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HEADLINE -------------------------------------------------------------------------------- LA Times - Uphold Human Rights Amid Globalization Bussiness Recorder - Myanmar interested in
tractor production
SCMP - Officials rake in marriage
fees
India Times - Myanmar opposition sues military chief Asia Gateway - The Internal Chess Game in Rangoon and the Pakistan-India- China Tango Bkk Post - Case against Payungsak solid, say
police
Bkk Post - Penalise factories, says Sant The Nation - EU to review strategic policies concerning Asia
The Nation - Burma gets nod Los Angeles Times - July 8,
2000.
Uphold Human Rights Amid
Globalization
Myanmar: Courts should prevent firms from profiting from forced labor in a WTO member-nation. By HARRY WU
After passage by Congress of permanent normal trade relations for China, it
is important to focus on realistic prospects for developing mechanisms to
enforce human rights in China and other nations that have yet to show respect
for the rule of law.
One option to be disregarded immediately is that World Trade Organization membership itself will facilitate China's adherence to human rights principles. For example, China's neighbor, Myanmar (formerly Burma, renamed by the military regime), continues its onslaught on human rights undeterred by its membership in the WTO. There is nothing in the organization's charter to incorporate universally accepted human rights principles into the rules of trade. Thus, even the systematic use of forced labor that is common practice in China and Myanmar does not currently violate the WTO's rules. The lawsuit over Unocal's alleged actions in Myanmar is a test case for using the courts to enforce human rights. In 1996, a group of refugees from Myanmar filed a landmark case in U.S. federal court detailing their stories of being forced by Myanmar's military regime to work on a gas pipeline. The refugees named Southern California-based Unocal Corp. as the defendant, asserting that Unocal's partnership with the brutal regime made it liable for forced labor and torture endured by the plaintiffs, who alleged they were ordered at gunpoint to build infrastructure for the pipeline and to act as porters for the military security patrols protecting the pipeline. Unocal denies any responsibility for any injuries the plaintiffs may have suffered. Based on the Alien Tort Claims Act, a U.S. law that permits aliens to sue for violations of the "law of nations," the court denied Unocal's motion to dismiss and permitted the plaintiffs to conduct discovery and gather evidence from Unocal. This case is still being litigated. A hearing on a motion for a summary judgment, which, if granted, would dismiss the case, is set for Monday in Los Angeles before U.S. District Judge Ronald S.W. Lew. Attorneys for the plaintiffs have submitted a mountain of evidence that I believe provides credible support for their key allegation that Unocal knew, or should have known, that the military regime in Myanmar would use forced labor if given any role in the construction of Unocal's pipeline. The fundamental issue here, however, goes beyond the alleged actions of one corporation. If the court finds for the plaintiffs and holds that there is sufficient evidence to proceed to trial, this would create a much-needed process for adjudicating claims that American companies operating abroad may have violated the basic human rights principles prohibiting slavery and torture. More positively, the Unocal case embodies the potential for demonstrating, by example, that human rights principles transcend economic interests. If the rule of law means something, then the farmers and fishermen of Myanmar who allege that they have endured the brutality of Unocal and its partners should be able to approach the law on equal footing with the corporation. So far, there are virtually no human rights protections included in the rules that govern the global economy. That must change. - - -
Harry Wu Is Executive Director of the Laogai Research Foundation, a
Washington-based Human Rights Organization That Documents Abuses in China. he
Spent 19 Years in China's Forced Labor Camps for Criticizing Chinese Communist
Party Policy
Bussiness Rcorder - July 8, 2000.
Myanmar interested in tractor
production
RECORDER REPORT LAHORE (July 8) : The Minister of State, Peace and Development Council of
Myanmar, Lieutenant General, Khin Nyunt, has showed keen interest in
manufacturing of tractors for his country in collaboration with the Millat
Tractors Limited, Pakistan.
