Lao News update

Posted Date: Dec 2, 1996
From: Vilay Soulatha
Subject: Nam Thuen II

LAO PDR SEES NAM THEUN AS TICKET TO FUTURE. The controversial $1.2 billion Nam Thuen Two dam in the Lao People's Democratic Republic (PDR) is reaching its crucialstage, the South China Morning Post (Hong Kong) reports. The stakes are high as the government and a consortium of international investors wait for World Bank guarantees. It will be both the biggest foreign investment and biggest infrastructure deal in Lao history. If successful, it will help put the country on the map with international financiers, and generate much needed income for development - more in fact than any other export or aid flow. That development will in turn - the government hopes - see the Lao PDR grow into a key entry point in a borderless Asia.

It is all some way off, a reflection of the complications and controversy that surround the deal, the article says. The World Bank called for further studies so it could be sure its environmental, economic and management demands would be fulfilled. David Iverach, Vientiane representative for the Australian engineering giant Transfield -- a partner in the consortium seeking to build the dam -- said he was confident the Bank would be ready for a "positive" decision towards the end of next year. Only once the Bank's guarantees were in place would any deal with the government, consortium, buyers and backers be signed off. "We've consistently stated that we would not participate in this project if we cannot comply with World Bank standards and we have consistently stated that we can see no reason why we cannot do that," Iverach said, money; no returnees, no money," says Husarska.

WORLD BANK WARNS ASIA NOT TO IGNORE INFRASTRUCTURE, ENVIRONMENT.

Gautam Kaji (EXC) took a swipe at Asian countries today for ignoring infrastructure needs and the environment while chasing financial growth, Agence France- Presse reports. Kaji warned that unless the problems were addressed they would drag down the region's attempts to come out of the current regional economic slowdown. Environmental issues were "the clear blackspot in East Asia," he told a seminar on the region's economic potential at the World Economic Forum summit in Hong Kong. With the infrastructure much more needed to be done to meet not only industry requirements but also public demands, Kaji said, although this was not strictly a government fault. "Private sector capital amounts to about 10 percent of the investment in infrastructure. There is no reason for it not to be 30 percent," he said.



Subject: Nam Thuen II

WORLD BANK UNDER PRESSURE TO BACK CONTROVERSIAL DAM IN LAO PDR.

The Lao People's Democratic Republic (PDR) has urged swift decisions from the World Bank to back a controversial dam project set to be the country's biggest international infrastructure deal, the South China Morning Post (Hong Kong) reports. Foreign Minister Somsavat Lengsavad said the Nam Theun 2 project was crucial to costly plans to wipe out poverty, stop slash-and-burn farming and save the country's vast but threatened forests. "We have a feeling that (we) have a better and positive understanding about the environmental situation and certainly they should give some positive considerations to our proposals," Somsavat told the SCMP in a rare interview. "I hope they would not delay their consideration ... so as they delay their decision the forests and this area will be further destroyed and the people will live in poverty."

The $1.2 billion dam has already been delayed following Bank calls for further studies before any decision to provide political risk guarantees can be made, the article says. Because the country does not yet have a credit rating, World Bank involvement is vital to the involvement of five international companies involved in a build-own-operate-transfer consortium. Three final financial and environmental studies crucial to any World Bank provision of political risk guarantees are about to start, but a firm decision from the institution was not expected until late next year, bank sources said.

Posted date: Nov 26, 1996

Mr. Tid Phabmixay the Cultural and Social Commission, the Ethnic Affairs Commission, and the Foreign Affairs Commission. Deliberations touch on the following:

-NATIONAL ASSEMBLY TO APPROVE DEVELOPMENT PLANS
-FLOOD EFFECTS DISCLOSED OFFICIALLY
-FOREIGN MINISTER TO UN GENERAL ASSEMBLY
-FOREIGN MINISTER HEART-TO-HEART INFORMAL MEETING WITH LAOTIAN-AMERICAN COMMUNITY
-INTERNATIONAL FINANCIAL CORPORATION TO ASSIST PRIVATE ENTERPRISE

DEVELOPMENT IN LAO PDR
-LAOS AND SWEDEN: agreement on investment signed
-MEETING TO REVIEW MATERNAL AND CHILD HEALTH PROGRAM
-ROUNDTABLE TO EVALUATE MICRO FINANCE PROGRAM IN LAOS
-TRI-PARTITE MEETING ON RETURNED REFUGEES
-LAO REPRESENTATIVE CHAIRS UN COMMITTEE IN NEW YORK
-US AMBASSADOR PRESENTED CREDENTIALS
-LAO COPERATION PRAISED ON POW/MIA RECOGNITION DAY
-PUBLICATION OF GOVERNMENT ORGANIZATION MANUAL
-ADB APPROVED LAON FOR NAM LEUK HYDROPOWER PROJECT
-AUSTRALIA GIVES A $17.3 MILLION FOR 1996-97
-JAPAN FUNDS BRIDGE CONSTRUCTION IN SOUTHERN LAOS
-CONTAINER METHOD TO SPEED UP GOODS SHIPMENT TO LAOS
-INTEGRATED FOREST DEVELOPMENT AGREEMENT
-NAM THEUNE-HINBOUNE DAM PROJECT IN PROGRESS
-PLANS FOR RURAL DEVELOPMENT IN BOKEO

-PUBLIC AWARENESS CAMPAIGN ON NAM THEUN 2 PROJECT
-NAM THEUN 2: LAO PEOPLE HOPE FOR A BETTER LIFE
---History of Nam Theun 2 (NT2)
---The Project
---The Social Impact
---What the Lao Government Gets
-World Bank Studies and Public Consultation
-RELIEF CARGO FROM OAKLAND TO FLOOD VICTIMS IN LAOS

-A R T S C U L T U R E T R A D I T I O N

INTERNATIONAL CONFERENCE ON LAO CULTURAL HERITAGE PRESERVATION
---The Short Term
---The Long Term
-FINANCE MINISTRY TO HANDLE BUSINESS PRIVATIZATION
-9US-ASEAN COUNCIL SPONSORED MEETING BETWEEN LAO PDR DELEGATION WITH

