June 11, 2024
Mr. Tatsuya Hayashi and Tatsuo Kawasaki
Founding Partner and Representative Director
Unison Capital, Inc.
The New Otani Garden Court 9F, 4-1 Kioicho, Chiyoda-ku, Tokyo 102-0094 Japan
Mr. Osamu Yamamoto
CEOUnison Capital Management Pte. Ltd.
350 Orchard Road, #18-06 Shaw House, Singapore 238868

Mr. Frank Tang
Chairman and CEO
FountainVest Partners
Suite 2501, 25/F Two International Finance Centre, 8 Finance Street Central, Hong Kong

Re: Inquiry regarding human rights due diligence in relation to TASAKI’s business partnershipwith sanctioned entity Myanmar Pearls Enterprise.
We are civil society organizations from Japan and Myanmar that make policy proposals urging Japanesecompanies to consider the environment, society, and human rights in their overseas business operations.
We understand from media reports that FountainVest Partners and Unison Capital are jointly intending topurchase TASAKI & Co., Ltd.1 We are writing to you to express our concern regarding the company’scontinued partnership with Myanmar Pearl Enterprise (MPE), a US, UK, and Canadian2 sanctioned stateowned enterprise under the Ministry of Natural Resources and Environmental Conservation that is illegallycontrolled by the Myanmar military junta.
Since February 1, 2021 when the Myanmar military attempted a coup, it has been committing war crimes
and crimes against humanity with total impunity as it tries to take control of Myanmar. These graveinternational crimes include deliberate killings, arbitrary arrests, torture, indiscriminate airstrikes, anddestruction of civilian property, which have led to the displacement of more than 3 million people acrossthe country.3 There are grave concerns that the military is committing these crimes relying on revenue
from MPE and other junta-controlled entities.

We are aware that MYANMAR TASAKI Co., Ltd, a subsidiary of TASAKI & Co., Ltd, has been in a business
partnership with MPE since 1997 under a production sharing contract under a license granted by the now
junta-controlled Ministry of Natural Resources and Environmental Conservation (MONREC). The military
junta benefits from revenues generated through the pearl industry, including through a production sharing
agreement under which MPE reportedly receives 20-25% of the pearls harvested.4 The junta also benefits
from customs duties, other taxes and the transfer of technology that can support further production.
Of the companies that have been granted permission for pearl farming, MYANMAR TASAKI was the largest
producer at over ten billion MMK (over US$8 million at the time) worth of pearls in 2017-2018, the yearwith the most recently published data available. 5 We understand that TASAKI has sold Myanmar pearlsaround the world, with TASAKI’s website listing stores in Australia, China, France, Japan, Hong Kong, SouthKorea, Singapore, Taiwan, UK and USA among others and that the junta has continued to earn revenue
from pearls. According to a Myanmar junta run newspaper, 400 pearl lots were up for sale this year during
the 59th Myanmar Gems Emporium, which was attended by the junta leader and commander-in-chief ofthe Myanmar military, Min Aung Hlaing. 6In April 2021, over three years ago, TASAKI’s business partner MPE was sanctioned by the US. In adding
MPE on the Specially Designated Nationals list, the US stated that “pearl industries are key economic
resources for the Burmese military regime that is violently repressing pro-democracy protests in thecountry and that is responsible for the ongoing violent and lethal attacks against the people of Burma,
including the killing of children. 7” The UK also sanctioned MPE and a state-owned timber enterprise to“target the junta’s ability to profit from pearl and timber, 2 high-value natural commodities that generate
millions in revenue for the military regime. 8”
While TASAKI’s website states that pearls produced by the company’s own pearl farms “are ethically andsustainably sourced”, we are concerned that TASAKI’s continuing partnership with MPE contravenes humanrights responsibilities under the OECD Guidelines for Multinational Enterprises (OECD Guidelines) and theUN Guiding Principles on Business and Human Rights.9 Under the OECD Guidelines and the UN Guiding
Principles, all businesses have a responsibility to respect human rights and are therefore required toexercise human rights due diligence to identify and prevent, mitigate and account for adverse human rights
impacts.
We would like to reiterate our concern that by continuing its partnership with MPE, TASAKI is providing thejunta with a source of revenue that it can use to procure the very weapons and jet fuel that it needs tocontinue to commit war crimes and crimes against humanity. We also believe that TASAKI’s continued
business with MPE undermines the effects of the sanctions imposed by the US, UK and Canada against
MPE, which are intended to block the junta’s access to revenue from the pearl sector. Justice For Myanmar,
together with another Japanese organization, Human Rights Now, has previously issued a press release
expressing concerns regarding TASAKI’s continuing business with MPE.10
While we understand that an objective of TASAKI’s philosophy on sustainability is “harmonious co-existencewith local communities'' inspired by a “spirit of sustainability,11” we are further concerned by several