He expressed this keenness during his visit to the Millat Tractors Limited,
here on Friday along with an 11 members delegation. He was received by Sikandar
M. Khan, Chairman/Chief Executive of Millat Tractors Limited.
The delegation was briefed by Sikandar Khan about the company. He informed
the delegation that the Millat Tractors was established in 1964 in the private
sector and later on it was nationalised. It was again de-nationalised in 1992.
The employees of the institution acquired 51 percent shares from the government
of Pakistan and took over the Management of the Company as Employees Welfare
Trust.
The delegation was apprised that Millat Tractors is engaged in
manufacturing/assembling of Massey Ferguson tractors in collaboration with
Massey Ferguson Limited and M/s Perkins Limited of UK. At present 85 percent
(value wise) components of tractors are being manufactured in Pakistan, which is
the highest in the automobile sector in Pakistan under indigenised programme and
thus saving a lot of foreign exchange.
In addition to that Millat Tractors is producing generating sets of 25 KVA,
15 KVA with diesel engine, prime movers and fork- lift trucks. In the last
financial year, the Company has sold 16,200 record sale of Massey Ferguson
Tractors to the farmers of the country.
Millat Tractors Limited has recently entered into an agreement with
''SAMSUNG'' Commercial Vehicle Company Limited (SCV) of South Korea to produce
1.25 ton capacity light commercial vehicle.
This vehicle would also be progressively manufactured in the Company and
will be marketed in the month of January 2001.
The delegation visited Engine Assembly Plant, Machining Plant and Tractor
Assembly Plant of Millat Tractors and witnessed manufacturing/assembling process
in these plants. The delegation also visited the Quality Control Gauge
Laboratory which provides high quality check of tractors components before use
in the tractor.
Head of the Myanmar delegation, Khin Nyunt, showed immense pleasure and happiness on his visit to the factory. South China Morning Post
Saturday, July 8, 2000 BURMA Officials rake in marriage
fees
GRETCHEN PETERS in Bangkok Impoverished Rohingya Muslims in Burma's isolated northwest state of Arakan
are being forced to pay authorities outrageously high fees to marry in what
opposition activists call a campaign to reduce the persecuted minority
population.
"This is an effort to squeeze money from them and also to stem the population growth of the Muslim community in Burma," the head of the Muslim Liberation Organisation of Burma, U Kyaw Hla, said on Thursday. In its monthly newsletter, the Arakan Rohingya National Organisation said
new policies enforced last month require guardians of both the bride and groom
to pay 200,000 kyat (HK$4,500) for a marriage licence. In addition, they must
provide authorities with 500 litres of kerosene, a costly commodity in Arakan,
where most homes do not have electricity and poor road transport limits the flow
of basic goods.
The report said the "torturous" fees deprived many poor Muslims of the
right to marriage. In the past, marriage fees were a more manageable 3,000 kyat.
The price increase "causes extreme difficulties and problems [for] the
Rohingyas", the report said.
Some families arrange weddings secretly, but face imprisonment and torture
if caught, Mr U Kyaw Hla said.
Arakan, which sits on the border of Bangladesh, is one of the poorest parts
of destitute Burma and home to about one million Rohingya Muslims.
The ruling military junta does not recognise the Rohingya as citizens,
since many migrated to the area during the British colonial era from the Indian
subcontinent. Denied access to education, health care and virtually confined to
their villages, 90 per cent of Rohingya are illiterate and most are unemployed.
Unpaid forced labour, mainly porterage, is widespread in the state, where
there is a huge presence of junta troops, human rights groups say. The rape of
Rohingya women by non-Muslim Burmese soldiers is also claimed to be common.
Following a 1991 military crackdown in the state, more than 260,000
Rohingya fled over the border. Despite repatriation efforts by the United
Nations High Commissioner for Refugees, 20,000 still live in camps inside
Bangladesh, where they also face intense persecution.
A report by the International Federation of Human Rights Leagues, published
last April, charged that Burmese authorities regularly allow small numbers of
Rohingya to sneak over the heavily-mined border in the hope that authorities in
Dhaka will not wake up to the "invisible exodus" taking place.
