LONDON FOG CEASES BURMA MANUFACTURI

[dohrs@xxxxxxxxxxxxxxxx]

Subject: LONDON FOG CEASES BURMA MANUFACTURING

FREE BURMA COALITION
Ph: 608-256-6572
Fx:  608-263-9992
e-mail:  zni@xxxxxxxxxxxxxxxxx



LONDON FOG CEASES BURMA WORK,  JOINS GROWING LIST
MILITARY  JUNTA  IS  BAD  FOR  BUSINESS

FOR IMMEDIATE RELEASE:  AUGUST 5, 1996 NEW YORK, NY -- Another major
apparel firm has ceased operations in Burma.  London Fog Industries, a
$400 million manufacturer of outerwear, confirmed today that it will not
have garments in production there after this month.

London Fog, which also owns the Pacific Trail label, joins Liz Claiborne,
Eddie Bauer, Levi Strauss, Reebok, Oshkosh B'Gosh, Macy's and Columbia
Sportswear in shunning the military dictatorship, where a popular
democracy movement has asked businesses to stay away.  European brewers
Heineken and Carlsberg both pulled out last month in response to consumer
and union pressure, which was heightened by the unexplained death in
custody of Leo Nichols, Denmark=D5s Honorary Consul in Rangoon.

Burma's military junta, long condemned for its human rights abuses, is
under increasing economic strain.  Years of poor management, combined with
growing boycott and sanctions movements, are creating a financial squeeze.

In a State Department report released August 1, the Burmese military is
said to account for approximately 50% of government expenditures.  The
report cites declining spending on education and health services and
falling foreign investment inflows, soaring deficits and rampant inflation
as reasons to doubt Burma=D5s economic stability.  The generals appear to b=
e
using drug money to keep the economy afloat.

Limited sanctions passed the US Senate in July, as tough sanctions were
narrowly defeated.  According to a European Union representative, the EU
is likely to revoke Burma's GSP privileges after the release in September
of a report on charges of military use of forced labor.  The State
Department report estimates that unpaid labor amounts to 3% of GDP.  World
Bank, IMF and ADB funds, along with Japanese aid, await signs of
democratization, counternarcotics efforts, and respect for basic human
rights.

The military remains locked in a stalemate with Nobel Peace Laureate Aung
San Suu Kyi=D5s National League for Democracy (NLD), which won 82% in 1990
elections that were voided by the regime.

This week another death in custody again has raised international concern:
Hla Than, an elected NLD MP, died while serving a 25 year sentence for
having attended an illegal meeting.  Rangoon-based diplomats blame harsh
prison conditions for his death, and express concern over the fate of
other political prisoners, including some of Aung San Suu Kyi's closest
associates.

UNOCAL, Total, Texaco, ARCO, Pepsi and Mitsui remain active in Burma.
Pepsi's Burmese bottler Thein Tun is an outspoken critic of the democracy
movement.

   Contact:  Dr. Thaung Htun, National Coalition Government of the Union
of Burma, 202-393-7342
Stewart Fisher, London Fog Industries, 212-790-3000
US State Department Burma Desk, 202-647-7108