Laos communists to tussle over China-Vietnam role

Traffic passing billboards marking the 9th national congress of Lao People's Revolutionary Party at Pattouxay monument square in Vientiane. -- PHOTO: AFP

VIENTIANE - THE ruling communist party of Laos opened its five-yearly congress on Thursday, an event analysts say will see a power struggle between rival pro-Vietnam and China camps.

Red banners are on display throughout the capital Vientiane, where 576 delegates of the Lao People's Revolutionary Party (LPRP) are gathered until March 21 to choose members of the ruling Politburo, according to state media.

Representing more than 191,700 party members, delegates are to decide who will take the key post of general secretary, currently occupied by 75-year-old Choummaly Sayasone, who is expected to stay in the job.

The congress - described by the Vientiane Times as 'the most significant event in the country's political life' - is the traditional venue for the redistribution of powers.

But in a surprise move in December, Prime Minister Bouasone Bouphavanh quit to be replaced by National Assembly president Thongsing Thammavon.

Analysts say his appointment points to a realignment of power in favour of the party's pro-Vietnamese factions and those wary of major Chinese investments pouring into the country. -- AFP

Cambodia says it is ready for border observers

Cambodian Prime Minister Hun Sen piled the pressure on Thailand regarding the stationing of observers at the border to monitor a permanent ceasefire in the area adjacent to Preah Vihear Temple. -- PHOTO: AFP

THAILAND - CAMBODIAN Prime Minister Hun Sen on Thursday piled the pressure on Thailand regarding the stationing of observers at the border to monitor a permanent ceasefire in the area adjacent to Preah Vihear Temple.

'I appeal to Indonesia, if Thailand is hesitant about observers, then please send them urgently to the Cambodian side at the disputed border area,' Mr Hun Sen said during the celebration of the 13th national cultural day at Phnom Penh's Chaktomuk Hall.

Thailand and Cambodia agreed during an informal meeting of Asean foreign ministers in Jakarta on Feb 22 to allow Indonesian observers to assess the situation after a border skirmish on Feb 4 to 7 killed some 10 people including three civilians on both sides.

Indonesia, as chair of the Asean, sent the terms of reference (TOR) related to the observers to Thailand and Cambodia last week.

On Wednesday, the Foreign Ministry's permanent secretary Theerakun Niyom said that Thailand was still studying the TOR and the ministry needed to consult the military on the procedure. He added that Thailand would need time to study the TOR, since Indonesia had not set any deadline for response.

In comparison, Cambodia has already told the Asean chair that it has accepted the TOR. 'We took no more than 24 hours to reply, and provided the 14 points for Indonesian observers to follow. We will make further concessions if necessary,' Mr Hun Sen was quoted as saying by Xinhua news agency. 'The observers can extend their terms after 12 months.' -- THE NATION/ANN

Phnom Penh is ready for border monitors

JAKARTA - CAMBODIA has welcomed Indonesian observers to monitor a permanent cease-fire at the disputed border area near Preah Vihear Temple, giving a positive response to Jakarta's proposed terms of reference for the process, the Asean chairman said on Tuesday.

Thailand and Cambodia agreed during an informal meeting of Asean foreign minister in Jakarta last week to allow a team of observers from Indonesia to assess the situation at the disputed border area after clashes in early February claimed 10 lives, including three civilians on both sides.

Indonesian Foreign Minister Marty Natalegawa, the current chairman of Asean, said in Jakarta on Tuesday he had sent the terms of reference (TOR) to both sides last week.

'Cambodia has responded positively. Now, we are waiting for Thailand's response,' he was quoted as saying by Xinhua.

Indonesia had set up two teams consisting of 30 officials, he said.

'We prepared 15 officials to observe the situation on the Thai side, namely the Indonesian Observer Team-Thailand, and to the other side, we will send the Indonesian Observer Team-Cambodia,' he said. -- THE NATION

Cambodia opposition leader loses final appeal

PHNOM PENH - CAMBODIA'S exiled opposition leader on Tuesday lost a final appeal against a two-year jail term imposed in absentia - a sentence his lawyer denounced as politically motivated.

