Japan's Position Regarding
the Situation in Myanmar

March, 1997

Ever since 1988, when the military-dominated State Law and Order Restoration Council (SLORC) seized power in Myanmar, the international community has taken a keen interest in human rights and democratization in that country. The recent tension between SLORC and the pro-democracy forces led by Aung San Suu Kyi has also caused concern in the international community. Following are the views and policies of the Government of Japan regarding the situation in Myanmar.


Japan's Attitude Toward the Recent Situation in Myanmar

The situation in Myanmar has become increasingly uncertain in recent months. In November 1996 officials of Suu Kyi's National League for Democracy (NLD) were attacked by a mob, and in December there were antigovernment student demonstrations and bombing incidents in Yangon. Japan is closely watching the overall situation with concern. The Government of Japan believes that the present regime in Myanmar should demonstrate visible efforts to progress steadily toward democratization and to improve human rights. Its basic position is that any attempt to turn back the tide of democratization cannot be overlooked.

Japan's Policy Toward Myanmar

Japan has traditional ties with Myanmar and is engaged in various forms of dialogue with both SLORC and the pro-democracy forces led by Aung San Suu Kyi. Japan's policy is to promote democratization and human rights not by isolating Myanmar but by working patiently and persistently for improvements through ongoing dialogue with the present regime. Through various channels, the Government of Japan has been urging the Myanmar authorities to strive to achieve an early transition to a civilian government and to improve the situation with respect to human rights. Specifically, when the foreign ministers of Japan and Myanmar met in Jakarta in July 1996, Japan's Yukihiko Ikeda made it clear to Myanmar's Ohn Gyaw that the Government of Japan believes that SLORC should seek for ways and means to initiate dialogue with Suu Kyi's NLD and should incorporate the NLD in the process of drafting a new state constitution. Moreover, the Government of Japan is availing itself of every opportunity, through the Japanese ambassador in Myanmar and other channels, to press for democratization and human rights improvements. With regard to Myanmar's admission to the Association of Southeast Asian Nations (ASEAN), in January 1997 Prime Minister Ryutaro Hashimoto conveyed Japan's position to the leaders of ASEAN member states in words to the following effect: "Japan does not feel international isolation is the optimal way for the improvent of domestic situation in Myanmar. Rather, Japan thinks it important to give Myanmar incentives to behave in line with international norms by drawing it out as a member of the international community. From that point of view, Japan appreciates ASEAN's recent agreement to grant official membership to Myanmar sometime in the future. On the other hand, Japan also thinks that ASEAN membership should not provide a smokescreen for oppression in Myanmar. Accordingly, Japan hopes that ASEAN will handle the membership issue in such a manner as to contribute to the improvement of the domestic situation in Myanmar."

Japan's Economic Cooperation with Myanmar

The Japanese Government suspended economic cooperation with Myanmar, in principle, following the military coup d'?tat in 1988. In recognition of such positive moves as the release of Aung San Suu Kyi from house arrest in July 1995, the Japanese Government reviewed its aid policy toward Myanmar and decided to consider and implement suspended ongoing projects and projects that would directly benefit the people of Myanmar by addressing their basic human needs (BHN), on a case-by-case basis meanwhile monitoring democratization and the improvement of human rights. In the absence of progress toward democratization and human rights improvements, however, in fiscal 1996 no grant aid or yen loans for new projects were provided other than small-scale, grass-roots assistance through nongovernmental organizations. Outlined below is Japan's economic cooperation with Myanmar in fiscal 1995 when Suu Kyi was released from house arrest, and in fiscal 1996 (as of February 1997).

Fiscal 1995

Yen loan

  • None

Grant aid

  • General grant aid (project for expansion of the Institute of Nursing): \1,625 million
  • Grass-roots assistance (assistance channeled through NGOs): \74 million (15 grants)
  • Food aid (refugee assistance): \200 million
  • Grant aid for debt relief: \14,000 million

Technical cooperation

  • Acceptance of trainees: 64 people
  • Dispatch of experts: 33 people
  • Dispatch of survey teams: 24 people
  • Provision of equipment: \184.1 million
  • Project-type technical cooperation: 2 projects

Fiscal 1996 (as of February 1997)

Yen loan

  • None

Grant aid

  • Grass-roots assistance: \17 million (3 grants)
  • Grant aid for debt relief: \4,000 million

Technical cooperation

  • Figures not finalized

Note: Grant aid for debt relief is based on a 1978 resolution of the Trade and Development Board (TDB) of the United Nations Conference on Trade and Development (UNCTAD). In the case of Myanmar, Japan is providing debt-relief measures in the form of grant aid equal to the total amount of the principal and interest on government loans prior to fiscal 1987 with respect to repayments from Myanmar (with the result that net payments are zero).

Activities of Japanese Companies in Myanmar

The cumulative value of Japanese companies' authorized investment in Myanmar was US$184 million as of the end of January 1997. Japan is the ninth largest investor in Myanmar, accounting for only 3.4% of total foreign direct investment. The largest investor is Singapore, with $1,215 million (22.7% of the total). Japanese investment is also modest compared with that of the United States, the sixth largest investor ($243 million, or 4.6% of the total). The Government of Japan neither encourages nor discourages Japanese business activities in Myanmar, but the Government briefs business organizations from time to time on the political and economic situation in Myanmar and international opinion regarding the country.



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