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Viewing cable 06RANGOON678, RESPONSE TO THE DEPARTMENT'S 212(F) ACTION REQUEST

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Reference ID Created Released Classification Origin
06RANGOON678 2006-05-22 10:11 2011-08-25 00:00 UNCLASSIFIED Embassy Rangoon
VZCZCXRO2550
OO RUEHAST
DE RUEHGO #0678 1421011
ZNR UUUUU ZZH
O 221011Z MAY 06
FM AMEMBASSY RANGOON
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4571
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0867
RUEHBY/AMEMBASSY CANBERRA 9642
RUEHNE/AMEMBASSY NEW DELHI 3334
RUEHOT/AMEMBASSY OTTAWA 0419
RUEHUL/AMEMBASSY SEOUL 6737
RUEHKO/AMEMBASSY TOKYO 4352
RUEHWL/AMEMBASSY WELLINGTON 0534
RUEHHK/AMCONSUL HONG KONG 3266
UNCLAS RANGOON 000678 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BM CVIS
SUBJECT: RESPONSE TO THE DEPARTMENT'S 212(F) ACTION REQUEST 
 
REF: SECSTATE 80511 
 
1. Summary:  The Burmese pension system provides a negligible 
ongoing benefit that should not affect the consideration of a 
retired applicant who would have been subject to 212(f) 
review before retirement. Regarding retired applicants and 
212(f) review, we recommend: 1) that retired senior civil 
servants be considered on a case-by-case basis; and 2) that 
retired senior military officers remain subject to review. 
We also recommend review of 212(f) eligibility for active 
managers of state-owned enterprises (SOE) since they 
generally receive insignificant benefits from the regime. 
End Summary. 
 
2.  Pensions are virtually negligible in making 212(f) 
determinations because pension amounts are so small.  Retired 
Burmese civil servants and military officers of any rank 
receive no more than 3,000 kyat per month (approximately 
$2.50 at the current market exchange rate) in official 
pension benefits.  A retired civil servant of middle rank 
receives between 600 to 800 kyat in pensions per month, and a 
retired director or above receives up to 1,500 kyat per 
month.  Military officers receive slightly higher pensions, 
with a retired Colonel or above receiving up to 3,000 kyat 
per month.  Pensioners withdraw pensions annually because the 
amount is so meager and the process for claiming pensions 
long. 
 
3.  The significant benefits that some retirees may receive 
are: lucrative advisory positions in government-linked 
enterprises; leadership roles in government and mass member 
associations; and the ability to easily obtain licenses for 
importing, exporting, manufacturing, or purchasing valuable 
property.  Such benefits would provide evidence of continued 
influence in government and military affairs.  Retired senior 
military officers also benefit from the military apparatus 
long after retirement through access to hospitals, golf 
courses, schools, and housing reserved exclusively for 
military personnel. 
 
4.  Not all retired senior civilian officials played 
significant roles in impeding Burma's transition to 
democracy, but most retired senior military officers did. 
Accordingly, we propose that retired senior civilian 
officials and immediate family members be considered for 
212(f) review on a case-by-case basis.  However, senior 
military officials who retired after 1988, and their 
immediate family members, should be submitted for a 212(f) 
determination.  When submitting the SAO, we will include for 
department review: a description of the applicant's rank and 
influence while in office; retirement benefits from pensions, 
leadership roles, and business interests; and our 
recommendation on whether the applicant should be found 
ineligible under 212(f). 
 
Managers in State Owned Enterprises 
 
5.  We also recommend the Department review the "manager or 
above in a state-owned enterprise" (SOE) criteria for 212(f) 
determination as specified in the reciprocity schedule.  We 
believe this criteria is set too low.  Most manager-level 
employees in SOEs earn modest salaries, and, at best, are 
members of Burma's middle class.  Most managers in SOEs do 
not hold enough influence to exploit their positions for 
significant financial gain, and employees of SOEs have little 
influence on Burma's transition to democracy or government 
policies.  Immediate family members (children) of managers of 
SOEs have jobs and incomes consistent with Rangoon's general 
population.  We propose granting post discretion to determine 
whether a manager of an SOE and immediate family members 
should be submitted for 212(f) consideration by the 
Department. 
VILLAROSA