BURMA DEMARCHES DELIVERED TO GNZ

UNCLAS WELLINGTON 000774 SIPDIS SENSITIVE SIPDIS STATE FOR EAP/ANP, EAP/MLS AARON COPE E.O. 12958: N/A TAGS: PHUM PREL KDEM NZ BM SUBJECT: BURMA DEMARCHES DELIVERED TO GNZ REF: A. A) STATE 148540 ¶B. B) STATE 148528 ¶C. C) STATE 146862 ¶1. (SBU) Pol/Econ Counselor passed the information and suggestions outlined in reftel demarches to Bernadette Cavanagh, who recently began work as the Head of the Southeast Asia Unit at the Ministry of Foreign Affairs and Trade (MFAT). Cavanagh thanked the Embassy for the update on the latest USG actions and the websites provided in reftel C; she also appreciated the proposals outlined in reftels A and B, as the GNZ is still in the process of preparing a paper for Ministers on next steps in addressing the violence and continued persecution of pro-democracy activists in Burma. ¶2. (SBU) Cavanagh proposed meeting next week following the submission of the MFAT paper, so that she could provide a fuller brief on New Zealand's thinking. We note that there has been some reaction in the press to the GNZ reaction to date, with criticism from the Green Party and others over the lack of strong GNZ action other than tough words and press statements. One press article from October 5 noted that the Government's NZD 13.1 billion New Zealand Superannuation Fund has acknowledged that some of the companies (France's Total SA, China Petroleum and Chemical/Sinopec, and Malaysia's Petronas) it invests in have operations in Burma; another Chinese company is also reportedly receiving investment funds from the Fund. A Fund spokeswoman has said that if sanctions were applied, the Fund would review its investments. However, MFAT has told us that New Zealand domestic law makes application of sanctions difficult in the absence of a UN sanctions resolution. McCormick