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India frets over Yangon-Pyongyang deal
By Arun Bhattacharjee

NEW DELHI - Nothing scares India more than the prospect of another nuclear power on its border, especially when that country is run by the military. So Myanmar's evident success in wooing North Korea to help it build a nuclear reactor has ruffled more than a few feathers among bureaucrats in India's Foreign Office at a time when a new foreign minister is trying to shape a new foreign policy.

The bombshell that Myanmar has succeeded in wooing North Korea to supply it with nuclear-reactor technology came to the notice of Indian intelligence in mid-May but remained under a wraps as the country was involved in general elections.

According to sources within the country's intelligence community, Myanmar's effort to purchase a reactor was known to Russia, the United States and China, as over the past four years the military junta in Myanmar has approached India, Russia and China in its quest, but failed to gain its objective. India refused in 2000 on the grounds that Myanmar's energy needs were being served by its petroleum resources, besides India's concern that the US would not like India to supply a nuclear reactor to country that was under US sanctions.

Diplomatic sources reveal that the Russian refusal was more on economic grounds, as it felt that Myanmar was not in a position to pay in hard currency for the reactor. Myanmar initially wanted to pay 10 percent as an advance, but the Russians apparently wanted 25 percent, US$200 million up front and another $800 million later, part of which would meet the cost of its engineers and technocrats who would be working to set up the reactor. Myanmar's effort to purchase a reactor from China did not succeed either as China is under international scrutiny along with Pakistan for proliferation of fissile materials.

Now it has come to light that Myanmar is finally preparing to set up a nuclear reactor at Natmauk in the Myothit area in the central part of the country with help from North Korea. India is concerned because of the North Korea-Pakistan nexus regarding the nuclear-delivery-capable Ghouri missiles built with North Korean assistance, and doubly concerned to see another neighbor, Myanmar, becoming nuclear, as any material supplied by North Korea is unlikely to be under supervision of the United Nations watchdog, the International Atomic Energy Agency.

According to Indian sources, Myanmar paid $2 million up front for a survey by North Korean scientists and another $200 million partly in foreign currency and partly in the form of timber. It has been learned that North Korea has agreed to take payments in "affordable phases". The total value of the contract is as yet unclear but India believes the deal with North Korea would be far less costly than if Myanmar had gotten the technological assistance from another source.

A Western diplomat says the deal was not without the knowledge of US intelligence as all communications between Yangon and Pyongyang for the past six months have been monitored by the US, along with all Air Koryo flights between the two countries, as North Korea's extreme caution to operate Air Koryo flights from its military facilities instead of civilian airports attracted US attention.

Myanmar's first request to North Korea for nuclear-reactor technology was apparently made in November 2002, but a memorandum of understanding could not be signed then as Myanmar did not have enough funds. A survey by a team sent by Pyongyang then identified central Myanmar as the ideal location for the reactor. The final agreement, according to informed sources, was signed around January this year after Myanmar paid $2 million to North Korea in December for the preliminary survey and Pyongyang agreed to supply the reactor on a cash and barter basis.

India has always maintained a soft approach toward the sanctions against Myanmar, although it has made the necessary noise about the restoration of democracy in Myanmar. It has received three delegations from Myanmar for promotion of trade between the two countries, and India's Oil and Natural Gas Commission (Videsh) has received a concession for offshore oil exploration within Myanmar's economic zone, and is expecting more concessions.

One of the reasons for estrangement between India and Myanmar has been the latter's growing relationship with China after the India-China border war in 1962. Myanmar has also provided shelter to insurgents from India's northeastern region, including Manipur, Mizoram and Nagaland, has apparently been reluctant to intercept the alleged flow of arms from China to insurgents in India through its territory.

A Western diplomat explains that in spite of the knowledge that Myanmar has nuclear ambitions, the US is hamstrung as it is involved with North Korea on far larger issues. Western embassies in Yangon were aware of the presence of two representatives of North Korea's economic bureau negotiating with Myanmar leaders for a final agreement on the nuclear deal, but failed to elicit any proper explanation from the military authority beyond that the country "does not have any ambition to have nuclear weapons". Myanmar's senior leaders apparently clarified that they have always worked for the peaceful use of nuclear energy and for that they approached Russia in 2002 for a nuclear reactor for "medical use".

Brajesh Mishra, a former security adviser to Indian ex-prime minister Atal Bihari Vajpayee who dealt with China and Southeast Asia, explains that India's concern about the deal involves three possible threats. First, North Korea, while a party to the nuclear Non-Proliferation Treaty, could use Myanmar as a proxy for the development of nuclear weapons. Second, India does not want another nuclear nation along its eastern border while it already has one on the north and another on the west. Third, an impoverished Myanmar spending funds for nuclear development is likely to be an unstable country, which is not in India's interest.

Another concern, says P R Chari, former director of the Institute of Defense Studies and Analyses and a researcher in defense affairs, is the location of the proposed reactor, surrounded by territories controlled by insurgents in Myanmar such as Wa, Kachin and Karens, who might decided to procure fissile materials from the reactor.

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Jun 4, 2004




Policy and Pakistan: India lays it out (Jun 3, '04)

Salvaging the non-proliferation regime (May 19, '04)

China seeks to be nuke non-proliferator  (May 19, '04)

Myanmar aims for missiles and misses (May 13, '04)

Iran, North Korea and proliferation
(May 7, '04)

US intelligence faltering on N Korea nukes (May  5, '04)

 

     
         
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