Cambodia's Supreme Court upheld Sam Rainsy's conviction early last year for inciting racial discrimination and intentionally damaging wooden posts denoting the boundary with Vietnam in an incident in October 2009.

'The decision by the Supreme Court is not fair and it is not justice for my client. I always tell the court that this is a politically-motivated case, not a penal case,' Sam Rainsy's lawyer Choung Chou Ngy told AFP.

'I have not yet consulted with my client about our next step,' he added.

The outspoken opposition politician, who lives in France, had already lost his first appeal against the sentence.

He now faces a total of 12 years in prison if he returns to Cambodia, after a court late last year also sentenced him to 10 years in jail for publishing a false map of the border with Vietnam in a separate case. -- AFP

Cambodia urges Asean ceasefire deal with Thailand

Cambodia's Prime Minister Hun Sen gestures during a press conference in the Peace Palace in Phnom Penh, Cambodia. -- PHOTO: AP

PHNOM PENH - CAMBODIA said on Thursday it would press Thailand to sign a permanent ceasefire at a regional gathering next week as both countries remained at odds over how to settle a deadly border row.

Prime Minister Hun Sen said Cambodia would urge its neighbour to agree a peace deal during a meeting of foreign ministers from the Association of Southeast Asian Nations (Asean) in Jakarta on Tuesday.

But Thai Prime Minister Abhisit Vejjajiva rejected the idea of Asean involvement in resolving the dispute, which erupted into armed clashes between the countries earlier this month.

Four days of heavy fighting near a 900-year-old border temple left at least 10 people dead and displaced thousands of families on both sides of the frontier.

'During the upcoming Asean meeting, Cambodia will request that a ceasefire agreement be signed between the Cambodian and Thai foreign ministers under the witness of Asean or the Asean chair,' Hun Sen said at a press conference in the Cambodian capital.

He also confirmed that his country will call for Asean observers to come to the border area to help ensure a ceasefire holds. -- AFP

New skirmish on Thai-Cambodian border

A Thai soldier was wounded in a new skirmish on the tense Cambodian border. -- PHOTO: AFP

BANGKOK - A THAI soldier was wounded on Tuesday in a new skirmish on the tense Cambodian border, Thailand's military said, just hours after the UN appealed for a permanent ceasefire in the disputed area.

'Cambodia threw hand grenades into Thailand this morning,' Thai army spokesman Colonel Sunsern Kaewkumnerd said, describing it as a minor incident. 'One Thai soldier was injured.'

A Cambodian military commander near the border who did not wish to be named denied the accusation, saying Thai troops regularly threw grenades but Cambodian forces did not retaliate. -- AFP

Abhisit urges Phnom Penh to listen to UN Security Council

Thailand Prime Minister Abhisit Vejjajiva said that Cambodia should listen and do what the UNSC has called for to settle the deadly border disputes with Thailand. -- PHOTO: REUTERS

THAILAND - CAMBODIA should listen and do what the UN Security Council (UNSC) has called for to settle the deadly border disputes with Thailand, Prime Minister Abhisit Vejjajiva said on Tuesday.

Mr Abhisit was speaking after UNSC hosted a closed door session, at the request of Cambodia, on Monday with foreign ministers of Cambodia, Thailand and Indonesia, in an attempt to mediate the border clashes which erupted on Feb 1.

After the meeting, the UNSC called for a 'permanent ceasefire' between Thailand and Cambodia and called on the two sides to display maximum restraint and avoid any action that may aggravate the situation.

They were also called for both sides to resolve the situation peacefully and through effective dialogue.

'Now, Cambodia should listen to the UNSC's recommendations because it's Cambodia that called for the UN to step in. The country should now respect the UNSC which called for us to start dialogue in order to settle the dispute peacefully,' the premier said.

