[House Document 106-241]
[From the U.S. Government Publishing Office]
106th Congress, 2d Session - - - - - - - - - - - House Document 106-241
NATIONAL EMERGENCY WITH RESPECT TO BURMA: SIX MONTH PERIODIC REPORT
__________
MESSAGE
FROM
THE PRESIDENT OF THE UNITED STATES
TRANSMITTING
A REPORT ON DEVELOPMENTS CONCERNING THE NATIONAL EMERGENCY WITH RESPECT
TO BURMA THAT WAS DECLARED IN EXECUTIVE ORDER 13047 OF MAY 20, 1997,
PURSUANT TO 50 U.S.C. 1703(c).
May 18, 2000.--Message and accompanying papers referred to the
Committee on International Relations and ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
79-011 WASHINGTON : 2000
To the Congress of the United States:
As required by section 401(c) of the National Emergencies
Act, 50 U.S.C. 1641(c) and section 204(c) of the International
Emergency Economic Powers Act (IEEPA), 50 U.S.C. 1703(c), I
transmit herewith a 6-month periodic report on the national
emergency with respect to Burma that was declared in Executive
Order 13047 of May 20, 1997.
William J. Clinton.
The White House, May 18, 2000.
President's Periodic Report on the National Emergency With Respect to
Burma
I hereby report to the Congress on developments concerning
the national emergency with respect to Burma that I declared in
Executive Order No. 13047 of May 20, 1997, pursuant to section
570 of the Foreign Operations, Export Financing, and Related
Programs Appropriations Act (the ``Act'') and the International
Emergency Economic Powers Act (``IEEPA''). This report is
submitted pursuant to section 204(c) of IEEPA, 50 U.S.C.
1703(c) and section 401(c) of the National Emergencies Act, 50
U.S.C. 1641(c). This report discusses only matters concerning
the national emergency with respect to Burma that was declared
in Executive Order No. 13047.
1. On May 20, 1997, I issued Executive Order No. 13047 (62
Fed. Reg. 28301, May 22, 1997), effective on May 21, 1997, to
declare a national emergency with respect to Burma and to
prohibit new investment in Burma by U.S. persons, except to the
extent provided in regulations, orders, directives, or licenses
that may be issued in conformity with section 570 of the Act.
The Order also prohibits any approval or other facilitation by
a U.S. person, wherever located, of a transaction by a foreign
person where the transaction would constitute new investment in
Burma prohibited by the Order if engaged in by a U.S. person or
within the United States. This action was taken in response to
the large-scale repression of the democratic opposition by the
Government of Burma since September 30, 1996. A copy of the
Order was provided to the Congress by message dated May 20,
1997.
By its terms, Executive Order No. 13047 does not prohibit
the entry into, performance of, or financing of a contract to
sell or purchase goods, services, or technology, except: (1)
where the entry into such contract on or after May 21, 1997, 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 (2) 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.
2. On May 21, 1998, the Department of the Treasury's Office
of Foreign Assets Control (``OFAC'') issued the Burmese
Sanctions Regulations (the ``Regulations''), 31 C.F.R. Part
537, to implement the prohibitions of Executive Order 13047 (63
Fed. Reg. 27846, May 21, 1998). The Regulations apply to U.S.
persons, defined to include U.S. citizens and permanent
resident aliens wherever they are located, entities organized
under U.S. law (including their foreign branches), and entities
and individuals actually located in the United States. The
sanctions do not apply directly to foreign subsidiaries of U.S.
firms, although foreign firms' activities may be affected by
the restriction on U.S. persons' facilitation of a foreign
person's investment transactions in Burma.
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
anagreement, that is entered into with the Government of Burma, or a
non-governmental entity in Burma, on or after May 21, 1997: (a) The
entry into a contract that includes the economic development of
resources located in Burma; (b) 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; (c) the purchase of a share of ownership, including
an equity interest, in the economic development of resources located in
Burma; or (d) 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
participation.
3. In early July 1997, OFAC sent notification letters to
approximately 50 U.S. firms with operations in or ties to Burma
informing them of the restrictions on new investment. The
letters included copies of Executive Order No. 13047, provided
clarification of several technical issues, and urged firms to
contact OFAC if they had specific questions on the application
of the Executive Order to their particular circumstances.
OFAC continues to disseminate details of this program to
the financial, securities, and international trade communities
by both electronic and conventional media. This includes
posting the Executive Order, Regulations, and other notices
about the Burmese sanctions on the Internet, computer bulletin
boards, and fax-on-demand services, and providing the material
to the U.S. Embassy in Rangoon for distribution to U.S.
companies operating in Burma.
In the six-month period since November 20, 1999, OFAC has
issued no amendments to the Regulations or specific licenses
authorizing transactions otherwise prohibited by the
Regulations, and has neither assessed nor collected any civil
monetary penalty for a violation of the Regulations.
4. The expenses incurred by the Federal Government in the
six-month period from November 20, 1999 through May 19, 2000
that are directly attributable to the exercise of powers and
authorities conferred by the declaration of a national
emergency with respect to Burma are estimated at approximately
$16,000, most of which represent wage and salary costs for
Federal personnel. Personnel costs were largely centered in the
Department of the Treasury (particularly in the Office of
Foreign Assets Control, the Office of the Under Secretary for
Enforcement, and the Office of the General Counsel), and the
Department of State (particularly the Bureau of Economic and
Business Affairs, the Bureau of East Asian and Pacific Affairs,
and the Office of the Legal Adviser).
5. The situation reviewed above continues to present an
extraordinary and unusual threat to the national security and
foreign policy of the United States. The declaration of the
national emergency with respect to Burma contained in Executive
Order No. 13047 in response to the large-scale repression of
the democratic opposition by the Government of Burma since
September 30, 1996, reflected the belief that 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, to
support efforts to achieve democratic reform which would
promote regional peace and stability, and to urge effective
counter-narcotics policies.
In the past six months the State Peace and Development
Council (``SPDC'') has shown no sign of willingness to cede its
hold on absolute power. Since refusing to recognize the results
of the free and fair 1990 elections in which the National
League for Democracy won a vast majority of both the popular
vote and the parliamentary seats, the ruling junta has
continued to refuse to negotiate with pro-democracy forces and
ethnic groups for a genuine political settlement to allow a
return to the rule of law and respect for basic human rights.
Burma has taken limited but insufficient steps to counter
narcotics production and trafficking.
The net effect of U.S. and international measures to
pressure the SPDC to end its repression and move toward
democratic government has been a further decline in investor
confidence in Burma and deeper stagnation of the Burmese
economy. Observers agree that the Burmese economy appears to be
further weakening and that the government has a serious
shortage of foreign exchange reserves with which to pay for
imports. While Burma's economic crisis is largely a result of
the SPDC's own heavy-handed mismanagement, the SPDC is unlikely
to find a way out of the crisis unless political developments
permit an easing of international pressure. I shall continue to
exercise the powers at my disposal to deal with these problems
and will report periodically to the Congress on significant
developments.