PROMINENT U.S.BUSINESS EXECUTIVES
-THE VIENTIANE DECLARATION

NATIONAL ASSEMBLY TO APPROVE DEVELOPMENT PLANS

The Ninth session of the National Assembly opened on September 28 under the chairman-ship of its president Mr Samane Vignaket. It was set to adopt the socio-economic development plan for the rest of the century. Included in the agenda was the review of a government report on the implementation of the 1995-96 socio-economic development and budget plans. The socio-economic development plan for the next fiscal year was also to be adopted.
The five commissions of the National Assembly holding separate meetings include: the Legal Commission, the Economic, Planning and Finance Commission, the Cultural and Social Commission, the Ethnic Affairs Commission, and the Foreign Affairs Commission. Deliberations touched on the implementation of the constitution and other legal measures over the past year, the past and future activities of the National Assembly, the international and regional situation and its effects on the execution of the foreign policy of Laos. Special emphasis was made on LaosÕs preparations to become a member of the Association of Southeast Asian Nations (ASEAN) next year. According to the Eighth Ordinary Session of the National Assembly (third Legislature) three laws were to be discussed and adopted at the Ninth session: the law on land, the law on forestry and the law on water and water resources. But the government requested more time to elaborate the law on land which includes many important factors and, therefore, needs further study. So the law on land will not be submitted to this National Assembly session.
According to a report presented by the Chairman of the State Planning Committee (SPC), Mr Bouathong Vonglorkham, in the next five years, the country will try to achieve an annual economic growth of the agreement signing which took place in late September. All matters concerning improvements of changes in state-run enterprises will now be handled by the Ministry of Finance. The move was made as part of the implementation of a decision of the Prime Minister’s Office.

FLOOD EFFECTS DISCLOSED OFFICIALLY

A press conference held at the Foreign Ministry in late September disclosed that more than 25,000 ha of rice fields and fruit plantations were damaged in over 250 villages of nine provinces in Laos as a result of severe floods due to torrential rains which came during mid-August, causing the level of water in major rivers, especially the Mekong tributaries to rise rapidly, overflowing their banks. The figure of damaged fields is expected to be much more, as reports from several provinces have yet to come in. Several hundred houses were completely destroyed. The province worst affected by flood is Houa Phanh province which included 140 villages.
The damage to agriculture is estimated at about 689,22 million kip with 336 ha totally des-troyed beyond rehabilitation. The total cost of damage inflicted to irrigation systems was estima-ted at 289 million kip. In the communication field, the cost was estimated at over 1,148 million kip including the damage of roads and bridges. The estimated cost of embankments destroyed was around 556 million kip. More than 1000 million kip worth of property were destroyed.
The Foreign Ministry also planned to invite diplomats and representatives of international organizations to travel to the affected provinces: Houa Phanh, Phongsaly, Luang Prabang, Luang Namtha, Borikhamsay, Vientiane municipality, Savannakhet, Khammouane and Vientiane province to observe the real situation. Members of the diplomatic corps and representatives of international organizations to Laos present at the press conference discussed ways and means of dealing with the situation.
The German Ambassador said that Germany in the framework of its bilateral assistance program is always ready to render assistance to help Laos in whatever way it decides to solve this problem. Germany has the infrastructure to help Laos through food security project in the pro-vince of Luang Namtha and it still has one thousand tons of rice in the warehouse of Borikhamsay which is ready for distribution.
Australia announced through the Parliamentary Secretary for Foreign Affairs during a visit to Laos in mid-October the emergency relief grant of Aus $750,000 (US $600,000) to people affected by flooding in Saravane province. The majority of the aid will provide rice relief for flood victims through the World Food Program. The balance of funding about Aus $100,000 will go to vaccinate children throughout Saravane province against diphtheria, in an effort to prevent further death from this disease. To this end, Australia’s funding will be channelled through the World Health Organization. The current emergency assistance package is provided in addition to Australia’s normal bilateral aid program to Laos which reaches Aus $18 million (US $14.5 million) for this fiscal year.

FOREIGN MINISTER TO UN GENERAL ASSEMBLY

Foreign Minister Somsavat Lengsavad at the head of the Lao delegation attended the 51st General Assembly of the United Nations. On October 1, the Foreign Minister gave a speech to the General Assembly which opened on September 17 in New York. The current session will last until late December 1996.
In his speech the Foreign Minister said over the past years, nations in the world had strengthened their cooperation for development, which was seen as a general trend in different parts of the world. Unfortunately, he noted, many regions of the world still had tensions and com-plicated situations as a result of racial and religious conflicts. Worse still, there existed instances of interference in each other’s internal affairs, hegemonic policies against small countries through arbitrary imposition of economic and legal sanctions, and a new forms of racism and oppression. This situation had threatened coesixtence among nations and people, and could possibly even drive some countries or societies to disintegration. The international community must there-fore work harder to solve all these problems. This requires patience and determination, adding that with their joint effort, nations would be able to achieve this goal.
On Europe, in particular Bosnia and Herzegovina, he said the signing of a peace accord in Dayton, Ohio, USA, on December 14, 1995 between concerned parties and the recent elections were an importan landmark in seeking a solution to the painful and destructive situation in that country. He called on all the parties involved in this conflict to exercise restraint and have a practi-cal stance in implementing this accord in a sincere and strict manner in order to restore peace, sta-bility and cooperation in that part of the world. Under the leadership of President Nelson Mandela, South African people were over-coming consequences of apartheid and rehabilitating their country, Foreign Minister Somsavath Lengsavad said. He noted the expanded relations and cooperation in economics and culture among Caribbean countries, which were beneficial for peace and stability in this region. He expressed hope that the United states of America would take a more reasonable stance to solve the problem it had with Cuba through negotiations, contributing to promotion of mutual understanding between the two countries. On the situation in the Middle-East, Mr Somsavat said the Lao government showed concern about the recent situation in Jerusalem, and he hoped the possible talks between leaders of parties involved in this dispute, Palestine and Israel, would help solve the turmoil, bringing the situation back to normal.
On the situation in the Korean peninsular, the Foreign Minister said both the Democratic People’s Republic of Korea and the United States had continued to implement the agreement they had signed, which contributed to consolidating peace in the region. The Lao government wel-comed the positive development of the situation.
A trend for peace and cooperation in Southeast Asia had been promoted through dialo-gues and efforts at mutual understanding, the Foreign Minister stated, adding that recently repre-sentatives of countries in the region met in Malaysia to discuss an Asia-Europe railways develop-ment plan starting from Singapore to China through Laos. The plan was believed to facilitate widened economic cooperation in the region. He said with a policy of ensuring coexistence in peace and security, countries in the region including Laos, had concluded a treaty on building Southeast Asia a nuclear-free zone. The Lao government viewed the adoption by the 50th UN General Assembly of a convention on a complete prohibition of nuclear testing was a rare achievement the international community had obtained in gradual eradication of nuclear weapons in the world.
Speaking of developments in Lao PDR, the Foreign Minister said the economic reforms the government had conducted since 1988 had brought initial accomplishments to the people. The national economy grew at a rate of 6.4 per cent per year between 1991-1995 with the rate of inflation kept under control. He said this had resulted in the living conditions of people improving a step further, and helped strengthen political stability and social harmony. The last Congress of the Lao People’s Revolutionary Party was therefore determined to continue the economic reforms in line with the market forces. He added that the economic target for 1998-2000 was to achieve the growth rate of 8 to 8.5 percent per year, while the per-capita income was expected to reach US $500 in the year 2000.
The Foreign Minister elaborated that now the Lao government had encouraged all eco-nomic sectors in the country to participate in socio-economic development and provided facilities for foreign investors to explore national potential, building necessary infrastructure to get the country rid of least developed status within the year 2020.
On the foreign affairs front, Minister Somsavat maintained a foreign policy of peace, independence, friendship, and cooperation with nations and international organizations. In the following years, focus was placed on preparations for the country to become a full member of the Association of Southeast Asian Nations (ASEAN) in 1997, aimed at integrating the national deve-lopment with the economic development in the region and the world as well.
The world economy saw a positive development in some ways, the Foreign Minister noted, adding that in fact the economy of some countries was really progressing. However, he said, nobody could confirm the world economy will grow rapidly and firmly. He stressed that the economies of various countries had become interdependent and integrated had created a new opportunity for growth. But at the same time, it had caused a new tension and disparity. In parti-cular, the international economic integration and interdependence had resulted in the majority of developing countries being neglected. The Foreign Minister said the international community should join efforts in creating a more favorable and equitable environment for the international economy. This was to enable developing countries to combat poverty effectively, thus bringing progress in all fields to society.
In his speech the Foreign Minister also touched on the right for all to have a decent home, which was one of the fundamental issues to ensure economic and social fairness. He acclaimed the outcome of the UN meeting on human shelters held in Istanbul, Turkey, last June.
The Foreign Minister also pointed to the recent world conference against child prostitution held in Stockholm, Sweden, expressing concern over millions of children being victims of child prostitute traders each year. The Lao government therefore supported and would continue to sup-port by all possible means the measures to suppress the new threat to the future of the younger generation over the world.
On drug issues, the Foreign Minister underlined the Lao government’s effort in drug control from now to the year 2000, implemented through a comprehensive rural development scheme in order to gradually reduce poppy plantation while applying educational and suppressive measures. Aware of the danger of the narcotic drug, the Lao PDR has made amendments to the criminal code by increasing the punishment of offenders. The Lao government hoped friendly countries, international organizations and non-governmental organizations would further extend cooperation for a greater success in the drug control.
On environmental issues, Minister Somsavat stressed that developed countries as well as developing countries all have the right to exploit their own natural resources. But, he said, economic development should be paired with environmental protection.
Touching on the work of the United Nations, the Foreign Minister said it was necessary to improve the role of the General Assembly as a main body to deliberate and decide the problems of the whole system of the UN, while the UN Security Council, he said, should also be improved to become more democratic. He said the number of the Security Council members should be increa-sed within a limit, with a fair division by continent and importance of country, such as Japan, Ger-many and India, which should be qualified as full members of the Security Council.

