Japanese Premier Shinzo Abe plans to pledge 60 billion yen (US$580 million) in loans to Burma, chiefly to help it build infrastructure, at an upcoming summit with President Thein Sein, a Japanese government source told Kyodo News.

BUSINESS in BURMA this WEEK: China offers tax breaks on Burmese gas; foreign banks to be allowed limited operations in Burma; construction begins at Thilawa industrial zone; telecoms giants ink deal; and new proposals for the Rangoon skyline.

BUSINESS IN BURMA THIS WEEK: Hotels open in Naypyidaw for SEA Games; India eyes pan-Asian gas contract; rubber deal signed with Japan; IMF's Christine Lagarde is en route to Burma; and both Mercedes and Chevrolet plan auto showroom launches in Rangoon.

Japan and Burma are looking to build upon their historical relationship on railways cooperation with both premiers scheduled to discuss the topic at an upcoming Japan-ASEAN summit in December.

BUSINESS IN BURMA THIS WEEK: Sponsors for the SEA Games; international oil firms post finals bids for Burma's offshore reserves; Japan in position to take over Dawei project; Singaporean bank looks to cater for increased bilateral trade; and Pepsi enters the cola wars.

Representatives of the Karen National Union (KNU) met last week with members of the Tenasserim division government in Tavoy where they agreed that plans to teach ethnic languages in Karen schools should move ahead.