Wednesday, September 14, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine


Burma’s Business Community Pushes for Lifting of US Sanctions

Posted: 14 Sep 2016 05:44 AM PDT

U Zaw Zaw, chairman of the Max Myanmar Group of Companies, speaks to Reuters during an interview in Rangoon on March 8, 2012. While he remains on a US sanctions list, there is speculation that he could be removed. (Photo: Soe Zeya Tun / Reuters)

U Zaw Zaw, chairman of the Max Myanmar Group of Companies, speaks to Reuters during an interview in Rangoon on March 8, 2012. While he remains on a US sanctions list, there is speculation that he could be removed. (Photo: Soe Zeya Tun / Reuters)

RANGOON — Members within the Burmese business community anticipate a decision on the future of US economic sanctions on Burma during State Counselor Daw Aung San Suu Kyi's official visit to the country this week.

Former general U Shwe Mann—whose son Toe Naing Mann owns several businesses in the financial, agricultural, and communications sectors—shared his own thoughts on the sanctions on Tuesday, expressing his hope that Daw Aung San Suu Kyi will convince the US to lift remaining economic restrictions on the country during her trip to Washington DC.

"I would like Daw Aung San Suu Kyi come back from UK, USA, and UN trips carrying gold and diamond pots for the country and the people," U Shwe Mann wrote on his Facebook page, a reference to a well-known Burmese saying that parents "wish to see the son carrying home a pot of gold."

The State Counselor arrived in the US on Wednesday and American authorities have said that matters related to economic sanctions, economic growth during Burma's transition period, internal peace and ongoing tension in Arakan State will be on the agenda for discussion.

U Khin Shwe, chairman of the Zaykabar Group of Companies, has been on the sanctions list of Specially Designated Nationals (SDN) for more than a decade. He told The Irrawaddy that he hopes Daw Aung San Suu Kyi's trip to the US will result in the lifting of sanctions so that he has the option of working with American investors.

"As long as sanctions are active, we cannot work well. Even other countries are also hesitant to invest here," he said.

"The consequence is if sanctions remain, there will be no new job opportunities and no new investment, so people will suffer it and it could bring us backward. The US will have to take responsibility for this," he said.

U Khin Shwe said US officials have asked him several questions to determine whether he should be removed from the SDN list.

"I've been asked by them about land grabbing—whether I'm still involved or not. I told them I'm no longer involved in it, but nothing has changed," he said.

Even if the SDN list were amended, military-backed businesses would continue to face economic restrictions.

U Thein Tun, chairman of the Tun Foundation and Myanmar Bankers Association, said that some military-backed businesses and arm dealers in particular expect to remain on the sanctions list.

"The US government needs to consider that many businessmen remaining on the sanctions list are doing work internationally, and the country's recent economy is not good. It should consider the situation seriously," he said.

The Irrawaddy spoke with the chairman of the Max Myanmar Group of Companies U Zaw Zaw—also on the SDN list—on Wednesday amid speculation that sanctions against him could be removed. He said it was "too early" to comment.

In the lead-up to Daw Aung San Suu Kyi's trip to the US, Human Rights Watch (HRW) released a statement on Sept. 9 recommending that the US not ease economic sanctions against Burma.

White House deputy national security adviser Ben Rhodes told a conference on Tuesday ahead of Daw Aung San Suu Kyi's visit to Washington DC that "we want to make sure our sanctions are not preventing the type of economic development and investment" that would help people in Burma, Reuters reported.

"We want to get her thinking on what we can do that is most effective in promoting the democratic transition and promoting greater economic growth," Rhodes said.

Rhodes also described several areas of concern in Burma, including constitutional reform, the treatment of the Muslim minority and military interference in politics.

The post Burma's Business Community Pushes for Lifting of US Sanctions appeared first on The Irrawaddy.