He also said he expected Cambodia will agree to talk about the issue when Asean foreign ministers meet in their annual meeting in Jakarta on Feb 22. -- THE NATION/ANN

Thailand to reject UN help over Cambodia

Thailand Prime Minister Abhisit Vejjajiva said that Thailand was confident that it could make a strong case at the closed door meeting in New York. -- PHOTO: REUTERS

BANGKOK - THAILAND will tell the UN Security Council there is no need for outside mediation to resolve a deadly border conflict with Cambodia, Prime Minister Abhisit Vejjajiva said on Sunday.

He said Thailand was confident that it could make a strong case at the closed-door meeting in New York on Monday to show that Phnom Penh sparked the standoff over disputed territory, which has left eight people dead.

'We're confident that we can explain that (Cambodia's claims) are wrong,' he said in his weekly television address.

'Cambodia is calling for (intervention by) a third country, the UN and peacekeeping forces. Thailand will call for a return to bilateral talks on demarcation,' he said.

Thailand will present evidence including pictures and media reports to support its case and show that Cambodia used an ancient temple at the centre of the dispute as a military base, he added.

Thai Foreign Minister Kasit Piromya is due to attend Monday's Security Council meeting, along with his Cambodian counterpart Hor Namhong. Thailand and Cambodia have blamed each other for the clashes around the ancient temple of Preah Vihear, which sparked four days of fighting earlier this month. -- AFP

Thailand rejects UN visit to temple in Cambodia rift

The 11th-century Preah Vihear temple, built to honour the Hindu god Shiva, has been a source of contention between Thailand and Cambodia since it was granted UN World Heritage status in July 2008. -- PHOTO : REUTERS

BANGKOK - THAILAND opposes a proposed visit by the world heritage body Unesco to inspect an ancient temple at the centre of a deadly border dispute with Cambodia, a government official said on Thursday.

'Because of the current situation at the border, we believe that a Unesco mission now would not be appropriate and could complicate the issue,' said Thai foreign ministry spokesman Thani Thongphakdi.

'But if Unesco wishes to visit the temple, it should seek the approval of Thailand as the mission would have to go through areas which are under our sovereignty,' he told AFP.

The 11th-century Preah Vihear temple, built to honour the Hindu god Shiva, has been a source of contention between Thailand and Cambodia since it was granted UN World Heritage status in July 2008.

The World Court ruled in 1962 that the clifftop structure belonged to Cambodia but both countries claim ownership of a 4.6-square-kilometre surrounding area.

Cambodia said on Sunday that a wing of Preah Vihear had collapsed due to Thai artillery shelling. -- AFP

Thailand rejects UN visit to temple in Cambodia rift

BANGKOK - THAILAND opposes a proposed visit by the world heritage body Unesco to inspect an ancient temple at the centre of a deadly border dispute with Cambodia, a government official said on Thursday.

'Because of the current situation at the border, we believe that a Unesco mission now would not be appropriate and could complicate the issue,' said Thai foreign ministry spokesman Thani Thongphakdi.

'But if Unesco wishes to visit the temple, it should seek the approval of Thailand as the mission would have to go through areas which are under our sovereignty,' he told AFP.

The 11th-century Preah Vihear temple, built to honour the Hindu god Shiva, has been a source of contention between Thailand and Cambodia since it was granted UN World Heritage status in July 2008.

The World Court ruled in 1962 that the clifftop structure belonged to Cambodia but both countries claim ownership of a 4.6-square-kilometre surrounding area.

Cambodia said on Sunday that a wing of Preah Vihear had collapsed due to Thai artillery shelling. -- AFP

Also read:

Thai-Cambodian border quiet after deadly clashes

Cambodian army soldiers man a checkpoint near Preah Vihear temple on the border between Thailand and Cambodia. -- PHOTO: AP

PREAH VIHEAR (Cambodia) - CAMBODIAN and Thai troops held their fire on Tuesday as the UN Security Council said it was willing to meet to discuss four days of deadly border clashes near a disputed 11th-century temple.

No new fighting has broken out since brief skirmishes early on Monday, but a Cambodian military commander stationed near the temple said the situation remained 'tense'.

'We are still on alert,' said the source, who did not wish to be named. The unrest, which first broke out on Friday, has left five Cambodians and two Thais dead, including at least one civilian on each side.

