*EPF111 02/11/2002
Text: U.S. Supports Talks Between Suu Kyi and Burma's Military
(State Department says democratic progress "remains slow") (2850)

Though attacks in Burma's government-owned press against the National League for Democracy (NLD) Party and its General Secretary Aung San Suu Kyi have stopped, the military regime in Burma continues to hold more than 1,000 political prisoners, according to a State Department report on conditions in that country.

The United States supports ongoing confidence building measures between Nobel Peace Prize winner Aung San Suu Kyi and the military regime, and hopes that these measures will lead to "meaningful democratic change," the report says.

"The process remains slow," says the report, which covers conditions in Burma during the March 28 to September 27, 2001 time period. "Aung San Suu Kyi remains in detention in her home. She is nevertheless in regular contact with fellow NLD party members, including NLD Chairman, U Aung Shwe, and NLD Vice Chairman, U Tin Oo."

During the time period covered by the report, living conditions in Burma continued to deteriorate, with widespread poverty, the report says.

Burmese citizens live "subject to the arbitrary dictates of the military regime," the report says.

In areas of the country where ethnic minorities live, "there are continuing reports of extrajudicial killings, rape and disappearances," the report continues.

According to the report, U.S. foreign policy goals in Burma call for "progress towards democracy," full respect for human rights, and a "more effective" effort in fighting drug trafficking.

The United States regularly consults with other foreign governments with "major interests in Burma and/or major concerns regarding Burma's current human rights practices." The United States, working with the European Union and other states, also has imposed sanctions on Burma, the report says.

Among the U.S. sanctions on the Rangoon regime are an arms embargo, a ban on all new investments from the United States in Burma, suspension of all bilateral aid to the military government in Rangoon, visa restrictions on that country's senior leaders, and a hold on all new lending or grant programs by international lending institutions in which the United States has a major interest.

Since 1990, the United States has been represented in Rangoon by a Charge d'Affaires instead of an Ambassador.

Should there be "significant progress" toward the goals of a transition to democratic rule and greater respect for human rights in Burma, the report says, the United States would "look seriously" at measures to support the process of constructive change.

Following is the text of the State Department report "Conditions in Burma and U.S. Policy Toward Burma for the period March 28, 2001-September 27, 2001":

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Conditions in Burma and U.S. Policy Toward Burma
For the Period March 28, 2001 - September 27, 2001

Introduction and Summary

Over the past six months, Burma's military government and the National League for Democracy (NLD) General Secretary, Aung San Suu Kyi, have continued confidence building measures aimed at supporting a democratic transition and respect for human rights. While both sides have held the substance of these talks in strictest confidence, there have been a number of positive concrete steps, including the release of approximately 180 political prisoners and detainees since December 2000, and a halt to the vicious attacks on Aung San Suu Kyi and the NLD by the government-owned press. The process remains slow. Aung San Suu Kyi remains in detention in her home. She is nevertheless in regular contact with fellow NLD party members, including NLD Chairman, U Aung Shwe, and NLD Vice Chairman, U Tin Oo. According to the NLD and international human rights organizations, the regime continues to hold over a thousand political prisoners.

The quality of life in Burma continues to deteriorate. Poverty is widespread, and the economy has continued to show the effects of a growing government deficit, rising inflation, shortfalls in energy supplies and continuing foreign exchange shortages. The overall human rights situation in Burma remains deplorable, and widespread human rights abuses continue. Burma's citizens live subject to the arbitrary dictates of the military regime. In ethnic minority areas, there are continuing reports of extrajudicial killings, rape and disappearances.

Prison conditions are harsh and life-threatening, and arbitrary arrests and detentions for the expression of dissenting political views continue to occur. One very positive move was the Government of Burma's decision to permit, for the first time in six years, a visit in April 2001 by the United Nations Special Rapporteur on Human Rights in Burma, Paulo Pinheiro. It has also allowed the International Committee of the Red Cross to visit all prisons in Burma, and about half the nation's labor camps. Reportedly, these ICRC visits have had a significant impact on prison and camp conditions.

Forced labor also remains a serious problem. In November 2000, the Governing Body of the International Labor Organization (ILO) concluded that the Government of Burma had not taken effective action to deal with the use of forced labor and, for the first time in its history, called on all ILO members to review their policies to assure that they did not support forced labor. The United States strongly supported this decision. After initially rejecting this decision, the Government of Burma sought to address the ILO's concerns by inviting a high level ILO team to Burma in September 2001 to review the situation in regard to forced labor.

US policy goals in Burma include progress towards democracy, full respect for human rights and a more effective counternarcotics effort. We support the on-going confidence building measures between Aung San Suu Kyi and the military and hope that it will lead to meaningful democratic change. We also consult regularly, at senior levels, with countries with major interests in Burma and/or major concerns regarding Burma's current human rights practices.

