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EO 13047Executive OrderClinton · D

Executive Order 13047

Prohibiting New Investment in Burma

This executive order, issued under the International Emergency Economic Powers Act and section 570 of the 1997 Foreign Operations Appropriations Act, declares a national emergency and prohibits U.S. persons from making new investments in Burma (Myanmar) in response to large-scale repression of the democratic opposition by Burma's government. The order took effect immediately on May 21, 1997, and delegates implementation authority to the Treasury and State Departments.

Federal Register Open PDF 62 FR 28301

Impact dates

  1. Order takes effect prohibiting new investment in Burma

Key directives

  • Prohibit new investment in Burma by United States persons (Sec. 1)
  • Prohibit approval or facilitation by U.S. persons of foreign-person transactions that would constitute prohibited new investment (Sec. 2(a))
  • Prohibit evasion or avoidance of order prohibitions (Sec. 2(b))
  • Exempt not-for-profit educational, health, or humanitarian programs from definition of 'economic development' (Sec. 4(f))
  • Delegate functions under section 570(c) and (d) to Secretary of State (Sec. 5)
  • Authorize Treasury Secretary to promulgate rules and regulations to carry out order (Sec. 6)

Who is ordered

Timeline

Immediate

  • Prohibition on new investment in Burma takes effect at 12:01 a.m. EDT May 21, 1997
  • National emergency declared

Near term (90d)

  • Treasury Secretary to promulgate rules and regulations implementing the prohibition
  • State Department to exercise delegated functions under section 570(c) and (d)

Long term

  • Ongoing sanctions regime against Burma pending policy changes or congressional action
  • Potential evolution of U.S.-Burma economic relations contingent on political conditions

Risks & tensions

  • Extraterritorial reach: Sec. 2(a) extends prohibitions to U.S. persons facilitating foreign transactions, creating compliance complexity for multinational operations
  • Definition breadth: 'Resources' includes human resources, creating uncertainty about scope of covered activities; 'economic development' definition leaves some interpretive latitude
  • Humanitarian carve-out vs. investment boundary: Not-for-profit exemption may create gray areas for social enterprises or hybrid models
  • IEEPA authority invoked alongside specific congressional statute, suggesting dual legal basis that could complicate judicial review or future modification
  • No sunset or review mechanism specified in order text—duration tied to national emergency declaration or congressional action
Executive Order 13047: Prohibiting New Investment in Burma · Executive Orders