Identifier
Created
Classification
Origin
03RANGOON394
2003-03-28 08:20:00
CONFIDENTIAL
Embassy Rangoon
Cable title:  

BANGLADESH PRIME MINISTER LOOKS EASTWARD,

Tags:  PREL ETRD PTER BG BM 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 RANGOON 000394 

SIPDIS

STATE FOR EAP/BCLTV
CDR USPACOM FOR FPA

E.O. 12958: DECL: 03/25/2013
TAGS: PREL ETRD PTER BG BM
SUBJECT: BANGLADESH PRIME MINISTER LOOKS EASTWARD,
DISCOVERS BURMA

REF: HANOI 694

Classified By: COM Carmen Martinez. Reason 1.5 (d).

C O N F I D E N T I A L SECTION 01 OF 02 RANGOON 000394

SIPDIS

STATE FOR EAP/BCLTV
CDR USPACOM FOR FPA

E.O. 12958: DECL: 03/25/2013
TAGS: PREL ETRD PTER BG BM
SUBJECT: BANGLADESH PRIME MINISTER LOOKS EASTWARD,
DISCOVERS BURMA

REF: HANOI 694

Classified By: COM Carmen Martinez. Reason 1.5 (d).


1. (C) Summary: Bangladesh Prime Minister Khaleda Zia's
three day visit to Burma produced understandings on trade,
transport connections, and refugees. Terrorism was not
discussed, but, according to the Bangladeshi Defense Attache,
Bangladesh has continued with efforts to clean up its side of
the border. End Summary.


2. (C) The visit of Bangladesh's Prime Minister Khaleda Zia
went very well, according to Bangladesh's Defense Attache,
Brigadier Salim Akhtar. The visit was meant to reciprocate
Than Shwe's December 2002 visit to Bangladesh and underline
Bangladesh's new interest in relations with Burma and the
other states of Southeast Asia. Begum Zia met with Than Shwe
for about 90 minutes on March 20 and agreed on a number of
key points, including:

-- A Road Connection between Dhaka and Rangoon: According to
Brigadier Salim this will involve construction of a small
bridge upstream on the Naaf River and a short stretch of road
in Burma's Rakhine State. If all goes well, construction on
the bridge and road will start this year.

-- Coastal Shipping: An MOU signed on March 20 will allow
direct service between Chittagong and Rangoon. Until now,
cargoes between the two states were shipped via Singapore,

-- Trade: A second MOU established a joint trade commission
and a bilateral trading account. Both arrangements are
intended to facilitate trade.

-- Refugees: Essentially, the two sides agreed to let the
Rohingya Muslim refugee issue die. Burma recommitted itself
to accepting back all refugees who could establish their
credentials as genuine residents of Burma; Bangladesh made no
commitments, but implicitly agreed to accomodate any refugees
who could not or would not return to Burma.

Burmese Business Community Bullish on Bangladesh


3. (C) According to members of the Union of Myanmar Chamber
of Commerce and Industry (UMCCI),the trade fair that
accompanied PM Zia's visit may lead to better ties. Burma's
exports to Bangladesh now largely consist of smuggled goods
(mostly rice) or transhipped consumer products from China.

While the business leaders don't believe improved trade ties
will end smuggling, they do hope for some increase in legal
trade (e.g.; agricultural and wood products from Burma in
return for pharmaceuticals and cement from Bangladesh).

False Rumors


4. (C) According to Salim, the two sides did not discuss any
plans for energy cooperation. U.S. companies in Bangladesh
(meaning UNOCAL) had attempted to promote a pipeline from a
prospective gas field off Burma's Rakhine State to Bangladesh
and then onwards to India, but there has been no official
backing for the proposal from either Burma or Bangldesh.
Similarly, according to Salim and the UMCCI representatives,
news stories of Burmese plans to lease rice cultivation land
to Bangladeshi entrepreneurs appeared to reflect only the
musings of Bangladeshi private sector interests. There had
been no discussion at all of that possibility during the
official talks.

Terrorism


5. (C) Salim also said that the two sides did not get into
any serious discussion of terrorism along their common
border. However, he said that the Burmese were aware of
Bangladeshi efforts to clean up the area. Salim said that
the Bangladeshi Army had run sweeps through the area in June
2002, December 2002, and February 2003. The target was
gun-running by the Rohingya Solidarity Organization (RSO),
which he said was funneling arms from Thailand to criminal
gangs in Bangladesh. Salim noted that the RSO had only 150
to 200 men under arms and were more a nuisance than a serious
threat to anyone. Nevertheless, the BDG was determined to
deal with the problem and to bring it to an end by June 2003,
if possible.
Strategy


6. (C) Salim said that this new openness in relations with
Burma was part of Bangladesh's own "Look Eastward" policy.
Just as India had reopened relations with Burma out of an
early 1990s fear of encirclement by China and its allies, so
Bangladesh has taken the same step out of a similar fear of
encirclement by India and its allies. According to Salim,
there was also the lure of trade with Southeast Asia. For
too long, he said, Bangladesh had focussed its foreign policy
on India, China, and the West, without ever considering the
opportunities in Southeast Asia. This visit, together with
the exchange of visits between Begum Zia and Thailand's Prime
Minister Thaksin in December 2002, were steps towards a
broader and more balanced set of relations for Bangladesh.
Comment


7. (C) Bangladesh is the latest of the regional states to
discover Burma. Like China, India, and Thailand before it,
Bangladesh has evidently come to the conclusion that there is
more to be gained from dealing with Burma than from shunning
it. From the Burmese side, there's no arguing that the SPDC,
increasingly isolated politically by the West, is having
signficant diplomatic success in improving its economic and
political relations with neighbors and ASEAN partners. The
visit of Prime Minister Zia, on the heels of a trip by Senior
General Than Shwe to Vietnam, demonstrates that this
diplomatic campaign, at first focused on the major players
(India, China, and Thailand),is now expanding to countries
with which Burma has not had historically strong ties. End
Comment.


8. (SBU) This cable has been cleared with Embassy Dhaka.
Martinez