Myanmar could win sanctions reprieve, diplomat says

GENEVA (Reuters) -- Myanmar could avoid new sanctions over the use of forced labour next week by persuading the International Labour Organization it has made sufficient movement towards a ban on the abuse, a diplomatic source said on Wednesday.

The south-east Asian state is already a virtual pariah after bloodily crushing a 1988 uprising, refusing to recognise the victory of pro-democracy leader Aung San Suu Kyi in a 1990 election and flooding neighbouring states with illegal drugs.

An ILO report on its labour policy, to be presented to policy-makers on Monday, says the military government's effort to make laws conform to an international treaty banning forced labour "leaves a deficiency" with regard to ILO demands.

But a source familiar with ILO policy said the concessions could still persuade the 174-nation body to tone down a call for governments and international organisations to strengthen sanctions -- a move it threatened to carry out at its annual meeting in June unless the junta changed tack by November 30.

The ILO's Governing Body, meeting in Geneva from November 2 to 17, will consider Myanmar's response from next Monday.

"It is more probable that they will strike some sort of compromise and put some of this on hold," the source said.

The governing body will debate a report compiled by five ILO experts after meetings last month with Yangon's military rulers, including Lt.-Gen Khin Nyunt, the powerful Secretary One of the State Peace and Development Council and intelligence chief.

The report, which includes letters from the ministers of labour, home affairs and foreign affairs, shows Myanmar has not directly met demands to pass legislation banning forced labour, which a 1998 ILO inquiry ruled was "widespread and systematic."

But a letter from Myanmar's Department of Labour, dated October 31 -- five days after the fact-finders left -- gave details of steps towards a forced labour ban, which a diplomatic source said could avert the full weight of ILO sanctions.

The prospect of sanctions from ILO member governments and other U.N. organisations looked to have twisted Yangon's arm -- though probably not enough to win ILO approval, the source said.

The dispute centres on Myanmar's Towns Act and Village Act, which the government says reflect traditional cooperative involvement in local building projects, but which the ILO says amount to legal authorisation of effective slave labour.

Trade unions have estimated that more than 800,000 Burmese are conscripted with little or no pay as army porters or construction and agriculture in slave-like conditions.

Yangon has long withstood Western pressure to transform its dictatorial regime into a more open and tolerant society despite sanctions imposed by many of the world's large economies.

These curbs have had little effect on the impoverished country because its economy has long been shut off from the world and has never really had full international exposure.

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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