US bans new investments in Burma
By Eva Cheng
On April 22, US President Bill Clinton approved an order banning new US investments in Burma because of increased repression by the State Law and Order Restoration Council regime. But the decree leaves untouched existing projects.
High on the list of continuing projects is US energy conglomerate Unocal's US$1.2 billion Yadana gas project in the Andaman Sea, a joint venture with France's Total and the Burmese and Thai governments. The project, in which Unocal has a 28% stake, is due for completion next year. The SLORC will receive at least half of the US$400 million annual revenue from the project.
Unocal's is the biggest US investment in Burma. Total foreign investments in Burma since 1988 amount to US$5.27 billion.
In February, Unocal announced new agreements with Total and a SLORC firm to expand oil and gas exploration into a new area of the Andaman Sea. It is not clear whether this venture will also escape the sanction.
However, the ban should block new US investments in Burma. In March, executives of 50 US firms, including McDonnell Douglas, United Technologies and Chase Manhattan Bank, backed the call of the Association of South-East Asia Nations (ASEAN) for "constructive engagement" with Burma.
Led by Singapore and Thailand, the two biggest investors in Burma, ASEAN accepted the SLORC regime as an observer and is considering its application as a full member.
Former US secretary of state Alexander Haig even argued that an embargo against Burma is "arrogant, wrong-headed and misreads lessons of history".
Paris recently granted investment guarantees to back Total's projects in Burma. France and the US are respectively the third and fourth biggest investors there.
The SLORC has conducted a widespread crackdown on the democracy movement since breaking up large street demonstrations in December. Army chief of staff Lieutenant-General Tin Oo warned then that the government would "annihilate any internal elements who are trying to disrupt the country".
A parcel bomb went off in Tin Oo's home on April 6, killing one of his daughters. No-one has claimed responsibility.
On April 14, the SLORC tried to stop National League for Democracy supporters from reaching the home of leader Aung San Suu Kyi for a "celebration" of the Burmese New Year. Thousands attended despite intimidation by a heavily armed force.