Myanmar and UN Agencies are jointly implementing programs and projects under the respective cooperation programs
We cannot accept those who use UN to do activities that will infringe our sovereignty and harmful to our union solidarity

Nay Pyi Taw, 17 Dec – The following is the clarification made by Minister for National Planning and Economic Development U Soe Tha at the press comference held today.

The main topic I would like to highlight in this Press Conference is Myanmar's Economic Development. The topics include Myanmar's progress status of the Millennium Development Goals and cooperation between Myanmar and the UN Organizations and International Non- governmental Organi-zations ( INGOs ).

Today's press conference will be in 2 parts. Ministry of Natioanl Planning and Economic Development will take the first part and Ministry of Labour, the second part.

Firstly, I would like to brief you Myanmar's Economic Deve-lopment. We have distributed the paper on Myanmar's Economic Development and based on that, I will explain with power point.

It is well known that the growth or decline of an economy is presented in terms of GDP. We will do so in today's presentations.

An internatioanl accepted practice, and economy could be separated into three main categories, namely agriculture, industry and services. These three main categories can be subdivided into a number of economic sectors to cover the whole economy.

In our case, there are 14 sectors namely Agriculture, Livestock and Fishery, Forestry, Energy, Mining, Industry, Electric Power, Construction, Transport, Communi-cation, Financial, Social and Management, Rental and other Services and Trade.

Our presentation is basically how much we have achieved in our national development plan in various sectors and our current socio-economic situation in our national development endeavours.

Myanmar's Economic Development

After regaining independence in 1948, the history of economy may be divided into three periods. The first period from 1948 to 1962 was the period of market economy.

The second period from 1962 to 1988 was the period of centrally planned economy based on socialist economic system. The third period from 1988 to present is market oriented economy.

Economic Situation during the period 1985/86 to 1988/89

During the period 86/87 to 88/89 Gross Domestic Product ( GDP) declined by 15.8 per cent. The deterioration of the economy affected the political stability which led to the change of grovernment.

The economic system was also changed from socialist economic system to a market-oriented one in late 1988.

Economic Situation during the period 1989/90 (Stabilization Programmes periods)

The government has placed emphasis on stabilization and consolidation of the country and consequently, during the three year period from 89/90 to 91/92, stabilization pro-grammes were formulated to revitalize the economy.

The economy began to restore, registering a growth rate of 5.9 per cent or an increase of 1.1 times during the three year period.

Economic Situation during the Short Term Four-Year Plan (1992/93 to 1995/96)

As the stability has been restored, short-term plans had been formulated since 92/93 with a view to accelerating the economic development. Short Term Four-Year Plan spanning 92/93 to 95/96 was formulated with target average annual growth rate of 5.1 per cent.

The economy achieved with an average annual growth rate of 7.5 per cent.

The economy ex-panded 1.3 times and per capita income rose from K 4,496 to K 13,515.

The Short Term Four-Year Plan was successfully implement-ed, creating a favourable economic foundation for further development.

Economic Situation during the Second Short Term Five-Year Plan (1996/97 to 2000/2001)

With an aim towards a stable and sustainable growth by consolidating the favourable economic foundation achieved, the Second Short Term Five- Year Plan ( 96/97 to 2000/2001) was formulated with target an average annual growth rate of 6 per cent.

The Five-Year Plan was successfully implemented, achieveing average annual growth rate of 8.5 per cent, an increase of 1.5 times while that of per capita income increased to K 50,927 in 2000/2001 from K 13,515 in 95/96.

Agriculture sector realized average annual growth rate of 7.3 per cent, Industry sector 11.4 per cent and Services sector 8.5 per cent.

Economic Situation during the Third Short-Term Five-Year Plan (2001/2002 to 2005/2006)

After completion of the Second Plan, the Third Short Term Plan was fromulated.

GDP for this Five- Year Plan ( 2001/02-2005/06) was targeted with an average annual growth rate of 11.3 per cent. The performance achieved during the plan period was 12.8 per cent, an increase of 1.83 times. Per capita income was K 50,927 in the base year and K 221,217 in the final year 2005/06.

