Burma: Gem Trade Bolsters Military Regime, Fuels Atrocities

Importing Countries Should Ban Burmese Rubies and Jade

(New York, November 12, 2007) – China, Thailand, the United States,
and other countries should completely block the purchase of gems from
Burma that help finance military abuses there, Human Rights Watch said
today. The group issued its call for targeted sanctions on Burma’s gem
business ahead of the opening of a major gem auction in Rangoon this
week.

“Burma’s rubies and jade are prized for their beauty but the ugly truth is
that the trade in these stones supports human rights abuses,” said Arvind
Ganesan, director of the Business and Human Rights Program at Human
Rights Watch. “The sale of these gems gives Burma’s military rulers quick
cash to stay in power.”

Burma’s military junta has organized the auction, which is scheduled to
run from November 14 to 26 at the Myanmar Convention Center. Large
numbers of precious and semi-precious stones will be on offer to the
highest bidder.

Burma produces a variety of gems but is most famous for its rubies and
jade. More than 90 percent of the world’s rubies originate in Burma,
according to industry estimates. Burmese rubies are renowned for their
dark “pigeon’s blood” color. Burma also dominates as the top producer of
jadeite, a type of jade that is valued highly for its deep green hue.

The state-run Myanmar Gems Enterprise said it generated sales of nearly
US$300 million in fiscal year 2006-2007. This figure represented an
increase of nearly 45 percent over the previous year’s gem earnings. It
qualified the company as the country’s third-highest exporter by value,
after the state-run petroleum and timber companies, Myanmar Oil and Gas
Enterprise, and the Myanmar Timber Enterprise.

Burmese officials have openly stated in the past that they increasingly rely
on gem auctions to bring in hard currency. Regular auctions used to be
held annually, but since 1992 they have taken place twice yearly.
Beginning in 2004, additional “special” auctions were called to help fill
the government’s coffers.

The junta controls most mining activity in the country. It has a direct
ownership interest in many mines, in some cases through joint ventures
with private entrepreneurs. Senior military officers reputedly arrange
“private” sales of the finest gems and keep the proceeds.

Official gem sales at auction and private sales of the most valuable gems
account for the major portion of Burma’s gem trade. In addition, some
cross-border smuggling of gems takes place.

Burma’s gem mines are ruled with an iron hand by military authorities and
mining companies. Conditions are reported to be deplorable. Access to the
mining tracks is strictly limited, especially to foreigners, but reports from
nongovernmental groups suggest that land confiscation, extortion, forced
labor, child labor, environmental pollution, and unsafe working conditions
for miners are rampant. The absence of health care and HIV prevention
information and services has accelerated the spread of HIV/AIDS and
drug resistant malaria and tuberculosis in mining areas.

“It is simply unconscionable for traders to help Burma’s generals sell off
the country’s natural resources for their own benefit while average people
are victimized and harassed,” said Ganesan. “Trading in Burmese gems
bolsters the country’s military rulers at a time when they are committing
serious human rights abuses, driving their people into further poverty, and
rejecting calls for political reconciliation.”