[Date Prev][Date Next][Thread Prev][Thread Next][Date Index ][Thread Index ]

AP: 05/21/97 Burma Investment Ban T



Subject: AP: 05/21/97 Burma Investment Ban Takes Effect

                      Burma Investment
                         Ban Takes Effect

                         Wednesday, May 21, 1997 6:08 am EDT

                         BANGKOK, Thailand (AP) -- A ban on new
                         U.S. investments in Burma took effect today,
                         just as a new crackdown on pro-democratic
                         activists by that nation's military rulers was
                         reported from Rangoon.

                         President Clinton's executive order starting the
                         sanctions was signed Tuesday in Washington.

                         The president announced the sanctions April 22
                         because of Burma's increased repression of its
                         democracy movement. Clinton also accused
                         Burma of being the world's leading producer of
                         opium and heroin.

                         The order, however, appears to allow U.S.
                         companies to continue a wide range of business
                         activities with Burma, including any actions they
                         need to implement an existing contract or to
                         exercise options signed before May 21.

                         The order also doesn't prohibit U.S. companies
                         from entering into or financing Burmese
                         contracts for the purchase or sale of goods,
                         services or technology.

                         However, U.S. companies cannot be paid for
                         such goods or services with shares of
                         ownership in or profits from any new
                         investment, according to the order.

                         Because of huge investments in the oil and gas
                         sector, companies from the United States rank
                         fourth in Burma by country of origin.

                         Several U.S. companies announced suspension
                         of activities in Burma after last month's
sanctions
                         announcement.

                         The oil company Unocal, the biggest foreign
                         investor in Burma, said it was giving up
                         developing two new natural gas fields because
                         of the sanctions.

                         Unocal is helping the Burmese government drill
                         for oil and natural gas and build a $1.2 billion
                         pipeline from the Yadana gas field in the
                         Andaman Sea to a power plant in Thailand.

                         Its activities in Burma have made it a major
                         target of political activists, especially on
college
                         campuses, who oppose the military regime and
                         support the country's pro-democracy
                         movement, led by Nobel Peace laureate Aung
                         San Suu Kyi.

                         Other U.S. companies apparently proceeded
                         with Burmese business deals even after the
                         sanctions announcement.

                         Last Friday, InterDigital Communications Corp.
                         of King of Prussia, Pa., signed a $250 million
                         digital wireless systems contract with Myanmar
                         Posts and Telecommunications, Burma's state
                         telephone company.

                         The signing was not reported by Burma's
                         state-owned press, and the U.S. Embassy in
                         Rangoon was unaware of it.

                            ? Copyright 1997 The Associated Press

                                     Back to the top