A triangular air travel network over western Cambodia was formed as a world-class airport was re-opened on Monday in seaside resort Sihanoukville to embrace anticipated influx of foreign visitors.
The network can apparently serve to link up the kingdom's major sight-seeing spots in Phnom Penh, Siem Reap and Sihanoukville, so as to provide more selectable travel routes for those curious about this colorful country.
"The re-opening of the airport is really good for our tourism," said Thong Khon, secretary of state at the Ministry of Tourism, adding that it is part of the ministry's strategy to connect Siem Reap and Sihanoukville by airlines to encourage tourists to extend their stay to enjoy the kingdom's sandy beaches after seeing the Angkor temples.
Upon the inauguration of the Sihanoukville International Airport, a former Soviet Union-made Antonov-24 propeller-driven aircraft from Siem Reap landed on the runway in its maiden flight with 11 passengers and four crew members on board.
Currently, flights by domestic airliner PMT have started to shuttle between Sihanoukville and Siem Reap around three times a week, while the beach city's connection with Phnom Penh, some 300 kilometers away, is yet worth of air travel and can be easily handled with automobiles at around three hours' drive on the national road.
Meanwhile, said Thong Khon, there is still another option for non-domestic travelers, who can first reach Sihanoukville by marine route and then transfer to Siem Reap by airlines and, of course, vice versa.
The Societe Concessionnaire des Aeroports (SCA), a French- Malaysian joint firm entrusted to run the hub, is now in talks with several other airliners about using the airport, whose runway will be extended from the current 1,800 meters to 2,200 meters with a further investment of 200 million U.S. dollars to accommodate jet flyers such as Boeing 737 by the end of 2007, said Norinda Khek, SCA's communications and marketing manager.
By then, international routes will also be opened, thus tapping the potential of Siem Reap's already established air links with countries such as South Korea, Thailand and China to expand foreign tourists' access to Cambodia, he said, adding that SCA, a subsidiary of France's biggest construction group Vinci, is licensed to operate the hub until 2040.
The Sihanoukville airport was closed in the early 1980s due to financial difficulties. Renovation by SCA started in June 2006 to preliminarily extend the terminal and the runway suitable for propeller-driven aircraft to land.
According to official statistics, some 280,000 tourists visited Sihanoukville in 2006, up by 30 percent over 2005. Among them 60, 000 were foreigners.
In addition, tourist arrivals in Cambodia jumped more than 20 percent to about 1.7 million in 2006, bringing in 1.4 billion U.S. dollars in revenue for the government.
Each visitor was estimated to have spent some 700 U.S. dollars in Cambodia, while 300,000 local people have found jobs in the industry, according to the Ministry of Tourism, which expects to receive 3 million foreign travelers in 2010.
Source: Xinhua
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Monday, January 15, 2007
Roundup: Hub in Sihanoukville re-opened to perfect Cambodia's air travel network
Chaotic Streets of Phnom Penh update
Posted by Admin / 14. January 2007, 19:55
Sunday, January 14, 2007
China-ASEAN Free Trade Area
China and the Association of Southeast Asian Nations (ASEAN) countries signed The Agreement on Trade in Services of China-ASEAN Free Trade Area on Sunday in Cebu, the second largest city of the Philippines.
The agreement was signed at the 10th China-ASEAN Summit attended by Chinese Premier Wen Jiabao and leaders of the 10 ASEAN member countries.
The signing is another major achievement in China-ASEAN economic cooperation and trade. It will mark a key step forward in the building of the China-ASEAN Free Trade Area and lay the foundation for full and scheduled completion of the China-ASEAN FTA.
The following are some basic facts about the China-ASEAN free trade area.
On Nov. 4, 2002, then Chinese Premier Zhu Rongji and leaders of the 10 ASEAN nations signed at the sixth China-ASEAN summit the landmark Framework Agreement on ASEAN-China Comprehensive Economic Cooperation, marking the beginning of the process of setting up a China-ASEAN free trade zone.
Under the agreement, the free trade zone would be completed by 2010, and the four new ASEAN members -- Laos, Cambodia, Myanmar and Vietnam -- have been allowed an additional transitional period of five years and are slated to complete the building of the free trade area in 2015.
The China-ASEAN free trade area, which will comprise China, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, is expected to be one of the biggest free trade areas in the world.
The China-ASEAN free trade area will have a total population of 1.8 billion and a combined gross national product of 2 trillion U.S. dollars when completed in 2010.
The estimated total trade volume of 1.2 trillion U.S. dollars will make it the third largest market in the world, after theEuropean Union and the North American free trade area.
Since 2003, China and ASEAN have held consultations on agreements concerning the building of the free trade area. Beginning from July 1, 2005, China and ASEAN countries started their tariff-reducing process. The two sides will gradually reduce or cancel tariffs on 7,000 kinds of products.
By 2010, China and six old ASEAN member nations -- Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand will impose zero tariffs on most normal products, while China and the other four new ASEAN members -- Cambodia, Laos, Myanmar and Vietnam -- will do the same in 2015.
Source: Xinhua
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Villagers Oppose More Dams in Vietnam
ENVIRONMENT-CAMBODIA:Villagers Oppose More Dams in Vietnam
Sam Rith - Newsmekong*PHNOM PENH, Jan 14 (IPS) - Chao Chantha, one of 10 community representatives from the north-eastern Cambodian province of Stung Treng became agitated as officials of the Electricity of Vietnam (EVN) fielded questions at a meeting called to discuss the neighbouring country's plans to build more dams on its side of the border.
''We have no hope that Vietnam will give any compensation to Cambodian people affected by their dams,'' Chantha, 46, said on the sidelines of the Jan. 12 meeting. Cambodian activists say this was the first time in more than a decade of Nordic aid-backed hydro-planning along rivers shared by Vietnam and Cambodia that Nordic consultants and the state-owned EVN met with affected residents and non-government organisations (NGOs). ''Since 2004, we have been experiencing unnatural floods two to three times a year. We are aware that the floods are caused by hydroelectric dams built upstream in Vietnam,'' Chantha explained, referring to construction activity that started in 2003 for a series of dams in the Srepok river basin.
Chantha says that in her village in Banmei, 83 families are already negatively affected by dams across the Srepok that flows into Cambodia. For two years, releases of water have unleashed floods that caused rice plants to rot. Their livelihoods affected, most residents are being forced to go to other provinces and find work in the garment or construction industries. A few families have decided to stick it out, but their crops are ruined by repeated flooding.
Thun Bunhean, who comes from Deilo village in Lumpat district in Rattanakkiri, said: ''During last year's floods, the water flowed very fast so that we did not have enough time to prevent our cows, pigs, chickens and ducks from being carried away by the waterà and now we have nothing to eat.'' In the Rattanakkiri and Stung Treng provinces, 11,000 villagers living along the Srepok have been facing negative impacts from hydropower development of the river basin, said Bean Sokun, dialogue project officer for the Sesan, Srepok and Sekong Rivers Protection Network (3SPN). Many fear that the Srepok projects will bring the same environmental and economic impact from that others experienced from the time dam projects began in the basin of the Se San river, a Mekong tributary shared by Vietnam and Cambodia, a decade ago.