While it is nearly impossible to calculate the numbers leaving, studies
suggest that thousands are Rohingya women smuggled across the border and sold
into sex slavery, mainly in India and Pakistan.
"From there many are sold on to brothels in the Arab states," Mr U Kyaw Hla
said. The mass export of women of child-bearing age represented another method
of decimating the Rohingya population inside Burma.
A study by the Chiang Mai-based non-government agency, Images Asia, last
November reported that Rohingya women were being sold in Karachi, the southern
Pakistani port city, for up to US$2,400 (HK$18,700), depending on age, beauty
and virginity.
Pimps interviewed by the aid group earned about US$215 for each woman sold,
with each claiming to make more than 100 "sales" a month.
India Times - July 8, 2000.
Myanmar opposition sues military chief YANGON, Myanmar: The opposition National League for Democracy is suing
Myanmar's military leader for harassment of party members and failing to honour
its election victory, the NLD said on Friday.
The suit filed on Tuesday targets the chairman of Myanmar's Election
Commission, Ba Htay, and the chief of the ruling military council, Senior Gen.
Than Shwe, accusing them of failing to keep "election promises" and violating
electoral law.
The NLD, led by Nobel Peace laureate Aung San Suu Kyi, swept general
elections in 1990, but the military which has ruled since 1962 refused to
convene Parliament. Hundreds of NLD members have been arrested and many languish
in prison after summary sentencing. Myanmar is also known as Burma.
The NLD filed a complaint last year against top government officials,
including the regime's third-ranking general and intelligence chief Lt. Gen.
Khin Nyunt, for "illegal detention of NLD members and for allowing anti-NLD
rallies".
The Supreme Court rejected the case in October for lack of evidence. The
NLD appealed to the Supreme Court in February but the appeal was rejected on May
4 on the same grounds. (AP)
Asia Gateway - Press
Release
The Internal Chess Game in Rangoon
and the
Pakistan-India- China Tango July 8, 2000 Below is a news item from MIZZAMA NEWS GROUP, containing exerpts from
interviews with two top Indian analysts specializing on Burma-India
relation.
The interviews are most insightful via-a-vis Indian policy towards Burma
or, to put it more correctly, the military junta which, incidentally, does not
represent the people of Burma, and therefore cannot represent Burma.
India's Burma policy can, at best, be described as fingers crossed, hoping
for the best policy. Some might say it is extremely wishy-washy.
India, it is claimed by the interviewees, knows that the junta is
hand-in-glove with India's enemy, Pakistan and China and is engaged in, among
other things, supplying arms to rebel groups in Northeast India. India's
strategic response therefore is to cozy up to the junta in the hope that somehow
the junta will cease and desist from doing what it has, as
alleged, been doing all along: subverting India security and sovereignty. What is interesting about General Khin Nyunt's visit to Pakistan is that
this trip follows General Maung Aye's and Tin U's visit to China. China has
until then been Khin Nyunt's turf. And India has been Maung Aye's turf. It
therefore might make some sense to see Khin Nyunt's Pakistan visit as having
more to do with the juntaâ?Ts internal chess game, than with weighty
political-strategic considerations.
Khin Nyunt has been losing ground to Maung Aye and his faction, beginning
from the siege on the Burmese Embassy in Bangkok by a band of anti-junta Burmese
activists linked to the Karen mystic God's Army. The siege was a slap in the
face for Khin Nyunt and his military intelligence (MI) camp, and most likely
emboldened Maung Aye to launch his power-play to dislodge Khin Nyunt and the MI
camp.
Following the embassy siege, Khin Nyunt's appointees on the trade and
economic committees were replaced by Maung Aye's men. And in addition to dealing
with the Chinese (thereby poaching on Khin Nyunt's turf), Maung Aye has been
busy touring Shan State. He has been active in forming up new militia units to
counter the influence of the ceasefire armies, in particular the Wa army, which
have had very close relation with Khin Nyunt and his MI camp.
