C O N F I D E N T I A L SECTION 01 OF 03 RANGOON 000298

SIPDIS

STATE FOR EAP/MLS, INR/EAP, EEB/TFS
PACOM FOR FPA
TREASURY FOR OASIA, OFAC

E.O. 12958: DECL: 05/21/2019
TAGS: ECON EFIN ETRD PREL PINR BM
SUBJECT: BURMA: UPDATE ON CRONY STEVEN LAW'S ACTIVITIES

REF: A. RANGOON 25

B. RANGOON 235

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

Summary
--------------


1. (C) Steven Law, one of the regime's top cronies,
continues to expand his businesses in both Burma and
Singapore. The authorities recently awarded Law's Asia World
Company the rights to build the new international airport in
Nay Pyi Taw, and his newest company, Gold Energy Co. Ltd., is
constructing the Thaukyegat (2) Hydropower Project in Karen
State. Embassy Rangoon recommends OFAC add Steven Law's
newest companies and key management personnel (listed in
paragraph 7) to the targeted sanctions list. End Summary.

From Airports to Dams
--------------


2. (C) Steven Law's Asia World is one of Burma's premier
construction companies, building roads and airports
throughout the country. Following the successful
construction of both the Rangoon and Mandalay International
Airports, the Burmese Government awarded Asia World the
rights to build the new international airport in Nay Pyi Taw,
PB Steel General Manager Wael Elmawie told us. During a
recent meeting, Law told Elmawie that Asia World, at the
GOB's behest, would begin construction of the Nay Pyi Taw
airport, which will include both domestic and international
terminals, during the next few months, and is looking for
subcontractors and investors. According to Elmawie, Law will
receive unspecified funding from the regime, but has also
recruited several large Chinese and Singaporean construction
companies to either assist with construction or provide
capital. Embassy contact Anwar Hussein, who also met with
Steven Law about the Nay Pyi Taw airport, speculated that
rather than repay the Chinese loans, the GOB, which is
funding the project, will pay them in-kind, most likely with
timber, jade and gems, or electricity. Construction on the
airport is scheduled to end by 2011, alth

ough Law told both
Elmawie and Hussein he would prefer to complete the airport
before the 2010 elections.


3. (C) During the meeting with Hussein, , Law explained
that one of his subsidiary companies, Gold Energy Co. Ltd.,
is constructing the Thaukyegat (2) Hydropower project in
Karen State and is looking for additional cement and steel
providers. According to the New Light of Myanmar, the
government's mouthpiece newspaper, Asia World Construction
Company and the Ministry of Electric Power-1 signed a
memorandum of understanding in May 2008 for this project.
Law provided both Hussein and Elmawie with informational
brochures on the project, noting that Gold Energy Co. Ltd.
expects to complete the 120-megawatt project by mid-2011.

Developing Agriculture in the Delta
--------------


4. (C) Steven Law's companies continue to be active in the
Irrawaddy Delta, rebuilding homes and assisting farmers in
the Kungyangon and Dedaye areas. According to SGS
Consultants Managing Director U Kyaw Tint, two of Steven

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Law's companies -- Asia World and Green Luck Trading Company
-- are involved in contract farming in the Delta, assisting
farmers by providing them with production inputs and
financial resources while maintaining a lien over the land
until the farmer repays the loans (Ref A). U Kyaw Tint
confirmed that Law continues to have partnerships with many
farmers in Kungyangon and Dedaye, and, to his knowledge, has
not confiscated any land.


5. (C) Asia World documents reportedly confirm that Green
Luck Trading Company is establishing a bean and pulses
processing plant in Rangoon. Hussein, who is a beans trader,
told us that Asia World and Green Luck Trading Company
recently began exporting beans and pulses to India and are
planning to enter the rice export business.

Investing in Oil and Gas
--------------


6. (C) According to oil and gas contacts, Steven Law's
Golden Aaron Pte., which is already listed on OFAC's targeted
sanctions list, has partnered with Chinese National Offshore
Oil Corporation (CNOOC) to develop CNOOC's M2, M10, and A4
offshore blocks (Ref C). Terry Howe, General Manager of
Myanmar Petroleum Resources Ltd., told us that Law brokered
CNOOC's production sharing contracts with the Myanmar Oil and
Gas Enterprise (MOGE) in 2004. In the past two years, Law
has financially supported CNOOC's offshore exploration,
paying up to USD 20 million to drill exploratory wells in
M10, Howe stated.

Company Information
--------------


7. (SBU) Below is information on additional companies owned
by Steven Law. Information was obtained from business cards,
as well as company investment profiles.

-- Asia World Industries Limited; No 61/62 Bahosi
Development, Wadan Street, Lanmadaw Township, Rangoon;
Telephone: 95-1-225-271; 95-1-225-982, 95-1-225-184,
95-1-222-422, 95-1-224-067, 95-1-224-068; Fax: 95-1-227-989,
95-1-227-553. General Manager: Aye Aye Aung.

-- Gold Energy Co., Ltd; No 74 Lan Thit Road, Insein
Township, Rangoon; Telephone: 95-1-220-118; Fax:
95-1-228-012.

-- Gold Energy Co., Ltd; Taungngu (Tungoo) Branch, Karen
State; Telephone: 95-54-241-67; 95-54-253-90; Fax:
95-54-25391.

-- Gold Energy Co., Ltd; Thaukyegat (2) Hydropower Project;
Telephone: 95-1-333-6052; 95-1-6634; email:
awc88@asiaworld.com.mm; u1maung@gmail.com.

-- Green Luck Trading Company; No 61/62 Bahosi Development,
Wadan Street, Lanmadaw Township, Rangoon; Telephone:
95-1-225-271; 95-1-225-982, 95-1-225-184, 95-1-222-422,
95-1-224-067, 95-1-224-068; Fax: 95-1-227-989, 95-1-227-553.

-- Laminated Woven Bag Factory; No 125 Muse Street, No 1
Industrial Zone, Dagon Myo Thit (S), Rangoon; Telephone:
95-1-591-114, 95-1-591-420, 95-1-591-421. General Manager:
Aye Aye Aung.

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-- Myanmar Paper Mill; No 126 Muse Street, No 1 Industrial
Zone, Dagon Myo Thit (S), Rangoon; Telephone: 95-1-591-113,
95-1-591-416, 95-1-591-423. General Manager: Aye Aye Aung.

-- Mosquito Coil Factory; No 247(B) Muse Street, No 1
Industrial Zone, Dagon Myo Thit (S), Rangoon; Telephone:
95-1-591-478, 95-1-419. General Manager Aye Aye Aung.

Embassy Recommendation
--------------


8. (C) Steven Law is one of the regime's foremost cronies,
using his connections with the regime to obtain lucrative
government contracts. He, his family, and many of his
companies are already listed on OFAC's targeted sanctions
list. Embassy Rangoon recommends OFAC designate the
above-mentioned companies and senior management under the
JADE Act.

DINGER