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AP: 05/21/97 Burma Investment Ban T
- Subject: AP: 05/21/97 Burma Investment Ban T
- From: Winston_Lee@xxxxxxx
- Date: Wed, 21 May 1997 06:43:00
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
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