Phnom Penh says that Thai artillery fire had damaged the Preah Vihear temple at the centre of the standoff. Thousands of families on both sides of the frontier have been displaced by the violence.

Many have been forced to seek shelter in camps, schools and pagodas in villages farther away from the border as they wait for hostilities to end.

Both Thailand and Cambodia have written to the UN Security Council twice about the border unrest, with Bangkok accusing Phnom Penh of seeking to use 'internationalisation' of the conflict. -- AFP

Thai-Cambodian border ceasefire agreed

A house burns on the Thai-Cambodian border. Fresh fighting broke out early on Saturday. -- PHOTO: AP

PHNOM PENH - THAILAND and Cambodia negotiated an end to deadly fighting on their border on Saturday, both armies said, after at least four people were killed in clashes near a disputed temple.

'Thailand and Cambodia have agreed a ceasefire and both sides will not reinforce their troops,' Thai army spokesman Colonel Sunsern Kaewkumnerd told AFP after military commanders from both sides met for talks in a border town.

A Cambodian general also confirmed the end to hostilities, but added that the 'situation right now is still tense'.

One Thai soldier was killed in brief morning skirmishes near the 11th-century Preah Vihear temple, following two hours of heavy fighting on Friday that left a Cambodian soldier and a Thai civilian dead.

Military sources said a Cambodian civilian who made a living photographing tourists at the temple had also been killed in Friday's clash, although the Cambodian government declined to confirm this.

Reports from the border suggested four captured Thai soldiers were returned following the ceasefire talks. Both sides have reported injured troops. -- AFP

Fresh fighting at Thai-Cambodian border

A house burns on the Thai-Cambodian border. Fresh fighting broke out early on Saturday. -- PHOTO: AP

PHNOM PENH - THAI and Cambodian soldiers briefly exchanged fire again on the two countries' border early on Saturday, a military source said, hours after heavy clashes left one soldier and a civilian dead.

Renewed gunfire broke out at around 6am local time (2300 GMT, 7am Singapore time) near the disputed Preah Vihear temple, a Cambodian military commander who did not wish to be named told AFP by telephone. The fighting appeared to subside shortly afterwards.

'The fighting lasted between 20 and 30 minutes,' the source said. He added that one Thai soldier had been captured, but that there were no reports yet of any injuries.

One Cambodian soldier was killed on Friday afternoon, the same source said, after clashes between the two neighbours erupted for the first time in more than a year as simmering border tensions boiled over.

A Thai villager was also killed by artillery shelling and five Thai soldiers were injured, Thai public health minister Jurin Laksanawisit said. Both countries accused the other of starting the fighting, the deadliest since April 2009, as the United States urged 'maximum restraint'.

Mr Chhum Socheat, a spokesman for the Cambodian defence ministry, said on Friday that at least four Cambodian soldiers had been injured and four Thai soldiers had been captured in fighting that lasted for nearly three hours. The area around the temple is claimed by both sides and Cambodian foreign ministry spokesman Koy Kuong said Phnom Penh planned to complain to the United Nations over what it termed the 'Thai invasion'. -- AFP

Five Thais walk free in Cambodia border case

A Thai activist Panich Vikiitreth (left) arrives at Phnom Penh Municipal Court. -- PHOTO: AP

PHNOM PENH - FIVE Thais including a ruling party politician received a suspended sentence Friday for illegally entering Cambodia, in a case that has strained diplomatic ties between the two countries.

They were among seven Thais arrested in Cambodia on Dec 29 for illegal entry and trespassing on a military area, charges that carried a maximum combined sentence of 18 months in prison.

'The Phnom Penh Municipal Court has found the five suspects guilty' on both charges, said presiding judge Suos Sam Ath, adding that each had been sentenced to nine months in jail and a fine of one million riel (S$321).

Acknowledging time already spent in a Phnom Penh prison before they were bailed a few days ago, the judge said the rest of the sentence was suspended.

