AWSJ: U.S. May Tighten Economic Pre

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Subject: AWSJ: U.S. May Tighten Economic Pressure On Burma

(AWSJ): U.S. May Tighten Economic Pressure On Burma
 
     By Eduardo Lachica and Laurie Lande 
 
   WASHINGTON (AP-Dow Jones)--The U.S. has warned that it may tighten =
economic
pressure on Burma if the ruling military junta continues to harass and =
arrest
the followers of opposition leader Aung San Suu Kyi, reports Monday's =
Asian
Wall Street Journal. 
   The threat surfaced last week when a senior State Department official =
told
the Senate Banking Committee that the administration is willing to apply
certain 'discretionary sanctions' on Rangoon if necessary. 
   At the same time, the Clinton administration is reaching out to other
countries to see whether a concerted effort can be made to moderate Rango=
on's
behavior. 
   In a statement issued Saturday, White House press secretary Mike McCur=
ry said
a special envoy will be sent to 'consult with European, Asian and other =
friends
and allies on a coordinated response' to the widening crackdown on Burma'=
s
democratically elected opposition. 
   The White House indicated that it wanted to see how events unfolded =
over the
weekend before deciding on the details of the trip. The detentions, which=
 began
last week, were apparently aimed at disrupting a convention held by Suu =
Kyi's
National League of Democracy (NLD) on Sunday. 
   The number of arrests rose to 256 by Saturday. The meeting, the NLD's =
first
full party conference since it won national elections six years ago, was =
held
without further incident on Sunday. 
   It isn't clear at this point whether further unilateral U.S. action =
would
have any effect on the regime, or whether the European Union and Japan =
will be
sufficiently responsive to U.S. suggestions to a multilateral approach. =

   The U.S. already denies Burma export financing and loan guarantees =
and
routinely votes against World Bank and Asian Development Bank loans to =
that
country. But such restrictions haven't deterred U.S. companies, including
Texaco Inc. and Atlantic Richfield Co., from seeking to cash in on Burma'=
s rich
natural resources. 
   In Tokyo, Foreign Minister Yukihiko Ikeda on Friday urged Burma's regi=
me to
release all detainees in its custody and to refrain from jailing more =
of Suu
Kyi's followers. 
   However, Ikeda didn't raise the possibility of cutting off Japanese =
economic
assistance to Burma. Japan was one of the few countries to resume aid =
to Burma
after Suu Kyi was released from six years of house arrest last July; Toky=
o said
the recent flows are solely humanitarian in nature. 
   In Washington, Kent Wiedemann, deputy assistant secretary of state =
for East
Asian and Pacific affairs, told the Senate panel last week that the
administration wants to broaden its range of policy options. 
   Wiedeman said so in reference to the more narrow legislative proposal =
of
Senator Mitch McConnell, who has been a longtime advocate of sanctions =
against
Burma. 
   However, Suu Kyi, who previously has shied from seeking such intervent=
ion,
has said that she wouldn't oppose mandatory U.S. sanctions as drastic =
as those

proposed by the Kentucky Republican. 
   Among other things, the McConnell bill would ban U.S. nationals from
investing in Burma and virtually deny members of the ruling junta and =
their
families the right to visit the U.S. 
   McConnell, who heads the Senate panel that oversees foreign aid disbur=
sement,
has had impeccable timing this year. Just days after he announced he woul=
d try
to push his bill through Congress, news reports surfaced of the mass arre=
sts of
democracy advocates in Burma. 
   McConnell also has gotten Senator Alfonse D'Amato, a New York Republic=
an and
chairman of the Senate Banking committee, to co-sponsor the bill. 
   The legislation would put at risk an estimated $241 million of U.S. =
private
investment - most of it energy-related - according to 1994 Burmese govern=
ment
statistics. 
   (END) AP-DOW JONES NEWS 26-05-96
   0007GMT