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     T R O U B L E D   C O M P A N Y   R E P O R T E R

                             A S I A   P A C I F I C

            Friday, February 4, 2000, Vol. 3, No. 25

                                    Headlines


* C H I N A  &  H O N G  K O N G *

BURLINGAME INT'L CO.: Reports creditor agreement to HKSE
DRAGON LAND: Still not refunded $1.26M to 18 house buyers


* I N D O N E S I A *

BANK BALI: IBRA requires open tender sale
BANK RAKYAT INDONESIA: Restructures Rp 3.56T of NPLs
PT BUNAS FINANCE INDONESIA: JSK updated on restructure

* J A P A N *

JAPAN TOBACCO: To cut work force, refocus on overseas unit
NIPPON CREDIT BANK: Two bidders drop out of race
NISSAN MOTOR CO.: To sell aerospace business, pay debts


* M A L A Y S I A *

LAND & GENERAL BHD: To reschedule two-thirds of its debt


* P H I L I P P I N E S *

BW RESOURCES CORP.: Scandal affects local stock trading
GLOBE TELECOM GMCR: NTC issues show-cause order against
PHILIPPINE AIRLINES: IAPA demands pilot reinstatement
PHILIPPINE AIR LINES: Wants tie up with two local carriers
PILIPINO TELEPHONE CORP.: NTC may impose penalties
UNIWIDE GROUP: Two foreign white knights to rescue  
WATERFRONT HOTELS: To pay MCIAA P7.2M within a year


* S I N G A P O R E *

CLOB INT'L: No end to dispute in sight
CLOB INT'L: KLSE-SGX disagreement intensifying


* T H A I L A N D *

BIJOUX HOLDINGS: Ordered to improve finances
CHAOPHYA MARBLE-GRANITE: Ordered to improve finances
FIVE STARS PROPERTY: Posts 9-month loss
ONE HOLDING: Ordered to improve finances
ORIENTAL LAPIDARY: Ordered to improve finances
SIAM NEC CO.: Reports its closure to SET
SIAM NEC: 480 laid off in NEC plant shutdown
SUN TECH GROUP: Reports debt rehab progress to SET
THAI FISHERIES: Ordered to improve finances
THAI MELON POLYESTER: Ordered to improve finances


==============================
C H I N A  &  H O N G  K O N G
==============================

BURLINGAME INT'L CO.: Reports creditor agreement to HKSE
--------------------------------------------------------
The Board of Burlingame International Company Limited
(Incorporated in Hong Kong with limited liability), through
Kan Che Kin, Billy Albert, Chairman, states that apart from
the signing of the Compromise Agreement with six out of
seven Hong Kong bank creditors, Burlingame International
Company Limited (the "Company") is not aware of any other
reasons for the increase in the shares price and trading
volume.

This statement is made at the request of The Stock Exchange
of Hong Kong Limited.

The Board notes the increase in the price and the increase
in the trading volume of the shares of the Company and wish
to state that apart from the signing on 1st February, 2000
of the Compromise Agreement, subject to the conditions
stated in the announcement dated 29th November, 1999, by
six out of seven Hong Kong bank creditors representing
approximately 90% of the total Hong Kong bank indebtedness
as at 29th November, 1999.

Apart from the restructuring proposal announced by the
Company on 29th November, 1999 of which the Compromise
Agreement forms part, we confirm that there are no
negotiations or agreements relating to intended
acquisitions or realisations which are discloseable under
paragraph 3 of the Listing Agreement, neither is the Board
aware of any matter discloseable under the general
obligation imposed by paragraph 2 of the Listing Agreement,
which is or may be of a price-sensitive nature.

Shareholders of the Company and potential investors are
reminded to exercise extreme caution in dealing in the
shares of the Company.  The Company has not received any
reports up to the time of this announcement from the
directors of the Company regarding today's purchase, sale
or redemption of shares of the Company.

Made by the order of the Board of the Company, the
directors of which individually and jointly accept
responsibility for the accuracy of this statement. (Stock
Exchange of Hong Kong  03-Feb-2000)

DRAGON LAND: Still not refunded $1.26M to 18 house buyers
---------------------------------------------------------
PEH Chin Hua's Dragon Land may have lost its court battle
in China to set aside an arbitration order that it refund
$1.26 million to 18 house buyers in Singapore but more than
a month later, it has yet to do so.

The refund amount comprises the purchase price of units in
Qingdao Orchid Garden and Bougainvillea Park as well as the
370,000 renminbi ($75,000) arbitration fees incurred by the
buyers.  Dragon Land's subsidiary, Third Dragon
Development, was ordered to make the refund by the
Arbitration Tribunals of China International Economic Trade
Arbitration Commission (Cietac) in May last year.

It appealed to the Beijing Second Intermediate People's
Court to set aside that order -- even though a clause in
its sales and purchase agreement states that disputes were
to be settled by Cietac and that its decision was final and
binding. In December, the court upheld Cietac's order.

Dragon Land chairman and chief executive officer Peh Chin
Hua told BT his company had started proceedings to appeal
to the High Court in China to overturn both Cietac's and
the lower court's decisions.  The company -- represented by
Drew & Napier in Singapore and King & Wood in China -- has
said it would comply with the rulings in the meantime.
However, it is requiring the affected buyers to meet
certain conditions before they get their money.

Among other things, the buyers have to:  Proceed at their
own cost and expense to effect the necessary transfer of
the ownership of their units with the relevant authorities
in China; and contact Dragon Land's representative in
Qingdao once the title certificates and title deeds were in
the developer's name.

Dragon Land, in turn, will make refunds only after a a
satisfactory inspection of the property and deduction of
the interest owed by buyers for late progress payments. The
interest rate it charged was some 80 per cent a year.

The buyers' spokesman, Fong Ching Loon, described the
conditions as unreasonable. "They are using these tactics
to purposely delay payments," he said in Mandarin.  On the
interest charges, he said: "They should be the ones paying
us interest. They misled us into paying the full amount for
the property (in 1996) saying that it was ready when it
wasn't."

Mr Peh, meanwhile, said his company was acting on its
lawyers' advice. "Those are not interest we are charging,
but forfeiture for violation of the payment schedules as
stated in the sales and purchase agreements."

