Tobacco giant 'staying in Burma'

Many foreign firms have quit Burma after pressure

British American Tobacco (BAT) is resisting growing pressure from the UK government to stop doing business in Burma.

"At the moment we have no intention of pulling out. That's our position," said a BAT spokesman cited by AFX News.

The spokesman said BAT chairman Martin Broughton was to meet UK Foreign Office minister Mike O'Brien to discuss the company's investment in the South East Asian country.

BAT runs a cigarette factory in Burma which employs about 500 people.

International pressure to isolate Burma's military regime has been growing since the arrest on 30 May of pro-democracy leader and Nobel Peace prize winner Aung San Suu Kyi.

'No contact'

She is believed to be being held in a two-room hut in the notorious Insein prison outside Rangoon.

Mr O'Brien told journalists on Wednesday that he had again been refused permission to telephone her.

Britain is pressing for the European Union (EU) to toughen sanctions against Burma later this month if Aung San Suu Kyi is not released.

The United States is considering freezing the assets of members of Burma's military junta and preventing money entering the US from Burma.

Japan has frozen aid to Burma. It was the country's biggest donor, giving aid worth about $17m in 2002.

'Not illegal'

Many foreign firms have quit Burma after pressure from human rights and democracy campaigners.

Soft drinks firm Pepsi, travel agent Kuoni, underwear maker Triumph are some of the firms that have pulled out, while UK oil explorer Premier is in the midst of doing so.

BAT and two giant oil firms, TotalFinaElf of France and US group Unocal , are among the shrinking number of multinationals who remain.

BAT says it will pull out of Burma if EU sanctions make it illegal to operate there, but it is reportedly disturbed that the pressure from the UK Government sets a potentially damaging precedent which could worry its shareholders.

"We're not a government or an international statesman. We'll do business in countries if it's legal to do so," the BAT spokesman said.

He said the firm had proposed a formal meeting with the Foreign Office before Aung San Suu Kyi was arrested.