BURMA: YUNNAN LOCALS ON THE BORDER SITUATION

C O N F I D E N T I A L SECTION 01 OF 03 CHENGDU 000206

SIPDIS

DEPT FOR EAP/CM AND EAP/MLS - LAURA SCHEIBE

E.O. 12958: DECL: 9/28/2019
TAGS: PREL PHUM PGOV PREF BM CH
SUBJECT: BURMA: YUNNAN LOCALS ON THE BORDER SITUATION

REF: A) CHENGDU 203, B) RANGOON 601, C) CHIANG MAI 130, D) BEIJING 2493

CHENGDU 00000206 001.2 OF 003


CLASSIFIED BY: David E. Brown, Consul General.
REASON: 1.4 (b),(d)

1. (SBU) Summary: A range of local Kunming residents, including
jade sellers and travel agencies with ongoing business along the
border, expressed uncertainty regarding long-term security in
border areas following the August conflict in Kokang. A larger
jade operation in Kunming, and local sellers in Jinghong,
Xishuangbanna, however, reported business as usual. Travel
agencies in Kunming confirmed that Chinese authorities have
recently implemented new restrictions on travel in the Kokang
border areas, including a ban on Chinese cross-border tour
groups. Cross-border travel in the popular Xishuangbanna
tourist area, though down in volume, does not appear to be
subject to the restrictions applicable in the Kokang border
area. Although not designated as official refugees, an unknown
number of those who fled the Kokang conflict remain in Yunnan.
End summary.


2. (SBU) The following compiles information gathered during
separate ConGenOff and EmbOff trips to Yunnan province September
15-18, including the provincial capital of Kunming and the
Xishuangbanna Dai Autonomous Prefecture, bordering Burma.
Discussions with Kunming-based scholars during these trips are
detailed in Ref A.

Kunming Residents Uncertain about Border Area Security
-------------- --------------


3. (SBU) Jade sellers, travel agency staff, and drivers in
Kunming -- many of whom either themselves travel regularly to
the border area or have relatives and friends that do so -- told
ConGenOff and LES on September 17 that, given the paucity of
Chinese media coverage inside Burma, they lack reliable
information on the situation along the border. In addition,
their informal cross-border information networks indicated
uncertainty about the security situation across the border.
(Note: Yunnan residents easily travel back and forth in the
border area. Extensive personal networks mean official border
crossings are often avoided. End Note.) Locals advised against
travel across the border, saying "the security situation is not
good now" and that a state of war was continuing ("hai zai
dazhan"). Others described the current situation as relatively
calm, but only temporarily so, expressing the view that Burmese
and Chinese authorities are focused on keeping things quiet in
the lead-up to China's National Day on October 1, but that
conflict could erupt thereafter. (Comment: Embassy Rangoon notes
that there is nothing to suggest that Chinese National Day plays
into Burmese authorities' calculations, and that sources
indicate the GOB is not anxious to break its ceasefire
agreements. End comment.)

Burmese Jade:
Trade Still Flowing, but Some Report Increased Difficulties
-------------- --------------


4. (SBU) Wholesale sellers of Burmese jade in Kunming (most of
which is processed either in Guangdong or local small scale
"home factories") told us that supply lines were now less stable
and that doing cross-border business had become "much more
difficult". One seller told ConGenOff that she often travels to
Burma, but became nervous and refused to talk further when asked
about the current situation. Another, whose husband travels
there regularly, emphasized that the situation is "not secure
now" and that it is "not a good time to go." A third, whose son
and husband travel to the border regularly, told us that crime
against Chinese in the border areas has increased markedly in
recent weeks. Several noted that they previously did not buy
raw jade in large volumes, feeling that the supply was secure,
but are now worried and trying to buy larger quantities on each
visit.


5. (SBU) However, a manager at Tailigong Jewelry, a large jade
importer and processor that sources its raw materials from its
own mining site in Burma and ships them via truck into Yunnan,
told us that they have no major concerns regarding the security
situation or their supply lines, and have been able to continue
business as usual. Jade merchants in Jinghong, Xishuangbanna's
largest city, lying several hundred kilometers south of the
Kokang border area and bordering the southern Shan State's
Special Region 4, also reported no disruption to their jade
supplies. (Note: Jade merchants in Jinhong told EmbOff they
sourced their jade from Ruili, either processing it locally or
in Guangdong. Transportation infrastructure between Ruili and
Jinhong is limited, requiring several days driving over bad
roads according to local sources; Kunming, on the other hand, is
linked to both Ruili and Jinhong both by regular flights and
better roads. End note.)