On the surface, it does seem that Khin Nyunt and the MI camp are losing the
internal chess-game. With General Than Shwe reportedly in bad health, the buffer
factor the stabilizing wheel -- in the politics of military factions is in
danger of disappearing.
And the power-play launched by Maung Aye and his faction against Khin Nyunt
seems to indicate that the "Old Man" General Ne Wn has become irrelevant
owing, probably, to rapid physical decline. It might in this regard be noted
that there were rumours of Ne Win's death in early April of this year.
The battle in Rangoon's inner circle among the ruling generals is
intriguing in that it is, among others, a war between those with brawn and not
much brains, and elements that possess a lot of brain and craftiness but not
much brawn.
As intriguing would be the reaction or response of the opposition forces,
especially Daw Aung San Suukyi, to the military's internal chess game and Maung
Ayeâ?Ts power-play.
Will she cheer for Maung Aye and faction on the assumption that he will, as
a simple soldier, be easier to deal with than the crafty Khin Nyunt. It is
reported that Khin Nyunt is not popular with the NLD (National League
for
Democracy) crowd, especially with former generals like Tin Oo and Aung Shwe, who have blamed the MI for their fall from grace with General Ne Win many years ago. Although it is likely that the NLD might favor Maung Aye, the question is
whether Maung Aye looks upon the NLD and the opposition with a kinder eye. It
might be that having displaced Khin Nyunt and the MI camp, Maung Aye might
emerge as the new Number One, thus restoring the military's political cohesion,
and thereby ensuring the junta's life for a few more decades.
It does seem for now that the crisis of leadership which has been troubling
the military, and weakening it political cohesion, is about to be resolved. The
likely winner and the new Number One, it appears at this point in time, is Maung
Aye. It remains to be seen whether a simple soldier will be easier to deal with,
as hoped for or expected by some opposition element, than the crafty and rather
sophisticated Khin Nyunt.
Vanc-X26
Analytica Birmanie (Shan-EU Editor's Note: Mizzima's reports on the two interviews with top
Indian analysts could be found in Shan-EU News July 6, 2000 issue)
Asiagateway
Starving Them Out
Forced Relocations, Killings and the Systematic Starvation of Villagers in Dooplaya District July 8, 2000 In early 1997, the State Law & Order Restoration Council (SLORC) military junta ruling Burma mounted a major offensive against the Karen National Union (KNU) and succeeded in capturing and occupying most of Dooplaya District, a region of thousands of square kilometres in central Karen State which had largely been under KNU control until that time. Tens of thousands of villagers tried to flee to Thailand but most were trapped inside the district by rapidly advancing SLORC columns. The SLORC troops immediately began interrogating, harassing and even terrorising villagers in order to consolidate their hold on the region, but there were also signs that the regime, confident of its total control, might try to soften its abuses and bring some small-scale 'development' to parts of the district to keep the villagers from attempting to flee. In late 1997 the regime changed its name to the State Peace & Development Council (SPDC), but with no change in policies or tactics. The regime demanded complete and total submission of the villagers to its every demand, however, and the villagers found it impossible to comply. Throughout 1998 and 1999, the SPDC Army reverted to its habitual activities, sporadically relocating and destroying villages, demanding forced labour, food and extortion money, and torturing or killing any villagers who failed to obey its demands. The Karen National Liberation Army (KNLA) regrouped and carried out guerrilla operations with the sympathy of the villagers, and the SPDC sent in more troops to consolidate its control, which only worsened the abuses against the civilians. Since late 1999 the SPDC forces throughout Dooplaya district have begun a much more systematic campaign to bring the villagers under direct Army control in order to undermine the KNLA resistance. The incidences of arbitrary detention, torture and killings have suddenly risen, and the Army has been ordering village farmers to move into the centre of their villages and never to leave without permission. In Kya In township, the SPDC Army held a meeting in November 1999 at which they ordered all villages to hand over the entire year's rice harvest to the Army, so that it could be held in Army storage bins and handed back out to the villagers one meal at a time. The harvest was to behanded over by December 20th, after which most of the villages were to be forcibly relocated to garrison villages by December 25th 1999. The result has been widespread starvation, with villagers throughout much of central Dooplaya district living on foraged taro roots and jungle vegetables. Many have had no choice but to abandon their rice in the fields or in the hands of the Army and flee forced relocation to hide in the forest, where the SPDC officers have promised to shoot them if they are found. Some have made it across the border into Thailand, where a very uncertain reception awaits them. This report is based on interviews with villagers, refugees and the internally displaced conducted between January 1999 and January 2000 by Karen Human Rights Group researchers in the field, and by the field reports they have compiled (with the exception of Interview #39, for which we would like to thank the Federated Trade Unions of Burma - Dooplaya). Well over fifty interviews were conducted and translated, and 39 of these were selected for direct use in compiling this report while the remainder were used for additional corroboration and information. An Annex to this report containing the full text of all interviews which were directly used is available online (follow the link from the table of contents) or from KHRG upon approved request. An Independent Report by the Karen Human Rights Group Bangkok Post - July 8,
2000.
