PepsiCo's Investment in Burma

PepsiCo is one of the few large foreign companies doing business with SLORC (State Law and Order Restoration Council), the brutal and illegal military junta in Burma which put the Nobel Peace Prize Laureate Aung San Suu Kyl under house arrest since 1990. Without this kind of foreign economic support, SLORC would be bankrupt and unable to continue paying for the weapons used to repress the Burmese people.

On Nov 22, 1991, PepsiCo entered into a joint venture with 35% owned of the company by PepsiCo International and 60% owned by Pepsi-Cola Products Myanmar. Chairman U Them Tun, 56, who is also chairman of two trading companies, Myanmar Golden Star Co. and JV3. Myanmar Economic Holding Co (SLORC's investment arm) has a 45% share in JV3. The US million PepsiCo bottling plant on the outskirts of Rangoon is now producing 100,000 bottles a day with plans to increase to 400,000 bottles a day in 1993.

Pepsi says that "trade will promote understanding." Instead Pepsi's veryeryery presence legitimizes the existence of the SLORC. Burmese students and human rights groups have called for a boycott of PepsiCo for doing business with a SLORC operative.

Investment benefits only the SLORC's military.

In Burma, where more than 50% of the national budget goes to the military, it is impossible to divide economics from politics. Today40% of the people live in poverty, facing scarcity of basic food and rising prices for basic commodities with inflation rate at 35%. The foreign debt is up to US.2 billion.

The foreign exchange gained from investment maintains and even expands SLORC's military capabilities and retains the loyalty of the military-bureaucratic elite.

Given that the main beneficiaries of investment are always going to be the armed forces, the argument that sanctions would hurt the people first and the government only marginally does not apply. On the other hand, even a small amount of foreign exchange, whether overseas aid or foreign investment, without seriously helping the economy, could go a long way in helping the present political structure remain in place and in fuelling the war.

While a few men in high military positions are becoming more and more wealthy from the new ~~market economy" of the country, life for the vast majority of the people continues to slide downward at an ever increasing speed.

Presently the armed forces of Burma number 300,000, and SLORC has set a goal to increase the number to 500,000 in the next few years. With no external enemies, the military can only be planning to use this army and its modern weapons against its own people.

Boycott PepsiCo Campaign

Today in Burma, people are still under repression; thousands of political prisoners are subjected to physical and psychological torture. To show support to the demands of the Burmese people for a democratic society with fundamental freedom and human rights, we, therefore, earnestly invite you, your organisation and friends to join our Boycott PepsiCo Campaign.*

The Aims of the Boycott

§ Arouse people's consciousness about the adverse impact of foreign investment, especially ~he investment of PepsiCo in Burma.

§ Put pressure on PepsiCo to end their investment in Burma for the cause of peace and human rights.

Actions Requested

1. Pu Publicise the Boycott PepsiCo Campaign among your friends, network and local press (it can be distributed as leaflets to people in the streets);

2. Organise the Boycott PepsiCo Campaign in your country to boycott PepsiCo's products (Pepsi Cola, 7-UP, etc.) and PepsiCo-owned businesses (Pizza Hut, Kentucky Fried Chicken, Taco Bell and Frito Lay); Tell consumers that the business link between PepsiCo and the SLORC forges the chains locking up the human rights and freedom of political prisoners, the ethnic minorities, students and people in Burma;;

3. Write the company and tell them why you're boycotting their products. Mr. Chris Sinclair, President, Pepsi Cola International, Routes 100 & 35, Somers NY 10589-2202, U.S.A..

4. We have designed a postcard with the above picture and a letter at the back demanding the withdraw of PepsiCo's investment in Burma People can sign the letter and send the postcard to PepsiCo. Please contact us (AH RC) to get the copies of the postcard.

* A campaign on boycott PepsiCo has already been launched by three Canadian organisations at the end of 1992. They are OPIRG- Carleton, CYNAPS and Friends of the Rain forest.