FOREIGN MINISTER HEART-TO-HEART INFORMAL MEETING WITH LAOTIAN-AMERICAN COMMUNITY

An evening of Laotian hospitality was shared between Foreign Minister Somsavat Lengsavad and the Laotian-American community of about 60 people at the Embassy of Lao PDR in Washington, DC, on October 27, 1996. The Foreign Minister was in the United States to attend the 51st United Nations General Assembly.
The Minister gave a comprehensive update on the socio-economic development of the Lao PDR, followed by a highly frank and cordial exchange of views on many key issues of com-mon interest and concern to Laotian communities worldwide. Members of the Laotian-American community were urged to communicate their views and recommendations on any issue of com-mon concern and public importance to the Lao Embassy for relay to the Government. The evening culminated in the sharing of a buffet of popular home-cooked Lao dishes, im-promptu singing of new and old Lao songs accompanied by Lamvong amid an atmosphere of compatriotic hospitality and nostalgic fun.

INTERNATIONAL FINANCIAL CORPORATION TO ASSIST PRIVATE ENTERPRISE DEVELOPMENT IN LAO PDR

The International Financial Corporation (IFC), a member of the World Bank Group dealing with private sector development, is set to launch new initiatives to promote and support private enterprise development in Lao PDR. Those new initiatives were announced and discussed in a series of executive briefings and technical discussion sessions held between senior staff of the IFC led by Ms. Carol F. Lee, Vice President and General Counsel, and a representative group of Laotian business executives who were members of the 22-person Lao PDR delegation to the World Bank-IMF Anuual Meeting led by Finance Minister Xaysomphone Phomvihane.
The larger and more diverse composition of the Lao PDR delegation includes, for the first time, many enterpreneurs, public and private owners/managers, as well as members of the Overseas Laotian Professionals Group (LaoPro) in the United States who provided specialized professional advice to the delegation and facilitated technical discussions. According to Minister Xaysomphone, the unprecedented substantial participation of the Laotian private sector in this year’s meeting reflects the Lao PDR’s continued commitment to the market-oriented development of the national economy in which the private sector is expected to play an increasing role in resource mobilization and investment. The technical assistance provided by the LaoPro group to the delegation also represents a new milestone in the rapidly expanding professional cooperation among Laotians worldwide.
As immediate implementation of the above-mentioned new IFC initiatives, the IFC has decided to dispatch two missions to the Lao PDR between now and the end of the year. The first one, comprising technical staff, is scheduled for early November. The second mission, to be led by IFC’s Vice President and General Counsel Carol F. Lee and other senior officers, will be in Vientiane in mid-December. The productive meetings with the IFC represent a new and major advancement in the IFC-Lao PDR relationship and a highlight of accomplishment of the Lao PDR delegation to this year’s World Bank-IMF meeting.

LAOS AND SWEDEN: AGREEMENT ON INVESTMENT SIGNED

Laos and Sweden have recently reached an agreement on investment protection and promotion. The two sides have placed great importance on the agreement, which is considered as a major landmark in the development of efficient relations and cooperation between the two coun-tries. Both sides are also hoping for growing investment and cooperation in the future.
The signing of the agreement took place during the official visit to Sweden by a Lao dele-gation led by Foreign Minister Somsavath Lengsavad between September 25-26. Signing the agreement were Mr Soubanh Srithirath, Deputy-Minister of Foreign Affairs of Lao PDR, and Ms Ivone Gustafsson, Deputy-Minister of Industry and Trade of the Kingdom of Sweden. While in Sweden, the Lao delegation also attended the first World Conference on Child Prostitute Trade Prevention held in Stockholm on August 27-31. The congress brought together more than 1,200 delegates from 126 countries and over 50 inter- and non-governmental organizations.
From September 1-3, Foreign Minister Somsavath Lengsavad visited Finland and met with Foreign Minister Tarja Halonen, Minister of Cooperation for Development Pekka Haavisto, President of Parliament Ritta Uosukainen, and President Matti Ahtisaari of Finland.
From September 3-5, the Lao Foreign Minister continued his official visit to Norway where he met with his counterpart of Finland, Mr Bjorn Tore Godal, and Minister of cooperation for development Kari Nordheim Larsen. Mr Somsavath Lengsavad also met with other officials, including the President of the Parliament, the acting director-general of the Norwagian Assistance Development organization (NORAD), and the director-general of the Chamber of Commerce along with representatives of electricity industries.
During the talks in the three nordic countries, both sides reiterated their will to further expand the bilateral relations. They also exchanged views on the regional and international issues of common interest. The visits were hailed as pushing the bilateral relations a step forward.