AMMUNITION THEFT
Case against Payungsak solid, say
police
Bank slips link him to arrested suspect Police said yesterday they have sufficient evidence to charge Payungsak
Yodbangtoey with stealing and trading in ammunition believed destined for
anti-Rangoon rebels.
The younger brother of Maj-Gen Intharat, the influential senator-elect from
Chiang Mai, denies the charges but has been refused bail and is in the custody
of Bangkok police.
Mr Payungsak was arrested in Chiang Mai and brought to Bangkok on Thursday
night by police investigating the June 28 attempt to steal M-16 assault rifle
rounds from the Police Ordnance Division on Sethsiri road.
Guards foiled the theft and recovered 11 boxes containing 21,321 rounds in
a pick-up truck abandoned in the compound by the thieves.
Investigators later arrested Pol Sgt-Maj Chalerm Banchongplian and Pol
L/Cpl Sakren Akkapol, of the ordnance division. Their information led to the
arrest of retired Pol Sgt-Maj Yoswat Ruangsri and retired W/O Peerasak Netsuwan,
who said Mr Payungsak was to pay them five baht per round.
On June 30, five Shan were arrested in Chiang Mai for suspected
involvement.
Mr Payungsak, who was being questioned at Dusit police station, was taken
to the Criminal Court, which agreed to his detention until July 18.
The building contractor said he did not know the other suspects and was
concerned the case would damage the reputation of his influential brother. He
said he was suffering from diabetes.
A police source said investigators had found a bank pay-in slip showing Mr
Payungsak transferred 30,000 baht to W/O Peerasak. Mr Payungsak, he said, had
links to the Shan State Army and had carried out building projects for the
United Wa State Army at its drugs-funded Mong Yawn township opposite Chiang
Mai.
A search of Mr Payungsak's home on the Ratchapruek estate in Chiang Mai
turned up several transfer slips.
Pol Lt-Gen Wannarat Kotcharak, city police chief, said Pol Maj-Gen Chakthip
Kunchorn na Ayutthaya, his assistant, was handling the case.
Pol Gen Pornsak Durongkawiboon, the national police chief, said there was
strong evidence against Mr Payungsak. His relationship to Maj-Gen Intharat would
have no bearing on the case.
Maj-Gen Intharat said his brother, whom he described as a money-lender and
contractor, had contacted him on Thursday night. The influential officer denied
any link with the case and said he would not interfere in any way.
The senator-elect reportedly met Khamnuan Chalopatham, a senator-elect from
Sing Buri and a lawyer, in a room at parliament yesterday.
In a related development, five policemen suspected of involvement in the
theft were transferred to inactive posts from the ordnance division.
