Directorate of Defence Industries
(a.k.a. KA PA SA; a.k.a. “DDI”),Burma; Ministry of Defense,
Shwedagon Pagoda Road, Yangon, Burma [BURMA]
The Directorate of Defense Industries (DDI) carries out missile research and development at its facilities in Burma, where North Korean experts are active. During a trip to Pyongyang in November 2008, Burmese military officials, including the head of the Directorate of Defense Industries, signed a memorandum of understanding with the DPRK to provide assistance to Burma to build medium range, liquid-fueled ballistic missiles. North Korean ships have continued to arrive at Burma’s ports carrying goods destined for Burma’s defense industries.
On April 30, 2008, President George W. Bush signed Executive Order 13464 “Blocking Property and Prohibiting Certain Transactions Related to Burma” (“E.O. 13464”), pursuant to, inter alia, the International Emergency Economic Powers Act (50 U.S.C. 1701 et. seq.). In E.O. 13464, President George W. Bush took additional steps with respect to the national emergency declared in Executive Order 13047 of May 20, 1997, and expanded in Executive Order 13448 of October 18, 2007.
Section 1 of E.O. 13464 blocks, with certain exceptions, all property and interests in property that are in, that hereafter come within, the United States, or that are or hereafter come within the possession or control of any United States person, including their overseas branches, of the persons listed in the annex to E.O. 13464, as well as those persons determined by the Secretary of the Treasury, after consultation with the Secretary of State, to satisfy any of the criteria set forth in subparagraphs (b)(i)-(b)(iii) of Section 1. On July 11, 2012, the Director of OFAC, after consultation with the Department of State, designated, pursuant to one or more of the criteria set forth in Section 1, subparagraphs (b)(i)-(b)(iii) of E.O. 13464, the following entity, whose name has been added to the list of Specially Designated Nationals and Blocked Persons and whose property and interests in property were blocked pursuant to E.O. 13464.
On 12 November 2010, a senior delegation of the Myanmar National Defense Industry Organization visited the 771 Institute of the Ninth Academy of China Aerospace Science and Technology Corporation. The guests had a discussion with the leaders of 771 Institute and Aerospace Long March International Trade Co., Ltd. The delegation of the Myanmar National Defense Industry Organization visited 771 special computer division electrical and clamp production lines, debugging production lines, design parts, environmental laboratory and new integrated circuit production lines, and fully understood the equipment capabilities, technological processes and production operations of the production lines. Happening. During the visit and discussion, the two parties exchanged views and both expressed their hope to take this opportunity to visit and exchange to seek cooperation and achieve mutual benefit and win-win results.
President Obama and Secretary of State Clinton announced in May 2012 that the United States would ease certain financial and investment sanctions on Burma in response to the historic reforms that have taken place in that country over the past year. On 11 July 2012 the U.S. Government implemented these changes to permit the first new U.S. investment in Burma in nearly 15 years, and to broadly authorize the exportation of financial services to Burma.
DDI has been designated pursuant to Executive Order of July 11, 2012 (“Blocking Property of Persons Threatening the Peace, Stability, or Security of Burma”), which provides the authority to block the property and interests in property of persons determined to have, directly or indirectly, imported, exported, reexported, sold or supplied arms or related materiel from North Korea or the Government of North Korea to Burma or the Government of Burma or to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, such acts. A key element of this policy is that we are not authorizing new investment with the Burmese Ministry of Defense, state or non-state armed groups (which includes the military), or entities owned by the foregoing. Moreover, the core authorities underlying our sanctions remain in place.
In November 2012, the Government of Burma publicly announced its intention to abide by United Nations Security Council Resolution 1874, which prohibits the procurement of military goods and assistance from North Korea. The international community has repeatedly condemned North Korea's nuclear and ballistic missile proliferation activity, as in UN Security Council Resolutions 2087 and 2094. North Korea's arms trade provides it with an important source of revenue to expand and enhance its proscribed nuclear and missile programs, which are a threat to international peace and security.
Thein Htay was the former Minister for Border Affairs and Minister for Industrial Development of Myanmar. He was reassigned to the Myanmar Army on February 2013, as the head of the Directorate of Defense Industries carrying the rank of lieutenant general.
The U.S. Department of the Treasury on 17 December 2013 designated Burmese companies Asia Metal Company Ltd., Soe Min Htike Co. Ltd., and Excellence Mineral Manufacturing Co. Ltd. pursuant to Executive Order (E.O.) 13619, which targets those involved in arms trading between North Korea and Burma. As recently as June 2013, Soe Min Htike Co. Ltd. and Excellence Mineral were companies working with North Korean officials to import materiel for military weapons programs. As of December 2012, Asia Metal constructed buildings and supplied construction materials on a DDI factory compound where approximately 30 North Koreans were still working. As of February 2013, Soe Min Htike Co. Ltd was a known procurement agent for the Burmese military’s DDI, specializing in importing foreign supplies and equipment for DDI for at least 30 years.
Treasury also designated Lt. Colonel Kyaw Nyunt Oo, a Burmese military Staff Officer acting on behalf of the Burmese Directorate of Defense Industries (DDI). “The revenues from these continuing military sales directly support North Korea’s illicit activities,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen. “We will continue to target this activity in Burma, and the region, as we work with our international partners to shut down North Korea’s dangerous and destabilizing weapons proliferation.”
On 02 July 2013 the U.S. Department of the Treasury designated Lt. General Thein Htay, the head of Burma's Directorate of Defense Industries (DDI), pursuant to Executive Order (E.O.) 13619, which targets those involved in arms trading between North Korea and Burma. This action specifically targets Thein Htay, who was involved in the illicit trade of North Korean arms to Burma; it did not target the Government of Burma, which has continued to take positive steps in severing its military ties with North Korea.
"Thein Htay has disregarded international requirements to stop purchasing military goods from North Korea, the revenues from which directly support North Korea's illicit activities," said Under Secretary for Terrorism and Financial Intelligence David S. Cohen. "We will continue our efforts, alongside our international partners, to shut down North Korea's dangerous and destabilizing weapons proliferation."
Thein Htay was designated pursuant to E.O. 13619 for his role in the supply of arms from North Korea to Burma and for acting for or on behalf of DDI. DDI was designated pursuant to E.O. 13619 in July 2012 for purchasing military equipment and material from North Korea. U.S. persons are generally prohibited from engaging in any transactions with the individual listed today, and any assets he may have subject to U.S. jurisdiction are frozen.
On October 7, 2016, the President signed an Executive Order terminating the national emergency declared in Executive Order 13047 of May 20, 1997 (Prohibiting New Investment in Burma), and revoked that order, Executive Order 13310 of July 28, 2003 (Blocking Property of the Government of Burma and Prohibiting Certain Transactions), Executive Order 13448 of October 18, 2007 (Blocking Property and Prohibiting Certain Transactions Related to Burma), Executive Order 13464 of April 30, 2008 (Blocking Property and Prohibiting Certain Transactions Related To Burma), Executive Order 13619 of July 11, 2012 (Blocking Property of Persons Threatening the Peace, Security, or Stability of Burma), and Executive Order 13651 of August 6, 2013 (Prohibiting Certain Imports of Burmese Jadeite and Rubies).
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