Ethnic Civil Society Groups Want US Sanctions on Burma’s Military to Continue

Posted: 14 Sep 2016 05:35 AM PDT

Ethnic Kachin residents of a camp for internally displaced people near the Kachin State capital Myitkyina in July 2015. (Photo: Soe Zeya Tun / Reuters)

Ethnic Kachin residents of a camp for internally displaced people near the Kachin State capital Myitkyina in July 2015. (Photo: Soe Zeya Tun / Reuters)

RANGOON — Ethnic civil society groups have urged the US government to keep targeted sanctions on the military and its related entities until it complies with democratic norms and respects human rights.

The US-based civic group Kachin Alliance expressed concern that the administration of US President Barack Obama might further ease or lift remaining sanctions against Burma during State Counselor Daw Aung San Suu Kyi's visit this week.

In an open letter dated Monday, the organization said it strongly believes that removing the remaining targeted sanctions on the military, along with its related entities and cronies listed on the Office of Foreign Assets Control's (OFAC) Specially Designated Nationals (SDN) roster, and deepening engagement with the Burma Army, would be gravely premature.

Daw Aung San Suu Kyi arrived in Washington DC on Tuesday evening local time and will meet President Obama and other US officials on Wednesday. The lifting of targeted US sanctions is thought to be high on the agenda.

The country's first democratically elected, civilian-led government in over fifty years took power in March this year after the National League for Democracy (NLD) led by Daw Aung San Suu Kyi won a landslide victory in the 2015 general election. The government initiated the 21st Century Panglong peace conference last month as the first step toward national reconciliation and political dialogue between the government, the military and ethnic armed groups.

Despite ongoing peace talks, begun in 2011 under the previous government, conflict between the Burma Army and the country's ethnic armed groups continues. The resumed war between the Burma Army and the Kachin Independence Army, now in its sixth year, has led to the displacement of 120,000 people, now living in 167 camps across Kachin and northern Shan states, the group said.

Kachin Alliance highlighted a number of atrocities committed by Burma Army soldiers that have not been brought to justice. They mentioned the case of Sumlut Roi Ja, a 28-year-old Kachin mother of one who was abducted by soldiers in Oct. 2011, and Gum Seng Awng, a 19-year-old student who was shot dead by two soldiers in June this year.

"We would like to urge the United States to keep the sanctions intact until there is compelling evidence that the Tatmadaw [Burma Army] complies with international standards of human rights, adheres to democratic norms, reaches agreeable terms with armed ethnic organizations, and is overseen by the elected civilian government," said the letter.

The military still holds significant power in Burma's parliament, keeping one quarter of the seats, and controls the ministries of home affairs, defense, and border affairs, as granted by the military-drafted 2008 constitution.

Kachin Alliance also called for sanctions on persons featured on the SDN list to remain in place until they demonstrate a clear intention to relinquish their large land holdings and mining concessions in ethnic areas, unjustly acquired through land-grabs and cronyism.

Lway Cherry of the Ta'ang Women's Organization (TWO) also told The Irrawaddy that it is not yet time to ease sanctions on the military and its related enterprises because armed clashes, human right violations, and sexual violence against women in conflict areas continues.

TWO is drawn from the Ta'ang ethnic minority, also known as the Palaung, who are concentrated in northern Shan State. In recent months this area has seen fighting between the Ta'ang National Liberation Army, the Burma Army, and a Shan ethnic armed group, the Shan State Army-South. The conflict has displaced several thousand people and all three armies have been accused of rights violations including abducting, torturing and murdering civilians.

"The US should keep the sanctions until there is a genuine federal system providing equal rights to ethnic minorities." she said.

The post Ethnic Civil Society Groups Want US Sanctions on Burma's Military to Continue appeared first on The Irrawaddy.

Tourism Ministry Warns Guesthouses Against Hosting Foreign Travelers

Posted: 14 Sep 2016 05:11 AM PDT

A road leading to the hotel zone in Bagan. (Photo: The Irrawaddy)

A road leading to the hotel zone in Bagan. (Photo: The Irrawaddy)

NAYPYIDAW — The Ministry of Hotels and Tourism has warned that it would take legal action against guesthouses that host foreign travelers without proper licenses.