Pol Col Wanchai Kerdpithak, Pol Capt Chakphol Khampu, Police W/O Anusorn
Ratchatawan, Pol W/O Suchai Wisuthiphaet and Pol W/O Wikul Longlom were moved to
the Aviation Division.
Bangkok Post - July 8,
2000.
LABOUR
Penalise factories, says
Sant
Supamart Kasem Pol Gen Sant Sarutanon, deputy national police chief, has ordered his
subordinates to take tough legal action against the operators of seven garment
factories in Tak charged with employing illegal foreign labour.
He was in Tak on Thursday to inspect the repatriation of nearly 4,000
illegal Burmese workers rounded up from the seven factories in Mae Sot district
on Wednesday.
Pol Gen Sant said the factory operators deserved harsh punishment and
warned his subordinates not to try to help the operators by preparing weak cases
against them.
He gave the warning after being told the prosecution had dismissed police
cases against three of 50 Mae Sot factory operators arrested in November last
year for employing illegal foreign labour.
Pol Gen Sant said more than one million illegal aliens, including some
300,000 children, were causing social problems for Thailand.
The on-going crackdown on illegal foreign labourers, including those who
sneaked out of refugees camps, would continue until all of them could be
repatriated, he added.
A total of 3,745 illegal Burmese workers were rounded up in Mae Sot on
Wednesday. They were repatriated on Thursday along with some 200 other Burmese
arrested earlier in Bangkok and other provinces.
Pol Maj-Gen Chanvut Vajrabukka, deputy immigration police chief, said the
cabinet had allocated 40 million baht to fund the suppression of illegal foreign
labour.
Mae Sot presented the biggest problem since it had the highest number of
illegal foreign workers. The border district was also a major point of entry for
illegal migrants, Pol Maj-Gen Chanvut said.
The immigration police plan to repatriate 150,000 illegal aliens this year.
So far, 100,000 have been sent back.
Pol Maj-Gen Chanvut conceded about one-fifth of those repatriated would
sneak back into Thailand.
He claimed some factory operators were raising a fund of 10 million baht to
get him out of the way "by any means".
He added the Foreign Ministry had sought co-operation from the Burmese
embassy in repatriating Burmese nationals. However, the ministry was told that
Burma did not want to take its people back officially, since that would force
Burmese authorities to charge them with illegal emigration.
The Nation - July 8, 2000.
EU to review strategic policies concerning Asia BY KAVI CHONGKITTAVORN
STRASBOURG, France - The European Union is reviewing its 1994 strategic
policy towards Asia to set up new agendas to strengthen EU-Asia cooperation and
reflect the changes that have taken place in the second half of the last decade.
In an exclusive interview on Wednesday with a group of Asian journalists at
the Council of Europe, Chris Patten, the EU's External Relations Commissioner,
said he would consult senior Asian officials during the Asean meeting in Bangkok
later this month and at the Asia-Europe Meeting (Asem) in October in Seoul.
Patten, the former governor of Hong Kong, said that the 1994 EU strategy on
Asia was a useful document to guide the overall relations.
"But it needs to be reviewed in the light of the tremendous changes that
have taken place in the region," he said.
The review is expected to be completed some time next year.
He said Asia was economically recovering and had gone through democratic
consolidation over the past few years, which would help strengthen EU-Asia
relations.
The 1994 Asian policy focused on the political and economic cooperation
with Asia and sustainable development within the region, he said.
Over the past three years, Burma's political oppression and violation of
human rights has become the main obstacle to improving Asean-EU ties. The EU
still refuses to let Rangoon sign the EU-Asean economic framework agreement
because of the latter's dismal human-rights record. Both sides agreed to hold a
ministerial meeting in Laos later this year, after a two-year delay. The EU
still operates sanctions against Burma and applies visa restrictions on senior
Burmese junta leaders.
Looking to the future, Patten outlined three important issues concerning
EU-Asian relations, to further political and economic dialogue, to increase
educational exchanges and to improve consumer dialogue between the two groups.
He said Europe and Asia should increase political and security cooperation
in new areas, including international crime and terrorism, stemming the
proliferation of nuclear weapons, among other things.