He added that the 18 buyers had been earning rental income
from the apartments in the last two years. Mr Fong,
however, disputed that, saying the apartments were not
habitable.  The buyers -- among them retirees, teachers and
workers -- paid between $30,000 and $70,000 each for their
apartments. Now, they want their money back following a
dispute over the completion date and the state of the
properties at the time of delivery.

According to Mr Fong, an importer and exporter of pet fish,
the investors were asked to pay the last 10 per cent of the
purchase price and collect the keys to the apartments on
June 24, 1996.  He said when a buyer visited her apartment
on Oct 23, 1996, she found that there were no roads leading
to the apartments, just a muddy field. The lift in her
block was not installed yet. She climbed 10 storeys up to
her unit and discovered the door to her unit had not been
fixed. There were also cracks in the walls, and rain water
had seeped through.

Meanwhile in a separate announcement, Dragon Land said it
had paid $950,000 for a 28.4 per cent equity stake in
Technocracker Pte Ltd, a Singapore company that carries out
research and development on technology products. Dragon
Land said TPL had developed a pneumatic high precision
firecracker called the Technocracker. The Technocracker
utilises pneumatic technology, replacing the gunpowder used
in traditional firecrackers. (Singapore Business Times  03-
Feb-2000)


=================
I N D O N E S I A
=================

BANK BALI: IBRA requires open tender sale
-----------------------------------------
Bank Bali, which is one of the banks under control of the
Indonesian Bank Restructuring Agency (IBRA), could only be
sold through an open tender not earlier than April after
the completion of a rights issue, an IBRA official
said.

Gustiono Kustianto, head of the Investment Asset Management
of IBRA said IBRA is still auditing the bank to determine
the amount of funds needed for its recapitalization.  The
audit is expected to be completed by the end of this month,
to be followed with rights issue to raise fund to increase
its capital adequacy ratio (CAR) to at least 4% the minimum
level needed by a healthy bank.

The process of rights issue would take time until April,
Kustianto said.  That means Bank Bali could not contribute
to IBRA's mission to raise Rp17 trillion in fresh fund
through the sales of the assets under its control, he
said.  After the rights issue prospective investors would
need two months for due diligence, he added.

Meanwhile, registration for initial public offering (IPO)
by BCA, another bank under control of IBRA, failed to come
to reality as planned Monday.  (Asia Pulse  01-Feb-2000)

BANK RAKYAT INDONESIA: Restructures Rp 3.56T of NPLs
----------------------------------------------------
State-owned Bank Rakyat Indonesia (BRI) said here on
Wednesday it had successfully restructured about Rp 3.56
trillion (about US$490 million) of its nonperforming loans
(NPLs).

The bank said the figure represented 64 percent of its
corporate NPLs, reducing the value of its total problematic
loans to Rp 1.96 trillion at the beginning of the year
2000.  The bank expected it would be able to restructure
all its remaining NPLs in the next three months.

The bank explained that the Rp 1.96 trillion is a
conservative figure, as it uses a stricter standard
compared with that used by Bank Indonesia's when
categorizing restructured NPLs.

"For instance, based on Bank Indonesia's standard, NPLs are
stated to be sound after the signing of a restructuring
agreement," BRI said, adding that, unlike the central bank,
it often waited for three to six months to evaluate the
realization of an agreement with a debtor before revising a
credit's status.

The bank said that in restructuring NPLs, BRI required a
final cash settlement for every amount due, including the
interest payable prior to any debt restructurization
program.  The interest rate applied is the one valid at the
time of the due date and applicable to both rupiah loans
and foreign currency loans.

"If those conditions are met, BRI is willing to write off
the penalty interest," it said.

After the completion of a debt restructuring program, BRI
then sets a new interest rate, based on the debtors'
capability, which is measured by the Internal Rate of
Return (IRR). For rupiah loans, BRI sets the IRR at 1
percent higher than Bank Indonesia's three month promissory
notes (SBIs). For U.S. dollar loans, the IRR is set at 2
percent higher than the Singapore Inter-Bank Offered Rates
(SIBOR). (The Jakarta Post  03-Feb-2000)

PT BUNAS FINANCE INDONESIA: JSK updated on restructure     
------------------------------------------------------
PT Bunas Finance Indonesia Tbk reported the results of the
Extraordinary Shareholder Meeting conducted on 27 January
2000.  
Approved by an Independent Shareholder :
1. a.Approved implementation of guarantee right of share
pawning which is given to bailout the company's account
receivable to the company which has a special
relationship and write-off the company's account
receivable to the company which has a special
relationship.
b. Give power to the Company's Board of Directors to
execute matters related with the implementation of
guarantee right of share pawning and write-off the
company's account receivable to the company which has a
special relationship.
Approval from Shareholder:
1. a. Approved the restructuring all the company's debts
to the creditors, including debt to bondholders.
b. Give power to the Company's Board of Directors to
execute all matters related with restructuring process of
all the company's debts.
2. a. Approved issuing the mandatory exchangeable bond as
private placement through procedure in the Regulation No.
IX.D.4 Decree Attachment of the Chairman of Bapepam
No.Kep-44/PM/1998 dated 14 August 1998 regarding
increasing capital without right issue. T
b. Give power of the Company's Board of Directors to
execute all actions related with issuing process of
mandatory exchangeable bond as private placement.  
(Jakarta Stock Exchange  03-Feb-2000)


=========
J A P A N
=========

JAPAN TOBACCO: To cut work force, refocus on overseas unit
----------------------------------------------------------
Japan Tobacco Inc., nearly a year after its $7.8 billion
acquisition of RJR Nabisco Holdings Corp.'s non-U.S.
cigarette business, said it plans to cut 15% of the unit's
overseas work force and focus on promoting premium brands
like Camel and Salem.

The announcement had been long awaited in the industry
because the acquisition, the biggest overseas purchase by a
Japanese company, had elevated Japan Tobacco to the world's
No. 3 cigarette maker from a distant No. 4. But until now,
the former Japanese tobacco monopoly had given investors
little guidance on how it was going to compete against
giants Philip Morris Cos. and British American Tobacco PLC.

Analysts were disappointed in November, when Japan Tobacco
announced that a weaker-than-expected performance at the
weaker-than-expected performance at the RJR Eastern
European operations would depress group earnings this
fiscal year.  Japan Tobacco said Tuesday it plans to cut
2,000 of the 13,000jobs at JT International SA, the
combined operation of RJR's overseas business and Japan
Tobacco's own international business. The cuts will include
layoffs, company officials said.