A hotels and tourism law bans guesthouses that operate with municipal permits from accommodating foreign travelers, according to U Myint Htwe, a director within the ministry.

"The ministry has issued a law that bans unlicensed guesthouses and guesthouses licensed by departments other than the hotels and tourism ministry from catering to foreign travelers," said U Myint Htwe.

Hotels must apply for licenses from the ministry, but guesthouses do not need to seek ministry approval and can apply for permits from concerned township development committees or departments.

The ministry issued instructions earlier this month to municipal guesthouses stating that they should only use Burmese language signs so that tourists would not understand and would not attempt to stay overnight.

Municipal guesthouse owners that violate the law can be punished with up to three years imprisonment, a fine of 50,000 kyats (US$40), or a combination of the two.

The ministry stated that the instructions were made to provide convenience to foreign travelers.

"Foreign travelers are often very tired and want to rest when they arrive. We explain to them that we aren't allowed to host them but they don't want to listen. And others just want to save money and our rooms are in good enough condition for them," said a guesthouse owner in Pyay Township of Pegu Division who asked to remain anonymous.

According to sources at the hotels and tourism ministry, there are 1,371 licensed hotels in Burma with more than 53,000 rooms.

The Burmese government predicts 5.5 million tourist arrivals this year, with 2.4 million having arrived by the end of August, according to the ministry—although the majority of these are said to be day visitors crossing land borders, who are not normally counted according to international tourism standards, and all visitors—including business travelers—are counted as "tourists."

The post Tourism Ministry Warns Guesthouses Against Hosting Foreign Travelers appeared first on The Irrawaddy.

Arakan State Parliament Debates Proposal Against Kofi Annan-led Commission

Posted: 14 Sep 2016 05:06 AM PDT

The Arakan State parliament in session on Wednesday. (Photo: Marayu / Facebook)

The Arakan State parliament in session on Wednesday. (Photo: Marayu / Facebook)

The Arakan State parliament is debating on Wednesday and Thursday this week a proposal from the Arakan National Party (ANP) to withhold recognition from the new Arakan State Advisory Commission chaired by former UN secretary general Kofi Annan.

Lawmakers from the ANP told The Irrawaddy that the proposal was likely to succeed, because the ANP are the largest party in the Arakan State parliament and can rely on the military representatives and the Union Solidarity and Development Party (USDP) to gain a majority vote.

The Arakan State Advisory Commission was appointed by State Counselor Aung San Suu Kyi last month, and consists of nine members: three international, including Kofi Annan, and six from Burma, including two Buddhist Arakanese, two Muslims, and two government representatives. It is mandated to provide a report within a year, with recommendations on resolving the Buddhist-Muslim conflict, and on meeting humanitarian and development needs.

The legal and practical implications of a vote in the state parliament to withhold recognition are unclear. Under the nominally devolved structures outlined in the 2008 Constitution, powers granted to regional governments and parliaments are limited or vaguely defined.

However, ANP members claim that such a resolution would make it difficult for the advisory commission to gain the cooperation of actors on the ground in Arakan State, and cause the commission's recommendations to be rejected by local stakeholders, frustrating implementation.

The ANP represents the interests of the Arakanese Buddhist majority in the state, and takes a hard line against the granting of citizenship rights to the Rohingya Muslim minority.

Earlier this month, an urgent proposal put forward by the ANP in the Lower House of the Union Parliament, calling for international members of the new advisory commission to be replaced with Burmese experts—arguing that the involvement of international figures amounted to an infringement of Burma's sovereignty—was defeated by votes from the ruling National League for Democracy, although it won the support of military and USDP members.

