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Bush signs Myanmar sanctions bill to ban import of Burmese ruby, jade and push democracy

By JENNIFER LOVEN | Associated Press Writer

1:09 PM EDT, July 29, 2008

WASHINGTON (AP) _ President Bush signed legislation Tuesday to punish Myanmar's brutal ruling regime by freezing assets of political and military leaders there and banning the importation of rubies and jade from that country into the U.S.

The military junta in Myanmar has been getting increased attention at the White House, particularly since the government's slow response to a cyclone in May that killed over 80,000 people, devastated infrastructure and left many still in perilous straits.

The Bush administration blames a corrupt regime for failing to help its citizens during the disaster, in large part by failing to accept help from other countries, and for violently suppressing democracy demonstrations by Buddhist monks in last September's so-called Saffron Revolution.

First lady Laura Bush has become the administration's highest-profile spokeswoman on the issue, and accompanied her husband in the Oval Office as he signed the bills, which extend and harden sanctions Congress first passed in 2003. Bush also signed an extension of standing U.S. sanctions that must be renewed annually.

"On the Burmese regime, our message is: The United States believes in democracy and freedom," Bush said in his very brief remarks. Mrs. Bush did not speak. A few key members of Congress who attended the signing also were silent.

Myanmar, also known as Burma, has been under military rule since 1962. The current junta took power in 1988 after crushing pro-democracy demonstrations at a cost of an estimated 3,000 lives.

Myanmar produces up to 90 percent of the world's rubies and is a top supplier of other gems and jade. The trade provides crucial revenue for the military regime, with many merchants coming from China and Hong Kong.

The hope is that the legislation signed by Bush would put enough financial pressure on the junta to encourage a change to a democratic civilian government.

The bill bans Burmese gem imports, something that already is the voluntary policy of retailers such as Tiffany's and Bulgari. U.S. officials say Myanmar has been evading earlier gem-targeting sanctions by laundering the stones in other countries before they are shipped to the United States.

It also gives Chevron incentives to divest its natural gas program in Myanmar.

Also Tuesday, to coincide with the bill-signing, the Treasury Department announced financial sanctions on 10 companies suspected of being owned or controlled by Myanmar's government. All the companies are located in Myanmar, including two big conglomerates — the Union of Myanmar Economic Holdings Limited and the Myanmar Economic Corp. — that each has extensive holdings in gem mining, banking and construction.

Any bank accounts or other financial assets found in the United States that belong to those named Tuesday must be frozen. Americans also are prohibited from doing business with them.

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AP Economics Writer Jeannine Aversa contributed to this story.