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BURMA: ERICSSON’s Investment Policies in Burma 

by Bo Hallengren

Ericsson, a transnational company with its head quarters in Sweden is, according to some accounts, the biggest private telecommunications company in the world. Ericsson is also doing business in Burma.

This is a translated copy of a letter sent to Ericsson on October 1, 1996: 
To Public Affairs Officer 
Per-Olov Åkerberg, 
Ericsson Ltd., 
Stockholm, Sweden.

Hello! 

My name is Bo Hallengren and I work for Asian Legal Resource Center/Asian Human Rights Commission in Hong Kong via Church of Sweden Mission. I am also active within Amnesty International’s Hong Kong section. 

I would like to ask Ericsson Ltd. the following questions regarding your engagement in Burma (Myanmar). I am grateful if you answer the questions and make comments on my writing. 

When I called Ericsson Ltd., in Sweden during the summer of 1996 I was first informed that Ericsson Australia are responsible for the operations in Burma. When I asked if Ericsson Australia also made the decision about the engagement and whether it carries the responsibility for the overall policymaking on investments in Burma the answer was no. I understood this to mean that questions regarding Ericsson’s activities in Burma ought to be put directly to the Stockholm head office. 

I have heard several times heard from Ericsson spokesmen that “at times what might be o.k. with trade embargoes under specific conditions. But telecommunication is something that in the long run always strengthens democratic development.” I do not regard these ideas valid for the present situation in Burma for the following reasons: 

Common people do not have access to telecommunication and if they manage to get such access it would still be limited by the authorities. The case with the diplomat (James Nichols), who represented Scandinavian countries and was put in prison for possessing a fax machine, and who died in prison is a clear example. With modern AXE telephone exchange devices (made by Ericsson) it is also very easy to find out who has called a certain person. The military is utilizing modern telecommunication in order to move troops rapidly. In Burma, this is certainly not beneficial for ordinary people. 

Even if Ericsson’s arguments that telecommunication normally benefits democratic development are correct it still doesn’t seem to be the case for Burma since the state led oppression is so active and so incredibly controlling. I got the impression that Ericsson’s opinion is that a private company neither can nor should “interfere in political events.” But through investment in Burma indirect support is provided to an exceptionally ruthless regime. Investments in Burma have unfortunately been taken by the government (SLORC) as a sign of support from other countries. Have you at Ericsson contemplated over how your actions in Burma have become a support for the regime? Has the head office also thought about the negative influence investments in Burma could have for the reputation of Ericsson? We would be grateful if you would give some comment on these issues. 

In the case of South Africa it now seems that almost all international companies are prepared to admit that the trade embargo had a positive effect. How does Ericsson look upon this today? Are there any differences compared with the present situation in Burma justifying another policy than against (the previous apartheid regime of) South Africa? 

During what circumstances would it be possible for Ericsson to initiate its own decisions to avoid investments that are potentially profitable? How does Ericsson judge factors such as a stable economic system and profitability vis-a-vis people’s (democratic) influence and moral considerations? 

I would be grateful if this letter is answered by the person handling overall investment issues in Burma. I was recommended by Ericsson in Sweden to contact you, Per-Olov Åkerberg. 

Sincerely 
Bo Hallengren 

cc.: Ericsson, Hong Kong, Church of Sweden Mission, Uppsala, Sweden, Swedish Consulate General, Hong Kong

The Reply

Following is the short reply from Per-Olov Åkerberg:

The questions brought up by you are responded to as follows: 

Ericsson’s position with regard to where we do business is governed by adherence to national legislation and in addition to sanctions imposed by the international community through the United Nations. All our business sectors/subsidiaries are duly instructed to take necessary measures to follow any restrictions imposed. 

Myanmar is not the subject of any such sanctions or prohibitions. 

Ericsson promotes an open, liberal and multilateral trading-environment where our objective is to secure access to markets under the same conditions as our competitors. 

Yours sincerely 
Ericsson Ltd, Corporate Relations

cc. Ericsson, Hong Kong, Church of Sweden Mission, and Swedish Consulate General in Hong Kong 

Posted on 2001-08-13
     
 
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