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Asian firms bridge Burma gap. (r)



Although Asian firms are taking the place of Western consumer companies 
that withdraw from Burma, several journalists have expressed skepticism 
that Asian companies could take the place of the Western oil companies.

In addition, only a few months ago, it was widely believed that European 
companies would take the place of American firms withdrawing from Burma. 
Now, with the pull-outs by Carlsberg and Heineken, it is clear that Burma 
activists in Europe are rapidly matching the capability of their American 
allies.

There are already stirrings of activism in Asian countries, particularly 
Japan - potentially the largest investor in Burma. 

It would be unwise to assume that Asian activists will not quickly learn 
from their counterparts in Europe and America. 

Simon Billenness

On 26 Jul 1996 082903@xxxxxxxxxxxxxxxxxx wrote:

> From: Myo Aye <082903@xxxxxxxxxxxxxxxxxx>
> 
> 
> 
> 		Asian firms bridge Burma gap
> 		****************************
> 
> 	When Heineken NV recently announced it was withdrawing from a $30 
> million brewery investment in Burma, its Singapore partner said it would 
> take over the share of the Dutch brewer.
> 
> 	A couple of days later, Mr Thein Tun, one of Burma's wealthiest 
> businessman, said he was negotiating with Malaysia's Asia-Euro Brewery 
> Sdn Bhd to continue a separate brewer Carlsberg AS abandoned after months 
> of pro-tests by human rights activists.
> 
> 	As groups in the United States, Europe and Australia critical of 
> the Burmese military regime intensify pressure on companies and consumers 
> to boycott Burma, other firms - especially those from Asia - seem only 
> too happy to step into the breach.
> 
> 	A Western businessman "who frequently visits Burma said that if 
> companies from the US and Europe were forced out of Burma, "more Asian 
> companies will step in because they want to capitalise on the attractive 
> business opportunies there."
> 
> 	Since the Burmese armed forces seized power in 1988 and strated 
> to open the State-controlled economy to market forces, foreign investors 
> - including Australians - have committed over $US 3 billion ($3.8 
> billion_) to a range of projects there.
> 
> 	Heineken and Singapore-based food and beverage company Fraser and 
> Neave Pte are partners in Asia-Pacific Breweries Pte.
> 
> 	Through Asia_pPacific Breweries they had planned to take a 60 
> percent stake in a brewery they would build in Rangoon with Mynamar 
> Economic Holdings Pte, a public company which the Dutch brewer 
> acknowledged was effectively controlled by the Burmese military.
> 
> 	Now, Fraser and Neave will buy Heineken's equity in the Burma 
> projects for an undiscloded price.
> 
> 	Mr Simon Koh, an analyst in the Singapore office of brokers 
> Deutsche Morgan Grenfell, said the move should prove beneficial to Fraser 
> and Neavce's profitability in the long term because there were only two 
> foreign brewing licensees in Burma.
> 
> 	"There will be start-up costs, but in a few years' time Fraser 
> and Neave will have a larger (market) share," he said.
> 
> 	Burma, with its rich mineral, timber and fisheries resources, is 
> rated by some analysts and businessmen as a new frontier for development 
> in South-East Asia.
> 
> 	However, Western lawmakers are considering economic sanctions to 
> make the Burmese military ease political repression and talk seriously to 
> Ms Aung San Suu Kyi, the Nobel Peace prize laureate who heads the 
> opposition National League for Democracy.
> 
> 	She has called on foreign investors to withhold projects that 
> benefit and strengthen the State Law and Order Restoration Council junta, 
> rather than the people of Burma.
> 
> 	But Burma's ASEAN neighbours, as well as China and Japan - two 
> other key economic players in Burma - refuse to go along with puntitive 
> measures.
> 
> 	The ASEAN countries, China and, to a lesser extent, Japan, argue 
> that a policy of "constructive engagement", rather than isolation, is 
> likely to be more effective in bringing about economic and political 
> change in Burma.
> 
> 	Western human rights groups vehemently disagree.
> 
> 	Western activists aiming to make Burma "the South Africa of the 
> 90's" have now set their sights on multi-national oil comapanies with a 
> major presence in Burma, including Unocal, Texaco and Atlantic Richfield 
> of the US, and Total of France.
> 
> 	However, Ms Carol Scott, director of corporate communications at 
> Unocal's office in Singapore, said a shareholder proposal sponsored by 
> Burma activist groups that would have required the company to review its 
> international code of conduct was "defeated by over 95 per cent of our 
> shareholders" at Unocal's annual meeting in June.
> 
> 	Unocal and Total have a joint venture with Myanmar Oil and Gas 
> Enterprise, a Burmese State-owned firm, to develop a huge natural gas 
> project in the Gulf of Martaban, south of Rangoon, at a cost of $US 1 
> billion.
> 
> 	Starting in mid-1988, it will supply gas to Thailand by pipeline, 
> and eventually to Burma as well.
> 
> 	Texaco, in partnetship with Myanmar Oil and Gas as well as Nippon 
> Oil of Japan and Premier Oil of Britain, is developing Burma's 
> second-largest offshore gas field, also for sale to Thailand.
> 
> 	Ms Scott said that the joint venture in which Unocal was involved 
> had already apent about $US 2 million on :"self-sustaining social and 
> economic projects" in Burmese villages along the gas pipelineroute and 
> more spending on schools, health clinics, roads and beidges was planned.
> 
> 	"Isolating Burma from the US through sanctions will only hurt the 
> Burmese people," she said, adding that Unocal's involvement projects in 
> Asia in the past 30 years had "taught us that promoting prosperity 
> promotes a more open society".
> 
> [Micheal Richardson, Asia Editor, the International Herald Tribune, 27 
> July 1996].
> 
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