Thais lodge complaint with China over dams 

SCMP-Friday, December 19, 2003
SIMON MONTLAKE in Bangkok

Environmentalists in Thailand have complained to China over plans to build up to 13 dams on the upper Salween river, the second-longest river in Southeast Asia.

A letter sent this week to the Chinese embassy in Bangkok calls for construction to be put on hold pending an assessment of the social and environmental impact on downstream communities.

"People [living there] should be provided with timely and complete information about the planned developments and be entitled to participate in the decision-making process," it said.

Over 80 groups signed the letter, including human-rights activists and representatives of ethnic minorities in Myanmar and Thailand living along the Salween.

The 2,400km-long river, called Nu Jiang in China, originates in Tibet and runs through Yunnan province and eastern Myanmar before emptying into the Andaman Sea.

Unlike the larger Mekong river, which China has already tapped for hydropower dams, the Salween has never been dammed.

Campaigners say construction on the first dam at Liuku in Yunnan province is due to begin this month.

They argue that China's dams will upset the river's flow in Myanmar, harming vulnerable fishing and farming communities in the conflict-ridden Shan state.

"We are worried about the future of the Salween because of our bad experience with the Mekong river," said Chainarong Srettachau, director of the Southeast Asian Rivers Network, a lobby group in Chiang Mai that sent the letter.

Fishing yields have dropped dramatically along the Mekong in Thailand since China began diverting water for hydropower dams, he said.

Environmental groups say fluctuations in the Mekong's flow have affected downstream breeding of rare fish species including giant catfish and freshwater dolphins that live in Laos and Cambodia.


Indonesian parties woo ex-military officials 

SCMP - Saturday, December 13, 2003
MARIANNE KEARNEY in Jakarta

Indonesian political parties, which once swore to wrest power from the military, have begun furiously courting retired military officers to run in April's parliamentary elections.

At least 32 retired officers have been selected by political parties as candidates. Party members say many more former military men have been asked to run in regional parliaments.

Analysts see the trend as a sign that the same political parties that once said they would send the military back to the barracks still believe they need military backing to succeed.

"The civilian politicians engage them because they're afraid of the military's power. The military is always threatening that there will be chaos if they are not involved in politics," said Smita Notosusanto, director of the Centre of Electoral Reform.

Military commanders' recent warnings that there will be political violence during the elections were little more than veiled threats, Ms Smita said.

The military was the most powerful political institution during former strongman Suharto's 32-year rule, but removing the military from politics was a major platform of the reformasi, or reform era, which caused Suharto's downfall in 1998.

Last year parliament voted to eliminate the 38 reserved seats the military and police faction hold in the 700-seat upper house at the next election.

Politicians from Suharto's former party Golkar defend its decision to enlist retired military officers as candidates, arguing political parties need strong connections with the military in order to guarantee the country's security.

Even Muslim parties, which were never close to the military, such as Vice-President Hamzah Haz's PPP party, have enlisted as many as 19 retired military officers.

The military denies it is trying to control Indonesia's politics or that this reflects a weakness in civilian institutions.


Pentagon probe finds overcharging, other problems with Cheney's former company 

SCMP-Friday, December 12, 2003
ASSOCIATED PRESS in Washington

Pentagon auditors found that Vice-President Dick Cheney's former company may have overcharged the Army by as much as US$61 million (HK$473 million) for petrol in Iraq, senior defence officials said.

Halliburton apparently didn't profit from the possible overcharges, the officials said overnight (HK time), speaking on condition of anonymity. The problem, the officials said, was that Halliburton may have paid a subcontractor too much for the petrol in the first place.

The Pentagon officials said the Halliburton subsidiary involved in Iraq reconstruction work, Kellogg, Brown & Root, also submitted a proposal for cafeteria services that was US$67 million too high. The officials said the Pentagon rejected that proposal.

The defence officials said they had no reason to believe the problems were anything other than "stupid mistakes" by Halliburton.

In an e-mail statement, Halliburton spokeswoman Wendy Hall denied the company had overcharged. She said Halliburton was responding to questions from Pentagon auditors and was "confident our responses will satisfy" them.

News of the problems came as President George W. Bush worked to justify his decision to limit Iraq reconstruction contracts to companies from the United States or countries that supported the war. The move angered governments whose firms were cut out of the bidding process, including France, Germany, Russia and Canada.

Many prominent Democrats also have criticised the Halliburton contracts specifically, suggesting they were a political payoff for a company with strong ties to the Republicans and whose executives gave generously to the Bush campaign.

Mr Cheney and Pentagon officials deny any political motive for awarding the no-bid contracts to KBR, which has a long-standing relationship with the military as a major Pentagon contractor.

Routine audits by the Defence Contract Audit Agency uncovered the problems.

Pentagon officials said they were concerned about the problems with KBR's contracts, which were awarded without competitive bidding for up to US$15.6 billion for rebuilding Iraq's oil infrastructure and assisting US troops there. About US$5 billion has been spent or obligated to spend on those contracts so far.

"Contractor improprieties and/or contract mischarging on department contracts will neither be condoned nor allowed to continue," Dov Zakheim, the Pentagon's budget chief, said Thursday.

The defence officials, who are involved in the audit of the contracts, said the Pentagon was negotiating with KBR over how to resolve the fuel-pricing issue. They declined to name the subcontractor that provided the fuel, saying that company may not have been notified of the inquiry's findings.

The possible overcharging involved 56.6 million gallons of petrol KBR supplied in Iraq from the end of the war until September 30, the Pentagon officials said. The officials said the KBR was charging $2.27 a gallon for gasoline while another contract was for $1.18.