Average annual growth rates in agriculture sector increased 9.8 per cent, industry sector 23.5 per cent and services sector 13.9 per cent.

Agriculture Sector

Agriculture sector, the mainstay of Myanmar's economy, contributes 40.2 per cent in the national economy.

For the development of agriculture sector, emphasis had been placed on ensuring self-sufficiency and surplus for export.

With an aim to expand cultivable land , private entrepreneurs and companies are allowed to reclaim vacant and fallow land, virgin land and wet land.

The net area sown increased to 29.3 million acres in 2005/2006 from 19.9 million acres in 88.89 showing an increase by 1.5 times. Mixed and multiple cropping area increased to 16.8 million acres in 2006/2006 from 3.9 million acres in 88/89 by 4.3 times, Thus total sown area increased to 46.1 million acres from 23.8 million acres by 1.9 times resulting in increased cropping intensity to 157.3 per cent from 119.6 per cent.

Out of the total cultivable land of 43 million acres, the net area sown was 26.9 million acres or 62.6 percent .

It is only 16.1 per cent of total land area. Thus there is a vast potential for further development of agriculture sector.

Irrigated area increased to 5.52 million acres from 2.52 million acres in 88/89 of an increase by 2.2 times.

Crop Production

As the sown acreage increase during the period, production of principal crops also increased. Production of paddy increased by 2.1 times, beans and pluses 11 times, edible oil crops 3.3 times, cotton 3.9 times, sugarcane 3.3 times and kitchen crops 4.7 times.

As concerted efforts are being made for the development of the agriculture sector with added momentum, agriculture sector increased by average annual growth rates of 7.3%, 6.3% and 8.5% during the first, second and third short-term plans respectively.

Livestock and Fishery Sector

The average annual growth rates of livestock and fishery sector were 4.6%, 12.7% and 17.2% respectively in the first, second and third short term plans.

Production of meet, high and prown also increased to 4.9 and 3.8 times respectively.

Forestry Sector

About 52 per cent of Myanmar's land acrea is covered with forests. Reserved forests area increased from 14.9 per cent in 88-89 to 23.2 per cent in 2005/06 or 1.6 times.

Number of acres and trees planted increased by 2.7 times in both cases.

The average annual growth rates of forestry sector were (5.4%), 3.2% and 3.6% respectively in first, second and third Plans. It can be noticed that as environment needs of be preserved and maintained, we have kept the average growth rate relatively low, around 3% in all three short-term plans.

Energy Sector

Concerted efforts are being made to produce more crude oil and natural gas to meet the domestic requirement and to export. Currently 13 international oil companies are operating 33 projects in on-shore and off-shore areas. The production of natural gas has increased significantly to 402,898 million cubic feet in 2005/06 from 39,085 million cubic feet in 88/89 or 10.3 times.

The average annual growth rates of Energy sector were (-) 0.4%, 27.27% and 13.9% in the First, Second and Third Short-Term Plans respectively.
Mining Sector

Mining sector contributes 0.4% in our economy. We are producing Refined copper and Pig iron more than 5 times than before and we have achieved 21.2%, 20.9% and 15.1% averge annual growth rates in the First, Second and Third short-term plans.

In selected production of mining sector such as Gold and Pig iron increased by 23.1%, 5.1% respectively. The production of Refined copper in 88/89 was almost negligible, but it reached nearly 30,000 tons in 2005/06.

Processing and Manufacturing Sector

The share of processing and manufacturing sector constitutes 15.4 per cent of the total GDP.

In order to promote the development of industries, industrial zones have been established across the country since 95/96 and as of 2005/06 (End of March), altogether 18 industrial zones have been established in 9 states and divisions operating with a total numbers of 9,849 factories and mills.

The total number of factories increased to 81,176 in September 2006 from 28,847 in 1988, showing an increase of 51,747 during 18 years.

The registered average annual growth rates of 9.1%, 10.4% and 23.8% in the three plans reveal the accelerated development being taken place in this sector.

Electric Power Sector

Endeavours have been made to increase power supply.