In coordination with the European Union and other concerned states, the United States has maintained sanctions on Burma. These include an arms embargo, an investment ban, a ban on direct assistance to the Burmese regime, denial of OPIC and GSP benefits and a visa ban for senior Burmese officials. Our goal in applying these sanctions is to encourage a transition to democratic rule and greater respect for human rights. Should there be significant progress toward those goals, the United States would look seriously at measures to support a process of constructive change.

Measuring Progress toward Democratization

During the review period (March 2001 to September 2001), Burma's military regime continued the policy of discussion with the NLD's General Secretary, Aung San Suu Kyi, which it had adopted in October 2000 on the advice of UN Special Representative Razali Ismail. This process has contributed to some mutual understanding. While none of the substance of the current talks has been revealed by either side, a series of confidence building gestures has resulted in the release of approximately 180 political prisoners, including all of the NLD's Central Executive Committee members with the exception of Aung San Suu Kyi, who remains under house arrest. The regime has also halted its virulent attacks on Aung San Suu Kyi and the NL, which had become a staple of newspaper coverage in Burma. In addition, the military government has allowed the NLD to reopen 21 party offices in Rangoon Division and to resume some normal party activities. These included a public meeting held on September 27, 2001 to commemorate the founding of the NLD, which was attended by Ambassadors and Chiefs of Mission from the United States, the United Kingdom, Australia, France, Norway and other countries. The NLD, for its part, has moderated its public criticism of the regime.

The regime has also gradually increased access to Aung San Suu Kyi. Since March, visitors have included select members of the NLD's central executive committee, UN Special Rapporteur for Human Rights Paulo Pinheiro, the ILO delegation, UN Special Envoy Razali Ismail, representatives of the European Union and U.S. Deputy Assistant Secretary of State Ralph Boyce. Aung San Suu Kyi is also now in regular, weekly contact with fellow NLD members, including NLD Chairman, U Aung Shwe, and NLD Vice Chairman, U Tin Oo. In her meetings, Aung San Suu Kyi has emphasized that she is hopeful regarding the current talks, but has not revealed any of the substance of the discussions. She has also indicated that she will not emerge from confinement unless she is allowed to fully and freely resume all her duties as the NLD's General Secretary.

The United States welcomes this confidence building process but urges the regime to move from confidence building to genuine political dialogue with Aung San Suu Kyi aimed at returning the country to democracy and civilian rule. Critical next steps include release of the over 1,000 political prisoners still in jail, Aung San Suu Kyi's full release from house arrest, full and free operation of NLD party headquarters

Counternarcotics

Burma is one of the world's largest producers of illicit opium and heroin. However, production of both heroin and opium have declined in Burma since 1996. In 2000, Burma produced an estimated 1085 metric tons of opium, down approximately 60 percent from the 2,560 metric tons of opium produced in 1996.

As opium production has declined, mephamphetamine production has soared, particularly in outlying regions that are governed by former ethnic insurgents who have signed ceasefire agreements with the government. In 2000, the Burmese government seized approximately 27 million mephamphetamine tablets, compared with approximately 6 million tablets in 1996.

We have no evidence that the government is involved on an institutional level in the drug trade. However, there are persistent and reliable reports that Burmese government and military officials in outlying areas are either directly involved in drug production and trafficking or provide protection to those who are. Beyond encouraging ethnic insurgents who have signed ceasefire agreements to curb narcotics production and trafficking, the Burmese government recently began to take action against them to curb these activities. For example, in November 2000, the government occupied the territory of the Mong Ko Defense army and arrested its leader, Mon Sa La, on drug trafficking charges. Reportedly, Mong Ko had been the site of almost one-third of the heroin production in northeast Burma. In addition, in August and September 2001, the government made a number of raids on Kokang and local militia in northeastern Shan State that resulted in the arrest of numerous drug traffickers.

There have also been significant improvements in Burma's cross-border cooperation with neighboring states. In 2001, it signed memoranda of understanding on narcotics control with both China and Thailand, and participated in quadrilateral meetings (China, Burma, Laos and Thailand) on narcotics control in both Thailand and China. At an operational level, improved cooperation between the Chinese and Burmese police forces resulted in several significant arrests of narcotics traffickers in the Kokang region..

Under pressure from the Financial Action Task Force (FATF), which designated Burma as a "non-cooperating" state in June 2001, the Government of Burma has also produced a near final draft of a new money laundering law, which will reportedly address many of the FATF's concerns. That law should be enacted shortly.