Thai lawmaker Panich Vikitsreth of the Democrat Party looked relieved and smiled after the verdict was read out.

He was seen leaving the court in a Thai embassy car with the four other Thais. -- AFP

US drops Laos conspiracy case

SACRAMENTO (California) - US PROSECUTORS on Monday dropped all remaining charges against 12 defendants accused of plotting to overthrow the communist government of Laos.

The US attorney's office in Sacramento filed a motion to drop the charges 'in the interests of justice,' according to court documents obtained by The Associated Press. US District Judge Frank Damrell Jr granted the motion.

'Based on the totality of the circumstances in the case, the government believes, as a discretionary matter, that continued prosecution of defendants is no longer warranted,' said the motion, which was filed in US District Court in Sacramento.

The move follows the death of Hmong leader and Vietnam War-era General Vang Pao, 81, last week. Vang Pao was dropped from the case in 2009. The general led Hmong guerrillas in their CIA-backed battle against communists during the Vietnam War and was revered as a father figure by the Hmong.

A federal judge in November dismissed key parts of the case against the 11 members of the Hmong community and a retired US Army lieutenant colonel. That included the government's charge that the men violated the federal Neutrality Act.

The act prohibits people in the United States from taking part in a military action against the government of another nation with which the US is at peace. -- AP

Cambodian prince re-enters politics

PHNOM PENH - CAMBODIAN Prince Norodom Ranariddh returned to politics on Saturday with a vow to reinvigorate the flagging royalist movement, taking the helm of his former party which has re-adopted his name.

Two years after quitting politics, Prince Ranariddh, who was Cambodia's first elected prime minister in 1993 after years of civil war, was re-instated as president of the party he created during a meeting in the capital.

Party members also agreed to re-name the Nationalist Party the Norodom Ranariddh Party (NRP).

The 66-year-old son of former king Norodom Sihanouk said in a speech that he was returning to politics to re-unite royalists ahead of 2012 local elections and a 2013 general election.

'I have seen that the royalists are hopeless, separated, I want them to be one family,' he said.

Prince Ranariddh called for an alliance with fellow royalist party Funcinpec, with him as leader. -- AFP

Mekong Times Interview on Cambodia's Oil and Gas Prospects

I was recently interviewed about my recent trip to Cambodia by Craig Guthrie of the Mekong Times. This interview ran in the March 26, 2008 edition of the newspaper:

THE MEKONG TIMES Q&A
Policy expert: oil revenue mismanagement could cause social unrest

Do you think that oil and gas revenues have great potential to help poverty reduction in Cambodia?

As you know it is unclear how much oil and gas will be accessible. Everyone is waiting for Chevron's assessment. I have heard estimates from 200 million to 2 billion dollars a year. But clearly the Cambodian government is trying to play it down and manage expectations. While it does seem that many average Cambodians are aware of the potential oil and gas revenue, the government will likely try to lower expectations. Of course, the revenue could potentially be used for the good of Cambodian society to build roads, schools, and hospitals. I understand the Cambodian government is looking at Azerbaijan as a possible model. Other models might be East Timor or Norway. However, it is more likely that half of the revenue will go into the private bank accounts of government officials, thereby strengthening Cambodia's system of patronage. Will the other half be used for good or will it be used on meaningless projects? That is an open question.

What are the biggest risks posed by the injection of oil revenues into the country?

The biggest risk appears to be a possible people power movement or social unrest as a reaction to what is often called the resource curse. You have an explosive mix in Cambodia of a young population--many of whom did not experience Pol Pot's regime and are therefore less fearful--a high youth joblessness rate, rising inflation in the energy, food, and real estate sectors, and new opportunities for corruption. Even the government is worried about this scenario. I think it is particularly interesting that these problems could conflate with low quality Chinese investment in the hydropower and mining sector, which is destroying any progress Cambodia has made in strengthening human rights over the past few years, as one politician told me.

What steps should Cambodia take to avoid the "resource curse" and do you think there is the political will to take these steps?