Both continents over the next 10 years must also improve educational
exchanges through various scholarship programmes, he said.
On consumer dialogue, the commissioner said that both sides needed to learn
more from each other as well as understand the spirit of competition and
consumer behaviour in Asia and Europe.
Under the French presidency that started on July 1, Patten said, the EU
will highlight its relations with Asia and look at future cooperation.
There are numerous summit meetings coming up to increase dialogue,
including EU-China, EU-Japan and the third Asem summit.
The Nation - July 8, 2000.
Burma gets nod THE European Union has agreed to allow Burma to attend the Asean-European
Union Ministerial meeting, clearing the way for the long-stalled meeting and
ending a dispute that has affected Asean-EU relations since 1997, Foreign
Minister Surin Pitsuwan says.
He said the agreement had been reached in Cascais, Portugal during a
meeting of the Asean-EU joint cooperation committee on June 26.
Describing the agreement as successful, the minister said the timing of the
meeting was now all that was left to decide. He said the EU wanted the meeting
to be held close to the Asia-Europe Ministerial Meeting in Seoul on October 19
to 21, since it was not convenient for EU ministers to travel to the region
several times in a short time.
Under the agreement Burma would attend the meeting as part of Asean, not as
an individual member.
The Foreign Ministry's permanent secretary, Nitya Pibulsonggram, said that
while the EU agreed to the participation of Burma, the country had yet to
benefit from the 1980 Asean-EU Cooperation Agreement.
Laos, which joined Asean together with Burma in 1997, and Cambodia, which
joined in 1999, will sign the agreement with the EU at this month's Asean
Ministerial Meeting in Bangkok. Burma's signing has affected Asean-EU relations
and stalled the Asean-EU ministerial meeting ever since.
The last meeting was held in Singapore February 1997.
BBC-Saturday, 8 July, 2000, 15:16 GMT
16:16 UK
G7 warns dirty money states Finance ministers want the issue to have higher priority Members of the G7 club of industrialised nations have threatened tough
action against countries which permit money laundering on their territory.
After meeting in Japan, G7 finance ministers warned that states which fail to join international efforts to combat such transactions could face sanctions. One of the countries they are targeting is Russia, which was named in a
recent report as one of 15 major havens for illegal funds.
The move is being seen as an attempt by the G7 to give the issue higher
priority on the international agenda.
Reluctance
France in particular has been pushing for more concerted international
action.
The G7 - which also includes the United States, Japan, Canada, Germany,
Britain and Italy - has in the past been seen as reluctant to threaten direct
measures.
In a joint statement after their talks, the ministers agreed to focus on the record of the 15 countries named in the report, produced by the Organisation for Economic Co-operation and Development (OECD). The finance ministers said scrutiny would be stepped up.
If the countries fail to cooperate, they could face additional measures, including cuts in support from international financial institutions, such as the World Bank and the International Monetary Fund. Bold approach
But this 'naming and shaming' approach could prove controversial,
especially in relation to Russia.
OECD blacklist
Bahamas Cayman islands Cook Islands Dominican Republic Israel Lebanon Liechtenstein Marshall Islands Nauru Niue Panama Philippines Russia St Kitts and Nevis St Vincent and the Grenadines Moscow is a member of the so-called Group of Eight - the G7 group plus
Russia.
The Russian finance minister, Aleksey Kudrin, attended some of the meetings
in Japan, as a prelude to the summit meeting of all G8 countries, to be held
later this month.
But it is not just Russia that is seen as a haven for crime bosses seeking
havens for their funds.
Countries such as Israel and the Philippines were also labelled by the
OECD's Financial Action Task Force on money laundering as countries without
strict enough controls.
The list of 15 also included several Caribbean islands - such as the
Bahamas and the Caymans.
The G7 finance ministers said the globalization of the world economy had
made it easier for money launderers to support the activities of drug
traffickers, terrorists and corrupt officials. |