Myanmar civil society reports on the situation of the indigenous Moken people of Myanmar, which weresubmitted to the UN in 2020. 12 According to these reports,13 TASAKI’s pearl farms in Myanmar, which arelocated in the Tanintharyi Region of southern Myanmar, could lead to further forced displacement ofMoken people from their ancestral lands due to loss of water and land access.

We urge you to take stock of all human rights considerations and due diligence in the purchasing of TASAKI,
particularly in relation to its operations in Myanmar. We believe that by TASAKI remaining in business withMPE, they may be in contravention of their human rights responsibilities under OECD Guidelines and UN
Guiding Principles, are undermining sanctions, and risk complicity in the military junta’s international
crimes.
We note that both FountainVest Partners and Unison Capital have made commitments to invest
responsibly and have made your ESG policy and mission statement available on your websites. We further
note that FountainVest Partners is a signatory to the UN Principles for Responsible Investment. In
consideration of your stated commitments, we would like to inquire whether you have requested TASAKI todisclose their adherence to relevant norms and international standards, including the OECD Guidelines andUN Guiding Principles in relation to their business in Myanmar and whether it has conducted heightened
and ongoing human rights due diligence since the military’s coup attempt and taken any measures toprevent violations associated with TASAKI’s business activities and its relationship with MPE. We requestthat all disclosures be made public.
In a letter sent to TASAKI, we have called on TASAKI to responsibly end all business with the military junta
controlled MPE, fulfill their responsibility to respect human rights, and publicly disclose their transactions
with MPE since the military’s coup attempt. We believe that purchasing TASAKI would neglect yourcompany’s responsibility under the OECD Guidelines and UN Guiding Principles. Such a move would also beinconsistent with your stated ESG commitments as well as the UN Principles for Responsible Investment,
posing serious reputational risks.
We would appreciate your timely reply to the contact address listed below by July 5, 2024 to share therequested data and to outline your course of action for addressing the issues raised. Furthermore, yourresponse will be published on our organization's website among other platforms (including the fact of noresponse at the time of deadline). We look forward to receiving your response.

Sincerely,

Yuka Kiguchi
Executive Director, Mekong Watch
Yadanar Maung
Spokesperson, Justice For Myanmar

Contact address:
Mekong Watch
3F Aoki Bldg., Taito 1-12-11,
Taito-ku, Tokyo 110-0016,
Japan
TEL: +81-3-3832-5034
EMAIL: contact@mekongwatch.org

1

Bloomberg, “FountainVest, Unison Said to Near Deal for Japanese Jewelry Firm Tasaki”, April 26, 2024
https://www.bloomberg.com/news/articles/2024-04-26/fountainvest-unison-said-to-near-deal-for-japanese-jewelry-firm-tasaki
2
Office of Foreign Assets Control, “Burma-related Designations; Kingpin Act Designations Removals”, April 21, 2021
https://ofac.treasury.gov/recent-actions/20210421; Government of Canada, “Regulations Amending the Special EconomicMeasures (Burma) Regulations: SOR/2021-106”, May 14, 2021 https://gazette.gc.ca/rp-pr/p2/2021/2021-05-26/html/sor-dors106eng.html; Office of Financial Sanctions Implementation, “Consolidated List of Financial Sanctions Targets in the UK”, June 2, 2021
https://assets.publishing.service.gov.uk/media/65bb618927fccf000d4bd1b3/Myanmar.pdf.
3