The affected villagers, including from the Yali Falls dam, are still awaiting compensation. The Srepok and Sesan rivers merge some 30 km east of Stung Treng. In August-September 2006, 3SPN, a group banded together in the wake of the adverse impact of the cross-border dams, reported that villages, houses, schools, pagodas, and roads have already been inundated by fast-moving waters from the dammed Srepok. In mid-September, over 1,000 hectares of rice fields in Rattanakkiri were submerged, the group added. But EVN vice president Lam Du Son told the 20 community representatives from Rattanakkiri and Stung Treng, NGOs and others at the meeting here that the dams in Vietnam cannot yet have caused problems to Cambodians living downstream. ''We have not yet completed the dam to curb the Srepok river's water,'' said Du Son, referring to the fact that the dam does not yet store water and does not impact flow yet.
"Last year's floods might have been caused by storms -- not the dams." Plans for hydropower projects on the Srepok river basin upstream in Vietnam include four dams -- the Buon Kuop (280 Mw), Buontua Srha (86 Mw), Srepok 3 (220 Mw) and Draylinh (28 Mw). Two other projects are at the feasibility study stage, such as Srepok 4 (70 Mw) and Duc Xuyen (49 Mw), according to Luong Van Dai, director of appraisal for EVN. Do Son's remarks did not satisfy Tep Bunnarith, executive director of the NGO Culture and Environment Preservation Association (CEPA). "What he (Lam Du Son) replied was just his ideas, it is not factual information that he collected from the people who are the victims.
In nature, floods happen in the rainy season, but recently the floods occurred in the dry season.'' While the two sides stuck to their respective positions, the fact that a face-to-face venue was held on the issue is an indicator of the gravity of the issue. The Jan. 12 meeting was actually called to take up the environmental impact assessment (EIA) report done by the consulting firm SWECO Groner with funding from Swedish and Norwegian aid agencies, Sida and Norad.
''This discussion is to strengthen cooperation between the two countries by finding ways to keep the environmental impact to the minimum -- as the speech of Prime Minister Hun Sen said, no one benefits, no one loses," said Mok Mareth, minister for environment, and vice chair of the Cambodia National Mekong Committee. ''And if after we discuss, we cannot find any way to reduce impacts, that means the impact remains serious, and that the plan (for hydropower development) would not be continued.
'' A draft version of the EIA report, Cambodian NGOs say, predicts major changes for people living along the river on the Cambodian side of the border, ranging from unpredictable water fluctuations, riverbank erosion, water pollution and impact on fish migration. The EIA report is part of Vietnam's master plan study that looks into potential dam sites in the country. But at the Jan 12 meeting, representatives of the Srepok communities sought a suspension of dam construction, compensation from dam builders, and a stop to the financing of dam projects that had no people's participation and EIA processes.
If dams are ultimately built upstream, they would like a notification system for water releases and fluctuations to be set up for Cambodian communities. "We are still concerned that the draft EIA report would get approval from the two governments when they do not agree with our recommendations on what's lacking in the report," said Bunnarith. ''Our other concern is that Vietnam would not pay any compensation to Cambodians who are the victims of the dams because when we asked Vietnam about that, they replied that hydropower development is the important agenda of the three governments (Vietnamese, Cambodian and Lao).
" EVN's Du Son pledged that his government would implement dam projects with bilateral agreements, follow international treaties, look to having the citizens of Vietnam and Cambodia gain income, reduce environment impact and improve the Srepok EIA report.
Tore Hagen, vice president of SWECO Groner, acknowledged that his Company could only manage a ‘'rapid EIA report'' on the Cambodian part of the Srepok. His team spent only a few weeks in Rattanakkiri and Stung Treng in November 2005. "To complete the EIA report, it takes at least one more year because the work force needs to research during different seasons in Cambodia," explained Hagen.
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Analysis: Congress Presses Bush on Iraq
Sunday January 14, 2007 5:01 AM
By ROBERT H. REID
Associated Press Writer
Congressional opposition to President Bush's decision to send more troops to Iraq has opened a new front in an increasingly complex war, setting the stage for political battles whose effects may be felt long after U.S. forces have come home.
The battle could well subvert administration efforts to bolster the power of the presidency, which many Bush supporters believe was undermined in the wake of another unpopular war a generation ago.
As if Sunni nationalists, Islamic extremists, foreign fighters and Shiite militias were not enough, Bush must now battle the Democratic leadership in Congress, as well as influential figures in his own Republican party, who oppose his plan to throw 21,500 more troops into the fray. The battlelines are reminiscent of the political struggles that occurred during two other unpopular wars - Korea and Vietnam.
Those half-forgotten struggles produced sweeping changes in the U.S. political landscape that persisted long after the guns fell silent.
Democratic leaders of Congress, fresh from victory at the polls in November, hope to force a vote on the Bush plan in the House and Senate, thereby isolating the president politically.
Although those votes will be nonbinding, Gov. Bill Richardson of New Mexico said on MSNBC he expects them to be followed by measures ``that restrict troop funding and all kinds of financial support for the war.''
During a visit Saturday to Baghdad, Sen. Hillary Clinton told ABC News that instead of sending more U.S. troops to Iraq, it is time to start redeploying American forces out of the country.
A showdown between Congress and the White House could have far-reaching implications not only for Iraq but for American foreign policy as well.
In the best case scenario, the prospect of an American military departure might spur Iraq's ethnic and sectarian factions to reach a political settlement to spare the nation further bloodshed. But it could also encourage Sunni and Shiite extremists to grab as much power as possible before the Americans leave.
Bush's plan is reminiscent of the furor unleashed by President Nixon's 1970 decision to invade Cambodia during the final stage of the Vietnam War.
The Cambodian incursion, as it was known at the time, occurred at a time when the U.S. public was clamoring for an end to the conflict in Southeast Asia.
In seeking to justify his decision, Nixon said the goal was to destroy North Vietnamese sanctuaries in Cambodia and force Hanoi back to negotiations.
Last week, Bush said the reinforcements were necessary to bring stability to Baghdad so that the Iraqis could reach a political agreement. Military analysts are divided over whether Bush's plan can succeed, and the administration has refrained from a detailed explanation of what it would do if it fails.
But the 1970 invasion simply drove the North Vietnamese deeper into Cambodia. Five years
later, both South Vietnam and Cambodia fell under communist rule. Nevertheless, the showdown over Cambodia cast a long shadow over American politics for a generation.
The invasion enraged Congress, triggering legislative battles that culminated in the War Powers Act of 1973 that sets limits on a president's power to wage war without congressional approval.
Although the act's constitutionality has never been fully tested in court, Congress has invoked it on several occasions, setting conditions and limitations on the use of U.S. forces in the Middle East, Africa, Haiti and the Balkans.
Vice President Dick Cheney and others have cited the 1973 law as a major element in a series of Vietnam-era legislation that have severely undermined presidential authority to this day.
However, wartime showdowns between presidents and Congress occurred long before the Vietnam conflict.
Those political struggles reflect an ambiguity in the Constitution, which grants Congress the power to declare war but includes no language defining such a de Southern states in rebellion and ordered a blockade of their ports, triggering four years of war.
