DATE=5/21/98 TYPE=BACKGROUND REPORT NUMBER=5-40448 TITLE=CHINA-BURMA-INDIA INTELLIGENCE BYLINE=DOUGLAS BAKSHIAN DATELINE=NEW DELHI CONTENT= VOICED AT: INTRO: INDIAN DEFENSE ANALYSTS SAY CHINA IS DEVELOPING A PRESENCE ON ISLANDS OFF BURMA FOR ACCESS TO THE INDIAN OCEAN AND WHAT WILL BE A VITAL TRADE ROUTE IN THE 21ST CENTURY. NEW DELHI CORRESPONDENT DOUGLAS BAKSHIAN TALKS WITH INDIAN DEFENSE EXPERTS ABOUT THE MATTER. TEXT: EARLIER THIS MONTH, INDIAN DEFENSE MINISTER GEORGE FERNANDES SAID A MASSIVE ELECTRONIC SURVEILLANCE ESTABLISHMENT TO MONITOR INDIA HAS BEEN BUILT BY CHINA ON BURMA'S COCO ISLANDS. HE TOLD A PRIVATE INDIAN TELEVISION CHANNEL THERE ARE MOVES TO CONVERT THAT FACILITY INTO A MAJOR NAVAL BASE. IN RESPONSE TO THE DEFENSE MINISTER'S STATEMENTS, CHINA DENIED INVOLVEMENT IN OTHER COUNTRIES -- BUT IT DID NOT SPECIFICALLY NAME BURMA. DESPITE THE CHINESE DENIAL, A SENIOR INDIAN DEFENSE ANALYST SAYS THERE IS SUBSTANTIAL EVIDENCE OF CHINESE ACTIVITY IN THE COCO ISLANDS. THE DEPUTY DIRECTOR OF NEW DELHI'S INSTITUTE FOR DEFENSE STUDIES AND ANALYSIS, COMMODORE UDAY BHASKAR, SAYS CHINESE INVOLVEMENT HAS BEEN UNDERWAY FOR SOME TIME. // BHASKAR ACT // SPECIFIC TO THE COCOS ISLANDS THERE HAS BEEN A FAIR AMOUNT OF EVIDENCE BOTH HUMAN, SIGINT (ELECTRONIC) AND OTHERWISE WHICH SUGGESTED THAT THEY WERE SETTING UP CERTAIN MONITORING FACILITIES AS PART OF CHINA'S LARGER SIGINT INTELLIGENCE. SIGINT, AS YOU KNOW, IS SIGNAL INTELLIGENCE (ELECTRONIC). SO THAT IS WHERE IT IS AT THE MOMENT, WHICH IS THAT THERE HAS BEEN EVIDENCE, FAIRLY IRREFUTABLE EVIDENCE, BOTH OF CHINESE NAVAL AND MILITARY PRESENCE, PERSONNEL, AND A CERTAIN DEGREE OF INFRASTRUCTURE IN HYANGYI (PORT), AND IN THE COCOS ISLANDS, APART FROM THE OVERALL CHINESE PRESENCE IN MYANMAR. // END ACT // MEANWHILE, INDIA'S RESPECTED "PIONEER" NEWSPAPER RECENTLY RAN A DETAILED ARTICLE SAYING CHINESE NAVAL OFFICIALS ARE WORKING ON A NUMBER OF BURMESE NAVAL BASES. THE PAPER, QUOTING SENIOR INDIAN GOVERNMENT OFFICIALS, SAYS CHINESE VESSELS ARE ALSO VISITING CERTAIN ISLANDS CLOSE TO THE INDIAN COAST TO MONITOR COMMUNICATIONS. THERE ARE DIFFERING VIEWS OF THE ARTICLE. P-R CHARI OF NEW DELHI'S INSTITUTE OF PEACE AND CONFLICT STUDIES, SAYS THE "PIONEER" STORY IS POLITICALLY MOTIVATED AND LINKED WITH INDIA'S RECENT NUCLEAR TESTS. // CHARI ACT // THIS PIONEER REPORT, CAME OUT, AS I HEARD YOU, ON THE 10TH OF MAY, THE NUCLEAR EXPLOSIONS TOOK PLACE