    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book I)]
    [May 20, 1997]
    [Pages 633-635]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress on Prohibiting New Investment in Burma
    May 20, 1997

    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.

    [[Page 634]]

        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 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

    [[Page 635]]

    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.

    Note: The Executive order is listed in Appendix D at the end of this
    volume.