BurmaNet News: April 16 2003

[editor at burmanet.org]

April 16 2003 Issue #2217

MONEY

LA Times: Group calls for ban on Myanmar imports
FT: US retailers back import ban on Burma
Guardian: BAT hit by Clarke gaffes over Burma

INTERNATIONAL

European Reporter: EU/Burma: not enough progress, ministers say

REGIONAL

Myanmar Times: Tax agreement signed with Indonesia
DPA: ADB to invest 15 million dollars for ASEAN-China equity fund

STATEMENTS

AAFA: Policy Statement on Burma

MONEY

Los Angeles Times April 16 2003

Group Calls for Ban on Myanmar Imports; Leading organization of U.S.
apparel and footwear makers joins campaign protesting human rights abuses.
By Evelyn Iritani

In an unusual move into controversial political terrain, leading U.S.
apparel and footwear makers Tuesday called for a ban on imports from
Myanmar, threatening that nation's key export sector and giving a powerful
boost to critics of the military regime.

The 600-member American Apparel and Footwear Assn. called on the U.S.
government to end imports of apparel, textiles and footwear from that
troubled Asian country, saying the "repressive nature" of its military
government should be met with "condemnation from not only the
international public community but from private industry as well."

Tuesday's announcement from the nation's leading apparel group followed
decisions by at least 40 top U.S. retailers to stop buying goods from
Myanmar. In recent months, May Department Stores Co., maternity chain
Mother's Work and Burlington Coat Factory have joined Federated Department
Stores Co. and Wal-Mart Stores Inc. on that list.

The United Nations Commission on Human Rights is expected to adopt a
resolution today condemning Myanmar, formerly known as Burma, and urging
the government to resume serious dialogue with opposition leader Aung San
Suu Kyi. The ruling junta has become a pariah as a result of widespread
political repression, violent attacks on ethnic minorities, and the use of
forced labor and child labor on public projects.

U.S. retailers have been chasing cheap labor around the world for decades
and have been accused of ignoring worker abuses in their quest for lower
costs. But under pressure from citizens groups, retailers have become more
vigilant about policing their overseas factories.

Kevin Burke, president of the apparel association, said members decided to
take the unprecedented step of calling for an import ban because Myanmar's
government has "total disdain" for basic human rights.

By allowing the country "to produce products and send them here, we're
putting money in their pocket while they're taking money out of other
people's pockets and abusing them," Burke said.

Jeremy Woodrum, coordinator of the Free Burma Coalition, said he was
shocked and "extremely excited" by the news that the nation's leading
retail group had joined in the boycott campaign.

California energy giant Unocal Corp., the leading U.S. company still in
Myanmar, insisted that its policy of "engagement" had created badly needed
jobs and was the best way to encourage change in that country. Unocal, an
investor in a $1.2-billion natural gas pipeline project, is fighting a
lawsuit in state court over liability for human rights abuses that
occurred during the pipeline's construction.

The U.S. has led the international effort to isolate Myanmar's military
leaders, imposing a ban on new investment in that country in 1997.
Recently, State Department officials have said the U.S. would consider
additional economic sanctions if the human rights situation does not
improve soon.

Even with the sanctions, the U.S. still is one of Myanmar's top trading
partners. Last year the U.S. imported $350 million in goods from Myanmar,
mostly apparel and textiles.
________

Financial Times April l6 2003

US retailers back import ban on Burma
By EDWARD ALDEN

US clothing makers and retailers announced yesterday their support for an
"immediate and total ban" on all imports from Burma, a decision that could
cripple one of the Burmese regime's largest sources of foreign currency
earnings.

The American Apparel and Footwear Association called on the US government
to declare an import ban because of continued human rights violations in
Burma, and said the issue "should be met with condemnation not only from
the international public community but from private industry as well".

The move follows decisions over the past year by more than 40 of the
largest US clothing sellers to end their purchases of apparel made in
Burma. May Department Stores, which owns chains such as Hecht's and Lord &
Taylor, became the latest company to do so last month, following decisions
by groups such as Wal-Mart and Federated Department Stores, which owns
Macy's and Bloomingdales.

