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 Other Presidential Documents the substance of these talks in strictest confidence, but the past 18 months has seen the release of approximately 250 political prisoners, and a halt to the vicious attacks on Aung San Suu Kyi and the NLD by the government- owned press. Unfortunately, the process has moved very slowly. Of par- ticular concern is the continuing house arrest of Aung San Suu Kyi. The quality of life in Burma during the past 6 months has deteriorated. Poverty is widespread, and the economy increasingly shows the effects of a growing government deficit, rising inflation, shortfalls in energy supplies and growing foreign exchange shortages. Severe human rights abuses are commonplace, particularly in ethnic minority areas, where there are con- tinuing reports of extrajudicial killings, rape, and disappearances. Due to continuing severe restrictions on religious freedom, Burma was again des- ignated a "country of particular concern" in 2001 under the International Religious Freedom Act. Prison conditions are harsh, despite access to the prisons by the International Committee of the Red Cross. One retired uni- versity rector was also detained and sentenced to 7 years in prison fol- lowing his one-man protest calling for new general elections. Forced labor remains an issue of serious concern. In September 2001, an ILO High Level Team visited Burma to assess the situation and concluded that the SPDC had made an "obvious, but uneven" effort to curb the prac- tice; nevertheless, forced labor persisted, particularly in border areas. In March 2002, the government reached agreement with the ILO on appoint- ment of an ILO liaison officer in Burma, pending establishment of a perma- nent ILO office. Burma is also one of the world's largest producers of illicit opium, heroin, and methamphetamines. However, its overall output of opium has declined by two-thirds over the past 5 years, in part as a result of bad weather and in part as a result of eradication efforts. It has also stepped up law enforce- ment operations against some former insurgent groups (particularly the Kokang Chinese) and considerably improved its counter-narcotics coopera- tion with China, Thailand, and other neighboring states. United States policy goals in Burma include progress towards democracy, improved human rights, a more effective counternarcotics effort, counterterrorist cooperation, resolving MIA cases from WW II, and address- ing the HIV/AIDS epidemic which threatens regional stability and pros- perity. We hope that the on-going talks between Aung San Suu Kyi and the military will lead to meaningful democratic change and national reconcili- ation. We consult regularly, at senior levels, with countries interested in Burma that share our goals. In coordination with the European Union and other states, the United States maintains sanctions on Burma aimed at encouraging transition to democratic rule and greater respect for human rights. These include an arms embargo, an investment ban, and other measures. Measuring Progress toward Democratization From September 2001 through March 2002, Burma's military regime con- tinued talks with the NLD's General Secretary, Aung San Suu Kyi. Since the talks began 18 months ago, we have seen the release of approximately 333

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