Eight months into the conflict, Congress established a joint committee to oversee the war, holding hearings into Union failures on the battlefield at a time when the very survival of the nation was in peril.
Critics complained at the time that the committee used newspaper leaks to discredit some of Lincoln's generals, undermining Northern morale at a time when Union victory was by no means certain.
Similar complaints were raised again during World War II when a little-known senator from Missouri, Harry Truman, chaired a committee investigating military waste and fraud.
Critics accused Truman of undermining the war effort. But his committee was credited with saving billions of dollars by uncovering waste and war-profiteering.
Truman's efforts won him the Democratic vice presidential nomination in 1944 and propelleduth Korea to block an invasion from the communist North. Public support for the war waned after China entered the conflict, which bogged down in a stalemate. The war became so unpopular that Truman decided against seeking re-election in 1952.
Republican war hero Dwight D. Eisenhower won the White House after promising to halt the fighting, which ended with a cease-fire on July 27, 1953.
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Khmers rely on British defence
She said the rules ensure that verdicts can only be reached unanimously or by a majority including both the Cambodian and foreign judges.
Saturday, January 13, 2007
Thailand calls for action on Burma
(BangkokPost.com, Agencies)Cebu, Philippines
The failure of a US resolution condemning Burma at the United Nations means Southeast Asian neighbours will have to deal with the dispute, Foreign Minister Nitya Pibulsonggram said."I think we should perhaps redouble our efforts to see what we can do to help one another in terms of keeping this matter - give it a regional focus the way it should be - rather than to have it internationalised," he said.
The 10-member Association of Southeast Asian Nations, currently holding its annual summit on the central Philippines island of Cebu, declined to take a position on the US resolution. Indonesia abstained on the resolution, but both China and Russia used their vetoes.China was tight-lipped about Burma's crackdown on pro-democracy activists here at the Asean and East Asian summits. But Beijing was quick to direct criticism at Washington's resolution, which it said did not warrant Security Council attention.
"The situation in Myanmar does not constitute a threat to regional and international peace and security," Chinese Foreign Ministry spokesman Liu Jianchao said in Beijing, according to the official Xinhua news agency on Saturday. "If the Security Council passed a resolution on the (Burma) issue, that would have exceeded the duties of the Council laid out in the United Nations Charter." The US resolution urged Burma to release political prisoners, move toward democracy and stop attacks against minorities, many of whom are used for forced labour.
Earlier this week, Asean foreign ministers told member-state Burma it must make more progress on its "roadmap" for national reconciliation and democracy. But critics of Burma's hardline rule said the time had come for firmer action from international organisations. "I think the United Nations' human rights council has been examining this issue closely for over a decade, but there has never been any result. That's why we need the Security Council," Debbie Stothard of the Alternative Asean Network on Burma told the Reuters news agency.
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Ex-Khme Rouge denied genocide
Jan 12, 8:11 AM (ET)
PHNOM PENH, Cambodia (AP) - A former Khmer Rouge leader denied in an interview published Friday that the regime whose extremist policies wiped out much of Cambodia's population in the 1970s committed mass murder.
Nuon Chea, 80, who was second only to Khmer Rouge leader Pol Pot, is expected to go on trial before a joint Cambodia-United Nations tribunal later this year on charges of genocide and crimes against humanity.
"Why should we have killed our own people? I do not see a reason," the English-language Phnom Penh Post quoted him as saying. "We wanted a clean, illuminating and peaceful regime."
An estimated 1.7 million people died as a result of the 1975-79 communist regime. Some were executed, while others died of starvation, disease and overwork.
None of the leaders have been held accountable for the atrocities. Pol Pot died in 1998, but Nuon Chea and several other top deputies still live freely in Cambodia.
Nuon Chea also said any documents linking him to the regime's crimes "were manipulated," including photographs of human skulls.
"Those photographs with skulls now being presented do not mean a thing. Modern technology can do this," he told the Post, a biweekly published every other Friday.
The comments outraged Youk Chhang, a Khmer Rouge survivor and leading genocide researcher, who called Nuon Chea "disrespectful and arrogant."
"The Khmer Rouge did not regard us as humans. They took away our love, our family, soul, belief. We were not humans in their eyes. We were their enemies," Youk Chhang said.
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UN, Cambodia dig into Vietnam's human trafficking control policy
Delegations from UN agencies and Cambodia flocked to Vietnam for a conference to exchange experience with the host in implementing the Governmental programme on preventing and fighting cross-border women and girls trafficking.
The two-day conference was wrapped up in the southwestern border province of An Giang on Jan. 12, with a call to strengthen cooperation between the United Nations Children's Fund (UNICEF), the International Organisation for Migration (IOM), Cambodia and Vietnam on this issue.
Cambodian participants said they have learnt a lot from the Government of Vietnam in the implementation of relevant policies such as its 130/CP programme and the neighbouring province of An Giang in implementing these policies, from receiving and taking care of victims and taking preventive measures.
The senior Cambodian Governmental delegation and UN agencies' representatives also paid field-trips to pilot projects in Chau Thanh and Tan Chau districts, where victims have been given help to reintegrate into the local community. (VNA)
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Countries move to narrow gap between ASEAN members
Friday, January 12, 2007
Onwards and Upwards for Hun Sen
As 2006 drew to a close, Prime Minister Hun Sen could look back on the year as one of continuing success as he consolidates his position as the currently unchallenged political leader of Cambodia. Four years ago, in December 2002, he boldly stated that he would like to rule for a further ten years, and nothing in recent times appears likely to prevent him having his wish. At the same time his Cambodian People's party (CPP) has no reason to believe that it can be challenged as the kingdom's leading party as it begins to prepare for the elections due in 2008.
In particular, the closing month of 2006 witnessed the further political decline of his potentially most important opponent, Prince Norodom Ranariddh. It has been clear for some time that Ranariddh's leadership of FUNCINPEC (the United Front for an Independent, Neutral and Cooperative Cambodia) was increasingly tenuous. Party members were critical of Ranariddh's prolonged absences from Cambodia and of his very public infatuation with a new mistress.
Whether it was clear to Ranariddh, or not, a combination of dissatisfaction with his leadership and a readiness on the part of senior FUNCINPEC members, including notably the party's Secretary-General, Nhiek Bun Chhay, to contemplate working more closely with the CPP, ultimately sealed his fate.
On 18 October, at a special party congress, FUNCINPEC stripped Ranariddh of his party leadership, replacing him with the Cambodian ambassador to Germany, Keo Puth Reasmey. As a sop to Ranariddh the congress awarded him the title of 'historic leader.'
Ranariddh and his dwindling band of supporters have now formed a new party incorporating his name, but it seems proper to conclude that they will struggle to overcome the coalition that has now been cemented between the CPP and FUNCINPEC.