The actions on Burma are the strongest example yet of how pressure from
anti-sweatshop and other human rights activists has forced retailers to
change their buying practices even while governments have continued to
encourage trade.

In 2000, the International Labour Organisation called on countries to
consider new sanctions against Burma, urging members to ensure that their
trade with Burma did not "perpetuate the system of forced or compulsory
labour in that country".

But the ILO's call resulted in no new measures against Burma, despite a
deterioration in its human rights record. Lorne Craner, assistant
secretary of state for human rights, said in February the Burmese regime's
"disregard for human rights and democracy extends to every conceivable
category of violation".

The US government imposed a ban on US investment in Burma in 1997, but the
US remains one of the country's five largest trading partners. From 1994
to 2000 apparel exports to the US grew by 800 per cent, accounting for
about 65 per cent of Burma's clothing exports. While the US administration
says it supports sanctions against Burma, an outright ban on trade would
probably fall foul of World Trade Organisation rules, because Burma
remains a WTO member.

Some members of the US Congress have called for a ban on trade with Burma,
but the measure has yet to be put to a vote.

Despite Washington's reluctance, actions by US retailers have hampered
trade with Burma. Burmese clothing exports to the US dropped 27 per cent,
from Dollars 411m to Dollars 303m (Euros 280m, Pounds 193m), between 2001
and 2002.
_________

The Guardian April 16 2003

BAT hit by Clarke gaffes over Burma
Terry Macalister

Kenneth Clarke, former chancellor of the exchequer and deputy chairman of
British American Tobacco, yesterday embarrassed the company over Burma
once again
when he described corporate partners there as "unattractive" and admitted
he could not identify the deputy managing director.
The gaffes were made at BAT's annual general meeting in London where
shareholders connected with a Burmese human rights group challenged Mr
Clarke to explain how he could square his company's continued involvement
there with his own views, expressed in a private letter, that it was run
by an "extremely unpleasant regime".
The former chancellor insisted the quote had been taken out of all context
but in a rambling answer to shareholders effectively repeated the
criticism.
"I share the views of the Burma Action Group that Burma is not one of the
most attractive governments in the world," he said of the regime, which is
a 40% part-owner of BAT's Burma subsidiary, Rothmans of Pall Mall Myanmar.
But he argued that BAT should not withdraw from Burma because it would
mean making 500 people redundant, "throwing them and their family into a
state of destitution".
John Jackson, a shareholder and director of the Burma Campaign in Britain,
then asked Mr Clarke whether he had investigated the record of the Burma
government-appointed deputy managing director of BAT's local subsidiary
there, Colonel Aung San.
A heated exchange followed as Mr Clarke insisted he was only a
non-executive director of BAT and could not be expected to know the names
of all the company's staff.
Mr Jackson pointed out that Mr Clarke, who earned £125,000 from BAT last
year for his part-time job, along with a further £25,000 from British
American Racing, was head of the group's corporate social responsibility
committee so might be expected to be on top of such issues.
The fundamental strategy of BAT towards Burma was spelled out in great
detail during an opening speech to shareholders by chairman Martin
Broughton.
"If we tried to judge the moral acceptability of governments as criteria
for doing business, we would almost certainly find moral objections to a
great many countries," he said.
"Our investments are judged on our proper criteria, balancing all our
responsibilities, and not on misdirected demands by campaign groups."
Mr Broughton earlier said that 2003 would be a "challenging year" for BAT
given the Iraq war, exchange rate fluctuations and the downbeat state of
the economy.

INTERNATIONAL

European Reporter April 16 2003

EU/BURMA: NOT ENOUGH PROGRESS, MINISTERS SAY

European Union Foreign Ministers have said there is simply not enough
progress in the military regime in Burma - also known as Myanmar - and
have decided to maintain their sanctions on the South-East Asian country
for another twelve months. At the EU's General Affairs and External
Relations Council in Luxembourg on April 14, Ministers agreed to extend
the list of people subject to bans on visas or transit visas, and to
strengthen their arms embargo.

