[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR537.409]

[Page 680-681]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 537--BURMESE SANCTIONS REGULATIONS--Table of Contents
 
                       Subpart D--Interpretations
 
Sec. 537.409  Approval or other facilitation of a foreign person's investment.

    (a) The prohibition contained in Sec. 537.202 against approval or 
other facilitation of a foreign person's investment in Burma bars any 
action by a U.S. person that assists or supports a foreign person's 
activity that would constitute prohibited new investment under 
Sec. 537.201 if engaged in by a U.S. person. This facilitation 
prohibition is subject to the exemption for trade in goods, services and 
technology set forth in Sec. 537.204.
    (b) Examples: (1) A U.S. corporation is prohibited from brokering, 
financing, guaranteeing, or approving the entry by any foreign person, 
including a foreign affiliate, into a contract for the development of, 
e.g., a natural gas field, a tourist hotel complex, or a rubber 
plantation in Burma, unless pursuant to the affiliate's exercise of 
rights under an agreement entered into prior to the effective date. An 
independent U.S. contractor, however, may perform brokerage, financing, 
or guarantee services if under a service contract meeting the conditions 
of Sec. 537.204.
    (2) The sale to a foreign person of a U.S. person's equity or income 
interest in a development project in Burma constitutes facilitation of 
that foreign person's investment in Burma, unless pursuant to a pre-
effective date agreement. Such a sale, however, is authorized by general 
license under Sec. 537.504.
    (3) A U.S. national or permanent resident alien employed in Burma or 
in a third country by a foreign person may participate in any decision-
making role in an activity by the foreign person that includes economic 
development of resources located in Burma as exempt employment services 
pursuant to Sec. 537.204, unless such services are undertaken pursuant 
to a post-effective date agreement between the foreign person and the 
Government of Burma

[[Page 681]]

or a nongovernmental entity in Burma and:
    (i) involve the general supervision and guarantee of the foreign 
person's performance of a contract for the economic development of 
resources located in Burma, or
    (ii) where the individual U.S. person's compensation is provided 
for, in whole or in part, from shares of ownership in the development 
project or participation in royalties, earnings, or profits in the 
development project.