A DAY LATER, AND I WOULD LIKE TO SEE THESE REPORTS AS PART OF A CONCERTED EFFORT WHICH WAS BEING MADE BY THE GOVERNMENT OF INDIA TO PLAY UP THE CHINESE THREAT. // END ACT // INDIA HAS MENTIONED SECURITY CONCERNS OVER CHINA AS ONE OF THE REASONS CONTRIBUTING TO THE DECISION TO TEST NUCLEAR DEVICES. INDIAN GOVERNMENT OFFICIALS WOULD NOT CONFIRM OR DENY THE "PIONEER" STORY, BUT OTHER SOURCES LINKED TO THE INDIAN DEFENSE ESTABLISHMENT SAY THE ACCOUNT IS ACCURATE. MEANWHILE, CHINA IS PLAYING DOWN THE ARTICLE. A SPOKESMAN FOR THE CHINESE EMBASSY IN NEW DELHI SAYS THE STORY IS NOTHING BUT RUMORS. // SPOKESMAN ACT // ALL THE RUMORS CREATED BY THE INDIAN MEDIA SAYING CHINA HAS GOT TROOPS IN BURMA, THAT IS TOTAL RUMOR. // END ACT // PUTTING RECENT EVENTS ASIDE, BOTH MR. CHARI AND COMMODORE BHASKER SAY THE CHINESE, STARTING IN THE LATE 1980'S, DEVELOPED AN INTEREST IN THE WATERS OFF BURMA AS THEY EXPANDED THEIR GLOBAL INFLUENCE. COMMODORE BHASKAR, WHO IS AN INDIAN NAVAL OFFICER ON ASSIGNMENT TO THE DEFENSE INSTITUTE, SAYS THE CHINESE ACTIONS ARE NOT AIMED AT INDIA ALONE, BUT ARE PART OF A REGIONAL STRATEGY. HE SAYS CHINA WANTS ACCESS TO THE INDIAN OCEAN AND SURROUNDING WATERS BECAUSE THE REGION PROVIDES A KEY OIL SUPPLY ROUTE TO EAST ASIA -- AN AREA THAT IS BOOMING ECONOMICALLY AND WILL PLAY A KEY ROLE IN THE 21ST CENTURY. // BHASKAR ACT // CHINA HAS, WHAT TO MY MIND IS AN OVERALL STRATEGIC GAME PLAN, WHICH IS TO ENHANCE CHINESE PRESENCE, QUOTE UNQUOTE, IN AREAS THAT IT DEEMS TO BE OF STRATEGIC IMPORTANCE. AND TODAY IF YOU LOOK, CHINA LOOKING AT THE WORLD FROM BEIJING, THERE ARE TWO AREAS THAT ARE OF ENORMOUS STRATEGIC IMPORTANCE IN THE POST COLD-WAR SCENARIO. ONE IS THE PERSIAN GULF BECAUSE OF ITS ENERGY RESOURCES AND THE OTHER IS THE MALACCA STRAIGHTS (BY MALAYSIA) BECAUSE THEY PROVIDE THE MARITIME CONDUIT FOR ENERGY SUPPLIES TO COME OUT OF THE MIDDLE EAST AND TRAVEL THE STRAIGHTS OF MALACCA AND GET INTO EAST ASIA. // END ACT // COMMODORE BHASKAR SAYS WHATEVER THE REASONS FOR THE CHINESE PRESENCE IN THE AREA, THE DEVELOPMENT STILL HEIGHTENS INDIAN CONCERNS. WHILE INDIA AND CHINA HAVE BEEN ON PEACEFUL TERMS IN RECENT YEARS, THEY FOUGHT A BRIEF BORDER WAR IN 1962 IN WHICH INDIA WAS BADLY DEFEATED. ANALYSTS SAY THE CONFLICT REMAINS ETCHED IN THE INDIAN MEMORY AND FEARS OF CHINESE MILITARY MIGHT PERSIST. (SIGNED) NEB/DB/CB/RAE 21-May-98 8:38 AM EDT (1238 UTC) NNNN Source: Voice of America .