[Code of Federal Regulations]

[Title 31, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR537.407]



[Page 176-177]

 

                  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. 537.407  Activities under pre-May 21, 1997 agreements.



    (a) Activities undertaken by a U.S. person pursuant to an agreement 

entered into prior to May 21, 1997, between the U.S. person and the 

Government of Burma or a nongovernmental entity in Burma are not 

prohibited new investments, as defined in Sec. 537.308.

    (b) A U.S. person who is a party to a pre-effective date agreement 

for the development of economic resources located in Burma may enter 

into subsequent agreements with foreign persons where such agreements 

are pursuant to, or in exercise of rights under, the pre-effective date 

agreement. The facilitation of foreign persons' investment in Burma 

under these circumstances is authorized pursuant to the general license 

contained in Sec. 537.504.

    (c) A U.S. person may not enter into a contract for the economic 

development of resources located in Burma after May 21, 1997, if 

pursuant to, or in



[[Page 177]]



exercise of rights under, a pre-effective date agreement, unless the 

contractual arrangement is specifically contemplated in the pre-

effective date agreement.

    (d) The exercise of rights under pre-effective date agreements may 

include the exercise of options to extend the contract, depending on 

such factors as the degree of specificity with which the option to 

extend is described in the pre-effective date agreement, and the degree 

to which the party wishing to renew can enforce its decision to exercise 

the option.