H.Doc.108-74 2003 COMPREHENSIVE REPORT ON U.S. TRADE AND INVESTMENT POLICY TOWARD ...

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108th Congress,                                             House Document 
lst Session                                                   108-73

 
               PERIODIC REPORT ON THE NATIONAL EMERGENCY

                         WITH RESPECT TO BURMA

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

  A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO 
BURMA DECLARED BY EXECUTIVE ORDER 13047 OF MAY 20, 1997, PURSUANT TO 50 
                  U.S.C. 1641(c) AND 50 U.S.C. 1703(c)

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    May 20, 2003.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed
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, 50 U.S.C. 1703(c), I am 
providing a report prepared by my Administration, covering the 
6-month period since November 20, 2002, on the national 
emergency with respect to Burma that was declared in Executive 
Order 13047 of May 20, 1997.

                                                    George W. Bush.
    The White House, May 16, 2003.
    Periodic Report on the National Emergency With Respect to Burma

    This report covers developments over the course of the past 
6 months concerning the national emergency with respect to 
Burma that was declared in Executive Order 13047 of May 20, 
1997, pursuant to, inter alia, section 570 of the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 1997 (Public Law 104-208) and the 
International Emergency Economic Powers Act (IEEPA). This 
report is submitted consistent with 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).
    In the 6-month period since November 20, 2002, the 
Department of the Treasury's Office of Foreign Assets Control 
(OFAC) has issued no specific licenses authorizing transactions 
otherwise prohibited by the Burmese Sanctions Regulations, 31 
C.F.R. Part 537 (the Regulations), and has neither assessed nor 
collected any civil monetary penalty for a violation of the 
Regulations.
    The expenses incurred by the Federal Government in the 6-
month period from November 20, 2002, 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 $6,500, 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.
    Movement toward peaceful democratic change in Burma has 
come to a halt. The regime has become more confrontational in 
its exchanges with the National League for Democracy (NLD), 
lead by Aung San Suu Kyi, and has offered no real signs of 
progress toward its stated commitment to a political transition 
to democracy. United Nations Special Envoy Razali continued his 
mission, the NLD reopened a significant number of township and 
divisional party offices, and Aung San Suu Kyi was able to 
continue her travels in Burma. However, recent visits were 
marred by incidents of harassment. In March 2003, the U.N. 
Special Rapporteur on Human Rights in Burma cut his visit short 
when he learned that his supposedly confidential discussions 
with political prisoners were being monitored by Burmese 
authorities. Most seriously, the regime has not demonstrated 
its willingness to begin a real dialogue with the NLD on 
substantive political issues.
    Economic developments over the period were punctuated by a 
banking crisis that followed the collapse of approximately 20 
informal financial institutions. Stimulated by the rampant 
inflation in recent years, these informal financial 
institutions had grown rapidly for 2 years, before collapsing 
in January, sparking a run on the private banks. The banks have 
coped by restricting withdrawals, calling in loans, and 
requesting emergency central bank support. The regime's severe 
repression and mismanagement of the economy has created a 
downward economic spiral and undermined living standards in 
Burma. Inflation has priced many goods out of the reach of the 
Burmese people, and educational and medical facilities are 
limited. The junta has not taken steps to institute the 
structural reforms and political transition that are required 
for access to foreign financing. We remain concerned about the 
growing humanitarian crisis. In 2002, we initiated a $1 million 
program to address the growing HIV/AIDS epidemic in Burma by 
funding international non-governmental organizations to 
undertake prevention activities. No assistance is directed to 
the regime.
    The Government of Burma severely abuses the human rights of 
its citizens. There is no real freedom of speech, press, 
assembly, association, or travel. Burmese citizens are not free 
to change their government. Many political prisoners are still 
behind bars. Particularly troubling are the widespread serious 
abuses in ethnic regions including torture, rape, forced labor, 
and forced relocations. Limited but still insufficient steps 
have been taken to counter narcotics productions and 
trafficking. Although opium production has fallen for 6 
consecutive years. Burma remains the second largest producer of 
opium in the world. Burma is also the largest producer of 
methamphetamines in the region.
    The United States continues to monitor the situation in 
Burma closely as developments unfold. We are working with 
countries in the region and other friends and allies toward a 
restoration of democracy. In doing so, we shall not neglect 
urgent humanitarian needs.

                                <greek-d>


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