The ANP's U Kyaw Zwa Oo, who represents the state capital Sittwe, submitted the proposal to the Arakan State parliament on Monday. The parliament approved it for debate the same week.

Lawmakers from the ANP said the central government had failed to consult with locals of Arakan State before forming the advisory commission.

"We will not recognize this commission," said U Kyaw Lwin of the ANP.

U Pe Than, an ANP lawmaker in the Lower House, claimed to The Irrawaddy that, although the state government remains "under the control of the Union government," the state parliament is "independent" of the Union parliament, "according to the constitution"—so its decisions can determine how projects are implemented on the ground.

The Union parliament could not "pressure" the state parliament to recognize, or work with, the Kofi Annan-led advisory commission, he said.

"The state parliament represents locals, not the government. The government has to implement decisions reached by the state parliament. It will have problems in the future if it does not do so," he claimed.

U Pe Than said the state parliament had the power to refuse cooperation with the advisory commission, and recognition of its recommendations. "The commission will have problems working on the ground if there is no cooperation with the state parliament," he said.

The commission would be "powerless" in such a situation, he went on, and receive the opposition of locals, who would then pressure the state government to sideline it.

Several hundred local residents emerged to protest the arrival of Kofi Annan and his fellow commission members in Sittwe last week, at the instigation of the ANP.

Buddhist-Muslim conflict broke out in Arakan State in 2012, recurring in 2013 and displacing up to 140,000 people, overwhelmingly Muslim Rohingya, most of whom remain confined to squalid camps with limited access to public services. This has prompted sustained criticism from foreign governments, the United Nations and the international human rights community.

The post Arakan State Parliament Debates Proposal Against Kofi Annan-led Commission appeared first on The Irrawaddy.

KNU Tells Burma Army to Cease Hostilities in Karen State

Posted: 14 Sep 2016 04:09 AM PDT

Karen National Liberation Army (KNLA) troops pictured at a frontline base in Papun District, Karen State. (Photo: Saw Yan Naing / The Irrawaddy)

Karen National Liberation Army (KNLA) troops pictured at a frontline base in Papun District, Karen State. (Photo: Saw Yan Naing / The Irrawaddy)

CHIANG MAI, Thailand — The largest ethnic Karen armed organization, the Karen National Union (KNU), has called on the Burma Army and a Tatmadaw-backed militia, the Border Guard Force (BGF), to cease ongoing military activity in Karen State, saying  it could affect the peace process.

The KNU statement, released on Tuesday, comes after more than 3,000 Karen villagers fled their homes last weekend due to clashes between a splinter group of the Democratic Karen Buddhist Army (DKBA) and joint forces of Burma Army and the BGF in the Mae Tha Waw and Myaing Gyi Ngu areas of Hlaingbwe Township.

The KNU raised concerns that ongoing conflict could increase mistrust of the Burma Army among the Karen public and disrupt the country's peace process.

"There has been a lot of misery and disruption of stability and peace," the statement read. "For that reason, we protest military activity by the Burma Army and the BGF forces in an area which is adjacent to the KNU-administered Hpa-an and Papun districts."

The KNU said that it has given priority to the peace process and has been working with the government and the Burma Army, but as the military activity was initiated by the Burma Army and the BGF in nearby KNU-controlled territories—during the ongoing peace process—such acts could in turn affect trust building between the Burma Army and the KNU.

The KNU is the political wing of the Karen National Liberation Army (KNLA) and one of eight non-state ethnic armed organizations that signed last year's National Ceasefire Agreement (NCA) with the former government.

Saw Thaw Thee Bwe, joint secretary of the KNU, told The Irrawaddy: "The current conflict in KNU territories could grow. If there is a misunderstanding, fighting could intensify and spread to other areas. We want concerned parties to stop the fighting as it is causing suffering to civilians."

"Since the BGF depends on the Burma Army, we especially want to urge the government army to stop military activity in order to maintain stability and peace. We need trust from the people," said Saw Thaw Thee Bwe.