MEETING TO REVIEW MATERNAL AND CHILD HEALTH PROGRAM

The National Commission for Mothers and Children and the UNICEF jointly held a meeting to review plans and strategies for maternal and child health development in Laos over the past years. The meeting was chaired by Foreign Minister Somsavat Lengsavad who is also Presi-dent of the National Commission for Mothers and Children. Lao officials attending this meeting included representatives of ministries, mass organizations, provincial governors, and directors of health and education institutions. Participants from the UNICEF were Ambassador Ion Gorita, President of the UNICEF Executive Board; Dr Pratima Kale, UNICEF Regional Director; Ms Anne Sutherland, UNICEF-Vientiane Representative. Also present were representatives from the diplomatic missions and international organizations and the United Nations’ coordinator in Laos.
The meeting heard reports on achieving the mid-decade goals for children in Laos. The strategy carried out in public health involves an expanded program for immunization, water supply and environmental sanitation, nutrition and maternal and child health. The strategy in the field of education is to provide basic education to people, upgrade teaching skills of teachers, and improve the quality of education through development of curriculum, text books, teaching equip-ment. Another strategy deals with women development, to reduce heavy workloads for women, to promote income generating activities among women, and to improve women’s well-being. In general, it is observed that satisfactory progress is being made in these activities.
The meeting noted that dissemination of the Convention of the Rights of the Child (CRC) was a necessity to mobilize social participation in fulfilling the rights of children as required by the convention. The meeting received the reports on national development of economic and social priorities and on cooperation strategies between Laos and the United Nations. Open discussions were conducted, focussing on the analysis of problems affecting the situation of children and their families and the development of national goals and objectives for the next Country Program of Cooperation between Lao PDR and UNICEF for the period 1998-2002. A number of governors made presentations highlighting achievements and difficulties in carrying out the program for mothers and children in their provinces.
In his final note, Minister Somsavat Lengsavad said that, carrying on from the success of this meeting, line ministries, mass organizations, the Commission for Mothers and Children at all levels would strengthen the leadership in implementing the policy, programs of action for mother and child, as well as the new program of cooperation between Laos and UNICEF. At the press conference UNICEF Executive Board President expressed his satisfaction at seeing progress made in fulfilling the goals and objectives of the national program of cooperation between UNICEF and Laos, and pledged to do his best in furthering UNICEF’s support for the country program. UNICEF Regional Director also made satifactory note on progress made towards the fulfillment of the CRC in Laos.
During his stay in Lao PDR, UNICEF Executive Board President also met with President Nouhak Phoumsavanh. The UNICEF envoy briefed the President of the outcome of the meeting and pledged his support in promoting the well-being of mothers and children in Laos. President Nouhak Phoumsavanh said the Lao government is committed to the promotion of maternal and child health and their education; much effort had been made to improve the living conditions of mothers and children. The President thanked the countries and international organizations which have in the past provided assistance for mothers and children in Laos. He also expressed his view that the meeting would help in providing a future direction for improving the conditions of mothers and children in Lao PDR.

ROUNDTABLE TO EVALUATE MICRO FINANCE PROGRAM IN LAOS

The development of Micro Finance in Lao PDR was discussed at a roundtable conference held in late August under the cooperative aegis of the Ministry of Finance, UNDP and UNCDF. The aim of the roundtable was to identify opportunities to further develop the Micro Finance sector with specific attention to cohesive policy of small scale and credit programs. The meeting was chaired by Finance Minister Saysomphone Phomvihane. 40 representatives from ministries of Foreign Affairs, Trade, Industry and Handicraft, Public Health, Agriculture and Forestry and the representatives from UNDP, UNCDF and the Bank of the Lao PDR.
The discussion was based on the preliminary results of a National Micro Finance Survey, conducted by United Nations Development Program (UNDP), United Nations Capital Develop-ment Fund (UNCDF) and the government between May and July 1996. The objectives of the survey was to assess Micro Finance supply and demand for the government, to provide insights into how households conduct their financial affairs, to provide information to assist policy makers, and also to identify opportunities for developing Micro Finance services. This survey conducted in all provinces since May 1996 also aimed to broaden understanding of the supply and demand for Micro Finance service in rural and peri-urban and urban areas.

TRI-PARTITE MEETING ON RETURNED REFUGEES

The Lao government has asked the UNHCR to remain in the country for at least two years, in order to help the resettlement of returned refugees and facilitate their re-entry into the mainstream. The request was made at the Eighth tri-partite meeting held in mid-September in Champassak province.
The Lao side urged Thailand and the UNHCR to encourage the United States to resume screening of refugees for admission to the Unites States so that the repatriation of the others can start as soon as possible. The Lao side reaffirmed its humanitarian policy with regard to refugees who wish to return home from any country. However, with regard to Thailand, the Lao side indi-cated that the indefinite delay in the repatriation of refugees might lead to possible changes in Laos’ stand in this matter.
The Lao delegation proposed further consultations to find solution acceptable to all con-cerning political refugees, drug addicts and those afflicted by diseases, while observing the three principles of repatriation, namely voluntariness, safety and dignity. As for those refugees who were not admitted in the United States and wished to return to Laos, the Lao side proposed that the UNHCR and the Thai side consult with each other in order to find solutions, taking into account those mutually acceptable principles.
The Lao side requested that the UNHCR and Thailand increase their assistance and co-operation in the interest of the refugees. The Lao side also asked for support from the European Union, donor countries and other countries, as well as non-governmental organizations, to help Lao refugees until they reach their final destination.
Some 27,000 returnees have resettled with the help of the government. There are still more than 4,000 refugees at the Napho camp in Thailand. Of this number, the US government has accepted 2,900. So far, 1,333 have reached the United States. The last batch of 1,745 persons are still to be screened. As for the remaining refugees, the sides concerned would need to find solutions for possible resettlement in Laos on a voluntary basis.
The tripartite meeting was chaired by Deputy Foreign Minister Soubanh Srithirath and was attended by Laos, Thailand and the UNHCR. Leading the Thai side was National Security Council Secretary-General, General Charan Kullavanijaya, while the UNHCR was represented by Regional Director for Asia and Oceania, UNHCR headquarters Francois Fouinat. UNHCR in Laos and Thailand, Marie-France Sevestre and Amelia Bonefacio, also attended the meeting.