The fifteen Foreign Ministers added that if no substantive progress is
made in the national reconciliation process, then they could decide to
broaden and strengthen the scope of the travel ban and asset freeze to
include further members of the military regime, the regime's economic
interests, and other individuals and groups associated with the Burmese
leadership. But the Ministers also pointed out that the EU's humanitarian
aid to Burma was not conditional on the political situation.

In a five-page statement, the Council said the EU welcomed the release of
dissident Aung San Suu Kyi - the opposition leader - from house arrest in
early May 2002, and the freedom of movement within the country she now
enjoys. "At the same time, the Council firmly states that these steps are
by far not sufficient to address the economic, humanitarian and political
problems that afflict the country", it said. It said there were grave
concerns about:

- The serious violations of human rights, including civil, political,
economic and cultural rights;

- The continuing refusal of the Government to enter into any genuine
political dialogue with Aung San Suu Kyi;

- The practice of extra-judicial killings, reports of rape and other forms
of sexual violence, torture, and the systematic use of child soldiers;

- The ever-increasing impact of HIV/AIDS, and the weak response from
Burmese authorities.

The statement added that "the Council can find no credible reason to
account for the failure of political will on behalf of the Burma/Myanmar
authorities to agree a definitive timetable for the return of democracy".
The Ministers said many of the essential elements needed for a process of
national reconciliation, respect for human rights and democracy were in
place, including the cease-fires agreed with many insurgent ethnic groups.

Burma has been repeatedly condemned by Ministers for its human rights
abuses and for failing to uphold promises to support democracy. The World
Bank has already cut financial ties with Rangoon, saying it had failed to
repay past loans. And international labour groups have fiercely condemned
the regime for flagrant abuses of human rights.

REGIONAL

Myanmar Times April 16 2003

Tax agreement signed with Indonesia
By Thet Khaing

Myanmar and Indonesia have signed an agreement on tax alleviation in trade
and employment.

The agreement – on avoiding double taxation and preventing fiscal evasion
– was signed during a three-day visit to Yangon last week by the
Indonesian Foreign Minister, Dr Hassan Wirajuda.

The agreement, signed by Dr Hassan and the Minister for Finance and
Revenue, Major-General Hla Tun, was expected to help boost bilateral
trade, said a statement released by the Indonesian embassy.

The agreement also means that Myanmar working in Indonesia or vice versa
would be liable to pay income tax in one country. They were previously
liable to pay taxes in both countries.
Dr Hassan, who arrived in Yangon on April 1 for a visit at the invitation
of the Foreign Minister, U Win Aung, met the Chairman of the State Peace
and Development Council, Senior General Than Shwe, at the Zeyathiri
Beikman on Pyay Road on April 2.

The embassy statement said the meeting was also attended by the SPDC’s
Vice Chairman, Vice Senior General Maung Aye, as well as Secretary-1,
General Khin Nyunt.

It said that as well as holding talks with U Win Aung, Dr Hassan met the
Home Minister, Colonel Tin Hlaing, the Commerce Minister,
Brigadier-General Pyae Sone, as well as the Minister for Progress of the
Border Areas and National Races Development Affairs, Colonel Than Nyunt.

The statement said Dr Hassan’s talks with the Myanmar ministers focused on
efforts to promote bilateral cooperation and regional issues concerning
the two countries, “such as domestic politics, commerce and various aspect
of border areas relating to strengthening the unity and sovereignty of the
state.”
___________

Deutsche Presse Agentur April 16 2003

ADB to invest 15 million dollars for ASEAN-China equity fund

The Asian Development Bank (ADB) said Wednesday it will invest 15 million
dollars in a new private equity fund to provide capital for small and
medium enterprises (SMEs) in Southeast Asian countries and China.