To boost market share outside its domestic market, Japan
Tobacco said it will increase its sales-promotion spending
by $100 million this year, to an unspecified amount. It
will focus primarily on premium RJR brands, as well as
Japan Tobacco's Mild Seven brand. That's a change from
RJR's strategy in the past, which had been to promote a
wide range of cigarettes, including a variety of lower-
priced brands.

Japan Tobacco also plans to end RJR's use of discounts and
other measures that boost market share temporarily. Since
the acquisition, "we've realized that the most important
thing is the brand," said Hideo Tada, senior executive vice
president at Japan Tobacco.

Mr. Tada added that Japan Tobacco plans to focus marketing
on a number of more-lucrative markets, but declined to say
which ones, citing "competitive reasons." Analysts said
potential targets include Western Europe, where sales have
been growing, and Eastern Europe, if the region's economy
improves. With the new strategy, the company expects
overseas sales volume of its flagship brands to increase
5.1% a year, and total overseas sales to rise 3.2%
annually.

Japan Tobacco also unveiled big cost cutting measures at
the parent company. It plans to cut 12.5% of its domestic
work force, or 2,500 of its 20,000 employees, through early
retirement and attrition over the next five years. The
company expects to report a special loss of 12 billion yen
($111.8 million) for the year ending March 31.

The measures are expected to generate annual savings of
$237 million in 2004, the company said. For the year ending
March 31, Japan Tobacco said it expects consolidated net
profit to fall 36% to 48 billion yen from 74.6 billion yen
a year earlier. It expects net sales to rise 12% to 4.33
trillion yen from 3.88 trillion yen.

Keiko Sasaki, an analyst at ING Baring Securities in Tokyo,
said Japan Tobacco's restructuring steps appear to be in
the right direction, but added that she was "surprised" at
how seriously it would affect the bottom line. (The Asian
Wall Street Journal  02-Feb-2000)

NIPPON CREDIT BANK: Two bidders drop out of race
------------------------------------------------
US investment house Lehman Brothers and Banque Paribas of
France have dropped out of the race to buy Japan's
collapsed Nippon Credit Bank (NCB), reports said yesterday.

Their departure leaves a consortium of three Japanese
firms, led by Internet investor Softbank, and US investment
group Cerberus vying for the bank now under state control,
Jiji and Kyodo news agencies said.

"Of the four candidates, two candidates appear to have
stepped down," financial reconstruction state minister
Michio Ochi told a news conference. He did not specify
which firms had withdrawn.

An official at Ochi's Financial Reconstruction Commission
(FRC) refused to elaborate on his comments.  And the Tokyo
office of Paribas said it had no knowledge of the reported
withdrawal and there was no immediate response from the
local branch of Lehman Brothers.  But senior Paribas
officials in private have dismissed their chances of
winning, saying the government wants NCB to go to a
Japanese buyer after another failed long-term credit bank
went into foreign ownership.

Last September, Long-Term Credit Bank of Japan was sold to
a group of investors led by the US finance firm Ripplewood
Holdings. Although Nippon Credit is a much smaller bank,
with about six trillion yen ($55.88 billion) in assets as
opposed to about 10 trillion yen for LTCB, its sale could
also make waves. If the bank goes to Cerberus, which is
best known in Japan for buying distressed assets, it would
be only the second foreign purchase of a major Japanese
lender.

A sale of the softbank group - which includes Tokio Marine
& Fire Insurance Co., Japan's biggest casualty insurer, and
Orix Corp., the country's largest leasing company - would
usher in a group of outsiders to Japan's insular banking
industry, injecting fresh blood into the financial system.

Kyodo said Lehman Brothers and Paribas had failed to submit
a formal application for their bids by last weekend's
deadline set by the FRC.  NCB, one of Japan's three long-
term credit banks, collapsed in December 1998 under a
mountain of bad loans dating back to the "bubble economy"
investment boom of the late 1980s.  It is under special
state control for eventual sale to the private sector.

The FRC, charged with revitalizing Japan's troubled
financial industry, will choose the winning bidder by the
end of this month, Kyodo said.  In selecting the buyer, the
commission will scrutinize purchase terms and restructuring
plans on offer from the two remaining candidates, Jiji
said. (Business Day, The Asian Wall Street Journal  02-Feb-
2000)

NISSAN MOTOR CO.: To sell aerospace business, pay debts
-------------------------------------------------------
Ishikawajima-Harima Heavy Industries Co. (7013) and Nissan
Motor Co. (7201) are near to closing a deal in which IHI
will buy Nissan's aerospace division for an estimated sum
of just over 40 billion yen, The Nihon Keizai Shimbun
learned Wednesday.

Nissan will use the proceeds from the expected sale to
reduce its huge interest-bearing debts, and to concentrate
its focus on its mainstay, automotive manufacturing. The
division's 860 workers will move to IHI.

The two companies plan in mid-February to exchange a letter
of intent for what is to be the first major shake-up of the
aerospace industry in Japan. They will close the deal in
March, with the intention of making the final transaction
as early as July.  The move is likely to lead to a sweeping
reorganization of the Japanese aerospace industry, which
also involves defense-related businesses, industry analysts
say.

IHI will likely make Nissan's aerospace division a wholly
owned company after the purchase. IHI will not only benefit
from Nissan's cutting-edge rocket technology, but also will
see its revenue from aerospace operations rise to 220
billion yen, trailing only No. 1 Mitsubishi Heavy
Industries Ltd. (7011).

Jet engines for aircraft account for most of IHI's
aerospace operations, while its space business is limited
to rocket engine parts and others. In its new business
plan, the company highlights the aerospace business as a
growth field.  In fiscal 1998, Nissan generated 51 billion
yen in revenue from its aerospace division, which
manufactures rocket boosters for H-2 rockets and other
machinery, as well as rocket systems supplied to the
Defense Agency.

