US embassy cable - 05RANGOON1094

C O N F I D E N T I A L SECTION 01 OF 02 RANGOON 001094 
 
SIPDIS 
 
STATE FOR EAP/MLS; PACOM FOR FPA 
 
E.O. 12958: DECL: 09/26/2015 
TAGS: ECON, ELAB, ETRD, PHUM, PREL, BM, Economy 
SUBJECT: COMMERCE AND LABOR MINISTERS PAINT A ROSY PICTURE 
 
REF: A. 04 RANGOON 1437 
     B. 04 RANGOON 1402 
 
Classified By: CDA Shari Villarosa for Reasons 1.4 (b,d) 
 
1. (C) SUMMARY: In separate introductory calls on the 
Ministers of Commerce and Labor, the Charge heard different 
but equally unrealistic views on Burma's economy and the 
country's labor situation.  The Commerce Minister advanced 
the traditional GOB argument that forced labor is "an 
accepted part of Burmese culture."  The Labor Minister 
claimed, despite evidence to the contrary, that Burma is 
still cooperating with the International Labor Organization 
(ILO) and has educated the public about their rights to 
reduce the number of cases.  Both Ministers complained about 
the impact of sanctions.  They welcomed the Charge's interest 
in traveling around the country, apparently oblivious to the 
likelihood that she will see a very different country than 
the one they seem to be living in.  END SUMMARY. 
 
What Forced Labor? 
------------------ 
 
2. (C) At the Charge's September 23 courtesy call, Commerce 
Minister Brig Gen Tin Naing Thein said that it is the "nature 
of the world" that people suffer, and it is traditional in 
Burmese culture that the people participate in "public 
building projects."  He cited as precedents the building of 
Rome and the Great Wall of China, along with the westward 
expansion of the United States.  The Charge countered that 
people should have the freedom to decide whether to work on 
such projects and not be forced.  She dismissed the practices 
of hundreds and thousands of years ago, pointing out that 
today internationally accepted standards address such labor 
situations.  She urged the Minister to work with ILO on this 
issue. 
 
3. (C) At a similar courtesy call later that day, Labor 
Minister (retired Colonel and former Ambassador to the U.S.) 
U Thaung agreed with the Charge about the value of working 
with the ILO, claiming that the GOB investigates allegations 
of forced labor and that the ILO Liaison Officer in Burma has 
the same freedom of movement as all other UN employees.  "We 
want to eradicate forced labor," U Thaung asserted, 
describing efforts to educate the public about their rights. 
He assured Charge that rural workers could file complaints 
with local labor officials and that the GOB always prosecuted 
those who break the law. 
 
4. (C) Note: The Charge and Emboffs met on September 21 with 
ILO Liaison Officer Richard Horsey.  He observed that while 
the GOB has backed away from recent threats to quit the ILO 
altogether, Burma's overall cooperation on forced labor 
issues had essentially ceased.  Following the June 
International Labor Conference in Geneva, the GOB unleashed a 
nationwide anti-ILO campaign (through its mass-member 
proxies), which has rendered ILO outreach activities inside 
Burma mostly impossible and also led to over two dozen 
anonymous death threats directly at Horsey and his family. 
Although the GOB convicted ten officials on labor charges 
earlier in the year, Horsey said that the anti-ILO rallies 
"send a signal that cooperation is over, and it's back to 
(forced labor) business as usual."  End Note. 
 
Open Doors Locked on the Outside 
-------------------------------- 
 
5. (C) Brig Gen Tin Naing Thein, the Minister of Commerce, 
stated that Burma is open to trade with all other nations, 
primarily through its membership in WTO and regional 
associations, but said the country's "door is closed from the 
outside because of sanctions."  When the Charge pointed out 
that Burma's neighbors had no sanctions, he replied that 
ASEAN trade initiatives do not benefit Burma because they 
focus mostly on investment and trade in finished products and 
raw materials, while Burma's economy is heavily agricultural. 
 Burma is 30-40 years behind other countries, he said, so it 
can't be expected like other ASEAN members to take advantage 
of the benefits of globalization. 
 
6. (C) The Minister admitted that foreign direct investment 
had declined significantly since 2000, and asked for 
recommendations.  The Charge replied that Burma needed to 
develop clear and transparent rules, provide fair and 
impartial courts to resolve disputes, and ensure it had a 
realistic exchange rate.  The Minister responded that private 
companies are free to enter into contracts "with no 
restrictions."  The GOB kept changing trade rules and 
regulations, he asserted, to survive the impact of Western 
sanctions. 
 
A Workers' Paradise 
------------------- 
 
7. (C) Burma, the Labor Minister stressed, needs to transform 
from an agriculture-based economy to a manufacturing nation. 
 Under a new "National Plan," the GOB will establish a 
university, technical college, computer college, and 
hospital in each of twenty-four Regional Zones and will 
develop villages with "complete infrastructure and full 
development services."  To help poor, unskilled workers in 
rural areas, U Thaung said his Ministry is offering localized 
skills training and assistance for displaced garment workers 
to find new jobs.  His Ministry is also working with other 
ministries to develop a comprehensive program to prevent 
human trafficking, for example assisting at border control 
points to identify potential victims. 
 
Comment: Pure Fantasy 
--------------------- 
 
8. (SBU) Brig Gen Tin Naing Thein took over the Ministry of 
Commerce one year ago.  U Thaung became Labor Minister as 
part of the post-Khin Nyunt shake-up in late 2004 (ref A). 
Western diplomats rarely have access to any cabinet-level 
officials, and this was our first meeting with either 
Minister. 
 
9. (C) Both Ministers offered standard GOB views on labor and 
the economy that have little to do with reality.  Do they 
really believe this?  Burmese and foreign businessmen are 
quite vocal with their criticisms.  The ILO talks with anyone 
who will talk to them.  Or are they willfully ignorant?  Over 
and over we hear that no one can deliver bad news to the 
leadership.  These two did not get to be Ministers because 
they have any expertise, but because they are yes men.  So 
they provide happy news while the economy continues to 
steadily deteriorate.  Interestingly, both Ministers welcomed 
the Charge's plans to travel widely around the country.  We 
will cite their approval as we endeavor to provide a more 
realistic picture of developments in Burma.  END COMMENT. 
Villarosa