He also said that two days before releasing the statement, the KNU informed the National Reconciliation and Peace Center (NRPC), chaired by State Counselor Aung San Suu Kyi as well as government military officials, of its concerns, but has so far received no response.

He said that the KNU do not want the conflict to escalate and that leaders are committed to the peace process, "but if military activity spreads into our territories, we can't promise anything."

There are KNLA bases near the conflict-torn Mae Tha Waw area including KNLA Brigade 7 troops and the new headquarters of the KNU Lay Wah, also known as Law Khee Lar, to the south. KNLA Brigade 5 troops are stationed to the north in Papun District where the Moei River meets the Salween River.

"Several armed groups, including our own troops, occupy the area. Problems could easily escalate if more groups become involved," said Saw Thaw Thee Bwe.

Fighting in the area of Mae Tha Waw came after the DKBA splinter group announced in late August after the death of the group's leader, Maj. Na Ma Kyar, that they would escalate frontline battles if the Burma Army and the BGF kept harassing their troops.

Two officers in the Na Ma Kyar splinter faction, Maj. Saw San Aung and Lt. Kyaw Thet, are on the same Burma Army wanted list as the deceased Maj. Na Ma Kyar, from whom the group takes its name.

Asked whether he thought the Burma Army had hidden motives behind their current offensives, Saw Tha Thee Bwe said that the situation could be contained as long as they only target DKBA leaders on Burma Army's arrest warrant list. Saw Tha Thee Bwe said that things will become complicated if the Burma Army is interested in more than just targeting the DKBA leaders.

There are Burma Army, its ally BGF, the DKBA splinter group, and KNLA troops in Mae Tha Waw region which is adjacent to KNU controlled territories in Hpa-an and Papun District, Karen State.

Those civilians who have fled conflict in the Mae Tha Waw have sought refuge in Myaing Gyi Ngu village in Hlaingbwe Township. Several dozen have also fled to villages across the Thai border in Tha Song Yang District.

The post KNU Tells Burma Army to Cease Hostilities in Karen State appeared first on The Irrawaddy.

US Senate’s Burma Act Balances Economic and Political Development

Posted: 14 Sep 2016 12:34 AM PDT

 US Senator John McCain speaks to reporters during a visit to Burma in January 2012. (Photo: The Irrawaddy)

US Senator John McCain speaks to reporters during a visit to Burma in January 2012. (Photo: The Irrawaddy)

RANGOON — The United States Senate Committee on Foreign Relations announced legislation on Wednesday to support Burma's economic growth while addressing the country's human rights issues and need for constitutional reform and national reconciliation.

The Burma Strategy Act of 2016 covers economic assistance, military cooperation, US investment, reforming Burma's extractive industries, and US sanctions, according to a statement released by the US Senate.

Senior US senators Ben Cardin, ranking member of the Committee on Foreign Relations, and John McCain, chairman of the Committee on Armed Services, launched the Act of 2016. Both senators will meet with Burma's State Counselor and Foreign Minister Daw Aung San Suu Kyi during her visit to Washington DC this week.

Senator Cardin said the legislation looks to "build on Burma's progress while being clear-eyed about lingering concerns regarding human rights, the plight of the Rohingya, the role of the military in Burmese society and politics, ethnic and national reconciliation, broad-based economic development, and the constitutional reform necessary to facilitate and complete Burma's transition," according to the statement.

The legislation sets out "guidelines and benchmarks" for relieving sanctions based on the US Secretary of State's assessment of progress on key criteria including democracy, good governance, ethnic reconciliation, legal reforms and the treatment of military-owned enterprises.

The Act authorizes economic assistance to civil society organizations and humanitarian projects and calls on international financial institutions to encourage transparency and accountability in Burma.

It announces the creation of a Burma-American Development Fund to fuel private sector investment in companies that reach international standards for labor, the environment, transparency, corruption, and human rights.

