CORRUPTION AND THE BURMESE JUNTA

C O N F I D E N T I A L RANGOON 02496


STATE FOR EAP/TB AND INR/B

E.O. 12356: DECL: OADR
TAGS: PGOV PINR EFIS BM TH
SUBJECT: CORRUPTION AND THE BURMESE JUNTA

REF: 91 RANGOON 3469


1. CONFIDENTIAL ENTIRE TEXT.


2. DURING A RECENT LENGTHY TALK WITH CHARGE, A
LEADING THAI BUSINESSMAN WITH OVER 100 FISHING BOATS
PLYING BURMESE WATERS PROVIDED CHAPTER AND VERSE ON
CORRUPTION AMONG RANGOON'S RULING GENERALS. ADMITTING
THAT HE PERSONALLY MULES IN ABOUT 50,000 DOLLARS IN
CASH DURING WEEKLY TRIPS TO BURMA, THE ENTREPRENEUR
SAID THAT PERHAPS 15 PERCENT OF THIS MONEY WAS
EARMARKED FOR PAYOFFS TO SENIOR GENERALS. (THE
REMAINDER GOES TO THE GOB FOR FISHING RIGHTS.)


3. DILATING ON WHO GETS WHAT, THE THAI BUSINESSMAN
NOTED THAT FORMER MINISTER FOR FISHERIES LIEUTENANT
GENERAL CHIT SWE HAD LONG BEEN THE "PRIME RECIPIENT".
"TAUGHT BY THE THAI", HE SAID, "THE MINISTER HAS AN
EXQUISITE SENSE AS TO HOW TO RECEIVE A BRIBE AND YET
PRESERVE SOME DEGREE OF DENIABILITY." ACCORDINGLY,
CHIT SWE DECLINES ONE-ON-ONE SESSIONS WITH THAI
BUSINESSMEN, INSISTING THAT ALL DISCREET DEALINGS BE
WITH HIS SON WHO ALSO ESCORTS DEPARTING ENTREPRENEURS
THROUGH CUSTOMS WITHOUT THE USUAL CHECKS AS PART OF
THE FAMILY'S SERVICES. COMMENT: MOST RECENTLY, CHIT
SWE'S SON CAME TO THE AIRPORT ON 20 MINUTES NOTICE TO
SQUIRE A GROUP OF SOME 60 THAI ENTREPRENEURS THROUGH
CUSTOMS.


4. AS FOR OTHER DEALINGS WITH MEMBERS OF THE RULING
STATE LAW AND ORDER RESTORATION COUNCIL (SLORC),THE
BUSINESSMAN OBSERVED THAT ARMY CHIEF OF STAFF TIN 00
WAS ALSO A RECIPIENT OF DIVERSE GRATUITIES. HOWEVER,
MAJOR GENERAL TIN 00 HAD A REPUTATION FOR
"RENEGOTIATING DEALS AND OTHERWISE BEING DIFFICULT".
MOREOVER, EVER SINCE HIS TEENAGE SON HAD RECEIVED A
MERCEDES BENZ FOR BROKERING ONE DEAL AND TAKEN TO
DRIVING IT AROUND TOWN, TIN 00 HAS BEEN UNDER CLOSE
SCRUTINY BY THE BURMESE MILITARY INTELLIGENCE (DDSI)
WHOSE AGENTS CONDUCT SPOT CHECKS ON HIS RESIDENCE.
COMMENT: ACCORDING TO THIS BUSINESSMAN AND ANOTHER
SOURCE, INTELLIGENCE CHIEF KHIN NYUNT FORCED TIN 00 TO
TURN THE MERCEDES BENZ OVER TO THE GOB.


5. WHILE HIS OWN BUSINESS DEALINGS DO NOT INVOLVE ANY
OF THE JUNTA'S TRUE HEAVYWEIGHTS, THE THAI
ENTREPRENEUR NOTED THAT SEVERAL OF HIS PEERS HAVE HAD
DEALINGS WITH KHIN NYUNT'S WIFE -- WHO HAS A FONDNESS
FOR EXPENSIVE JEWELRY -- AND WITH THE SON OF NEW HEAD
OF STATE THAN SHWE. IN BOTH INSTANCES, GRATUITIES
HAVE ESSENTIALLY BEEN LIMITED TO COMPARATIVELY MODEST
GIFTS AS A REWARD FOR INFLUENCE PEDDLING. DESPITE
THAN SHWE'S APRIL 23 PROMOTION, THE BUSINESSMAN
DOUBTED THAT BURMA'S NEW LEADER WOULD "ENRICH HIMSELF
UNDULY ON THE JOB" OR "ALLOW CORRUPTION BY OTHER
GENERALS TO INCREASE". IN THIS REGARD, THE
BUSINESSMAN OBSERVED THAT GENERAL THAN SHWE LIVED
AUSTERELY EVEN BY BURMESE STANDARDS AND HAD LITTLE USE
FOR SUCH WESTERN LUXURIES AS AIR CONDITIONING.


HUDDLE