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[ Friday, Feb. 24, 1995 ]

Student group disapproves of Pepsico's Burma policy

Collegian Staff Writer

Angered by continuing human rights abuses halfway around the world, a group of students plan to ask the University's administrators and Board of Trustees to chide Pepsico Inc. for its investments in authoritarian-ruled Burma.

Finding Common Ground, a network of Penn State student activists, plans to approach University president Joab Thomas next week to ask him to pressure Pepsi to divest its holdings in Burma by signing a formal statement on behalf of Penn State. The Univerdly signed a 10-year, $14 million contract with Pepsi in 1992.

Thomas was unavailable for comment.

The students' efforts could help curb a 30-year history of danger and abuse in the Southeast Asian nation, said Burton Levin, former U.S. ambassador to Burma, which is officially called Myanmar.

"What it does for the students of Penn State and other major organizations in the U.S. is, by signaling their unhappiness with corporate involvement in Burma, it adds pressure on the regime to at least appear to be behaving in a way more acceptable to the international community," Levin said.

The U.S. government believes Burmese military leaders have built up their army for years, using that power to force labor on some citizens and kill others who are outspoken.

But even if the University makes a formal statement requesting Pepsi to pull out of Burma, the results could be minimal.

"Don't expect dramatic results -- this is a military government; they are ruling in an authoritarian fashion," explained Levin, who was ambassador from 1987 to 1990. "They have no understanding of politics and little understanding of economics. "Their mentality is reminiscent of the mindless macho-ism of a high school football team, which is fine when you're kids. But these are statesmen running a country. They basically rule by the power of the gun."

Rolla Chuang, a member of Finding Common Ground, is hopeful that Penn State will encourage Pepsi to stop doing business in Burma.

"Personally, I think what the University can and might actually do is issue a statement to Pepsi," said Chuang (graduate-civil engineering). "I don't really think it's asking too much. But even if the University doesn't issue a statement, the fact that the issue is being raised or being discussed is an accomplishment already."

Finding Common Ground members hope to amass support from several student organizations, such as the Undergraduate Student Government, to increase the pressure on University officials.

Jell Morton, also a member of Finding Common Ground, expects students will need to use heavy persuasion to convince the University to take a stand against Pepsi.

"I don't think it will be an easy thing for them to do because the University doesn't like change," said Morton (senior-sociology).

Concerns expressed by the University would be taken seriously, said Anne Ward, spokeswoman for Pepsi-Cola Co.

"The University is our customer," she said. "Our number-one job is to make our customers happy. Any consumer that contacts us with a concern -- we take all those concerns seriously."

Officially, the United States has a neutral policy toward businesses that want to invest in Burma. U.S. companies invest about $200 million there.

But U.S. policy ultimately discourages companies from investing in Burma, said a State Department source, because those firms cannot receive the same financial assistance they would if they did business in other foreign countries.

"The reality is . . . that Burma is disadvantaged to all other countries that compete for investment," the source said.

When U.S. companies want to start up business operations in Burma, the State Department informs them of its analysis of human rights conditions.

The source said the Burmese Army sometimes picks up citizens and forces them to carry weapons into areas of conflict. Others are forced to work on civil engineering projects, such as building roads, railroads or moats.

"These people are not infrequently hurt and frequently are not paid," the source said. "The Burmese argue that this is an old custom, but what we find is that many people flee."

The source said there is no convincing connection between the human rights abuses and any U.S. firms in Burma, but Finding Common Ground members dispute that conclusion.

Parris Chang, professor of political science at Penn State, understands the concerns of Finding Common Ground, but said students tend to look at complicated situations in black-and-white terms. The effects of economic sanctions against Burma could do more harm than good.

"When we put Burma in a siege, the people develop a siege mentality, and they're not willing to open up; they feel insecure," Chang said. "I feel the Burmese society will benefit in the long run from this kind of investment with the outside world."

Businesses have the leverage to effect political changes, Chang explained.

"It depends on the businessmen to be concerned and take an interest in human rights," he said.

But Ward said that responsibility is not one that Pepsi has undertaken.

"We're there to do business not for political reasons," she said. "Burma is one of the developing markets where we think it's important to make a presence."

Levin, who is now director of the Asia Society Hong Kong Center, said taking sides in the Burma controversy is a tough call.

"On the one hand, if more and more companies join in the boycott of Burma, it does constitute a form of pressure on the government which over a period of time could have an impact," Levin said. "But what blunts that is that Burma's neighbors have been very eager to get involved economically."

The economic impact of U.S. companies' actions most likey would be minimal, Levin said. But he added that Burmese leaders are beginning to realize their diastrous economic condition.

Despite those beliefs, Levin said he still respects Finding Common Ground students for their efforts to involve the University in their fight against human rights abuses.

"I think it's understandable that the students are demonstrating their concern for Burma," he said. "I think it's admirable. That's what universities are for, to get your guys to express some idealism -- not just go to a football game. But the question becomes, 'How effective is it?' "



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