Suzuki Motor Corp

[suriya@xxxxxxxxxxxx]

 TOKYO, Oct 13 (Reuters) - Suzuki Motor Corp said on Tuesday it will invest  
$10 million in a joint venture in Myanmar to start making cars and
motorcycles in  
January 1999. 

 Suzuki will own 70 percent of the venture, to be known as Myanmar Suzuki  
Motor Co, while Myanmar Automobile and Diesel Engine Industries, a
government entity, will own the  remaining 30 percent. 

 A Suzuki Motor spokesman played down any concerns about political risks or
international criticism  
related to the project, despite recent arrests of pro-democracy activists
in Myanmar that drew criticism   from the U.S. government and international
human rights organisations. 

 He noted that Suzuki, which has moved aggressively into emerging markets
with its expertise  
in making small, inexpensive vehicles, launched plans for operations in
India and Hungary when those  
countries were still under socialistic regimes. 

 "There may be some who would make political statements about our engaging
in local  
production, but our projects are strictly on a private-sector basis, and
are necessary for people's  
livelihoods and economic activity in those countries," he said. 

 Suzuki and the Myanmar government were scheduled to sign a contract later
on Tuesday.  

 The company plans to initially produce several hundred motorcycles and
automobiles per year, although   this will eventually be increased to
25,000 motorcycles and 3,000 cars. The automobiles will be  assembled from
parts imported from Japan and Southeast Asia, a Suzuki spokesman said. 

 Several other Japanese companies, including trade house Mitsubishi Corp
and electronics manufacturer Fujitsu Ltd,   earlier this year announced
plans for plants or projects in Myanmar. 

 In March, Japan ended a 10-year moratorium on soft government loans to
that country  
by extending a credit to the military-led regime for a new airport. 

 In contrast to Japan's policy of engagement, the United States has
maintained sanctions against  
Myanmar's military regime since May 1997, including a ban on new U.S.
investments in that  
country. 

 The United States has been seeking to step up pressure on Myanmar's
military regime  
since the recent detention of hundreds of members of the opposition
National League for Democracy.