Meanwhile, Sam Rainsy and his eponymous Sam Rainsy Party (SRP) seem unable to play much more than a gadfly role. Despite having returned to Cambodia from exile, following his being granted a pardon by King Sihamoni after Rainsy apologised for his attacks on both Hun Sen and Ranariddh; and, stating that he could now work in harmony with the government, he has reverted to form as a vehement critic. Having denounced the results of the village chiefs elections held in June, in which the CPP won 99.5 per cent of the vote, Sam Rainsy went on to compare Hun Sen's rule to that of Robert Mugabe in Zimbabwe and then, in August, to say that, 'The CPP regime is the continuation of the Khmer Rouge regime. There is no difference between the two regimes.'
During the year, there were, of course, various developments that can be cited as reflections of Cambodia's far from perfect political system. These include the dubiously legal eviction of squatter communities from prime development land in the capital; the allegations of serious corruption and malfeasance made by the former Under-Secretary of State at the Ministry of the Interior, Hen Pov, who fled Cambodia in July and, at the time of writing was fighting extradition in Malaysia; and, the allegations made by Human Rights Watch of deliberate government interference in the preparations for the much-delayed Khmer Rouge Tribunal (the Extraordinary Chambers of the Courts of Cambodia).
Yet none of these issues has prevented Hun Sen and the CPP remaining in power. What is more, and reflecting the international community's concern to support the government, against the possibility of any alternative being worse, the Cambodia Consultative Group gave the kingdom an increased aid guarantee of US$601 million when it met in March. This was followed by China's providing an almost matching sum of US$600 million at the time of Premier Wen Jiabao's visit in April, a gift as Hun Sen has pointed out that came without 'strings'. Then, in November, when Hun Sen was visiting China, Wen Jiabao gave him further assurances of China's intention to increase its aid.
Economically, Cambodia has survived better than many observers predicted, not least it has successfully weathered the 2005 cut-off of the Multilateral Fibre Agreement as the garment industry has undergone labour market reforms that have enabled it to increase market share.
Although the country will continue to be dependent on aid for the foreseeable future, both the IMF and the ADB have commended the administration for maintaining sound macroeconomic stability. What is more, the discovery of commercial quantities of oil and gas in Cambodian waters in the Gulf of Thailand promise the possibility of diversifying the economy's present reliance for revenue away from the garment and tourist industries.
It is just as well that there are reasons for optimistic judgments to be made about the future of Cambodia's economy, since the challenges that lie ahead are enormous. None are more challenging than those associated with Cambodia's demographic profile and the implications it has for politics and the economy in the future. Today, 70 per cent of the population are aged under 30 years of age, and 52 per cent under 18 years. As an ever-growing number of young people are coming onto the labour market, it is currently estimated that there is a need to find 200,000 new jobs each year. For those who have completed some form of tertiary education, the estimate is that only one in nine of the 8,000 students graduating each year is able to find a job. These statistics are a sobering qualification to the political success that Hun Sen has achieved through the year and are just as important as the legitimately expressed concerns of human rights groups about the continuing culture of impunity and pervasive corruption that exist in the country.
WATCHPOINT: As has been the case for several years, any development that has the capacity to bring Hun Sen's leadership into question would be a significant development. (The fact that it is not possible to be more specific is a reflection of the power of Hun Sen's current situation.)
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Researchers call on Cambodia to enrich exports
Researchers from the Cambodian Economic Institute have called on the government to enrich and expand the kingdom's exports, which has enjoyed a rapid growth but with limited types of products.
Cambodia's volume of exports rose to 3 billion U.S. dollars in 2005 from 1.4 billion U.S. dollars in 2001, while its dominating portion went to textiles and other products only shared a little contribution, according to a seminar held by the institute here on Thursday.
For example, in 2005 as the exports amounted to 2.9 billion U.S. dollars, textiles accounted for 2.29 billion U.S. dollars or 79 percent, while formal agricultural products 3 percent, informal agricultural products 13 percent and transit trade products 5 percent, the seminar quoted the statistics from the country's central bank as saying.
Therefore, Cambodia has to enrich and expand the variety of its export products in order to tap the overall potential of its producing capability and balance any risk arising from the current monotony, analysts said at the seminar.
Tourism and textiles or garment have been Cambodia's major pillars of foreign currency attractions since it embarked on the road of market economy some 10 years ago.
Source: Xinhua
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Thursday, January 11, 2007
Is Southeast Asia Becoming China's Playpen?
China never had to exert massive military might or economic investment to gain influence in Southeast Asia. After the US extended diplomatic recognition to the mainland in 1972, members of the Association of South-East Asia Nations (ASEAN) followed suit. During the Cold War, the US aimed to dilute Soviet influence in the region and encouraged collaboration. With the US increasingly distracted in the Middle East, China has deepened its roots in Southeast Asia through extended engagement and economic diplomacy. “China has gained its influence in Southeast Asia less by ‘muscles’ and more by skillfully exploiting changes in the international and regional environment, absent any wise and strong US engagement with the region,” writes Singapore-based analyst Sheng Lijun. As the ASEAN summit convenes in the Philippines, members remain divided about the balance of power in the region: Some welcome China’s growing influence, while others long for a US counterweight. ASEAN expects to be the driving political force in Southeast Asia, so the two powers must likewise pursue balance, neither pushing too hard nor neglecting the region. – YaleGlobal
As China gains strategic advantage in Southeast Asia, the region seeks balance
Sheng Lijun
YaleGlobal, 11 January 2007.
Southeast Asia, here we come: Chinese Foreign Minister Li Zhaoxing arrives in the Philippines for a summit meeting with ASEAN leaders, where China's profile is rising.
SINGAPORE: China’s diplomatic success in Southeast Asia has often been fortuitous. Changes in the international and regional strategic environment, together with US absent-mindedness and negligence of the region, have played a major role in a closer embrace of China and Southeast Asia. History shows how the international as well as the regional strategic landscape can change overnight.
That happened with US rapprochement with China in 1972, forcing Association of South-East Asia Nations (ASEAN) nations such as Thailand, Malaysia and the Philippines to swiftly change their respective policies on China and establish diplomatic relations with Beijing, despite no fundamental changes in China’s Southeast Asia policy and no massive increase in China’s military muscle and economic attractiveness.
When Deng Xiaoping stepped into power in 1978, eager to open China up and push into Southeast Asia, a blessing in disguise soon followed – Vietnam’s occupation of Cambodia from 1979 to 1989. China made good use of this “occupation” and effectively kick-started its initial cooperation with ASEAN. This engagement, lasting more than a decade, laid a solid foundation for relations in the subsequent years. The US, concerned about Soviet influence in the region, acquiesced and even encouraged this strong engagement. Once again China succeeded in going deeper into Southeast Asia without massive increase in its military muscle and economic attractiveness.
Just as ASEAN put the Cambodia issue onto a backburner, the Cold War ended and new uncertainties emerged in the region. Deciding against a passive wait for changes, ASEAN took the initiative and actively pursued engaging all the major powers in the region. Up until the end of the Cold War, ASEAN attempted policy that would push all extra-regional big powers out of the region. Realizing that it was impossible to push them out of the region, ASEAN, from the 1990s, began what it called “constructive engagement” with all of them. Under the policy, major powers balance one another while ASEAN is the primary driving force for a constructive balance. For this purpose, ASEAN needed China’s political backing to play its role as the primary driving force in this process. Under this backdrop, China scored an easy diplomatic success by building its first official ties with the ASEAN grouping in 1991.