Both Nissan and IHI believe the planned sale will go
smoothly, because the two companies have close relations in
the aerospace field, acting as major participants in a
National Space Development Agency project to develop a
small rocket to be launched in fiscal 2002. (Nikkei  03-
Feb-2000)


===============
M A L A Y S I A
===============

LAND & GENERAL BHD: To reschedule two-thirds of its debt
--------------------------------------------------------
Land & General Bhd, the eighth-biggest publicly traded
property developer in Malaysia, said it plans to reschedule
two-thirds of its 787 million Malaysian ringgit (S$350.6
million) debt.

L&G, as the company is known, is trying to resolve its debt
woes because property sales slumped after the Malaysian
economy contracted a record 7.5 per cent in 1998 and its
currency, the ringgit, depreciated by a third. While the
economy has pulled out of a recession, property sales are
still slow because supply exceeds demand.

"The weakening of the ringgit, high cost of funds, slower
demand for properties due to credit and confidence issues
... had a negative impact on the L&G group's financial
position," L&G said in a statement. It did not say over
what time period the debt repayments will be rescheduled.

L&G will reschedule payments on RM529 million, or two-
thirds, of its borrowings. The property developer is also
looking for ways to pay RM100 million to its trade
creditors.  The plans wouldn't involve any debt write-offs,
the company said. L&G is controlled by businessman Wan Azmi
Wan Hamzah, who was a protege of Finance Minister Daim
Zainuddin.

L&G will also sell some of its assets to raise cash and
plans to convert its euro convertible bonds into stock.
The company will then focus on its property business. Its
debt reorganisation plan will be "finalised" in three
months, L&G said. The company's shares have more than
doubled in the past 12 months, faster than the Kuala Lumpur
Composite Index's 68 per cent gain. (Singapore Business
Times  04-Feb-2000)


=====================
P H I L I P P I N E S
=====================

BW RESOURCES CORP.: Scandal affects local stock trading
-------------------------------------------------------
The Cebu stock market is now feeling the effects of the
trading scandal involving BW Resources Corp. (BWRC) that
has badly hit Metro Manila, according to local stockbroker
firms. But it is affected only to a lesser extent.

BWRC is being investigated by the Securities and Exchange
Commission (SEC) for insider trading, after its share price
shot up to P107 from P2.  A source from All AsiaCapital and
Trust Corp. who declined to be identified told Sun.Star
that the BWRC fiasco had slowed down the activities in the
local stock market. She said investors, specially
foreigners, had "lost confidence in the market."

An ATR Securities Inc. official echoed the same
observation. She said stock trading in Cebu had slowed
down.  "This means capital inflows or investments for
businesses will decrease," she said.

Both stockbrokerage companies refused to divulge the volume
of stock trading in Cebu.  Philam Asset Management Inc.
(Pami) president and chief executive officer Rex Mendoza
attributed the delayed react-ion of the Cebu market to the
BW Resources scandal to the area's lower dependence on
foreign investors.  Pami, an asset management company,
pools together people's capital resources and invests these
in the stock market, as well as in corporate and government
instruments.

Mendoza said the Cebu market had local businessmen who
could provide the capital for their own business endeavors.
In contrast, Manila businessmen are largely dependent on
foreign investors, he said.

"If the country fails to get the confidence of the foreign
investors, Manila will automatically feel its drastic
effects," he said. (Sun Star  03-Feb-2000)

GLOBE TELECOM GMCR: NTC issues show-cause order against
-------------------------------------------------------
The National Telecommunications Commission (NTC) yesterday
issued Globe Telecom GMCR, Inc. a show-cause order,
directing the cellular operator to explain within 10 days
for failing to provide its prepaid subscribers adequate
supply of reload cellphone cards.

In a press conference at the Department of Transportation
and Communications (DoTC) office, NTC commissioner Joseph
A. Santiago said if Globe's explanation is deemed
insufficient by the commission, they may prevent the
company from accommodating more subscribers.

"Globe has always reasoned the increasing number of their
subscribers for unavailability of the cards. So if they
fail to give us a sufficient answer, then we may freeze
adding new subscribers," Mr. Santiago told reporters during
the press conference.

Globe currently enjoys the lead in the digital market with
more than a million subscribers, which Mr. Santiago said is
the reason why majority of complaints come from Globe
subscribers.  The prepaid service, as well as short-message
service, or popularly known as text messaging, boosted the
company's subscriber base and eventually, resulted in its
turnaround from almost five years of net losses.

Globe, for its part, said its sales and technical people
have already started looking closely into the matter.
In a letter to Sen. Ramon Magsaysay, Globe senior vice-
president for corporate and regulatory affairs Rodolfo A.
Salalima claims there is no market shortage or scarcity of
prepaid cards.

"In fact, our data show that the total calls generated by
our prepaid subscribers systemwide do not even approximate
the total value of prepaid cards which Globe has released
in the market nationwide," said Mr. Salalima in the letter.
Senator Magsaysay earlier urged the NTC to investigate the
prepaid issue as it has inconvenienced subscribers.

Due to the popularity of Globe's prepaid service, some
dealers resort to hoarding the supplies, resulting in the
proliferation of cards in the black market. The reload
cards, available in 250 Philippine pesos (PhP), PhP500 and
PhP1000 denominations, are sometimes sold PhP50 more than
its face value.

Mr. Santiago said it is the responsibility of the carriers
to provide good service to their customers. "We told them
the only way to kill the black market is to saturate (the
market) with prepaid cards. They have entered the prepaid
business and with that, they are expected to render good
service," Mr. Santiago stressed.

The mounting complaints on the inefficiencies of the
prepaid business prompted the NTC to draft a policy on the
prepaid service. The commission earlier asked carriers to
submit position papers and billing procedures to
standardize the prepaid service for the industry. A hearing
has been set on February 17 on the issue. (Business World  
03-Feb-2000)

PHILIPPINE AIRLINES: IAPA demands pilot reinstatement
-----------------------------------------------------
International airline pilots' associations on Wednesday
warned they would support actions against Philippine
Airlines (PAL) unless more than 300 PAL pilots who were
sacked in 1998 after going on strike are reinstated.

These actions could include opposing PAL's entry into any
international airline alliance, the officials said as they
hinted that they might even issue a warning that PAL was
too unsafe for people to fly with because of its labor
dispute.

Speaking at a regional pilots' conference, Ted Murphy, the
president of the International Federation of Airline
Pilots' Association (IFALPA) said "we would not hesitate to
make it clear what we (the pilots' associations) consider
should be the position of our airline" if PAL asked to join
an international alliance.

