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Court Reviews Mass. Myanmar Law

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      Court Reviews Mass. Myanmar Law
      By LAURIE ASSEO Associated Press Writer=20

      WASHINGTON (AP) - The Supreme Court agreed Monday to decide =
whether state and local governments can apply a moral standard to =
spending decisions by restricting purchases from companies that do =
business in countries with human-rights abuses.=20

      The justices said they will use a Massachusetts case to decide =
whether such policies interfere with the federal government's authority =
to conduct foreign policy.=20

      A lower court threw out a Massachusetts law that limited state =
purchases from companies that do business with Myanmar, formerly known =
as Burma.=20

      A number of state and local governments have similar restrictions =
aimed at companies active in Myanmar and other countries, including =
China and Cuba. During the 1980s, many states and cities boycotted =
companies that did business in South Africa because of racial apartheid =
in that country.=20

      ``Nothing in our federal Constitution denies to the states the =
right to apply a moral standard to their spending decisions,'' =
Massachusetts' appeal to the Supreme Court said. ``Not one =
constitutional grant, prohibition or command requires the states to =
trade with dictators.''=20

      Massachusetts' 1996 law generally barred the state from buying =
goods and services from companies doing business with Myanmar unless =
there is no other comparable bid. In effect, the law meant that a =
company doing business with Myanmar could sell goods to Massachusetts =
only if its bid was 10 percent lower than all other bids.=20

      The law made exceptions for purchases of some medical devices, for =
news-gathering companies, and for international telecommunications =
companies.=20

      Several months after the Massachusetts law was enacted, Congress =
imposed its own sanctions on Myanmar. Invoking the law, President =
Clinton in 1997 barred new U.S. investment in that country.=20

      The National Foreign Trade Council, which represents companies =
involved in foreign trade, challenged the Massachusetts law in 1998. A =
federal judge ruled for the council, striking down the law as =
unconstitutional.=20

      The 1st U.S. Circuit Court of Appeals upheld that ruling, and also =
said the law was pre-empted by the federal sanctions.=20

      The state's appeal was supported in a friend-of-the-court brief =
submitted jointly by 14 other states: Arkansas, California, Louisiana, =
Maryland, Minnesota, Missouri, New Hampshire, New Mexico, North Dakota, =
Oklahoma, Oregon, Rhode Island, Utah and Washington.=20

      The trade council's lawyers did not object to Supreme Court review =
but said exclusive federal control is ``the only sensible approach'' to =
foreign policy. ``Fifty different foreign-trade policies would create =
significantly higher barriers to trade generally,'' they said.=20

      The U.S. Chamber of Commerce and other business groups backed the =
trade council in friend-of-the-court briefs.=20
    =20

    =20


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      <H2>Court Reviews Mass. Myanmar Law</H2><!-- TextStart -->
      <P><FONT size=3D-1><I>By LAURIE ASSEO Associated Press Writer =
</I></FONT>
      <P>WASHINGTON (AP) - The Supreme Court agreed Monday to decide =
whether=20
      state and local governments can apply a moral standard to spending =

      decisions by restricting purchases from companies that do business =
in=20
      countries with human-rights abuses.=20
      <P>The justices said they will use a Massachusetts case to decide =
whether=20
      such policies interfere with the federal government's authority to =
conduct=20
      foreign policy.=20
      <P>A lower court threw out a Massachusetts law that limited state=20
      purchases from companies that do business with Myanmar, formerly =
known as=20
      Burma.=20
      <P>A number of state and local governments have similar =
restrictions aimed=20
      at companies active in Myanmar and other countries, including =
China and=20
      Cuba. During the 1980s, many states and cities boycotted companies =
that=20
      did business in South Africa because of racial apartheid in that =
country.=20
      <P>``Nothing in our federal Constitution denies to the states the =
right to=20
      apply a moral standard to their spending decisions,'' =
Massachusetts'=20
      appeal to the Supreme Court said. ``Not one constitutional grant,=20
      prohibition or command requires the states to trade with =
dictators.''=20
      <P>Massachusetts' 1996 law generally barred the state from buying =
goods=20
      and services from companies doing business with Myanmar unless =
there is no=20
      other comparable bid. In effect, the law meant that a company =
doing=20
      business with Myanmar could sell goods to Massachusetts only if =
its bid=20
      was 10 percent lower than all other bids.=20
      <P>The law made exceptions for purchases of some medical devices, =
for=20
      news-gathering companies, and for international telecommunications =

      companies.=20
      <P>Several months after the Massachusetts law was enacted, =
Congress=20
      imposed its own sanctions on Myanmar. Invoking the law, President =
Clinton=20
      in 1997 barred new U.S. investment in that country.=20
      <P>The National Foreign Trade Council, which represents companies =
involved=20
      in foreign trade, challenged the Massachusetts law in 1998. A =
federal=20
      judge ruled for the council, striking down the law as =
unconstitutional.=20
      <P>The 1st U.S. Circuit Court of Appeals upheld that ruling, and =
also said=20
      the law was pre-empted by the federal sanctions.=20
      <P>The state's appeal was supported in a friend-of-the-court brief =

      submitted jointly by 14 other states: Arkansas, California, =
Louisiana,=20
      Maryland, Minnesota, Missouri, New Hampshire, New Mexico, North =
Dakota,=20
      Oklahoma, Oregon, Rhode Island, Utah and Washington.=20
      <P>The trade council's lawyers did not object to Supreme Court =
review but=20
      said exclusive federal control is ``the only sensible approach'' =
to=20
      foreign policy. ``Fifty different foreign-trade policies would =
create=20
      significantly higher barriers to trade generally,'' they said.=20
      <P>The U.S. Chamber of Commerce and other business groups backed =
the trade=20
      council in friend-of-the-court briefs. <!-- TextEnd =
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