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Challenges of Diplomacy



                  Copyright 1997 The New York Times Company
                               The New York Times

                February  14, 1997, Friday, Late Edition - Final



HEADLINE: Challenges of Diplomacy;
Banning New Investment in  Myanmar

   The Clinton Administration may be nearing a decision point on  Myanmar,  the
Southeast Asian nation that has been deformed by a brutal military dictatorship.
When President Clinton's top foreign-policy advisers take up the issue today,
they should recommend activating a ban on new American investment in  Myanmar,
formerly known as  Burma.  It would be an excellent start for Mr. Clinton's new
team, and give Secretary of State Madeleine Albright evidence of American
resolve that will be useful in her visit to China in 10 days.

   The decision should not be difficult. Last July, Congress passed a bill
authorizing a ban on all new American investment if  Myanmar's  Government
harmed or rearrested the democracy leader Daw Aung San Suu Kyi or cracked down
on the democracy movement. The law, introduced to undercut a tougher sanctions
bill, was sponsored by Senator Dianne Feinstein, a Democrat, and William Cohen,
a Republican and now the Secretary of Defense. His enthusiasm for invoking the
sanctions is doubtful.

    Unhappily,  Myanmar  has met the conditions for the ban. Mrs. Aung San Suu
Kyi renewed her call for sanctions early this month when she criticized the
Government for the recent arrests of dozens of student activists. She was held
under house arrest in December. The State Department's new human rights report
says that severe repression increased last year.

   American officials also criticize  Myanmar's  regime for protecting major
opium traffickers, who run business empires and help sustain the financially
weak Government by buying state assets.

   Banning new investment should not impose a hardship on the American business
community. Unocal, which owns part of a gas pipeline that will provide the
 Myanmar  Government with a major source of hard currency, is already the
largest American investor in  Myanmar  and one of few companies increasing its

stake. Unocal recently paid the Government several million dollars for new
rights to explore offshore gas deposits.

   Unocal is the shameful exception. Pepsico has just joined a long list of
American and European companies pulling out. They are leaving to avoid bad
publicity and new laws in Massachusetts and several American cities barring
public contracts with companies that do business in  Myanmar.

   Secretary Albright and Bill Richardson, the new United Nations
representative, have both visited  Myanmar  and met with Mrs. Aung San Suu Kyi.
Their commitment to protecting human rights will seem empty if they and other
senior advisers fail to urge Mr. Clinton to take action against  Myanmar.

LANGUAGE: ENGLISH

LOAD-DATE: February 14, 1997