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BURMA HUMAN RIGHTS REPORT OCT 95 (6 (r)



Subject: BURMA HUMAN RIGHTS REPORT OCT 95 (6.59-6.82)

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/* -----------" BURMA HUMAN RIGHTS REPORT, OCT 95 (6.59-6.82) "---------- */

CHAPTER SIX: (6.59 - 6.82)
*************************
The Parliament of the Commonwealth of Australia
Joint Standing Committee of Foreign Affairs, Defence and Trade

A REPORT ON HUMAN RIGHTS AND THE LACK OF PROGRESS TOWARDS DEMOCRACY
IN BURMA (MYANMAR)     October 1995

CHAPTER SIX: ENGAGEMENT OF ISOLATION (6.59 - 6.82)
--------------------------------------------------

Australia - the Current State of Involvement in Burma

6.59  Since  1988,  at a government level, Australia's relations with Burma
have been minimal.

        (a) Australia maintains an Embassy in Rangoon.
        (b) Defence exports to Burma are banned  and  defence  visits  from
        Australia have been suspended.
        (c) Austrade officers from Australia do not visit Burma although an
        Austrade  office  is  maintained  in  Rangoon  with  guidelines  to
        'neither encourage nor discourage  trade',  it  is  an  information
        office.
        (d)  The  Government has suspended direct bilateral development aid
        and assistance through the United Nations is confined  as  much  as
        possible to grassroots activities.
        (e)  Humanitarian  aid  is  provided  to displaced people along the
        borders of Burma and Thailand  and  Burma  and  Bangladesh.  It  is
        delivered through NGOs [40].

6.60  However,  the  Australian  Government  has  promoted  change  in  the
political situation and an improvement in human rights in Burma through:

        (a) dialogue between the Foreign Ministers,  Senator  Gareth  Evans
        and U Ohy Gyaw at regional and UN forums;
        (b)  representations  and  dialogue with the Government of Burma by
        the Embassy in Rangoon;
        (c) support for strong resolutions  on  Burma  at  the  UN  General
        Assembly, the Commission on Human Rights;
        (d)  support for the objectives of the ICRC and UNHCR in their work
        in Burma and on the borders;
        (e)  support  for  the  international  legal   and   human   rights
        infrastructure; and
        (f) urging regional countries and the wider international community
        to  press  the  Government of Burma to implement democratic reforms
        and to adhere to universally accepted standards of human rights.

Australian Trade and Investment

6.61 Australian trade with Burma is small. Australian  exports to Burma  in
1993  were  valued  at  $A9.7  million,  made  up  of electrical equipment,
machinery, telecommunications equipments  and  spare  parts;  imports  from
Burma were $A12.7 million, mainly seafood.

6.62  Australia  is  ranked twelfth in foreign investment in Burma; $US28.2
million of investmemts have already been approved. At March 1995, proposals
by four Australian firms for investment have  been  approved,  two  in  oil
exploration,  one  in  mining. The fourth company, BHP, though approved has
withdrawn.

6.63 The DFAT Country Economic Brief reported that there had been  100  per
cent  increase  in  the  number  of Australian businesses visiting Burma in
1994-95. Australian business presence in Burma was listed as:

        * BHP Minerals is engaged in coal  exploration  in  the  Tenasserim
        area.
        *  Carlton  and  United  Breweries  are  actively  engaged  in  the
        promotion, distribution  and  sale  of  Fosters  beer,  distributed
        through a local agent.
        *  Ericsson  (Australia)  which successfully commissioned telephone
        substations during late 1993 and early 1994,  maintains  an  office
        staffed  with  an expatriate manager responsible for follow up work
        and to search for future business opportunities.
        * Glover Electrical Industries, which entered the Myanmar market in
        1989 has  grown  solidly.  They  specialise  in  air  conditioning,
        electrical refrigeration, plumbing and construction works.
        *  ICI  Pacific  Seeds  (Australia)  has  supplied hybrid maize and
        sunflower seeds on a modest but steady scale  to  the  Ministry  of
        Agriculture  for  some years. Similarly Boart LOngyear continued to
        supply mining tools and equipment to the Ministry of Mines.
        * In February 1995, Pacific Arc Exploration signed a  contract  for
        joint  venture  gold  exploration  with  the  Ministry  of Mines. A
        feasibility study has been completed  and  initial  works  are  now
        under way.
        *  South  Paeific, an oil exploration company, started drilling its
        first test well in March and in April 1995, Empire Oil Co (Pacific)
        signed a contract with the Ministry  of  Energy  for  a  production
        sharing  joint  venture  exploration for oil and gas in the Rakhine
        State, western Myanmar.
        * Transfield International  has  an  office  run  by  a  expatriate
        manager,  with interests in developing proposals for power stations
        [41].

6.64 The Committee wrote to 16 Australian businesses  [42],  understood  to
have   had   connections   with  trade  or  investment  in  Burma,  seeking
informaition on their experience. Nine replied. None were willing  to  talk
to  the  Committee.  Airey Ryan & Hill said that they had not proceed after
exploring the possibilities. Klinger explained that they had  withdrawn  in
1988,  Transcom  withdrew  in  1993, Multiplex successfully completed their
project in 1993, BHP withdrew in 1992. NOne  of  these  companies  believed
they  had  anything useful to tell the Committee. Lloyd's P&O Maritime said
they had no involvement in Burma at all. Kailis also said that they had  no
involvement but suggested that another part of the company might have. They
did not volunteer any further information.

6.65  This reluctance on the part of business was a matter of regret to the
Committee as it would have been most useful to test the general information
and other claims made about doing business in Burma against the  individual
experiences of Australian companies.

6.66  The DFAT Country Brief makes no meition of the human rights situation
in Burma. While the Committee  understands  the  desire  of  businesses  to
separate  trade  and  human  rights  issues, it seems to the Committee that
where human rights are abused, business is affected.  This  is  so  because
human  rights  problems generally indicate the lack of legal accountability
in a number of fields and the lack of the rule of law and open systems make
doing business unpredictable; because human rights abuses can impact on the
safety of expatriates doing business; because there are ethical problems of
associating the company with the problems of poor labour practices which  a
company  may or may not be able to control. Joint ventures particularly may
face this ethical dilemma as far as labour standards are concerned. Burma's
record of forced labour is so well documented and so brutal that  it  would
seem  to  the  Committee to be an important consideration in any investment
decision.

6.67 The ethnical dimension of doing business  has  received  attention  in
number  of  forums  of late. Teh Academy of Social Science in Australia and
the Asia-Australia Institute currently have a project  on  Australian-Asian
perceptions.  Business  ethics  are  a  matter of concern to australians as
evidenced by the disillusionment of many with the poor practices of the 80s
and the subsequent losses suffered by shareholders and the wider community.
HOwever  business  ethics,  what  they  are  or  should  be,   affect   our
international  relationships  as  well.  The  export  and  investment push,
especially in this region, requires Australian businessmen to have a  clear
understanding  of  our  ethical values. This becomes particularly important
where there are different levels of development, different rates of pay and
different expectations labour standards between Australia and  the  region.
At  a  recent  conference  on business ethics, Professor Stephen Fitzgerald
warned of the danger of failing to understand the importance of maintaining
high standards of business ethics in this country  if  we  are  not  to  be
accused of hypocricy [43].

6.68  The  Committee  believes  that  this  is  a  debate  that needs to be
continued and  developed.  It  should  involve  all  those  concerned  with
business  and  business practice and those concerned with the protection of
human rights. These are not mutually exclusive groups. The  Committee  also
believes  that  the  debate  should  be broadly based, not, as in the past,
narrowly focused on purely punitive responses to human  rights  abuses.  In
its  tow  reports  to  the Parliament so far, the committee has recommended
that, where possible, policy should move away from  reactive  and  punitive
approaches  and  consider the integration of human rights expectations as a
normal baseline  feature  of  Australian  practice  both  domestically  and
internationally, in both the public and private domain, applying equally to
government  agencies  involved in trade, aid and defence cooperation and to
private businesses.