The ASEAN-China relationship in the early was tentative at best. Not long after came a big push: the Asian economic crisis in late 1997. While the US, for its own reasons, was slow to come to rescue, China readily responded to ASEAN’s acute need, with an immediate promise not to devalue its currency, the Renminbi, and further destabilize the region. By November 1997, the lukewarm relationship evolved to the level of annual ASEAN+China summits.
This momentum receded as ASEAN countries withstood the shockwaves of the economic crisis, but then came another boost: The 9/11 terror attacks, which plunged the US into a seemingly endless war against terrorism. The increasing focus of the US on homeland security, Central Asia and the Middle East was accompanied by a negligence of Southeast Asia. In 2001, China made a diplomatic masterpiece by proposing a free-trade agreement with ASEAN to accelerate its cooperation with ASEAN, thus maintaining and even building its momentum in Southeast Asia.
The brief examination of recent history tells us that China has gained its influence in Southeast Asia less by “muscles” and more by skillfully exploiting changes in the international and regional environment, absent any wise and strong US engagement with the region – together providing strong “pulls” for ASEAN toward a China that is more than willing to “push” into the region.
Many observers have noted only the Chinese “pushes” without seeing ASEAN’s “pulls” and their strategic background. Without such “pulls,” however, China’s “pushes” will not get far and may backfire. Take the warming in China-Indonesia relations for example: The two nations have declared each other as strategic partners, which may have a lot to do with Muslim Indonesia’s intention to use China to balance the excessive US pressure against Islamic extremists in the country.
Indonesia’s overture to build defense ties with China and buy Chinese weapons can be interpreted as a tactical rather than a strategic re-orientation, a means to pressure the US to lift its arms embargo on Indonesia.
Myanmar and Cambodia both have close relations with China. In the case of Myanmar, the US has chosen not to engage with its government, likewise rejecting trade or investment. US trade sanctions and embargo against Myanmar still stand. China is Cambodia’s top investor and trade partner. The US, for political reasons, still has no significant trade or investment in Cambodia. If the US changes its policy and prioritizes these two countries, China may find it difficult to maintain its primacy there.
While there is less public talk of a “China threat,” Washington can take some comfort from the fact that distrust of China remains deep-rooted in the region and may grow if a rising China enters too deep. ASEAN countries have not joined the China bandwagon but “hedge,” engaging China while developing robust ties with the US and other extra-regional powers to balance China. Asian countries generally do not have much trust for one another and the US is perceived as the least distrusted of all major powers. Asian nations need the US as a balancer and double insurance when they develop their relations with China. ASEAN is aware that without a strong relationship with the US, China may take ASEAN for granted.
A vigorous but balanced relationship with the US is seen as not only security insurance but also an incentive for China to offer more economic sweeteners. Barring a sudden and major change in the international strategic landscape and a disaster in US Southeast Asia policy that would unexpectedly boost China’s influence by default, the more China pushes in deepening its relations with ASEAN, the more ASEAN may feel that it needs a strong relationship with the US and other extra-regional power to keep the balance.
The US is, thus, still favourably poised to keep and enhance its position in this region. However, as illustrated by recent history, success depends less on “muscles” and more on “brain” that can quickly exploit any changes in the strategic environment, less on how many resources a country has but on how much it is willing to spend. Washington does not lack the resources, but the willingness to use them profusely for the region, at least for now.
How deep can China push into Southeast Asia? At the moment, there is an active balance in the region, and any power that seeks dominance will likely push other powers, together with ASEAN, into a stronger resistance to maintain this balance. Any success China has in pushing further is less likely due to its growing “muscles” but more due to an ever-changing international and regional strategic environment that may suddenly multiply those “muscles” for a much deeper penetration. In this sense, continued US negligence of the region and absent-mindedness to the ever-changing strategic environment in the region will cost it dearly.
Sheng Lijun is a senior fellow of international relations at the Institute of Southeast Asian Studies, Singapore.
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Microsoft donates 100,000 USD to ECCC in Cambodia
Microsoft Singapore, part of U.S. computer giant Microsoft CorpCK, donated 100,000 U.S. dollars to the U.N. side of the Extraordinary Chambers in the Courts of Cambodia (ECCC), local media said on Thursday.
"It would be nice if there were more," Helen Jarvis, chief of public affairs at the ECCC, was quoted by the Cambodia Daily as saying.
The fund was put toward the court's general operating budget, ECCC public affairs officer Peter Foster said. "It came with no strings attached," he added.
This is the first donation from a private company to the court, the paper said. The tribunal still faces a budgetary shortfall of nearly eight million U.S. dollars, most of it on the Cambodian side, it added.
After six years of talks, the U.N. and Cambodia agreed in 2003 to set up the ECCC to jointly hold trial of the former Democratic Kampuchea (DK) leaders. Formal trial is expected to begin in mid-2007 and the entire process will take three years at the cost of 56.3 million U.S. dollars.
The DK ruled Cambodia between 1975 and 1979 and was accused of being responsible for the death of 1.7 million people.
Source: Xinhua
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Parents offer $20,000 reward for information about a missing son
Student Eddie Gibson was 19 when he went missing on a trip to Cambodia in October 2004. Now, his devastated parents have returned to the country to offer a $20,000 reward for information. Here, his mother Jo, 52, tells of her heartache.
Jo, ground crew for British Airways, lives in Hove, Sussex, with her second husband, Tony Clarke, a 51-year-old businessman. She has two other sons, Elliott, 28, and Max, 18:
My happy life as Jo Gibson-Clarke, mother of three gorgeous sons, ended and another began at 7.15pm on November 1, 2004. I was standing with my former husband, Mike, waiting for our teenage son, Eddie, to return from a trip to Cambodia.
Waiting in the arrivals hall at Heathrow for Eddie to run into my arms, I could barely contain my excitement. But the minutes passed and the stream of back-packers gradually reduced to a trickle. Then the doors swung shut.
All the passengers had arrived - and Eddie wasn't there. It is almost impossible to describe the waves of shock and terror that ripped through me. Every day since then has been a living hell. I miss Eddie with a passion. His loss has ripped a hole in my heart that nothing can fill.
I hope he's alive, but as each day passes I know that's increasingly unlikely. But until his father and I know for certain what has happened to Eddie, we can't rest.
Now, when I hear mothers blithely planning their teenage children's gap years, my stomach churns. As they muse over the exciting challenges and mind-expanding experiences offered abroad, I want to scream: 'No, no, no.' Are they totally blind to the potential dangers?
When Eddie set off excitedly to the Far East before starting at Leeds University, I was every bit as naive and trusting. His friends were all doing the same thing. In my innocence, I even looked back to my own youth and recalled weeks spent Inter-Railing around Europe with two girlfriends.
But, as I've discovered, travelling around Europe is utterly different to backpacking around one of the most deprived areas of the world, where drugs are rife, foreigners are exploited for their money and life is cheap. If parents could see the truth - as I've been forced to - they'd think again.