"Both as employees and shareholders, we will bring our own
influence to bear," Murphy said, adding that "to allow PAL,
with its attitude, into our alliance, is unthinkable."

John Findlay, general-secretary of the Hong Kong Pilots
Association and general-secretary of the Cathay Pacific
pilots union, said "we will say this is not the sort of
airline we would like to see in our alliance."

The officials said that since many airlines had pilots'
representatives on their board or as major shareholders,
such a campaign would likely have some effect.  The dispute
is over some 300 PAL pilots who were sacked in in 1998
after a strike. The PAL pilots' union has a case pending in
court, arguing that the termination was not legal.

IFALPA and the ASEAN Pilots League declared their support
for the PAL pilots' union.  ASEAN league vice-chairman
Johan Dato Mohammad, said that the PAL pilots union "must
be allowed to play this role" of ensuring that the aviation
system remains safe.  Findlay said what was happening in
the Philippines was "something we have seen all around the
world, a lot of it in the Asia-Pacific region" where
cost-cutting management blames pilots for high costs even
at the risk of compromising safety.

"You have accountants running airlines, telling them (the
pilots) what to do," he added.

Murphy said this demoralized pilots and could affect PAL's
safety.  "People who come to airlines with cost-cutting and
no other agenda are unsafe," Murphy said.

PAL, which was facing bankruptcy, fired its striking pilots
in 1998 and sharply cut costs, routes and its fleet, making
do with pilots who crossed the picket line and with new
hires.  Under a rehabilitation plan to keep the airline
aloft, PAL employees have agreed to suspend their
collective bargaining agreement for 10 years and will not
go on strike or seek wage increases.

The striking pilots' union however has refused to recognize
this agreement.  Murphy also said he sent a letter to
Philippine President Joseph Estrada asking him to mediate
to end the dispute between the union and the airline but
had received no response or acknowledgement.  (Agence
France Presse  02-Feb-2000)

PHILIPPINE AIR LINES: Wants tie up with two local carriers
----------------------------------------------------------
After almost a year of rehabilitation, Philippine Airlines,
Inc. (PAL) appears to be headed towards unfriendly skies
again as the airline management is allegedly in talks with
two local carriers for a possible route expansion
arrangement.

BusinessWorld sources at PAL yesterday claimed the flag
carrier management is planning to expand its current route
network by entering into a "hosting services" arrangement
with the Gatchalian-led Air Philippines and upstart airline
charter firm Aero Pilipinas.  Both Air Philippines and Aero
Pilipinas are rumored to be majority owned by no less than
PAL chairman and chief executive officer Lucio C. Tan.

However, sources said the PAL management was allegedly
forced to modify its plans because it was not allowed under
its current rehabilitation plan to acquire new aircraft or
expand to other routes without the approval of its
creditors, the Securities and Exchange Commission (SEC) and
its permanent rehabilitation receiver.

Because of this, sources said PAL now plans to pass on the
dry lease of the three Boeing aircraft to Air Philippines
"considering its tax exemption as an airline."

Sources claimed the PAL management intended to reopen its
RP-Australian route with a thrice-a-week flight to Sydney
targetted to begin this June in time for the summer
Olympics.  PAL sources alleged the Tan-led management had
already begun making arrangements for the leasing of three
Boeing 747-200s to ply the Sydney route.

Meanwhile, sources claimed newcomer Aero Pilipinas would
provide both the pilots and cabin crew while PAL takes
charge of the marketing and earns most of its margins from
sales commissions.  Sources added that under the alleged
new scheme, PAL would also provide "certain services" to
Air Philippines such as catering, ground handling, light
maintenance and personnel in or out of Manila based on the
"appropriate service fees."

Sources claimed the "hosting services" arrangement was
intended to boost PAL's coffers and would later on be
expanded to cover other routes such as Vancouver, Canada
and Europe.

In the most recent board meeting held in late January, it
was allegedly reported that while the airline was able to
turn in a 240.4-million-peso (US$5.9 million at
PhP40.601:US$1) net income in December, it still had a
year-to-date loss of PhP121.6 million ($3 million).

Nonetheless, one PAL source said the flag carrier
management may be able to convince the airline's creditors,
the SEC and its rehabilitation receiver to agree to the
hosting arrangement if it will be able to show it would be
"profitable."

"If they (the creditors, the SEC and the receiver) are
convinced that it's good for PAL, then the creditors and
the other stakeholders know that it will also be good for
them," the source noted.

When sought for comment by BusinessWorld , PAL president
and chief operating officer Avelino L. Zapanta downplayed
the alleged route expansion as mere "plans" which have yet
to materialize.  However, he did admit that there are
ongoing talks between the "teams" of PAL and Air
Philippines but these were all still based on "very loose
arrangements."

"Our teams are talking to each other but it will be a long
time before we see anything definite... When we're ready we
will come up with the proper announcement," he said.

Mr. Zapanta said the possible cockpit and cabin crew
arrangements with Aero Pilipinas was just one of the
"alternatives" of the flag carrier.  Air Philippines
earlier entered into a similar arrangement in November last
year when it was tapped to fly PAL's domestic routes.
At that time, no less than Air Philippines chairman William
Gatchalian was reported as saying that the local carrier
would soon be going international by middle of the year
2000.

In a related development, beleaguered members of the Air
Line Pilots Association of the Philippines (ALPAP) are
faced with another dilemma in its ongoing labor dispute
with the management of PAL.  The ALPAP was allegedly denied
access to an estimated PhP2.2-billion ($54 million)
retirement fund being held in trust by three local banks,
said ALPAP's president Captain Sotico T. Lloren.

During the group's press conference at the Asian Institute
of Management Conference Center in Makati yesterday, Mr.
Lloren said "access to the fund is proving to be difficult
despite the fact that the retirement plan and its bylaws
clearly entitle the pilots to the funds."

The retirement fund, which Mr. Lloren said is one of the
biggest in the country, is currently held in trust by the
Bank of the Philippine Islands, Metropolitan Bank and Trust
Company, and the Philippine Commercial and Industrial Bank.
The fund, which was set up 20 years ago, is intended solely
for the retirement benefits of the pilots, stressed one of
ALPAP's legal counsel, Jose Manuel Diokno.

