Proposal for a Council Regulation amending Regulation (EC) No 798/2004 renewing the restrictive measures in respect of Burma/Myanmar, as regards the financing of certain enterprises
Date: 2004-10-06
Institutions: European Commission
Subjects: Myanmar/Burma, economic sanctions, export restriction, financing, human rights, international sanctions, military regime, public sector

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 06.10.2004 
COM(2004)663 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 798/2004 renewing the restrictive measures in respect of 
Burma/Myanmar, as regards the financing of certain enterprises 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

(3) 

(4) 

On  28  October  1996,  the  Council  imposed  certain  restrictive  measures  against 
Burma/Myanmar  by  Common  Position  1996/653/CFSP  in  view  of  the  political 
situation  in  that  country.  These  measures  were  subsequently  extended  and  amended 
several times, most recently by Common Position 2004/423/CFSP. 

Some of the restrictive measures imposed against Burma/Myanmar were implemented 
in the Community by Regulation (EC) No 798/2004. 

In view of its continuing concern about the human rights situation in Burma/Myanmar, 
the  Council  has  decided  in  its  Common  Position  2004/…/CFSP  to  strengthen  the 
restrictive measures in respect of Burma/Myanmar.  

In  view  of  this  Regulation  (EC)  No  798/2004  should  be  amended  to  implement  the 
prohibition to make financing available to Burmese state-owned enterprises. 

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Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 798/2004 renewing the restrictive measures in respect of 
Burma/Myanmar, as regards the financing of certain enterprises 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Articles 
60 and 301 thereof, 

Having  regard  to  Council  Common  Position  2004/…/CFSP  amending  Common  Position 
2004/423/CFSP regarding restrictive measures in respect of Burma/Myanmar1, 

Having regard to the proposal from the Commission2, 

Whereas: 

(1) 

(2) 

On  28  October  1996,  the  Council,  concerned  at  the  absence  of  progress  towards 
democratisation and at  the continuing  violation of human rights in Burma/Myanmar, 
imposed  certain  restrictive  measures  against  Burma/Myanmar  by  Common  Position 
1996/653/CFSP3. In view of the continuing severe and systematic violations of human 
rights  by  the  Burmese  authorities,  and  in  particular  the  continuing  and  intensified 
repression of civil and political rights, and the failure of those authorities to take steps 
towards  democracy 
against 
Burma/Myanmar  have  subsequently  been  extended  several  times,  most  recently  by 
Common  Position  2004/423/CFSP4  on  Burma/Myanmar.  Some  of  the  restrictive 
measures  imposed  against  Burma/Myanmar  have  been  implemented  at  Community 
level by Council Regulation (EC) No 798/20045. 

restrictive  measures 

reconciliation, 

and 

the 

In  view  of  the  lack  of  improvement  in  the  political  situation  in  Burma/Myanmar,  as 
witnessed by the failure of the military authorities to release Daw Aung San Suu Kyi 
and  other  members  of  the  National  League  for  Democracy  (NLD)  and  to  allow  a 
genuine  and  open  National  Convention,  and  in  view  of  the  continued  harassment  of 
the  NLD,  Common  Position  2004/…/CFSP  maintains  the  restrictive  measures 
imposed  in  respect  of  Burma/Myanmar  by  Common  Position  2004/423/CFSP  and 
strengthens  the  restrictive  measures  to  include,  inter  alia,  a  prohibition  on  making 
financing available to certain Burmese state-owned enterprises. 

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2 
3 
4 
5 

OJ L , , p. . 
OJ C , , p. . 
OJ L 287, 8.11.1996, p. 1. 
OJ L 125, 28.4.2004, p. 61. 
OJ L 125, 28.4.2004, p. 4. Regulation as last amended by Regulation (EC) No 1517/2004 (OJ L 278, 
27.8.2004, p. 18). 

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(3) 

(4) 

This measure falls within the scope of the Treaty and, therefore, in order to avoid any 
distortion  of  competition,  Community  legislation  is  necessary  to  implement  them  as 
far as the Community is concerned. 

In order to ensure that the measures provided for in this Regulation are effective, this 
Regulation should enter into force on the day of its publication, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 798/2004 is amended as follows: 

(1) The following point is added to Article 1: 

“6. ’financing’ means  

(a) the extension of financial loans and credits, or the acquisition of bonds, and 

(b) the acquisition or extension of a participation in a legal person or entity, including 
the  acquisition  in  full  of  existing  legal  persons  or  entities  and  the  acquisition  of 
shares and securities of a participating nature.” 

(2) The following Article 6 a is inserted : 

“Article 6 a 

No financing shall be made available to Burmese state-owned enterprises as listed in 
Annex IV.” 

(3) Article 12 is replaced by the following: 

The Commission shall be empowered to: 

“Article 12 

(a) 

amend Annex II on the basis of information supplied by Member States, 

(b) 

amend  Annexes  III  and  IV  on  the  basis  of  decisions  taken  in  respect  of 
Annexes I and II to Common Position 2004/…/CFSP.” 

(4) The Annex to this Regulation is added as Annex IV. 

Article 2 

This Regulation shall enter into force on the day of its publication in the Official Journal of 
the European Union. 

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This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the Council 
The President 

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ANNEX 

“ANNEX IV 

[List of Burmese enterprises referred to in Article 6 a …………………….]” 

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