UN Resident Humanitarian Coordinator a.i. for Myanmar, “Statement by the Resident and Humanitarian Coordinator a.i. forMyanmar”, May 3, 2024 https://myanmar.un.org/en/267754-statement-resident-and-humanitarian-coordinator-ai-myanmar.
4
Frontier Myanmar, “Moken Fear a Sea Grab in the Myeik Archipelago”, December 29, 2019https://www.frontiermyanmar.net/en/moken-fear-a-sea-grab-in-the-myeik-archipelago/.
5Myanmar Extractive Industries Transparency Initiative, “Extractive Industries Transparency Initiative Myanmar, EITI Report 20172018”, January 2019 https://eiti.org/sites/default/files/attachments/meiti_reconciliation_report_20172018_final_signed_31st_march_2020.pdf.
6
The Global New Light of Myanmar, “400 Pearl, 160 Gem, and 4,550 Jade Lots Up for Sale”, May 2, 2024
https://cdn.myanmarseo.com/file/client-cdn/gnlm/wp-content/uploads/2024/05/4-5-2024.pdf.
7U.S. Department of the Treasury, “Treasury Sanctions Key Timber and Pearl Enterprises in Burma”, April 21, 2021
https://home.treasury.gov/news/press-releases/jy0138.
8Foreign, Commonwealth & Development Office and The Rt Hon Dominic Raab MP, “Foreign Secretary Announces Further
Sanctions on Companies Linked to Myanmar’s Military Regime”, June 21, 2021 https://www.gov.uk/government/news/foreignsecretary-announces-further-sanctions-on-companies-linked-to-myanmars-military-regime.
9Organisation for Economic Cooperation and Development (OECD), “OECD Guidelines for Multinational Enterprises on
Responsible Business Conduct”, June 8, 2023 https://www.oecd-ilibrary.org/finance-and-investment/oecd-guidelines-formultinational-enterprises-on-responsible-business-conduct_81f92357-en; United nations Office of the United Nations HighCommissioner for Human Rights, “Guiding Principles on Business and Human Rights : Implementing the United Nations ‘Protect,
Respect and Remedy’ Framework”, January 1, 2012https://www.ohchr.org/sites/default/files/documents/publications/guidingprinciplesbusinesshr_en.pdf.
10
Human Rights Now and Justice For Myanmar “Human Rights Now and Justice For Myanmar call on TASAKI to end business with
the Myanmar military junta, following US designation of Myanmar Pearl Enterprise for sanctions”, April 21, 2021
https://www.justiceformyanmar.org/press-releases/human-rights-now-and-justice-for-myanmar-call-on-tasaki-to-end-businesswith-the-myanmar-military-junta-following-us-designation-of-myanmar-pearl-enterprise-for-sanctions.
11
12

TASAKI Website, “Our Sustainability”, accessed June 10, 2024. https://www.tasaki-global.com/corporate/sustainability/about/.

Burma Human Rights Network, “The Coming Extinction: The Moken People of Burma’s Mergui Archipelago”, December 12, 2020
https://www.bhrn.org.uk/en/component/edocman/bhrn-report/the-coming-extinction-the-moken-people-of-burma-s-merguiarchipelago.html; FIDH – International Federation for Human Rights and Myanmar Alliance for Transparency and Accountability,“Universal Periodic Review (UPR) 37th Session Myanmar: Joint Submission by FIDH and MATA”, July 2020,
https://www.fidh.org/IMG/pdf/fidh-mata_joint_upr_submission_july_2020.pdf; Coalition of Indigenous Peoples inBurma/Myanmar, “Joint submission to the UN Universal Periodic Review of Myanmar July 2020: 37th Session of the UPR Working
Group of the human Rights Council January/February 2021”,
https://uprdoc.ohchr.org/uprweb/downloadfile.aspx?filename=8278&file=EnglishTranslation.

13United Nations Working Group on the Universal Periodic Review, “Summary of Stakeholders’ submissions on Myanmar: Reportof the Office of the United Nations High Commissioner for Human Rights”, 12 November 2020,
https://digitallibrary.un.org/record/3893981?ln=en&v=pdf.