LAO REPRESENTATIVE CHAIRS UN COMMITTEE IN NEW YORK

Lao Permanent Representative to the United Nations, Ambassador Alounkeo Kittikhoun, was unanimously elected chairman of the Special Political and Decolonisation Committee at the opening session of the 51st General Assembly in New York, on September 17, 1996.
This election was an important event as it was the first time that Laos chairs one of the six UN Main Committees, since it became member of the United Nations in 1955. It showed the increasing role and prestige of Laos in the world forum as well as international acknowledgement of Lao correct foreign policy of peace, independence, friendship and cooperation with all coun- tries, regardless of their socio-political regimes. Ambassador Alounkeo Kittikhoun will chair the said committee’s work from early Octo-ber to last week of November. Important issues to be tackled include decolonisation, peaceful use of outer space, effects of atomic radiation, Palestinian refugees, Israeli practises which affect human rights in the occupied territories, UN peace-keeping operations, etc...

US AMBASSADOR PRESENTED CREDENTIALS

New US Ambassador Wendy Jean Chamberlin presented her credentials to President Nouhak Phoumsavanh at the Presidential Palace on September 5. In a statement on her presen-tation of credentials, Ms Wendy Chamberlin said that she was returning to Laos to work for a third time. She also said she hoped to further US-Lao relations in areas that benefit both nations. She will be deeply involved in efforts to further expand the Lao-American economic relationship as the two countries move towards a bilateral trade agreement and Most-Favored-Nations status. The new Ambassador appreciated the humanitarian cooperation the Lao government has provided in accounting for Americans still missing from the war in Indochina.
Ambassador Chamberlin also called on Prime Minister Khamtay Siphandone, President of the National Assembly Samane Vignaket and Foreign Minister Somsavath Lengsavad. She ex-pressed her gratitude to the Lao leaders for their warm welcome and reaffirmed her commitment to improving the mutual understanding and cooperation between the US and Laos and in provi-ding aid in several domains to help economic development in the Lao PDR. Ambassador wendy chamberlin served as Deputy Chief of Mission at the US Embassy in Kuala Lumpur, Malaysia, before she was appointed to the post to the Lao PDR.

LAO COPERATION PRAISED ON POW/MIA RECOGNITION DAY

The Lao government’s cooperation in the search for American servicemen missing-in- action (MIA) during the Indochina war was praised by US Ambassador Wendy Chamberlin at a ceremony marking POW/MIA Recognition Day held in late September. Without the Lao governmentÕs assistance we could not hope to accomplish our goal, she said, addressing a gathering of members of the Joint Task Force Full Accounting team and embassy staff. Let us not forget that they (the Lao government) too have their missing from this period in our countries histories, and though we may have been on opposite sides then, we are now joined in a common humanitarian mission to account for the missing, Ms Chamberlin added. The Ambassador then read US President Bill ClintonÕs proclamation of September 20 as POW/MIA Recognition Day. According to the US Embassy, there are 459 American personnel unaccounted for in Laos. In another development, a joint operation group of Lao-US technicians conducting missing-in-action (MIA) surveys in 17 areas of central and southern Laos have discovered significant remains which will be sent to the United States for further identification. The joint operation was carried out in Khammouane, Savannakhet, Saravane, Sekong, Attopeu and Champassak provinces between the beginning of August and the beginning of September. This was the fifth operation under the joint action program for the 1995-1996 period, and the 50th since it began. The survey and excavation of the remains of the Americans missing-in-action, also known as MIA affairs, is in accordance with the humanitarian policy of the Lao government and in response to the request of the US government and of the families of the missing.

PUBLICATION OF GOVERNMENT ORGANIZATION MANUAL

Offical release of the first Organization Manual of the Government of the Lao PDR took place at the Office of the Prime Minister on September 20, 1996. The manual was funded under the Public Administration Reform Project of the United Nations Development Program (UNDP).
This document comes in two versions, one edition in Lao language, and one in bilingual edition for the foreign community in English and French. The manual lists the names and phone numbers of senior people in each ministry, shows the organization chart and then describes the mission and responsibilities for each ministry. As well, there is a compilation of all donor projects ministry by ministry. Copies may be purchased from the UNDP Public Administration Reform Project at a price of 5,000 kips for the Lao edition and 27,000 kips for the bilingual English-French edition. The first newsletter of the Department of Public Administration and Civil Service was also released at this same meeting. This newsletter is available in Lao only. It deals with recent changes in public administration regulations and practices.

ADB APPROVED LAON FOR NAM LEUK HYDROPOWER PROJECT

The Asian Development Bank (ADB) announced approval of a loan of US $52 million to Laos for its Nam Leuk hydropower project. The Manila-based bank said that the loan is on concessionary terms and the total cost of the project is US $112 million. The medium-sized project, located in the Special Zone of Saysomboune, Phou Khao Khwai Mountain area of Vientiane province, and part of Borikhamsay province, in central Laos, will have a capacity of 60 megawatts upon its completion in late 1999.

AUSTRALIA GIVES A $17.3 MILLION FOR 1996-97

The Australian government has approved a grant worth A $17 million to Laos during the 1996-1997 fiscal year, Australian Ambassador Roland Rich informed Foreign Minister Somsavath Lengsavad recently. This decision was made in accordance with the bilateral plan of cooperation, and to further expand the relations of friendship and cooperation between the two countries.
According to the Australian Ambassador, the parties will discuss the next phase of bila-teral cooperation during the forth coming visit of a high ranking delegation of the Australian government to Laos.

JAPAN FUNDS BRIDGE CONSTRUCTION IN SOUTHERN LAOS

The government of Japan has recently agreed to fund the construction of a bridge crossing the Mekong River in Pakse district, in the southern province of Champassak. The agreement signed in Vientiane also indicated that the Japanese government will provide funding valued at 143 millon yen or US $1.4 million for the survey and design of the bridge, which are expected to be completed by March next year. The bridge is to be 1,380 m long and 11 m wide with 1.5 m pedestrian footpaths on either side.

CONTAINER METHOD TO SPEED UP GOODS SHIPMENT TO LAOS

Three companies are taking advantage of Laos’ s regional position and have signed an agreement that will make it easier to ship goods abroad. Societe Mixte de Transport (SMT) of Laos, Maersk Lines based in Denmark and the US company, Indo-China Express, have agreed to cooperate in transporting goods by containers through Southeast Asia. The signing ceremony was held in Vientiane in mid-September between SMT and Indo-China Express, and between SMT and Maersk Lines.
In the past, goods going abroad often had to go through Thailand, and be loaded from Lao onto Thai vehicles before going to a third country. This method is time consuming, requiring excessive border paper work and inspection of goods. Now goods can be loaded into containers, a method which other countries have used for a long time. This means instead of loading goods from lorry to lorry they can stay in one container which is then hooked up to a truck with cab and flatbed.

