BURMA/PRESSURE

[moe@xxxxxxxxxxxxx]

DATE=5/12/97
TYPE=BACKGROUND REPORT
NUMBER=5-36394
TITLE=BURMA/PRESSURE
BYLINE=DAN ROBINSON
DATELINE=WASHINGTON
CONTENT=
VOICED AT: 

INTRO:  THIS WEEK, THE NEW YORK CITY COUNCIL IS SCHEDULED TO 
DECIDE WHETHER TO BAN FINANCIAL DEALINGS WITH COMPANIES THAT DO 
BUSINESS IN BURMA.  ACTIVISTS SEEKING TO DRAW ATTENTION TO HUMAN 
RIGHTS AND POLITICAL PROBLEMS IN BURMA SAY THE NEW YORK VOTE 
(WEDNESDAY) IS THE MOST IMPORTANT IN A "SELECTIVE PURCHASING" 
CAMPAIGN THAT HAS SPREAD ACROSS THE COUNTRY.  V-O-A'S DAN 
ROBINSON REPORTS, THAT CAMPAIGN APPEARS TO HAVE BENEFITED FROM 
PRESIDENT CLINTON'S DECISION TO IMPOSE NEW ECONOMIC SANCTIONS ON 
BURMA:

TEXT:  THE BURMA ACTIVIST COMMUNITY IS CONFIDENT THAT "BILL 647" 
WILL BE APPROVED, MARKING A BIG VICTORY IN THE SELECTIVE 
PURCHASING CAMPAIGN THAT HAS RECENTLY GAINED MOMENTUM.

THE BILL WOULD PROHIBIT NEW YORK CITY FROM SIGNING CONTRACTS WITH
COMPANIES AND BANKS DOING BUSINESS IN BURMA, AND PREVENT CITY 
AGENCIES FROM USING VENDORS WHO HAVE RELATIONSHIPS OR INVESTMENTS
IN THE COUNTRY.  NINA RESNICK SPEAKS FOR THE NEW YORK "BURMA 
SUPPORT GROUP":

                      /// RESNICK ACT ///  

         THERE ARE SOME CONTRACTS THAT NEW YORK CITY ALREADY HAS 
         WITH COMPANIES WHO DO BUSINESS IN BURMA, WHICH OF COURSE
         THE BILL WOULD DIRECTLY EFFECT, AND IT IS THOUGHT IT 
         WILL HAVE AN IMPACT ON THOSE COMPANIES THAT THINK THEY 
         MIGHT WANT TO DO BUSINESS WITH THE CITY IN THE FUTURE, 
         OR WHO HAVE LARGE BUSINESSES IN THE UNITED STATES, THAT 
         IT WOULD DETER THEM FROM CONTINUING TO DEAL WITH BURMA.

                         /// END ACT ///

THE BILL HAS THE SUPPORT OF CITY COUNCIL PRESIDENT PETER VALLONE.
HE SAYS NEW YORK CITY'S HUGE 34-BILLION DOLLAR BUDGET HAS OFTEN 
ENABLED IT TO HAVE AN IMPACT ON IMPORTANT POLITICAL AND HUMAN 
RIGHTS ISSUES:

                      /// VALLONE ACT ///  

         OUR POWER IN NEW YORK CITY, ONLY HAS TO DO WITH TAX 
         DOLLARS IN NEW YORK CITY -- WHICH ARE SUBSTANTIAL.  BUT 
         WE ALSO CAN REFUSE TO DO BUSINESS WITH ANY CORPORATIONS 
         THAT DO BUSINESS IN THESE COUNTRIES WHICH IS A 
         TREMENDOUS THING BECAUSE JUST ABOUT EVERY CORPORATION IN
         THE WORLD DOES BUSINESS IN THE CITY OF NEW YORK AND DOES
         BUSINESS, FOR INSTANCE, IN A COUNTRY LIKE SAUDI ARABIA, 
         OR CHINA WHERE THEY ARE LOOKING TO CREATE MORE BUSINESS.

