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CLINTON LETTER TO CONGRESS ON BURMA



Dear Netters,
                          The following file will be very informative and of
use,I trust.

Sincerely,


Julien Moe
--------------------------
FILE ID:97121005.EEA

DATE:12/10/97

TITLE:10-12-97  TEXT: CLINTON LETTER TO CONGRESS ON BURMA SANCTIONS


TEXT:

(SLORC has shown no willingness to cede its power)  (1740)


Washington -- President Clinton has told Congress that the situation

that led him to impose sanctions on investment in Burma continues to

exist.


The situation in Burma, he said, "continues to represent an

extraordinary and unusual threat to the national security, foreign

policy, and economy of the United States."


In a letter to Congress dated December 9, President Clinton said: "The

declaration of the national emergency with respect to Burma contained

in Executive Order 13047 in response to the large-scale repression of

the democratic opposition by the Government of Burma since September

30, 1996, reflected the belief that it is in the national security and

foreign policy interests of the United States to seek an end to abuses

of human rights in Burma, to support efforts to achieve democratic

reform that would promote regional peace and stability and to urge

effective counternarcotics policies."


"In the past six months," the president said, "the State Law and Order

Restoration Council (SLORC) has shown no sign of willingness to cede

its hold on absolute power. Since refusing to recognize the results of

the free and fair 1990 elections in which the National League for

Democracy won a vast majority of both the popular vote and the

parliamentary seats, the ruling junta has continued to refuse to

negotiate with pro-democracy forces and ethnic groups for a genuine

political settlement to allow a return to the rule of law and respect

for basic human rights. Burma has taken limited but insufficient steps

to counter narcotics production and trafficking."


"The net effect of U.S. and international measures to pressure the

SLORC to end its repression and move toward democratic government has

been a further decline in investor confidence in Burma and deeper

stagnation of the Burmese economy," the president said. "While Burma's

economic crisis is largely a result of the SLORC's own heavy-handed

mismanagement, the SLORC is unlikely to find a way out of the crisis

unless political developments permit an easing of international

pressure. I shall continue to exercise the powers at my disposal to

deal with these problems and will report periodically to the Congress

on significant developments."


Following is the official text of the letter:


(begin text)


THE WHITE HOUSE

Office of the Press Secretary


December 9, 1997


TEXT OF A LETTER FROM

THE PRESIDENT TO THE SPEAKER OF

THE HOUSE OF REPRESENTATIVES AND

THE PRESIDENT OF THE SENATE


Dear Mr. Speaker:  (Dear Mr. President:)


I hereby report to the Congress on developments concerning the

national emergency with respect to Burma that I declared in Executive

Order 13047 of May 20, 1997, pursuant to section 570 of the Foreign

Operations, Export Financing, and Related Programs Appropriations Act

(the "Act") and the International Emergency Economic Powers Act

(IEEPA). This report is submitted pursuant to section 204(c) of IEEPA,

50 U.S.C. 1703(c) and section 401(c) of the National Emergencies Act,

50 U.S.C. 1641(c). This report discusses only matters concerning the

national emergency with respect to Burma that was declared in

Executive Order 13047.


On May 20, 1997, I issued Executive Order 13047 (62 FR 28301, May 22,

1997), effective on May 21, 1997, to declare a national emergency with

respect to Burma and to prohibit new investment in Burma by United

States persons, except to the extent provided in regulations, orders,

directives, or licenses that may be issued in conformity with section

570 of the Act. The order also prohibits any approval or other

facilitation by a United States person, wherever located, of a

transaction by a foreign person where the transaction would constitute

new investment in Burma prohibited by the order if engaged in by a

United States person or within the United States. This action was

taken in response to the large-scale repression of the democratic

opposition by the Government of Burma since September 30, 1996. A copy

of the order was provided to the Congress on May 20, 1997.


By its terms, nothing in Executive Order 13047 is to be construed to

prohibit the entry into, performance of, or financing of a contract to

sell or purchase goods, services, or technology, except: (1) where the

entry into such contract on or after May 21, 1997, is for the general

supervision and guarantee of another person's performance of a

contract for the economic development of resources located in Burma;

or (2) where such contract provides for payment, in whole or in part,

in (i) shares of ownership, including an equity interest, in the

economic development of resources located in Burma; or (ii)

participation in royalties, earnings, or profits in the economic

development of resources located in Burma.


