ENVIRONMENT NOT A PRIORITY FOR BURMESE REGIME

C O N F I D E N T I A L SECTION 01 OF 03 RANGOON 000035

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E.O. 12958: DECL: 01/16/2018
TAGS: EINV ECON ENRG PGOV EPET BM
SUBJECT: ENVIRONMENT NOT A PRIORITY FOR BURMESE REGIME


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Classified By: Economic Officer Samantha A. Carl-Yoder
for Reasons 1.4 (b and d)


1. (SBU) Summary. Despite having a wealth of plant and
animal biodiversity and vast ecosystems, the Burmese
Government does little to protect the country's natural
resources. Investors, both domestic and foreign, continue to
plunder Burma's raw materials, destroying much of the
country's natural environment. The Burmese Government has
yet to enact a comprehensive environment law. Investors,
both foreign and domestic, are not required to conduct
environmental impact assessments (EIAs) for development
projects. NGOs highlight species loss, soil erosion,
contamination of water and land, and deforestation as Burma's
largest environmental challenges. Unfortunately, solid data
about environmental degradation does not exist. End Summary.

No Comprehensive Law
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2. (C) Burma has one of the world's most diverse ecosystems,
ranging from mountainous regions with deciduous forests to
tropical reefs, numerous various plant and animal species,
and natural resources including oil and gas, nickel, gold,
jade, and precious gems. Despite having these vast
environmental riches, the Burmese Government does little to
protect the environment, U Uga, Chairman of the Biodiversity
and Nature Conservation Association (BANCA) told us. Burma
has no comprehensive laws concerningQnvironmental
management. In 2000, the Burmese Government drafted the
National Environment Law, which established parameters for
environmental protections and conservation in the wake of
Burma's continuing development. Despite support for this law
from NGOs and international organizations, the GOB has yet to
approve and implement this law. U Uga, who helped write the
document, noted that although the Cabinet is willing to
implement the law, Senior General Than Shwe has yet to
approve the final version.


3. (SBU) Until the law is approved, the Ministry of Foreign
Affairs has authority over domestic environmental protection
issues while the Cabinet handles international environmental
matters (this is not a misprint!). In 1990, the GOB
established the National Commission for Environmental Affairs
(NCEA) to promote sustainable use of environmental resources
in industry and economic activities. The NCEA established
Burma's National Environment Policy in 1994, the GOB's
current policy on environmental protection. According to
environmental NGO officials, this document is too broad,
lacking the specificity needed to promote economic
development while at the same time protecting the
environment. Because it is a policy rather than a law, it
does not supersede pre-existing laws related to the
environment, such as the fisheries and forestry laws -- laws
that allow for the plundering of natural resources with
little thought to the environment. Because the National
Environment Policy has no real environmental guidelines or
requirements, only a few investors implement environmentally
sound programs, U Ohn of the Forest Resource Environment
Development and Conservation Association (FREDA) told us.


4. (C) Burma is a signatory to several international
environmental treaties, such as the Convention on Biological
Diversity, the Framework Convention on Climate Change, the
Convention on International Trade in Endangered Species of
Wild Flora and Fauna, and the Vienna Convention for the

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Protection of the Ozone Layer, among others. The GOB signed
these treaties to gain international recognition that they
were protecting the environment, U Ohn asserted.
Unfortunately, these agreements do not require the GOB to
implement any specific programs. The Burmese government does
as little possible to protect the environment, he concluded.

Who Needs Assessments?
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5. (C) One of the most important omissions in the National
Environment Policy is the requirement for environment impact
assessments (EIAs). Currently, companies investing in Burma
are expected to exercise their own due diligence and judgment
when determining the environmental implications of projects.
According to oil and gas industry experts, the Burmese
Government sometimes includes requirements for environmental
assessments in contracts with foreign investors, but does not
apply this policy universally. Bruce Leach, Drilling
Engineer with Daewoo, opined that even if the contract
"required" an EIA, the government would not ensure that the
company fulfilled its obligations. In actuality, each
investing company determines the degree to which it will
conduct an EIA; some companies meet international standards
when conducting environmental due diligence. Others, he
stated, do the bare minimum and refuse to release their
findings to interested parties. U Uga echoes these
sentiments, noting that many of the EIAs conducted by foreign
companies, particularly Chinese mining and petroleum
companies, were not comprehensive. Companies cut corners, he
explained, and no mechanism exists to hold them accountable.


5. (C) U Uga also emphasized that few, if any, Burmese
companies or state-owned enterprises conduct EIAs.
Environmental and cultural assessments are very expensive, he
noted, and often require a level of expertise not available
in Burma. There are only a few organizations in Burma that
could conduct this survey, he noted. His organization,
BANCA, which is one of the most competent environmental NGOs
in Burma, does not conduct EIAs because the staff lack the
necessary expertise. When a company approaches BANCA with an
EIA request, U Uga refers them to environmental firms in
Bangkok and Singapore, which are better equipped to meet
international standards.

Environmental Problems Abound
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6. (SBU) All of the NGOs we met with talked in broad terms
about Burma's environmental plights, particularly overfishing
(to be reported septel),the high rate of deforestation, loss
of species of both plants and animals, soil erosion, and
contamination of water and land. Unfortunately, while these
problems are well-known and obvious to those who live and
travel in Buma, NGOs and researchers have difficulty
obtainig information about the extent of the environmenta
damage. For example, logging of trees is tighty controlled
by the government; only regime officials know the true extent
of deforestation in the country and they are unwilling to
share this information. Although those living on the
China-Burma border will freely describe how many large trucks
filled with logs cross the border daily, no one knows exactly
how many logs are sold, legally or illegally.


7. (SBU) More environmental studies must be conducted, Yuza
Maw-Htoon of Mingalar Foundation declared. Local NGOs

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continue to build capacity to monitor environmental trends,
but they need international assistance and expertise. She
appealed to the United States and Europe for assistance,
Qng that steps need to be taken soon before all of Burma's
natural resources are lost.

Comment
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8. (C) Despite Burma's poor investment climate and lack of
rule of law, foreign investors remain interested in Burma's
rich resources. The lack of environmental protections
entices unscrupulous investors because they do not need to
spend millions to protect the environment. Effectively, the
regime is permitting investors to plunder Burma's rich
resources so Than Shwe and his cronies can pocket the
proceeds. The Burmese people will end up bearing the
consequences of the environmental devastation, adding to the
hardships they must already endure from military misrule.

VILLAROSA