Though Eddie came back safely from his gap year, he found it impossible to settle. Three weeks after starting university, he secretly withdrew £3,000 from his bank account and booked a flight to Bangkok. When we eventually spoke to him, he told us he was returning in three weeks. We haven't seen him since.
Today, I'd give anything to turn back the clock. Until Eddie left home, his life had been utterly charmed. In fact, I used to worry that he had almost had it too easy. He wasn't just good looking - 6ft tall with a smile that melted hearts - but charming and talented.
Sadly, Eddie's father Mike, 61, and I separated when Eddie was 11 and divorced in 2000. However, we are still extremely close. Eddie saw his dad regularly and Mike even came around every Sunday for family lunch.
I've agonised over whether Eddie was affected by the divorce, but I honestly don't believe he was. When I remarried, he was delighted to find himself with two stepbrothers - Tony's sons Jeremy, 21, and Matthew, 20.
Eddie was good at everything. Moving from his private prep school to Cardinal Newman School, Hove, and then on to Brighton and Hove sixth form college, he excelled at rugby, tennis and swimming while managing to get excellent levels.
He was always so focused. He knew what he wanted of life and went for it. were thrilled when he got a at Leeds University to read international management and Asian-Pacific studies. And when suggested a gap year, Mike and agreed happily.
Eddie was already well-travelled. We had taken family holidays every-where from South Africa to Cuba, Eddie was so sensible and resourceful that we didn't worry him. So in late 2003, he left Australia and the Far East with gang of seven friends, including stepbrother.
Tony and I joined him in Australia in January 2004, two before his 19th birthday. They were among the happiest days of my life. I took Eddie to the hairdressers - he wanted a few highlights. He was so hand-some and charming, all the stylists clustered around him. I felt immensely proud.
Later, we lunched beside Sydney Opera House and talked and talked. He was my son, but he also my friend. He held my in his enormous hands. It so sweet. When Eddie returned home May, he filled his room with souvenirs - Buddhas, candles and photos. He'd kept a diary and had taken hundreds of photos, which he loved to show us. He spent the rest of the year helping Mike at his commercial finance business.
I worried that after such an intense and exciting time, Eddie would find it hard to settle back down to his studies. But he reassured me that he'd learned the value of education and was determined to get a good degree. 'The people I've met in Cambodia are the poorest in the world, but they're also the kindest and happiest,' he told me. 'But I know that I need more in my life - and for that I need a degree.' Although money wasn't his priority, he talked of going into business.
So on September 15, 2004, I drove him to Leeds and settled him into his room. When I kissed him goodbye, I was convinced he was starting one of the best chap-ters of his life. He seemed so happy and excited about the future. How could I have guessed I'd never see him again?
I still don't know what happened in the next few weeks. No one does. Eddie wasn't naturally secretive, but once he was focused on something, he was single-minded. He didn't even tell his old schoolfriend, Josh - a room mate - that he was unhappy.
But one Sunday night, just a few days before he left, he rang me. 'I just want to hear your voice, Mum,' he said. I was touched but surprised. A few days later, he rang again and said he wasn't getting on very well with part of his course and was considering swopping. He was always so capable and sensible that I didn't worry unduly. But we now know he had already made up his mind: he was going back to Cambodia.
Preparing the way, he rang Mike and me to explain the battery was low in his mobile phone and we might not be able to reach him for a few days. Then, on October 4, he took a flight to Bangkok via Dubai, due to return on November 1. Once in Bangkok, he quickly moved to Cambodia, crossing the land border at Poipet - though, of course, we didn't know that then.
We only realised our son was missing when he failed to ring. His room mates hadn't seen him. He hadn't breathed a word. We were frantic.
Then, on October 20, I got an e-mail out of the blue from Phnom Penh. Reading it, I was horrified, but relieved. At least he was safe - or so I thought. He explained that he was terribly sorry to disappoint us, but that he'd realised after only one week at university that it wasn't for him. He felt he had to sort out his life and would be coming back home on November 1. He even gave me the flight number. I e-mailed back, reassuring him I wasn't angry, but making him promise he'd never, ever scare me like that again. Did he ever even read my e-mail? I don't know.
I heard once more from him, on October 24, when he sent another e-mail saying that he was coming home - then nothing. When he failed to arrive on the flight, we hoped against hope there'd been a mistake. We expected a knock on the door any second. Every time I heard a car draw up, I ran to the window. But it was never Eddie.
At first, the police refused to take us seriously. After all, Eddie was 18 and, supposedly, a seasoned traveller. But we knew it was totally out of character. We were so anxious that in December that year Mike flew out to Cambodia with Eddie's brother, Elliott, to try to find him. We've been out several times since.
Last June, British police even sent out a team - but no one has been able to find anything. We simply cannot rest until we know what has happened to him. Even if Eddie is dead, it will be better than living in this terrible limbo. That's why Mike and I have come back to Cambodia. We've had a private investigator on the case for two years, but he's uncovered nothing useful.
Now we're offering a $20,000 reward for information. That's a fortune in a country where the average policeman earns just $300 a year. We desperately hope it will tempt people to tell the truth. Someone must know something.
Being here is incredibly difficult. Eddie adored the country - and trusted the people implicitly. But I look around and all I see is danger. Scratch the surface and it's there. I've toured beaches, bars and backpackers' hang-outs and been horrified by the scenes. Do these kids' parents have the faintest idea what their children are up to? British teenagers are stoned out of their heads on cheap, potent drugs. Heroin, marijuana and metham-phetamines known as yabba or 'Nazi speed' are as cheap and easy to come by as cigarettes.
The British Ambassador has told us that every year tourists are found dead in their hotel rooms, killed by drugs which are more powerful than they bargained for. There are also tales about Cambodian 'taxi girls' - locals who make themselves available to the Western men for the duration of their stay - turning the tables on their clients and keeping them high on yabba while relieving them of their cash.
I am convinced that Eddie wasn't into drugs. Video footage we have seen of him just eight days before he was vanished taken by Ami - a local girl whom Eddie befriended - show him looking as clear-eyed as ever. Besides, Eddie hated being out of control and rarely even got drunk.
He was so health-conscious that when he helped me by doing the weekly shop, he'd return with loads of fruit and vegetables — not the usual biscuits and crisps most teenagers are into. Even his bed-room was neat and tidy.
My greatest fear is that someone killed him for his money. Eddie arrived with £3,000 — enough to feed a family for ten years in Cambodia. I don't know how discreet he was. Life is cheap: Cambodia's recent history of disorder and death during Pol Pot's regime has hard-ened people. The first time a kindly local explained that Cambodians would not think twice about killing my son for his money and then sim-ply burying the body, I felt sick. Now I suspect it's the truth.
Ami told me she loved Eddie — they met at a tourist bar - and was surprised when he disappeared without a word.
When her father died while Eddie was in Cambodia, knowing money was short, Eddie paid for his funeral - a gesture of typical generosity. We even have a video of him at the funeral, eight days before he disap-peared, looking fit and well.
It would be tempting to suspect Ami, but having visited her humble shack, I can see her life hasn't changed. If she stole from Eddie, where has the money gone? We have found records of Eddie booking into various hostels and I've spoken to the guide who helped him cross the border from Thailand, but no one can shed any light on why he didn't get on that plane back home.