ALPAP members, during their stint as PAL pilots, contribute
to the funds through a regular deduction from their monthly
salaries.  "PAL is now attempting to say that the striking
pilots are no longer entitled to the retirement fund as
they had supposedly gone on an illegal strike," Mr. Diokno
explained.

Consequently, ALPAP filed a declaratory relief case at the
Regional Trial Court (RTC) of Quezon City to settle the
fund's ownership. ALPAP is arguing that the fund is under
the sole control of a nine-member duly constituted
retirement board.

"We have a pending case before the RTC of Quezon City since
it is very clear in (ALPAP's) trust agreement with the
banks that PAL cannot overrule the retirement board," Mr.
Diokno said.

As this developed, the Labor department dismissed ALPAP's
petition for a reconsideration of its earlier decision
ruling the union's 22-day strike last year as "illegal."

In a three-page resolution, DoLE said it found "no
convincing basis" to change its verdict of June 1, 1999,
declaring the walkout illegal. It also affirmed the
strikers had lost their employment status with the airline.
In its June 1 decision, DoLE said ALPAP failed to
substantiate its charge of union busting against PAL.
(Business World  03-Feb-2000)

PILIPINO TELEPHONE CORP.: NTC may impose penalties
--------------------------------------------------
The National Telecommunications Commission (NTC) bared
plans yesterday of imposing monetary and administrative
penalties against local exchange carriers (LECs) which
failed to fulfill their telephone roll-out obligations
within the three-year period provided by law.

NTC Commissioner Joseph Santiago said they have already
issued a show cause order against Isla Communications
Company (Islacom), Pilipino Telephone Corp. (Piltel),
Philippine Telephone Corp. (Piltel) and Philcom Corp. to
explain their non-compliance to the roll-out criteria.

"We don't know yet how much we will impose. Maybe we'll
look at the level of non-compliance. So for instance, you
are committed to provide 700,000 lines and you were able to
install 50 percent, then, we will have to fine you for the
remaining 50 percent," he explained.

He added, however, that the NTC will not base its decision
solely on the number of lines involved.  The NTC, he
pointed out, has made it a policy that for every 10 lines
laid down in an urban area, at least one line should be put
up in the rural area.  Likewise, the carriers are mandated
to install lines in each of the cities and municipalities
under their jurisdiction.

"We have to look at the other factors also such as the
rural-urban ratio and the committed areas served. So maybe
we will give points to each and see their compliance to the
three requirements," Santiago said.

The NTC chief, said that they will not impose the maximum
penalty of cancellation of licenses for non-compliance
since the carriers already have existing subscribers who
would be adversely affected by such a drastic action.

"By strict interpretation of the law, zero compliance will
mean cancellation. So we're really thinking of going for
monetary penalty as well as a freeze in their applications
for future expansion," he said.

Meanwhile, Santiago said that of the eight LECs whose roll-
out deadline already lapsed in 1998, Piltel only had a
91.64 percent compliance; Islacom, 74.21 percent; PT&T,
51.8 percent; and Philcom, 22.04 percent.  Islacom's
lawyers, he continued, have filed recently a motion asking
for the details of the show cause order while the rest have
already done so earlier.

Public hearings, he said, will begin soon to give the
players a chance to explain their side.  However, Bayan
Telecommunications Inc. (BayanTel), Digital
Telecommunications Philippine Inc. (Digitel), Globe Telecom
and Smart Communications Inc. (Smart) are not yet off the
hook.

Although the four companies have achieved more than 100
percent rollout compliance, they have failed to meet the
requirement to install lines in all their assigned service
areas, Santiago said. (The Philippine Star  03-Feb-2000)

UNIWIDE GROUP: Two foreign white knights to rescue  
--------------------------------------------------
Two white knights are keen on saving cash-strapped Uniwide
Group of Companies and are just waiting for the
implementation of the group's rehabilitation plan before
finally signing an agreement with the management.

BusinessWorld learned yesterday that two foreign firms -- a
French retail firm and an Asian investor associated with a
foreign retail company -- are close to completing their due
diligence on the group and have moved on to a more
"serious" level of discussions with Uniwide owner Jimmy
Gow.

Talks are rife in the market that the management will be
signing later this week a deal with French retail giant
Carrefour Group, which has been actively increasing its
presence in Asia.  When asked about the French group, a
company source would neither confirm nor deny the rumored
deal, only saying Uniwide is talking to two foreign firms.

"We're seriously talking with potential investors and two
of them have surpassed the stage of exploratory
(discussions). They have already done substantial due
diligence work and are now closely waiting (for) whatever
developments will take place (involving) the implementation
of the rehabilitation plan which is being executed by the
SEC (Securities and Exchange Commission)," a company
source, speaking on condition of anonymity, told
BusinessWorld yesterday.

"It is very difficult to disclose right now. There can be a
signing and there may not be a signing. The terms of the
agreement are still being finalized ... a lot has to be
ironed out. And since we're under the SEC, the foreigners
have to understand the legalities. It's not an easy
project. Everything is still in the making," the company
source said.

Aside from Carrefour, other French retail firms include
supermarket chain Leclerc, Kingfisher and Casino. However,
only retail giant Carrefour has been aggressively expanding
in Asia. The company has already opened bases in Hong Kong,
South Korea, Singapore, Taiwan and Japan.  Another source
said Mr. Gow is now willing to sell his majority
shareholdings in the group to save Uniwide's ailing
companies -- but for the right price.

"He is willing to sell to save the organization but it will
depend on the price. It should be commensurate to the price
of his ownership. Both the group and the foreign investor
are also hoping to finalize the deal soon but it also
depends on the SEC's approval," the source said.

The Uniwide Group is now under the receivership of the SEC
which will be in charge of implementing the group's
rehabilitation plan.  Under the plan, at least one billion
Philippine pesos (US$24.6 million at PhP40.601:US$1) should
be raised immediately to fully restore the operation of the
group's retail business, particularly that of the Uniwide
Sales and Warehouse Club, Inc.

The said amount will be used for stock replenishment of all
the stores, while an additional PhP500 million ($12.3
million) will be required for capital expenditures.  The
cash will help the group recover its lost market share in
the local retail business.