6.69 It is time that Australian business become engaged in the  development
of  a  clear  statement of business ethics. It is part of the best practice
debate and it is an essential aspect of the projection of Australia in  the
region.  To  this extent, it is something that should be facilitated by teh
Australian Government through its  relevant  agencies,  the  Department  of
Foreign  Affairs  and  Trade,  AUSTRADE  and the Department of Industry. It
should be addressed in a coordinating way by the peak bodies of industry as
well as by individual Australian companies.

6.70 The Committee recommends that:

        (A) THE AUSTRALIAN GOVERNMENT SHOULD ACTIVELY ENCOURAGE  AUSTRALIAN
        BUSINESS  TO  ACT AT ALL TIMES IN MANNER CONSISTENT WITH AUSTRALIAN
        LAW  AND  HUMAN  RIGHTS  OBJECTIVES,  INCLUDING  ENVIRANMENTAL  AND
        WOMEN'S RIGHTS; AND
        (B)  CONSISTENT  WITH  THE  WHOLE-OF-GOVERNMENT  APPROACH  TO HUMAN
        RIGHTS AND THE NEED TO PROVIDE BUSINESS WITH PRACTICAL  ASSISTANCE,
        THE  AUSTRALIAN  GOVERNMENT  SHOULD  ENSURE  THAT  THOSE GOVERNMENT
        DEPARTMENTS,  AGENCIES  AND  SERVICES,  SUCH  AS  AUSTRADE,   WHICH
        ROUTINELY DEAL WITH AND/OR ADVISE AUSTRALIAN COMPANIES:
           (i)  ARE  FULLY  APPRAISED  AND ROUTINELY UPDATED ON AUSTRALIA'S
           HUMAN RIGHTS OBJECTIVES AND RELEVANT HUMAN RIGHTS INTELLIGENCE;
           (ii) PROVIDE APPROPRIATE ADVICE TO  COMPANIES  ON  HUMAN  RIGHTS
           MATTERS; AND
           (iii)  ESTABLISH  IN  COOPERATION  WITH  BSINESS ORGANISATIONS A
           HUMAN RIGHTS CODE OF PRACTICE; AND
        (C)  THE  AUSTRALIAN  GOVERNMENT  SHOULD  PURSUE  AT  THE  ILO  THE
        DEVELOPMENT   OF   A  CONVENTION  TO  REQUIRE  THE  APPLICATION  OF
        CONSISTENT HEALTH AND SAFETY STANDARDS FOR WORKERS IN MULTINATIONAL
        ENTERPRISES, ENSURING THAT THE SAME HIGH STANDARDS APPLY TO WORKERS
        IN DEVELOPING COUNTRIES AS TO THOSE IN THE COUNTRY OF ORIGIN OF THE
        ENTERPRISE.

6.71  The  Committee  has  addressed  these  matters   and   made   similar
recommendations  in  Chapters  5  and  16  of  its  report into Australia's
Relations with Thailand.

6.72 In the human rights report of 1994, teh Committee recommended that the
Government consider the establishment of a HUman Rights Centre for Dialogue
and Cooperation. The Committee believes that this issue  of  extending  and
facilitating  the  debate on human rights and business would be well served
by the establishment  of  such  a  centre.  At  the  time  of  writing  the
Government  had not yet made its response to the 1994 report. The Committee
therefore reiterates its recommendation on the Centre  and  suggests  there
may  be  some  scope  for  combining the Human Rights Centre with the Peace
Centre proposed in the  JSCFADT  report  on  peacekeeping  also  tabled  in
December 1994.

