	Cyclone Relief Controversy

Estimates of the death toll of Cyclone Nargis on May 2-3, 2008, were 135,000 as of early June 2008. The SPDC imposed special restrictions against the United States, France, and other Western countries that had long imposed sanctions on the SPDC over human rights issues. It announced on May 15 that the voters had approved the constitution by 92.5%. Khin Nyunt had been the arm of the SPDC in dealing with foreign governments, including the United States and Burma's partners in the Association of Southeast Asian Nations (ASEAN). The second factor is the ability of Burma to expand exports of a variety of commodities to countries of Asia and beyond. Burma earned an estimated $1 billion in exports of natural gas in 2004 and 2005, and earnings could grow substantially in the future from new natural gas explorations and production. China and India have signed deals with the SPDC, which would make them primary customers for this gas and future discoveries of gas. Burma reportedly earns between $1 billion and $2 billion annually from exports of the illegal drugs, heroin and methamphetamines. Most of these earnings, predominately foreign exchange, go to drug traffickers who produce and ship the drugs across Burma's borders. However, Burmese military officials at various levels have a number of means to gain a substantial share of these earnings. The fourth and probably biggest factor is Chinese economic and military aid to Burma. China fulfilled that apparent pledge when it vetoed the U.S. resolution in the U.N. Security Council in January 2007 and blocked the U.S.-EU initiative in the Security Council in September 2007. China's growing role also is cited by Indian officials as a prime justification for India's "constructive engagement" policy toward Burma. In April 2006, they reestablished diplomatic relations. U.S. Policy

Since 1988, the United States has imposed a wide range of sanctions against Burma. The main sanctions currently are: a suspension of aid, including anti-narcotics aid; opposition to new loans to Burma by the international financial institutions; an executive order by President Clinton on May 20, 1997, prohibiting U.S. private companies from making new investments in Burma; and congressional passage of the Burmese Freedom and Democracy Act ( P.L. 108 - 61 ) banning imports from Burma into the United States, affecting mainly imports of Burmese textiles, and banning travel to the United States by Burmese connected to the SPDC and U.S. financial transactions with individuals and entities connected to the Burmese government. In the aftermath of the September 2007 uprising, the Bush Administration does not appear interested further meetings. In the past, the Administration has indicated that it would use sanctions to initiate a kind of "road map" process with the SPDC in which the Administration would respond to a positive measure by the SPDC by selectively lifting an individual sanction with the prospect of additional lifting of sanctions in response to additional positive measures by the SPDC.
On May 2-3, 2008, Cyclone Nargis hit the Irrawaddy delta and the Rangoon area of Burma. Estimates of the number of people who died was 135,000 as of early June 2008. Hundreds of thousands of people lost their homes and sources of livelihood. Foreign governments and relief organizations sought to bring in massive aid, but the Burmese government (SPDC) restricted the volume of goods that came in and access of disaster experts and relief workers to the affected areas. In the meantime, the SPDC proceeded to hold a referendum on a new constitution in areas not affected by the cyclone. It announced on May 15 that voters approved the constitution by 92.4%.
Many observers assessed the referendum process as not being free and open. This appeared in line with the SPDC's reported poor human rights record since 1990, including the suppression of anti-regime protests in September 2007.
The SPDC appears unaffected by sanctions imposed by the United States and other Western nations. Western sanctions are uneven with U.S. sanctions being the heaviest. Burma has been able to expand exports of a variety of commodities, including growing earnings from natural gas production. China and India have signed deals with the SPDC for substantial purchases of natural gas. Burma also reportedly earns between $1 billion and $2 billion annually from exports of illegal drugs, heroin and methamphetamines. Most of these earnings go to drug traffickers connected to the Wa and Shan ethnic groups, but Burmese military officials have means to gain a substantial share of these earnings. Burma's fellow members in the Association of Southeast Asian Nations (ASEAN) have grown more critical of the SPDC, but they continue to oppose sanctions. Chinese diplomatic support of the SPDC and military and economic aid is very important: $2 billion in military aid since the early 1990s, $200 million annually in economic aid, substantial foreign investment including new investment in natural gas, and a huge influx of Chinese migrants into Burma, mainly traders. China's role is a prime justification for India's "constructive engagement" policy toward Burma, although India suspended arms sales after the September 2007 uprising. Burma has reestablished diplomatic relations with North Korea amidst reports of growing military cooperation between them.
Since 1988, the United States has imposed sanctions against Burma, including congressional passage in 2003 of the Burma Freedom and Democracy Act (P.L. 108-61) banning imports from Burma (renewed by Congress in 2006). The Bush Administration proposed that the U.N. Security Council consider the Burma situation and introduced a resolution in the Council in December 2006. China and Russia vetoed the resolution in January 2007 and blocked a U.S. attempt to secure Security Council consideration of sanctions in September 2007. Since then, the Administration issued several executive orders prohibiting U.S. financial dealings and imposing a travel ban on named Burmese individuals and companies connected to the SPDC.