The Act also authorizes limited military to military cooperation, particularly in regards to Burma's peace process. A Gemstone Strategy Report will support efforts by the National League of Democracy-led government to bring good governance to the mining industry, the statement says.

"This legislation seeks to usher in a new era of relations between our two countries that will support continued progress towards democracy, human rights and peace for the Burmese people," Senator McCain said. "I look forward to discussing how we can strengthen our ties during Aung San Suu Kyi's historic visit to Washington this week."

The post US Senate's Burma Act Balances Economic and Political Development appeared first on The Irrawaddy.

White House: US Sanctions on Burma Must Not Prevent Investment

Posted: 13 Sep 2016 10:30 PM PDT

US President Barack Obama greets Burma's State Counselor Daw Aung San Suu Kyi during the Asean-US Summit in Vientiane, Laos, September 8, 2016. (Photo: Reuters)

US President Barack Obama greets Burma's State Counselor Daw Aung San Suu Kyi during the Asean-US Summit in Vientiane, Laos, September 8, 2016. (Photo: Reuters)

WASHINGTON DC, United States — US President Barack Obama will consult with Burma's State Counselor and Foreign Minister Daw Aung San Suu Kyi during her visit on Wednesday on whether to further ease US sanctions to help investment and the democratic transition in Burma, the White House has said.

The US eased some sanctions against Burma earlier this year to support political reform but maintained most of its economic restrictions with an eye toward penalizing those it views as hampering the democratically elected government.

"We want to make sure our sanctions are not preventing the type of economic development and investment" that would help the people of Burma, White House deputy national security adviser Ben Rhodes told a conference on Tuesday ahead of Daw Aung San Suu Kyi's visit to Washington DC.

"We want to get her thinking on what we can do that is most effective in promoting the democratic transition and promoting greater economic growth," he said.

Rhodes listed several areas of concern in Burma that needed to be addressed, including constitutional reform, the treatment of the Muslim minority and military interference in politics.

Waiting for all of those problems to be resolved could mean the sanctions would not be lifted for another decade, he said.

Rhodes noted US officials often are told that the sanctions had a "chilling" effect on investment and they have been a frustration and a concern for US businesses worried that they might inadvertently trade with a blacklisted person or entity.

Rhodes said decisions on lifting sanctions would seek to balance the need to show that more work needs to be done while also giving credit to Burma’s democratic progress.

Rhodes stressed that certain restrictions would remain, including on engagements with the military, given its "outsize" role in politics.

Some of the remaining sanctions are the result of executive order, meaning that they can be undone by the president, while others were brought about by congressional legislation and can be removed only by such action.

Senior US senators planned on Tuesday to introduce legislation to preserve a focus on human rights issues in Burma, amid expectations that the Obama administration will further ease or lift sanctions

According to a summary seen by Reuters, the legislation sets "benchmarks and guidelines" on sanctions relief, by calling on the US Secretary of State to assess and make recommendations regarding modifying or lifting sanctions, with a focus on issues such as democracy and ethnic reconciliation.

The legislation authorizes economic assistance to support civil society organizations and provide humanitarian assistance. It also creates a Burma-America Development Fund to provide incentives for private sector investment in the country.

It also authorizes limited military-to-military engagement between the United States and Burma and calls for a report on the country’s gemstone industry.

Daw Aung San Suu Kyi, a Nobel Peace Prize laureate, meets Obama at the White House on Wednesday in what is likely to be their last meeting of his presidency.

She is barred from holding Burma's presidency by a junta-drafted constitution but holds several government posts including state counselor and foreign minister.

Daw Aung San Suu Kyi helped persuade the West to impose sanctions during her years as an opposition leader under house arrest. Now she is seeking to balance illustrating the economic rewards of a democratic transition while keeping pressure on her country's still powerful generals for more reform.

The post White House: US Sanctions on Burma Must Not Prevent Investment appeared first on The Irrawaddy.

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