[Congressional Record (Bound Edition), Volume 162 (2016), Part 9]
[Extensions of Remarks]
[Pages 12727-12728]
[From the U.S. Government Publishing Office, www.gpo.gov]




                BURMA NEEDS CHANGE FOR SANCTIONS RELIEF

                                 ______
                                 

                          HON. JOSEPH R. PITTS

                            of pennsylvania

                    in the house of representatives

                     Wednesday, September 14, 2016

  Mr. PITTS. Mr. Speaker, the situation in Burma is still terrible for 
many of the people there, particularly the ethnic minorities. While the 
Administration is moving quickly to remove sanctions, our government 
should slow down and assess what real, sustainable change has actually 
occurred--many of the same people who were part of the dictatorship are 
still in power. While there have been some positive changes, ethnic 
minorities are still being brutally attacked by the Burma Army. Any 
assessment of Burma's steps toward democracy and human rights climate 
must take this into account.

[[Page 12728]]

  I encourage my colleagues to read the message from Kristine Gould and 
Larry Dohrs of U.S. Campaign for Burma.

      U.S. Should Mandate Change in Exchange for Sanctions Relief

       It is time for the United States to stop agonizing about 
     economic sanctions against Burma. However, the answer is not 
     simply to remove all sanctions, but to keep targeted 
     sanctions in place while providing a constructive pathway 
     forward to later eliminate those remaining as Burma continues 
     its process of democratic reform.
       While there has been significant progress toward such 
     reform--particularly since the November 2015 elections that 
     brought the National League for Democracy into power--it is 
     not complete, and significant challenges must be overcome 
     before a genuine, federal, democratic Union--as well as true 
     peace--can be established.
       The Obama administration started to restructure sanctions 
     against Burma in May 2012, when it relaxed a prohibition on 
     new investment, relieved stringent visa bans and allowed 
     exportation of most financial services. In general, three 
     classes of sanctions remain:
       1. Export of financial services and provision of security 
     services to individuals and organizations related to the 
     Ministry of Defense, state and non-state armed groups, and 
     businesses that are more than 50 percent owned by military 
     organizations.
       2. Import of jadeite and rubies or their finished products.
       Investment and business dealings with individuals and 
     organizations identified as Specially Designated Nationals 
     and Blocked Persons, commonly referred to as the SDN list.
       Armed conflict between Burma's defense services and the 
     country's ethnic armed organizations continues. Even during 
     the recently convened 21st Century Panglong Conference, the 
     government and the Burma Army refused to issue a temporary 
     ceasefire, and battles raged on in Kachin and northern Shan 
     states while stakeholders discussed peace in Naypyidaw.
       Exploitation of natural resources continues, with both 
     private individuals and elements of the armed forces 
     profiting significantly from the unrestricted exportation of 
     jade and other natural resources. The military-drafted 2008 
     Constitution gives the Burma Army significant political 
     power, regardless of the 2015 election results and its clear 
     message from voters that the armed forces should step aside 
     from politics.
       Perhaps most significantly, human rights violations by the 
     armed forces and security services organizations continue 
     unabated. Until these issues and challenges are resolved, the 
     United States should keep targeted sanctions in place, as 
     most recently reaffirmed by the U.S. Congress in May 2016.
       Just last month, a Union Solidarity and Development Party 
     (USDP) parliamentarian proposed that Burma's government 
     should attempt to pressure the United States to lift 
     sanctions. The USDP was formed in 2010 by elements of the 
     former military junta, and it ruled the country under former 
     President U Thein Sein from March 2011 to March 2016.
       While the proposal was defeated by a vote of 219 to 151, 
     its discussion by lawmakers indicates the importance and 
     value of lifting sanctions. The key here is not to offer 
     blanket relief but to establish a clear pathway forward to 
     eliminate sanctions tied to reform objectives:
       1. As long as the Burma Army continues its attacks on 
     ethnic armies and human rights violations, the United States 
     should continue restricting export of defense services, 
     including sales of defense articles and military-to-military 
     assistance.
       The armed forces receive more than 20 percent of the 
     country's annual budget, and control two enormous business 
     conglomerates (the Myanmar Economic Corporation and the Union 
     of Myanmar Economic Holdings), which are not accountable to 
     the government. While these assets continue to support 
     attacks against the people and perpetuate gross human rights 
     abuses, the United States should not provide military 
     equipment.
       The United States has already initiated limited high-level 
     military-to-military contacts focusing on the role of the 
     nation's military forces under a democratic government, the 
     terms of the Geneva Convention and the military's role in 
     protecting its citizens.
       This should continue, and the United States should relax 
     funding restrictions that interfere with scheduling and 
     executing these events. However, participation in 
     International Military Education and Training, Joint Chiefs 
     of Staff exercise programs, and other developmental programs 
     must hinge on ending the country's armed conflict and 
     developing a military force that is accountable to an elected 
     civilian government.
       2. The Tom Lantos Block Burma JADE Act of 2008 must stay in 
     place until the government cleans up its jadeite and ruby 
     mining practices. An October 2015 report by the London-based 
     NGO Global Witness titled ``Jade: Myanmar's Big State 
     Secret'' described a US$31 billion jade industry controlled 
     by a network of military elites, drug lords and crony 
     companies.
       Entire mountains in Kachin State housing some of the 
     world's largest jade deposits have disappeared, with only 
     minimal tax revenue and profits reaching Burma's citizens. 
     Only after the government reforms this massive theft of 
     natural resources should the United States consider the 
     recension of the JADE Act.
       3. The United States should review and update the SDN list, 
     as there are individuals and organizations on this list that 
     have demonstrated that they are committed to the reform 
     process. This may prove challenging to the Office of Foreign 
     Assets Control, as there is no definitive and prescriptive 
     legal guidance for removing individuals and organizations 
     from the SDN list.
       However, there are individuals and organizations that 
     continue to profit from their past relationships with the 
     military junta, access to confiscated property, the 
     questionable ``ownership'' of natural resources, or the 
     narcotics trade, which significantly hampers economic reform 
     and equitable distribution of profits from the country's 
     natural resources. It is up to the United States to clean up 
     its own administrative system and determine who needs to 
     remain on the SDN list.
       Advanced reporting on State Counselor Daw Aung San Suu 
     Kyi's visit to the United States later this month already 
     indicates that the United States is considering further 
     easing or lifting of sanctions. Above all, the United States 
     should ensure that it protects all of Burma's citizens in the 
     ongoing reform process by mandating change in exchange for 
     sanctions relief The United States should avoid a mere 
     emotional gain associated with rewarding Daw Aung San Suu Kyi 
     for incomplete reform.

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