                         /// END ACT ///

// OPT // IN PARTICULAR, MR. VALLONE CITES SIMILAR ACTIONS TAKEN 
BY NEW YORK CITY TO HELP HASTEN THE END OF APARTHEID IN SOUTH 
AFRICA, AND MORE RECENTLY ITS IMPACT ON THE SITUATION IN NORTHERN
IRELAND. // END OPT // 

IF THE BILL IS APPROVED, NEW YORK WOULD JOIN AT LEAST A DOZEN 
OTHER CITIES AND STATES -- AMONG THEM SAN FRANCISCO AND 
MASSACHUSETTS -- THAT HAVE ENACTED SELECTIVE PURCHASING LAWS 
CONCERNING BURMA.

RECENTLY, THE COLORADO SENATE APPROVED A RESOLUTION CALLING FOR 
THE STATE TO DISCOURAGE PURCHASING OF GOODS OR SERVICES FROM 
BUSINESSES ACTIVE IN BURMA.  SIMILAR BILLS HAVE BEEN INTRODUCED 
IN THE TEXAS AND CALIFORNIA LEGISLATURES. 

ALSO CONTINUING ARE MOVES TO PRESSURE THREE U-S OIL COMPANIES -- 
UNOCAL, ARCO AND TEXACO -- TO GET OUT OF MILITARY-RULED BURMA OR 
TO HAVE THEM ACCEPT "RULES OF ETHICS" FOR FUTURE FOREIGN 
INVESTMENT.   

AT THE RECENT ARCO SHAREHOLDERS MEETING IN TEXAS, A RESOLUTION 
CHALLENGING ARCO'S PRESENCE IN BURMA RECEIVED NINE PERCENT OF 
SHAREHOLDER VOTES.  THAT IS ONLY A SLIGHT INCREASE IN SUPPORT, 
BUT ONE THAT ENSURES THE ISSUE WILL APPEAR ON NEXT YEAR'S AGENDA.
SIMON BILLENNESS IS AN INVESTMENT BANKER AND CRITIC OF BURMA'S 
MILITARY GOVERNMENT:

                     /// BILLENNESS ACT ///  

         I THINK WHAT WE WERE ABLE TO DO WAS TO CONTINUE TO KEEP 
         THE ISSUE OF BURMA ON ARCO'S AGENDA, AND CONTINUE TO LET
         ARCO KNOW THAT THE PRESSURE IS JUST GOING TO CONTINUE, 
         WHETHER IT BE FROM SHAREHOLDERS, FROM CONSUMERS 
         BOYCOTTING THEIR PRODUCTS, FROM STATE AND LOCAL 
         SELECTIVE PURCHASING LAWS, OR FROM POSSIBLE LAWSUITS AND
         FUTURE FURTHER FEDERAL SANCTIONS.

                         /// END ACT ///

LIKE UNOCAL, WHICH HAS THE LARGEST (U-S) INVESTMENT STAKE IN 
BURMA, ARCO OFFICIALS SAY ENGAGEMENT --  N O T   ISOLATION -- 
WILL HELP BRING ABOUT CONDITIONS FOR DEMOCRACY AND GROWTH.  
HOWEVER, ARCO CHIEF EXECUTIVE MIKE BOWLIN WAS QUOTED AS SAYING HE
COULD "MAKE NO EXCUSES" FOR HOW THE BURMESE MILITARY GOVERNMENT 
TREATS ITS OWN PEOPLE.

BURMA'S MILITARY GOVERNMENT RIDICULES BOTH SELECTIVE PURCHASING 
EFFORTS IN THE UNITED STATES AND THE RECENT U-S SANCTIONS MOVE 
AGAINST BURMA.  THE RULING STATE LAW AND ORDER RESTORATION 
COUNCIL (SLORC) SAYS OTHER COMPANIES WILL CONTINUE TO INVEST IN 
BURMA EVEN IF AMERICAN FIRMS PULL OUT. (SIGNED)

NEB/DAR/PT