DANES REVIEW BURMA POLICY

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