The plan also requires Uniwide companies to generate PhP12
billion ($295.5 million) in revenues on the first year and
achieve profitability on the third year of operations.
The Uniwide group experienced liquidity problems as a
result of the economic crunch and filed for suspension of
debt payments and rehabilitation with the SEC in June last
year.  The group's unsettled obligations currently stand at
PhP11.1 billion ($273.4 million). (Business World  03-Feb-
2000)

WATERFRONT HOTELS: To pay MCIAA P7.2M within a year
---------------------------------------------------
Waterfront Hotel-Mactan will pay the estimated P7.2 million
it owes the Mactan-Cebu International Airport Authority
(MCIAA) within one year.

In a meeting yesterday, both sides also agreed that the
hotel can do so on installment basis depending on its
financial condition.  Cristita Truya, MCIAA's finance
manager, said the money owed included (not P11 million as
reported in another paper) lot rental; two percent share of
gross sales on food and beverage, shows, concerts and
conventions; and value-added tax (VAT).

But hotel management is contesting the VAT payment, saying
the law mandates that they remit this to the Bureau of
Internal Revenue.  Truya said the Waterfront panel told
them they will settle their account not later than a year.

"They also promised to pay their current account on time,"
she said.

Yesterday's dialog staved off MCIAA plans to sue the hotel
for non-payment of outstanding debts.  Malaysian national
Chua Ma Yu established the hotel a few years ago, before
local tycoon William Gatchalian acquired it.  Truya said
they still need to resolve the problem of rechecking
Waterfront's financial report.

"This is why we call the total of their outstanding debt as
an estimate because the computation is based only on the
hotel management's financial report submitted to the MCIAA
and we have no way of rechecking its truthfulness," she
said.

The Waterfront Hotel in Mactan has accumulated P5.8 million
in unpaid rentals and the two percent share of its gross
income to the MCIAA.  The amount excludes unpaid taxes,
electric billings and advertising fees.  The hotel in Lahug
owes MCIAA nearly P3 million.  The two hotels are renting
government-owned lots at the cost of P1.8 million and P1.5
million every quarter of the year.

Waterfront also allegedly rejected a proposal for MCIAA to
link up with the hotels. The proposed networking was
supposedly aimed at double-checking the income statements
submitted by Waterfront from which MCIAA would base its two
percent share.  An MCIAA source said MCIAA was supposed to
set up its computers at the hotels last November but
Waterfront claimed these are not compatible with its own
network.  MCIAA officials said they have no way of
verifying the figures submitted to them.
"Suddenly, they give us excuses. The computers are not
compatible," a source said.

Waterfront Mactan has not submitted record of its income
from hotel rooms, food and beverages, shows, concerts,
conventions and rentals of concessionaires for the whole of
1999.  MCIAA has no data of Waterfront Lahug's income from
the sources during the last quarter of the same year.

Truya said the MCIAA assigned a team to monitor hotel
operation, but this was stopped due to lack of manpower.
However, Truya said they have created a new team that can
submit a report to them any time. (Sun Star, The Freeman  
02-Feb-2000)


=================
S I N G A P O R E
=================

CLOB INT'L: No end to dispute in sight
--------------------------------------
Hopes faded yesterday for an early end to a dispute over
frozen shares worth billions of dollars which has strained
relations between Singapore and Malaysia.

The Singapore stock exchange described as misleading" a
Malaysian account of a meeting it held Monday with the
Kuala Lumpur Stock Exchange (KLSE).  And David Gerald, a
representative of the mainly Singaporean shareholders whose
holdings have been frozen, accused the Malaysian exchange
of threatening investors.  There have been bankruptcies.
Pensioners have lost all their savings. They [the KLSE] are
playing with human lives and miseries," he said.

The shares, now worth an estimated 17 billion ringgit
(US$4.86 billion), were frozen when Malaysia imposed
capital controls in September 1998 during the Asian
financial crisis, banning trading of its listed shares
outside the country.  Previously they had been traded in an
over-the-counter market in Singapore under the Central
Limit Order Book International (CLOB) scheme.

The dispute has been an irritant in often-testy relations
between the neighbors but a KLSE statement Monday suggested
a settlement might be closer.  It said the Singapore
exchange had recognized a proposal by Malaysian firm
Effective Capital to handle the transfer to the Kuala
Lumpur stock exchange of the frozen shares as part of a
comprehensive and expeditious solution to the CLOB issue."

The Singapore exchange, it said, indicated it would
distribute Effective Capital's offer documents to
shareholders next week.  The KLSE said shareholders who
rejected Effective Capital's proposal would have fully
recognized" that their shares would be transferred to the
Malaysian finance ministry when a deadline to settle the
dispute expired on June 30.

However a spokesman for the Singapore exchange, quoted by
the island's Business Times newspaper, termed the Malaysian
statement an incomplete and misleading account of the
[Singapore exchange's] position."

In a separate statement the KLSE said it was not showing
favouritism towards any one of a number of offers by
private firms to handle the transfer. But, it said, only
Effective Capital had complied with all rules and
procedures.  In the interests of a speedy settlement, it
added, CLOB investors should concentrate on those proposals
that have fully complied with the relevant rules and
procedures."

Some 100 Malaysian issues were traded under CLOB and an
estimated 170,000 CLOB shareholders, mainly Singaporean,
were hit by the freeze.  Singapore's Prime Minister Goh
Chok Tong has said he will hold talks with his Malaysian
counterpart Mahathir Mohamad this month to help break the
impasse. (Business Day  02-Feb-2000)

CLOB INT'L: KLSE-SGX disagreement intensifying
----------------------------------------------
The war of words between the stock exchanges of Malaysia
and Singapore has intensified. In a two-paragraph statement
yesterday, the Kuala Lumpur Stock Exchange maintained its
claim that the Singapore Exchange has recognised Effective
Capital's proposal as a "comprehensive solution" to the
long-drawn Clob saga.

"The KLSE maintains that its press release issued on 31
January 2000 titled 'SGX recognises Effective Capital's
proposal' is an accurate and true account of the meeting
held between KLSE and SGX on Monday, 31 January 2000," the
KLSE said.

It added: "KLSE noted with concern SGX press release of 1
February 2000 titled 'KLSE statement misrepresents SGX
position'. KLSE noted that a substantial part of the SGX
press release included matters which were not even raised
at the meeting held between KLSE and SGX on Monday, 31
January 2000."