New Restrictions for Chinese Cross-border Travel in Kokang
Border Area; Situation Normal in Xishuangbanna

CHENGDU 00000206 002.2 OF 003


-------------- --------------


6. (SBU) Travel agents in Kunming confirmed several new
government restrictions on travel in the Kokang border areas
implemented in recent weeks. Staff at one company, which
regularly arranges border area tours and employs Burmese
speaking local guides, told ConGenOff they received sudden
instructions on September 15 from the Public Security Bureau of
Ruili to suspend all cross-border travel. Travel agency staff
also said that most Chinese citizens, other than local
residents, were currently barred from travel to Nansan, the
border town south of Ruili to which refugees from the August
Kokang clashes fled. They emphasized that these restrictions
were in addition to the standard policies in place prohibiting
most non-Chinese citizen travel to Burma via land border
crossings, and also barring cross-border travel to "Tibetans,
Uighurs or retired soldiers," and expected the restrictions to
remain in place at least through the PRC National Day holiday in
October, possibly longer. Other travel agents had less specific
information regarding the currently applicable restrictions, but
generally confirmed increased official limits on border area
travel. (Bus drivers and ticket sellers at Kunming's main bus
station, however, were ready and willing to take on both
domestic and foreign passengers to Nansan, and said they knew of
no restrictions.)


7. (SBU) EmbOff observed no travel restrictions or active
checkpoints during a visit to two border crossings in the
popular tourist destination of Xishuangbanna prefecture during a
September 17-18 visit. At the main border crossing in Da Luo
(opposite the Burmese town of Mengla in Burma's Special Region
4),no restrictions on crossing the border were evident, though
a Chinese citizen who said he had just returned from Burma
commented that the volume of cross-border traffic at Da Luo was
many times smaller than usual, a fact he attributed to the
ongoing preparations for fighting in the Wa and Mongla border
areas to the north and west. Other locals agreed that fighting
was imminent over the border, one suggesting that fighting would
likely breakout after the PRC National Day holiday. At a border
trade crossing near the Burma and Laos border (east and south of
Da Luo),EmbOff observed dozens of Chinese trucks and a small
number of Yunnan province-licensed passenger vehicles heading
into Burma, though no Burma-based traffic crossing into China.
Chinese truck drivers said they were picking up "iron ore" from
a location about 60 kilometers inside Burma and reported no
difficulties in travel. People's Armed Police affirmed that
while they had heard of continuing tensions on the Burmese side
of the border, the area at the border crossing remained calm.


8. (SBU) A Burmese Consulate official in Kunming informed
ConGenOff that the Consulate was processing visas as normal
during their daily visa section hours, for both Chinese
(two-three days to process) and foreign citizens (one week to
process). However, he said that all travelers must go via air,
as land border crossings were shut down "over two months ago" in
accordance with an agreement by a bilateral border committee.
He did not specify the composition of this committee. (Comment:
The claim that the border has been shut down for two months
clearly contrasts with reality on the ground, but is arguably
indicative of both the inconsistency characterizing the border
regime, as well as the ongoing contrast between official
pronouncements and reality on the ground regarding border-area
developments. End comment.)

Refugees: Officially Non-existent, but Many may Remain
-------------- --------------


9. (SBU) As discussed in ref A, scholars with whom we spoke
noted that although a number ("yi bufen") of the Kokang
residents who fled into China during last month's clashes have
now returned, an uncertain but large number remain and many of
those who hold Chinese citizenship may not return at all.
Chinese authorities are, according to one scholar, determined
not to designate anyone fleeing conflict in Burma as a refugee
(nanmin),instead referring to them as "border civilians"
(bianmin).


10. (SBU) According to one local, the Burmese Consulate in
Kunming is actively engaged in efforts to placate the "border
civilians" who were negatively impacted by the Kokang conflict.
He described the situation of a friend, a Kokang businessman
whose wife had been injured during the clashes and was now
recuperating at a family home Kunming. Burmese Consulate
officials had visited the couple to apologize, had continued
regular visits since, and are providing them with income
support, he reported.


11. (C) A project manager at Save the Children UK's Kunming
office told ConGenOff that Chinese authorities turned down the

CHENGDU 00000206 003.2 OF 003


NGOs offer to assist those fleeing the Kokang violence. She
reported that the organization's Beijing headquarters had
instructed her to approach the Yunnan Public Security Bureau
(PSB),with whom they cooperate extensively on anti-trafficking
in persons programs, to inquire about performing a needs
assessment and arranging assistance to the refugees. In
response, PSB officials told her the organization was "not
allowed" to pursue the issue further. (Note: Save the Children
normally provides child protection assistance in refugee
situations, for example their Bangkok operation coordinates
extensive assistance to Burmese refugees in Thailand. End
note.) She noted that the lack of official information
regarding refugee flows into China was a long-standing issue,
citing as an example the large numbers that came across the
border in the wake of Cyclone Nargis in 2008. At that time,
local PSB contacts told Save the Children of a significant
increase in the Burmese presence in southern Yunnan, but NGO
staff had been unable to obtain a specific information on the
refugee influx.


12. (U) This cable was coordinated with Embassy Rangoon and
Embassy Beijing.
BROWN