The Manila-based ADB said the ASEAN-China Investment Fund "seeks to
capitalise on investment opportunities in privately held SMEs,
particularly those that can benefit from expanding regional trade and
investment linkages, and global integration".

It noted two-way trade between the 10-member ASEAN and China has expanded
by an average of 15 per cent every year since 1995, and was expected to
further increase with a recently created ASEAN-China Free Trade Area.

"Although increased regional cooperation generates opportunities for SMEs,
many of them lack capital, management and corporate governance expertise,
and the technical skills to fully capitalise on the opportunities," said
ADB investment officer Peter Marro.

"The fund will assist well-managed companies with attractive growth
prospects by providing risk capital, especially those well-positioned to
take advantage of the increase regional integration," he added.

ASEAN - the Association of Southeast Asian Nations - groups Brunei,
Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Laos,
Cambodia and Myanmar (Burma).

ADB noted while the fund is designed as a fully commercial investment
vehicle, "it includes a unique and innovative programme of non-financial
audits and assessments ... to ensure that all investments are made in a
socially responsible manner".

"This is the first ADB-assisted investment fund and one of the first
private equity funds in Asia that incorporates such a programme as an
integral part of its design," the bank said.

Aside from ADB, the fund's initial core partners include the State
Secretariat of Economic Affairs of Switzerland, which will also invest up
to 15 million dollars, and the United Overseas Bank Group of Singapore,
which will invest up to 10 million dollars.

STATEMENTS

American Apparel & Footwear Association April 15 2003

Policy Statement on Burma

The American Apparel & Footwear Association (AAFA), the national trade
association of the  apparel, footwear, and sewn products industries .
hereby expresses its strong support for a full and immediate ban on U.S.
textiles, apparel and footwear imports from Burma and strongly encourages
the U.S. government to:

.. Impose an outright ban on U.S. imports of textiles, apparel and footwear
from Burma;

.. Maintain this ban until Burma demonstrates that it recognizes, respects,
and enforces basic human and labor rights for its own citizens; and
.. Continue both unilaterally and through multilateral organizations to
exert diplomatic, economic, and political pressure on Burma to recognize,
respect, and enforce basic human rights for its own citizens, including
support of the Burma resolution currently being considered by the United
Nations Commission on Human Rights.

The AAFA supports a U.S. ban on Burmese textiles, apparel and footwear
because Burma has:

.. Consistently rejected international demands to stop government
sanctioned forced and child labor practices against its own people;

.. According to the U.S. government's 2002 Country Report on Human Rights
Practices on Burma, "...continued to restrict worker rights, ban unions,
and used forced labor for public works and for the support of military
garrisons. Other forced labor, including forced child labor remained a
serious problem, despite recent ordinances outlawing the practice;" and
.. Repeatedly failed to comply with internationally recognized conventions
on labor, including forced and child labor.  Due to its "widespread and
systematic" use of forced labor, the International Labor Organization
(ILO) in 2000, for the first time in its history, called on all ILO
members to impose sanctions on Burma.

AAFA, through its mission statement & trade policy:
 .Promotes best practices to ensure that goods are produced in a socially
responsible manner,. by:
- .Encouraging AAFA members to operate under programs that foster socially
responsible production practices compliant with applicable labor and
environmental laws and regulations;
- Encouraging the U.S., other governments and foreign trade associations
to recognize and support programs that have been designed to achieve these
goals; and
- Pursuing policies that encourage development of human rights and
democratic values in countries in which AAFA members conduct business and
discourage trade with countries that promote or support terrorism;.
.. Strongly supports the textile, apparel and footwear industries' use of
independent and effective social responsibility programs such as the
Worldwide Responsible Apparel Production (WRAP) factory certification
program;
.. Applauds and supports the efforts of AAFA member companies that have
already imposed bans on U.S. imports of Burmese textiles, apparel and
footwear for their own firms;
 . Recognizes and applauds the efforts of numerous U.S. and international
governmental and non-governmental organizations to force Burma to respect
the basic human rights of its citizens.