Story:

RANGOON, ONCE A THRIVING CAPITAL OF FREE TRADE AND ENTERPRISE, FACES A SERIOUS ECONOMIC DECLINE WITH QUEUES AND GLOOM AS ITS MOST DISTINGUISHING FEATURES.

IN THE EIGHT YEARS SINCE GENERAL NE WIN, WITH POWERFUL MILITARY BACKING, OVERTHREW THE ASCETIC FORMER PREMIER U NU, OFFICIAL FIGURES PAINT A SORRY PICTURE OF DECLINING EXPORTS AND RISING GOVERNMENT EXPENDITURE. ONCE THE WORLD'S LARGEST EXPORTER OF RICE, WITH 1,800,000 TONS GOING TO WORLD MARKETS IN 1962. THIS YEAR (1969) IT IS EXPECTED TO AMOUNT TO 600,000 TONS. TOTAL EXPORTS FELL FROM A VALUE OF 1,263 MILLION KYATS (111 MILLION POUNDS STERLING) IN 1962 TO ABOUT HALF THAT IN 1966.

BUT A MORE VIVID PICTURE OF BURMA'S RUNDOWN CONDITION CAN BE SEEN IN THE STREETS OF RANGOON WHERE THOUSANDS OF WOULD-BE SHOPPERS LINE UP AT "PEOPLES STORES", RATION CARDS IN HAND, TO BUY RICE, BREAD, SOAP OR A BIT OF CLOTH. AND AS OFTEN AS NOT WHEN THE SHOPS DO OPEN THEIR SHELVES ARE NEARLY BARE.

BUSINESS IN THE PUBLIC SECTOR HAS COME ALMOST TO A STANDSTILL. THE GOVERNMENT HAS NATIONALISED ALMOST EVERYTHING AND BLOCKED ENTRY OF FOREIGN BUSINESS, HOPING TO MAKE BURMA SELF SUPPORTING.

A LARGE NUMBER OF COLONIAL ERA BUILDINGS WHICH ONCE HOUSED FLOURISHING DEPARTMENTAL STORES AND INDUSTRIES ARE SEALED AND NEGLECTED. OTHERS HAVE BEEN TAKEN OVER BY THE GOVERNMENT FOR SHOPS AND OFFICES.

RANGOON'S PUBLIC TRANSPORT IS CHAOTIC. EXCEPT FOR A FEW MILITARY VEHICLES AND CONSULAR OFFICIALS WHO DRIVE IN MODERN LIMOUSINES, OTHER VEHICLES ON THE ROADS ARE FALLING APART THROUGH SHORTAGES OF SPARE PARTS.

BURMESE OFFICIALS, MINDFUL OF A SECRET MILITARY INTELLIGENCE NETWORK, WILL NOT DISCUSS THE MERITS AND DEMERITS OF THE GOVERNMENT'S AUSTERITY PROGRAMME.

THIS PROGRAMME HAS ALSO AFFECTED THE NIGHTLIFE OF THE BURMESE. NO NIGHTCLUBS OR DANCE HALLS ARE ALLOWED TO OPERATE IN RANGOON AND ALL BARS, PLACED UNDER STATE CONTROL, CLOSE AT 8 P.M. FOODSTALLS LOcK UP AT 10 P.M.

THE ONLY POPULAR ENTERTAINMENT IN THE CAPITAL IS PROVIDED BY CINEMAS WHICH SHOW BURMESE, INDIAN AND WESTERN FILMS. THE FILMS ADHERE TO THE GOVERNMENT'S OWN MORAL CODE.

THE MOOD IN RANGOON IS ALL THE GLOOMIER BECAUSE MANY PEOPLE FELT RECENTLY THAT GENERAL NE WIN WAS ABOUT TO RELAX HIS IRON GRIP ON THE COUNTRY. IN 1968 HE SET UP AN ADVISORY BOARD COMPOSED OF 33 ELDER STATESMEN INCLUDING THE DEPOSED U NU.

IN AUGUST 1969 THE BOARD RECOMMENDED A RETURN TO DEMOCRACY AND AN ECONOMIC SYSTEM THAT ALLOWED PRIVATE BUSINESSES AND JOINT PRIVATE-PUBLIC VENTURES TO OPERATE ALONGSIDE STATE-RUN ENTERPRISES. BUT IN NOVEMBER 1969 GENERAL NE WIN REJECTED THE BOARD'S ADVICE SAYING HE WAS NOT INTERESTED IN ANY SYSTEM WHICH DOES NOT PUT THE PEOPLES' INTERESTS FIRST.

ALTHOUGH THE GENERAL SEEMS IN A STRONG POSITION, OBSERVERS IN RANGOON BELIEVE THE ULTIMATE SUCCESS OR FAILURE OF HIS REGIME WILL BE DECIDED ON THE ECONOMIC FRONT.