An almost completed artillery factory in impoverished Myanmar is in limbo thanks to charges laid in Seoul against 14 South Korean executives allegedly overseeing the project. Myanmar's generals are likely to bring in experts from their usual military suppliers to finish the job.
This factory, almost certainly state of the art, is part of a growing Myanmese defence industry. It is designing and building weapons to reduce dependence on foreign suppliers, led by China, and make money to help pay for advanced weapons.
China, whether for commercial or strategic reasons, has supplied Myanmar mostly with second-rate equipment worth US$1.6 billion, since the late 1980s. The arms were adequate to cut down guerillas or civilians, but no great threat to neighbours, especially traditional foe Thailand.
In recent years, Myanmar's arms buyers have turned to hi-tech suppliers - from former communist states in Europe, plus Israel, Singapore, South Korea and India.
Only last month, Indian Air Chief Marshal S.P. Tyagi was in Pyinmana, the new capital of Myanmar. He offered gunships, combat aircraft avionics and naval spy planes to Senior General Than Shwe, head of the military junta, claims Human Rights Watch.
Increasing competition among suppliers will give China cause to offer first-rate kit if it wants to win orders.
Another factor will be Myanmar's buying power. It will bulge with petrodollars by 2010 as more gas, and some oil, flows from fields that Chinese, Korean, Indian, Thai and Singaporean operators are tapping.