The installed capacity was 685 megawatts in 1988 while the installed capacity at end March 2006 is 1,701 megawatts, an increase by 2.5 times. Power consumption increased by 3.7 times. The average annual growth rates achieved in the three plans were 16.2%, 10.6% and 10.6% respectively.

Infrastructure Development during the period 1988 to 2006 (end of September)

As infrastructure is not only crucial for economic development but also important for establishing friendship and solidarity among our nationalities, necessary infrastructure development works are being undertaken to promote development in every region of the State. Hence, the government has accorded high priority to infrastructure development projects such as irrigation network, roads, bridges, railway lines, port facilities, air ports, power and communication facilities.

Dams and Reservoirs

As regards irrigation networks, total number of dams and reservoirs stand at 644 as of September 2006, showing an increase of 189 dams and reservoirs from 475 numbers in 1988.

Electric Power

From 1988 to 2006 altogether 27 hydroelectric plants have been constructed and another 16 major hydroelectric plants are under construction. The already-built hydroelectric plants are being installed with the capacity of 746 megawatts and after the completion of 16 carry on projects inclusive of Shwekyin, Khapaung, Phyuchang, Kun, Yeywa and Yenwe, 10,413 megawatts will be installed. At the same time 10 gas power plants were installed with the capacity of 561 megawatts.

During the period, the installed capacity increased to 1,701 megawatts as at end September 2006 from 685 megawatts in 1988, showing 2.5 times. Power generation increased to 6,015 million kilowatt hours in 2005/06 (end of March) from 2,226 or 2.7 times of 1988 level.

Power transmission and distribution lines extended to 20,662 miles as at end September 2006 from 10,733 miles in 1988 showing an increase of 9,929 miles or 1.9 times.

The total number of electrified towns and village increased to 473 towns and 1,267 villages as at end September 2006 from 286 towns and 741 villages in 1988 showing an increase of 187 towns and 526 villages during that period.

Roads and Bridges

There were 745 bridges of over 180 feet in 1988. 404 bridges were increased becoming a total of 1149 bridges by the end of September 2006.

Union highways and main roads were extended to 58,170 miles from 20,548 miles in 1988, an expansion of 37,622 miles during that period. In 2006 total rail tracks have been stretched to 4,034 miles from 2,794 in 1988, expansion of 1,240 miles an increase of 1,4 times.

Transportation

The total number of airports increased to 73 in 2006 from 66 in 1988 showing an increase of 7 airports. Moreover, renovation and upgrading of 13 airports and expansion of airstrips are being carried out. Construction of international jetties and container terminals were also carried out to promote services. The number of jetties increased to 32 in 2006 from 15 in 1988 an increase of 17 jetties. We have now 5 new container terminds.

As regards communication sectors, micro wave stations increased to 230 in 2006 from 71 in 1988 by 3.2 times an increase of 159 new stations.

Cellular, CDMA, GSM telephone system as well as Internet services are introduced and being expanded. The number of telephone exchange increased to 866 in 2006 from 245 in 1988 increasing 621 exchanges.

External Trade

During the First Four-Year Plan period, exports increased at an average annual growth rate of 17.7 per cent and imports by 21.1 per cent. In the Second Five-Year Plan Period, exports increased at an average annual growth rate of 17 per cent while that of imports by 4.8 per cent.

In the Second five years plan it may be noticed that yearly export growth is over 20% with the exception in 2003/04 showing negative growth. This was due to the prohibition made to some Western Banks from providing financial services to Myanmar using US currency in business transations.

Otherwise the export growth would be over 20% .There was reduction in import. However, import began to rise in 2005/06. It can be observed that in all 4 years of first plan period and in all five years of second plan, balance of trade was negative, which is unhealthy for the economy.

It may be aware that, balance of trade was surplus for the four consecutive years beginning from 2002-2003.

Myanmar foreign trade is mainly with the Asian countries, sharing 90 %, followed by European countries, 4.8 % and American countries, 1.5 %. ASEAN shares 51.3 %.

It can be seen that as of September 2006, total export increased by 28.2 % and total import by 31.9% over the same period of last year. Total trade volume also increased by 29.49%.

