Pressure mounts on Burmese junta after BAT withdrawal

British American Tobacco (BAT) has announced that it is to withdraw from Burma, following a request by Foreign Office officials.

Foreign Office Minister Mike O'Brien welcomed the decision saying that it was clearly "inappropriate" for a British company "which cares about its reputation for corporate social responsibility" to participate in a joint venture with the business arm of Burma's military dictatorship.

BAT's operations in Burma were a joint venture with the Union of Myanmar Economic Holdings, the business arm of the military regime. The main beneficiaries of Rothmans Myanmar were the generals who run UMEHL, and the military families who are shareholders in Myawadi Trading Company - the military's trading arm - which distributes the cigarettes and reaps the profits.

Following the recent completion of Premier Oil's withdrawal from Burma, BAT's was the largest remaining UK investment in the country.

The government said that it continues not to encourage British trade, investment or tourism in Burma. Any companies which do enquire about trade with Burma are told that no official support is available and informed about the desperate political situation in the country, the regime's "atrocious human rights record and the dire economic prospects".

Also today, the Burmese government has been strongly condemned by the Foreign Office for instigating violence against Muslim communities in Burma.

Foreign Office Minister Mike O'Brien has was "extremely concerned" by reports that gangs, disguised as monks, were being trucked in under cover of darkness to Muslim areas in Rangoon to loot property.

He added: "I find it very troubling that the Burmese government seem set on provoking misunderstanding between Islam and Buddhism, and on bringing Buddhism into disrepute by associating it with violence and repression. This seems particularly unfortunate, given that Burma is preparing to host the World Buddhist Summit in 2004."

A sharp upsurge in anti-Muslim riots began on 11 October in Kumei, south of Mandalay. On 19 October a mob destroyed two mosques in Kyaukse (also south of Mandalay) and burnt down a number of houses belonging to prominent members of the Muslim community; up to 11 people were reportedly killed as a result of the fires.

On the night of 25 October 'monks' from Thingangyunn Township in Rangoon destroyed further Muslim properties.

The Foreign Office has said that there is a widespread belief amongst the Burmese people that these incidents have been contrived by the government to distract attention from the stalled political process, and to justify a continued military clampdown.

A census has not been undertaken for two decades, but the population of Burma is estimated to be about 80% Buddhist and 5% Islamic, with the remainder Christians and animists.

(gmcg)