US set to OK investment in Myanmar

Her comments reflected the growing disagreement between human rights groups and business advocates over how the US should proceed in easing restrictions.

While Suu Kyi has cautiously supported suspending sanctions as a reward for Myanmar’s shift from five decades of authoritarian rule,she and other democracy advocates are wary about investment in MOGE,which had been an economic lifeline for the former ruling junta.

But doing business with MOGE is the only way to gain access to Myanmar’s potentially lucrative energy resources and US companies fear they will lose out to foreign competitors if the restrictions aren’t lifted.

Recognising continuing concerns over corruption and rights abuses in Myanmar,the administration is expected to require US companies to report on their investments in the country,which is also known as Burma.

Secretary of State Hillary Rodham Clinton said in May that US companies would be allowed to invest in all sectors of Myanmar’s economy,though not firms owned or operated by the military. She also announced the suspension of a ban on the export of US financial services,seen as vital for starting to do business there.

The administration is expected to take the next step this week,when it announces the issuance of a general license that finally opens the door for American firms to operate in one of Asia’s last untapped markets.

Clinton is currently traveling through Southeast Asia,a trip centered on a meeting in Cambodia of the region’s foreign ministers but also underscoring US efforts to deepen trade and investment ties with a region of rising prosperity and importance as an export market.

An announcement on easing sanctions would also coincide with the arrival in Myanmar of Derek Mitchell,the first US ambassador to the country in 22 years,as Washington normalises its diplomatic relations with a former pariah state.

In a further sign of US efforts to forge closer ties,Robert Hormats,under secretary of state for economic growth,energy and the environment,and Francisco Sanchez,under secretary of commerce for international trade,will travel to Myanmar his weekend to promote economic and business engagement.