6.73 The Committee recommends that:

   31.  THE AUSTRALIAN GOVERNMENT SUPPORT THE ESTABLISHMENT, AS OUTLINED IN
        THE ACFOA PROPOSAL TO THE INQUIRY INTO AUSTRALIA' EFFORT TO PROMOTE
        AND  PROTECT HUMAN RIHGTS, OF A HUMAN RIGHTS  CENTRE  FOR  DIALOGUE
        AND  COOPERATION  IN AUSTRALIA. THIS CENTRE MIGHT BE ESTABLISHED IN
        CONJUNCTION WITH THE PEACEKEEPING CENTRE.

Aid

6.74 The suspension of development assistance to Burma is a response to the
massacre of pro-democracy students in Burma in 1988 and the  usurpation  of
power by the SLORC after the 1990 election. The Government does not wish to
aid  the  regime  or  offer  its  legitimacy. The resumption of development
assistance is dependent on progress towards democracy and an improvement in
human rights.

6.75 AusAID informed the Committee that  the  acceptability  of  particular
programs  of  humanitarian  aid  was  dependent on 'the extent to which the
SLORC can take them over and use them to demonstrate international  support
[44]'.  They  told  the  Committee that they decide upon projects following
direct discussions with NGOs and UN organisations in Burma, on  the  border
and  in  Australia,  about the situation on the ground and to ascertain the
needs and wishes of the recipients.

6.76  The  total  allocation  to  Burma  is  1994-95  is  expected  to   be
approximately  $A3.4  million,  with most of those funds, approximately $A2
million, going to refugee assistance on the borders. The delivery  of  most
of  the Australian assistance money to border refugees is through the UNHCR
- $A1.5 million of the $A2 million. Other delivery  agencies  are  Medicins
sans Frontieres and the Burma Border Consortium. An allocation of $A410,000
has  been made to health programs for the Burmese in Thailand and $A404,000
has been allocated to allow students from Thailand and the border to  study
in  Australia. A further $A90,000 is granted to NGOs through the Australian
NGO Cooperation Program (ANCP) for projects along the Thai-Burma border.

6.77 In-country humanitarian programs for 1994-95  cover  health  programs,
maternal  and  child health - $A100,000 and HIV/AIDS  - $A200,000. This aid
is delivered by NGOs and UN agencies.  A  further  allocation  through  the
Australian NGO Cooperation Pragram (ANCP) of $A50,356 is devoted to similar
health  and humanitarian programs within Burma. Assistance in the form of a
professional officer is given to the United Nations  Drug  Control  Program
(UNDCP) [45].

6.78  Projects  are evaluated through regular written reports and financial
acquittals. AusAID officers visit projects  where  possible.  In  principle
they do not at this stage visit Burma itself.

6.79  The delivery of the humanitarian assistance through NGOs inside Burma
drew some criticism during the inquiry. The Australia-Burma Council opposed
any aid that depended on a memorandum of understanding with  the  SLORC  or
any  cooperation with SLORC officials as they said it was used by the SLORC
for their own purposes. They believed that there was no adequate  means  of
monitoring  what  was happening with the project and that corruption in the
system made the targeting of the  aid  difficult.  Medicines  did  not  get
through.  they  cited  the  case  of  a  hospital  supposedly supplied with
medicines by the World Health Organisation:

        [T]here are many problems concerning health programs  in  Burma.  I
        have  recently  been  to one hospital inside Burma right across the
        border from Thailand. The hospital is almost empty. One man  I  met
        was  in  the  contagious diseases ward. He told us there was no one
        caring for him and there was no medicine. ... [T]he hospital is one
        of the areas where aid has supposedly been sent [46].


        Table: AUSTRALIAN ACTIVITY IN BURMA (pp-102)
        (illegible to reproduce in this format )

6.80  They also believed that the intrusive nature of the regime meant that
SLORC supervision would limit the effectiveness  and  impartiality  of  the
delivery  of  the  assistance.  Finally they argued that Burmese opposition
groups themselves thought that the time was not yet right.