INTEGRATED FOREST DEVELOPMENT AGREEMENT

A supplementary agreement on integrated forest industry development was signed recently between the Lao government and a Malaysian forest development company, HIPA. Within the cooperation framework, HIPA will establish a wood-based industry worth about US $80 million, with sites in the northern province of Sayaboury and Vientiane province. The products will be for export. According to the supplementary agreement, the Lao government will grant a 50-year concession to HIPA to carry out business activities in Forest No 6 of Sayaboury and No 9 of Vientiane province. The agreement also stipulates that HIPA will plant trees on 500 ha in 1996 and 1,500 ha in 1997.
At the signing ceremony, HIPA also presented 10 million kips as a contribution to help flood victims.

NAM THEUNE-HINBOUNE DAM PROJECT IN PROGRESS

The construction of the Nam Theune-Hinboune Hydropower Station, which started in 1994, is well underway with one fifth of the work already completed. This hydropower station is expected to be completed in 1998 at a cost of US $280 million. When completed, the dam located on the fringe of the central provinces of Borikhamsay and Khammouane will be 25 metres high and 268 metres wide. A 5.2 km tunnel will need to be drilled, and a power house with two 105 mw generators built. Other work includes a 4 km waterway from the power house to the Nam Hay River, and a 160 km-long power transmission line of 230 KV between the power house and the grid network of Electricity Generating Authority of Thailand (EGAT), located in Sakon Nakhon province, northeastern Thailand, via Khammouane province central Laos.
This power station project posed no threat for the environment. The highest water level in the reservoir is the same level as the highest level of the river during the rainy season. The people in the area from the power house to the Nam Hay river will see benefits in agriculture and animal husbandry. The project will also provide spin-off services, such as in health, education, water supply and in the improvement of Road No 8. After the completion of this power station, the Lao government will receive an annual income of US $30 million from royalties, taxes and shares. Electricite du Laos holds 60 per cent of the shares in the joint venture, the Nordic Hydropower Company holds 20 percent, and the MDX Power Company with a 20 per cent holding. 95 per cent of the power generation will be exported to Thailand, on the basis of an agreement on electricity purchase reached in mid-1996. The station will have an annual production of 1,570 mw/h but the capacity will decline to 1,320 mw/h if the Nam Theune 2 Hydropower Station comes into existence.

PLANS FOR RURAL DEVELOPMENT IN BOKEO

A meeting to work out the plan of action for rural development in Bokeo province has set some big targets in infrastructure and management development, noting that over US $14 million has already been donated to meet these goals. The purpose of the meeting was to integrated rural development projects into one big plan by such means as the construction of a 70 km road linking Houai Sai district to Mom village. The meeting also looked at rural development in 21 villages, in the two target districts of Houia Sai and Tonpheung. Under the plan of action, several projects will be undertaken, including school repairs, irrigation construction, promotion of animal husbandry, cultivation, watershed manage-ment, and the supply of clean water and medical equipment, which started in late 1995, is to run for six years. The meeting also reviewed the implementation of the program to date. So far the program has received US $14,439,000 from foreign donors and the Lao government.

PUBLIC AWARENESS CAMPAIGN ON NAM THEUN 2 PROJECT

The Science, Technology and Environment Organization (STENO) held a public aware-ness conference, giving information on the Nam Theun 2 Dam Project as part of a campaign to to let the public know about the environmental effects of the project. The aim of the campaign is to reassure people that the construction of the Nam Theun 2 Hydropower Project will be carried out in conformity with Lao socio-economic necessities and international environmental principles in mind. The conference is part of the combined work of the STENO, the Nam Theun 2 Electric Consortium (NTEC), and the World Bank.
The information campaign will run on three levels: local, national and international. Ac-cording to STENO, priority is being given to the local level, where the campaign will inform local people about the environmental effect of the dam, ask them for comments and let them join the decision-making process.
At the international level, the Lao government will invite internally-recognized individuals with an environmental background to be advisors. One such person could be a former environment Minister of Indonesia. There will also be a group of specialists formed, consisting of engineers, environmentalists, and hydropower industrialists, among others. These specialists will present relevant information and data to the mass media. The construction of the Nam Theun 2 Hydropower Project, located in central Laos, is a big and costly project. Upon its completion, Laos will have a high capacity for electricity gene-ration. This in turn will earn revenue for Laos when the electricity is sold to Thailand. However, the project has caused concerns that it might destroy environment.

NAM THEUN 2: LAO PEOPLE HOPE FOR A BETTER LIFE

History of Nam Theun 2 (NT2)
NT2 was identified as a potential hydropower site in the 1970s; further studies in the 1980s rated NT2 a favorable site; and a 1991 panel of experts appointed by the World Bank ranked NT2 as the most economic option in Laos. In March 1993, the government decided to proceed with NT2.
In June 1993, the Lao and Thai governments agreed to develop 1,500 MW capacity for the sale of electricity to Thailand by 2000; in June 1996 this was extended to 3,000 MW by 2006. In November 1993, the government granted the mandate to develop NT2 to the Australian company, transfield, which then formed a consortium of five international companies: the Nam Theun 2 Electric Consortium (NTEC). Once the project begins, NTEC, composed of the five partners, Transfield, Electricite de France, Italian-Thai Development, Jasmine International and Phatra Thanakit, becomes a company holding 75 per cent of the shares and the Lao government 25 per cent.

The Project
The project is situated in central Laos, about 250 kilometres east of Vientiane in the area of the Nakai Plateau in Khammouane province about half way between Thailand and Vietnam. The plateau is 70 km long and 15 km wide with 4,000 sq km of mountains to the northeast, and a 300m escarpment to the southwest.
The Nam Theun runs along the plateau in a northwest direction, joining the Nam Gnouang near the site of the Theune-Hinboun dam, which is renamed the Nam Kading, then flows into the Mekong at Pak Kading. A dam across the Nam Theun will create a reservoir of 450 sq km (45,000 ha), covering approximately half of the plateau. About half way along the southwest edge of the reservoir, water would flow from the reservoir down a tunnel to an underground power-house at the foot of the escarpment, about 40 km northeast of Thakhek. After passing through the powerhouse, the water will travel along a channel through Gnommalat and Mahaxay districts - from where it can be drawn for irrigation - b efore it flows into the Se Bangfai, then the Mekong.
Transmission lines will carry the electricity overland from the powerhouse to Thailand, crossing the Mekong just north of Savannakhet. Part of the production will go to meet local needs.

