U.S. Businesses Back ASEAN

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                          Copyright 1997 Asia Times  
                                   Asia Times

                                 March  11, 1997

HEADLINE: US businesses back ASEAN on  Myanmar  

BYLINE: Kevin Hamlin

DATELINE: Singapore

 BODY:
   A body representing more than 400 leading United States companies on Monday
said it opposed unilateral economic sanctions against  Myanmar  and welcomed
that country's likely accession to the Association of Southeast Asian
Nations (ASEAN). The delegation, from the US-ASEAN Business Council, which
represents the
elite of US businesses active in Southeast Asia, began on Monday a week-long
tour of Singapore, Malaysia and Indonesia to convince ASEAN nations of the need 
to further liberalize the rules governing foreign trade and
investment. Companies that joined the tour have combined revenues totaling more 
than US$ 300 billion.

   Leaders of the delegation criticized those who suggest  Myanmar  should be
isolated and punished for abusing human rights and repressing democracy.

   "The United States achieves more abroad through conversation, dialogue and
communication rather than by finger-wagging, criticism, blackmail or economic
sanctions," said former US secretary of state Alexander Haig, co-chairman of
the delegation.

   Imposing economic sanctions was "arrogant, wrongheaded and misreads the
lessons of history," Haig added. "It's a very shortsighted approach."

   The group also urged ASEAN countries to further deregulate their economies
and suggested a failure to do so could result in their losing foreign investment
to the rapidly-emerging economies of China, Latin America and Russia. 
   "There is enormous competition for these funds," said Lloyd Bentsen Jr,
former US secretary of the treasury. "Latin America is the second fastest
growing part of the world today. Russia is opening up and privatizing. China is 
drawing billions of dollars into there that might be going into Southeast Asia."

   Bentsen said ASEAN could enhance its competitiveness by liberalizing its
financial services sector and by improving transparency.

   Delegation leader George David, president of United Technologies, added that 
ASEAN received about US$ 20 billion in foreign direct investment last year,
compared to US$ 40 billion in China. "It has grown well in the last few years
but it has not grown as rapidly as has China," he said.

   The US delegation's opposition to sanctions against  Myanmar  will come as
good news for the country's embattled leadership, which is pilloried by segments
of the international community for its harsh treatment of a pro-democracy
movement headed by Nobel Peace laureate Aung San Suu Kyi.

   Public anger over reports of human rights abuses in  Myanmar  has already
prompted the withdrawal from the country of two major international companies.
US soft drinks giant PepsiCo and European beer company Carlsberg both said last 
year that they would leave the  Myanmar  market. 
   US President Bill Clinton late last year barred travel to the US by members
of  Myanmar's  leadership and their families but disappointed the country's
pro-democracy groups by failing to impose wider economic sanctions.

   Bills to discourage investment in  Myanmar  have been signed into law in
Massachusetts and 11 other US cities and counties.

   The European Union also bars  Myanmar's  leaders from its member countries.
Some European nations have said  Myanmar's  likely accession to ASEAN this year 
could be a stumbling block to the development of future relations between the EU
and ASEAN.

   But the US-ASEAN Business Council, indicating politics would not be allowed
to obstruct business, on Monday lined up squarely behind ASEAN, the regional
grouping which adopts a policy of "constructive engagement" toward  Myanmar. 

   The council includes among its membership corporate giants such as
McDonald's, Chase Manhattan Bank, General Electric, Enron, Lockheed-Martin and
Eastman Kodak.

   David said the US-ASEAN Business Council believed economic sanctions were not
an effective device. 
   While members "tenaciously and passionately" believed in "human rights,
workers' rights and democracy", they did not believe in unilateral economic
sanctions. "We feel that the policy of engagement is a much better way to induce
change in foreign countries," David said.

   David welcomed the possibility that  Myanmar  would later this year become a 
member of ASEAN, as is widely expected. "It would be good to see ASEAN expand
from seven members to 10 with the accession of Laos,  Burma  and Cambodia," he
added.

   Bentsen also spoke against unilateral economic sanctions, which he said "just
don't work". "I would like to see  Burma  actually not be so isolated," he said.
"I would like to see them knowing their neighbors better."

   Asked how he would explain the delegation's position to  Myanmar's 
opposition leader, who has requested sanctions against her country, Bentsen
said: "I sympathize with her plight and her problem but we are a nation and we
cannot govern by the ideas and recommendations of one person."

LANGUAGE: ENGLISH