We know that the border area between Thailand and Cambodia is particularly lawless, notorious for drugs, prostitution and gambling. Did someone murder Eddie hours before he was due to catch his flight home to safety? I just don't know.
We've had e-mails from students returning from the area, saying they think they met Eddie, and every time my hopes rise. They e-mail photos but then, as the images download, they're not Eddie - and I feel I've lost him all over again. There should be a health warning on countries like Thailand and Cambodia. If you want to go some-where and be unaccountable, it's the ideal place because there are no rules. Most visitors return safe and well, but when something goes wrong there is no safety net.
Eddie believed himself so resourceful - but he was a nice, middle-class boy from Sussex and had been wrapped in cotton wool all his life. What did he really know of the world? I try not to blame myself, but I look back at how calmly I let Eddie leave for the Far East and I feel like screaming. We haven't changed his room: it's still full of his souvenirs from Thailand and Cambodia. I treasure them for his sake. Eddie will be 22 on January 26. We won't celebrate, but we will mark the day with a small family party — as we did for his 21st. It's very hard.
We all grieve in different ways. His elder brother Elliott is convinced that Eddie has been murdered and feels we should all move on. For my part, I am in limbo. I gave him life, I loved him: I can't rest until I know what's happened. I carry his photo in a locket around my neck.
I cling to the hope that one day Eddie will walk through the door, with a huge smile on his face and a wealth of stories. If I didn't believe that, I'd go mad.
• If you have information or want to find out more about Eddie, go to www.missingpersons.org or phone the Missing Persons Helpline on Freephone 0500 700 700.
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Gun Play for Tourists a Remnant of Cambodia's War-Torn Past
09 Jan 2007 World Politics Watch Exclusive
PHNOM PENH, Cambodia -- For the cool price of $555, Lan Kosal will escort a client to a remote location in the Cambodian countryside to blow up a cow with a rocket-propelled grenade launcher, a grizzly form of entertainment popular among some backpackers visiting this poor Southeast Asian nation.The use of the Soviet-era launcher and its artillery is the relatively inexpensive part of the package, said Lan. "The real cost is the cow. You have to buy it before we let you kill it," he explained matter-of-factly.
Many tourists, he noted, aren't interested in firing bazookas at bovines or tossing hand grenades at a flock of chickens, another ghoulish attraction offered from the Kambol firing range he manages just outside of the Cambodian capital. Most just want the opportunity to fire a few dozen rounds from Cold War stalwart weaponry like the Russian AK-47 -- a favorite the world over among developing nations' armies and rebel and paramilitary groups alike -- or the U.S. M-16. Each is readily available for target practice and reasonably priced for firing ($30 for a 30-round clip) at the Kambol Shooting Range. So are Uzis and an array of handguns, even a Thompson machine gun made famous as the weapon of choice among American gangsters during the heyday of Al Capone and prohibition.
All manner of firearms are priced on the range's neatly laminated "menu" from which the everyone from the merely gun-curious to the arms enthusiast can choose. According to Lan, his stockpile is a remnant of decades of conflict, dating back to the days of World War II when Japan occupied the country. By the mid-1960s, Cambodia had allowed the North Vietnamese to set up bases within its territories, from which they launched attacks on the U.S.-backed southern Vietnamese forces.
By the early 1970s, the tables had turned. Cambodia was now fighting against the forces of communist North Vietnam while also combating communist Khmer Rouge guerrillas. In 1975, when the Khmer Rouge wrested control of the country and began its genocidal campaign to eradicate nearly 2 million people, the country was awash in weapons. Now, some 30 years later, the weaponry that shaped Cambodia's violent past has resurfaced in ranges like Kambol and a handful of others near Phnom Penh.British backpacker and gun novice Tom Janson shook his head in disbelief while perusing Lan's stockpile, before settling on an AK-47.
"You can't go anywhere in England and do something like this," said Janson, who showed solid marksmanship while firing from 50 yards at paper targets emblazoned with a man's head and torso. By Cambodian government accounts, you can't do it here either. Government officials have repeatedly denied the existence of the firing ranges operating around the capital, claiming they have been closed for nearly a decade.
The most recent edition of the Lonely Planet travel guide to Cambodia notes that officials here decided "enough was enough" and that shooting ranges were no longer conducive to prompting the peaceful image the country has been cultivating after years of killing. The guide's account coincides with a law passed in 2005 regulating the use of weapons, which states that only the Ministry of the Interior and the Ministry of National Defense are permitted to operate firing ranges.
However, Lan told World Politics Watch that the government is aware of his operation and that soldiers from the nearby army base use his range for target practice in the morning. He also said that the government takes a percentage of his profits, a claim refuted by officials when questioned. Whether the government is profiting from tourists looking to pop off a few rounds or kill farm animals is a minor concern for many Cambodians, who are grateful the government has made weapon eradication a priority of late. Since the late 1990s, Cambodia has made a concerted effort round up the hundreds of thousands of illegal weapons littering the country.
Some 130,000 weapons have been collected and more than 180,000 destroyed, said the Geneva-based Small Arms Survey in their 2006 country report on Cambodia. The effort has paid off according to the country's English-language newspaper, the Phnom Penh Post. The paper has reported that the use of firearms in all acts of violence declined from 80 percent in 1994 to 30 percent in 2004.
Despite that success, arms eradication groups aren't keen on gun ranges like Kambol operating outside the law."Foreigners firing these weapons, it is illegal and it undermines the laws in place," said Prak Tepvichet, director of the Phnom Penh office of the global Working Group for Weapons Reduction."It's a problem of law enforcement," he said. It might be illegal, but for tourists seeking thrills, it's a chance to unleash a whole lot of heavy firepower.
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Monday, January 08, 2007
Cambodian daily hails economic development in Vietnamese province
10:59 08/01/2007
The Light of Cambodia, one of the largest dailies in Cambodia, has recently carried an article, highlighting Viet Nam’s southern province of An Giang for “Tra” and “Basa” farming.
The paper hailed the socio-economic development in An Giang with two key products; fish and rice; saying the export of Tra and Basa catfish contributed most to the province’s export turnover of about 400 million USD in 2006.
The paper elaborated that the province was farming fish in about 3,200 cages, exporting 190,000 tonnes of fish a year in addition to 2.9 tonnes of food in paddy equivalent. Also in 2006, An Giang’s GDP growth rate reached 9 percent.
The province has a population of 2.2 million living in 11 districts, including four districts bordering Cambodia, and has two international border-gates with Cambodia.
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DJ: Plantation Companies Rush Abroad To Secure Land
8/01/2007 By: By Matthew Walls
Despite swelling coffers thanks to soaring commodity prices, Asian plantation companies can't find enough of the one asset they need most - land. Shortage of land at home is fundamentally changing the way these companies plan future expansion, in the process benefiting countries which still have arable land in plenty.
Advertisement"The Chinese, the Vietnamese, the Thais, the Malaysians are all interested in planting (rubber) in other countries, because land is not available in their own countries," says Hidde Smit, secretary general of the International Rubber Study Group.