Although it is difficult to predict political will, there are a few steps Cambodia might take to make it more likely that it will avoid the resource curse. First, it would help to get civil society groups involved with bringing transparency to the collection of oil and gas revenue. One step would be for the government to implement the Extractive Industries Transparency Initiative (EITI) and work with civil society partners like Cambodians for Resource Revenue Transparency. Second, the parliamentary budgetary process should be fair. A petroleum law that ensured the responsible use of oil revenues may help. I understand that Oxfam America has offered to help in this area. Third, it may help to have companies like Chevron involved that are bound by the US Foreign Corrupt Practices Act. This is a case in which foreign direct investment may help to open up the sector and introduce some good practices. Finally, the government should keep the Cambodian people informed and allow the public to express its concerns--whether through democratic participation or peaceful assembly.

Managing Expectations in Cambodia

Some people are playing down the potential oil and gas boom in Cambodia. The original hope of a possible $2 billion a year in additional revenue has been reduced to an initial $150 million and a possible $1 billion in several years. It is still significant for an $8 billion economy with a $1 billion annual government budget. Still, the government is trying to manage expectations.

As its violent history fades from memory, the government knows that its legitimacy will be increasingly tied to economic performance and better governance. So Cambodian leaders have an interest of not making a big deal about possible oil and gas windfalls. Some observers said that the bauxite deposits may be longer lasting as a source of growth. One Western diplomat speculated that hydroelectric may generate more revenues than oil and gas but the Mekong River area could be severely harmed from the dams.

Two types of risks emerge from the possible energy boom. The first type is the immediate effect from having a large amount of revenue injected into the economy. One effect could include the “Dutch Disease.” Although the Cambodian economy is largely dollarized, thus giving it a chance of avoiding the exchange rate effects of Dutch Disease, other problems could appear such as resources being diverted away from tradable to nontradable goods. The other related effect is the strong possibility that revenues will simply disappear into the pockets of corrupt leaders or “silly” projects, leaving the country with nothing.

The other type of risk includes the possible societal responses to poorly managed revenues. Several people I interviewed agreed that possible responses from most likely to least would be: Social unrest from failed expectations and poor management; political change or instability coming from the emergence of rival factions; and a military coup from a frustrated army.

Cambodia's Future: Norway or Nigeria?

I am in Cambodia this week researching the expected offshore oil and gas boom. The big question is: Will one of Asia’s poorest and most corrupt countries use its newfound wealth to invest in infrastructure and education or will it simply shore up its corrupt practices? Will Cambodia become a Norway or a Nigeria?

Yesterday I met a foreign energy businessman with years of experience in Cambodia. His prognosis for Cambodia’s future was optimistic. He sees Cambodia as becoming a hub for a rapidly growing region, potentially taking advantage of its central location. In terms of governance, he has witnessed several years of improvement and sees things as only getting better.

China’s recent mining disaster is clearly on the minds of businesspeople here. Not only is China's mining sector the world's most dangerous, it is also extremely corrupt. The businessman said many people, including Cambodians, are reluctant to make deals with Chinese investors and partners. He listed several risks: opacity of contracts; hidden stipulations in contracts; lack of employment opportunities for local workers (Chinese use their own contractors); corrupt practices; and outdated equipment. Although Chinese technology will improve within a decade or so, he wasn’t so sure about the other practices.

Corruption is a rotten disease that many businesses are trying to fight. This businessman’s company is partnered with an American company, meaning it must follow the Foreign Corrupt Practices Act. He said it is a lot of work to comply with these rigorous standards, but he sees corrupt practices as antithetical to profitable business for several reasons: first, it is a waste of money that is thrown away without accountability; second, bribes seem to compound and send signals that a company is willing to play a dirty game; finally, good practices are central to ethical business and a calm soul. “I am able to sleep at night,” he said.

Due to his company’s large profile in Cambodia, an international NGO recently investigated how it was able to secure large contracts. After its investigation, the NGO concluded that his company was clean. He wasn’t worried. I only wished that clean companies like that were showcased for their exemplary behavior. If businesspeople knew they had a choice to act ethically, I bet cleaner practices would catch on.