Daily News- April 16 - 2003- Wednesday
  • BAT's Broughton left fuming after double-fronted attack at AGM
  • US retailers back import ban on Burma
  • Myanmar bank crisis affects trade in Moreh
  • U.S Congressman Criticizes Burma for Arrest of Professor


    • BAT's Broughton left fuming after double-fronted attack at AGM

    By Katherine Griffiths
    Independent, UK

    British American Tobacco yesterday came under heavy fire from a variety of camps at its annual general meeting, from pressure groups attacking its human rights record to corporate governance lobbyists highlighting its breach of rules seen as best practice in the City.

    The company had a rocky ride at the AGM, where the pressure group Burma Campaign UK lashed out at its decision to maintain a factory in Burma, whose regime is seen as one of the most oppressive in the world.

    John Jackson, the director of Burma Campaign UK, claimed his group had caused Ken Clarke, BAT's deputy chairman and the former Conservative chancellor, "squirming in his Hush Puppies".

    "Ken Clarke admitted he is happy to keep doing business with the dictatorship in Burma, regardless of moral questions," Mr Jackson said.

    BAT is also being pursued by Ash, the anti- smoking lobby, for its refusal to disclose details of an investigation into the company by the Department of Trade and Industry over its record on minimising the international smuggling of tobacco.

    A spokesperson for Ash said: "There was nothing to reflect the gravity of this situation. It is very unsatisfactory that shareholders should not be kept informed."

    BAT also found itself in hot water with some shareholder pressure groups. Pirc, the investor advisory service, said it opposed the company's donations to US political parties. It also pointed out that Martin Broughton, BAT's executive chairman, contravened Derek Higgs' recent report on corporate governance because he stepped into the role from being chief executive of the company.

    Mr Broughton hit back, telling the AGM that Mr Higgs' project contained some "ridiculous" recommendations.He said some of the recommendations in the review, which was published in January, are potentially harming rather than improving corporate governance."The proposal that a chairman should not chair the nominations committee, as I and most other chairman do, is simply ridiculous," he said.

    A BAT spokesperson defended its business record in Burma, saying: "Burma Campaign thinks we should close the factory and sack 500 employees. In our view undermining the Burmese regime is a political objective and should be pursued through political channels."

    BAT also pointed out that the DTI itself had stipulated that itsinvestigation into smuggling was confidential.

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    US retailers back import ban on Burma

    By Edward Alden in Washington
    Financial Times, UK

    US clothing makers and retailers announced on Tuesday their support for an "immediate and total ban" on all imports from Burma, a decision that could cripple one of the Burmese regime's largest sources of foreign currency earnings.

    The American Apparel and Footwear Association called on the US government to declare an import ban because of continued human rights violations in Burma, and said the issue "should be met with condemnation not only from the international public community but from private industry as well".

    The move follows decisions over the past year by more than 40 of the largest US clothing sellers to end their purchases of apparel made in Burma. May Department Stores, which owns chains such as Hecht's and Lord & Taylor, became the latest company to do so last month, following decisions by groups such as Wal-Mart and Federated Department Stores, which owns Macy's and Bloomingdales.

    The actions on Burma are the strongest example yet of how pressure from anti- sweatshop and other human rights activists has forced retailers to change their buying practices even while governments have continued to encourage trade.

    In 2000, the International Labour Organisation called on countries to consider new sanctions against Burma, urging members to ensure that their trade with Burma did not "perpetuate the system of forced or compulsory labour in that country".

    But the ILO's call resulted in no new measures against Burma, despite a deterioration in its human rights record. Lorne Craner, assistant secretary of state for human rights, said in February the Burmese regime's "disregard for human rights and democracy extends to every conceivable category of violation".

    The US government imposed a ban on US investment in Burma in 1997, but the US remains one of the country's five largest trading partners. From 1994 to 2000 apparel exports to the US grew by 800 per cent, accounting for about 65 per cent of Burma's clothing exports. While the US administration says it supports sanctions against Burma, an outright ban on trade would probably fall foul of World Trade Organisation rules, because Burma remains a WTO member.

    Some members of the US Congress have called for a ban on trade with Burma, but the measure has yet to be put to a vote.

    Despite Washington's reluctance, actions by US retailers have hampered trade with Burma. Burmese clothing exports to the US dropped 27 per cent, from $411m to $303m (?280m, £193m), between 2001 and 2002.

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    Myanmar bank crisis affects trade in Moreh

    The Telegraph,India

    Guwahati : A crisis in the banking system in Myanmar, coupled with the depreciation in the value of the kyat, has affected border trade with India, both official and illicit.

    Traders in the Myanmarese town of Tamu are deeply concerned over the banking crisis, which started in Myanmar in February following the alleged withdrawal of large sums of money by some private firms. This resulted in the closure of some leading banks of Myanmar.

    The closure of the Myanmar Economic Bank in Tamu, in particular, caused severe hardship to traders. Myanmarese traders want the governments of both countries to take measures to ease the problem.

    Pro-democracy Myanmarese dissidents based in India said their country’s economy has been sinking owing to the mismanagement of Myanmar’s resources by the State Peace and Development Council (SPDC), which is the official name of the military junta.

    Myanmarese dissidents here further alleged that only a small quantity of goods worth Rs 10,000 is allowed to cross the border. Traders in the Indian border town of Moreh have not even been paid their pending dues by their Myanmarese counterparts.

    However, Myanmarese traders are unable seek redressal from the military authorities as they fear reprisal, according to Burmese News International which belongs to a pro- democracy group.

    The Namphalong market, considered the main economic centre of Tamu, is in dire straits in view of the bank crisis. Manipur government officials, however, have apprised the Union commerce ministry.

    In a bid to solve the ongoing bank crisis, Myanmarese traders had even convened a meeting in Tamu last month. Many Indian traders were invited to the meeting.

    The value of the Myanmarese currency, the kyat, has fallen drastically in the past 14 years. The current bank crisis has further threatened the kyat and its value may dip again.

    A Tamil businessman in Moreh town said the volume of exports and imports has been sliding during the past few years due to various trade restrictions imposed by the military regime inside Myanmar.

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    U.S Congressman Criticizes Burma for Arrest of Professor

    Source : The Office of International Information Programs, U.S.Department of State

    Following is the text of Burns' remarks:

    (begin text)

    UNLAWFUL IMPRISONMENT OF DR. SALAI TUN THAN BY THE BURMESE GOVERNMENT

    Representative Max Burns of Georgia
    House of Representatives
    April 09, 2003
    Mr. BURNS. Mr. Speaker, I rise today to speak on a matter of great importance to my constituents in Athens, Georgia, the unlawful imprisonment of Dr. Salai Tun Than. Dr. Tun Than is a graduate of the University of Georgia and is being held as a political prisoner by the Burmese Government for making a pro-democracy speech. He is 74 years old, in poor health, and may not live through the ordeal of imprisonment. The Burmese Government is a military dictatorship. It does not respect the individual freedoms that we as Americans hold dear. Matthew Daley, the State Department chief for the Bureau of East Asia and the Pacific testified on the conditions in Burma before the House Committee on International Relations last month. He said: ``The military dictatorship in Burma severely abuses the human rights of its citizens. There is no real freedom of speech, press, assembly, association, or travel. Patterns of abuse are even worse in ethnic minority areas.''

    Mr. Speaker, the situation in Burma is unacceptable. We must work to stop this regime from imprisoning political dissidents and work toward a freer nation for all Burmese citizens. I call on the Burmese Government for the immediate release of Dr. Salai Tun Than.

    (end text)

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