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President Clinton's message to the



Subject: President Clinton's message to the U.S. Congress
Date: Thu, 29 May 1997 13:50:42 -0400

Attn: Burma Newsreaders
Re:   PROHIBITING NEW INVESTMENT IN BURMA--MESSAGE FROM THE PRESIDENT OF
THE UNITED STATES (H. DOC. 105-85) 
(House of Representatives - May 20, 1997) 


The SPEAKER laid before the House the following message from the President
of the United States; which was read and, together with the accompanying
papers, referred to the Committee on International Relations and the
Committee on Appropriations, and ordered to be printed. 

To the Congress of the United States; 

Pursuant to section 570(b) of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1997 (Public Law 104-208) (the `Act'),
I hereby report to the Congress that I have determined and certified that
the Government of Burma has, after September 30, 1996, committed
large-scale repression of the democratic opposition in Burma . Further,
pursuant to section 204(b) of the International Emergency Economic Powers
Act (50 U.S.C. 1703(b)) (IEEPA) and section 301 of the National Emergencies
Act (50 U.S.C. 1631), I hereby report that I have exercised my statutory
authority to declare a national emergency to respond to the actions and
policies of the Government of Burma and have issued an Executive order
prohibiting United States persons from new investment in Burma . 

The order prohibits United States persons from engaging in any of the
following activities after its issuance: 

--entering a contract that includes the economic development of resources
located in Burma ; 

--entering a contract providing for the general supervision and guarantee
of another person's performance of a contract that includes the economic
development of resources located in Burma ; 

--purchasing a share of ownership, including an equity interest, in the
economic development of resources located in Burma ; 

--entering into a contract providing for the participation in royalties,
earnings, or profits in the economic development of resources located in
Burma , without regard to the form of the participation; 

--facilitating transactions of foreign persons that would violate any of
the foregoing prohibitions if engaged in by a United States person; and 

--evading or avoiding, or attempting to violate, any of the prohibitions in
the order. 

Consistent with the terms of section 570(b) of the Act, the order does not
prohibit the entry into, performance of, or financing of most contracts for
the purchase or sale of goods, services, or technology. For purposes of the
order, the term `resources' is broadly defined to include such things as
natural, agricultural, commercial, financial, industrial, and human
resources. However, not-for-profit educational, health, or other
humanitarian programs or activities are not considered to constitute
economic development of resources located in Burma . In accordance with
section 570(b), the prohibition on an activity that constitutes a new
investment applies if such activity is undertaken pursuant to an agreement,
or pursuant to the exercise of rights under an agreement that is entered
into with the Government of Burma or a non-governmental entity in Burma ,
on or after the effective date of the Executive order. 

My Administration will continue to consult and express our concerns about
developments in Burma with the Burmese authorities as well as leaders of
ASEAN, Japan, the European Union, and other countries having major
political, security, trading, and investment interests in Burma and seek
multilateral consensus to bring about democratic reform and improve human
rights in that country. I have, accordingly, delegated to the Secretary of
State the responsibilities in this regard under section 570 (c) and (d) of
the Act. 

The Secretary of the Treasury, in consultation with the Secretary of State,
is authorized to issue regulations in exercise of my authorities under
IEEPA and section 570(b) of the Act to implement this prohibition on new
investment. All Federal agencies are also directed to take actions within
their authority to carry out the provisions of the Executive order. 

I have taken these steps in response to a deepening pattern of severe
repression by the State Law and Order Restoration Council (SLORC) in Burma
 . During the past 7 months, the SLORC has arrested and detained large
numbers of students and opposition supporters, sentenced dozens to
long-term imprisonment, and prevented the expression of political views by
the democratic opposition, including Aung San Suu Kyi and the National
League for Democracy (NLD). It is my judgment that recent actions by the
regime in Rangoon constitute large-scale repression of the democratic
opposition committed by the Government of Burma within the meaning of
section 570(b) of the Act. 

The Burmese authorities also have committed serious abuses in their recent
military campaign against Burma 's Karen minority, forcibly conscripting
civilians and compelling thousands to flee into Thailand. Moreover, Burma
remains the world's leading producer of opium and heroin, with official
tolerance of drug trafficking and traffickers in defiance of the views of
the international community. 

I believe that the actions and policies of the SLORC regime constitute an
extraordinary and unusual threat to the security and stability of the
region, and therefore to the national security and foreign policy of the
United States. 

It is in the national security and foreign policy interests of the United
States to seek an end to abuses of human rights in Burma and to support
efforts to achieve democratic reform. Progress on these issues would
promote regional peace and stability and would be in the political,
security, and economic interests of the United States. 

The steps I take today demonstrate my Administration's resolve to support
the people of Burma , who made clear their commitment to human rights and
democracy in 1990 elections, the results of which the regime chose to
disregard. 

I am also pleased to note that the Administration and the Congress speak
with one voice on this issue, as reflected in executive-legislative
cooperation in the enactment of section 570 of the Foreign Operations Act.
I look forward to continued close consultation with the Congress on efforts
to promote human rights and democracy in Burma . 

In conclusion, I emphasize that Burma 's international isolation is not an
inevitability, and that the authorities in Rangoon retain the ability to
secure improvements in relations with the United States as well as with the
international community. In this respect, I once again call on the SLORC to
lift restriction on Aung San Suu Kyi and the political opposition, to
respect the rights of free expression, assembly, and association, and to
undertake a dialogue that includes leaders of the NLD and the ethnic
minorities and that deals with the political future of Burma . 

In the weeks and months to come, my Administration will continue to monitor
and assess action on these issues, paying careful attention to the report
of the U.N. Special Rapporteur appointed by the U.N. Human Rights
Commission and the report of the U.N. Secretary General on the results of
his good offices mandate. Thus, I urge the regime in Rangoon to cooperate
fully with those two important U.N. initiatives on Burma . 

I am enclosing a copy of the Executive order that I have issued. The order
is effective at 12:01 a.m., eastern daylight time, May 21, 1997. 

The White House, May 20, 1997. 
---------------------end.

For U.S. activities on Burma ---
Burma and U.S. Congress:  http://www.clark.net/pub/burmaus/
Washington Burma Report:  http://www.clark.net/pub/wbr/