U.S. closes loopholes in sanctions
Mizzima News (www.mizzima.com)
December 12, 2007 - United States sanctions on the economic interests of Burma's generals and companies conducting business in Burma are one step closer to being further strengthened, following the House of Representatives unanimous vote in favor of the JADE Act.
The Block Burmese JADE (Junta's Anti-Democratic Efforts) Act, while focusing its attention on the trade of gemstones originating from Burma, looks to close significant holes existing in current sanctions policy.
"Millions of dollars in gemstones that are exported from Burma ultimately enter the United States but the Burmese regime attempts to conceal the origin of the gemstones in an effort to evade the sanctions in the Burmese Freedom and Democracy Act of 2003," according to the legislation.
"Burma's generals fund this repression of their own people by selling off the country's natural resources, especially oil and gems, leaving the Burmese people in poverty," said Democratic Representative Tom Lantos, sponsor of the bill and Chairman of the House Committee on Foreign Relations.
If passed, the bill will ban the import of all gems originating from Burma.
In justification of the need for this bill, the House Committee on Foreign Relations states that while Burma is known to supply 90 percent of the world's rubies; only three percent of rubies entering the United States are listed as coming from Burma.
Further, 99 percent of a stone's value is said to come from the stone itself, with labor accounting for a mere one percent of the value. Therefore supporters of the legislation argue that the bill effectively targets economic interests of the Burmese state without significantly impacting the daily livelihood of Burma's citizens.
The Jewelers of America, representing over 11,000 stores nationwide, and several major retailers, have lent their support to the Act.
Another significant aspect of the bill is its targeting of the economic interests of Chevron Corporation, an American company actively engaged in the exploitation of Burma's energy resources.
The JADE Act will terminate tax deductions for Chevron's Burma investments. A move that it is hoped will prompt a domino effect among Chevron and its partners in Burma to desist in operations inside Burma due to rising costs and economic restrictions.
The regime's ability to make use of money laundering activities will also be negatively impacted by passage of the Act, in addition to a further freeze on assets associated with Burma's generals.
"The peaceful protesters of Burma are human rights heroes, and the reprehensible military dictators ruling them deserve to be nothing less than international pariahs for their dismal human rights record," reads a statement from Lantos' office. "I am deeply grateful that my colleagues on both sides of the aisle stood together today, shoulder-to-shoulder with the Burmese people as they struggle for freedom."
Upon final passage of the Act, Congressional annual review and renewal of the Burmese Freedom and Democracy Act of 2003 will no longer be necessary.