Inflation

The rates of inflation at the beginning and end of the four year plan were 25.18 per cent and 21.13 per cent.

Inflation decreased from double digit level in 1999-2000 to single digit level in 2001. Inflation rate started to rise again and efforts have been made to bring down the level back to single digit. It stood at 3.76 percent in March 2005, but it rose again and was 16.4 percent in September 2006.

Investment

From 1988-89 to 2006 (end September), permitted amount of foreign investment totaled US$ 13.849 billion. The inflow of foreign investment started to contract since 1997-98, mainly due to the indirect impact of monetary crisis in Asian countries and sanction imposed by some western countries. However, foreign investment increased again in 2005-2006.

The permitted amount of investment is US$ 158 million and US$ 6.06 billion in 2004-2005 and 2005-2006 respectively.

Asian countries are the largest investors with share of 79.5 %, followed by European countries with 17.3 % and American countries with 3.2%. Out of Asian countries, the share of ASEAN is 71.2%.

Fourth short-term five-year plan (2006/07 to 2010/11)

The fourth short-term five-year plan was formulated aiming to maintain the stable and sustained high economic growth rate, to continue the achievement of good foundation in economic and financial condition of the nation, to strive for balanced regional development and to have progressive human resources development.

National plan target

The fourth short-term five-year plan is aimed to achieve an average annual growth rate of 12 per cent or to increase the economy by 1.77 times.

2006-2007 annual plan and performance

(up to September 2006)

GDP growth rate for 2006-07, the first year of the fourth short-term five-year plan, is targeted at 12 percent.

The growth rate achieved in the first quarter (Q1, April to June) of 2006-07 annual plan was 14.4%. Agriculture Sector increased by 12.3%, Industry Sector by 17.5% and Services by 14.2%.

The second quarter (Q2, July to September) realized the growth rate of 12.8%. Agriculture Sector increased by 11.9%, Industry Sector 16.9% and Services by 11.9%.

The performance for the first half of the year registered at a growth rate of 13.4%, comprising 12% growth in Agriculture, 17.2% in Industry and 12.9% in Service Sector.

Conclusion: Economic Development

Excellencies,

Ladies and gentlemen,

To summarize my presentation-

We have implemented three economic plans. The first short-term five-year plan achieved an average annual growth rate of 7.5%, the second short-term five-year plan achieved 8.5% and the third five-year plan achieved an average annual growth rate of 12.8%. The economy expanded 1.34, 1.5 and 1.83 times respectively. It can be judged from these figures that our economy has grown gradually — the growth of the second plan is better than the first plan and the third plan is far better than the second.

When we look at per capita GDP, it was 4,496 kyats in 1991,92 before we started the first short-term plan. Upon completion of the plan, it increased to 13,415 kyats and after the second and the third short-term plans, it increased to 50,927 kyats and 221,217 kyats respectively.

The agriculture sector achieved an average annual growth rate of 6.4%, 7.3% and 9.3% during the first, second and third short-term plans respectively.

The industry sector realized an average annual growth rate of 11.6% during the first short-term plan, 11.4% during the second short-term plan and increased sharply to 23.5% during the third short-term plan.

The services sector realized an average annual growth rate of 7.3% during the first short-term plan and grew to 8.5% and 13.9% respectively during the second and third short-term plans.

Thus, it is worth noting that Myanmar's economy is developing with accelerated growth in all 3 main sectors.

If we look at crop production, total sown acreage increased twice and irrigated area increased 2.2 times. The production of principal crops also increased. The increment of paddy production is 2.1 times; beans and pulses, 11 times; cotton, 3.9 times; sugar cane, 3.3 times, oil crops, 3.3 times; and culinary crops, 4.7 times. The production of meat increased 4.9 times and fish and prawn increased 3.8 times.

Let me recap the infrastructure sector. The length of roads increased 3 times; the number of factories increased 2.8 times; the number of bridges over 180 feet increased 1.5 times; electric power generation increased 2.7 times and length of power transmission and distribution lines increased 1.9 times. The number in microwave stations also increased 3.2 times.