The Social Impact
About 1,000 families who currently live on the Nakai Plateau will need to be resettled. Each of the villages to be resettled have been visited several times and the project has been ex-plained. The government has established a Resettlement Committee which is developing a policy which will form one of the bases of the Resettlement Plan.
Proposed resettlement sites are currently being assessed, to determine their agricultural potential and how many families they can accommodate on a sustainable basis. Four studies on the plateau all show the villages are poor. Most families grow enough rice for six months of the year. Literacy is estimated at 10 per cent. Only 20 percent of the children regularly attend school. No girl attends school beyond grade 8. Health services are extemely limited. Some villages have to walk two days to a health centre. The project will benefit the local area via improved roads, provision of electricity, health and education services, the development of agro-forestry and potential dry season irrigation as well as skills development and job creation. The Lao Women’s Union in Khammouane province has conducted a household survey to establish a database of household assets. This work has been taken further by CARE International. The Protection of Biodiversity Funds from the project will be also allocated to the protection and sustainable manage-ment of the adjacent Nakai Nam Theun Conservation and Protected Forest Area (3500 sq km) which is of international significance in terms of biodiversity, and is currently unmanaged.

What the Lao Government Gets
The government, with 25 percent ownership in the project, will receive dividends and royalties amounting to more than US $1billion (current value dollars) or more than US $3 billion (dollar-value of the day) in the first 25 years. NT2 alone will increase the Lao government’s in-come by about 15 per cent.
This money can be used to alleviate poverty, particularly through improvements to health and education, and for other programs in rural and urban areas. In addition, the hard currency in-come will help stabilize the economy, reduce pressure on inflation and the exchange rate, and permit reductions in interest rates.

World Bank Studies and Public Consultation

World Bank involvement is sought because the Bank has the capacity to assist governments like that of Laos to build the necessary technical, financial, legal and management skill-base to ensure that projects are implemented in a way that optimizes the benefits to the country. The government and the World Bank have agreed to undertake three additional and indepedent studies to further examine the projectÕs viability and value for Laos and to undertake a comprehensive Public Consultation and Participation Program. One of the three government studies will examine whether NT2 is an appropriate hydro project to develop in Laos, taking into account social and environmental, as well as economic, factors, and whether its proposed configuration is optimal on this criteria. Another will examine NT2Õs economic impact on Laos. And the third will further develop the conservation management plan for the protected area adjacent to the NT2 reservoir. The studies will begin in the coming months.

The Public Consultation and Participation Program for NT2 will be undertaken at four main levels: * Local - villagers on the Nakai Plateau who are to be resettled, the host communities and the downstrean communities who will be affected by the project; * Regional - people of Khammouane, Borikhamsay, and Savannakhet province;
* National - people of Laos who are represented in Vientiane through the central authorities and agencies, Lao-based non-governmental organizations, and foreign diplomats; and
* International - members of the international community abroad who have an interest in the project, in Laos, and the region in general.

RELIEF CARGO FROM OAKLAND TO FLOOD VICTIMS IN LAOS

Indo-China Express of Oakland, California, has appealed to their friends, relatives, col-leagues, clients, and members of the ocean carrier community for non-perishable donations such as canned and packaged foods including bagged rice, clothing, kitchen ustensils, home medicines, etc... towards the relief effort to the Lao people who recently experienced devastating floods. A 20-ft container worth of relief supplies have been accumulated and loaded aboard the vessel “Maren Maersk V9609” which is scheduled to sail from port of Oakland at the end of October. Indo-China Express is a licensed international freight forwarder and has recently esta- blished a representative office in Vientiane. Its most important accomplishment to date has been the establishing of an agency and containeryard for Maersk Line of Denmark in Lao PDR.

A R T S C U L T U R E T R A D I T I O N INTERNATIONAL CONFERENCE ON LAO CULTURAL HERITAGE PRESERVATION

The International Expert Meeting for the Safeguarding and Promotion of the Intangible Cultural Heritage of the Minority Groups of the Lao PDR held under UNESCO aegis, gathered scholars and experts from 11 countries in Vientiane from 7-11 October. Sixty participants attended the four-day meeting funded by UNESCO, the governments of France and Japan. Among them were prominent scholars: Professors Georges Condominas from Ecole Pratique des Hautes Etudes en Sciences Sociales, Paris; Grant Evans, University of Hong Kong; Leedom Lefferts, Drew University, U.S.A; M. Golbeil and N. Aikawa from UNESCO.
UNESCO Director General representative Noriko Aikawa said: Laos is the ideal country for such a meeting because of the peaceful coexistence of many minorities... Cultural pluralism is a factor of peace... This extraordinary diversity is not found in many countries in the world.
Intangible heritage, which includes languages, songs and music, poems, cultural traditions, and expertise in material cultural productions, is in danger of extinction and must be urgently pre-served. The meeting was designed to help Laos set up a national plan to safeguard and promote the intangible cultural heritage of its ethnic minorities. The various ethnic groups must become aware of the great value of their culture and its role within the national community. The importance of ethnic minority culture to the national heritage was also emphasized. Two out of four projects submitted by the Lao Ministry of Information and Culture (MIC) to the meeting were accepted by the participants. The two projects are the creation of a place for training in ethnographic and linguistic investigation in southern Laos (Attopeu) and the creation of a polyvalent centre for languages and culture in Phongsaly. Two other projects were not retained: the creation of a Khmu traditional dance, song and music troupe, and the revival of Hmong weaving, embroidery and batik. The participants adopted a Vientiane Declaration (see text in box below) to serve as basis for further action by UNESCO and a number of recommendations:

In the short term:
1. To establish, under the responsibility of MIC, local level training places for non-scholars in the region (culture activists, teachers, medical workers) for immediate training in languages and cultures for the safeguarding of immaterial heritage of ethnic groups. To start these operations, assistance from international experts with long experience in this matter could be sought. Those experts could bear part of the expenses (as proposed by researchers from American, Australian, Dutch, French, Hungarian, Japanese and Vietnamese institutions).
2. To strengthen the capacity for training Lao researchers according to proposals by various international institutions which are ready to welcome them: University of California (Los Angeles); Institute for the Study of Languages and Cultures of Asia and Africa (Tokyo); Institute of Lan- guages and Cultures for Rural Development, Mahidol University (Bangkok); Centre d’Anthropologie de la Chine du Sud et de la Peninsule Indochinoise CACSPI), Ecole des Hautes Etudesen Sciences Sociales, Ethnologie et Sociologie d’Asie du Sud-Est, Ecole Francaise d’Extreme- Orient, ORSTOM (Paris); La Trobe University (Melbourne).
3. To strengthen the Institute for Research on CultureÕs (IRC) technical rate of 8 to 8.5 percent. The report indicates that efforts will be made to control the inflation rate, which is no more than 10 per cent. By 2000, the annual state revenue is expected to increase by 16 to 16.5 percent. By 2000, the countryÕs population is expected to reach 5.2 million and the per capita income should be around US $500. On investment matters, the report points out that there is a need to promote investment at an annual rate of 25-30 percent, of which the public investment should be no less than 12 percent. The total investment needs from 1996-2000 range about 3,500 billion kip, equivalent to US $3,800 million.