The prohibitions of Executive Order 13047 apply to United States

persons, defined to include U.S. citizens and permanent resident

aliens wherever they are located, entities organized under U.S. law

(including their foreign branches), and entities and individuals

actually located in the United States. The sanctions do not apply

directly to foreign subsidiaries of U.S. firms, although foreign

firms' activities may be affected by the restriction on United States

persons' facilitation of a foreign person's investment transactions in

Burma.


The term "new investment" means any of the following activities, if

such an activity is undertaken pursuant to an agreement, or pursuant

to the exercise of rights under such an agreement, that is entered

into with the Government of Burma, or a nongovernmental entity in

Burma, on or after May 21, 1997: (a) The entry into a contract that

includes the economic development of resources located in Burma; (b)

the entry into a contract providing for the general supervision and

guarantee of another person's performance of a contract that includes

the economic development of resources located in Burma; (c) the

purchase of a share of ownership, including an equity interest, in the

economic development of resources located in Burma; or (d) the entry

into a contract providing for the participation in royalties,

earnings, or profits in the economic development of resources located

in Burma, without regard to the form of participation.


Since the issuance of Executive Order 13047 on May 20, 1997, the

Department of the Treasury's Office of Foreign Assets Control (OFAC),

acting under authority delegated by the Secretary of the Treasury, has

implemented sanctions against Burma imposed by the order. During the

current six-month period, OFAC issued several determinations with

respect to transactions provided for by agreements and/or rights

pursuant to contracts entered into by United States persons prior to

May 21, 1997. One license was granted authorizing a United States

person's disinvestment in Burma, since this transaction necessarily

facilitated a foreign person's investment in Burma.


On May 21, 1997, OFAC disseminated details of this program to the

financial, securities, and international trade communities by both

electronic and conventional media. This included posting notices on

the Internet and on 10 computer bulletin boards and 2 fax-on-demand

services, and providing the material to the U.S. Embassy in Rangoon

for distribution to U.S. companies operating in Burma.


In addition, in early July, OFAC sent notification letters to

approximately 50 U.S. firms with operations in or ties to Burma

informing them of the restrictions on new investment. The letters

included copies of Executive Order 13047, provided clarification of

several technical issues, and urged firms to contact OFAC if they had

specific questions on the application of the Executive order to their

particular circumstances.


The expenses incurred by the Federal Government in the six-month

period from May 20 through November 19, 1997, that are directly

attributable to the exercise of powers and authorities conferred by

the declaration of a national emergency with respect to Burma are

estimated at approximately $300,000, most of which represent wage and

salary costs for Federal personnel. Personnel costs were largely

centered in the Department of the Treasury (particularly in the Office

of Foreign Assets Control, the Office of the Under Secretary for

Enforcement, and the Office of the General Counsel), and the

Department of State (particularly the Bureau of Economic and Business

Affairs, the Bureau of East Asian and Pacific Affairs, the Bureau of

Intelligence and Research, and the Office of the Legal Adviser).


The situation reviewed above continues to represent an extraordinary

and unusual threat to the national security, foreign policy, and

economy of the United States. The declaration of the national

emergency with respect to Burma contained in Executive Order 13047 in

response to the large-scale repression of the democratic opposition by

the Government of Burma since September 30, 1996, reflected the belief

that it is in the national security and foreign policy interests of

the United States to seek an end to abuses of human rights in Burma,

to support efforts to achieve democratic reform that would promote

regional peace and stability and to urge effective counternarcotics

policies.


In the past six months, the State Law and Order Restoration Council

(SLORC) has shown no sign of willingness to cede its hold on absolute

power. Since refusing to recognize the results of the free and fair

1990 elections in which the National League for Democracy won a vast

majority of both the popular vote and the parliamentary seats, the

ruling junta has continued to refuse to negotiate with pro-democracy

forces and ethnic groups for a genuine political settlement to allow a

return to the rule of law and respect for basic human rights. Burma

has taken limited but insufficient steps to counter narcotics

production and trafficking.


The net effect of U.S. and international measures to pressure the

SLORC to end its repression and move toward democratic government has

been a further decline in investor confidence in Burma and deeper

stagnation of the Burmese economy. Observers agree that the Burmese

economy appears to be further weakening and that the government has a

serious shortage of foreign exchange reserves with which to pay for

imports. While Burma's economic crisis is largely a result of the

SLORC's own heavy-handed mismanagement, the SLORC is unlikely to find

a way out of the crisis unless political developments permit an easing

of international pressure. I shall continue to exercise the powers at

my disposal to deal with these problems and will report periodically

to the Congress on significant developments.


Sincerely,


WILLIAM J. CLINTON