These growths are due to the concerted efforts of the people, government, and the Tatmadaw. It is because of the ce-ta-na of the State, good and right objectives and the combined and concerted efforts of the general public, we have obtained peace and stability in the whole country and equitable and balanced development among states and divisions including the border areas.

The government has placed emphasis on agriculture sector as the base and all round development of other sectors as well. On the other hand, the development of the industry sector is being encouraged with the view to become a modernized and wealthy country. Along with the development of industry sector, extensive expansion of electric power and exploration of oil and gas are also being undertaken.

When we look at external trade position, there was deficit for 22 consecutive years starting from 1977-78. But we have improved that situation and now we have surplus in external trade since 2002-2003.

We will try more to have better results. Current account balance was also negative for more than 2 decades. Necessary measures have been undertaken thereby we have achieved surplus in current account since 2002-2003.

The improve-ment in balance of trade and current account is one of the important factors to bring about sound economy.

Regarding inflation, the inflation rate was around 25% during the first and second short-term plans but we try our best for the decline of the inflation rate. During the middle of the third short-term plan, it declined to the level below 5%, but is has started to rise again. We are making all round efforts to reduce the rate.

Out of the 3 major economic indicators to asses the situation of the economy, for the first indicator - DP - We have sustained high growth rate. For the second indicator - Current Account Balance - we have sustained improvement. Only the last one - inflation - which has risen, we will try to make it decline.

What I have briefed you here, is based on true facts and official figures of our country. There is a saying - Seeing is believing! After seeing the figures and the reality of physical development, one can make the rational judgment. Those who do not have any prejudice can make the right assessment.

There is sanction from one western country and yet, we have gained remarkable achievement in our endeavours for the socio-economic development of the country. Our achievement is mainly because of the unity and the relentless combined effort of the people, the government and the Tatmadaw. We can achieve more if there is no sanction. But if we look from the other side, we can say that, the sanction unintentionally makes us work harder, rely more on our own and thereby heighten our ability.

The people, the government and the Tatmadaw will unitedly continue our endeavours for the further development of the socio-economic conditions of the people and the country.

Implementation of MDGs and Cooperation with UN Agencies and INGOs

Excellencies, Dis-tinguished Guests and Journalists, Ladies and Gentlemen

I would like to brief the efforts we have made in trying to achieve the United Nations Millennium Development Goals (MDGs).

Here, I would like to give a brief explanation on how MDGs have been developed. The UN Millennium Summit held in September 2000 in New York declared the UN Millennium Declaration which aimed to solve the challenges on poverty, education, health gender discrimination and environmental protection. This declaration with aims to be achieved by 2015 has been adopted by 189 member countries. These aims are now now as Millennium Development Goals- MDGs in short.

MDGs consisted of 8 goals, 18 targets and 48 indicators. The first seven goals are to alleviate poverty multi-sector approach, and the last goal is to develop a global partnership in order to achieve the first seven goals.

Countries have to compile figures and data which show whether targets have been achieved or not and their progress on MDGs. Then they have to sumbit these data to the UN and international organizations. Some indicators can only be obtained by conducting surveys. The UN issues annual reports on country or region. The UN agencies, international organizations including World Bank and developed countries provide assistance in collecting data and information related to MDGs.

In order to achieve the MDGs by 2015, developing countries have to be constantly aware of inputs required for development of indicators for MDGs, and integrade these in the context of their national plans.

By looking at MDGs annual reports issued by the UN, developed countries, UN and international organi-zations can realize the situations in developing countries and they provide financial and technical assistance to help developing nations achieve their MDGs.

As for Myanmar, the international organi-zations such as World Bank, IMF, ADB had suspended assistance since 1988 and ODA is almost none. Never-theless, Myanmar has been endeavouring to to achieve the MDGs through our national plan frame using her own resources, and the MDG indicators have been looking good.

In implementing development program by preparing Poverty Reduction Strategy Paper (PRSP) to alleviate poverty-which is the fundamental goal of the MDGs, World Bank, IMF and international organizations provide financial and technical assistance to low income countries but not Myanmar. However, in 2004/2005, a survey has been conducted in more than 100 townships within 14 states and divisions under “Integraded Household Living Conditions Assessment Project” in cooperation with UNDP. Altogether 16 MDG related indicators were included in the survey.

