam Theun 2 hydro-power project disclosed its progress to the media, in particular its implications, which the World Bank is currently considering, to support it in the form of a partial risk guarantee for the international loan package required for the project.

Also big news was the discovery of two more dinosaur fossils in Savannakhet's Atsa-phanthong district. The two fossils, herbivorous and carnivorous species, date back 130 million years, and are 6.7m long, according to French expert Philippe Taguet.

More good news for Laos was Ariane Space announced the launching of the first Lao satellite L-Star into geostationary orbit will take place in late 1997.

F Y I

We have set up our Embassy Homepage on the internet at:

http://www.laoembassy.com

This is a starting phase, your comments and suggestions are welcome.