C O N F I D E N T I A L COPENHAGEN 000117

C O R R E C T E D C O P Y - PARAGRAPH 3 CLASSIFICATION MARKING

SIPDIS

E.O. 12958: DECL: 03/04/2018
TAGS: PGOV PREL BM DA
SUBJECT: DANES REVIEW BURMA POLICY


1. (U) Summary. Poloff met March 3 with Kasper Olsen, MFA's
head of section for Southeast Asia, to discuss Danish policy
towards Burma. Denmark is completing a policy review in
anticipation of the EU Commission's annual meeting on Burma
in April. Denmark's review, to be finalized this week,
continues to support the use of sanctions but places equal
emphasis on increased development assistance and engagement
of neighboring countries to influence the Burmese government.
End Summary.


2. (U) As part of its three-pronged approach towards Burma
of sanctions, aid and engagement, Denmark will significantly
increase development aid over the next two years and shift
its focus. Denmark currently earmarks 45 million DKK ($6.7
million) annually for development projects within Burma,
assistance for Burmese refugees in Thailand, and support for
NGOs like the Danish Burma Committee. Denmark intends to
increase aid to 70 million DKK ($ 11.8 million) by 2011, with
increases to 50 million DKK ($8.4 million) in 2009 and 60
million DKK ($10.8 million) in 2010. Aid efforts will shift
from human rights and democracy building to education, health
and livelihood sectors and will be primarily focused on
projects within the country itself. Aid will be funneled
through three multi-donor funds operated by the UN and
UNICEF. Olsen commented that the shift reflects a lack of
partners with sufficient capacity in the country and a desire
to positively affect the day to day lives of the civilian
population. In tandem with increased aid, Denmark plans to
create a small development office in Burma next year.


3. (C) In line with EU policy, Olsen said that "strict but
targeted" sanctions will continue to be an integral part of
Danish policy. Danish Foreign Minister Moeller would like to
see sanctions expanded to include the oil and gas sector,
which he feels would impact the ruling junta directly.
Moeller intends to propose expansion of sanctions at the EU
April review. Olsen, however, noting the presence of French
oil companies in Burma, suggested that the Danes were not
optimistic of EU support.


4. (SBU) The third pillar of the Danish approach is to
strengthen the commitment of Burma's neighbors to effecting
change in Burma. Denmark will continue to encourage ASEAN to
play a greater role. Of Burma's two largest neighbors, India
and China, Olsen opined that India appeared unwilling to
cooperate on Burma. He suggested that Indonesia and China,
however, could play significant roles, particularly if
encouraged by the U.S.


5. (SBU) The extensive review of Burma policy anticipates
the EU-wide review in April. It also reflects a desire by
the MFA to portray a unified Danish approach towards Burma.
The Danish Foreign Minister and the Development Minister have
not always followed the same script on Burma sanctions. In
comments to the Danish press in January following a trip to
Burma, Development Minister Ulla Tornes commented that
economic sanctions on Burma and an EU tourism boycott of the
country are counterproductive. "20 years of EU sanctions
have not changed the mindset of the Burmese junta. On the
contrary, the people have been kept in isolation and that is
exactly what the military regime wants to do," she told the
Danish newspaper Berlinske Tidende. The new MFA policy on
Burma, however, which will likely be signed by both ministers
this week, will continue to incorporate sanctions as part of
MFA policy. Regarding the travel ban, Olsen commented that
while it may be discussed in April at the EU review, the EU
is unlikely to change its position.


6. (SBU) MFA's views on Burma will also be presented next
week by MFA's Southeast Asia Office Director Helle Nielsen in
the EU working group discussions in Prague with EAP DAS
Marciel. Olsen suggested that the Danes may approach the
U.S. with a request by Development Minister Tornaes to review
U.S. policy on UNDP cooperation with the Burmese government.
Tornaes feels that restrictions on UNDP prevent the agency
from fully implementing civilian programs in Burma and she
would like to see the restrictions loosened.
MCCULLEY