Myanmar has conpiled facts and figures related to MDG indicators, and has issued MDG reports for 2005 and 2006. Most of the performances in the reports have been achieved through our own programs using our own resources. Myanmar Millennium Development Goals Report for 2006 is displayed here today.

I would like to continue with Myanmar's situation and figures related to MDGs.

Goal No 1 is to eradicate poverty and hunger and to lower the ratio of people who suffer from poverty and hunger by half between 1990 and 2015. There is no severe hunger problem in Myanmar. Rice, which is the staple food for Myanmar people, has presently been produced two times more than before. Population in the 1980s was about 40 million and is now 55 million.

Compared to the population growth, production of rice is more than sufficient. Production of meat has increased by five times, fish and prawn by 4 times and culinary crops by 4.7 times. Hence, there is no food insecurity problem.

In measuring the target to lower the ratio of people who suffer from poverty and hunger by half, nourishment is the indicator. The percentage of underweight children under five years has been declined.

Nutrition promotion and intervention programs and programs for micro nutrient deficiencies are also being undertaken. That's why I would say there is no difficulty for Goal 1, Target 4 in Myanmar.

Goal No 2 is to achieve universal primary education, and Myanmar has a remarkable achievement in intake and post primary enrollment ratio in primary education. At the last press conference on 29th November, the minister for Education had already explained detailed information regarding MDG's education targets so I would not discuss these in detail.

Regarding Goal No 3 which is to promote gender equality and empower women, there is no gender discrimination in Myanmar. The ratio of girls is higher than boys in basic education as well as universities.

The indicator for Goal No 4, which is to reduce child mortality, has been in a good trend.

As regards to Goal No 5, which is to improve maternal health, the trend for mortality rate for child bearing mothers has not declined significantly, and it is still necessary to focus on maternal health care in order to achieve Goal No 5.

Goal No 6 is to combat HIV/AIDS, malaria and other diseases. This has been carried out under the National Health Program in collaboration with UN agencies and 3D Fund Program. Generally, prevalence of HIV/AIDS has been decling. Likewise, the indicator for morbidity and mortality of malaria has also become better. The programme to combat tuberculosis is also a success.

Goal Nos 4, 5 and 6 are mainly related to the health sector. Since the minister for health has explained how the Ministry of Health has been endeavouring to achieve MDGs within national programmes at the press conference held on 29 November, I would not explain these in detail.

Goal No 7 is to ensure environmental sustainability and a special emphasis has been placed on environmental sustainability in Myanmar. Greening of Nine Districts Project in central Myanmar has been commenced since 1995, and has now expanded to 13 districts. Projects have been planned to make the greening of Central Yoma. A project to make Yangon and its surroundings within 30 miles green is under implementation.

In carrying out various projects, preventive measures have been taken for pollution of air, water and land degradation.

I also wish to note that in the current five-year plan, an objective regarding environmental protection such as reforestation and greening have been included.

Goal No 8 is to develop a global partnership for development, but assistance and aids from West Bloc, World Bank, IMF, and ADB have been suspended due to political reasons. Even the development programmes for Myanmar by UNDP are not the same level as the ones for other developing countries. The programmes for Myanmar are limited.

With an aim to exceed the MDG targets, the objective “to exceed the targets of MDGs in implementing the national plans” has been included in our Fourth Short-term Five Year Plan (2006-2007 to 2010-2011).

In implementing the MDGs, some indicators are still lacking, but we are trying to achieve the targets within our projects and programmes. These will be carried out on our own, and we are also prepared to work with other organizations that are willing to collaborate with us.

The third and final part is the cooperation with UN agencies, Inter-Governmental Organizations (INGOs), Non-governmental Organizations (NGOs) and International Organizations.

As of October 2006, there are 14 UN agencies implementing 55 socio-economic development projects, 44 INGOs implementing 56 projects, 9 International Organizations implementing 15 projects and 2 NGOs implementing 2 projects in Myanmar. Altogether there are 128 projects under the cooperation program.

