US embassy cable - 05RANGOON440

C O N F I D E N T I A L RANGOON 000440 
 
SIPDIS 
 
STATE FOR EAP/BCLTV; PACOM FOR FPA 
 
E.O. 12958: DECL: 04/11/2015 
TAGS: PGOV, PHUM, BM 
SUBJECT: BURMA "RECALLS" UNREGISTERED VEHICLES 
 
Classified By: COM Carmen Martinez for Reasons 1.4 (b,d) 
 
1. (U) Summary: On a recent visit to Karen State, Emboffs saw 
hundreds of impounded vehicles.  Many people lost the savings 
they invested in cars and their depression was palpable. 
They fear the loss will have a negative long-term economic 
and social impact on the region.  Yet, some unregistered 
vehicles continue to operate.  It is unclear what the GOB 
will do with its vast used car inventory.  End Summary. 
 
2. (C) P/E Section Chief and Poloff visited Karen State a few 
days after the March 31 deadline for people to surrender 
their unregistered vehicles to the GOB.  According to sources 
in Pa-an, most of these vehicles were stolen in Thailand and 
smuggled across the border into Burma with the complicity of 
the former Military Intelligence (MI).  The vehicles were 
"laundered" through the Mandalay Industrial Estate, which 
"manufactured" vehicles and then they were released back to 
the public through the Ministry of Light Industry.  The MI 
protected those who were involved in vehicle trafficking and 
people could obtain reasonably priced automobiles. 
 
3. (U) We observed acres and acres of vehicles parked at 
police stations and on government property.  A team appeared 
to be recording the vehicle serial numbers as we stopped to 
take photos.  Most of the vehicles were pickup trucks, but 
there was a smattering of vans, sedans, and light trucks. 
Some appeared to have been wrecked and were likely towed to 
the collection center.  (Note: All vehicles, even 
non-operating ones, had to be surrendered or the owners faced 
prison terms of seven years.  End Note.) 
 
4. (C) We spoke to politicians, pastors, Buddhist abbots, and 
local entrepreneurs who had all lost vehicles.  Some seemed 
resigned over their loss, while others were very unhappy with 
the government.  According to local sources, over 1,400 
vehicles were surrendered in Pa-an town.  One monastery lost 
four monastery-owned vehicles, plus another 42 vehicles that 
supported its community projects.  Another monastery lost 49 
cars, while an abbot who is closely aligned with the 
Democratic Karen Buddhist Army (DKBA) reportedly lost 109 
vehicles.  An entrepreneur told us that he lost four vehicles 
and his investment of over $6,000.  A pastor also had to 
surrender four vehicles. 
 
5. (U) Most people used their vehicles for engaging in 
business activity, so they feel that without their vehicles 
the local economy will slump.  The loss of vehicles may have 
a similar impact that banning poppy production had on poor 
farmers in areas of Shan State.  Others feel that community 
development activities will also suffer, particularly 
projects that helped bus children to school. 
 
6. (U) Although many people have had to surrender their 
vehicles, and the government denied a last minute appeal by 
churches and monasteries to be allowed to keep theirs, there 
are still many unregistered vehicles operating in Pa-an area. 
 We saw several sedans and busses operated by the DKBA plying 
the same roads that we traveled.  Therefore, it appears that 
the government has made concessions to some organizations. 
 
7. (U) Comment: It is unclear what the GOB will do with the 
thousands of used vehicles that have been confiscated around 
the country.  One source speculated that the GOB may 
distribute them among government agencies or officials, or 
perhaps dismantle them and sell the parts on the market.  If 
government officials keep them and drive them around, it will 
likely fuel further resentment against the government among 
the local populace.  End Comment. 
Martinez