In the long term:
1. To create a department of ethnology and linguistics at the National University on the basis of IRCÕs existing documentation.
2. To create a national ethnology museum, aimed at conservation but also research. It was also proposed to take into account the recommendations made by the three commissions -- language and literature, cultural life, and music and performing arts.
The current session of the National Assembly ended its deliberations on October 11. Present at the opening session were President of the Republic Nouhak Phoumsavanh, Prime Minister Khamtay Siphandone, members of the Political Bureau and the Central Committee of the Party, ministers and deputy ministers. Also present were members of the diplomatic corps and international organizations.

FINANCE MINISTRY TO HANDLE BUSINESS PRIVATIZATION

Responsibility for the privatization of business has been transferred to the Ministry of Finance. In the past, the privatization management bureau, which was responsible for the shifting of state enterprises to the new management mechanism, was part of the State Planning Committee This bureau handles matters of change in the ownership of enterprises, for example, the change from state-run to privately-run enterprises.

9US-ASEAN COUNCIL SPONSORED MEETING BETWEEN LAO PDR DELEGATION WITH PROMINENT U.S.BUSINESS EXECUTIVES

The Lao PDR delegation to this year ’s World Bank-IMF annual meeting had a privileged opportunity to interact with senior executives of prominent U.S. private business groups under the auspices of the US-ASEAN Council. The meeting took place at the prestigious Franklin Club in downtown Washington, DC. Among the key U.S. companies present at the meeting were: IBM, Caterpillar, Black & Veatch, Overseas Private Investment Corporation, IFC, Iradium, Edison Misson Energy, Oracle Corporation, Asian Investment Strategies, Inc., Cleary, Gottlieb, Steen & Hamilton. Following an informal interaction among all attendees, Minister of Finance Xaysomphone Phomvihane gave an overview of the economic and private investment situation in the Lao PDR. He pointed out, specifically, that there is great potential mutual benefit in expanding and diver-sifying the Lao-American economic ties. He noted the recent signing of the OPIC agreement and expressed the hope that the ensuing Trade Agreement can be concluded soonest possible. And in this regard, he expressed the belief that the U.S. private sector has a significant role to play in promoting closer economic ties between the Lao PDR and the United States. He further noted that the U.S. private sector investment is currently ranked second but has the potential to become the leader in foreign investment in Lao PDR. He urged cooperation from U.S. firms and the U.S.-ASEAN Council to make this common goal a reality. Accompanied the Minister at this meeting were managers and entrepreneurs of key state enterprises from the Lao PDR, as well as some key Laotian-American professionals.

THE VIENTIANE DECLARATION
1. We, the participants to the International Expert Meeting for the Safeguarding and Pro- motion of the Intangible Cultural Heritage of the Minority Groups of the Lao People Democratic republic, (Vientiane, 7-11 October 1996);
2. Note with satisfaction the constitutional and legal provisions taken by the Lao PDR, a multi-ethnic country, concerning its ethnic minority groups;
3. Take note with great interest of the resolution adopted by the Fifth Congress of the Lao People’s Revolutionary Party, defining Culture as the basis for the nationÕs stability, the motor of societyÕs progress, and the objective of socio-economic development;
4. Also take note of the importance given by the Sixth Party Congress of March 1996 to ethnic minority issues emphasizing that the State must conduct a policy of unity, and equality between ethnic minority groups;
5. Record the action taken in favor of ethnic groups by the Ministry of Education, the Ministry of Information and Culture, the Ministry of Agriculture and Forestry, the Lao Front for National Construction, the Lao Women’s Union, the Ministry of Labor and Social Welfare, and other State organizations in cooperation with international organizations of the United Nations system (UNESCO, UNDP, UNICEF, UNHCR), NGOs, public and private foundations, and bilateral aid organizations;
6. Also record the recommendations adopted by the International Expert Meeting on the safeguarding and promotion of the intangible cultural heritage of the minority groups in the field of language, traditions, customs, beliefs and way of life, arts and music;
7. Request the government, in conformity with the constitutional and administrative provisions, to facilitate the implementation of the recommendations for the safeguarding and promotion of the intangible cultural heritage of minority groups, taking into account the meeting’s deliberations;
8. Ask the donors - bilateral and multilateral sources as well as NGOs and foundations to extend their technical and financial support to the government in the implementation of the activities recommended by the meeting; Invite UNESCO, in cooperation with the government, to pursue its efforts in the mobiliza- tion of resources necessary for the implementation of this declaration.

Posted date: Oct 17, 1996

LAO PDR ECONOMY GROWS, AND SO DOES THE GAP BETWEEN RICH AND POOR. The Washington Times (p.A17) reports that a decade after Lao PDR embraced capitalist-style economic changes and cautiously opened its doors, this impoverished communist nation in the heart of Southeast Asia is starting to move forward. But while the standard of living has risen in the urban sector, little has been done to fight malnutrition, disease, and illiteracy in the valleys and hills where most Laotians live. "The growth is not distributed equally. The challenge this country is facing is a widening gap between city and country, the rich and the poor," said Jan Mattsson, Head of the UNDP in Lao PDR. The World Bank estimates that half of Lao PDR's 4.6 million people still fall below a poverty line set at $12 of income or goods per month, the story says.

There are fears that the economic gap could bring political instability and that wide-open doors could lead to loss of both party control and national sovereignty, says the story. The country is landlocked, heavily dependent on about $200 million in foreign aid each year, and surrounded by economically aggressive Thailand, Vietnam, and China. It has little to offer foreign investors except natural resources -- chiefly minerals, hydroelectric potential and rapidly diminishing forests. The story says that, since 1988, foreigners have invested $5 billion -- three quarters of that going into hydroelectric power projects that economists say could help pull Lao PDR out of poverty over the decade.

Posted date: Friday Nov 8, 1996

LAOS: Local IMF representative Paul Wade said today that last week's fund mission to the country was pleased with macroeconomic progress. He highlighted the drop in annual inflation to 4.5% last month, down from 29% in February, and expected growth this year of 7.5% as particularly positive developments. However, the outlook for continued low inflation and high growth is critically dependent upon the performance of the agricultural sector. See APDB, August 30, 1996, II.