I would now like to briefly explain the implementation of these projects.

With the aim to facilitate systematic cooperation with these Organizations, Ministry of National Planning and Economic Development issued the guidelines last February 2006. The reason behind this is that, during December last year, a representative of one UN Agency paid a courtesy call on a minister before his departure upon completion of his assignment in Myanmar. He talked about INGOs working in the border area of Myanmar without any collaboration among them. The consequence is that there is not much effective impact on the local people there. He firmly suggested the government to take the guiding role in coordnating with these organizations.

The higher authorities have also the same view and directed the Ministry of National Planning and Economic Development as initial coordinator for relations with the UN Agencies, International Organizations, INGOs and NGOs and the respective Ministries to take the implementation part.

After that, activities of these organizations who are working in cooperation with Myanmar agencies have been reviewed.

It was found out that systematic coordination from Myanmar side is necessary so as to have more effective results from the activities being carried out by these organizations which are somehow supporting Myanmar's socio-econimic development.

Thus, guidelines have been issued in order to implement projects more systematically and more effectively for the benefit of the people and the country under cooperation peograms.

The guidelines cover the whole process for cooperation program - from the initial stage of project proposal to the stage of implementation. Our main objective of preparing the guidelines is not to deter or not to slow down the project activities of these organizations. We are doing what we ought to do after we have realized the weakness as pointed out by that Representative.

UN Agencies and UN Specialized Agencies have privileges and immunities under the 1946 Convention on the Privileges and Immunities of the United Nations and the 1947 United Nations Convention on the Privileges and immunities of the Specialized Agencies. These Conventions and the Guidelines, the nature by itself, are completely different.

The next matter I wish to express here is the security measures at some project sites in Myanmar. There have been complaints from some UN agencies about limitations or restrictions for field visits to some project sites. Let alone the foreigners in our country, even we, ourselves, have to take security precautions for traveling since there still remain very few insurgents in some parts of the country. Therefore, security measures have to be arranged by the related agencies for domestic travels of the UN personnel. We have the responsibility to take care for them. We do not wish any unpleasant incident to happen to them even if they take their own risks to travel. The UN agencies have to inform us at least 2 weeks ahead. We can even make arrangement for group travel. We are facilitating in every way we can for the convenience of these people.

Most of the organizations made their trips according to their proposed itinerary. However, there are instances such as doing additional items outside the itinerary. Taking this opportunity, I would like to mention one example. It was in May 2004 when we have coordinated a trip with other related agencies for a senior official from one UN agency to northern Myanmar; he intentionally went and met with one organization that was not in the proposed itinerary.

One UN Organization based on guidelines for humanitarian needs, even asked for free movement to the project sites. We, on our side, have never stopped any UN official from his/her official visits to the project sites. We are cooperating with them for the successful implementation of the projects. Some western countries are accustomed to free novement, but in our country, we have the security reasons. Security reasons differ from one country to another. These people do not try to understand our situation; they thought we were hindering them from what they wanted to do. In fact, it is not.

The humanitarian assistance from the UN agencies does not just happen out of the blue. It has to be well planned and formulated before implementation. The same was official visits. They have to be also planned and everything has to be pre-arranged for smooth realization.

Timely arrangements are being done for official field visits of UN Agencies in Myanmar. During the period from January 2003 to October 2006, we have arranged more than 550 field visits for 7 UN Agencies as per their proposed itinerary. Also field visits of 28 INGOs have been arranged in coordination with the respective Ministries. Altogether we have arranged more than 500 trips during that period. The International Organizations in Myanmar made over 180 field visits.

Myanmar and UN Agencies are jointly implementing programs and projects under the respective cooperation programs. We warmly welcome those who come and work with us in accord with the UN Charter for the further development of social and economic conditions of Myanmar. I would like to stress that we can not accept those who use UN to do activities that will infringe our sovereignty and harmful to our union solidarity.

We are cooperating with all the UN Agencies, INGOs, NGOs and International Organizations in more than120 projects. We look forward to strengthening our cooperation with these organizations in utmost good faith.

With this, I would like to conclude this first part of the press conference.