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CLINTON LETTER TO CONGRESS ON BURMA
- Subject: CLINTON LETTER TO CONGRESS ON BURMA
- From: moe@xxxxxxxxxxxxx
- Date: Mon, 15 Dec 1997 16:26:00
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