6.81 Australian NGOs involved in humanitarian aid to Burma disagreed.  They
saw  the  need  as  substantial:  there was exterme poverty; medicines were
scarece; the HIV/AIDS incidence had reached crisis proportions  [47].  They
belived that, despite many difficulies and frustrations, it was possible to
deliver humanitarian assistance with a reasonable degree of intefrity. This
included hard negotiations to insist that no direct financial aid be given,
only  medicines  and  they  warned  that  any  systematic stealing from the
program would result in its withdrawal. Tehy had experienced  a  less  than
five  per  cent loss rate. However they admitted the Government accompanied
their officers in the field and it was burdensome, that  negotiations  were
protracted and that discrepancies in the exchange rate created difficulties
for  the  delivery  of  assistance.  (See  Chapter  4,  paragraph  4.55 and
recommendation. )

6.82 The Committee recommends that:

    40. AS LONG AS THERE IS NO MOVE TO ESTABLISH A DIALOGUE WITH  AUNG  SAN
        SUU  KYI  AND  THE  NLD,  NO  BROADENING  OF  THE PROCEDURES OF THE
        NATIONAL CONVENTION, NO END TO FORCED LABOUR, NOR  THE  RELEASE  OF
        POLITICAL PRISONERS, THE AUSTRALIAN GOVERNMENT:
        (A)  CONTINUE TO DIRECT ITS ASSISTANCE PROGRAM TO THE PEOPLE ON THE
        BORDER; AND
        (B) CONSIDER AN INCREASE IN HEALTH AND SANITATION PROGRAMS FOR  THE
        PEOPLE IN THE CAMPS.

Footnotes:
---------
[40] Department of Foreign Affairs and Trade submission, p.S497.

[41]  All  the  information in this section is quoted from the DFAT Country
Economic Brief, op.cit. pp. 35-37.

[42] Letters were sent to: AGC Woodward-Clyde Pty Ltd,  Ericsson  Australia
Pty  Ltd,  Richard  Klinger  Pty  Ltd, C&C Diesel Engineering &Consultants,
Lloyds (P&O Maritime Services Pty Ltd),  Pacific  Arc  Exploration  NL,  PG
Airey  and  Associates,  BHP, Multiplex Constructions Pty Ltd, Blakers Pump
Engineers, Global Livestock Marketing Pty Ltd, Stockdale 90,  Stefani  Pure
Water  Australasia,  Modra Electric, Pacific Advance Madia, Kailis Brothers
and Transcom International.

[43] The views of Professor Fitzgerald and a number of  prominent  business
leaders  were  given  at a conference at the St James Ethics Centre and the
Centre for Philosophy  and  Public  Issues  on  19  April  1993.  Professor
Fitzgerald's  paper,  'Ethical  Dimensions  of  Australia's Engagement with
Asian Countries: Are there any ?' is  quoted  from  the  discussion  paper,
'Business  and Human Rights', 7 August 1995, prepared for Senator Bourne by
Mr Eric Sidoti.

[44] AusAID submission, p. S504.

[45] Evidence, 17 August 1995, p. 278.

[46] In-camera evidence, 5 May 1995, p. 35.

[47] The Committee was told that an estimated 400,000 people in  Burma  had
been infected with HIV/AIDS - approximately 1% of the population.

------------------------------------------------------------------------
Above materials are reproduction from the findings of Human Rights
Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence
and Trade of the Parliament of Australia, published in October 1995.
Anyone wishing to inquire about the book may contact Ms Margaret
Swieringa, Secretary, Human Rights Sub-Committee, Parliament House,
Canberra A.C.T. 2600, AUSTRALIA.
Best regards, U Ne Oo.
ENDS(6.59-6.82)\