U.S. Relations with the People's Republic of China (2005)

U.S. Department of State

Conditions in Burma and U.S. Policy Toward Burma for the Period March 28 - September 27, 2005

Bureau of East Asian and Pacific Affairs
Released to Congress October 11, 2005

Introduction and Summary

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The United States will continue to urge other nations to use sanctions and diplomacy to press the junta to release all political prisoners and to allow all political parties to operate freely. The United States also encourages all countries with a major interest in Burma, particularly Burma's immediate neighbors China, India, and Thailand, as well as other ASEAN members and Japan, to use their influence with the government to urge it to take immediate steps on political reform and human rights. We will continue to urge the international community to support the UN Secretary General in his efforts to start meaningful talks on a political transition in Burma and to support UN efforts to improve the dismal human rights situation.

I. Measuring Progress Toward Democratization

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Although the junta has not set a firm timetable for completing its "road map," it continued to seek support for the process from countries in the region. On July 26, Burma relinquished its scheduled chairmanship of ASEAN in 2006, citing a need to focus on the national reconciliation process. Some ASEAN governments had privately pressured Burma to give up the chairmanship for the good of the organization, a significant undertaking given ASEAN's reluctance to interfere in the internal affairs of its member states. Despite this success, ASEAN members have not publicly urged the GOB to address Burma's internal political situation. Foreign Minister Nyan Win attended the ASEAN Post-Ministerial Conference and ASEAN Regional Forum meetings in Laos in July, 2005. In neither forum was the GOB publicly criticized for its detention of Aung San Suu Kyi or its continuing abuses of human rights. The ARF Chairman's Statement did express "concern at the pace of the democratization process" and called "for the lifting of restrictions and for effective dialogue with all parties concerned." Senior GOB ministers visited India, ASEAN capitals, and China during the last six months.

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II. The Quality of Life in Burma

(Economy)

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Chronic economic policy mismanagement and a resultant poor business and investment climate continued to be the primary reasons for Burma's dismal economic performance. Despite GOB claims of 13.8 percent economic growth in FY 2004-05 (April-March), most foreign observers saw scant evidence of real economic expansion. Little new foreign investment entered the country during this period, though interest by Korean, Indian, and Chinese firms in the power and energy sectors increased, including in new offshore oil and gas exploration. China continued investing in infrastructure and commercial activities and remained a strong market for Burmese wood and wood products.

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III. Development of a Multilateral Strategy

On August 18, the Global Fund to Fight AIDS, Tuberculosis and Malaria terminated its grant agreement with the United Nations Development Program to combat the three diseases in Burma, citing the GOB's failure to facilitate access to project sites. Similarly, there are concerns regarding the emergence of other health threats, in particular, Avian Influenza (AI). Thus far, Burma has not reported any cases of AI, but it remains at risk due to its close proximity to affected countries. The junta's lack of cooperation with the international community set back efforts to fight infectious diseases and provide other humanitarian assistance, and is symbolic of its low regard for health and education issues.

Immediate U.S. policy objectives in Burma remained securing the release of Aung San Suu Kyi, U Tin Oo, Hkun Htun Oo, and all other political prisoners and encouraging a genuine dialogue on democratic political reform, including the re-opening of all NLD offices. The United States continued its efforts to encourage all countries with a major interest in Burma, particularly Burma's immediate neighbors China, India, and Thailand as well as other ASEAN members and Japan, to use their influence to convince Burma's leaders to take these steps, noting that future regional stability requires the SPDC to take more constructive positions on political dialogue, economic reform, and the institution of rule of law. Privately, most countries in the region continued to express similar concerns, and agreed the SPDC must work with the democratic opposition in order to effect a smooth political transition. ASEAN members have, however, not publicly called on the GOB to address Burma's internal political situation.

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