China's Hainan State Farms, for example, has established a rubber nursery in Myanmar as a first step and plans to develop 300,000 hectares of rubber plantations in Laos and Myanmar in less than ten years, with a total rubber output estimated around 500,000 tons. In November, the state-owned Vietnam Rubber Group said it would lease 50,000 hectares of land in Cambodia to grow rubber, starting 2007. That area could be doubled in four years. This follows upon another investment in Cambodia in April by Hainan State Farms, which leased 62,659 hectares of land, at a cost of CNY1 billion ($12 7 million), to grow rubber.
In the Philippines, two provincial governments from China plan to develop 200,000 hectares of land for rice and corn cultivation and another 40,000 hectares for a bio-fuel crop such as cassava or sugar cane. And in Indonesia, Malaysia's Sime Darby, now in the process of merging with two other state-owned palm oil giants, is working to double its land bank to 200,000 hectares by 2008. "The biggest reason Malaysian companies come to Indonesia is land," said Witjaksana Darmosarokoro, director of the Indonesian Palm Oil Research Institute.
What began as a trickle is now a steady flow, expected to continue for years given the rising demand for these commodities. While observers say it is difficult to foresee the scope and speed of this outward investment, none doubt the growth of foreign-owned plantations will boost output in general while shifting a significant proportion of production to lower-cost countries.
Strong Demand, High Prices Spark The Scramble The rush to get trees into the ground as quick as possible began a few years ago but is accelerating now as commodity prices are at levels unseen in years or even decades in some cases. With oil prices hovering above $60 a barrel, palm oil's potential as a biofuel, for example, has greatly expanded the scope for its use. Natural rubber supply, meanwhile, is expected to see a deficit in the next 6-10 years.
Demand for other commodities, such as sugar cane and corn which are linked to biofuels, has also risen with the run-up in oil prices. Palm oil prices are currently around MYR2,000 a metric ton, the highest level since 1998 when prices averaged MYR2,377. Natural rubber futures, meanwhile, rallied to a 26-year high in July during a supply crunch. While some of those gains have been surrendered since then, a widely expected supply deficit for the next 6-10 years will keep its prospects buoyant, analysts say.
To capitalize on these favorable trends, plantation companies need to find and develop land quickly, but this is becoming increasingly difficult at home. Land suitable to grow rubber and oil palm, for example, is either saturated, as in China, coveted by real estate developers, or fragmented into small holdings, as in Malaysia, making consolidation into economic holdings difficult. That has forced investors to look at countries so far considered risky investment destinations. "The big problem is that the belt in which rubber grows is politically unstable," said industry veteran George Sulkowsky, managing director of Centrotrade, a rubber dealer with offices in Europe, the US and Southeast Asia.
Decades of isolation brought about by wars in Cambodia and Africa, autarchy in Myanmar and political upheavals in Indonesia and the Philippines have until recently kept most investors away from the plantation sector in these countries. But that has also left these countries with "a lot of land ripe for outside investors," said Steven Schipani, a consultant to the Asian Development Bank.
New Investments To Ease Supply Shortages The explosion of new investments by Asian plantation companies in neighbouring countries could help ease future shortages of palm oil and rubber, and by doing so, keep prices at levels that don't force consumers such as tire makers and energy users to seek substitutes. According to IRSG's Smit, the new investments in rubber plantations might increase output by 1 million tons in the next 10 years, from around 9 million tons expected to be produced this year.
Similarly, palm oil's use as a biofuel has begun putting a strain on edible oil supplies, and Indonesia's vast potential to expand production offers some relief, said Dorab E. Mistry, director of Godrej International Ltd., part of India's Godrej Group. While oilseeds have to compete for land with other crops in most parts of the world, "the one area where production does not face such competition is Indonesia," said Mistry. But the prospect is not without risks.
Overproduction is the greatest danger presented by this new expansion, analysts said. Consider as well that these investments may be converting rainforest into monoculture plantations, or transforming farmers into laborers. There is also the issue of immigrant labor. Following Chinese and Vietnamese investment to Laos, Cambodia and perhaps Myanmar will likely be immigrant farmers. NGOs in Laos say northern Laos is already under significant Chinese influence and that process will intensify once newly planted rubber trees are ready to be tapped in about six years from now. "
The government of Laos, lacking any sort of tools to analyze the rubber phenomena, has not even thought about this issue, said David Bluhm, an agro-forestry consultant, who co-authored a study on Laos' rubber industry for the German non-governmental organization GTZ. "(At) some point I think the government will have to ask itself some tough questions about rubber and social demographics." (Allan Sun in Beijing, Reuben Carder in Jakarta and Benjamin Low in Kuala Lumpur contributed to this article.)
This article was reproduced with the kind permission of Dow Jones Newswires, as part of its Asia-Pacific Market Outlook 2007. Copyright 2007 Dow Jones & Company, Inc. All rights reserved. Copying and redistribution prohibited without permission of the publisher. Asia-Pacific Market Outlook 2007 is designed to provide factual information with respect to the subject matter covered, but its accuracy cannot be guaranteed.
Dow Jones & Co. is not a registered investment adviser, and under no circumstances shall any of the information provided herein be construed as a buy or sell recommendation, or investment advice of any kind. The series contains forward-looking articles on new Asian bond issues, Chinese initial public offerings, mergers and acquisitions in Japan, foreign exchange forecasts, commodity investor flows and Asian oil refiners amongst other issues, written by Dow Jones Newswires reporters within the region.
The articles provide market forecasts and insights to give you an edge in your business. We hope you enjoy them and wish you a prosperous 2007. To find out more about Dow Jones News, go to www.djnewswires.com
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Tourism Helps Revive Cambodia from the Ravages of War
Sunday, January 07, 2007
Cambodia pledged to proceed Khmer Rouge trial
The Cambodian government reiterated its pledge to prosecute former leaders of the Khmer Rouge, a senior official said Sunday. Chea Sim, president of the ruling Cambodian People's Party (CPP), marking the anniversary of the 1979 defeat of the Khmer Rouge, lashed out criticism of the slow pace of the promised trials. "We wish that those entities who constantly look at the process in a negative way would take a more balanced approach to their stance and activities and stop trying to blackmail the Cambodian judicial system, sovereignty, national honour and distort history to suit their own political agendas," Chea Sim said. "The CPP undertook the struggle to save the people and has constantly searched for justice for the victims of the genocidal regime," he said.
The 56-million-dollar joint UN-Cambodian trial process finally began its prosecution phase in July, but has stalled again amidst fierce wrangling over internal rules needed to proceed. Critics including New York-based Human Rights Watch have accused the government of meddling in the process and of lacking the political will to move swiftly ahead with the trial, budgeted to take just three years. Some critics have expressed doubts that the resolve of the government, which still contains a number of former Khmer Rouge cadre who defected and fled to Vietnam to form the nucleus of the movement which would return to defeat Pol Pot's regime. Pol Pot died in 1998, while another prime candidate for trial, Ta Mok, died in hospital last year.
Other candidates are elderly and complaining of ill health, and advocates of a trial have warned it must proceed with haste or risk never taking place at all.
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