SGX had not issued a response by press time.  Senior
officials of the two exchanges had met earlier this week to
discuss ways to release the RM18 billion (S$8 billion)
worth of Malaysian shares previously quoted on Singapore's
Clob International. Participants of the closed-door meeting
in Kuala Lumpur on Monday included Lim Choo Peng, president
of SGX, and Mohd Nor Ahmad, deputy president of KLSE.

After the meeting, the KLSE unilaterally issued a
statement, claiming that its Singapore counterpart has
recognised the proposal by Akbar Khan's Effective Capital
as a comprehensive solution to the Clob impasse.  A few
hours later, an SGX spokesman told BT that the KLSE
statement was "incomplete and misleading".

And on Tuesday, SGX followed up with a lengthy statement to
give its version of the meeting. "Mr Lim said that SGX had
no objections to including Effective Capital's proposal as
part of the comprehensive solution, if that was KLSE's
view," the SGX statement said.

However, SGX was uneasy with Effective Capital's plan.
First, SGX felt there was no guarantee that the Malaysian
Central Depository would indeed effect the transfer of Clob
shares in accordance with the proposal.  "Secondly, the
terms were not satisfactory," SGX said without elaborating.

According to the SGX statement, a comprehensive solution
must involve the migration of all the Clob shares to the
investors' accounts so that they can be traded on the KLSE.
"If that was not done, SGX would have no choice but to
resort to the courts and WTO to require KLSE to perform its
legal obligations," the SGX said.

Another major dispute is over the fate of investors upon
the expiry of their joint nominee account -- in the name of
Central Depository (Pte) Ltd (CDP) -- on June 30. Malaysia
has said that the shares will be placed under the custody
of Finance Minister Daim Zainuddin if they remain in CDP
after June 30.

Under Effective Capital's proposal, it will charge a 2 per
cent fee to help release the shares in weekly batches over
22 months.  CDP has agreed to distribute Effective
Capital's offer documents to the Clob investors next week.
Furthermore, the KLSE said only Effective Capital's offer
has complied with its securities laws although there are
half a dozen other proposals on the table.

"We hope they take up the Effective Capital offer. If not,
we hope they have the pleasure in dealing with the Finance
Ministry," quipped a senior Malaysian government official.

Mr Akbar is reportedly a close associate of Mr Daim.
(Singapore Business Times  04-Feb-2000)


===============
T H A I L A N D
===============

BIJOUX HOLDINGS: Ordered to improve finances
CHAOPHYA MARBLE-GRANITE: Ordered to improve finances
ONE HOLDING: Ordered to improve finances
ORIENTAL LAPIDARY: Ordered to improve finances
THAI FISHERIES: Ordered to improve finances
THAI MELON POLYESTER: Ordered to improve finances
----------------------------------------------------            
The SET's Board of Governors resolutions for January 2000
has ordered the above-listed companies in the REHABCO
Sector without debt restructuring progress to improve their
financial status and restructuring debt within 60 days,
otherwise they may face the possible delisting. It is the
order by virtue of Section 172 of the Securities and
Exchange.  (Stock Exchange of Thailand  01-Feb-2000)

FIVE STARS PROPERTY: Posts 9-month loss
---------------------------------------
Third-quarter earnings ending Sept 30, 1999 for Five Stars
Property showed a year-on-year rise in net loss to
Bt158.262 million against Bt53.62 million. The net loss for
the first nine months of last year rose sharply to Bt267.58
million from Bt116.94 million in the corresponding period
of 1998.  (The Nation  03-Feb-2000)

SIAM NEC CO.: Reports its closure to SET
----------------------------------------
This refers to a news report published in Thansettakij
newspaper of January 30 - February 2, 2000 edition, in
connection with the closure of Siam NEC Co., Ltd., a
subsidiary in which The Siam Cement Plc., holds 55 percent
share.

The company, through Chumpol NaLamliang, president, wants
to reaffirm that the Board of Directors of Siam NEC Co.,
Ltd., which is a joint venture between NEC Corp (NEC),
resolved to close down the business after NEC had
discontinued the color television business.

At the same time, The Siam Cement Plc's corporate
restructuring plan will reduce its role in television
business and will only concentrate on core businesses i.e.
cement, petrochemicals and paper. The business closure was
within the authority vested in the Board of Directors of
Saim NEC and NEC. The decision therefore, has had no impact
on The Siam Cement Plc's business operations.  (Stock
Exchange of Thailand  01-Feb-2000)

SIAM NEC: 480 laid off in NEC plant shutdown
--------------------------------------------
Nearly 500 workers have been laid off following the shut
down of Siam NEC's television plant.

Siam Cement (SCC), which owns a 55 percent stake in the
company, said it reported to the stock market about the
decision to close down the plant on January 31. Yesterday
the plant was officially shut down, making 480 workers
unemployed. About 200 workers were transferred to SCC's
subsidiaries such as Thai CRT and Siam Compressor.

An SCC official said the decision stemmed from an NEC
corporate change in business strategy, pulling itself out
of the global television market. He added that roughly
750,000 televisions assembled in Thailand were exported
around the world.  The shut down was in line with SCC's
debt restructuring plan, which requires it to concentrate
on the core businesses - cement, chemicals and paper. As
recently as January 27, SCC also sold its ceramic tile unit
in the US to an Italian company. (Business Day  02-Feb-
2000)

SUN TECH GROUP: Reports debt rehab progress to SET
--------------------------------------------------
Sun Tech Group Plc, through Dr.Chaiyaphon Horrungruang,
president, has reported to the Stock Exchange of Thailand
that it is in the process of debt restructuring. The
Company, Steering Committee and Financial Advisor have been
concurrently preparing the debt restructuring plan that the
Company anticipated to submit it to creditors within
January 2000.

The process of debt restructuring is now in continual
progress.  There are numbers of issues to be considered and
the plan should be modified and amended to obtain creditors
acceptance so that the Company could not submit the plan to
all creditors within January.  Additionally, the Steering
Committee, Financial Advisor and the Company have set the
creditors meeting to have first voting on 29 February 2000.
The Company will report update status and progression
later.  (Stock Exchange of Thailand  02-Feb-2000)


S U B S C R I P T I O N  I N F O R M A T I O N

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