[House Document 105-85]
[From the U.S. Government Publishing Office]



105th Congress, 1st Session  - - - - - - - - - - - House Document 105-85


 
       DECLARATION OF A NATIONAL EMERGENCY WITH RESPECT TO BURMA

                               __________

                             M E S S A G E

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 HIS DECLARATION OF A NATIONAL EMERGENCY TO RESPOND TO THE ACTIONS AND 
 POLICIES OF THE GOVERNMENT OF BURMA AND NOTICE THAT HE HAS ISSUED AN 
 EXECUTIVE ORDER PROHIBITING UNITED STATES PERSONS FROM NEW INVESTMENT 
                IN BURMA, PURSUANT TO 50 U.S.C. 1703(b)




    May 20, 1997.--Message and accompanying papers referred to the 
 Committees on International Relations and 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 have 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 restrictions 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.

                                                William J. Clinton.
    The White House, May 20, 1997.
                            Executive Order

                              ----------                              


                  Prohibiting New Investment in Burma

    By the authority vested in me as President by the 
Constitution and the laws of the United States of America, 
including section 570 of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1997 
(Public Law 104-208) (the ``Act''), the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the 
National Emergencies Act (50 U.S.C. 1601 et seq.), and section 
301 of title 3 of the United States Code;
    I, WILLIAM J. CLINTON, President of the United States of 
America, hereby determine and certify that, for purposes of 
section 570(b) of the Act, the Government of Burma has 
committed large-scale repression of the democratic opposition 
in Burma after September 30, 1996, and further determine that 
the actions and policies of the Government of Burma constitute 
an unusual and extraordinary threat to the national security 
and foreign policy of the United States and declare a national 
emergency to deal with that threat.
    Section 1. Except to the extent provided in regulations, 
orders, directives, or licenses that may be issued in 
conformity with section 570 of the Act and pursuant to this 
order, I hereby prohibit new investment in Burma by United 
States persons.
    Sec. 2. The following are also prohibited, except to the 
extent provided in section 203(b) of IEEPA (50 U.S.C. 1702(b)) 
or in regulations, orders, directives, or licenses that may be 
issued pursuant to this order:
    (a) any approval or other facilitation by a United States 
person, wherever located, of a transaction by a foreign person 
where the transaction would constitute new investment in Burma 
prohibited by this order if engaged in by a United States 
person or within the United States; and
    (b) any transaction by a United States person or within the 
United States that evades or avoids, or has the purpose of 
evading or avoiding, or attempts to violate, any of the 
prohibitions set forth in this order.
    Sec. 3. Nothing in this order shall be construed to 
prohibit the entry into, performance of, or financing of a 
contract to sell or purchase goods, services, or technology, 
except:
    (a) where the entry into such contract on or after the 
effective date of this order is for the general supervision and 
guarantee of another person's performance of a contract for the 
economic development of resources located in Burma; or
    (b) where such contract provides for payment, in whole or 
in part, in:
    (i) shares of ownership, including an equity interest, in 
the economic development of resources located in Burma; or
    (ii) participation in royalties, earnings, or profits in 
the economic development of resources located in Burma.
    Sec. 4. For the purposes of this order:
    (a) the term ``person'' means an individual or entity;
    (b) the term ``entity'' means a partnership, association, 
trust, joint venture, corporation, or other organization;
    (c) the term ``United States person'' means any United 
States citizen, permanent resident alien, juridical person 
organized under the laws of the United States (including 
foreign branches), or any person in the United States;
    (d) the term ``new investment'' means any of the following 
activities, if such an activity is undertaken pursuant to an 
agreement, or pursuant to the exercise of rights under such an 
agreement, that is entered into with the Government of Burma or 
a nongovernmental entity in Burma on or after the effective 
date of this order:
    (i) the entry into a contract that includes the economic 
development of resources located in Burma;
    (ii) the entry into 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;
    (iii) the purchase of a share of ownership, including an 
equity interest, in the economic development of resources 
located in Burma; or
    (iv) the entry 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;
    (e) the term ``resources located in Burma'' means any 
resources, including natural, agricultural, commercial, 
financial, industrial, and human resources, located within the 
territory of Burma, including the territorial sea, or located 
within the exclusive economic zone or continental shelf of 
Burma;
    (f) the term ``economic development of resources located in 
Burma'' shall not be construed to include not-for-profit 
educational, health, or other humanitarian programs or 
activities.
    Sec. 5. I hereby delegate to the Secretary of State the 
functions vested in me under section 570(c) and (d) of the Act, 
to be exercised in consultation with the heads of other 
agencies of the United States Government as appropriate.
    Sec. 6. The Secretary of the Treasury, in consultation with 
the Secretary of State, is hereby authorized to take such 
actions, including the promulgation of rules and regulations, 
and to employ all powers granted to me by section 570(b) of the 
Act and by IEEPA, as may be necessary to carry out the purposes 
of this order. The Secretary of the Treasury may redelegate the 
authority set forth in this order to other officers and 
agencies of the United States Government. All agencies of the 
United States Government are hereby directed to take all 
appropriate measures within their authority to carry out the 
provisions of this order.
    Sec. 7. Nothing contained in this order shall create any 
right or benefit, substantive or procedural, enforceable by any 
party against the United States, its agencies or 
instrumentalities, its officers or employees, or any other 
person.
    Sec. 8. This order shall take effect at 12:01 a.m., eastern 
daylight time, May 21, 1997.
    (b) This order shall be transmitted to the Congress and 
published in the Federal Register.

                                                William J. Clinton.
    The White House, May 20, 1997.
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