Despite these steps, the United States does not believe that Burma's current counternarcotics efforts are commensurate with the scale of the problem in Burma. Economic growth and enhanced government resources would reduce pressure for opium cultivation and increase counternarcotics resources. The United States has continued to work with UNDCP and other donors on opium reduction and crop substitution programs in Burma. In September 2001, the United States pledged an additional $1,000,000 to support UNDCP's Wa Alternative Development Project, which is targeted at the reduction of opium production in the territories of the United Wa State Army, now the largest ceasefire group in Burma, but made utilization of these funds contingent on the mobilization of matching funds from other donors during CY 2001.

The Quality of Life in Burma

Burma remains one of the world's poorest countries with an average per capita GDP of approximately $300, according to World Bank figures. Primarily an agricultural economy, Burma also has substantial mineral, fishing and timber resources. However, almost four decades of military misrule and mismanagement have produced a chaotic economy characterized by widespread poverty.

Over the past six months, a growing government deficit, shortfalls in energy supplies and continuing foreign exchange shortages have hampered economic activity and contributed to a rapid depreciation in Burma's official currency, the kyat. Valued at approximately 460 kyat to the dollar in March 2001, that rate has now fallen to approximately 680 kyat per dollar. In rural areas, government restrictions on private sector rice exports in the face of a bumper crop also reduced rice prices in some areas to levels below farmer costs. At the same time, in urban areas, inflation picked up speed . According to an urban retail price index calculated by the U.S. Embassy, cumulative, point-to-point inflation in the year to August 2001 totaled approximately 46 percent. This compares with an increase of only six percent in the same index in the year to August 2000.

Severe and widespread human rights abuses also continued throughout Burma during the reporting period. In ethnic minority areas in particular, there were many reports of extrajudicial killings, rape and disappearances. Prison conditions also remained harsh, and arbitrary arrests and detentions for the expression of dissenting political views continued to occur. Over the past two years, the International Committee of the Red Cross has been able to visit all of Burma's 35 prisons, and approximately half of its 100-odd labor camps. These visits have had a significant positive impact on conditions in both the prisons and the labor camps.

Several high-profile political prisoners and detainees were released during the review period. These included both the Chairman, U Aung Shwe, and the Vice Chairman, U Tin Oo, of the National League for Democracy, who were released just prior to the August visit of UN Special Envoy Razali Ismail, several major ethnic leaders and approximately 25 MPs-elect from the 1990 Parliament. As of September 2001, however, more than 1,000 political prisoners still remained under detention or in prison, including 29 Members-elect of Parliament.

In April 2001, the Burmese government also allowed the first visit to Burma of a UN Special Rapporteur on Human Rights in more than six years. The UN's Special Rapporteur, Paulo Pinheiro, was scheduled to return in October 2001 for a more extended mission.

Forced labor remains an issue of serious concern, despite government efforts to control the practice. In November 2000, the International Labor Organization (ILO) Governing Body concluded that the Government of Burma had not taken effective action to deal with the use of forced labor in the country and, for the first time in its history, called on all ILO members to review their policies to ensure that they did not support forced labor. The United States strongly supported this decision.

In recent months, the Government of Burma has indicated a willingness to work with the ILO in addressing the problem of forced labor. While it continues to resist proposals for a permanent ILO presence in Burma, it has allowed the visit of a high level ILO team which is to assess the situation in regard to forced labor. That team arrived in Burma on September 17.

Development of a Multilateral Strategy

U.S. policy goals in Burma are progress towards democracy, respect for human rights, more effective counternarcotics efforts and steps to address serious social and health concerns such as HIV/AIDS. We support the on-going confidence building measures between Aung San Suu Kyi and the military government in the hope that it will eventually lead to meaningful democratic change in Burma. We also consult regularly, at senior levels, with countries with major interests in Burma and/or major concerns regarding Burma's human rights practices.

The United States has co-sponsored annual resolutions at the UN General Assembly and the UN Commission on Human Rights that target Burma. We have also supported ILO's unprecedented decision on Burma given its failure to deal effectively with its pervasive forced labor problems. Most importantly, we strongly support the mission of the UN Secretary General's Special Representative for Burma, Razali Ismail, who has helped persuade the military government to hold talks with Aung San Suu Kyi.

In coordination with the European Union and other states, the United States has imposed sanctions on Burma. These sanctions include an arms embargo, a ban on all new U.S. investment in Burma, the suspension of all bilateral aid, the withdrawal of GSP privileges, the denial of OPIC and EXIMBANK programs, visa restrictions on Burma's senior leaders and a hold on all new lending or grant programs by the World Bank, the IMF, the ADB and other international financial institutions in which the United States has a major interest. The level of our diplomatic representation was downgraded from Ambassador to Charge' d'Affaires in 1990.

Our goal in applying these sanctions is to encourage a transition to democratic rule and greater respect for human rights. Should there be significant progress towards those goals, the United States would look seriously at measres to support this process of constructive change.

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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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