VIENTIANE (Reuters) - The United States plans to ease sanctions this week to allow its
companies to invest in and provide financial services to Myanmar but will
require them to make detailed disclosures about their dealings, sources briefed
on the matter said on Wednesday.
The unusual reporting requirement aims to promote
greater transparency in the country -- among the world's most corrupt according
to watchdog Transparency International -- as it emerges from nearly half a
century of authoritarian military rule.
The sources, who spoke on condition that they not be
named, said the U.S. Treasury Department was expected to issue two so-called
general licenses, one giving general permission for investment in Myanmar and
the other allowing financial services
The moves would fulfil a May 17 announcement made by
U.S. Secretary of State Hillary Clinton to ease U.S. sanctions on investment
and financial services in recognition of Myanmar's startling political reforms
over the last 15 months.
While carving out exceptions to allow U.S. companies
to work in Myanmar, also known as Burma, the moves would leave the sanctions
laws on the books, giving Washington leverage should Myanmar start to backslide
on its reforms.
Clarification of the rules for investment could prompt
a rush of U.S. companies into the country.
Coca-Cola Co, for instance, said last month it wanted
to work in Myanmar as soon as the government allowed it. It is one of just
three countries in the world where the soft drinks giant does not operate. The
other two are North Korea and Cuba.
Conglomerate General Electric Co has also expressed
strong interest in the country, particularly in the healthcare and electricity
sectors. In the face of street protests over power outages, Myanmar's
government promised in May it would buy two 25-megawatt gas turbines from the
company.
Sanctions have also been suspended or lifted by other
developed countries, including Canada, Australia, Japan and European Union
states.
ANNOUNCEMENT COULD COME WEDNESDAY
Myanmar's reformist, quasi-civilian government took
office in March 2011, ending five decades of military rule, and has started
overhauling its economy, easing media censorship, legalizing trade unions and
protests and freeing political prisoners.
The United States has responded with diplomatic and
economic gestures, sending Hillary Clinton to Myanmar last year as the first
U.S. secretary of state to visit in more than 50 years, as well as tentatively
easing sanctions this year.
One source said the long delay between Clinton making
her announcement and the Treasury issuing the licenses -- which could come as
early as on Wednesday -- was partly because of a debate among officials over
how much disclosure to require.
In a land of widespread poverty but rich in timber,
gems, and gas, Myanmar's crony capitalists -- a clique of fewer than 20
families -- grew rich with help from Than Shwe, a military dictator who ruled
from 1992 until his retirement last year.
SUNLIGHT ON MURKY BUSINESS PRACTICES
The Obama administration hopes the reporting
requirements will shed some light on Myanmar's notoriously murky business
practices and, over time, improve them.
"The central point of all of this is to focus on
transparency, the theory being that the more information the greater the
incentive to comply with responsible norms and practices," he said.
This source said that some disclosures would be to the
public while others would be in confidence to the U.S. government to protect
proprietary business information.
The sources said one idea under consideration was to
have a public comment period for the private sector to study the reporting
requirements and to flag any problems.
The latest step in easing sanctions comes as Derek
Mitchell, an Asia expert with long think tank and Pentagon experience, travel
led to Myanmar this week to present his credentials as the first U.S.
ambassador to the country in decades.
The target for formalizing the U.S. sanctions relief
was Friday, allowing Clinton to trumpet the new business opportunities in a
speech to executives in Siem Reap, Cambodia.
A spokeswoman for the U.S. State Department declined
all comment on the matter, as did an official at the U.S. Treasury Department.
Arshad Mohammed
(Editing by Jonathan Thatcher)
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